Public Act 100-0840
 
SB3131 EnrolledLRB100 19958 SMS 35239 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The High Speed Internet Services and Information
Technology Act is amended by changing Section 20 as follows:
 
    (20 ILCS 661/20)
    Sec. 20. Duties of the enlisted nonprofit organization.
    (a) The high speed Internet deployment strategy and demand
creation initiative to be performed by the nonprofit
organization shall include, but not be limited to, the
following actions:
        (1) Create a geographic statewide inventory of high
    speed Internet service and other relevant broadband and
    information technology services. The inventory shall:
            (A) identify geographic gaps in high speed
        Internet service through a method of GIS mapping of
        service availability and GIS analysis at the census
        block level;
            (B) provide a baseline assessment of statewide
        high speed Internet deployment in terms of percentage
        of Illinois households with high speed Internet
        availability; and
            (C) collect from Facilities-based Providers of
        Broadband Connections to End User Locations the
        information provided pursuant to the agreements
        entered into with the non-profit organization as of the
        effective date of this amendatory Act of the 96th
        General Assembly or similar information from
        Facilities-based Providers of Broadband Connections to
        End User Locations that do not have the agreements on
        said date.
            For the purposes of item (C), "Facilities-based
        Providers of Broadband Connections to End User
        Locations" means an entity that meets any of the
        following conditions:
                (i) It owns the portion of the physical
            facility that terminates at the end user location.
                (ii) It obtains unbundled network elements
            (UNEs), special access lines, or other leased
            facilities that terminate at the end user location
            and provisions or equips them as broadband.
                (iii) It provisions or equips a broadband
            wireless channel to the end user location over
            licensed or unlicensed spectrum.
            "Facilities-based Provider of Broadband
        Connections to End User Locations" does not include
        providers of terrestrial fixed wireless services (such
        as Wi-Fi and other wireless Ethernet, or wireless local
        area network, applications) that only enable local
        distribution and sharing of a premises broadband
        facility and does not include air-to-ground services.
        shall have the same meaning as that term is defined in
        Section 13-407 of the Public Utilities Act.
        (2) Track and identify, through customer interviews
    and surveys and other publicly available sources,
    statewide residential and business adoption of high speed
    Internet, computers, and related information technology
    and any barriers to adoption.
        (3) Build and facilitate in each county or designated
    region a local technology planning team with members
    representing a cross section of the community, including,
    but not limited to, representatives of business, K-12
    education, health care, libraries, higher education,
    community-based organizations, local government, tourism,
    parks and recreation, and agriculture. Each team shall
    benchmark technology use across relevant community
    sectors, set goals for improved technology use within each
    sector, and develop a plan for achieving its goals, with
    specific recommendations for online application
    development and demand creation.
        (4) Collaborate with high speed Internet providers and
    technology companies to encourage deployment and use,
    especially in underserved areas, by aggregating local
    demand, mapping analysis, and creating market intelligence
    to improve the business case for providers to deploy.
        (5) Collaborate with the Department in developing a
    program to increase computer ownership and broadband
    access for disenfranchised populations across the State.
    The program may include grants to local community
    technology centers that provide technology training,
    promote computer ownership, and increase broadband access.
        (6) Collaborate with the Department and the Illinois
    Commerce Commission regarding the collection of the
    information required by this Section to assist in
    monitoring and analyzing the broadband markets and the
    status of competition and deployment of broadband services
    to consumers in the State, including the format of
    information requested, provided the Commission enters into
    the proprietary and confidentiality agreements governing
    such information.
    (b) The nonprofit organization may apply for federal grants
consistent with the objectives of this Act.
    (c) (Blank).
    (d) The nonprofit organization shall have the power to
obtain or to raise funds other than the grants received from
the Department under this Act.
    (e) The nonprofit organization and its Board of Directors
shall exist separately and independently from the Department
and any other governmental entity, but shall cooperate with
other public or private entities it deems appropriate in
carrying out its duties.
    (f) Notwithstanding anything in this Act or any other Act
to the contrary, any information that is designated
confidential or proprietary by an entity providing the
information to the nonprofit organization or any other entity
to accomplish the objectives of this Act shall be deemed
confidential, proprietary, and a trade secret and treated by
the nonprofit organization or anyone else possessing the
information as such and shall not be disclosed.
    (g) The nonprofit organization shall provide a report to
the Commission on Government Forecasting and Accountability on
an annual basis for the first 3 complete State fiscal years
following its enlistment.
(Source: P.A. 99-576, eff. 7-15-16.)
 
    Section 10. The Public Utilities Act is amended by changing
Sections 2-105, 2-106, 4-204, 4-304, 5-102, 6-102, 7-204,
8-103B, 8-507, 8-508, 8-509, 9-102.1, 9-201, 9-214, 9-222.2,
9-223, 10-101, 10-101.1, 10-103, 10-104, 10-105, 10-106,
10-107, 10-110, 10-111, 10-201, 10-204, 13-401.1, 13-506.2,
13-515, and 16-108.5 as follows:
 
    (220 ILCS 5/2-105)  (from Ch. 111 2/3, par. 2-105)
    Sec. 2-105. Organization; executive director; assistants
to Commissioners.
    (a) In order that the Commission may perform the duties and
exercise the powers granted to it and assume its
responsibilities under this Act and any and all other statutes
of this State, the Commission, acting jointly, shall hire an
executive director who shall be responsible to the Commission
and shall serve subject only to removal by the Commission for
good cause. The executive director shall be responsible for the
supervision and direction of the Commission staff and for the
necessary administrative activities of the Commission, subject
only to Commission direction and approval. In furtherance
thereof, the executive director may organize the Commission
staff into such departments, bureaus, sections, or divisions as
he may deem necessary or appropriate. In connection therewith,
the executive director may delegate and assign to one or more
staff member or members the supervision and direction of any
such department, bureau, section, or division.
    (b) The executive director shall obtain, subject to the
provisions of the Personnel Code, such accountants, engineers,
experts, inspectors, clerks, and employees as may be necessary
to carry out the provisions of this Act or to perform the
duties and exercise the powers conferred by law upon the
Commission. All accountants, engineers, experts, inspectors,
clerks, and employees of the Commission shall receive the
compensation fixed by the Executive Director, subject only to
Commission approval. Notwithstanding these provisions, each
commissioner shall have the authority to retain up to 2
full-time assistants, subject to the provisions of the
Personnel Code, who shall be supervised by the commissioner and
whose compensation shall be fixed by the commissioner.
    (c) The commissioners, executive director, administrative
law judges hearing examiners, accountants, engineers, clerks,
inspectors, experts, and other employees shall have reimbursed
to them all actual and necessary traveling and other expenses
and disbursements necessarily incurred or made by them in the
discharge of their official duties. The Commission and
executive director may also incur necessary expenses for office
furniture, stationery, printing, and other incidental
expenses.
    (d) A copy of any contract executed between the Commission
and the executive director which establishes or provides for
the expenditure of public funds shall be filed with the State
Comptroller within 15 days of execution and shall be available
for public inspection. Any cancellation or modification of any
such contract shall be filed with the State Comptroller within
15 days of execution and shall be available for public
inspection. When a contract or modification required to be
filed under this subsection has not been filed within 30 days
of execution, the State Comptroller shall refuse to issue any
warrant for payment thereunder until the Commission files the
contract or modification with the State Comptroller.
(Source: P.A. 89-429, eff. 12-15-95.)
 
    (220 ILCS 5/2-106)  (from Ch. 111 2/3, par. 2-106)
    Sec. 2-106. (a) The executive director shall employ
administrative law judges hearing examiners to make valuations
of public utility properties, or to estimate proper rates of
service of public utilities, or to examine other questions
coming before the Commission, by taking testimony or by
independent investigation. The executive director shall
designate one administrative law judge hearing examiner to
serve as chief administrative law judge hearing examiner who
shall be responsible for supervising and directing the
activities of all administrative law judges hearing examiners,
subject to the approval of the executive director.
Administrative law judges Hearing examiners shall, under the
direction of the chief administrative law judge hearing
examiner, take testimony of witnesses, examine accounts,
records, books, papers and physical properties, either by
holding hearings or making independent investigations, in any
matter referred to them by the chief administrative law judge
hearing examiner; and make report thereof to the chief
administrative law judge hearing examiner, and attend at
hearings before the Commission when so directed by the chief
administrative law judge hearing examiner, for the purpose of
explaining their investigations and the result thereof to the
Commission and the parties interested; and perform such other
duties as the chief administrative law judge hearing examiner
may direct.
    (b) All administrative law judges hearing examiners
employed by the Commission shall be thoroughly familiar with
applicable rules of evidence, procedure and administrative
law. At least every two years after an administrative law judge
a hearing examiner is employed by the Commission, the executive
director and chief administrative law judge hearing examiner
shall review the performance of such administrative law judge
hearing examiner based on whether the administrative law judge
examiner:
    (i) is, and is perceived to be, fair to all parties;
    (ii) has a judicious and considerate temperament;
    (iii) is capable of comprehending and properly conducting
proceedings and other duties to which he is assigned;
    (iv) is capable of understanding and rendering rulings on
legal and evidentiary issues;
    (v) is capable of independently evaluating the evidentiary
record and drafting a proposed final order which reflects
careful, impartial and competent analysis; and
    (vi) meets any other qualifications deemed relevant or
necessary by the executive director or chief administrative law
judge hearing examiner.
(Source: P.A. 84-617.)
 
    (220 ILCS 5/4-204)  (from Ch. 111 2/3, par. 4-204)
    Sec. 4-204. If Whenever the Commission receives notice from
the Secretary of State has dissolved or revoked the authority
of that any domestic or foreign company corporation regulated
under this Act to do business in Illinois because that company
has not paid a franchise tax, license fee, filing fee, or
penalty required under the The Business Corporation Act of 1983
or under any other Illinois statute governing the formation or
organization of domestic or foreign corporations, limited
liability companies, partnerships, associations, or other
organizations , approved January 5, 1984, as amended, then the
Commission shall institute proceedings for the revocation of
the franchise, license, permit, or right to engage in any
business required under this Act shall be suspended by
operation of law or the suspension thereof until such time
within a one-year period after the date of suspension as the
delinquent franchise tax, license fee, filing fee, or penalty
is paid and revoked by operation of law for failure to pay the
delinquent franchise tax, license fee, filing fee, or penalty
within the one-year suspension period.
(Source: P.A. 84-617.)
 
    (220 ILCS 5/4-304)  (from Ch. 111 2/3, par. 4-304)
    Sec. 4-304. Beginning in 1986, the Commission shall prepare
an annual report which shall be filed by January 31 of each
year with the Joint Committee on Legislative Support Services
of the General Assembly and the Governor and which shall be
publicly available. Such report shall include:
        (1) A general review of agency activities and changes,
    including:
            (a) a review of significant decisions and other
        regulatory actions for the preceding year, and pending
        cases, and an analysis of the impact of such decisions
        and actions, and potential impact of any significant
        pending cases;
            (b) for each significant decision, regulatory
        action and pending case, a description of the positions
        advocated by major parties, including Commission
        staff, and for each such decision rendered or action
        taken, the position adopted by the Commission and
        reason therefor;
            (c) a description of the Commission's budget,
        caseload, and staff levels, including specifically:
                (i) a breakdown by type of case of the cases
            resolved and filed during the year and of pending
            cases;
                (ii) a description of the allocation of the
            Commission's budget, identifying amounts budgeted
            for each significant regulatory function or
            activity and for each department, bureau, section,
            division or office of the Commission and its
            employees;
                (iii) a description of current employee
            levels, identifying any change occurring during
            the year in the number of employees, personnel
            policies and practices or compensation levels; and
            identifying the number and type of employees
            assigned to each Commission regulatory function
            and to each department, bureau, section, division
            or office of the Commission;
            (d) a description of any significant changes in
        Commission policies, programs or practices with
        respect to agency organization and administration,
        hearings and procedures or substantive regulatory
        activity.
        (2) A discussion and analysis of the state of each
    utility industry regulated by the Commission and
    significant changes, trends and developments therein,
    including the number and types of firms offering each
    utility service, existing, new and prospective
    technologies, variations in the quality, availability and
    price for utility services in different geographic areas of
    the State, and any other industry factors or circumstances
    which may affect the public interest or the regulation of
    such industries.
        (3) A specific discussion of the energy planning
    responsibilities and activities of the Commission and
    energy utilities, including:
            (a) the extent to which conservation,
        cogeneration, renewable energy technologies and
        improvements in energy efficiency are being utilized
        by energy consumers, the extent to which additional
        potential exists for the economical utilization of
        such supplies, and a description of existing and
        proposed programs and policies designed to promote and
        encourage such utilization;
            (b) a description of each energy plan filed with
        the Commission pursuant to the provisions of this Act,
        and a copy, or detailed summary of the most recent
        energy plans adopted by the Commission;
            (c) a discussion of the powers by which the
        Commission is implementing the planning
        responsibilities of Article VIII, including a
        description of the staff and budget assigned to such
        function, the procedures by which Commission staff
        reviews and analyzes energy plans submitted by the
        utilities, the Department of Natural Resources, and
        any other person or party; and
            (d) a summary of the adoption of solar photovoltaic
        systems by residential and small business consumers in
        Illinois and a description of any and all barriers to
        residential and small business consumers' financing,
        installation, and valuation of energy produced by
        solar photovoltaic systems; electric utilities,
        alternative retail electric suppliers, and installers
        of distributed generation shall provide all
        information requested by the Commission or its staff
        necessary to complete the analysis required by this
        paragraph (d).
        (4) A discussion of the extent to which utility
    services are available to all Illinois citizens including:
            (a) the percentage and number of persons or
        households requiring each such service who are not
        receiving such service, and the reasons therefore,
        including specifically the number of such persons or
        households who are unable to afford such service;
            (b) a critical analysis of existing programs
        designed to promote and preserve the availability and
        affordability of utility services; and
            (c) an analysis of the financial impact on
        utilities and other ratepayers of the inability of some
        customers or potential customers to afford utility
        service, including the number of service
        disconnections and reconnections, and cost thereof and
        the dollar amount of uncollectible accounts recovered
        through rates.
        (5) A detailed description of the means by which the
    Commission is implementing its new statutory
    responsibilities under this Act, and the status of such
    implementation, including specifically:
            (a) Commission reorganization resulting from the
        addition of an Executive Director and administrative
        law judge hearing examiner qualifications and review;
            (b) Commission responsibilities for construction
        and rate supervision, including construction cost
        audits, management audits, excess capacity
        adjustments, phase-ins of new plant and the means and
        capability for monitoring and reevaluating existing or
        future construction projects;
            (c) promulgation and application of rules
        concerning ex parte communications, circulation of
        recommended orders and transcription of closed
        meetings.
        (6) A description of all appeals taken from Commission
    orders, findings or decisions and the status and outcome of
    such appeals.
        (7) A description of the status of all studies and
    investigations required by this Act, including those
    ordered pursuant to Sections 8-304, 9-242, 9-244 and 13-301
    and all such subsequently ordered studies or
    investigations.
        (8) A discussion of new or potential developments in
    federal legislation, and federal agency and judicial
    decisions relevant to State regulation of utility
    services.
        (9) All recommendations for appropriate legislative
    action by the General Assembly.
    The Commission may include such other information as it
deems to be necessary or beneficial in describing or explaining
its activities or regulatory responsibilities. The report
required by this Section shall be adopted by a vote of the full
Commission prior to filing.
(Source: P.A. 99-107, eff. 7-22-15.)
 
    (220 ILCS 5/5-102)  (from Ch. 111 2/3, par. 5-102)
    Sec. 5-102. The Commission shall have power to establish a
uniform system of accounts to be kept by public utilities or to
classify public utilities and to establish a uniform system of
accounts for each class and to prescribe the manner in which
such accounts shall be kept. It may also, in its discretion,
prescribe the forms of accounts to be kept by public utilities,
including records of service, as well as accounts of earnings
and expenses, and any other forms, records and memoranda which
in the judgment of the Commission may be necessary to carry out
any of the provisions of this Act. The system of accounts
established by the Commission and the forms of accounts
prescribed by it shall not be inconsistent, in the case of
corporations subject to the provisions of the Act of Congress
entitled, "An Act to regulate commerce," approved February
fourth, eighteen hundred and eighty-seven, and the Acts
amendatory thereof and supplementary thereto, with the systems
and forms from time to time established for such corporations
by the Interstate Commerce Commission, but nothing herein
contained shall affect the power of the Commission to prescribe
forms of accounts for such corporations, with the approval of
the Interstate Commerce Commission, covering information in
addition to that required by the Interstate Commerce
Commission. Where the Commission has prescribed the forms of
accounts to be kept by any public utility for any of its
business, it shall thereafter be unlawful for such public
utility to keep any accounts for such business other than those
prescribed or approved by the Commission, or those prescribed
by or under the authority of any other state or of the United
States.
    The Commission may, from time to time, alter, amend or
repeal, in whole or in part, any uniform system of accounts, or
the form and manner of keeping accounts.
(Source: P.A. 84-617.)
 
    (220 ILCS 5/6-102)  (from Ch. 111 2/3, par. 6-102)
    Sec. 6-102. Authorization of issues of stock.
    (a) Subject to the provisions of this Act and of the order
of the Commission issued as provided in this Act, a public
utility may issue stocks and stock certificates, and bonds,
notes and other evidences of indebtedness payable at periods of
more than 12 months after the date thereof for any lawful
purpose. However, such public utility shall first have secured
from the Commission an order authorizing such issue and stating
the amount thereof and the purpose or purposes to which the
issue or the proceeds thereof are to be applied, and that in
the opinion of the Commission, the money, property or labor to
be procured or paid for by such issue is reasonably required
for the purpose or purposes specified in the order.
    (b) The provisions of this subsection (b) shall apply only
to (1) any issuances of stock in a cumulative amount, exclusive
of any issuances referred to in item (3), that are 10% or more
in a calendar year or 20% or more in a 24-month period of the
total common stockholders' equity or of the total amount of
preferred stock outstanding, as the case may be, of the public
utility, and (2) to any issuances of bonds, notes or other
evidences of indebtedness in a cumulative principal amount,
exclusive of any issuances referred to in item (3), that are
10% or more in a calendar year or 20% or more in a 24-month
period of the aggregate principal amount of bonds, notes and
other evidences of indebtedness of the public utility
outstanding, all as of the date of the issuance, but shall not
apply to (3) any issuances of stock or of bonds, notes or other
evidences of indebtedness 90% or more of the proceeds of which
are to be used by the public utility for purposes of refunding,
redeeming or refinancing outstanding issues of stock, bonds,
notes or other evidences of indebtedness. To enable it to
determine whether it will issue the order required by
subsection (a) of this Section, the Commission may hold a
hearing and may make such additional inquiry or investigation,
and examine such witnesses, books, papers, accounts, documents
and contracts and require the filing of such data as it may
deem of assistance. The public utility may be required by the
Commission to disclose every interest of the directors of such
public utility in any transaction under investigation. The
Commission shall have power to investigate all such
transactions and to inquire into the good faith thereof, to
examine books, papers, accounts, documents and contracts of
public utilities, construction or other companies or of firms
or individuals with whom the public utility shall have had
financial transactions, for the purpose of enabling it to
verify any statements furnished, and to examine into the actual
value of property acquired by or services rendered to such
public utility. Before issuing its order, the Commission, when
it is deemed necessary by the Commission, shall make an
adequate physical valuation of all property of the public
utility, but a valuation already made under proper public
supervision may be adopted, either in whole or in part, at the
discretion of the Commission; and shall also examine all
previously authorized or outstanding securities of the public
utility, and fixed charges attached thereto. A statement of the
results of such physical valuation, and a statement of the
character of all outstanding securities, together with the
conditions under which they are held, shall be included in the
order. The Commission may require that such information or such
part thereof as it thinks proper, shall appear upon the stock,
stock certificate, bond, note or other evidence of indebtedness
authorized by its order. The Commission may by its order grant
permission for the issue of such stock certificates, or bonds,
notes or other evidences of indebtedness in the amount applied
for, or in a lesser amount, or not at all, and may attach to the
exercise of its permission such condition or conditions as it
may deem reasonable and necessary. Nothing in this Section
shall prevent a public utility from seeking, nor the Commission
from approving, a shelf registration plan for issuing
securities over a reasonable period in accordance with
regulations established by the United States Securities and
Exchange Commission. Any securities issued pursuant to an
approved shelf registration plan need not be further approved
by the Commission so long as they are in compliance with the
approved shelf registration plan. The Commission shall have the
power to refuse its approval of applications to issue
securities, in whole or in part, upon a finding that the issue
of such securities would be contrary to public interest. The
Commission may also require the public utility to compile for
the information of its shareholders such facts in regard to its
financial transactions, in such form as the Commission may
direct.
    No public utility shall, without the consent of the
Commission, apply the issue of any stock or stock certificates,
or bond, note or other evidence of indebtedness, which was
issued pursuant to an order of the Commission entered pursuant
to this subsection (b), or any part thereof, or any proceeds
thereof, to any purpose not specified in the Commission's order
or to any purpose specified in the Commission's order in excess
of the amount authorized for such purpose; or issue or dispose
of the same on any terms less favorable than those specified in
such order, or a modification thereof. The Commission shall
have the power to require public utilities to account for the
disposition of the proceeds of all sales of stocks and stock
certificates, and bonds, notes and other evidences of
indebtedness, which were issued pursuant to an order of the
Commission entered pursuant to this subsection (b), in such
form and detail as it may deem advisable, and to establish such
rules and regulations as it may deem reasonable and necessary
to insure the disposition of such proceeds for the purpose or
purposes specified in its order.
    (c) A public utility may issue notes, for proper purposes,
and not in violation of any provision of this Act or any other
Act, payable at periods of not more than 12 months after the
date of issuance of the same, without the consent of the
Commission; but no such note shall, in whole or in part, be
renewed or be refunded from the proceeds of any other such note
or evidence of indebtedness from time to time without the
consent of the Commission for an aggregate period of longer
than 2 years. A "telecommunications carrier" as that term is
defined by Section 13-202 of this Act is exempt from the
requirements of this subsection (c).
    (d) Any issuance of stock or of bonds, notes or other
evidences of indebtedness, other than issuances of notes
pursuant to subsection (c) of this Section, which is not
subject to subsection (b) of this Section, shall be regulated
by the Commission as follows: the public utility shall file
with the Commission, at least 15 days before the date of the
issuance, an informational statement setting forth the type and
amount of the issue and the purpose or purposes to which the
issue or the proceeds thereof are to be applied. Prior to the
date of the issuance specified in the public utility's filing,
the Commission, if it finds that the issuance is not subject to
subsection (b) of this Section, shall issue a written order in
conformance with subsection (a) of this Section authorizing the
issuance. Notwithstanding any other provisions of this Act, the
Commission may delegate its authority to enter the order
required by this subsection (d) to an administrative law judge
a hearing examiner.
    (e) The Commission shall have no power to authorize the
capitalization of the right to be a corporation, or to
authorize the capitalization of any franchise, license, or
permit whatsoever or the right to own, operate or enjoy any
such franchise, license, or permit, in excess of the amount
(exclusive of any tax or annual charge) actually paid to the
State or to a political subdivision thereof as the
consideration for the grant of such franchise, license, permit
or right; nor shall any contract for consolidation or lease be
capitalized, nor shall any public utility hereafter issue any
bonds, notes or other evidences of indebtedness against or as a
lien, upon any contract for consolidation or merger.
    (f) The provisions of this Section shall not apply to
public utilities which are not corporations duly incorporated
under the laws of this State to the extent that any such public
utility may issue stock, bonds, notes or other evidences of
indebtedness not directly or indirectly constituting or
creating a lien or charge on, or right to profits from, any
property used or useful in rendering service within this State.
Nothing in this Section or in Section 6-104 of this Act shall
be construed to require a common carrier by railroad subject to
Part I of the Interstate Commerce Act, being part of an Act of
the 49th Congress of the United States entitled "An Act to
Regulate Commerce", as amended, to secure from the Commission
authority to issue or execute or deliver any conditional sales
contract or similar contract or instrument reserving or
retaining title in the seller for all or part of the purchase
price of equipment or property used or to be used for or in
connection with the transportation of persons or property.
(Source: P.A. 90-561, eff. 12-16-97; 91-69, eff. 7-9-99.)
 
    (220 ILCS 5/7-204)  (from Ch. 111 2/3, par. 7-204)
    Sec. 7-204. Reorganization defined; Commission approval
therefore.
    (a) For purposes of this Section, "reorganization" means
any transaction which, regardless of the means by which it is
accomplished, results in a change in the ownership of a
majority of the voting capital stock of an Illinois public
utility; or the ownership or control of any entity which owns
or controls a majority of the voting capital stock of a public
utility; or by which 2 public utilities merge, or by which a
public utility acquires substantially all of the assets of
another public utility; provided, however, that
"reorganization" as used in this Section shall not include a
mortgage or pledge transaction entered into to secure a bona
fide borrowing by the party granting the mortgage or making the
pledge.
    In addition to the foregoing, "reorganization" shall
include for purposes of this Section any transaction which,
regardless of the means by which it is accomplished, will have
the effect of terminating the affiliated interest status of any
entity as defined in paragraphs (a), (b), (c) or (d) of
subsection (2) of Section 7-101 of this Act where such entity
had transactions with the public utility, in the 12 calendar
months immediately preceding the date of termination of such
affiliated interest status subject to subsection (3) of Section
7-101 of this Act with a value greater than 15% of the public
utility's revenues for that same 12-month period. If the
proposed transaction would have the effect of terminating the
affiliated interest status of more than one Illinois public
utility, the utility with the greatest revenues for the
12-month period shall be used to determine whether such
proposed transaction is a reorganization for the purposes of
this Section. The Commission shall have jurisdiction over any
reorganization as defined herein.
    (b) No reorganization shall take place without prior
Commission approval. The Commission shall not approve any
proposed reorganization if the Commission finds, after notice
and hearing, that the reorganization will adversely affect the
utility's ability to perform its duties under this Act. The
Commission shall not approve any proposed reorganization
unless the Commission finds, after notice and hearing, In
reviewing any proposed reorganization, the Commission must
find that:
        (1) the proposed reorganization will not diminish the
    utility's ability to provide adequate, reliable,
    efficient, safe and least-cost public utility service;
        (2) the proposed reorganization will not result in the
    unjustified subsidization of non-utility activities by the
    utility or its customers;
        (3) costs and facilities are fairly and reasonably
    allocated between utility and non-utility activities in
    such a manner that the Commission may identify those costs
    and facilities which are properly included by the utility
    for ratemaking purposes;
        (4) the proposed reorganization will not significantly
    impair the utility's ability to raise necessary capital on
    reasonable terms or to maintain a reasonable capital
    structure;
        (5) the utility will remain subject to all applicable
    laws, regulations, rules, decisions and policies governing
    the regulation of Illinois public utilities;
        (6) the proposed reorganization is not likely to have a
    significant adverse effect on competition in those markets
    over which the Commission has jurisdiction;
        (7) the proposed reorganization is not likely to result
    in any adverse rate impacts on retail customers.
    (c) The Commission shall not approve a reorganization
without ruling on: (i) the allocation of any savings resulting
from the proposed reorganization; and (ii) whether the
companies should be allowed to recover any costs incurred in
accomplishing the proposed reorganization and, if so, the
amount of costs eligible for recovery and how the costs will be
allocated.
    (d) The Commission shall issue its Order approving or
denying the proposed reorganization within 11 months after the
application is filed. The Commission may extend the deadline
for a period equivalent to the length of any delay which the
Commission finds to have been caused by the Applicant's failure
to provide data or information requested by the Commission or
that the Commission ordered the Applicant to provide to the
parties. The Commission may also extend the deadline by an
additional period not to exceed 3 months to consider amendments
to the Applicant's filing, or to consider reasonably
unforeseeable changes in circumstances subsequent to the
Applicant's initial filing.
    (e) Subsections (c) and (d) and subparagraphs (6) and (7)
of subsection (b) of this Section shall apply only to merger
applications submitted to the Commission subsequent to April
23, 1997. No other Commission approvals shall be required for
mergers that are subject to this Section.
    (f) In approving any proposed reorganization pursuant to
this Section the Commission may impose such terms, conditions
or requirements as, in its judgment, are necessary to protect
the interests of the public utility and its customers.
(Source: P.A. 90-561, eff. 12-16-97.)
 
    (220 ILCS 5/8-103B)
    Sec. 8-103B. Energy efficiency and demand-response
measures.
    (a) It is the policy of the State that electric utilities
are required to use cost-effective energy efficiency and
demand-response measures to reduce delivery load. Requiring
investment in cost-effective energy efficiency and
demand-response measures will reduce direct and indirect costs
to consumers by decreasing environmental impacts and by
avoiding or delaying the need for new generation, transmission,
and distribution infrastructure. It serves the public interest
to allow electric utilities to recover costs for reasonably and
prudently incurred expenditures for energy efficiency and
demand-response measures. As used in this Section,
"cost-effective" means that the measures satisfy the total
resource cost test. The low-income measures described in
subsection (c) of this Section shall not be required to meet
the total resource cost test. For purposes of this Section, the
terms "energy-efficiency", "demand-response", "electric
utility", and "total resource cost test" have the meanings set
forth in the Illinois Power Agency Act.
    (a-5) This Section applies to electric utilities serving
more than 500,000 retail customers in the State for those
multi-year plans commencing after December 31, 2017.
    (b) For purposes of this Section, electric utilities
subject to this Section that serve more than 3,000,000 retail
customers in the State shall be deemed to have achieved a
cumulative persisting annual savings of 6.6% from energy
efficiency measures and programs implemented during the period
beginning January 1, 2012 and ending December 31, 2017, which
percent is based on the deemed average weather normalized sales
of electric power and energy during calendar years 2014, 2015,
and 2016 of 88,000,000 MWhs. For the purposes of this
subsection (b) and subsection (b-5), the 88,000,000 MWhs of
deemed electric power and energy sales shall be reduced by the
number of MWhs equal to the sum of the annual consumption of
customers that are exempt from subsections (a) through (j) of
this Section under subsection (l) of this Section, as averaged
across the calendar years 2014, 2015, and 2016. After 2017, the
deemed value of cumulative persisting annual savings from
energy efficiency measures and programs implemented during the
period beginning January 1, 2012 and ending December 31, 2017,
shall be reduced each year, as follows, and the applicable
value shall be applied to and count toward the utility's
achievement of the cumulative persisting annual savings goals
set forth in subsection (b-5):
        (1) 5.8% deemed cumulative persisting annual savings
    for the year ending December 31, 2018;
        (2) 5.2% deemed cumulative persisting annual savings
    for the year ending December 31, 2019;
        (3) 4.5% deemed cumulative persisting annual savings
    for the year ending December 31, 2020;
        (4) 4.0% deemed cumulative persisting annual savings
    for the year ending December 31, 2021;
        (5) 3.5% deemed cumulative persisting annual savings
    for the year ending December 31, 2022;
        (6) 3.1% deemed cumulative persisting annual savings
    for the year ending December 31, 2023;
        (7) 2.8% deemed cumulative persisting annual savings
    for the year ending December 31, 2024;
        (8) 2.5% deemed cumulative persisting annual savings
    for the year ending December 31, 2025;
        (9) 2.3% deemed cumulative persisting annual savings
    for the year ending December 31, 2026;
        (10) 2.1% deemed cumulative persisting annual savings
    for the year ending December 31, 2027;
        (11) 1.8% deemed cumulative persisting annual savings
    for the year ending December 31, 2028;
        (12) 1.7% deemed cumulative persisting annual savings
    for the year ending December 31, 2029; and
        (13) 1.5% deemed cumulative persisting annual savings
    for the year ending December 31, 2030.
    For purposes of this Section, "cumulative persisting
annual savings" means the total electric energy savings in a
given year from measures installed in that year or in previous
years, but no earlier than January 1, 2012, that are still
operational and providing savings in that year because the
measures have not yet reached the end of their useful lives.
    (b-5) Beginning in 2018, electric utilities subject to this
Section that serve more than 3,000,000 retail customers in the
State shall achieve the following cumulative persisting annual
savings goals, as modified by subsection (f) of this Section
and as compared to the deemed baseline of 88,000,000 MWhs of
electric power and energy sales set forth in subsection (b), as
reduced by the number of MWhs equal to the sum of the annual
consumption of customers that are exempt from subsections (a)
through (j) of this Section under subsection (l) of this
Section as averaged across the calendar years 2014, 2015, and
2016, through the implementation of energy efficiency measures
during the applicable year and in prior years, but no earlier
than January 1, 2012:
        (1) 7.8% cumulative persisting annual savings for the
    year ending December 31, 2018;
        (2) 9.1% cumulative persisting annual savings for the
    year ending December 31, 2019;
        (3) 10.4% cumulative persisting annual savings for the
    year ending December 31, 2020;
        (4) 11.8% cumulative persisting annual savings for the
    year ending December 31, 2021;
        (5) 13.1% cumulative persisting annual savings for the
    year ending December 31, 2022;
        (6) 14.4% cumulative persisting annual savings for the
    year ending December 31, 2023;
        (7) 15.7% cumulative persisting annual savings for the
    year ending December 31, 2024;
        (8) 17% cumulative persisting annual savings for the
    year ending December 31, 2025;
        (9) 17.9% cumulative persisting annual savings for the
    year ending December 31, 2026;
        (10) 18.8% cumulative persisting annual savings for
    the year ending December 31, 2027;
        (11) 19.7% cumulative persisting annual savings for
    the year ending December 31, 2028;
        (12) 20.6% cumulative persisting annual savings for
    the year ending December 31, 2029; and
        (13) 21.5% cumulative persisting annual savings for
    the year ending December 31, 2030.
    (b-10) For purposes of this Section, electric utilities
subject to this Section that serve less than 3,000,000 retail
customers but more than 500,000 retail customers in the State
shall be deemed to have achieved a cumulative persisting annual
savings of 6.6% from energy efficiency measures and programs
implemented during the period beginning January 1, 2012 and
ending December 31, 2017, which is based on the deemed average
weather normalized sales of electric power and energy during
calendar years 2014, 2015, and 2016 of 36,900,000 MWhs. For the
purposes of this subsection (b-10) and subsection (b-15), the
36,900,000 MWhs of deemed electric power and energy sales shall
be reduced by the number of MWhs equal to the sum of the annual
consumption of customers that are exempt from subsections (a)
through (j) of this Section under subsection (l) of this
Section, as averaged across the calendar years 2014, 2015, and
2016. After 2017, the deemed value of cumulative persisting
annual savings from energy efficiency measures and programs
implemented during the period beginning January 1, 2012 and
ending December 31, 2017, shall be reduced each year, as
follows, and the applicable value shall be applied to and count
toward the utility's achievement of the cumulative persisting
annual savings goals set forth in subsection (b-15):
        (1) 5.8% deemed cumulative persisting annual savings
    for the year ending December 31, 2018;
        (2) 5.2% deemed cumulative persisting annual savings
    for the year ending December 31, 2019;
        (3) 4.5% deemed cumulative persisting annual savings
    for the year ending December 31, 2020;
        (4) 4.0% deemed cumulative persisting annual savings
    for the year ending December 31, 2021;
        (5) 3.5% deemed cumulative persisting annual savings
    for the year ending December 31, 2022;
        (6) 3.1% deemed cumulative persisting annual savings
    for the year ending December 31, 2023;
        (7) 2.8% deemed cumulative persisting annual savings
    for the year ending December 31, 2024;
        (8) 2.5% deemed cumulative persisting annual savings
    for the year ending December 31, 2025;
        (9) 2.3% deemed cumulative persisting annual savings
    for the year ending December 31, 2026;
        (10) 2.1% deemed cumulative persisting annual savings
    for the year ending December 31, 2027;
        (11) 1.8% deemed cumulative persisting annual savings
    for the year ending December 31, 2028;
        (12) 1.7% deemed cumulative persisting annual savings
    for the year ending December 31, 2029; and
        (13) 1.5% deemed cumulative persisting annual savings
    for the year ending December 31, 2030.
    (b-15) Beginning in 2018, electric utilities subject to
this Section that serve less than 3,000,000 retail customers
but more than 500,000 retail customers in the State shall
achieve the following cumulative persisting annual savings
goals, as modified by subsection (b-20) and subsection (f) of
this Section and as compared to the deemed baseline as reduced
by the number of MWhs equal to the sum of the annual
consumption of customers that are exempt from subsections (a)
through (j) of this Section under subsection (l) of this
Section as averaged across the calendar years 2014, 2015, and
2016, through the implementation of energy efficiency measures
during the applicable year and in prior years, but no earlier
than January 1, 2012:
        (1) 7.4% cumulative persisting annual savings for the
    year ending December 31, 2018;
        (2) 8.2% cumulative persisting annual savings for the
    year ending December 31, 2019;
        (3) 9.0% cumulative persisting annual savings for the
    year ending December 31, 2020;
        (4) 9.8% cumulative persisting annual savings for the
    year ending December 31, 2021;
        (5) 10.6% cumulative persisting annual savings for the
    year ending December 31, 2022;
        (6) 11.4% cumulative persisting annual savings for the
    year ending December 31, 2023;
        (7) 12.2% cumulative persisting annual savings for the
    year ending December 31, 2024;
        (8) 13% cumulative persisting annual savings for the
    year ending December 31, 2025;
        (9) 13.6% cumulative persisting annual savings for the
    year ending December 31, 2026;
        (10) 14.2% cumulative persisting annual savings for
    the year ending December 31, 2027;
        (11) 14.8% cumulative persisting annual savings for
    the year ending December 31, 2028;
        (12) 15.4% cumulative persisting annual savings for
    the year ending December 31, 2029; and
        (13) 16% cumulative persisting annual savings for the
    year ending December 31, 2030.
    The difference between the cumulative persisting annual
savings goal for the applicable calendar year and the
cumulative persisting annual savings goal for the immediately
preceding calendar year is 0.8% for the period of January 1,
2018 through December 31, 2025 and 0.6% for the period of
January 1, 2026 through December 31, 2030.
    (b-20) Each electric utility subject to this Section may
include cost-effective voltage optimization measures in its
plans submitted under subsections (f) and (g) of this Section,
and the costs incurred by a utility to implement the measures
under a Commission-approved plan shall be recovered under the
provisions of Article IX or Section 16-108.5 of this Act. For
purposes of this Section, the measure life of voltage
optimization measures shall be 15 years. The measure life
period is independent of the depreciation rate of the voltage
optimization assets deployed.
    Within 270 days after the effective date of this amendatory
Act of the 99th General Assembly, an electric utility that
serves less than 3,000,000 retail customers but more than
500,000 retail customers in the State shall file a plan with
the Commission that identifies the cost-effective voltage
optimization investment the electric utility plans to
undertake through December 31, 2024. The Commission, after
notice and hearing, shall approve or approve with modification
the plan within 120 days after the plan's filing and, in the
order approving or approving with modification the plan, the
Commission shall adjust the applicable cumulative persisting
annual savings goals set forth in subsection (b-15) to reflect
any amount of cost-effective energy savings approved by the
Commission that is greater than or less than the following
cumulative persisting annual savings values attributable to
voltage optimization for the applicable year:
        (1) 0.0% of cumulative persisting annual savings for
    the year ending December 31, 2018;
        (2) 0.17% of cumulative persisting annual savings for
    the year ending December 31, 2019;
        (3) 0.17% of cumulative persisting annual savings for
    the year ending December 31, 2020;
        (4) 0.33% of cumulative persisting annual savings for
    the year ending December 31, 2021;
        (5) 0.5% of cumulative persisting annual savings for
    the year ending December 31, 2022;
        (6) 0.67% of cumulative persisting annual savings for
    the year ending December 31, 2023;
        (7) 0.83% of cumulative persisting annual savings for
    the year ending December 31, 2024; and
        (8) 1.0% of cumulative persisting annual savings for
    the year ending December 31, 2025.
    (b-25) In the event an electric utility jointly offers an
energy efficiency measure or program with a gas utility under
plans approved under this Section and Section 8-104 of this
Act, the electric utility may continue offering the program,
including the gas energy efficiency measures, in the event the
gas utility discontinues funding the program. In that event,
the energy savings value associated with such other fuels shall
be converted to electric energy savings on an equivalent Btu
basis for the premises. However, the electric utility shall
prioritize programs for low-income residential customers to
the extent practicable. An electric utility may recover the
costs of offering the gas energy efficiency measures under this
subsection (b-25).
    For those energy efficiency measures or programs that save
both electricity and other fuels but are not jointly offered
with a gas utility under plans approved under this Section and
Section 8-104 or not offered with an affiliated gas utility
under paragraph (6) of subsection (f) of Section 8-104 of this
Act, the electric utility may count savings of fuels other than
electricity toward the achievement of its annual savings goal,
and the energy savings value associated with such other fuels
shall be converted to electric energy savings on an equivalent
Btu basis at the premises.
    In no event shall more than 10% of each year's applicable
annual incremental goal as defined in paragraph (7) of
subsection (g) of this Section be met through savings of fuels
other than electricity.
    (c) Electric utilities shall be responsible for overseeing
the design, development, and filing of energy efficiency plans
with the Commission and may, as part of that implementation,
outsource various aspects of program development and
implementation. A minimum of 10%, for electric utilities that
serve more than 3,000,000 retail customers in the State, and a
minimum of 7%, for electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State, of the utility's entire portfolio
funding level for a given year shall be used to procure
cost-effective energy efficiency measures from units of local
government, municipal corporations, school districts, public
housing, and community college districts, provided that a
minimum percentage of available funds shall be used to procure
energy efficiency from public housing, which percentage shall
be equal to public housing's share of public building energy
consumption.
    The utilities shall also implement energy efficiency
measures targeted at low-income households, which, for
purposes of this Section, shall be defined as households at or
below 80% of area median income, and expenditures to implement
the measures shall be no less than $25,000,000 per year for
electric utilities that serve more than 3,000,000 retail
customers in the State and no less than $8,350,000 per year for
electric utilities that serve less than 3,000,000 retail
customers but more than 500,000 retail customers in the State.
    Each electric utility shall assess opportunities to
implement cost-effective energy efficiency measures and
programs through a public housing authority or authorities
located in its service territory. If such opportunities are
identified, the utility shall propose such measures and
programs to address the opportunities. Expenditures to address
such opportunities shall be credited toward the minimum
procurement and expenditure requirements set forth in this
subsection (c).
    Implementation of energy efficiency measures and programs
targeted at low-income households should be contracted, when it
is practicable, to independent third parties that have
demonstrated capabilities to serve such households, with a
preference for not-for-profit entities and government agencies
that have existing relationships with or experience serving
low-income communities in the State.
    Each electric utility shall develop and implement
reporting procedures that address and assist in determining the
amount of energy savings that can be applied to the low-income
procurement and expenditure requirements set forth in this
subsection (c).
    The electric utilities shall also convene a low-income
energy efficiency advisory committee to assist in the design
and evaluation of the low-income energy efficiency programs.
The committee shall be comprised of the electric utilities
subject to the requirements of this Section, the gas utilities
subject to the requirements of Section 8-104 of this Act, the
utilities' low-income energy efficiency implementation
contractors, and representatives of community-based
organizations.
    (d) Notwithstanding any other provision of law to the
contrary, a utility providing approved energy efficiency
measures and, if applicable, demand-response measures in the
State shall be permitted to recover all reasonable and
prudently incurred costs of those measures from all retail
customers, except as provided in subsection (l) of this
Section, as follows, provided that nothing in this subsection
(d) permits the double recovery of such costs from customers:
        (1) The utility may recover its costs through an
    automatic adjustment clause tariff filed with and approved
    by the Commission. The tariff shall be established outside
    the context of a general rate case. Each year the
    Commission shall initiate a review to reconcile any amounts
    collected with the actual costs and to determine the
    required adjustment to the annual tariff factor to match
    annual expenditures. To enable the financing of the
    incremental capital expenditures, including regulatory
    assets, for electric utilities that serve less than
    3,000,000 retail customers but more than 500,000 retail
    customers in the State, the utility's actual year-end
    capital structure that includes a common equity ratio,
    excluding goodwill, of up to and including 50% of the total
    capital structure shall be deemed reasonable and used to
    set rates.
        (2) A utility may recover its costs through an energy
    efficiency formula rate approved by the Commission under a
    filing under subsections (f) and (g) of this Section, which
    shall specify the cost components that form the basis of
    the rate charged to customers with sufficient specificity
    to operate in a standardized manner and be updated annually
    with transparent information that reflects the utility's
    actual costs to be recovered during the applicable rate
    year, which is the period beginning with the first billing
    day of January and extending through the last billing day
    of the following December. The energy efficiency formula
    rate shall be implemented through a tariff filed with the
    Commission under subsections (f) and (g) of this Section
    that is consistent with the provisions of this paragraph
    (2) and that shall be applicable to all delivery services
    customers. The Commission shall conduct an investigation
    of the tariff in a manner consistent with the provisions of
    this paragraph (2), subsections (f) and (g) of this
    Section, and the provisions of Article IX of this Act to
    the extent they do not conflict with this paragraph (2).
    The energy efficiency formula rate approved by the
    Commission shall remain in effect at the discretion of the
    utility and shall do the following:
            (A) Provide for the recovery of the utility's
        actual costs incurred under this Section that are
        prudently incurred and reasonable in amount consistent
        with Commission practice and law. The sole fact that a
        cost differs from that incurred in a prior calendar
        year or that an investment is different from that made
        in a prior calendar year shall not imply the imprudence
        or unreasonableness of that cost or investment.
            (B) Reflect the utility's actual year-end capital
        structure for the applicable calendar year, excluding
        goodwill, subject to a determination of prudence and
        reasonableness consistent with Commission practice and
        law. To enable the financing of the incremental capital
        expenditures, including regulatory assets, for
        electric utilities that serve less than 3,000,000
        retail customers but more than 500,000 retail
        customers in the State, a participating electric
        utility's actual year-end capital structure that
        includes a common equity ratio, excluding goodwill, of
        up to and including 50% of the total capital structure
        shall be deemed reasonable and used to set rates.
            (C) Include a cost of equity, which shall be
        calculated as the sum of the following:
                (i) the average for the applicable calendar
            year of the monthly average yields of 30-year U.S.
            Treasury bonds published by the Board of Governors
            of the Federal Reserve System in its weekly H.15
            Statistical Release or successor publication; and
                (ii) 580 basis points.
            At such time as the Board of Governors of the
        Federal Reserve System ceases to include the monthly
        average yields of 30-year U.S. Treasury bonds in its
        weekly H.15 Statistical Release or successor
        publication, the monthly average yields of the U.S.
        Treasury bonds then having the longest duration
        published by the Board of Governors in its weekly H.15
        Statistical Release or successor publication shall
        instead be used for purposes of this paragraph (2).
            (D) Permit and set forth protocols, subject to a
        determination of prudence and reasonableness
        consistent with Commission practice and law, for the
        following:
                (i) recovery of incentive compensation expense
            that is based on the achievement of operational
            metrics, including metrics related to budget
            controls, outage duration and frequency, safety,
            customer service, efficiency and productivity, and
            environmental compliance; however, this protocol
            shall not apply if such expense related to costs
            incurred under this Section is recovered under
            Article IX or Section 16-108.5 of this Act;
            incentive compensation expense that is based on
            net income or an affiliate's earnings per share
            shall not be recoverable under the energy
            efficiency formula rate;
                (ii) recovery of pension and other
            post-employment benefits expense, provided that
            such costs are supported by an actuarial study;
            however, this protocol shall not apply if such
            expense related to costs incurred under this
            Section is recovered under Article IX or Section
            16-108.5 of this Act;
                (iii) recovery of existing regulatory assets
            over the periods previously authorized by the
            Commission;
                (iv) as described in subsection (e),
            amortization of costs incurred under this Section;
            and
                (v) projected, weather normalized billing
            determinants for the applicable rate year.
            (E) Provide for an annual reconciliation, as
        described in paragraph (3) of this subsection (d), less
        any deferred taxes related to the reconciliation, with
        interest at an annual rate of return equal to the
        utility's weighted average cost of capital, including
        a revenue conversion factor calculated to recover or
        refund all additional income taxes that may be payable
        or receivable as a result of that return, of the energy
        efficiency revenue requirement reflected in rates for
        each calendar year, beginning with the calendar year in
        which the utility files its energy efficiency formula
        rate tariff under this paragraph (2), with what the
        revenue requirement would have been had the actual cost
        information for the applicable calendar year been
        available at the filing date.
        The utility shall file, together with its tariff, the
    projected costs to be incurred by the utility during the
    rate year under the utility's multi-year plan approved
    under subsections (f) and (g) of this Section, including,
    but not limited to, the projected capital investment costs
    and projected regulatory asset balances with
    correspondingly updated depreciation and amortization
    reserves and expense, that shall populate the energy
    efficiency formula rate and set the initial rates under the
    formula.
        The Commission shall review the proposed tariff in
    conjunction with its review of a proposed multi-year plan,
    as specified in paragraph (5) of subsection (g) of this
    Section. The review shall be based on the same evidentiary
    standards, including, but not limited to, those concerning
    the prudence and reasonableness of the costs incurred by
    the utility, the Commission applies in a hearing to review
    a filing for a general increase in rates under Article IX
    of this Act. The initial rates shall take effect beginning
    with the January monthly billing period following the
    Commission's approval.
        The tariff's rate design and cost allocation across
    customer classes shall be consistent with the utility's
    automatic adjustment clause tariff in effect on the
    effective date of this amendatory Act of the 99th General
    Assembly; however, the Commission may revise the tariff's
    rate design and cost allocation in subsequent proceedings
    under paragraph (3) of this subsection (d).
        If the energy efficiency formula rate is terminated,
    the then current rates shall remain in effect until such
    time as the energy efficiency costs are incorporated into
    new rates that are set under this subsection (d) or Article
    IX of this Act, subject to retroactive rate adjustment,
    with interest, to reconcile rates charged with actual
    costs.
        (3) The provisions of this paragraph (3) shall only
    apply to an electric utility that has elected to file an
    energy efficiency formula rate under paragraph (2) of this
    subsection (d). Subsequent to the Commission's issuance of
    an order approving the utility's energy efficiency formula
    rate structure and protocols, and initial rates under
    paragraph (2) of this subsection (d), the utility shall
    file, on or before June 1 of each year, with the Chief
    Clerk of the Commission its updated cost inputs to the
    energy efficiency formula rate for the applicable rate year
    and the corresponding new charges, as well as the
    information described in paragraph (9) of subsection (g) of
    this Section. Each such filing shall conform to the
    following requirements and include the following
    information:
            (A) The inputs to the energy efficiency formula
        rate for the applicable rate year shall be based on the
        projected costs to be incurred by the utility during
        the rate year under the utility's multi-year plan
        approved under subsections (f) and (g) of this Section,
        including, but not limited to, projected capital
        investment costs and projected regulatory asset
        balances with correspondingly updated depreciation and
        amortization reserves and expense. The filing shall
        also include a reconciliation of the energy efficiency
        revenue requirement that was in effect for the prior
        rate year (as set by the cost inputs for the prior rate
        year) with the actual revenue requirement for the prior
        rate year (determined using a year-end rate base) that
        uses amounts reflected in the applicable FERC Form 1
        that reports the actual costs for the prior rate year.
        Any over-collection or under-collection indicated by
        such reconciliation shall be reflected as a credit
        against, or recovered as an additional charge to,
        respectively, with interest calculated at a rate equal
        to the utility's weighted average cost of capital
        approved by the Commission for the prior rate year, the
        charges for the applicable rate year. Such
        over-collection or under-collection shall be adjusted
        to remove any deferred taxes related to the
        reconciliation, for purposes of calculating interest
        at an annual rate of return equal to the utility's
        weighted average cost of capital approved by the
        Commission for the prior rate year, including a revenue
        conversion factor calculated to recover or refund all
        additional income taxes that may be payable or
        receivable as a result of that return. Each
        reconciliation shall be certified by the participating
        utility in the same manner that FERC Form 1 is
        certified. The filing shall also include the charge or
        credit, if any, resulting from the calculation
        required by subparagraph (E) of paragraph (2) of this
        subsection (d).
            Notwithstanding any other provision of law to the
        contrary, the intent of the reconciliation is to
        ultimately reconcile both the revenue requirement
        reflected in rates for each calendar year, beginning
        with the calendar year in which the utility files its
        energy efficiency formula rate tariff under paragraph
        (2) of this subsection (d), with what the revenue
        requirement determined using a year-end rate base for
        the applicable calendar year would have been had the
        actual cost information for the applicable calendar
        year been available at the filing date.
            For purposes of this Section, "FERC Form 1" means
        the Annual Report of Major Electric Utilities,
        Licensees and Others that electric utilities are
        required to file with the Federal Energy Regulatory
        Commission under the Federal Power Act, Sections 3,
        4(a), 304 and 209, modified as necessary to be
        consistent with 83 Ill. Admin. Code Part 415 as of May
        1, 2011. Nothing in this Section is intended to allow
        costs that are not otherwise recoverable to be
        recoverable by virtue of inclusion in FERC Form 1.
            (B) The new charges shall take effect beginning on
        the first billing day of the following January billing
        period and remain in effect through the last billing
        day of the next December billing period regardless of
        whether the Commission enters upon a hearing under this
        paragraph (3).
            (C) The filing shall include relevant and
        necessary data and documentation for the applicable
        rate year. Normalization adjustments shall not be
        required.
        Within 45 days after the utility files its annual
    update of cost inputs to the energy efficiency formula
    rate, the Commission shall with reasonable notice,
    initiate a proceeding concerning whether the projected
    costs to be incurred by the utility and recovered during
    the applicable rate year, and that are reflected in the
    inputs to the energy efficiency formula rate, are
    consistent with the utility's approved multi-year plan
    under subsections (f) and (g) of this Section and whether
    the costs incurred by the utility during the prior rate
    year were prudent and reasonable. The Commission shall also
    have the authority to investigate the information and data
    described in paragraph (9) of subsection (g) of this
    Section, including the proposed adjustment to the
    utility's return on equity component of its weighted
    average cost of capital. During the course of the
    proceeding, each objection shall be stated with
    particularity and evidence provided in support thereof,
    after which the utility shall have the opportunity to rebut
    the evidence. Discovery shall be allowed consistent with
    the Commission's Rules of Practice, which Rules of Practice
    shall be enforced by the Commission or the assigned
    administrative law judge hearing examiner. The Commission
    shall apply the same evidentiary standards, including, but
    not limited to, those concerning the prudence and
    reasonableness of the costs incurred by the utility, during
    the proceeding as it would apply in a proceeding to review
    a filing for a general increase in rates under Article IX
    of this Act. The Commission shall not, however, have the
    authority in a proceeding under this paragraph (3) to
    consider or order any changes to the structure or protocols
    of the energy efficiency formula rate approved under
    paragraph (2) of this subsection (d). In a proceeding under
    this paragraph (3), the Commission shall enter its order no
    later than the earlier of 195 days after the utility's
    filing of its annual update of cost inputs to the energy
    efficiency formula rate or December 15. The utility's
    proposed return on equity calculation, as described in
    paragraphs (7) through (9) of subsection (g) of this
    Section, shall be deemed the final, approved calculation on
    December 15 of the year in which it is filed unless the
    Commission enters an order on or before December 15, after
    notice and hearing, that modifies such calculation
    consistent with this Section. The Commission's
    determinations of the prudence and reasonableness of the
    costs incurred, and determination of such return on equity
    calculation, for the applicable calendar year shall be
    final upon entry of the Commission's order and shall not be
    subject to reopening, reexamination, or collateral attack
    in any other Commission proceeding, case, docket, order,
    rule, or regulation; however, nothing in this paragraph (3)
    shall prohibit a party from petitioning the Commission to
    rehear or appeal to the courts the order under the
    provisions of this Act.
    (e) Beginning on the effective date of this amendatory Act
of the 99th General Assembly, a utility subject to the
requirements of this Section may elect to defer, as a
regulatory asset, up to the full amount of its expenditures
incurred under this Section for each annual period, including,
but not limited to, any expenditures incurred above the funding
level set by subsection (f) of this Section for a given year.
The total expenditures deferred as a regulatory asset in a
given year shall be amortized and recovered over a period that
is equal to the weighted average of the energy efficiency
measure lives implemented for that year that are reflected in
the regulatory asset. The unamortized balance shall be
recognized as of December 31 for a given year. The utility
shall also earn a return on the total of the unamortized
balances of all of the energy efficiency regulatory assets,
less any deferred taxes related to those unamortized balances,
at an annual rate equal to the utility's weighted average cost
of capital that includes, based on a year-end capital
structure, the utility's actual cost of debt for the applicable
calendar year and a cost of equity, which shall be calculated
as the sum of the (i) the average for the applicable calendar
year of the monthly average yields of 30-year U.S. Treasury
bonds published by the Board of Governors of the Federal
Reserve System in its weekly H.15 Statistical Release or
successor publication; and (ii) 580 basis points, including a
revenue conversion factor calculated to recover or refund all
additional income taxes that may be payable or receivable as a
result of that return. Capital investment costs shall be
depreciated and recovered over their useful lives consistent
with generally accepted accounting principles. The weighted
average cost of capital shall be applied to the capital
investment cost balance, less any accumulated depreciation and
accumulated deferred income taxes, as of December 31 for a
given year.
    When an electric utility creates a regulatory asset under
the provisions of this Section, the costs are recovered over a
period during which customers also receive a benefit which is
in the public interest. Accordingly, it is the intent of the
General Assembly that an electric utility that elects to create
a regulatory asset under the provisions of this Section shall
recover all of the associated costs as set forth in this
Section. After the Commission has approved the prudence and
reasonableness of the costs that comprise the regulatory asset,
the electric utility shall be permitted to recover all such
costs, and the value and recoverability through rates of the
associated regulatory asset shall not be limited, altered,
impaired, or reduced.
    (f) Beginning in 2017, each electric utility shall file an
energy efficiency plan with the Commission to meet the energy
efficiency standards for the next applicable multi-year period
beginning January 1 of the year following the filing, according
to the schedule set forth in paragraphs (1) through (3) of this
subsection (f). If a utility does not file such a plan on or
before the applicable filing deadline for the plan, it shall
face a penalty of $100,000 per day until the plan is filed.
        (1) No later than 30 days after the effective date of
    this amendatory Act of the 99th General Assembly or May 1,
    2017, whichever is later, each electric utility shall file
    a 4-year energy efficiency plan commencing on January 1,
    2018 that is designed to achieve the cumulative persisting
    annual savings goals specified in paragraphs (1) through
    (4) of subsection (b-5) of this Section or in paragraphs
    (1) through (4) of subsection (b-15) of this Section, as
    applicable, through implementation of energy efficiency
    measures; however, the goals may be reduced if the
    utility's expenditures are limited pursuant to subsection
    (m) of this Section or, for a utility that serves less than
    3,000,000 retail customers, if each of the following
    conditions are met: (A) the plan's analysis and forecasts
    of the utility's ability to acquire energy savings
    demonstrate that achievement of such goals is not cost
    effective; and (B) the amount of energy savings achieved by
    the utility as determined by the independent evaluator for
    the most recent year for which savings have been evaluated
    preceding the plan filing was less than the average annual
    amount of savings required to achieve the goals for the
    applicable 4-year plan period. Except as provided in
    subsection (m) of this Section, annual increases in
    cumulative persisting annual savings goals during the
    applicable 4-year plan period shall not be reduced to
    amounts that are less than the maximum amount of cumulative
    persisting annual savings that is forecast to be
    cost-effectively achievable during the 4-year plan period.
    The Commission shall review any proposed goal reduction as
    part of its review and approval of the utility's proposed
    plan.
        (2) No later than March 1, 2021, each electric utility
    shall file a 4-year energy efficiency plan commencing on
    January 1, 2022 that is designed to achieve the cumulative
    persisting annual savings goals specified in paragraphs
    (5) through (8) of subsection (b-5) of this Section or in
    paragraphs (5) through (8) of subsection (b-15) of this
    Section, as applicable, through implementation of energy
    efficiency measures; however, the goals may be reduced if
    the utility's expenditures are limited pursuant to
    subsection (m) of this Section or, each of the following
    conditions are met: (A) the plan's analysis and forecasts
    of the utility's ability to acquire energy savings
    demonstrate that achievement of such goals is not cost
    effective; and (B) the amount of energy savings achieved by
    the utility as determined by the independent evaluator for
    the most recent year for which savings have been evaluated
    preceding the plan filing was less than the average annual
    amount of savings required to achieve the goals for the
    applicable 4-year plan period. Except as provided in
    subsection (m) of this Section, annual increases in
    cumulative persisting annual savings goals during the
    applicable 4-year plan period shall not be reduced to
    amounts that are less than the maximum amount of cumulative
    persisting annual savings that is forecast to be
    cost-effectively achievable during the 4-year plan period.
    The Commission shall review any proposed goal reduction as
    part of its review and approval of the utility's proposed
    plan.
        (3) No later than March 1, 2025, each electric utility
    shall file a 5-year energy efficiency plan commencing on
    January 1, 2026 that is designed to achieve the cumulative
    persisting annual savings goals specified in paragraphs
    (9) through (13) of subsection (b-5) of this Section or in
    paragraphs (9) through (13) of subsection (b-15) of this
    Section, as applicable, through implementation of energy
    efficiency measures; however, the goals may be reduced if
    the utility's expenditures are limited pursuant to
    subsection (m) of this Section or, each of the following
    conditions are met: (A) the plan's analysis and forecasts
    of the utility's ability to acquire energy savings
    demonstrate that achievement of such goals is not cost
    effective; and (B) the amount of energy savings achieved by
    the utility as determined by the independent evaluator for
    the most recent year for which savings have been evaluated
    preceding the plan filing was less than the average annual
    amount of savings required to achieve the goals for the
    applicable 5-year plan period. Except as provided in
    subsection (m) of this Section, annual increases in
    cumulative persisting annual savings goals during the
    applicable 5-year plan period shall not be reduced to
    amounts that are less than the maximum amount of cumulative
    persisting annual savings that is forecast to be
    cost-effectively achievable during the 5-year plan period.
    The Commission shall review any proposed goal reduction as
    part of its review and approval of the utility's proposed
    plan.
    Each utility's plan shall set forth the utility's proposals
to meet the energy efficiency standards identified in
subsection (b-5) or (b-15), as applicable and as such standards
may have been modified under this subsection (f), taking into
account the unique circumstances of the utility's service
territory. For those plans commencing on January 1, 2018, the
Commission shall seek public comment on the utility's plan and
shall issue an order approving or disapproving each plan no
later than August 31, 2017, or 105 days after the effective
date of this amendatory Act of the 99th General Assembly,
whichever is later. For those plans commencing after December
31, 2021, the Commission shall seek public comment on the
utility's plan and shall issue an order approving or
disapproving each plan within 6 months after its submission. If
the Commission disapproves a plan, the Commission shall, within
30 days, describe in detail the reasons for the disapproval and
describe a path by which the utility may file a revised draft
of the plan to address the Commission's concerns
satisfactorily. If the utility does not refile with the
Commission within 60 days, the utility shall be subject to
penalties at a rate of $100,000 per day until the plan is
filed. This process shall continue, and penalties shall accrue,
until the utility has successfully filed a portfolio of energy
efficiency and demand-response measures. Penalties shall be
deposited into the Energy Efficiency Trust Fund.
    (g) In submitting proposed plans and funding levels under
subsection (f) of this Section to meet the savings goals
identified in subsection (b-5) or (b-15) of this Section, as
applicable, the utility shall:
        (1) Demonstrate that its proposed energy efficiency
    measures will achieve the applicable requirements that are
    identified in subsection (b-5) or (b-15) of this Section,
    as modified by subsection (f) of this Section.
        (2) Present specific proposals to implement new
    building and appliance standards that have been placed into
    effect.
        (3) Demonstrate that its overall portfolio of
    measures, not including low-income programs described in
    subsection (c) of this Section, is cost-effective using the
    total resource cost test or complies with paragraphs (1)
    through (3) of subsection (f) of this Section and
    represents a diverse cross-section of opportunities for
    customers of all rate classes, other than those customers
    described in subsection (l) of this Section, to participate
    in the programs. Individual measures need not be cost
    effective.
        (4) Present a third-party energy efficiency
    implementation program subject to the following
    requirements:
            (A) beginning with the year commencing January 1,
        2019, electric utilities that serve more than
        3,000,000 retail customers in the State shall fund
        third-party energy efficiency programs in an amount
        that is no less than $25,000,000 per year, and electric
        utilities that serve less than 3,000,000 retail
        customers but more than 500,000 retail customers in the
        State shall fund third-party energy efficiency
        programs in an amount that is no less than $8,350,000
        per year;
            (B) during 2018, the utility shall conduct a
        solicitation process for purposes of requesting
        proposals from third-party vendors for those
        third-party energy efficiency programs to be offered
        during one or more of the years commencing January 1,
        2019, January 1, 2020, and January 1, 2021; for those
        multi-year plans commencing on January 1, 2022 and
        January 1, 2026, the utility shall conduct a
        solicitation process during 2021 and 2025,
        respectively, for purposes of requesting proposals
        from third-party vendors for those third-party energy
        efficiency programs to be offered during one or more
        years of the respective multi-year plan period; for
        each solicitation process, the utility shall identify
        the sector, technology, or geographical area for which
        it is seeking requests for proposals;
            (C) the utility shall propose the bidder
        qualifications, performance measurement process, and
        contract structure, which must include a performance
        payment mechanism and general terms and conditions;
        the proposed qualifications, process, and structure
        shall be subject to Commission approval; and
            (D) the utility shall retain an independent third
        party to score the proposals received through the
        solicitation process described in this paragraph (4),
        rank them according to their cost per lifetime
        kilowatt-hours saved, and assemble the portfolio of
        third-party programs.
        The electric utility shall recover all costs
    associated with Commission-approved, third-party
    administered programs regardless of the success of those
    programs.
        (4.5)Implement cost-effective demand-response measures
    to reduce peak demand by 0.1% over the prior year for
    eligible retail customers, as defined in Section 16-111.5
    of this Act, and for customers that elect hourly service
    from the utility pursuant to Section 16-107 of this Act,
    provided those customers have not been declared
    competitive. This requirement continues until December 31,
    2026.
        (5) Include a proposed or revised cost-recovery tariff
    mechanism, as provided for under subsection (d) of this
    Section, to fund the proposed energy efficiency and
    demand-response measures and to ensure the recovery of the
    prudently and reasonably incurred costs of
    Commission-approved programs.
        (6) Provide for an annual independent evaluation of the
    performance of the cost-effectiveness of the utility's
    portfolio of measures, as well as a full review of the
    multi-year plan results of the broader net program impacts
    and, to the extent practical, for adjustment of the
    measures on a going-forward basis as a result of the
    evaluations. The resources dedicated to evaluation shall
    not exceed 3% of portfolio resources in any given year.
        (7) For electric utilities that serve more than
    3,000,000 retail customers in the State:
            (A) Through December 31, 2025, provide for an
        adjustment to the return on equity component of the
        utility's weighted average cost of capital calculated
        under subsection (d) of this Section:
                (i) If the independent evaluator determines
            that the utility achieved a cumulative persisting
            annual savings that is less than the applicable
            annual incremental goal, then the return on equity
            component shall be reduced by a maximum of 200
            basis points in the event that the utility achieved
            no more than 75% of such goal. If the utility
            achieved more than 75% of the applicable annual
            incremental goal but less than 100% of such goal,
            then the return on equity component shall be
            reduced by 8 basis points for each percent by which
            the utility failed to achieve the goal.
                (ii) If the independent evaluator determines
            that the utility achieved a cumulative persisting
            annual savings that is more than the applicable
            annual incremental goal, then the return on equity
            component shall be increased by a maximum of 200
            basis points in the event that the utility achieved
            at least 125% of such goal. If the utility achieved
            more than 100% of the applicable annual
            incremental goal but less than 125% of such goal,
            then the return on equity component shall be
            increased by 8 basis points for each percent by
            which the utility achieved above the goal. If the
            applicable annual incremental goal was reduced
            under paragraphs (1) or (2) of subsection (f) of
            this Section, then the following adjustments shall
            be made to the calculations described in this item
            (ii):
                    (aa) the calculation for determining
                achievement that is at least 125% of the
                applicable annual incremental goal shall use
                the unreduced applicable annual incremental
                goal to set the value; and
                    (bb) the calculation for determining
                achievement that is less than 125% but more
                than 100% of the applicable annual incremental
                goal shall use the reduced applicable annual
                incremental goal to set the value for 100%
                achievement of the goal and shall use the
                unreduced goal to set the value for 125%
                achievement. The 8 basis point value shall also
                be modified, as necessary, so that the 200
                basis points are evenly apportioned among each
                percentage point value between 100% and 125%
                achievement.
            (B) For the period January 1, 2026 through December
        31, 2030, provide for an adjustment to the return on
        equity component of the utility's weighted average
        cost of capital calculated under subsection (d) of this
        Section:
                (i) If the independent evaluator determines
            that the utility achieved a cumulative persisting
            annual savings that is less than the applicable
            annual incremental goal, then the return on equity
            component shall be reduced by a maximum of 200
            basis points in the event that the utility achieved
            no more than 66% of such goal. If the utility
            achieved more than 66% of the applicable annual
            incremental goal but less than 100% of such goal,
            then the return on equity component shall be
            reduced by 6 basis points for each percent by which
            the utility failed to achieve the goal.
                (ii) If the independent evaluator determines
            that the utility achieved a cumulative persisting
            annual savings that is more than the applicable
            annual incremental goal, then the return on equity
            component shall be increased by a maximum of 200
            basis points in the event that the utility achieved
            at least 134% of such goal. If the utility achieved
            more than 100% of the applicable annual
            incremental goal but less than 134% of such goal,
            then the return on equity component shall be
            increased by 6 basis points for each percent by
            which the utility achieved above the goal. If the
            applicable annual incremental goal was reduced
            under paragraph (3) of subsection (f) of this
            Section, then the following adjustments shall be
            made to the calculations described in this item
            (ii):
                    (aa) the calculation for determining
                achievement that is at least 134% of the
                applicable annual incremental goal shall use
                the unreduced applicable annual incremental
                goal to set the value; and
                    (bb) the calculation for determining
                achievement that is less than 134% but more
                than 100% of the applicable annual incremental
                goal shall use the reduced applicable annual
                incremental goal to set the value for 100%
                achievement of the goal and shall use the
                unreduced goal to set the value for 134%
                achievement. The 6 basis point value shall also
                be modified, as necessary, so that the 200
                basis points are evenly apportioned among each
                percentage point value between 100% and 134%
                achievement.
        (7.5) For purposes of this Section, the term
    "applicable annual incremental goal" means the difference
    between the cumulative persisting annual savings goal for
    the calendar year that is the subject of the independent
    evaluator's determination and the cumulative persisting
    annual savings goal for the immediately preceding calendar
    year, as such goals are defined in subsections (b-5) and
    (b-15) of this Section and as these goals may have been
    modified as provided for under subsection (b-20) and
    paragraphs (1) through (3) of subsection (f) of this
    Section. Under subsections (b), (b-5), (b-10), and (b-15)
    of this Section, a utility must first replace energy
    savings from measures that have reached the end of their
    measure lives and would otherwise have to be replaced to
    meet the applicable savings goals identified in subsection
    (b-5) or (b-15) of this Section before any progress towards
    achievement of its applicable annual incremental goal may
    be counted. Notwithstanding anything else set forth in this
    Section, the difference between the actual annual
    incremental savings achieved in any given year, including
    the replacement of energy savings from measures that have
    expired, and the applicable annual incremental goal shall
    not affect adjustments to the return on equity for
    subsequent calendar years under this subsection (g).
        (8) For electric utilities that serve less than
    3,000,000 retail customers but more than 500,000 retail
    customers in the State:
            (A) Through December 31, 2025, the applicable
        annual incremental goal shall be compared to the annual
        incremental savings as determined by the independent
        evaluator.
                (i) The return on equity component shall be
            reduced by 8 basis points for each percent by which
            the utility did not achieve 84.4% of the applicable
            annual incremental goal.
                (ii) The return on equity component shall be
            increased by 8 basis points for each percent by
            which the utility exceeded 100% of the applicable
            annual incremental goal.
                (iii) The return on equity component shall not
            be increased or decreased if the annual
            incremental savings as determined by the
            independent evaluator is greater than 84.4% of the
            applicable annual incremental goal and less than
            100% of the applicable annual incremental goal.
                (iv) The return on equity component shall not
            be increased or decreased by an amount greater than
            200 basis points pursuant to this subparagraph
            (A).
            (B) For the period of January 1, 2026 through
        December 31, 2030, the applicable annual incremental
        goal shall be compared to the annual incremental
        savings as determined by the independent evaluator.
                (i) The return on equity component shall be
            reduced by 6 basis points for each percent by which
            the utility did not achieve 100% of the applicable
            annual incremental goal.
                (ii) The return on equity component shall be
            increased by 6 basis points for each percent by
            which the utility exceeded 100% of the applicable
            annual incremental goal.
                (iii) The return on equity component shall not
            be increased or decreased by an amount greater than
            200 basis points pursuant to this subparagraph
            (B).
            (C) If the applicable annual incremental goal was
        reduced under paragraphs (1), (2) or (3) of subsection
        (f) of this Section, then the following adjustments
        shall be made to the calculations described in
        subparagraphs (A) and (B) of this paragraph (8):
                (i) The calculation for determining
            achievement that is at least 125% or 134%, as
            applicable, of the applicable annual incremental
            goal shall use the unreduced applicable annual
            incremental goal to set the value.
                (ii) For the period through December 31, 2025,
            the calculation for determining achievement that
            is less than 125% but more than 100% of the
            applicable annual incremental goal shall use the
            reduced applicable annual incremental goal to set
            the value for 100% achievement of the goal and
            shall use the unreduced goal to set the value for
            125% achievement. The 8 basis point value shall
            also be modified, as necessary, so that the 200
            basis points are evenly apportioned among each
            percentage point value between 100% and 125%
            achievement.
                (iii) For the period of January 1, 2026 through
            December 31, 2030, the calculation for determining
            achievement that is less than 134% but more than
            100% of the applicable annual incremental goal
            shall use the reduced applicable annual
            incremental goal to set the value for 100%
            achievement of the goal and shall use the unreduced
            goal to set the value for 125% achievement. The 6
            basis point value shall also be modified, as
            necessary, so that the 200 basis points are evenly
            apportioned among each percentage point value
            between 100% and 134% achievement.
        (9) The utility shall submit the energy savings data to
    the independent evaluator no later than 30 days after the
    close of the plan year. The independent evaluator shall
    determine the cumulative persisting annual savings for a
    given plan year no later than 120 days after the close of
    the plan year. The utility shall submit an informational
    filing to the Commission no later than 160 days after the
    close of the plan year that attaches the independent
    evaluator's final report identifying the cumulative
    persisting annual savings for the year and calculates,
    under paragraph (7) or (8) of this subsection (g), as
    applicable, any resulting change to the utility's return on
    equity component of the weighted average cost of capital
    applicable to the next plan year beginning with the January
    monthly billing period and extending through the December
    monthly billing period. However, if the utility recovers
    the costs incurred under this Section under paragraphs (2)
    and (3) of subsection (d) of this Section, then the utility
    shall not be required to submit such informational filing,
    and shall instead submit the information that would
    otherwise be included in the informational filing as part
    of its filing under paragraph (3) of such subsection (d)
    that is due on or before June 1 of each year.
        For those utilities that must submit the informational
    filing, the Commission may, on its own motion or by
    petition, initiate an investigation of such filing,
    provided, however, that the utility's proposed return on
    equity calculation shall be deemed the final, approved
    calculation on December 15 of the year in which it is filed
    unless the Commission enters an order on or before December
    15, after notice and hearing, that modifies such
    calculation consistent with this Section.
        The adjustments to the return on equity component
    described in paragraphs (7) and (8) of this subsection (g)
    shall be applied as described in such paragraphs through a
    separate tariff mechanism, which shall be filed by the
    utility under subsections (f) and (g) of this Section.
    (h) No more than 6% of energy efficiency and
demand-response program revenue may be allocated for research,
development, or pilot deployment of new equipment or measures.
    (i) When practicable, electric utilities shall incorporate
advanced metering infrastructure data into the planning,
implementation, and evaluation of energy efficiency measures
and programs, subject to the data privacy and confidentiality
protections of applicable law.
    (j) The independent evaluator shall follow the guidelines
and use the savings set forth in Commission-approved energy
efficiency policy manuals and technical reference manuals, as
each may be updated from time to time. Until such time as
measure life values for energy efficiency measures implemented
for low-income households under subsection (c) of this Section
are incorporated into such Commission-approved manuals, the
low-income measures shall have the same measure life values
that are established for same measures implemented in
households that are not low-income households.
    (k) Notwithstanding any provision of law to the contrary,
an electric utility subject to the requirements of this Section
may file a tariff cancelling an automatic adjustment clause
tariff in effect under this Section or Section 8-103, which
shall take effect no later than one business day after the date
such tariff is filed. Thereafter, the utility shall be
authorized to defer and recover its expenditures incurred under
this Section through a new tariff authorized under subsection
(d) of this Section or in the utility's next rate case under
Article IX or Section 16-108.5 of this Act, with interest at an
annual rate equal to the utility's weighted average cost of
capital as approved by the Commission in such case. If the
utility elects to file a new tariff under subsection (d) of
this Section, the utility may file the tariff within 10 days
after the effective date of this amendatory Act of the 99th
General Assembly, and the cost inputs to such tariff shall be
based on the projected costs to be incurred by the utility
during the calendar year in which the new tariff is filed and
that were not recovered under the tariff that was cancelled as
provided for in this subsection. Such costs shall include those
incurred or to be incurred by the utility under its multi-year
plan approved under subsections (f) and (g) of this Section,
including, but not limited to, projected capital investment
costs and projected regulatory asset balances with
correspondingly updated depreciation and amortization reserves
and expense. The Commission shall, after notice and hearing,
approve, or approve with modification, such tariff and cost
inputs no later than 75 days after the utility filed the
tariff, provided that such approval, or approval with
modification, shall be consistent with the provisions of this
Section to the extent they do not conflict with this subsection
(k). The tariff approved by the Commission shall take effect no
later than 5 days after the Commission enters its order
approving the tariff.
    No later than 60 days after the effective date of the
tariff cancelling the utility's automatic adjustment clause
tariff, the utility shall file a reconciliation that reconciles
the moneys collected under its automatic adjustment clause
tariff with the costs incurred during the period beginning June
1, 2016 and ending on the date that the electric utility's
automatic adjustment clause tariff was cancelled. In the event
the reconciliation reflects an under-collection, the utility
shall recover the costs as specified in this subsection (k). If
the reconciliation reflects an over-collection, the utility
shall apply the amount of such over-collection as a one-time
credit to retail customers' bills.
    (l) For the calendar years covered by a multi-year plan
commencing after December 31, 2017, subsections (a) through (j)
of this Section do not apply to any retail customers of an
electric utility that serves more than 3,000,000 retail
customers in the State and whose total highest 30 minute demand
was more than 10,000 kilowatts, or any retail customers of an
electric utility that serves less than 3,000,000 retail
customers but more than 500,000 retail customers in the State
and whose total highest 15 minute demand was more than 10,000
kilowatts. For purposes of this subsection (l), "retail
customer" has the meaning set forth in Section 16-102 of this
Act. A determination of whether this subsection is applicable
to a customer shall be made for each multi-year plan beginning
after December 31, 2017. The criteria for determining whether
this subsection (l) is applicable to a retail customer shall be
based on the 12 consecutive billing periods prior to the start
of the first year of each such multi-year plan.
    (m) Notwithstanding the requirements of this Section, as
part of a proceeding to approve a multi-year plan under
subsections (f) and (g) of this Section, the Commission shall
reduce the amount of energy efficiency measures implemented for
any single year, and whose costs are recovered under subsection
(d) of this Section, by an amount necessary to limit the
estimated average net increase due to the cost of the measures
to no more than
        (1) 3.5% for the each of the 4 years beginning January
    1, 2018,
        (2) 3.75% for each of the 4 years beginning January 1,
    2022, and
        (3) 4% for each of the 5 years beginning January 1,
    2026,
of the average amount paid per kilowatthour by residential
eligible retail customers during calendar year 2015. To
determine the total amount that may be spent by an electric
utility in any single year, the applicable percentage of the
average amount paid per kilowatthour shall be multiplied by the
total amount of energy delivered by such electric utility in
the calendar year 2015, adjusted to reflect the proportion of
the utility's load attributable to customers who are exempt
from subsections (a) through (j) of this Section under
subsection (l) of this Section. For purposes of this subsection
(m), the amount paid per kilowatthour includes, without
limitation, estimated amounts paid for supply, transmission,
distribution, surcharges, and add-on taxes. For purposes of
this Section, "eligible retail customers" shall have the
meaning set forth in Section 16-111.5 of this Act. Once the
Commission has approved a plan under subsections (f) and (g) of
this Section, no subsequent rate impact determinations shall be
made.
(Source: P.A. 99-906, eff. 6-1-17.)
 
    (220 ILCS 5/8-507)  (from Ch. 111 2/3, par. 8-507)
    Sec. 8-507. Every public utility shall file with the
Commission, under such rules and regulations as the Commission
may prescribe, a report of every accident occurring to or on
its plant, equipment, or other property of such a nature to
endanger the safety, health or property of any person. Whenever
any accident occasions the loss of life or limb to any person,
such public utility shall immediately give notice to the
Commission of the fact by the speediest means of communication,
whether telephone, electronic notification, telegraph or post.
    The Commission shall investigate all accidents occurring
within this State upon the property of any public utility or
directly or indirectly arising from or connected with its
maintenance or operation, resulting in loss of life or injury
to person or property and requiring, in the judgment of the
Commission, investigation by it, and shall have the power to
make such order or recommendation with respect thereto as in
its judgment may seem just and reasonable. Neither the order or
recommendation of the Commission nor any accident report filed
with the Commission shall be admitted in evidence in any action
for damages based on or arising out of the loss of life, or
injury to person or property, in this Section referred to.
(Source: P.A. 84-617; 84-1025.)
 
    (220 ILCS 5/8-508)  (from Ch. 111 2/3, par. 8-508)
    Sec. 8-508. No Except as provided in Section 12-306, no
public utility shall abandon or discontinue any service or, in
the case of an electric utility, make any modification as
herein defined, without first having secured the approval of
the Commission, except in case of assignment, transfer, lease
or sale of the whole or any part of its franchises, licenses,
permits, plant, equipment, business, or other property to any
political subdivision or municipal corporation of this State.
In the case of the assignment, transfer, lease or sale, in
whole or in part, of any franchise, license, permit, plant,
equipment, business or other property to any political
subdivision or municipal corporation of this State, the public
utility shall notify the Commission of such transaction.
"Modification" as used in this Section means any change of fuel
type which would result in an annual net systemwide decreased
use of 10% or more of coal mined in Illinois. The Commission
shall conduct public hearings on any request by a public
utility to make such modification and shall accept testimony
from interested parties qualified to provide evidence
regarding the cost or cost savings of the proposed modification
as compared with the cost or cost savings of alternative
actions by the utility and shall consider the impact on
employment related to the production of coal in Illinois. Such
hearings shall be commenced no later than 30 days after the
filing of the request by the public utility and shall be
concluded within 120 days from the date of filing. The
Commission must issue its final determination within 60 days of
the conclusion of the hearing. In making its determination the
Commission shall attach primary weight to the cost or cost
savings to the customers of the utility. In granting its
approval, the Commission may impose such terms, conditions or
requirements as in its judgment are necessary to protect the
public interest. Provided, however, that any public utility
abandoning or discontinuing service in pursuance of authority
granted by the Commission shall be deemed to have waived any
and all objections to the terms, conditions or requirements
imposed by the Commission in that regard. Provided, further,
that nothing in this Section shall be construed to limit the
right of a public utility to discontinue service to individual
patrons in accordance with the effective rules, regulations,
and practices of such public utility.
    The Commission, after a hearing upon its own motion or upon
petition of any public utility, shall have power by order to
authorize or require any public utility to curtail or
discontinue service to individual customers or classes
thereof, or for specific purposes or uses, and otherwise to
regulate the furnishing of service, provided that preference
for service shall be given to those customers serving essential
human needs and governmental agencies performing law
enforcement functions, whenever and to the extent such action
is required by the convenience and necessity of the public
during time of war, invasion, insurrection or martial law, or
by reason of a catastrophe, emergency, or shortage of fuel,
supplies or equipment employed or service furnished by such
public utility; provided, however, that an interim order,
effective for a period not exceeding 15 days, may be made
without a hearing if the circumstances do not reasonably permit
the holding of a hearing. Orders for the curtailment or
discontinuance of service pursuant to this paragraph shall not
be continued in effect for any period beyond that which is
reasonably necessary, shall be vacated by the Commission as
soon as public convenience and necessity permit, and shall
include such arrangements for substitute service in the interim
as the Commission in its judgment may impose. Every such order,
during the period it is in effect and for such further period,
if any, as the Commission may provide, shall have the effect of
suspending the operation of all prior orders or parts of orders
of the Commission inconsistent therewith. No public utility
shall be held liable for any damage resulting from any action
taken, or any omission to act, pursuant to or in compliance
with any order under this paragraph for the curtailment or
discontinuance of service unless such order was procured by the
fraud of the public utility.
(Source: P.A. 87-173.)
 
    (220 ILCS 5/8-509)  (from Ch. 111 2/3, par. 8-509)
    Sec. 8-509. When necessary for the construction of any
alterations, additions, extensions or improvements ordered or
authorized under Section 8-406.1 or , 8-503, or 12-218 of this
Act, any public utility may enter upon, take or damage private
property in the manner provided for by the law of eminent
domain. If a public utility seeks relief under this Section in
the same proceeding in which it seeks a certificate of public
convenience and necessity under Section 8-406.1 of this Act,
the Commission shall enter its order under this Section either
as part of the Section 8-406.1 order or at the same time it
enters the Section 8-406.1 order. If a public utility seeks
relief under this Section after the Commission enters its order
in the Section 8-406.1 proceeding, the Commission shall issue
its order under this Section within 45 days after the utility
files its petition under this Section.
    This Section applies to the exercise of eminent domain
powers by telephone companies or telecommunications carriers
only when the facilities to be constructed are intended to be
used in whole or in part for providing one or more intrastate
telecommunications services classified as "noncompetitive"
under Section 13-502 in a tariff filed by the condemnor. The
exercise of eminent domain powers by telephone companies or
telecommunications carriers in all other cases shall be
governed solely by "An Act relating to the powers, duties and
property of telephone companies", approved May 16, 1903, as now
or hereafter amended.
(Source: P.A. 96-1348, eff. 7-28-10.)
 
    (220 ILCS 5/9-102.1)
    Sec. 9-102.1. Negotiated rates.
    (a) Notwithstanding anything to the contrary in any other
Section of Article IX of this Act, the Commission may approve
one or more rate schedules filed by a public utility that
enable the public utility to provide service to customers under
contracts that are treated as proprietary and confidential by
the Commission notwithstanding the filing thereof. Service
under the contracts shall be provided on such terms and for
such rates or charges as the public utility and the customer
agree upon, without regard to any rate schedules the public
utility may have filed with the Commission under any other
Section of Article IX of this Act. The contracts shall be filed
with the Commission, notwithstanding anything to the contrary
in any schedule referred to in subsection (b) of this Section.
For purposes of Section 3-121 of this Act, the amounts
collected under the contracts shall be treated as having been
collected under rates that the public utility is required to
file under Section 9-102 of this Act.
    (b) Each schedule described in subsection (a) that became
effective before August 25, 1995, and any contract thereunder,
shall be deemed to have become effective in accordance with its
terms, subject to the provisions of any Commission order that
purported to authorize the schedule.
    (c) In any determination of the rates to be charged by an
electric public utility having contracts in effect pursuant to
schedules filed under this Section or schedules referred to in
subsection (b) of this Section, the revenues received, or to be
received, by the electric public utility under each such
contract shall be deemed to be equal to the revenues, based on
the actual usage of the customer, that would have been, or
would be, received under the lowest rates available under
schedules on file pursuant to Section 9-201, applicable to a
class of consumers that includes the customer, including any
applicable riders or surcharges, plus any revenues that would
have been, or would be required to pay for investment or
expenses incurred by the electric public utility that would not
be incurred if service were provided under such lowest rates.
The cost of capital used to determine rates to be charged by
the electric public utility shall be that which would have
obtained if service were provided under such lowest rates. The
provisions of this subsection (c) shall not apply: (1) in any
determination of the rates to be charged by a gas public
utility, and (2) in any determination of the rates to be
charged by an electric public utility, to contracts in effect
prior to the effective date of this amendatory Act of 1996
pursuant to economic development schedules referred to in
Section 9-241 of this Act, under which the electric public
utility is authorized to provide discounts for new electrical
sales that result from the location of new or expanded
industrial facilities in the electric public utility's service
territory. The preceding sentence shall not be construed to
diminish the Commission's existing authority as of the
effective date of this amendatory Act of 1996 to allocate the
costs of all public utilities equitably, in any determination
of rates, so as to set rates which are just and reasonable.
    (d) Any contract filed pursuant to the provisions of
subsection (a) of this Section shall be accorded proprietary
and confidential treatment by the Commission and otherwise
deemed to be exempt from the requirements of Sections 9-102,
9-103, 9-104, 9-201, 9-240, 9-241, and 9-243, except to the
extent the Commission may, in its discretion, order otherwise.
The Commission shall permit any statutory consumer protection
agency to have access to any such contract, provided that: (i)
the agency, and each individual that will have access on behalf
of the agency, agree in writing to keep such contract
confidential, such agreement to be in a form established by the
Commission; and (ii) access is limited to full-time employees
of the agency and such other persons as are acceptable to the
public utility or, if the agency and the public utility are
unable to agree, are determined to be acceptable by the
Commission. "Statutory consumer protection agency" means any
office, corporation, or other agency created by Article XI of
this Act or any other Illinois statute as of the effective date
of this amendatory Act of 1996 that has an express statutory
duty to represent the interest of public utility customers, any
such agency subsequently created by act of the General Assembly
that expressly authorizes the agency to access the information
described in this subsection, or the Attorney General of the
State of Illinois.
    (e) Nothing in this Section shall be construed to give a
public utility the authority to provide electric or natural gas
service to a customer the public utility is not otherwise
lawfully entitled to serve. Nothing in this Section shall be
construed to affect in any way the service rights of electric
suppliers as granted under the Electric Supplier Act.
    (f) The provisions of subsection (b) of this Section
9-102.1 are intended to be severable from the remaining
provisions of this Act; and therefore, no determination of the
validity of the provisions of subsection (b) shall affect the
validity of the remaining provisions of this Section 9-102.1.
    (g) After January 1, 2001, no contract for electric service
may be entered into under any schedule filed pursuant to the
provisions of subsection (a) of this Section or under any
schedule referred to in subsection (b) of this Section. The
foregoing provision shall not affect any contract entered into
prior to January 1, 2001.
    (h) Nothing contained in this Section shall be construed as
preventing any customer or other appropriate party from filing
a complaint or otherwise requesting that the Commission
investigate the reasonableness of the terms and conditions of
any schedule filed under this Section or referred to in
subsection (b) of this Section. Nothing contained in this
Section shall be construed as affecting the right of any
customer or public utility to enter into and enforce any
contract providing for the amounts to be charged for service
where the contract is or has been filed pursuant to any other
Section of this Act. Nothing contained in this Section shall be
construed to limit any Commission authority to authorize a
public utility to engage in experimental programs relating to
competition, including direct access programs.
(Source: P.A. 89-600, eff. 8-2-96.)
 
    (220 ILCS 5/9-201)  (from Ch. 111 2/3, par. 9-201)
    Sec. 9-201. (a) Unless the Commission otherwise orders, and
except as otherwise provided in this Section, no change shall
be made by any public utility in any rate or other charge or
classification, or in any rule, regulation, practice or
contract relating to or affecting any rate or other charge,
classification or service, or in any privilege or facility,
except after 45 days' notice to the Commission and to the
public as herein provided. Such notice shall be given by filing
with the Commission and keeping open for public inspection new
schedules or supplements stating plainly the change or changes
to be made in the schedule or schedules then in force, and the
time when the change or changes will go into effect, and by
publication in a newspaper of general circulation or such other
notice to persons affected by such change as may be prescribed
by rule of the Commission. The Commission, for good cause
shown, may allow changes without requiring the 45 days' notice
herein provided for, by an order specifying the changes so to
be made and the time when they shall take effect and the manner
in which they shall be filed and published.
    When any change is proposed in any rate or other charge, or
classification, or in any rule, regulation, practice, or
contract relating to or affecting any rate or other charge,
classification or service, or in any privilege or facility,
such proposed change shall be plainly indicated on the new
schedule filed with the Commission, by some character to be
designated by the Commission, immediately preceding or
following the item.
    When any public utility providing water or sewer service
proposes any change in any rate or other charge, or
classification, or in any rule, regulation, practice, or
contract relating to or affecting any rate or other charge,
classification or service, or in any privilege or facility,
such utility shall, in addition to the other notice
requirements of this Act, provide notice of such change to all
customers potentially affected by including a notice and
description of such change, and of Commission procedures for
intervention, in the first bill sent to each such customer
after the filing of the proposed change.
    For water or sewer utilities with greater than 15,000 total
customers, the following notice requirements are applicable,
in addition to the other notice requirements of this Act:
        (1) As a separate bill insert, an initial notice in the
    first bill sent to all customers potentially affected by
    the proposed change after the filing of the proposed change
    shall include:
            (A) the approximate date when the change or changes
        shall go into effect assuming the Commission utilizes
        the 11-month process as described in this Section;
            (B) a statement indicating that the estimated bill
        impact may vary based on multiple factors, including,
        but not limited to, meter size, usage volume, and the
        fire protection district;
            (C) the water or sewer utility's customer service
        number or other number as may be appropriate where an
        authorized agent of the water or sewer utility can
        explain how the proposed increase might impact an
        individual customer's bill;
            (D) if the proposed change involves a change from a
        flat to a volumetric rate, an explanation of volumetric
        rate;
            (E) a reference to the water or sewer utility's
        website where customers can find tips on water
        conservation; and
            (F) for customers receiving both water and sewer
        service from a utility and if the customer has an
        option to install a separate meter for irrigation to
        mitigate sewer charges, an explanation of the water and
        sewer utility's and the customer's responsibilities
        for installation of a separate meter if such a change
        is approved.
        (2) A second notice to all customers shall be included
    on the first bill after the Commission suspends the tariffs
    initiating the rate case.
        (3) Final notice of such change shall be sent to all
    customers potentially affected by the proposed change by
    including information required under this paragraph (3)
    with the first bill after the effective date of the rates
    approved by the Final Order of the Commission in a rate
    case. The notice shall include the following:
            (A) the date when the change or changes went into
        effect;
            (B) the water or sewer utility's customer service
        number or other number as may be appropriate where an
        authorized agent of the water or sewer utility can
        explain how the proposed increase might impact an
        individual customer's bill;
            (C) an explanation that usage shall now be charged
        at a volumetric rate rather than a flat rate, if
        applicable;
            (D) a reference to the water or sewer utility's
        website where the customer can find tips on water
        conservation; and
            (E) for customers receiving both water and sewer
        service from a utility and if the customer has an
        option to install a separate meter for irrigation to
        mitigate sewer charges, an explanation of the water and
        sewer utility's and the customer's responsibilities
        for installation of a separate meter if such a change
        is approved.
    (b) Whenever there shall be filed with the Commission any
schedule stating an individual or joint rate or other charge,
classification, contract, practice, rule or regulation, the
Commission shall have power, and it is hereby given authority,
either upon complaint or upon its own initiative without
complaint, at once, and if it so orders, without answer or
other formal pleadings by the interested public utility or
utilities, but upon reasonable notice, to enter upon a hearing
concerning the propriety of such rate or other charge,
classification, contract, practice, rule or regulation, and
pending the hearing and decision thereon, such rate or other
charge, classification, contract, practice, rule or regulation
shall not go into effect. The period of suspension of such rate
or other charge, classification, contract, practice, rule or
regulation shall not extend more than 105 days beyond the time
when such rate or other charge, classification, contract,
practice, rule or regulation would otherwise go into effect
unless the Commission, in its discretion, extends the period of
suspension for a further period not exceeding 6 months.
    All rates or other charges, classifications, contracts,
practices, rules or regulations not so suspended shall, on the
expiration of 45 days from the time of filing the same with the
Commission, or of such lesser time as the Commission may grant,
go into effect and be the established and effective rates or
other charges, classifications, contracts, practices, rules
and regulations, subject to the power of the Commission, after
a hearing had on its own motion or upon complaint, as herein
provided, to alter or modify the same.
    Within 30 days after such changes have been authorized by
the Commission, copies of the new or revised schedules shall be
posted or filed in accordance with the terms of Section 9-103
of this Act, in such a manner that all changes shall be plainly
indicated. The Commission shall incorporate into the period of
suspension a review period of 4 business days during which the
Commission may review and determine whether the new or revised
schedules comply with the Commission's decision approving a
change to the public utility's rates. Such review period shall
not extend the suspension period by more than 2 days. Absent
notification to the contrary within the 4 business day period,
the new or revised schedules shall be deemed approved.
    (c) If the Commission enters upon a hearing concerning the
propriety of any proposed rate or other charge, classification,
contract, practice, rule or regulation, the Commission shall
establish the rates or other charges, classifications,
contracts, practices, rules or regulations proposed, in whole
or in part, or others in lieu thereof, which it shall find to
be just and reasonable. In such hearing, the burden of proof to
establish the justness and reasonableness of the proposed rates
or other charges, classifications, contracts, practices, rules
or regulations, in whole and in part, shall be upon the
utility. The utility, the staff of the Commission, the Attorney
General, or any party to a proceeding initiated under this
Section who has been granted intervenor status and submitted a
post-hearing brief must be given the opportunity to present
oral argument, if requested no later than the date for filing
exceptions, on the propriety of any proposed rate or other
charge, classification, contract, practice, rule, or
regulation. No rate or other charge, classification, contract,
practice, rule or regulation shall be found just and reasonable
unless it is consistent with Sections of this Article.
    (d) Except where compliance with Section 8-401 of this Act
is of urgent and immediate concern, no representative of a
public utility may discuss with a commissioner, commissioner's
assistant, or administrative law judge hearing examiner in a
non-public setting a planned filing for a general rate
increase. If a public utility makes a filing under this
Section, then no substantive communication by any such person
with a commissioner, commissioner's assistant, or
administrative law judge hearing examiner concerning the
filing is permitted until a notice of hearing has been issued.
After the notice of hearing has been issued, the only
communications by any such person with a commissioner,
commissioner's assistant, or administrative law judge hearing
examiner concerning the filing permitted are communications
permitted under Section 10-103 of this Act. If any such
communication does occur, then within 5 days of the docket
being initiated all details relating to the communication shall
be placed on the public record of the proceeding. The record
shall include any materials, whether written, recorded,
filmed, or graphic in nature, produced or reproduced on any
media, used in connection with the communication. The record
shall reflect the names of all persons who transmitted,
received, or were otherwise involved in the communication, the
duration of the communication, and whether the communication
occurred in person or by other means. In the case of an oral
communication, the record shall also reflect the location or
locations of all persons involved in the communication and, if
the communication occurred by telephone, the telephone numbers
for the callers and recipients of the communication. A
commissioner, commissioner's assistant, or administrative law
judge hearing examiner who is involved in any such
communication shall be recused from the affected proceeding.
The Commission, or any commissioner or administrative law judge
hearing examiner presiding over the proceeding shall, in the
event of a violation of this Section, take action necessary to
ensure that such violation does not prejudice any party or
adversely affect the fairness of the proceedings including
dismissing the affected proceeding. Nothing in this subsection
(d) is intended to preclude otherwise allowable updates on
issues that may be indirectly related to a general rate case
filing because cost recovery for the underlying activity may be
requested. Such updates may include, without limitation,
issues related to outages and restoration, credit ratings,
security issuances, reliability, Federal Energy Regulatory
Commission matters, Federal Communications Commission matters,
regional reliability organizations, consumer education, or
labor matters, provided that such updates may not include cost
recovery in a planned rate case.
(Source: P.A. 98-191, eff. 1-1-14.)
 
    (220 ILCS 5/9-214)  (from Ch. 111 2/3, par. 9-214)
    Sec. 9-214. (a) As used in this Section:
        (1) "CWIP" means those assets which are recorded as
    construction work in progress on a public utility's books
    of accounts maintained in accordance with the applicable
    regulations and orders of the Commission.
        (2) "Rate base" means the original cost value of the
    property on which a return is allowed.
        (3) "CWIP ratio" means the fraction, expressed as a
    percentage, calculated by dividing the amount of CWIP
    included in a public utility's rate base by the utility's
    rate base.
        (4) "Existing CWIP" means the amount of CWIP included
    in the rate base on December 1, 1983.
    (b) In any determination under Section 9-201, 9-202 or
9-250 of this Act in a proceeding begun on or after December 1,
1983:
        (1) For any public utility with a CWIP ratio on
    December 1, 1983, which is less than 15%, the Commission
    shall not include in the rate base for such public utility
    an amount for CWIP to exceed 80% of existing CWIP for the
    period from December 1, 1983 through December 31, 1984, and
    60% of existing CWIP for the period from January 1, 1985
    through December 31, 1985 and 40% of existing CWIP for the
    period from January 1, 1986 through December 31, 1986, and
    20% of existing CWIP for the period from January 1, 1987
    through December 31, 1987.
        (2) For any public utility with a CWIP ratio on
    December 1, 1983 which is greater than or equal to 15%, the
    Commission shall not include in the rate base for such
    public utility an amount for CWIP in excess of the amount
    of CWIP included in the rate base on December 1, 1983, plus
    50% of the allowed construction expenses incurred by the
    public utility from the date of the most recent rate
    determination by the Commission prior to December 1, 1983.
    (c) The limitations set forth in paragraph (b) of this
Section shall not be interpreted as an expansion of the
Commission's authority to include CWIP in the rate base, but
rather solely as a limitation thereon.
    (d) The Commission shall not include an amount for CWIP in
the rate base for any public utility for the period after
December 31, 1988.
    (e) Notwithstanding the provisions of paragraphs (b) and
(d) of this Section the Commission may include in the rate base
of a public utility an amount for CWIP for a public utility's
investment which is scheduled to be placed in service within 12
months of the date of the rate determination. For the purposes
of this paragraph nuclear generating facilities shall be
considered to be in service upon the commencement of electric
generation.
    (f) Notwithstanding the provisions of paragraph (b) and
(d), the Commission may include in the rate base of a public
utility an amount of CWIP for a public utility's investment in
pollution control devices for the control of sulfur dioxide
emissions and the purification of water and sewage; provided,
however, that upon application by a public utility which is
constructing one or more pollution control devices for the
control of sulfur dioxide emissions as part of a Clean Air Act
compliance plan approved by the Commission pursuant to
subsection (e) of Section 8-402.1, the Commission shall include
in such public utility's rate base an amount of CWIP equal to
its investment in such pollution control device or devices, but
not to exceed the estimated cost of such facilities specified
in the Commission's order or supplemental order pursuant to
subsection (e) of Section 8-402.1. For purposes of this
subsection (f), the public utility's investment shall not
include the amount of any state, federal or other grants
provided to the public utility to fund the design, acquisition,
construction, installation and testing of pollution control
devices for the control of sulfur dioxide emissions.
    (g) Except for those amounts of CWIP described in
paragraphs (e) and (f) of this Section, the Commission shall
consider, in any rate filing subsequent to the coming on line
of any new utility plant where CWIP funds have been allowed in
rate base, a rate moderation plan directed towards allowing an
appropriate return to ratepayers for previous amounts
attributable to CWIP funds.
    The Commission shall conduct an investigation and study of
the costs and benefits to ratepayers of the inclusion of
construction work in progress in rate base. Such study shall
include a full opportunity for participation by the public
through notice and hearings. If the Commission determines that
in certain circumstances the inclusion of CWIP in rate base
would be demonstrably beneficial to ratepayers, the Commission
shall report its findings with recommendations to the General
Assembly by December 31, 1988.
(Source: P.A. 87-173.)
 
    (220 ILCS 5/9-222.2)  (from Ch. 111 2/3, par. 9-222.2)
    Sec. 9-222.2. Additional Charge - Recovery. The additional
charge authorized by Section 9-221 or Section 9-222 shall be
made (i) in the case of a tax measured by gross receipts or
gross revenue, by adding to the customer's bill a uniform
percentage to those amounts payable by the customer for
intrastate utility service which are includible in the measure
of such tax, except, however, such method is not required where
practical considerations justify a utility's or
telecommunications carrier's use of another just and
reasonable method of recovering its entire liability for such
tax, and (ii) in the case of a tax measured by the number of
therms or kilowatt-hours distributed, supplied, furnished,
sold, transported or transmitted, by adding to the customer's
bill an amount equal to the number of therms or kilowatt-hours
which are includible in the measure of such tax, multiplied by
the applicable tax rate. Without limiting the generality of the
foregoing, it shall not be deemed unjust and unreasonable or a
violation of Section 9-241 for telecommunications carriers to
recover the expense of taxes imposed by any municipality
pursuant to Section 8-11-2 of the Illinois Municipal Code on
coin revenues generated by coin-operated telecommunications
devices by including the expense of the tax within the coin
rates for intra-state coin paid telecommunications services.
(Source: P.A. 87-750.)
 
    (220 ILCS 5/9-223)  (from Ch. 111 2/3, par. 9-223)
    Sec. 9-223. Fire protection charge.
    (a) The Commission may authorize any public utility engaged
in the production, storage, transmission, sale, delivery or
furnishing of water to impose a fire protection charge, in
addition to any rate authorized by this Act, sufficient to
cover a reasonable portion of the cost of providing the
capacity, facilities and the water necessary to meet the fire
protection needs of any municipality or public fire protection
district. Such fire protection charge shall be in the form of a
fixed amount per bill and shall be shown separately on the
utility bill of each customer of the municipality or fire
protection district. Any filing by a public utility to impose
such a fire protection charge or to modify a charge shall be
made pursuant to Section 9-201 of this Act. Any fire protection
charge imposed shall reflect the costs associated with
providing fire protection service for each municipality or fire
protection district. No such charge shall be imposed directly
on any municipality or fire protection district for a
reasonable level of fire protection services unless provided
for in a separate agreement between the municipality or the
fire protection district and the utility.
    (b) (Blank). By December 31, 2007, the Commission shall
conduct at least 3 public forums to evaluate the purpose and
use of each fire protection charge imposed under this Section.
At least one forum must be held in northern Illinois, at least
one forum must be held in central Illinois, and at least one
forum must be held in southern Illinois. The Commission must
invite a representative from each municipality and fire
protection district affected by a fire protection charge under
this Section to attend a public forum. The Commission shall
report its findings concerning recommendations concerning the
purpose and use of each fire protection charge to the General
Assembly no later than the last day of the veto session in
2008.
(Source: P.A. 94-950, eff. 6-27-06.)
 
    (220 ILCS 5/10-101)  (from Ch. 111 2/3, par. 10-101)
    Sec. 10-101. The Commission, or any commissioner or
administrative law judge hearing examiner designated by the
Commission, shall have power to hold investigations, inquiries
and hearings concerning any matters covered by the provisions
of this Act, or by any other Acts relating to public utilities
subject to such rules and regulations as the Commission may
establish. In the conduct of any investigation, inquiry or
hearing the provisions of the Illinois Administrative
Procedure Act, including but not limited to Sections 10-25 and
10-35 of that Act, shall be applicable and the Commission's
rules shall be consistent therewith. Complaint cases initiated
pursuant to any Section of this Act, investigative proceedings
and ratemaking cases shall be considered "contested cases" as
defined in Section 1-30 of the Illinois Administrative
Procedure Act, any contrary provision therein notwithstanding.
Any proceeding intended to lead to the establishment of
policies, practices, rules or programs applicable to more than
one utility may, in the Commission's discretion, be conducted
pursuant to either rulemaking or contested case provisions,
provided such choice is clearly indicated at the beginning of
such proceeding and subsequently adhered to. No violation of
this Section or the Illinois Administrative Procedure Act and
no informality in any proceeding or in the manner of taking
testimony before the Commission, any commissioner or
administrative law judge hearing examiner of the Commission
shall invalidate any order, decision, rule or regulation made,
approved, or confirmed by the Commission in the absence of
prejudice. All hearings conducted by the Commission shall be
open to the public.
    Each commissioner and every administrative law judge
hearing examiner of the Commission designated by it to hold any
inquiry, investigation or hearing, shall have the power to
administer oaths and affirmations, certify to all official
acts, issue subpoenas, compel the attendance and testimony of
witnesses, and the production of papers, books, accounts and
documents.
    Hearings shall be held either by the Commission or by one
or more commissioners or administrative law judges hearing
examiners.
    When any attorney who is not admitted to the practice of
law in Illinois by unlimited or conditional admission, but who
is licensed in another state, territory, or commonwealth of the
United States, the District of Columbia, or a foreign country
may desire to appear before the Commission, such attorney shall
be allowed to appear before the Commission as provided in
Supreme Court Rule 707.
    All evidence presented at hearings held by the Commission
or under its authority shall become a part of the records of
the Commission. In all cases in which the Commission bases any
action on reports of investigation or inquiries not conducted
as hearings, such reports shall be made a part of the records
of the Commission. All proceedings of the Commission and all
documents and records in its possession shall be public
records, except as in this Act otherwise provided.
    To the extent consistent with this Section and the Illinois
Administrative Procedure Act, the Commission may adopt
reasonable and proper rules and regulations relative to the
exercise of its powers, and proper rules to govern its
proceedings, and regulate the mode and manner of all
investigations and hearings, and alter and amend the same.
(Source: P.A. 98-895, eff. 1-1-15.)
 
    (220 ILCS 5/10-101.1)
    Sec. 10-101.1. Mediation; arbitration; case management.
    (a) It is the intent of the General Assembly that
proceedings before the Commission shall be concluded as
expeditiously as is possible consistent with the right of the
parties to the due process of law and protection of the public
interest. It is further the intent of the General Assembly to
permit and encourage voluntary mediation and voluntary binding
arbitration of disputes arising under this Act.
    (b) Nothing in this Act shall prevent parties to contested
cases brought before the Commission from resolving those cases,
or other disputes arising under this Act, in part or in their
entirety, by agreement of all parties, by compromise and
settlement, or by voluntary mediation; provided, however, that
nothing in this Section shall limit the Commission's authority
to conduct such investigations and enter such orders as it
shall deem necessary to enforce the provisions of this Act or
otherwise protect the public interest. Evidence of conduct or
statements made by a party in furtherance of voluntary
mediation or in compromise negotiations is not admissible as
evidence should the matter subsequently be heard by the
Commission; provided, however that evidence otherwise
discoverable is not excluded or deemed inadmissible merely
because it is presented in the course of voluntary mediation or
compromise negotiations. No civil penalty shall be imposed upon
parties that reach an agreement pursuant to the mediation
procedures in this Section.
    (c) The Commission shall prescribe by rule such procedures
and facilities as are necessary to permit parties to resolve
disputes through voluntary mediation prior to the filing of, or
at any point during, the pendency of a contested matter.
Parties to disputes arising under this Act are encouraged to
submit disputes to the Commission for voluntary mediation,
which shall not be binding upon the parties. Submission of a
dispute to voluntary mediation shall not compromise the right
of any party to bring action under this Act.
    (d) In any contested case before the Commission, at the
Commission's or administrative law judge's hearing examiner's
direction or on motion of any party, a case management
conference may be held at such time in the proceeding prior to
evidentiary hearing as the administrative law judge hearing
examiner deems proper. Prior to the conference, when directed
to do so, all parties shall file a case management memorandum
that addresses items (1) through (9) as directed by the
administrative law judge hearing examiner. At the conference,
the following shall be considered:
        (1) the identification and simplification of the
    issues; provided, however, that the identification of
    issues by a party shall not foreclose that party from
    raising such other meritorious issues as that party might
    subsequently identify;
        (2) amendments to the pleadings;
        (3) the possibility of obtaining admissions of fact and
    of documents which will avoid unnecessary proof;
        (4) limitations on discovery including:
            (A) the area of expertise and the number of
        witnesses who will likely be called; provided,
        however, that the identification of witnesses by a
        party shall not foreclose that party from producing
        such other witnesses as that party might subsequently
        identify; and
            (B) schedules for responses to and completion of
        discovery; provided, however, that such responses
        shall under no circumstances be provided later than 28
        days after such discovery or requests are served,
        unless the administrative law judge hearing examiner
        shall order or the parties agree to some other time
        period for response;
        (5) the possibility of settlement and scheduling of a
    settlement conference;
        (6) the advisability of alternative dispute resolution
    including, but not limited to, mediation or arbitration;
        (7) the date on which the matter should be ready for
    evidentiary hearing and the likely duration of the hearing;
        (8) the advisability of holding subsequent case
    management conferences; and
        (9) any other matters that may aid in the disposition
    of the action.
    (e) The Commission is hereby authorized, if requested by
all parties to any complaint brought under this Act, to
arbitrate the complaint and to enter a binding arbitration
award disposing of the complaint. The Commission shall
prescribe by rule procedures for arbitration.
(Source: P.A. 92-22, eff. 6-30-01.)
 
    (220 ILCS 5/10-103)  (from Ch. 111 2/3, par. 10-103)
    Sec. 10-103. In all proceedings, investigations or
hearings conducted by the Commission, except in the disposition
of matters which the Commission is authorized to entertain or
dispose of on an ex parte basis, any finding, decision or order
made by the Commission shall be based exclusively on the record
for decision in the case, which shall include only the
transcript of testimony and exhibits together with all papers
and requests filed in the proceeding, including, in contested
cases, the documents and information described in Section 10-35
of the Illinois Administrative Procedure Act.
    The provisions of Section 10-60 of the Illinois
Administrative Procedure Act shall apply in full to Commission
proceedings, including ratemaking cases, any provision of the
Illinois Administrative Procedure Act to the contrary
notwithstanding.
    The provisions of Section 10-60 shall not apply, however,
to communications between Commission employees who are engaged
in investigatory, prosecutorial or advocacy functions and
other parties to the proceeding, provided that such Commission
employees are still prohibited from communicating on an ex
parte basis, as designated in Section 10-60, directly or
indirectly, with members of the Commission, any administrative
law judge hearing examiner in the proceeding, or any Commission
employee who is or may reasonably be expected to be involved in
the decisional process of the proceeding. Any commissioner,
administrative law judge hearing examiner, or other person who
is or may reasonably be expected to be involved in the
decisional process of a proceeding, who receives, or who makes
or knowingly causes to be made, a communication prohibited by
this Section or Section 10-60 of the Illinois Administrative
Procedure Act as modified by this Section, shall place on the
public record of the proceeding (1) any and all such written
communications; (2) memoranda stating the substance of any and
all such oral communications; and (3) any and all written
responses and memoranda stating the substance of any and all
oral responses to the materials described in clauses (1) and
(2).
    The Commission, or any commissioner or administrative law
judge hearing examiner presiding over the proceeding, shall in
the event of a violation of this Section, take whatever action
is necessary to ensure that such violation does not prejudice
any party or adversely affect the fairness of the proceedings,
including dismissing the affected matter.
(Source: P.A. 96-33, eff. 7-10-09.)
 
    (220 ILCS 5/10-104)  (from Ch. 111 2/3, par. 10-104)
    Sec. 10-104. All hearings before the Commission or any
commissioner or administrative law judge hearing examiner
shall be held within the county in which the subject matter of
the hearing is situated, or if the subject matter of the
hearing is situated in more than one county, then at a place or
places designated by the Commission, or agreed upon by the
parties in interest, within one or more such counties, or at
the place which in the judgment of the Commission shall be most
convenient to the parties to be heard.
(Source: P.A. 84-617.)
 
    (220 ILCS 5/10-105)  (from Ch. 111 2/3, par. 10-105)
    Sec. 10-105. No person shall be excused from testifying or
from producing any papers, books, accounts or documents in any
investigation or inquiry or upon any hearing ordered by the
Commission, when ordered to do so by the Commission or any
commissioner or administrative law judge hearing examiner,
upon the ground that the testimony or evidence, documentary or
otherwise, may tend to incriminate him or subject him to a
penalty or forfeiture. But no person shall be prosecuted or
subjected to any penalty or forfeiture for or on account of any
transaction, matter or thing concerning which he may testify or
produce evidence, documentary or otherwise, before the
Commission or a commissioner or administrative law judge
hearing examiner: Provided, that such immunity shall extend
only to a natural person, who in obedience to a subpoena, gives
testimony under oath or produces evidence, documentary or
otherwise under oath. No person so testifying shall be exempt
from prosecution and punishment for perjury committed in so
testifying. The Commission or a commissioner or administrative
law judge hearing examiner may, on the motion of a party or on
its own motion, strike, in whole or in part, the testimony of a
person who is not reasonably prepared to respond to questions
under cross-examination intending to elicit information
directly related to matters raised by that person in his
testimony.
(Source: P.A. 93-457, eff. 8-8-03.)
 
    (220 ILCS 5/10-106)  (from Ch. 111 2/3, par. 10-106)
    Sec. 10-106. All subpoenas issued under the terms of this
Act may be served by any person of full age. The fees of
witnesses for attendance and travel shall be the same as fees
of witnesses before the circuit courts of this State, such fees
to be paid when the witness is excused from further attendance,
when the witness is subpoenaed at the instance of the
Commission, or any commissioner or administrative law judge
hearing examiner; and the disbursements made in the payment of
such fees shall be audited and paid in the same manner as are
other expenses of the Commission. Whenever a subpoena is issued
at the instance of a complainant, respondent, or other party to
any proceeding before the Commission, the Commission may
require that the cost of service thereof and the fee of the
witness shall be borne by the party at whose instance the
witness is summoned, and the Commission shall have power, in
its discretion, to require a deposit to cover the cost of such
service and witness fees and the payment of the legal witness
fee and mileage to the witness when served with subpoena. A
subpoena issued as aforesaid shall be served in the same manner
as a subpoena issued out of a court.
    Any person who shall be served with a subpoena to appear
and testify, or to produce books, papers, accounts or
documents, issued by the Commission or by any commissioner or
administrative law judge hearing examiner, in the course of an
inquiry, investigation or hearing conducted under any of the
provisions of this Act, and who refuse or neglect to appear, or
to testify, or to produce books, papers, accounts and documents
relevant to said inquiry, investigation or hearing as commanded
in such subpoena, shall be guilty of a Class A misdemeanor.
    Any circuit court of this State, upon application of the
Commission, or a commissioner or administrative law judge
hearing examiner, may, in its discretion, compel the attendance
of witnesses, the production of books, papers, accounts and
documents, and the giving of testimony before the Commission,
or before any such commissioner or administrative law judge
hearing examiner, by an attachment for contempt or otherwise,
in the same manner as production of evidence may be compelled
before the court.
    The Commission or a commissioner or administrative law
judge hearing examiner or any party may in any investigation or
hearing before the Commission, cause the deposition of
witnesses residing within or without the State to be taken in
the manner prescribed by law for like depositions in civil
actions in the courts of this State and to that end may compel
the attendance of witnesses and the production of papers,
books, accounts and documents.
    The Commission may require, by order served on any public
utility in the manner provided herein for the service of
orders, the production within this State at such time and place
as it may designate, of any books, accounts, papers or
documents kept by any public utility operating within this
State in any office or place without this State, or, at its
option, verified copies in lieu thereof, so that an examination
thereof may be made by the Commission or under its direction.
(Source: P.A. 84-617.)
 
    (220 ILCS 5/10-107)  (from Ch. 111 2/3, par. 10-107)
    Sec. 10-107. The Commission, each commissioner and each
employee of the Commission properly authorized thereby shall
have the right, at any and all times to inspect the papers,
books, accounts and documents, plant, equipment or other
property of any public utility, and the Commission, each
commissioner and any administrative law judge hearing examiner
of the Commission authorized to administer oaths shall have the
power to examine under oath any officer, agent or employee of
such public utility in relation to any matter within the
jurisdiction of the Commission. A person other than a
commissioner or administrative law judge hearing examiner
demanding such inspection shall produce under the seal of the
Commission his authority to make such inspection. A written
record of the testimony or statement so given under oath shall
be made and filed with the Commission. Information so obtained
shall not be admitted in evidence or used in any proceeding
except in proceedings provided for in this Act.
    Any party to a proceeding before the Commission shall have
the right to inspect the records of all hearings,
investigations or inquiries conducted by or under the authority
of the Commission, which may relate to the issues involved in
such proceeding; and to submit suggestions as to other matters
to be investigated or as to questions to be propounded. If the
Commission is satisfied that such suggested investigation
should be made or such suggested questions answered, and that
the information desired is within the power of either party to
furnish, it shall enter an order requiring the investigation to
be made or the questions to be answered, and upon failure or
refusal to comply with such order, the Commission shall either
refuse to grant the relief prayed for by the party refusing to
comply, or may grant the relief prayed for by the opposing
party against the party refusing to comply.
(Source: P.A. 84-617.)
 
    (220 ILCS 5/10-110)  (from Ch. 111 2/3, par. 10-110)
    Sec. 10-110. At the time fixed for any hearing upon a
complaint, the complainant and the person or corporation
complained of, and such persons or corporations as the
Commission may allow to intervene, shall be entitled to be
heard and to introduce evidence. The Commission shall issue
process to enforce the attendance of all necessary witnesses.
At the conclusion of such hearing the Commission shall make and
render findings concerning the subject matter and facts
inquired into and enter its order based thereon. A copy of such
order, certified under the seal of the Commission, shall be
served upon the person or corporation complained of, or his or
its attorney, which order shall, of its own force, take effect
and become operative twenty days after the service thereof,
except as otherwise provided, and shall continue in force
either for a period which may be designated therein or until
changed or abrogated by the Commission. Where an order cannot,
in the judgment of the Commission, be complied with within
twenty days, the Commission may prescribe such additional time
as in its judgment is reasonably necessary to comply with the
order, and may, on application and for good cause shown, extend
the time for compliance fixed in its order. A full and complete
record shall be preserved of all proceedings had before the
Commission, or any member thereof, or any administrative law
judge hearing examiner, on any formal hearing had, and all
testimony shall be taken down by a stenographer appointed by
the Commission, and the parties shall be entitled to be heard
in person or by attorney.
    In any proceeding involving a public utility in which the
lawfulness of any of its rates or other charges shall be called
in question by any person or corporation furnishing a commodity
or service in competition with said public utility at prices or
charges not subject to regulation, the Commission may
investigate the competitive prices or other charges demanded or
received by such person or corporation for such commodity or
service, including the rates or other charges applicable to the
transportation thereof. The Commission may, on its own motion
or that of any party to such proceeding, issue subpoenas to
secure the appearance of witnesses or the production of books,
papers, accounts and documents necessary to ascertain the
prices, rates or other charges for such commodity or service or
for the transportation thereof, and shall dismiss from such
proceeding any party failing to comply with a subpoena so
issued.
    In case of an appeal from any order or decision of the
Commission, under the terms of Sections 10-201 and 10-202 of
this Act, a transcript of such testimony, together with all
exhibits or copies thereof introduced and all information
secured by the Commission on its own initiative and considered
by it in rendering its order or decision (and required by this
Act to be made a part of its records) and of the pleadings,
records and proceedings in the case, including transcripts of
Commission meetings prepared in accordance with Section 10-102
of this Act, shall constitute the record of the Commission:
Provided, that on appeal from an order or decision of the
Commission, the person or corporation taking the appeal and the
Commission may stipulate that a certain question or certain
questions alone and a specified portion only of the evidence
shall be certified to the court for its judgment, whereupon
such stipulation and the question or questions and the evidence
therein specified shall constitute the record on appeal.
    Copies of all official documents and orders filed or
deposited according to law in the office of the Commission,
certified by the Chairman of the Commission or his or her
designee to be true copies of the originals, under the official
seal of the Commission, shall be evidence in like manner as the
originals.
    In any matter concerning which the Commission is authorized
to hold a hearing, upon complaint or application or upon its
own motion, notice shall be given to the public utility and to
such other interested persons as the Commission shall deem
necessary in the manner provided in Section 10-108, and the
hearing shall be conducted in like manner as if complaint had
been made to or by the Commission. But nothing in this Act
shall be taken to limit or restrict the power of the
Commission, summarily, of its own motion, with or without
notice, to conduct any investigations or inquiries authorized
by this Act, in such manner and by such means as it may deem
proper, and to take such action as it may deem necessary in
connection therewith. With respect to any rules, regulations,
decisions or orders which the Commission is authorized to issue
without a hearing, and so issues, any public utility or other
person or corporation affected thereby and deeming such rules,
regulations, decisions or orders, or any of them, improper,
unreasonable or contrary to law, may apply for a hearing
thereon, setting forth specifically in such application every
ground of objection which the applicant desires to urge against
such rule, regulation, decision or order. The Commission may,
in its discretion, grant or deny the application, and a
hearing, if had, shall be subject to the provisions of this and
the preceding Sections.
(Source: P.A. 96-33, eff. 7-10-09.)
 
    (220 ILCS 5/10-111)  (from Ch. 111 2/3, par. 10-111)
    Sec. 10-111. In any hearing, proceeding, investigation, or
rulemaking conducted by the Commission, the Commission,
commissioner, or administrative law judge hearing examiner
presiding, shall, after the close of evidentiary hearings,
prepare a recommended or tentative decision, finding, or order,
including a statement of findings and conclusions and the
reasons or basis therefore, on all the material issues of fact,
law, or discretion presented on the record. Such recommended or
tentative decision, finding, or order shall be served on all
parties who shall be entitled to a reasonable opportunity to
respond thereto, either in briefs or comments otherwise to be
filed or separately. The recommended or tentative decision,
finding, or order and any responses thereto, shall be included
in the record for decision. This Section shall not apply to any
hearing, proceeding, or investigation conducted under Section
13-515.
(Source: P.A. 96-33, eff. 7-10-09.)
 
    (220 ILCS 5/10-201)  (from Ch. 111 2/3, par. 10-201)
    Sec. 10-201. (a) Jurisdiction. Within 35 days from the date
that a copy of the order or decision sought to be reviewed was
served upon the party affected by any order or decision of the
Commission refusing an application for a rehearing of any rule,
regulation, order or decision of the Commission, including any
order granting or denying interim rate relief, or within 35
days from the date that a copy of the order or decision sought
to be reviewed was served upon the party affected by any final
order or decision of the Commission upon and after a rehearing
of any rule, regulation, order or decision of the Commission,
including any order granting or denying interim rate relief,
any person or corporation affected by such rule, regulation,
order or decision, may appeal to the appellate court of the
judicial district in which the subject matter of the hearing is
situated, or if the subject matter of the hearing is situated
in more than one district, then of any one of such districts,
for the purpose of having the reasonableness or lawfulness of
the rule, regulation, order or decision inquired into and
determined.
    The court first acquiring jurisdiction of any appeal from
any rule, regulation, order or decision shall have and retain
jurisdiction of such appeal and of all further appeals from the
same rule, regulation, order or decision until such appeal is
disposed of in such appellate court.
    (b) Pleadings and Record. No proceeding to contest any
rule, regulation, decision or order which the Commission is
authorized to issue without a hearing and has so issued shall
be brought in any court unless application shall have been
first made to the Commission for a hearing thereon and until
after such application has been acted upon by the Commission,
nor shall any person or corporation in any court urge or rely
upon any grounds not set forth in such application for a
hearing before the Commission, but the Commission shall decide
the questions presented by the application with all possible
expedition consistent with the duties of the Commission. The
party taking such an appeal shall file with the Commission
written notice of the appeal. The Commission, upon the filing
of such notice of appeal, shall, within 5 days thereafter, file
with the clerk of the appellate court to which such appeal is
taken a certified copy of the order appealed. The Commission
shall prepare a copy of the transcript of the evidence,
including exhibits and transcripts of Commission meetings
prepared in accordance with Section 10-102 of this Act, or any
portion of the record designated in a stipulation that only
certain questions are involved on appeal, which stipulation is
to be included in the record provided for in Section 10-110.
The Commission shall certify the record and file the same with
the clerk of the appellate court to which such appeal is taken
within 35 days of the filing of the notice of appeal. The party
serving such notice of appeal shall, within 5 days after the
service of such notice upon the Commission, file a copy of the
notice, with proof of service, with the clerk of the court to
which such appeal is taken, and thereupon the appellate court
shall have jurisdiction over the appeal. The appeal shall be
heard according to the rules governing other civil cases, so
far as the same are applicable.
    (c) No appellate court shall permit a party affected by any
rule, regulation, order or decision of the Commission to
intervene or become a party plaintiff or appellant in such
court who has not taken an appeal from such rule, regulation,
order or decision in the manner as herein provided.
    (d) No new or additional evidence may be introduced in any
proceeding upon appeal from a rule, regulation, order or
decision of the Commission, issued or confirmed after a
hearing, but the appeal shall be heard on the record of the
Commission as certified by it. The findings and conclusions of
the Commission on questions of fact shall be held prima facie
to be true and as found by the Commission; rules, regulations,
orders or decisions of the Commission shall be held to be prima
facie reasonable, and the burden of proof upon all issues
raised by the appeal shall be upon the person or corporation
appealing from such rules, regulations, orders or decisions.
    (e) Powers and duties of Reviewing Court:
        (i) An appellate court to which any such appeal is
    taken shall have the power, and it shall be its duty, to
    hear and determine such appeal with all convenient speed.
    Any proceeding in any court in this State directly
    affecting a rule, regulation, order or decision of the
    Commission, or to which the Commission is a party, shall
    have priority in hearing and determination over all other
    civil proceedings pending in such court, excepting
    election contests.
        (ii) If it appears that the Commission failed to
    receive evidence properly proffered, on a hearing or a
    rehearing, or an application therefor, the court shall
    remand the case, in whole or in part, to the Commission
    with instructions to receive the testimony so proffered and
    rejected, and to enter a new order based upon the evidence
    theretofore taken, and such new evidence as it is directed
    to receive, unless it shall appear that such new evidence
    would not be controlling, in which case the court shall so
    find in its order. If the court remands only part of the
    Commission's rule, regulation, order or decision, it shall
    determine without delay the lawfulness and reasonableness
    of any independent portions of the rule, regulation, order
    or decision subject to appeal.
        (iii) If the court determines that the Commission's
    rule, regulation, order or decision does not contain
    findings or analysis sufficient to allow an informed
    judicial review thereof, the court shall remand the rule,
    regulation, order or decision, in whole or in part, with
    instructions to the Commission to make the necessary
    findings or analysis.
        (iv) The court shall reverse a Commission rule,
    regulation, order or decision, in whole or in part, if it
    finds that:
            A. The findings of the Commission are not supported
        by substantial evidence based on the entire record of
        evidence presented to or before the Commission for and
        against such rule, regulation, order or decision; or
            B. The rule, regulation, order or decision is
        without the jurisdiction of the Commission; or
            C. The rule, regulation, order or decision is in
        violation of the State or federal constitution or laws;
        or
            D. The proceedings or manner by which the
        Commission considered and decided its rule,
        regulation, order or decision were in violation of the
        State or federal constitution or laws, to the prejudice
        of the appellant.
        (v) The court may affirm or reverse the rule,
    regulation, order or decision of the Commission in whole or
    in part, or to remand the decision in whole or in part
    where a hearing has been held before the Commission, and to
    state the questions requiring further hearings or
    proceedings and to give such other instructions as may be
    proper.
        (vi) When the court remands a rule, regulation, order
    or decision of the Commission, in whole or in part, the
    Commission shall enter its final order with respect to the
    remanded rule, regulation, order or decision no later than
    6 months after the date of issuance of the court's mandate.
    The Commission shall enter its final order, with respect to
    any remanded matter pending before it on the effective date
    of this amendatory Act of 1988, no later than 6 months
    after the effective date of this amendatory Act of 1988.
    However, when the court mandates, or grants an extension of
    time which the court determines to be necessary for, the
    taking of additional evidence, the Commission shall enter
    an interim order within 6 months after the issuance of the
    mandate (or within 6 months after the effective date of
    this amendatory Act of 1988 in the case of a remanded
    matter pending before it on the effective date of this
    amendatory Act of 1988), and the Commission shall enter its
    final order within 5 months after the date the interim
    order was entered.
    (f) When no appeal is taken from a rule, regulation, order
or decision of the Commission, as herein provided, parties
affected by such rule, regulation, order or decision, shall be
deemed to have waived the right to have the merits of the
controversy reviewed by a court and there shall be no trial of
the merits of any controversy in which such rule, regulation,
order or decision was made, by any court to which application
may be made for the enforcement of the same, or in any other
judicial proceedings.
(Source: P.A. 96-33, eff. 7-10-09.)
 
    (220 ILCS 5/10-204)  (from Ch. 111 2/3, par. 10-204)
    Sec. 10-204. (a) The pendency of an appeal shall not of
itself stay or suspend the operation of the rule, regulation,
order or decision of the Commission, but during the pendency of
the appeal the reviewing court may in its discretion stay or
suspend, in whole or in part, the operation of the Commission's
rule, regulation, order or decision. Any stocks or stock
certificates, bonds, notes, or other evidence of indebtedness
issued pursuant to and in accordance with an order of the
Commission shall be valid and binding in accordance with their
terms notwithstanding such order of the Commission is later
vacated, modified, or otherwise held to be wholly or partly
invalid unless operation of such order of the Commission has
been stayed or suspended by the reviewing court prior to such
issuance.
    (b) No order so staying or suspending a rule, regulation,
order or decision of the Commission shall be made by the court
otherwise than upon 3 days' notice to the Commission and after
a hearing, and if the rule, regulation, order or decision of
the Commission is suspended, the order suspending the same
shall contain a specific finding based upon evidence submitted
to the court, and identified by reference thereto, that great
or irreparable damage would otherwise result to the petitioner,
and specifying the nature of the damage.
    (c) In case the rule, regulation, order or decision of the
Commission is stayed or suspended, the order of the court shall
not become effective until a suspending bond shall first have
been executed and filed with, and approved by the Commission
(or approved, on review, by the court) payable to the people of
the State of Illinois, and sufficient in amount and security to
insure the prompt payment, by the party petitioning for the
review, of all damages caused by the delay in the enforcement
of the rule, regulation, order or decision of the Commission,
and of all moneys which any person or corporation may be
compelled to pay, pending the review proceedings, for
transportation, transmission, product, commodity or service in
excess of the charges fixed by the rule, regulation, order or
decision of the Commission, in case said rule, regulation,
order or decision is sustained. However, no bond shall be
required in the case of any stay or suspension granted on
application of the State or people of the State, represented by
the Attorney General or Public Counsel, or of any city or other
governmental body. The court in case it stays or suspends the
rule, regulation, order or decision of the Commission in any
manner affecting rates or other charges or classifications, may
in its discretion, also by order direct the public utility
affected to pay into court, from time to time thereto to be
impounded until the final decision of the case or into some
bank or trust company paying interest on deposits, under such
conditions as the court may prescribe, all sums of money which
it may collect from any corporation or person in excess of the
sum such corporation or person would have been compelled to pay
if the rule, regulation, order or decision of the Commission
had not been stayed or suspended.
    (d) When any rate or other charge has been in force for any
length of time exceeding one year, and that rate or other
charge is advanced by the public utility and the order of the
Commission reinstates that such prior rate or other charge, in
whole or in part, no suspending order shall be allowed in any
case from the reinstating order pending the final determination
of the case in the reviewing court, pending the final
determination by such reviewing court.
(Source: P.A. 84-617.)
 
    (220 ILCS 5/13-401.1)
    (Section scheduled to be repealed on December 31, 2020)
    Sec. 13-401.1. Interconnected voice over Internet protocol
(VoIP) service surcharge provider registration.
    (a) An Interconnected VoIP provider providing fixed or
non-nomadic service in Illinois on December 1, 2010 shall
register with the Commission no later than January 1, 2011. All
other Interconnected VoIP providers providing fixed or
non-nomadic service in Illinois shall register with the
Commission at least 30 days before providing service in
Illinois. The Commission shall prescribe a registration form no
later than October 1, 2010. The registration form prescribed by
the Commission shall only require the following information:
        (1) the provider's legal name and any name under which
    the provider does or will do business in Illinois, as
    authorized by the Secretary of State;
        (2) the provider's address and telephone number, along
    with contact information for the person responsible for
    ongoing communications with the Commission;
        (3) a description of the provider's dispute resolution
    process and, if any, the telephone number to initiate the
    dispute resolution process; and
        (4) a description of each exchange of a local exchange
    company, in whole or in part, or the cities, towns, or
    geographic areas, in whole or in part, in which the
    provider is offering or proposes to offer Interconnected
    VoIP service.
    A provider must notify the Commission of any change in the
information identified in paragraphs (1), (2), (3), or (4) of
this subsection (a) within 5 business days after any such
change.
    An interconnected voice over Internet protocol (b) A
provider shall charge and collect from its end-user customers,
and remit to the appropriate authority, fees and surcharges in
the same manner as are charged and collected upon end-user
customers of local exchange telecommunications service and
remitted by local exchange telecommunications companies for
local enhanced 9-1-1 surcharges.
    (c) A provider may designate information that it submits in
its registration form or subsequent reports as confidential or
proprietary, provided that the provider states the reasons the
confidential designation is necessary. The Commission shall
provide adequate protection for such information pursuant to
Section 4-404 of this Act. If the Commission or any other party
seeks public disclosure of information designated as
confidential, the Commission shall consider the confidential
designation in a proceeding under the Illinois Administrative
Procedure Act, and the burden of proof to demonstrate that the
designated information is confidential shall be upon the
provider. Designated information shall remain confidential
pending the Commission's determination of whether the
information is entitled to confidential treatment. Information
designated as confidential shall be provided to local units of
government for purposes of assessing compliance with this
Article as permitted under a protective order issued by the
Commission pursuant to the Commission's rules and to the
Attorney General pursuant to Section 6.5 of the Attorney
General Act. Information designated as confidential under this
Section or determined to be confidential upon Commission review
shall only be disclosed pursuant to a valid and enforceable
subpoena or court order or as required by the Freedom of
Information Act.
    (d) Notwithstanding any other provision of law to the
contrary, the Commission shall have the authority, after notice
and hearing, to revoke or suspend the registration of any
provider that fails to comply with the requirements of this
Section.
    (e) The provisions of this Section are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 100-20, eff. 7-1-17.)
 
    (220 ILCS 5/13-506.2)
    (Section scheduled to be repealed on December 31, 2020)
    Sec. 13-506.2. Market regulation for competitive retail
services.
    (a) Definitions. As used in this Section:
        (1) "Electing Provider" means a telecommunications
    carrier that is subject to either rate regulation pursuant
    to Section 13-504 or Section 13-505 or alternative
    regulation pursuant to Section 13-506.1 and that elects to
    have the rates, terms, and conditions of its competitive
    retail telecommunications services solely determined and
    regulated pursuant to the terms of this Article.
        (2) "Basic local exchange service" means either a
    stand-alone residence network access line and per-call
    usage or, for any geographic area in which such stand-alone
    service is not offered, a stand-alone flat rate residence
    network access line for which local calls are not charged
    for frequency or duration. Extended Area Service shall be
    included in basic local exchange service.
        (3) "Existing customer" means a residential customer
    who was subscribing to one of the optional packages
    described in subsection (d) of this Section as of the
    effective date of this amendatory Act of the 99th General
    Assembly. A customer who was subscribing to one of the
    optional packages on that date but stops subscribing
    thereafter shall not be considered an "existing customer"
    as of the date the customer stopped subscribing to the
    optional package, unless the stoppage is temporary and
    caused by the customer changing service address locations,
    or unless the customer resumes subscribing and is eligible
    to receive discounts on monthly telephone service under the
    federal Lifeline program, 47 C.F.R. Part 54, Subpart E.
        (4) "New customer" means a residential customer who was
    not subscribing to one of the optional packages described
    in subsection (d) of this Section as of the effective date
    of this amendatory Act of the 99th General Assembly and who
    is eligible to receive discounts on monthly telephone
    service under the federal Lifeline program, 47 C.F.R. Part
    54, Subpart E.
    (b) Election for market regulation. Notwithstanding any
other provision of this Act, an Electing Provider may elect to
have the rates, terms, and conditions of its competitive retail
telecommunications services solely determined and regulated
pursuant to the terms of this Section by filing written notice
of its election for market regulation with the Commission. The
notice of election shall designate the geographic area of the
Electing Provider's service territory where the market
regulation shall apply, either on a state-wide basis or in one
or more specified Market Service Areas ("MSA") or Exchange
areas. An Electing Provider shall not make an election for
market regulation under this Section unless it commits in its
written notice of election for market regulation to fulfill the
conditions and requirements in this Section in each geographic
area in which market regulation is elected. Immediately upon
filing the notice of election for market regulation, the
Electing Provider shall be subject to the jurisdiction of the
Commission to the extent expressly provided in this Section.
    (c) Competitive classification. Market regulation shall be
available for competitive retail telecommunications services
as provided in this subsection.
        (1) For geographic areas in which telecommunications
    services provided by the Electing Provider were classified
    as competitive either through legislative action or a
    tariff filing pursuant to Section 13-502 prior to January
    1, 2010, and that are included in the Electing Provider's
    notice of election pursuant to subsection (b) of this
    Section, such services, and all recurring and nonrecurring
    charges associated with, related to or used in connection
    with such services, shall be classified as competitive
    without further Commission review. For services classified
    as competitive pursuant to this subsection, the
    requirements or conditions in any order or decision
    rendered by the Commission pursuant to Section 13-502 prior
    to the effective date of this amendatory Act of the 96th
    General Assembly, except for the commitments made by the
    Electing Provider in such order or decision concerning the
    optional packages required in subsection (d) of this
    Section and basic local exchange service as defined in this
    Section, shall no longer be in effect and no Commission
    investigation, review, or proceeding under Section 13-502
    shall be continued, conducted, or maintained with respect
    to such services, charges, requirements, or conditions. If
    an Electing Provider has ceased providing optional
    packages to customers pursuant to subdivision (d)(8) of
    this Section, the commitments made by the Electing Provider
    in such order or decision concerning the optional packages
    under subsection (d) of this Section shall no longer be in
    effect and no Commission investigation, review, or
    proceeding under Section 13-502 shall be continued,
    conducted, or maintained with respect to such packages.
        (2) For those geographic areas in which residential
    local exchange telecommunications services have not been
    classified as competitive as of the effective date of this
    amendatory Act of the 96th General Assembly, all
    telecommunications services provided to residential and
    business end users by an Electing Provider in the
    geographic area that is included in its notice of election
    pursuant to subsection (b) shall be classified as
    competitive for purposes of this Article without further
    Commission review.
        (3) If an Electing Provider was previously subject to
    alternative regulation pursuant to Section 13-506.1 of
    this Article, the alternative regulation plan shall
    terminate in whole for all services subject to that plan
    and be of no force or effect, without further Commission
    review or action, when the Electing Provider's residential
    local exchange telecommunications service in each MSA in
    its telecommunications service area in the State has been
    classified as competitive pursuant to either subdivision
    (c)(1) or (c)(2) of this Section.
        (4) The service packages described in Section 13-518
    shall be classified as competitive for purposes of this
    Section if offered by an Electing Provider in a geographic
    area in which local exchange telecommunications service
    has been classified as competitive pursuant to either
    subdivision (c)(1) or (c)(2) of this Section.
        (5) Where a service, or its functional equivalent, or a
    substitute service offered by a carrier that is not an
    Electing Provider or the incumbent local exchange carrier
    for that area is also being offered by an Electing Provider
    for some identifiable class or group of customers in an
    exchange, group of exchanges, or some other clearly defined
    geographical area, the service offered by a carrier that is
    not an Electing Provider or the incumbent local exchange
    carrier for that area shall be classified as competitive
    without further Commission review.
        (6) Notwithstanding any other provision of this Act,
    retail telecommunications services classified as
    competitive pursuant to Section 13-502 or subdivision
    (c)(5) of this Section shall have their rates, terms, and
    conditions solely determined and regulated pursuant to the
    terms of this Section in the same manner and to the same
    extent as the competitive retail telecommunications
    services of an Electing Provider, except that subsections
    (d), (g), and (j) of this Section shall not apply to a
    carrier that is not an Electing Provider or to the
    competitive telecommunications services of a carrier that
    is not an Electing Provider. The access services of a
    carrier that is not an Electing Provider shall remain
    subject to Section 13-900.2. The requirements in
    subdivision (e)(3) of this Section shall not apply to
    retail telecommunications services classified as
    competitive pursuant to Section 13-502 or subdivision
    (c)(5) of this Section, except that, upon request from the
    Commission, the telecommunications carrier providing
    competitive retail telecommunications services shall
    provide a report showing the number of credits and
    exemptions for the requested time period.
    (d) Consumer choice safe harbor options.
        (1) Subject to subdivision (d)(8) of this Section, an
    Electing Provider in each of the MSA or Exchange areas
    classified as competitive pursuant to subdivision (c)(1)
    or (c)(2) of this Section shall offer to all residential
    customers who choose to subscribe the following optional
    packages of services priced at the same rate levels in
    effect on January 1, 2010:
            (A) A basic package, which shall consist of a
        stand-alone residential network access line and 30
        local calls. If the Electing Provider offers a
        stand-alone residential access line and local usage on
        a per call basis, the price for the basic package shall
        be the Electing Provider's applicable price in effect
        on January 1, 2010 for the sum of a residential access
        line and 30 local calls, additional calls over 30 calls
        shall be provided at the current per call rate.
        However, this basic package is not required if
        stand-alone residential network access lines or
        per-call local usage are not offered by the Electing
        Provider in the geographic area on January 1, 2010 or
        if the Electing Provider has not increased its
        stand-alone network access line and local usage rates,
        including Extended Area Service rates, since January
        1, 2010.
            (B) An extra package, which shall consist of
        residential basic local exchange network access line
        and unlimited local calls. The price for the extra
        package shall be the Electing Provider's applicable
        price in effect on January 1, 2010 for a residential
        access line with unlimited local calls.
            (C) A plus package, which shall consist of
        residential basic local exchange network access line,
        unlimited local calls, and the customer's choice of 2
        vertical services offered by the Electing Provider.
        The term "vertical services" as used in this
        subsection, includes, but is not limited to, call
        waiting, call forwarding, 3-way calling, caller ID,
        call tracing, automatic callback, repeat dialing, and
        voicemail. The price for the plus package shall be the
        Electing Provider's applicable price in effect on
        January 1, 2010 for the sum of a residential access
        line with unlimited local calls and 2 times the average
        price for the vertical features included in the
        package.
        (2) Subject to subdivision (d)(8) of this Section, for
    those geographic areas in which local exchange
    telecommunications services were classified as competitive
    on the effective date of this amendatory Act of the 96th
    General Assembly, an Electing Provider in each such MSA or
    Exchange area shall be subject to the same terms and
    conditions as provided in commitments made by the Electing
    Provider in connection with such previous competitive
    classifications, which shall apply with equal force under
    this Section, except as follows: (i) the limits on price
    increases on the optional packages required by this Section
    shall be extended consistent with subsection (d)(1) of this
    Section and (ii) the price for the extra package required
    by subsection (d)(1)(B) shall be reduced by one dollar from
    the price in effect on January 1, 2010. In addition, if an
    Electing Provider obtains a competitive classification
    pursuant to subsection (c)(1) and (c)(2), the price for the
    optional packages shall be determined in such area in
    compliance with subsection (d)(1), except the price for the
    plus package required by subsection (d)(1) (C) shall be the
    lower of the price for such area or the price of the plus
    package in effect on January 1, 2010 for areas classified
    as competitive pursuant to subsection (c)(1).
        (3) To the extent that the requirements in Section
    13-518 applied to a telecommunications carrier prior to the
    effective date of this Section and that telecommunications
    carrier becomes an Electing Provider in accordance with the
    provisions of this Section, the requirements in Section
    13-518 shall cease to apply to that Electing Provider in
    those geographic areas included in the Electing Provider's
    notice of election pursuant to subsection (b) of this
    Section.
        (4) Subject to subdivision (d)(8) of this Section, an
    Electing Provider shall make the optional packages
    required by this subsection and stand-alone residential
    network access lines and local usage, where offered,
    readily available to the public by providing information,
    in a clear manner, to residential customers. Information
    shall be made available on a website, and an Electing
    Provider shall provide notification to its customers every
    6 months, provided that notification may consist of a bill
    page message that provides an objective description of the
    safe harbor options that includes a telephone number and
    website address where the customer may obtain additional
    information about the packages from the Electing Provider.
    The optional packages shall be offered on a monthly basis
    with no term of service requirement. An Electing Provider
    shall allow online electronic ordering of the optional
    packages and stand-alone residential network access lines
    and local usage, where offered, on its website in a manner
    similar to the online electronic ordering of its other
    residential services.
        (5) Subject to subdivision (d)(8) of this Section, an
    Electing Provider shall comply with the Commission's
    existing rules, regulations, and notices in Title 83, Part
    735 of the Illinois Administrative Code when offering or
    providing the optional packages required by this
    subsection (d) and stand-alone residential network access
    lines.
        (6) Subject to subdivision (d)(8) of this Section, an
    Electing Provider shall provide to the Commission
    semi-annual subscribership reports as of June 30 and
    December 31 that contain the number of its customers
    subscribing to each of the consumer choice safe harbor
    packages required by subsection (d)(1) of this Section and
    the number of its customers subscribing to retail
    residential basic local exchange service as defined in
    subsection (a)(2) of this Section. The first semi-annual
    reports shall be made on April 1, 2011 for December 31,
    2010, and on September 1, 2011 for June 30, 2011, and
    semi-annually on April 1 and September 1 thereafter. Such
    subscribership information shall be accorded confidential
    and proprietary treatment upon request by the Electing
    Provider.
        (7) The Commission shall have the power, after notice
    and hearing as provided in this Article, upon complaint or
    upon its own motion, to take corrective action if the
    requirements of this Section are not complied with by an
    Electing Provider.
        (8) On and after the effective date of this amendatory
    Act of the 99th General Assembly, an Electing Provider
    shall continue to offer and provide the optional packages
    described in this subsection (d) to existing customers and
    new customers. On and after July 1, 2017, an Electing
    Provider may immediately stop offering the optional
    packages described in this subsection (d) and, upon
    providing two notices to affected customers and to the
    Commission, may stop providing the optional packages
    described in this subsection (d) to all customers who
    subscribe to one of the optional packages. The first notice
    shall be provided at least 90 days before the date upon
    which the Electing Provider intends to stop providing the
    optional packages, and the second notice must be provided
    at least 30 days before that date. The first notice shall
    not be provided prior to July 1, 2017. Each notice must
    identify the date on which the Electing Provider intends to
    stop providing the optional packages, at least one
    alternative service available to the customer, and a
    telephone number by which the customer may contact a
    service representative of the Electing Provider. After
    July 1, 2017 with respect to new customers, and upon the
    expiration of the second notice period with respect to
    customers who were subscribing to one of the optional
    packages, subdivisions (d)(1), (d)(2), (d)(4), (d)(5),
    (d)(6), and (d)(7) of this Section shall not apply to the
    Electing Provider. Notwithstanding any other provision of
    this Article, an Electing Provider that has ceased
    providing the optional packages under this subdivision
    (d)(8) is not subject to Section 13-301(1)(c) of this Act.
    Notwithstanding any other provision of this Act, and
    subject to subdivision (d)(7) of this Section, the
    Commission's authority over the discontinuance of the
    optional packages described in this subsection (d) by an
    Electing Provider shall be governed solely by this
    subsection (d)(8).
    (e) Service quality and customer credits for basic local
exchange service.
        (1) An Electing Provider shall meet the following
    service quality standards in providing basic local
    exchange service, which for purposes of this subsection
    (e), includes both basic local exchange service and any
    consumer choice safe harbor options that may be required by
    subsection (d) of this Section.
            (A) Install basic local exchange service within 5
        business days after receipt of an order from the
        customer unless the customer requests an installation
        date that is beyond 5 business days after placing the
        order for basic service and to inform the customer of
        the Electing Provider's duty to install service within
        this timeframe. If installation of service is
        requested on or by a date more than 5 business days in
        the future, the Electing Provider shall install
        service by the date requested.
            (B) Restore basic local exchange service for the
        customer within 30 hours after receiving notice that
        the customer is out of service.
            (C) Keep all repair and installation appointments
        for basic local exchange service if a customer premises
        visit requires a customer to be present. The
        appointment window shall be either a specific time or,
        at a maximum, a 4-hour time block during evening,
        weekend, and normal business hours.
            (D) Inform a customer when a repair or installation
        appointment requires the customer to be present.
        (2) Customers shall be credited by the Electing
    Provider for violations of basic local exchange service
    quality standards described in subdivision (e)(1) of this
    Section. The credits shall be applied automatically on the
    statement issued to the customer for the next monthly
    billing cycle following the violation or following the
    discovery of the violation. The next monthly billing cycle
    following the violation or the discovery of the violation
    means the billing cycle immediately following the billing
    cycle in process at the time of the violation or discovery
    of the violation, provided the total time between the
    violation or discovery of the violation and the issuance of
    the credit shall not exceed 60 calendar days. The Electing
    Provider is responsible for providing the credits and the
    customer is under no obligation to request such credits.
    The following credits shall apply:
            (A) If an Electing Provider fails to repair an
        out-of-service condition for basic local exchange
        service within 30 hours, the Electing Provider shall
        provide a credit to the customer. If the service
        disruption is for more than 30 hours, but not more than
        48 hours, the credit must be equal to a pro-rata
        portion of the monthly recurring charges for all basic
        local exchange services disrupted. If the service
        disruption is for more than 48 hours, but not more than
        72 hours, the credit must be equal to at least 33% of
        one month's recurring charges for all local services
        disrupted. If the service disruption is for more than
        72 hours, but not more than 96 hours, the credit must
        be equal to at least 67% of one month's recurring
        charges for all basic local exchange services
        disrupted. If the service disruption is for more than
        96 hours, but not more than 120 hours, the credit must
        be equal to one month's recurring charges for all basic
        local exchange services disrupted. For each day or
        portion thereof that the service disruption continues
        beyond the initial 120-hour period, the Electing
        Provider shall also provide an additional credit of $20
        per calendar day.
            (B) If an Electing Provider fails to install basic
        local exchange service as required under subdivision
        (e)(1) of this Section, the Electing Provider shall
        waive 50% of any installation charges, or in the
        absence of an installation charge or where
        installation is pursuant to the Link Up program, the
        Electing Provider shall provide a credit of $25. If an
        Electing Provider fails to install service within 10
        business days after the service application is placed,
        or fails to install service within 5 business days
        after the customer's requested installation date, if
        the requested date was more than 5 business days after
        the date of the order, the Electing Provider shall
        waive 100% of the installation charge, or in the
        absence of an installation charge or where
        installation is provided pursuant to the Link Up
        program, the Electing Provider shall provide a credit
        of $50. For each day that the failure to install
        service continues beyond the initial 10 business days,
        or beyond 5 business days after the customer's
        requested installation date, if the requested date was
        more than 5 business days after the date of the order,
        the Electing Provider shall also provide an additional
        credit of $20 per calendar day until the basic local
        exchange service is installed.
            (C) If an Electing Provider fails to keep a
        scheduled repair or installation appointment when a
        customer premises visit requires a customer to be
        present as required under subdivision (e)(1) of this
        Section, the Electing Provider shall credit the
        customer $25 per missed appointment. A credit required
        by this subdivision does not apply when the Electing
        Provider provides the customer notice of its inability
        to keep the appointment no later than 8:00 pm of the
        day prior to the scheduled date of the appointment.
            (D) Credits required by this subsection do not
        apply if the violation of a service quality standard:
                (i) occurs as a result of a negligent or
            willful act on the part of the customer;
                (ii) occurs as a result of a malfunction of
            customer-owned telephone equipment or inside
            wiring;
                (iii) occurs as a result of, or is extended by,
            an emergency situation as defined in 83 Ill. Adm.
            Code 732.10;
                (iv) is extended by the Electing Provider's
            inability to gain access to the customer's
            premises due to the customer missing an
            appointment, provided that the violation is not
            further extended by the Electing Provider;
                (v) occurs as a result of a customer request to
            change the scheduled appointment, provided that
            the violation is not further extended by the
            Electing Provider;
                (vi) occurs as a result of an Electing
            Provider's right to refuse service to a customer as
            provided in Commission rules; or
                (vii) occurs as a result of a lack of
            facilities where a customer requests service at a
            geographically remote location, where a customer
            requests service in a geographic area where the
            Electing Provider is not currently offering
            service, or where there are insufficient
            facilities to meet the customer's request for
            service, subject to an Electing Provider's
            obligation for reasonable facilities planning.
        (3) Each Electing Provider shall provide to the
    Commission on a quarterly basis and in a form suitable for
    posting on the Commission's website in conformance with the
    rules adopted by the Commission and in effect on April 1,
    2010, a public report that includes the following data for
    basic local exchange service quality of service:
            (A) With regard to credits due in accordance with
        subdivision (e)(2)(A) as a result of out-of-service
        conditions lasting more than 30 hours:
                (i) the total dollar amount of any customer
            credits paid;
                (ii) the number of credits issued for repairs
            between 30 and 48 hours;
                (iii) the number of credits issued for repairs
            between 49 and 72 hours;
                (iv) the number of credits issued for repairs
            between 73 and 96 hours;
                (v) the number of credits used for repairs
            between 97 and 120 hours;
                (vi) the number of credits issued for repairs
            greater than 120 hours; and
                (vii) the number of exemptions claimed for
            each of the categories identified in subdivision
            (e)(2)(D).
            (B) With regard to credits due in accordance with
        subdivision (e)(2)(B) as a result of failure to install
        basic local exchange service:
                (i) the total dollar amount of any customer
            credits paid;
                (ii) the number of installations after 5
            business days;
                (iii) the number of installations after 10
            business days;
                (iv) the number of installations after 11
            business days; and
                (v) the number of exemptions claimed for each
            of the categories identified in subdivision
            (e)(2)(D).
            (C) With regard to credits due in accordance with
        subdivision (e)(2)(C) as a result of missed
        appointments:
                (i) the total dollar amount of any customer
            credits paid;
                (ii) the number of any customers receiving
            credits; and
                (iii) the number of exemptions claimed for
            each of the categories identified in subdivision
            (e)(2)(D).
            (D) The Electing Provider's annual report required
        by this subsection shall also include, for
        informational reporting, the performance data
        described in subdivisions (e)(2)(A), (e)(2)(B), and
        (e)(2)(C), and trouble reports per 100 access lines
        calculated using the Commission's existing applicable
        rules and regulations for such measures, including the
        requirements for service standards established in this
        Section.
        (4) It is the intent of the General Assembly that the
    service quality rules and customer credits in this
    subsection (e) of this Section and other enforcement
    mechanisms, including fines and penalties authorized by
    Section 13-305, shall apply on a nondiscriminatory basis to
    all Electing Providers. Accordingly, notwithstanding any
    provision of any service quality rules promulgated by the
    Commission, any alternative regulation plan adopted by the
    Commission, or any other order of the Commission, any
    Electing Provider that is subject to any other order of the
    Commission and that violates or fails to comply with the
    service quality standards promulgated pursuant to this
    subsection (e) or any other order of the Commission shall
    not be subject to any fines, penalties, customer credits,
    or enforcement mechanisms other than such fines or
    penalties or customer credits as may be imposed by the
    Commission in accordance with the provisions of this
    subsection (e) and Section 13-305, which are to be
    generally applicable to all Electing Providers. The amount
    of any fines or penalties imposed by the Commission for
    failure to comply with the requirements of this subsection
    (e) shall be an appropriate amount, taking into account, at
    a minimum, the Electing Provider's gross annual intrastate
    revenue; the frequency, duration, and recurrence of the
    violation; and the relative harm caused to the affected
    customers or other users of the network. In imposing fines
    and penalties, the Commission shall take into account
    compensation or credits paid by the Electing Provider to
    its customers pursuant to this subsection (e) in
    compensation for any violation found pursuant to this
    subsection (e), and in any event the fine or penalty shall
    not exceed an amount equal to the maximum amount of a civil
    penalty that may be imposed under Section 13-305.
        (5) An Electing Provider in each of the MSA or Exchange
    areas classified as competitive pursuant to subsection (c)
    of this Section shall fulfill the requirements in
    subdivision (e)(3) of this Section for 3 years after its
    notice of election becomes effective. After such 3 years,
    the requirements in subdivision (e)(3) of this Section
    shall not apply to such Electing Provider, except that,
    upon request from the Commission, the Electing Provider
    shall provide a report showing the number of credits and
    exemptions for the requested time period.
    (f) Commission jurisdiction over competitive retail
telecommunications services. Except as otherwise expressly
stated in this Section, the Commission shall thereafter have no
jurisdiction or authority over any aspect of competitive retail
telecommunications service of an Electing Provider in those
geographic areas included in the Electing Provider's notice of
election pursuant to subsection (b) of this Section or of a
retail telecommunications service classified as competitive
pursuant to Section 13-502 or subdivision (c)(5) of this
Section, heretofore subject to the jurisdiction of the
Commission, including but not limited to, any requirements of
this Article related to the terms, conditions, rates, quality
of service, availability, classification or any other aspect of
any competitive retail telecommunications services. No
telecommunications carrier shall commit any unfair or
deceptive act or practice in connection with any aspect of the
offering or provision of any competitive retail
telecommunications service. Nothing in this Article shall
limit or affect any provisions in the Consumer Fraud and
Deceptive Business Practices Act with respect to any unfair or
deceptive act or practice by a telecommunications carrier.
    (g) Commission authority over access services upon
election for market regulation.
        (1) As part of its Notice of Election for Market
    Regulation, the Electing Provider shall reduce its
    intrastate switched access rates to rates no higher than
    its interstate switched access rates in 4 installments. The
    first reduction must be made 30 days after submission of
    its complete application for Notice of Election for Market
    Regulation, and the Electing Provider must reduce its
    intrastate switched access rates by an amount equal to 33%
    of the difference between its current intrastate switched
    access rates and its current interstate switched access
    rates. The second reduction must be made no later than one
    year after the first reduction, and the Electing Provider
    must reduce its then current intrastate switched access
    rates by an amount equal to 41% of the difference between
    its then current intrastate switched access rates and its
    then current interstate switched access rates. The third
    reduction must be made no later than one year after the
    second reduction, and the Electing Provider must reduce its
    then current intrastate switched access rates by an amount
    equal to 50% of the difference between its then current
    intrastate switched access rate and its then current
    interstate switched access rates. The fourth reduction
    must be made on or before June 30, 2013, and the Electing
    Provider must reduce its intrastate switched access rate to
    mirror its then current interstate switched access rates
    and rate structure. Following the fourth reduction, each
    Electing Provider must continue to set its intrastate
    switched access rates to mirror its interstate switched
    access rates and rate structure. For purposes of this
    subsection, the rate for intrastate switched access
    service means the composite, per-minute rate for that
    service, including all applicable fixed and
    traffic-sensitive charges, including, but not limited to,
    carrier common line charges.
        (2) Nothing in paragraph (1) of this subsection (g)
    prohibits an Electing Provider from electing to offer
    intrastate switched access service at rates lower than its
    interstate switched access rates.
        (3) The Commission shall have no authority to order an
    Electing Provider to set its rates for intrastate switched
    access at a level lower than its interstate switched access
    rates.
        (4) The Commission's authority under this subsection
    (g) shall only apply to Electing Providers under Market
    Regulation. The Commission's authority over switched
    access services for all other carriers is retained under
    Section 13-900.2 of this Act.
    (h) Safety of service equipment and facilities.
        (1) An Electing Provider shall furnish, provide, and
    maintain such service instrumentalities, equipment, and
    facilities as shall promote the safety, health, comfort,
    and convenience of its patrons, employees, and public and
    as shall be in all respects adequate, reliable, and
    efficient without discrimination or delay. Every Electing
    Provider shall provide service and facilities that are in
    all respects environmentally safe.
        (2) The Commission is authorized to conduct an
    investigation of any Electing Provider or part thereof. The
    investigation may examine the reasonableness, prudence, or
    efficiency of any aspect of the Electing Provider's
    operations or functions that may affect the adequacy,
    safety, efficiency, or reliability of telecommunications
    service. The Commission may conduct or order an
    investigation only when it has reasonable grounds to
    believe that the investigation is necessary to assure that
    the Electing Provider is providing adequate, efficient,
    reliable, and safe service. The Commission shall, before
    initiating any such investigation, issue an order
    describing the grounds for the investigation and the
    appropriate scope and nature of the investigation, which
    shall be reasonably related to the grounds relied upon by
    the Commission in its order.
    (i) (Blank).
    (j) Application of Article VII. The provisions of Sections
7-101, 7-102, 7-104, 7-204, 7-205, and 7-206 of this Act are
applicable to an Electing Provider offering or providing retail
telecommunications service, and the Commission's regulation
thereof, except that (1) the approval of contracts and
arrangements with affiliated interests required by paragraph
(3) of Section 7-101 shall not apply to such telecommunications
carriers provided that, except as provided in item (2), those
contracts and arrangements shall be filed with the Commission;
(2) affiliated interest contracts or arrangements entered into
by such telecommunications carriers where the increased
obligation thereunder does not exceed the lesser of $5,000,000
or 5% of such carrier's prior annual revenue from
noncompetitive services are not required to be filed with the
Commission; and (3) any consent and approval of the Commission
required by Section 7-102 is not required for the sale, lease,
assignment, or transfer by any Electing Provider of any
property that is not necessary or useful in the performance of
its duties to the public.
    (k) Notwithstanding other provisions of this Section, the
Commission retains its existing authority to enforce the
provisions, conditions, and requirements of the following
Sections of this Article: 13-101, 13-103, 13-201, 13-301,
13-301.1, 13-301.2, 13-301.3, 13-303, 13-303.5, 13-304,
13-305, 13-401, 13-401.1, 13-402, 13-403, 13-404, 13-404.1,
13-404.2, 13-405, 13-406, 13-407, 13-501, 13-501.5, 13-503,
13-505, 13-509, 13-510, 13-512, 13-513, 13-514, 13-515,
13-516, 13-519, 13-702, 13-703, 13-704, 13-705, 13-706,
13-707, 13-709, 13-713, 13-801, 13-802.1, 13-804, 13-900,
13-900.1, 13-900.2, 13-901, 13-902, and 13-903, which are fully
and equally applicable to Electing Providers and to
telecommunications carriers providing retail
telecommunications service classified as competitive pursuant
to Section 13-502 or subdivision (c)(5) of this Section subject
to the provisions of this Section. On the effective date of
this amendatory Act of the 98th General Assembly, the following
Sections of this Article shall cease to apply to Electing
Providers and to telecommunications carriers providing retail
telecommunications service classified as competitive pursuant
to Section 13-502 or subdivision (c)(5) of this Section:
13-302, 13-405.1, 13-502, 13-502.5, 13-504, 13-505.2,
13-505.3, 13-505.4, 13-505.5, 13-505.6, 13-506.1, 13-507,
13-507.1, 13-508, 13-508.1, 13-517, 13-518, 13-601, 13-701,
and 13-712.
(Source: P.A. 99-6, eff. 6-29-15; 100-20, eff. 7-1-17.)
 
    (220 ILCS 5/13-515)
    (Section scheduled to be repealed on December 31, 2020)
    Sec. 13-515. Enforcement.
    (a) The following expedited procedures shall be used to
enforce the provisions of Section 13-514 of this Act, provided
that, for a violation of paragraph (8) of Section 13-514 to
qualify for the expedited procedures of this Section, the
violation must be in a manner that unreasonably delays,
increases the cost, or impedes the availability of
telecommunications services to consumers. However, the
Commission, the complainant, and the respondent may mutually
agree to adjust the procedures established in this Section.
    (b) (Blank).
    (c) No complaint may be filed under this Section until the
complainant has first notified the respondent of the alleged
violation and offered the respondent 48 hours to correct the
situation. Provision of notice and the opportunity to correct
the situation creates a rebuttable presumption of knowledge
under Section 13-514. After the filing of a complaint under
this Section, the parties may agree to follow the mediation
process under Section 10-101.1 of this Act. The time periods
specified in subdivision (d)(7) of this Section shall be tolled
during the time spent in mediation under Section 10-101.1.
    (d) A telecommunications carrier may file a complaint with
the Commission alleging a violation of Section 13-514 in
accordance with this subsection:
        (1) The complaint shall be filed with the Chief Clerk
    of the Commission and shall be served in hand upon the
    respondent, the executive director, and the general
    counsel of the Commission at the time of the filing.
        (2) A complaint filed under this subsection shall
    include a statement that the requirements of subsection (c)
    have been fulfilled and that the respondent did not correct
    the situation as requested.
        (3) Reasonable discovery specific to the issue of the
    complaint may commence upon filing of the complaint.
    Requests for discovery must be served in hand and responses
    to discovery must be provided in hand to the requester
    within 14 days after a request for discovery is made.
        (4) An answer and any other responsive pleading to the
    complaint shall be filed with the Commission and served in
    hand at the same time upon the complainant, the executive
    director, and the general counsel of the Commission within
    7 days after the date on which the complaint is filed.
        (5) If the answer or responsive pleading raises the
    issue that the complaint violates subsection (i) of this
    Section, the complainant may file a reply to such
    allegation within 3 days after actual service of such
    answer or responsive pleading. Within 4 days after the time
    for filing a reply has expired, the hearing officer or
    arbitrator shall either issue a written decision
    dismissing the complaint as frivolous in violation of
    subsection (i) of this Section including the reasons for
    such disposition or shall issue an order directing that the
    complaint shall proceed.
        (6) A pre-hearing conference shall be held within 14
    days after the date on which the complaint is filed.
        (7) The hearing shall commence within 30 days of the
    date on which the complaint is filed. The hearing may be
    conducted by an administrative law judge a hearing examiner
    or by an arbitrator. Parties and the Commission staff shall
    be entitled to present evidence and legal argument in oral
    or written form as deemed appropriate by the administrative
    law judge hearing examiner or arbitrator. The
    administrative law judge hearing examiner or arbitrator
    shall issue a written decision within 60 days after the
    date on which the complaint is filed. The decision shall
    include reasons for the disposition of the complaint and,
    if a violation of Section 13-514 is found, directions and a
    deadline for correction of the violation.
        (8) Any party may file a petition requesting the
    Commission to review the decision of the administrative law
    judge hearing examiner or arbitrator within 5 days of such
    decision. Any party may file a response to a petition for
    review within 3 business days after actual service of the
    petition. After the time for filing of the petition for
    review, but no later than 15 days after the decision of the
    administrative law judge hearing examiner or arbitrator,
    the Commission shall decide to adopt the decision of the
    administrative law judge hearing examiner or arbitrator or
    shall issue its own final order.
    (e) If the alleged violation has a substantial adverse
effect on the ability of the complainant to provide service to
customers, the complainant may include in its complaint a
request for an order for emergency relief. The Commission,
acting through its designated administrative law judge hearing
examiner or arbitrator, shall act upon such a request within 2
business days of the filing of the complaint. An order for
emergency relief may be granted, without an evidentiary
hearing, upon a verified factual showing that the party seeking
relief will likely succeed on the merits, that the party will
suffer irreparable harm in its ability to serve customers if
emergency relief is not granted, and that the order is in the
public interest. An order for emergency relief shall include a
finding that the requirements of this subsection have been
fulfilled and shall specify the directives that must be
fulfilled by the respondent and deadlines for meeting those
directives. The decision of the administrative law judge
hearing examiner or arbitrator to grant or deny emergency
relief shall be considered an order of the Commission unless
the Commission enters its own order within 2 calendar days of
the decision of the administrative law judge hearing examiner
or arbitrator. The order for emergency relief may require the
responding party to act or refrain from acting so as to protect
the provision of competitive service offerings to customers.
Any action required by an emergency relief order must be
technically feasible and economically reasonable and the
respondent must be given a reasonable period of time to comply
with the order.
    (f) The Commission is authorized to obtain outside
resources including, but not limited to, arbitrators and
consultants for the purposes of the hearings authorized by this
Section. Any arbitrator or consultant obtained by the
Commission shall be approved by both parties to the hearing.
The cost of such outside resources including, but not limited
to, arbitrators and consultants shall be borne by the parties.
The Commission shall review the bill for reasonableness and
assess the parties for reasonable costs dividing the costs
according to the resolution of the complaint brought under this
Section. Such costs shall be paid by the parties directly to
the arbitrators, consultants, and other providers of outside
resources within 60 days after receiving notice of the
assessments from the Commission. Interest at the statutory rate
shall accrue after expiration of the 60-day period. The
Commission, arbitrators, consultants, or other providers of
outside resources may apply to a court of competent
jurisdiction for an order requiring payment.
    (g) The Commission shall assess the parties under this
subsection for all of the Commission's costs of investigation
and conduct of the proceedings brought under this Section
including, but not limited to, the prorated salaries of staff,
attorneys, administrative law judges hearing examiners, and
support personnel and including any travel and per diem,
directly attributable to the complaint brought pursuant to this
Section, but excluding those costs provided for in subsection
(f), dividing the costs according to the resolution of the
complaint brought under this Section. All assessments made
under this subsection shall be paid into the Public Utility
Fund within 60 days after receiving notice of the assessments
from the Commission. Interest at the statutory rate shall
accrue after the expiration of the 60 day period. The
Commission is authorized to apply to a court of competent
jurisdiction for an order requiring payment.
    (h) If the Commission determines that there is an imminent
threat to competition or to the public interest, the Commission
may, notwithstanding any other provision of this Act, seek
temporary, preliminary, or permanent injunctive relief from a
court of competent jurisdiction either prior to or after the
hearing.
    (i) A party shall not bring or defend a proceeding brought
under this Section or assert or controvert an issue in a
proceeding brought under this Section, unless there is a
non-frivolous basis for doing so. By presenting a pleading,
written motion, or other paper in complaint or defense of the
actions or inaction of a party under this Section, a party is
certifying to the Commission that to the best of that party's
knowledge, information, and belief, formed after a reasonable
inquiry of the subject matter of the complaint or defense, that
the complaint or defense is well grounded in law and fact, and
under the circumstances:
        (1) it is not being presented to harass the other
    party, cause unnecessary delay in the provision of
    competitive telecommunications services to consumers, or
    create needless increases in the cost of litigation; and
        (2) the allegations and other factual contentions have
    evidentiary support or, if specifically so identified, are
    likely to have evidentiary support after reasonable
    opportunity for further investigation or discovery as
    defined herein.
    (j) If, after notice and a reasonable opportunity to
respond, the Commission determines that subsection (i) has been
violated, the Commission shall impose appropriate sanctions
upon the party or parties that have violated subsection (i) or
are responsible for the violation. The sanctions shall be not
more than $30,000, plus the amount of expenses accrued by the
Commission for conducting the hearing. Payment of sanctions
imposed under this subsection shall be made to the Common
School Fund within 30 days of imposition of such sanctions.
    (k) An appeal of a Commission Order made pursuant to this
Section shall not effectuate a stay of the Order unless a court
of competent jurisdiction specifically finds that the party
seeking the stay will likely succeed on the merits, that the
party will suffer irreparable harm without the stay, and that
the stay is in the public interest.
(Source: P.A. 100-20, eff. 7-1-17.)
 
    (220 ILCS 5/16-108.5)
    Sec. 16-108.5. Infrastructure investment and
modernization; regulatory reform.
    (a) (Blank).
    (b) For purposes of this Section, "participating utility"
means an electric utility or a combination utility serving more
than 1,000,000 customers in Illinois that voluntarily elects
and commits to undertake (i) the infrastructure investment
program consisting of the commitments and obligations
described in this subsection (b) and (ii) the customer
assistance program consisting of the commitments and
obligations described in subsection (b-10) of this Section,
notwithstanding any other provisions of this Act and without
obtaining any approvals from the Commission or any other agency
other than as set forth in this Section, regardless of whether
any such approval would otherwise be required. "Combination
utility" means a utility that, as of January 1, 2011, provided
electric service to at least one million retail customers in
Illinois and gas service to at least 500,000 retail customers
in Illinois. A participating utility shall recover the
expenditures made under the infrastructure investment program
through the ratemaking process, including, but not limited to,
the performance-based formula rate and process set forth in
this Section.
    During the infrastructure investment program's peak
program year, a participating utility other than a combination
utility shall create 2,000 full-time equivalent jobs in
Illinois, and a participating utility that is a combination
utility shall create 450 full-time equivalent jobs in Illinois
related to the provision of electric service. These jobs shall
include direct jobs, contractor positions, and induced jobs,
but shall not include any portion of a job commitment, not
specifically contingent on an amendatory Act of the 97th
General Assembly becoming law, between a participating utility
and a labor union that existed on December 30, 2011 (the
effective date of Public Act 97-646) and that has not yet been
fulfilled. A portion of the full-time equivalent jobs created
by each participating utility shall include incremental
personnel hired subsequent to December 30, 2011 (the effective
date of Public Act 97-646). For purposes of this Section, "peak
program year" means the consecutive 12-month period with the
highest number of full-time equivalent jobs that occurs between
the beginning of investment year 2 and the end of investment
year 4.
    A participating utility shall meet one of the following
commitments, as applicable:
        (1) Beginning no later than 180 days after a
    participating utility other than a combination utility
    files a performance-based formula rate tariff pursuant to
    subsection (c) of this Section, or, beginning no later than
    January 1, 2012 if such utility files such
    performance-based formula rate tariff within 14 days of
    October 26, 2011 (the effective date of Public Act 97-616),
    the participating utility shall, except as provided in
    subsection (b-5):
            (A) over a 5-year period, invest an estimated
        $1,300,000,000 in electric system upgrades,
        modernization projects, and training facilities,
        including, but not limited to:
                (i) distribution infrastructure improvements
            totaling an estimated $1,000,000,000, including
            underground residential distribution cable
            injection and replacement and mainline cable
            system refurbishment and replacement projects;
                (ii) training facility construction or upgrade
            projects totaling an estimated $10,000,000,
            provided that, at a minimum, one such facility
            shall be located in a municipality having a
            population of more than 2 million residents and one
            such facility shall be located in a municipality
            having a population of more than 150,000 residents
            but fewer than 170,000 residents; any such new
            facility located in a municipality having a
            population of more than 2 million residents must be
            designed for the purpose of obtaining, and the
            owner of the facility shall apply for,
            certification under the United States Green
            Building Council's Leadership in Energy Efficiency
            Design Green Building Rating System;
                (iii) wood pole inspection, treatment, and
            replacement programs;
                (iv) an estimated $200,000,000 for reducing
            the susceptibility of certain circuits to
            storm-related damage, including, but not limited
            to, high winds, thunderstorms, and ice storms;
            improvements may include, but are not limited to,
            overhead to underground conversion and other
            engineered outcomes for circuits; the
            participating utility shall prioritize the
            selection of circuits based on each circuit's
            historical susceptibility to storm-related damage
            and the ability to provide the greatest customer
            benefit upon completion of the improvements; to be
            eligible for improvement, the participating
            utility's ability to maintain proper tree
            clearances surrounding the overhead circuit must
            not have been impeded by third parties; and
            (B) over a 10-year period, invest an estimated
        $1,300,000,000 to upgrade and modernize its
        transmission and distribution infrastructure and in
        Smart Grid electric system upgrades, including, but
        not limited to:
                (i) additional smart meters;
                (ii) distribution automation;
                (iii) associated cyber secure data
            communication network; and
                (iv) substation micro-processor relay
            upgrades.
        (2) Beginning no later than 180 days after a
    participating utility that is a combination utility files a
    performance-based formula rate tariff pursuant to
    subsection (c) of this Section, or, beginning no later than
    January 1, 2012 if such utility files such
    performance-based formula rate tariff within 14 days of
    October 26, 2011 (the effective date of Public Act 97-616),
    the participating utility shall, except as provided in
    subsection (b-5):
            (A) over a 10-year period, invest an estimated
        $265,000,000 in electric system upgrades,
        modernization projects, and training facilities,
        including, but not limited to:
                (i) distribution infrastructure improvements
            totaling an estimated $245,000,000, which may
            include bulk supply substations, transformers,
            reconductoring, and rebuilding overhead
            distribution and sub-transmission lines,
            underground residential distribution cable
            injection and replacement and mainline cable
            system refurbishment and replacement projects;
                (ii) training facility construction or upgrade
            projects totaling an estimated $1,000,000; any
            such new facility must be designed for the purpose
            of obtaining, and the owner of the facility shall
            apply for, certification under the United States
            Green Building Council's Leadership in Energy
            Efficiency Design Green Building Rating System;
            and
                (iii) wood pole inspection, treatment, and
            replacement programs; and
            (B) over a 10-year period, invest an estimated
        $360,000,000 to upgrade and modernize its transmission
        and distribution infrastructure and in Smart Grid
        electric system upgrades, including, but not limited
        to:
                (i) additional smart meters;
                (ii) distribution automation;
                (iii) associated cyber secure data
            communication network; and
                (iv) substation micro-processor relay
            upgrades.
    For purposes of this Section, "Smart Grid electric system
upgrades" shall have the meaning set forth in subsection (a) of
Section 16-108.6 of this Act.
    The investments in the infrastructure investment program
described in this subsection (b) shall be incremental to the
participating utility's annual capital investment program, as
defined by, for purposes of this subsection (b), the
participating utility's average capital spend for calendar
years 2008, 2009, and 2010 as reported in the applicable
Federal Energy Regulatory Commission (FERC) Form 1; provided
that where one or more utilities have merged, the average
capital spend shall be determined using the aggregate of the
merged utilities' capital spend reported in FERC Form 1 for the
years 2008, 2009, and 2010. A participating utility may add
reasonable construction ramp-up and ramp-down time to the
investment periods specified in this subsection (b). For each
such investment period, the ramp-up and ramp-down time shall
not exceed a total of 6 months.
    Within 60 days after filing a tariff under subsection (c)
of this Section, a participating utility shall submit to the
Commission its plan, including scope, schedule, and staffing,
for satisfying its infrastructure investment program
commitments pursuant to this subsection (b). The submitted plan
shall include a schedule and staffing plan for the next
calendar year. The plan shall also include a plan for the
creation, operation, and administration of a Smart Grid test
bed as described in subsection (c) of Section 16-108.8. The
plan need not allocate the work equally over the respective
periods, but should allocate material increments throughout
such periods commensurate with the work to be undertaken. No
later than April 1 of each subsequent year, the utility shall
submit to the Commission a report that includes any updates to
the plan, a schedule for the next calendar year, the
expenditures made for the prior calendar year and cumulatively,
and the number of full-time equivalent jobs created for the
prior calendar year and cumulatively. If the utility is
materially deficient in satisfying a schedule or staffing plan,
then the report must also include a corrective action plan to
address the deficiency. The fact that the plan, implementation
of the plan, or a schedule changes shall not imply the
imprudence or unreasonableness of the infrastructure
investment program, plan, or schedule. Further, no later than
45 days following the last day of the first, second, and third
quarters of each year of the plan, a participating utility
shall submit to the Commission a verified quarterly report for
the prior quarter that includes (i) the total number of
full-time equivalent jobs created during the prior quarter,
(ii) the total number of employees as of the last day of the
prior quarter, (iii) the total number of full-time equivalent
hours in each job classification or job title, (iv) the total
number of incremental employees and contractors in support of
the investments undertaken pursuant to this subsection (b) for
the prior quarter, and (v) any other information that the
Commission may require by rule.
    With respect to the participating utility's peak job
commitment, if, after considering the utility's corrective
action plan and compliance thereunder, the Commission enters an
order finding, after notice and hearing, that a participating
utility did not satisfy its peak job commitment described in
this subsection (b) for reasons that are reasonably within its
control, then the Commission shall also determine, after
consideration of the evidence, including, but not limited to,
evidence submitted by the Department of Commerce and Economic
Opportunity and the utility, the deficiency in the number of
full-time equivalent jobs during the peak program year due to
such failure. The Commission shall notify the Department of any
proceeding that is initiated pursuant to this paragraph. For
each full-time equivalent job deficiency during the peak
program year that the Commission finds as set forth in this
paragraph, the participating utility shall, within 30 days
after the entry of the Commission's order, pay $6,000 to a fund
for training grants administered under Section 605-800 of the
Department of Commerce and Economic Opportunity Law, which
shall not be a recoverable expense.
    With respect to the participating utility's investment
amount commitments, if, after considering the utility's
corrective action plan and compliance thereunder, the
Commission enters an order finding, after notice and hearing,
that a participating utility is not satisfying its investment
amount commitments described in this subsection (b), then the
utility shall no longer be eligible to annually update the
performance-based formula rate tariff pursuant to subsection
(d) of this Section. In such event, the then current rates
shall remain in effect until such time as new rates are set
pursuant to Article IX of this Act, subject to retroactive
adjustment, with interest, to reconcile rates charged with
actual costs.
    If the Commission finds that a participating utility is no
longer eligible to update the performance-based formula rate
tariff pursuant to subsection (d) of this Section, or the
performance-based formula rate is otherwise terminated, then
the participating utility's voluntary commitments and
obligations under this subsection (b) shall immediately
terminate, except for the utility's obligation to pay an amount
already owed to the fund for training grants pursuant to a
Commission order.
    In meeting the obligations of this subsection (b), to the
extent feasible and consistent with State and federal law, the
investments under the infrastructure investment program should
provide employment opportunities for all segments of the
population and workforce, including minority-owned and
female-owned business enterprises, and shall not, consistent
with State and federal law, discriminate based on race or
socioeconomic status.
    (b-5) Nothing in this Section shall prohibit the Commission
from investigating the prudence and reasonableness of the
expenditures made under the infrastructure investment program
during the annual review required by subsection (d) of this
Section and shall, as part of such investigation, determine
whether the utility's actual costs under the program are
prudent and reasonable. The fact that a participating utility
invests more than the minimum amounts specified in subsection
(b) of this Section or its plan shall not imply imprudence or
unreasonableness.
    If the participating utility finds that it is implementing
its plan for satisfying the infrastructure investment program
commitments described in subsection (b) of this Section at a
cost below the estimated amounts specified in subsection (b) of
this Section, then the utility may file a petition with the
Commission requesting that it be permitted to satisfy its
commitments by spending less than the estimated amounts
specified in subsection (b) of this Section. The Commission
shall, after notice and hearing, enter its order approving, or
approving as modified, or denying each such petition within 150
days after the filing of the petition.
    In no event, absent General Assembly approval, shall the
capital investment costs incurred by a participating utility
other than a combination utility in satisfying its
infrastructure investment program commitments described in
subsection (b) of this Section exceed $3,000,000,000 or, for a
participating utility that is a combination utility,
$720,000,000. If the participating utility's updated cost
estimates for satisfying its infrastructure investment program
commitments described in subsection (b) of this Section exceed
the limitation imposed by this subsection (b-5), then it shall
submit a report to the Commission that identifies the increased
costs and explains the reason or reasons for the increased
costs no later than the year in which the utility estimates it
will exceed the limitation. The Commission shall review the
report and shall, within 90 days after the participating
utility files the report, report to the General Assembly its
findings regarding the participating utility's report. If the
General Assembly does not amend the limitation imposed by this
subsection (b-5), then the utility may modify its plan so as
not to exceed the limitation imposed by this subsection (b-5)
and may propose corresponding changes to the metrics
established pursuant to subparagraphs (5) through (8) of
subsection (f) of this Section, and the Commission may modify
the metrics and incremental savings goals established pursuant
to subsection (f) of this Section accordingly.
    (b-10) All participating utilities shall make
contributions for an energy low-income and support program in
accordance with this subsection. Beginning no later than 180
days after a participating utility files a performance-based
formula rate tariff pursuant to subsection (c) of this Section,
or beginning no later than January 1, 2012 if such utility
files such performance-based formula rate tariff within 14 days
of December 30, 2011 (the effective date of Public Act 97-646),
and without obtaining any approvals from the Commission or any
other agency other than as set forth in this Section,
regardless of whether any such approval would otherwise be
required, a participating utility other than a combination
utility shall pay $10,000,000 per year for 5 years and a
participating utility that is a combination utility shall pay
$1,000,000 per year for 10 years to the energy low-income and
support program, which is intended to fund customer assistance
programs with the primary purpose being avoidance of imminent
disconnection. Such programs may include:
        (1) a residential hardship program that may partner
    with community-based organizations, including senior
    citizen organizations, and provides grants to low-income
    residential customers, including low-income senior
    citizens, who demonstrate a hardship;
        (2) a program that provides grants and other bill
    payment concessions to veterans with disabilities who
    demonstrate a hardship and members of the armed services or
    reserve forces of the United States or members of the
    Illinois National Guard who are on active duty pursuant to
    an executive order of the President of the United States,
    an act of the Congress of the United States, or an order of
    the Governor and who demonstrate a hardship;
        (3) a budget assistance program that provides tools and
    education to low-income senior citizens to assist them with
    obtaining information regarding energy usage and effective
    means of managing energy costs;
        (4) a non-residential special hardship program that
    provides grants to non-residential customers such as small
    businesses and non-profit organizations that demonstrate a
    hardship, including those providing services to senior
    citizen and low-income customers; and
        (5) a performance-based assistance program that
    provides grants to encourage residential customers to make
    on-time payments by matching a portion of the customer's
    payments or providing credits towards arrearages.
    The payments made by a participating utility pursuant to
this subsection (b-10) shall not be a recoverable expense. A
participating utility may elect to fund either new or existing
customer assistance programs, including, but not limited to,
those that are administered by the utility.
    Programs that use funds that are provided by a
participating utility to reduce utility bills may be
implemented through tariffs that are filed with and reviewed by
the Commission. If a utility elects to file tariffs with the
Commission to implement all or a portion of the programs, those
tariffs shall, regardless of the date actually filed, be deemed
accepted and approved, and shall become effective on December
30, 2011 (the effective date of Public Act 97-646). The
participating utilities whose customers benefit from the funds
that are disbursed as contemplated in this Section shall file
annual reports documenting the disbursement of those funds with
the Commission. The Commission has the authority to audit
disbursement of the funds to ensure they were disbursed
consistently with this Section.
    If the Commission finds that a participating utility is no
longer eligible to update the performance-based formula rate
tariff pursuant to subsection (d) of this Section, or the
performance-based formula rate is otherwise terminated, then
the participating utility's voluntary commitments and
obligations under this subsection (b-10) shall immediately
terminate.
    (c) A participating utility may elect to recover its
delivery services costs through a performance-based formula
rate approved by the Commission, which shall specify the cost
components that form the basis of the rate charged to customers
with sufficient specificity to operate in a standardized manner
and be updated annually with transparent information that
reflects the utility's actual costs to be recovered during the
applicable rate year, which is the period beginning with the
first billing day of January and extending through the last
billing day of the following December. In the event the utility
recovers a portion of its costs through automatic adjustment
clause tariffs on October 26, 2011 (the effective date of
Public Act 97-616), the utility may elect to continue to
recover these costs through such tariffs, but then these costs
shall not be recovered through the performance-based formula
rate. In the event the participating utility, prior to December
30, 2011 (the effective date of Public Act 97-646), filed
electric delivery services tariffs with the Commission
pursuant to Section 9-201 of this Act that are related to the
recovery of its electric delivery services costs that are still
pending on December 30, 2011 (the effective date of Public Act
97-646), the participating utility shall, at the time it files
its performance-based formula rate tariff with the Commission,
also file a notice of withdrawal with the Commission to
withdraw the electric delivery services tariffs previously
filed pursuant to Section 9-201 of this Act. Upon receipt of
such notice, the Commission shall dismiss with prejudice any
docket that had been initiated to investigate the electric
delivery services tariffs filed pursuant to Section 9-201 of
this Act, and such tariffs and the record related thereto shall
not be the subject of any further hearing, investigation, or
proceeding of any kind related to rates for electric delivery
services.
    The performance-based formula rate shall be implemented
through a tariff filed with the Commission consistent with the
provisions of this subsection (c) that shall be applicable to
all delivery services customers. The Commission shall initiate
and conduct an investigation of the tariff in a manner
consistent with the provisions of this subsection (c) and the
provisions of Article IX of this Act to the extent they do not
conflict with this subsection (c). Except in the case where the
Commission finds, after notice and hearing, that a
participating utility is not satisfying its investment amount
commitments under subsection (b) of this Section, the
performance-based formula rate shall remain in effect at the
discretion of the utility. The performance-based formula rate
approved by the Commission shall do the following:
        (1) Provide for the recovery of the utility's actual
    costs of delivery services that are prudently incurred and
    reasonable in amount consistent with Commission practice
    and law. The sole fact that a cost differs from that
    incurred in a prior calendar year or that an investment is
    different from that made in a prior calendar year shall not
    imply the imprudence or unreasonableness of that cost or
    investment.
        (2) Reflect the utility's actual year-end capital
    structure for the applicable calendar year, excluding
    goodwill, subject to a determination of prudence and
    reasonableness consistent with Commission practice and
    law. To enable the financing of the incremental capital
    expenditures, including regulatory assets, for electric
    utilities that serve less than 3,000,000 retail customers
    but more than 500,000 retail customers in the State, a
    participating electric utility's actual year-end capital
    structure that includes a common equity ratio, excluding
    goodwill, of up to and including 50% of the total capital
    structure shall be deemed reasonable and used to set rates.
        (3) Include a cost of equity, which shall be calculated
    as the sum of the following:
            (A) the average for the applicable calendar year of
        the monthly average yields of 30-year U.S. Treasury
        bonds published by the Board of Governors of the
        Federal Reserve System in its weekly H.15 Statistical
        Release or successor publication; and
            (B) 580 basis points.
        At such time as the Board of Governors of the Federal
    Reserve System ceases to include the monthly average yields
    of 30-year U.S. Treasury bonds in its weekly H.15
    Statistical Release or successor publication, the monthly
    average yields of the U.S. Treasury bonds then having the
    longest duration published by the Board of Governors in its
    weekly H.15 Statistical Release or successor publication
    shall instead be used for purposes of this paragraph (3).
        (4) Permit and set forth protocols, subject to a
    determination of prudence and reasonableness consistent
    with Commission practice and law, for the following:
            (A) recovery of incentive compensation expense
        that is based on the achievement of operational
        metrics, including metrics related to budget controls,
        outage duration and frequency, safety, customer
        service, efficiency and productivity, and
        environmental compliance. Incentive compensation
        expense that is based on net income or an affiliate's
        earnings per share shall not be recoverable under the
        performance-based formula rate;
            (B) recovery of pension and other post-employment
        benefits expense, provided that such costs are
        supported by an actuarial study;
            (C) recovery of severance costs, provided that if
        the amount is over $3,700,000 for a participating
        utility that is a combination utility or $10,000,000
        for a participating utility that serves more than 3
        million retail customers, then the full amount shall be
        amortized consistent with subparagraph (F) of this
        paragraph (4);
            (D) investment return at a rate equal to the
        utility's weighted average cost of long-term debt, on
        the pension assets as, and in the amount, reported in
        Account 186 (or in such other Account or Accounts as
        such asset may subsequently be recorded) of the
        utility's most recently filed FERC Form 1, net of
        deferred tax benefits;
            (E) recovery of the expenses related to the
        Commission proceeding under this subsection (c) to
        approve this performance-based formula rate and
        initial rates or to subsequent proceedings related to
        the formula, provided that the recovery shall be
        amortized over a 3-year period; recovery of expenses
        related to the annual Commission proceedings under
        subsection (d) of this Section to review the inputs to
        the performance-based formula rate shall be expensed
        and recovered through the performance-based formula
        rate;
            (F) amortization over a 5-year period of the full
        amount of each charge or credit that exceeds $3,700,000
        for a participating utility that is a combination
        utility or $10,000,000 for a participating utility
        that serves more than 3 million retail customers in the
        applicable calendar year and that relates to a
        workforce reduction program's severance costs, changes
        in accounting rules, changes in law, compliance with
        any Commission-initiated audit, or a single storm or
        other similar expense, provided that any unamortized
        balance shall be reflected in rate base. For purposes
        of this subparagraph (F), changes in law includes any
        enactment, repeal, or amendment in a law, ordinance,
        rule, regulation, interpretation, permit, license,
        consent, or order, including those relating to taxes,
        accounting, or to environmental matters, or in the
        interpretation or application thereof by any
        governmental authority occurring after October 26,
        2011 (the effective date of Public Act 97-616);
            (G) recovery of existing regulatory assets over
        the periods previously authorized by the Commission;
            (H) historical weather normalized billing
        determinants; and
            (I) allocation methods for common costs.
        (5) Provide that if the participating utility's earned
    rate of return on common equity related to the provision of
    delivery services for the prior rate year (calculated using
    costs and capital structure approved by the Commission as
    provided in subparagraph (2) of this subsection (c),
    consistent with this Section, in accordance with
    Commission rules and orders, including, but not limited to,
    adjustments for goodwill, and after any Commission-ordered
    disallowances and taxes) is more than 50 basis points
    higher than the rate of return on common equity calculated
    pursuant to paragraph (3) of this subsection (c) (after
    adjusting for any penalties to the rate of return on common
    equity applied pursuant to the performance metrics
    provision of subsection (f) of this Section), then the
    participating utility shall apply a credit through the
    performance-based formula rate that reflects an amount
    equal to the value of that portion of the earned rate of
    return on common equity that is more than 50 basis points
    higher than the rate of return on common equity calculated
    pursuant to paragraph (3) of this subsection (c) (after
    adjusting for any penalties to the rate of return on common
    equity applied pursuant to the performance metrics
    provision of subsection (f) of this Section) for the prior
    rate year, adjusted for taxes. If the participating
    utility's earned rate of return on common equity related to
    the provision of delivery services for the prior rate year
    (calculated using costs and capital structure approved by
    the Commission as provided in subparagraph (2) of this
    subsection (c), consistent with this Section, in
    accordance with Commission rules and orders, including,
    but not limited to, adjustments for goodwill, and after any
    Commission-ordered disallowances and taxes) is more than
    50 basis points less than the return on common equity
    calculated pursuant to paragraph (3) of this subsection (c)
    (after adjusting for any penalties to the rate of return on
    common equity applied pursuant to the performance metrics
    provision of subsection (f) of this Section), then the
    participating utility shall apply a charge through the
    performance-based formula rate that reflects an amount
    equal to the value of that portion of the earned rate of
    return on common equity that is more than 50 basis points
    less than the rate of return on common equity calculated
    pursuant to paragraph (3) of this subsection (c) (after
    adjusting for any penalties to the rate of return on common
    equity applied pursuant to the performance metrics
    provision of subsection (f) of this Section) for the prior
    rate year, adjusted for taxes.
        (6) Provide for an annual reconciliation, as described
    in subsection (d) of this Section, with interest, of the
    revenue requirement reflected in rates for each calendar
    year, beginning with the calendar year in which the utility
    files its performance-based formula rate tariff pursuant
    to subsection (c) of this Section, with what the revenue
    requirement would have been had the actual cost information
    for the applicable calendar year been available at the
    filing date.
    The utility shall file, together with its tariff, final
data based on its most recently filed FERC Form 1, plus
projected plant additions and correspondingly updated
depreciation reserve and expense for the calendar year in which
the tariff and data are filed, that shall populate the
performance-based formula rate and set the initial delivery
services rates under the formula. For purposes of this Section,
"FERC Form 1" means the Annual Report of Major Electric
Utilities, Licensees and Others that electric utilities are
required to file with the Federal Energy Regulatory Commission
under the Federal Power Act, Sections 3, 4(a), 304 and 209,
modified as necessary to be consistent with 83 Ill. Admin. Code
Part 415 as of May 1, 2011. Nothing in this Section is intended
to allow costs that are not otherwise recoverable to be
recoverable by virtue of inclusion in FERC Form 1.
    After the utility files its proposed performance-based
formula rate structure and protocols and initial rates, the
Commission shall initiate a docket to review the filing. The
Commission shall enter an order approving, or approving as
modified, the performance-based formula rate, including the
initial rates, as just and reasonable within 270 days after the
date on which the tariff was filed, or, if the tariff is filed
within 14 days after October 26, 2011 (the effective date of
Public Act 97-616), then by May 31, 2012. Such review shall be
based on the same evidentiary standards, including, but not
limited to, those concerning the prudence and reasonableness of
the costs incurred by the utility, the Commission applies in a
hearing to review a filing for a general increase in rates
under Article IX of this Act. The initial rates shall take
effect within 30 days after the Commission's order approving
the performance-based formula rate tariff.
    Until such time as the Commission approves a different rate
design and cost allocation pursuant to subsection (e) of this
Section, rate design and cost allocation across customer
classes shall be consistent with the Commission's most recent
order regarding the participating utility's request for a
general increase in its delivery services rates.
    Subsequent changes to the performance-based formula rate
structure or protocols shall be made as set forth in Section
9-201 of this Act, but nothing in this subsection (c) is
intended to limit the Commission's authority under Article IX
and other provisions of this Act to initiate an investigation
of a participating utility's performance-based formula rate
tariff, provided that any such changes shall be consistent with
paragraphs (1) through (6) of this subsection (c). Any change
ordered by the Commission shall be made at the same time new
rates take effect following the Commission's next order
pursuant to subsection (d) of this Section, provided that the
new rates take effect no less than 30 days after the date on
which the Commission issues an order adopting the change.
    A participating utility that files a tariff pursuant to
this subsection (c) must submit a one-time $200,000 filing fee
at the time the Chief Clerk of the Commission accepts the
filing, which shall be a recoverable expense.
    In the event the performance-based formula rate is
terminated, the then current rates shall remain in effect until
such time as new rates are set pursuant to Article IX of this
Act, subject to retroactive rate adjustment, with interest, to
reconcile rates charged with actual costs. At such time that
the performance-based formula rate is terminated, the
participating utility's voluntary commitments and obligations
under subsection (b) of this Section shall immediately
terminate, except for the utility's obligation to pay an amount
already owed to the fund for training grants pursuant to a
Commission order issued under subsection (b) of this Section.
    (d) Subsequent to the Commission's issuance of an order
approving the utility's performance-based formula rate
structure and protocols, and initial rates under subsection (c)
of this Section, the utility shall file, on or before May 1 of
each year, with the Chief Clerk of the Commission its updated
cost inputs to the performance-based formula rate for the
applicable rate year and the corresponding new charges. Each
such filing shall conform to the following requirements and
include the following information:
        (1) The inputs to the performance-based formula rate
    for the applicable rate year shall be based on final
    historical data reflected in the utility's most recently
    filed annual FERC Form 1 plus projected plant additions and
    correspondingly updated depreciation reserve and expense
    for the calendar year in which the inputs are filed. The
    filing shall also include a reconciliation of the revenue
    requirement that was in effect for the prior rate year (as
    set by the cost inputs for the prior rate year) with the
    actual revenue requirement for the prior rate year
    (determined using a year-end rate base) that uses amounts
    reflected in the applicable FERC Form 1 that reports the
    actual costs for the prior rate year. Any over-collection
    or under-collection indicated by such reconciliation shall
    be reflected as a credit against, or recovered as an
    additional charge to, respectively, with interest
    calculated at a rate equal to the utility's weighted
    average cost of capital approved by the Commission for the
    prior rate year, the charges for the applicable rate year.
    Provided, however, that the first such reconciliation
    shall be for the calendar year in which the utility files
    its performance-based formula rate tariff pursuant to
    subsection (c) of this Section and shall reconcile (i) the
    revenue requirement or requirements established by the
    rate order or orders in effect from time to time during
    such calendar year (weighted, as applicable) with (ii) the
    revenue requirement determined using a year-end rate base
    for that calendar year calculated pursuant to the
    performance-based formula rate using (A) actual costs for
    that year as reflected in the applicable FERC Form 1, and
    (B) for the first such reconciliation only, the cost of
    equity, which shall be calculated as the sum of 590 basis
    points plus the average for the applicable calendar year of
    the monthly average yields of 30-year U.S. Treasury bonds
    published by the Board of Governors of the Federal Reserve
    System in its weekly H.15 Statistical Release or successor
    publication. The first such reconciliation is not intended
    to provide for the recovery of costs previously excluded
    from rates based on a prior Commission order finding of
    imprudence or unreasonableness. Each reconciliation shall
    be certified by the participating utility in the same
    manner that FERC Form 1 is certified. The filing shall also
    include the charge or credit, if any, resulting from the
    calculation required by paragraph (6) of subsection (c) of
    this Section.
        Notwithstanding anything that may be to the contrary,
    the intent of the reconciliation is to ultimately reconcile
    the revenue requirement reflected in rates for each
    calendar year, beginning with the calendar year in which
    the utility files its performance-based formula rate
    tariff pursuant to subsection (c) of this Section, with
    what the revenue requirement determined using a year-end
    rate base for the applicable calendar year would have been
    had the actual cost information for the applicable calendar
    year been available at the filing date.
        (2) The new charges shall take effect beginning on the
    first billing day of the following January billing period
    and remain in effect through the last billing day of the
    next December billing period regardless of whether the
    Commission enters upon a hearing pursuant to this
    subsection (d).
        (3) The filing shall include relevant and necessary
    data and documentation for the applicable rate year that is
    consistent with the Commission's rules applicable to a
    filing for a general increase in rates or any rules adopted
    by the Commission to implement this Section. Normalization
    adjustments shall not be required. Notwithstanding any
    other provision of this Section or Act or any rule or other
    requirement adopted by the Commission, a participating
    utility that is a combination utility with more than one
    rate zone shall not be required to file a separate set of
    such data and documentation for each rate zone and may
    combine such data and documentation into a single set of
    schedules.
    Within 45 days after the utility files its annual update of
cost inputs to the performance-based formula rate, the
Commission shall have the authority, either upon complaint or
its own initiative, but with reasonable notice, to enter upon a
hearing concerning the prudence and reasonableness of the costs
incurred by the utility to be recovered during the applicable
rate year that are reflected in the inputs to the
performance-based formula rate derived from the utility's FERC
Form 1. During the course of the hearing, each objection shall
be stated with particularity and evidence provided in support
thereof, after which the utility shall have the opportunity to
rebut the evidence. Discovery shall be allowed consistent with
the Commission's Rules of Practice, which Rules shall be
enforced by the Commission or the assigned administrative law
judge hearing examiner. The Commission shall apply the same
evidentiary standards, including, but not limited to, those
concerning the prudence and reasonableness of the costs
incurred by the utility, in the hearing as it would apply in a
hearing to review a filing for a general increase in rates
under Article IX of this Act. The Commission shall not,
however, have the authority in a proceeding under this
subsection (d) to consider or order any changes to the
structure or protocols of the performance-based formula rate
approved pursuant to subsection (c) of this Section. In a
proceeding under this subsection (d), the Commission shall
enter its order no later than the earlier of 240 days after the
utility's filing of its annual update of cost inputs to the
performance-based formula rate or December 31. The
Commission's determinations of the prudence and reasonableness
of the costs incurred for the applicable calendar year shall be
final upon entry of the Commission's order and shall not be
subject to reopening, reexamination, or collateral attack in
any other Commission proceeding, case, docket, order, rule or
regulation, provided, however, that nothing in this subsection
(d) shall prohibit a party from petitioning the Commission to
rehear or appeal to the courts the order pursuant to the
provisions of this Act.
    In the event the Commission does not, either upon complaint
or its own initiative, enter upon a hearing within 45 days
after the utility files the annual update of cost inputs to its
performance-based formula rate, then the costs incurred for the
applicable calendar year shall be deemed prudent and
reasonable, and the filed charges shall not be subject to
reopening, reexamination, or collateral attack in any other
proceeding, case, docket, order, rule, or regulation.
    A participating utility's first filing of the updated cost
inputs, and any Commission investigation of such inputs
pursuant to this subsection (d) shall proceed notwithstanding
the fact that the Commission's investigation under subsection
(c) of this Section is still pending and notwithstanding any
other law, order, rule, or Commission practice to the contrary.
    (e) Nothing in subsections (c) or (d) of this Section shall
prohibit the Commission from investigating, or a participating
utility from filing, revenue-neutral tariff changes related to
rate design of a performance-based formula rate that has been
placed into effect for the utility. Following approval of a
participating utility's performance-based formula rate tariff
pursuant to subsection (c) of this Section, the utility shall
make a filing with the Commission within one year after the
effective date of the performance-based formula rate tariff
that proposes changes to the tariff to incorporate the findings
of any final rate design orders of the Commission applicable to
the participating utility and entered subsequent to the
Commission's approval of the tariff. The Commission shall,
after notice and hearing, enter its order approving, or
approving with modification, the proposed changes to the
performance-based formula rate tariff within 240 days after the
utility's filing. Following such approval, the utility shall
make a filing with the Commission during each subsequent 3-year
period that either proposes revenue-neutral tariff changes or
re-files the existing tariffs without change, which shall
present the Commission with an opportunity to suspend the
tariffs and consider revenue-neutral tariff changes related to
rate design.
    (f) Within 30 days after the filing of a tariff pursuant to
subsection (c) of this Section, each participating utility
shall develop and file with the Commission multi-year metrics
designed to achieve, ratably (i.e., in equal segments) over a
10-year period, improvement over baseline performance values
as follows:
        (1) Twenty percent improvement in the System Average
    Interruption Frequency Index, using a baseline of the
    average of the data from 2001 through 2010.
        (2) Fifteen percent improvement in the system Customer
    Average Interruption Duration Index, using a baseline of
    the average of the data from 2001 through 2010.
        (3) For a participating utility other than a
    combination utility, 20% improvement in the System Average
    Interruption Frequency Index for its Southern Region,
    using a baseline of the average of the data from 2001
    through 2010. For purposes of this paragraph (3), Southern
    Region shall have the meaning set forth in the
    participating utility's most recent report filed pursuant
    to Section 16-125 of this Act.
        (3.5) For a participating utility other than a
    combination utility, 20% improvement in the System Average
    Interruption Frequency Index for its Northeastern Region,
    using a baseline of the average of the data from 2001
    through 2010. For purposes of this paragraph (3.5),
    Northeastern Region shall have the meaning set forth in the
    participating utility's most recent report filed pursuant
    to Section 16-125 of this Act.
        (4) Seventy-five percent improvement in the total
    number of customers who exceed the service reliability
    targets as set forth in subparagraphs (A) through (C) of
    paragraph (4) of subsection (b) of 83 Ill. Admin. Code Part
    411.140 as of May 1, 2011, using 2010 as the baseline year.
        (5) Reduction in issuance of estimated electric bills:
    90% improvement for a participating utility other than a
    combination utility, and 56% improvement for a
    participating utility that is a combination utility, using
    a baseline of the average number of estimated bills for the
    years 2008 through 2010.
        (6) Consumption on inactive meters: 90% improvement
    for a participating utility other than a combination
    utility, and 56% improvement for a participating utility
    that is a combination utility, using a baseline of the
    average unbilled kilowatthours for the years 2009 and 2010.
        (7) Unaccounted for energy: 50% improvement for a
    participating utility other than a combination utility
    using a baseline of the non-technical line loss unaccounted
    for energy kilowatthours for the year 2009.
        (8) Uncollectible expense: reduce uncollectible
    expense by at least $30,000,000 for a participating utility
    other than a combination utility and by at least $3,500,000
    for a participating utility that is a combination utility,
    using a baseline of the average uncollectible expense for
    the years 2008 through 2010.
        (9) Opportunities for minority-owned and female-owned
    business enterprises: design a performance metric
    regarding the creation of opportunities for minority-owned
    and female-owned business enterprises consistent with
    State and federal law using a base performance value of the
    percentage of the participating utility's capital
    expenditures that were paid to minority-owned and
    female-owned business enterprises in 2010.
    The definitions set forth in 83 Ill. Admin. Code Part
411.20 as of May 1, 2011 shall be used for purposes of
calculating performance under paragraphs (1) through (3.5) of
this subsection (f), provided, however, that the participating
utility may exclude up to 9 extreme weather event days from
such calculation for each year, and provided further that the
participating utility shall exclude 9 extreme weather event
days when calculating each year of the baseline period to the
extent that there are 9 such days in a given year of the
baseline period. For purposes of this Section, an extreme
weather event day is a 24-hour calendar day (beginning at 12:00
a.m. and ending at 11:59 p.m.) during which any weather event
(e.g., storm, tornado) caused interruptions for 10,000 or more
of the participating utility's customers for 3 hours or more.
If there are more than 9 extreme weather event days in a year,
then the utility may choose no more than 9 extreme weather
event days to exclude, provided that the same extreme weather
event days are excluded from each of the calculations performed
under paragraphs (1) through (3.5) of this subsection (f).
    The metrics shall include incremental performance goals
for each year of the 10-year period, which shall be designed to
demonstrate that the utility is on track to achieve the
performance goal in each category at the end of the 10-year
period. The utility shall elect when the 10-year period shall
commence for the metrics set forth in subparagraphs (1) through
(4) and (9) of this subsection (f), provided that it begins no
later than 14 months following the date on which the utility
begins investing pursuant to subsection (b) of this Section,
and when the 10-year period shall commence for the metrics set
forth in subparagraphs (5) through (8) of this subsection (f),
provided that it begins no later than 14 months following the
date on which the Commission enters its order approving the
utility's Advanced Metering Infrastructure Deployment Plan
pursuant to subsection (c) of Section 16-108.6 of this Act.
    The metrics and performance goals set forth in
subparagraphs (5) through (8) of this subsection (f) are based
on the assumptions that the participating utility may fully
implement the technology described in subsection (b) of this
Section, including utilizing the full functionality of such
technology and that there is no requirement for personal
on-site notification. If the utility is unable to meet the
metrics and performance goals set forth in subparagraphs (5)
through (8) of this subsection (f) for such reasons, and the
Commission so finds after notice and hearing, then the utility
shall be excused from compliance, but only to the limited
extent achievement of the affected metrics and performance
goals was hindered by the less than full implementation.
    (f-5) The financial penalties applicable to the metrics
described in subparagraphs (1) through (8) of subsection (f) of
this Section, as applicable, shall be applied through an
adjustment to the participating utility's return on equity of
no more than a total of 30 basis points in each of the first 3
years, of no more than a total of 34 basis points in each of the
3 years thereafter, and of no more than a total of 38 basis
points in each of the 4 years thereafter, as follows:
        (1) With respect to each of the incremental annual
    performance goals established pursuant to paragraph (1) of
    subsection (f) of this Section,
            (A) for each year that a participating utility
        other than a combination utility does not achieve the
        annual goal, the participating utility's return on
        equity shall be reduced as follows: during years 1
        through 3, by 5 basis points; during years 4 through 6,
        by 6 basis points; and during years 7 through 10, by 7
        basis points; and
            (B) for each year that a participating utility that
        is a combination utility does not achieve the annual
        goal, the participating utility's return on equity
        shall be reduced as follows: during years 1 through 3,
        by 10 basis points; during years 4 through 6, by 12
        basis points; and during years 7 through 10, by 14
        basis points.
        (2) With respect to each of the incremental annual
    performance goals established pursuant to paragraph (2) of
    subsection (f) of this Section, for each year that the
    participating utility does not achieve each such goal, the
    participating utility's return on equity shall be reduced
    as follows: during years 1 through 3, by 5 basis points;
    during years 4 through 6, by 6 basis points; and during
    years 7 through 10, by 7 basis points.
        (3) With respect to each of the incremental annual
    performance goals established pursuant to paragraphs (3)
    and (3.5) of subsection (f) of this Section, for each year
    that a participating utility other than a combination
    utility does not achieve both such goals, the participating
    utility's return on equity shall be reduced as follows:
    during years 1 through 3, by 5 basis points; during years 4
    through 6, by 6 basis points; and during years 7 through
    10, by 7 basis points.
        (4) With respect to each of the incremental annual
    performance goals established pursuant to paragraph (4) of
    subsection (f) of this Section, for each year that the
    participating utility does not achieve each such goal, the
    participating utility's return on equity shall be reduced
    as follows: during years 1 through 3, by 5 basis points;
    during years 4 through 6, by 6 basis points; and during
    years 7 through 10, by 7 basis points.
        (5) With respect to each of the incremental annual
    performance goals established pursuant to subparagraph (5)
    of subsection (f) of this Section, for each year that the
    participating utility does not achieve at least 95% of each
    such goal, the participating utility's return on equity
    shall be reduced by 5 basis points for each such unachieved
    goal.
        (6) With respect to each of the incremental annual
    performance goals established pursuant to paragraphs (6),
    (7), and (8) of subsection (f) of this Section, as
    applicable, which together measure non-operational
    customer savings and benefits relating to the
    implementation of the Advanced Metering Infrastructure
    Deployment Plan, as defined in Section 16-108.6 of this
    Act, the performance under each such goal shall be
    calculated in terms of the percentage of the goal achieved.
    The percentage of goal achieved for each of the goals shall
    be aggregated, and an average percentage value calculated,
    for each year of the 10-year period. If the utility does
    not achieve an average percentage value in a given year of
    at least 95%, the participating utility's return on equity
    shall be reduced by 5 basis points.
    The financial penalties shall be applied as described in
this subsection (f-5) for the 12-month period in which the
deficiency occurred through a separate tariff mechanism, which
shall be filed by the utility together with its metrics. In the
event the formula rate tariff established pursuant to
subsection (c) of this Section terminates, the utility's
obligations under subsection (f) of this Section and this
subsection (f-5) shall also terminate, provided, however, that
the tariff mechanism established pursuant to subsection (f) of
this Section and this subsection (f-5) shall remain in effect
until any penalties due and owing at the time of such
termination are applied.
    The Commission shall, after notice and hearing, enter an
order within 120 days after the metrics are filed approving, or
approving with modification, a participating utility's tariff
or mechanism to satisfy the metrics set forth in subsection (f)
of this Section. On June 1 of each subsequent year, each
participating utility shall file a report with the Commission
that includes, among other things, a description of how the
participating utility performed under each metric and an
identification of any extraordinary events that adversely
impacted the utility's performance. Whenever a participating
utility does not satisfy the metrics required pursuant to
subsection (f) of this Section, the Commission shall, after
notice and hearing, enter an order approving financial
penalties in accordance with this subsection (f-5). The
Commission-approved financial penalties shall be applied
beginning with the next rate year. Nothing in this Section
shall authorize the Commission to reduce or otherwise obviate
the imposition of financial penalties for failing to achieve
one or more of the metrics established pursuant to subparagraph
(1) through (4) of subsection (f) of this Section.
    (g) On or before July 31, 2014, each participating utility
shall file a report with the Commission that sets forth the
average annual increase in the average amount paid per
kilowatthour for residential eligible retail customers,
exclusive of the effects of energy efficiency programs,
comparing the 12-month period ending May 31, 2012; the 12-month
period ending May 31, 2013; and the 12-month period ending May
31, 2014. For a participating utility that is a combination
utility with more than one rate zone, the weighted average
aggregate increase shall be provided. The report shall be filed
together with a statement from an independent auditor attesting
to the accuracy of the report. The cost of the independent
auditor shall be borne by the participating utility and shall
not be a recoverable expense. "The average amount paid per
kilowatthour" shall be based on the participating utility's
tariffed rates actually in effect and shall not be calculated
using any hypothetical rate or adjustments to actual charges
(other than as specified for energy efficiency) as an input.
    In the event that the average annual increase exceeds 2.5%
as calculated pursuant to this subsection (g), then Sections
16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other
than this subsection, shall be inoperative as they relate to
the utility and its service area as of the date of the report
due to be submitted pursuant to this subsection and the utility
shall no longer be eligible to annually update the
performance-based formula rate tariff pursuant to subsection
(d) of this Section. In such event, the then current rates
shall remain in effect until such time as new rates are set
pursuant to Article IX of this Act, subject to retroactive
adjustment, with interest, to reconcile rates charged with
actual costs, and the participating utility's voluntary
commitments and obligations under subsection (b) of this
Section shall immediately terminate, except for the utility's
obligation to pay an amount already owed to the fund for
training grants pursuant to a Commission order issued under
subsection (b) of this Section.
    In the event that the average annual increase is 2.5% or
less as calculated pursuant to this subsection (g), then the
performance-based formula rate shall remain in effect as set
forth in this Section.
    For purposes of this Section, the amount per kilowatthour
means the total amount paid for electric service expressed on a
per kilowatthour basis, and the total amount paid for electric
service includes without limitation amounts paid for supply,
transmission, distribution, surcharges, and add-on taxes
exclusive of any increases in taxes or new taxes imposed after
October 26, 2011 (the effective date of Public Act 97-616). For
purposes of this Section, "eligible retail customers" shall
have the meaning set forth in Section 16-111.5 of this Act.
    The fact that this Section becomes inoperative as set forth
in this subsection shall not be construed to mean that the
Commission may reexamine or otherwise reopen prudence or
reasonableness determinations already made.
    (h) By December 31, 2017, the Commission shall prepare and
file with the General Assembly a report on the infrastructure
program and the performance-based formula rate. The report
shall include the change in the average amount per kilowatthour
paid by residential customers between June 1, 2011 and May 31,
2017. If the change in the total average rate paid exceeds 2.5%
compounded annually, the Commission shall include in the report
an analysis that shows the portion of the change due to the
delivery services component and the portion of the change due
to the supply component of the rate. The report shall include
separate sections for each participating utility.
    Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of
this Act, other than this subsection (h), are inoperative after
December 31, 2022 for every participating utility, after which
time a participating utility shall no longer be eligible to
annually update the performance-based formula rate tariff
pursuant to subsection (d) of this Section. At such time, the
then current rates shall remain in effect until such time as
new rates are set pursuant to Article IX of this Act, subject
to retroactive adjustment, with interest, to reconcile rates
charged with actual costs.
    The fact that this Section becomes inoperative as set forth
in this subsection shall not be construed to mean that the
Commission may reexamine or otherwise reopen prudence or
reasonableness determinations already made.
    (i) While a participating utility may use, develop, and
maintain broadband systems and the delivery of broadband
services, voice-over-internet-protocol services,
telecommunications services, and cable and video programming
services for use in providing delivery services and Smart Grid
functionality or application to its retail customers,
including, but not limited to, the installation,
implementation and maintenance of Smart Grid electric system
upgrades as defined in Section 16-108.6 of this Act, a
participating utility is prohibited from offering to its retail
customers broadband services or the delivery of broadband
services, voice-over-internet-protocol services,
telecommunications services, or cable or video programming
services, unless they are part of a service directly related to
delivery services or Smart Grid functionality or applications
as defined in Section 16-108.6 of this Act, and from recovering
the costs of such offerings from retail customers.
    (j) Nothing in this Section is intended to legislatively
overturn the opinion issued in Commonwealth Edison Co. v. Ill.
Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137,
1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App.
Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be
construed as creating a contract between the General Assembly
and the participating utility, and shall not establish a
property right in the participating utility.
    (k) The changes made in subsections (c) and (d) of this
Section by Public Act 98-15 are intended to be a restatement
and clarification of existing law, and intended to give binding
effect to the provisions of House Resolution 1157 adopted by
the House of Representatives of the 97th General Assembly and
Senate Resolution 821 adopted by the Senate of the 97th General
Assembly that are reflected in paragraph (3) of this
subsection. In addition, Public Act 98-15 preempts and
supersedes any final Commission orders entered in Docket Nos.
11-0721, 12-0001, 12-0293, and 12-0321 to the extent
inconsistent with the amendatory language added to subsections
(c) and (d).
        (1) No earlier than 5 business days after May 22, 2013
    (the effective date of Public Act 98-15), each
    participating utility shall file any tariff changes
    necessary to implement the amendatory language set forth in
    subsections (c) and (d) of this Section by Public Act 98-15
    and a revised revenue requirement under the participating
    utility's performance-based formula rate. The Commission
    shall enter a final order approving such tariff changes and
    revised revenue requirement within 21 days after the
    participating utility's filing.
        (2) Notwithstanding anything that may be to the
    contrary, a participating utility may file a tariff to
    retroactively recover its previously unrecovered actual
    costs of delivery service that are no longer subject to
    recovery through a reconciliation adjustment under
    subsection (d) of this Section. This retroactive recovery
    shall include any derivative adjustments resulting from
    the changes to subsections (c) and (d) of this Section by
    Public Act 98-15. Such tariff shall allow the utility to
    assess, on current customer bills over a period of 12
    monthly billing periods, a charge or credit related to
    those unrecovered costs with interest at the utility's
    weighted average cost of capital during the period in which
    those costs were unrecovered. A participating utility may
    file a tariff that implements a retroactive charge or
    credit as described in this paragraph for amounts not
    otherwise included in the tariff filing provided for in
    paragraph (1) of this subsection (k). The Commission shall
    enter a final order approving such tariff within 21 days
    after the participating utility's filing.
        (3) The tariff changes described in paragraphs (1) and
    (2) of this subsection (k) shall relate only to, and be
    consistent with, the following provisions of Public Act
    98-15: paragraph (2) of subsection (c) regarding year-end
    capital structure, subparagraph (D) of paragraph (4) of
    subsection (c) regarding pension assets, and subsection
    (d) regarding the reconciliation components related to
    year-end rate base and interest calculated at a rate equal
    to the utility's weighted average cost of capital.
        (4) Nothing in this subsection is intended to effect a
    dismissal of or otherwise affect an appeal from any final
    Commission orders entered in Docket Nos. 11-0721, 12-0001,
    12-0293, and 12-0321 other than to the extent of the
    amendatory language contained in subsections (c) and (d) of
    this Section of Public Act 98-15.
    (l) Each participating utility shall be deemed to have been
in full compliance with all requirements of subsection (b) of
this Section, subsection (c) of this Section, Section 16-108.6
of this Act, and all Commission orders entered pursuant to
Sections 16-108.5 and 16-108.6 of this Act, up to and including
May 22, 2013 (the effective date of Public Act 98-15). The
Commission shall not undertake any investigation of such
compliance and no penalty shall be assessed or adverse action
taken against a participating utility for noncompliance with
Commission orders associated with subsection (b) of this
Section, subsection (c) of this Section, and Section 16-108.6
of this Act prior to such date. Each participating utility
other than a combination utility shall be permitted, without
penalty, a period of 12 months after such effective date to
take actions required to ensure its infrastructure investment
program is in compliance with subsection (b) of this Section
and with Section 16-108.6 of this Act. Provided further, the
following subparagraphs shall apply to a participating utility
other than a combination utility:
        (A) if the Commission has initiated a proceeding
    pursuant to subsection (e) of Section 16-108.6 of this Act
    that is pending as of May 22, 2013 (the effective date of
    Public Act 98-15), then the order entered in such
    proceeding shall, after notice and hearing, accelerate the
    commencement of the meter deployment schedule approved in
    the final Commission order on rehearing entered in Docket
    No. 12-0298;
        (B) if the Commission has entered an order pursuant to
    subsection (e) of Section 16-108.6 of this Act prior to May
    22, 2013 (the effective date of Public Act 98-15) that does
    not accelerate the commencement of the meter deployment
    schedule approved in the final Commission order on
    rehearing entered in Docket No. 12-0298, then the utility
    shall file with the Commission, within 45 days after such
    effective date, a plan for accelerating the commencement of
    the utility's meter deployment schedule approved in the
    final Commission order on rehearing entered in Docket No.
    12-0298; the Commission shall reopen the proceeding in
    which it entered its order pursuant to subsection (e) of
    Section 16-108.6 of this Act and shall, after notice and
    hearing, enter an amendatory order that approves or
    approves as modified such accelerated plan within 90 days
    after the utility's filing; or
        (C) if the Commission has not initiated a proceeding
    pursuant to subsection (e) of Section 16-108.6 of this Act
    prior to May 22, 2013 (the effective date of Public Act
    98-15), then the utility shall file with the Commission,
    within 45 days after such effective date, a plan for
    accelerating the commencement of the utility's meter
    deployment schedule approved in the final Commission order
    on rehearing entered in Docket No. 12-0298 and the
    Commission shall, after notice and hearing, approve or
    approve as modified such plan within 90 days after the
    utility's filing.
    Any schedule for meter deployment approved by the
Commission pursuant to this subsection (l) shall take into
consideration procurement times for meters and other equipment
and operational issues. Nothing in Public Act 98-15 shall
shorten or extend the end dates for the 5-year or 10-year
periods set forth in subsection (b) of this Section or Section
16-108.6 of this Act. Nothing in this subsection is intended to
address whether a participating utility has, or has not,
satisfied any or all of the metrics and performance goals
established pursuant to subsection (f) of this Section.
    (m) The provisions of Public Act 98-15 are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 98-15, eff. 5-22-13; 98-1175, eff. 6-1-15;
99-143, eff. 7-27-15; 99-642, eff. 7-28-16; 99-906, eff.
6-1-17.)
 
    (220 ILCS 5/4-305 rep.)
    (220 ILCS 5/8-304 rep.)
    (220 ILCS 5/8-405 rep.)
    (220 ILCS 5/8-405.1 rep.)
    (220 ILCS 5/9-216 rep.)
    (220 ILCS 5/9-222.3 rep.)
    (220 ILCS 5/9-242 rep.)
    (220 ILCS 5/13-407 rep.)
    Section 15. The Public Utilities Act is amended by
repealing Sections 4-305, 8-304, 8-405, 8-405.1, 9-216,
9-222.3, 9-242, and 13-407.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.
INDEX
Statutes amended in order of appearance
    20 ILCS 661/20
    220 ILCS 5/2-105from Ch. 111 2/3, par. 2-105
    220 ILCS 5/2-106from Ch. 111 2/3, par. 2-106
    220 ILCS 5/4-304from Ch. 111 2/3, par. 4-304
    220 ILCS 5/5-102from Ch. 111 2/3, par. 5-102
    220 ILCS 5/6-102from Ch. 111 2/3, par. 6-102
    220 ILCS 5/7-204from Ch. 111 2/3, par. 7-204
    220 ILCS 5/8-103B
    220 ILCS 5/8-508from Ch. 111 2/3, par. 8-508
    220 ILCS 5/8-509from Ch. 111 2/3, par. 8-509
    220 ILCS 5/9-102.1
    220 ILCS 5/9-201from Ch. 111 2/3, par. 9-201
    220 ILCS 5/9-214from Ch. 111 2/3, par. 9-214
    220 ILCS 5/9-222.2from Ch. 111 2/3, par. 9-222.2
    220 ILCS 5/9-223from Ch. 111 2/3, par. 9-223
    220 ILCS 5/10-101from Ch. 111 2/3, par. 10-101
    220 ILCS 5/10-101.1
    220 ILCS 5/10-103from Ch. 111 2/3, par. 10-103
    220 ILCS 5/10-104from Ch. 111 2/3, par. 10-104
    220 ILCS 5/10-105from Ch. 111 2/3, par. 10-105
    220 ILCS 5/10-106from Ch. 111 2/3, par. 10-106
    220 ILCS 5/10-107from Ch. 111 2/3, par. 10-107
    220 ILCS 5/10-110from Ch. 111 2/3, par. 10-110
    220 ILCS 5/10-111from Ch. 111 2/3, par. 10-111
    220 ILCS 5/10-201from Ch. 111 2/3, par. 10-201
    220 ILCS 5/10-204from Ch. 111 2/3, par. 10-204
    220 ILCS 5/13-506.2
    220 ILCS 5/13-515
    220 ILCS 5/16-108.5
    220 ILCS 5/16-111
    220 ILCS 5/4-305 rep.
    220 ILCS 5/8-304 rep.
    220 ILCS 5/8-405 rep.
    220 ILCS 5/8-405.1 rep.
    220 ILCS 5/9-216 rep.
    220 ILCS 5/9-222.3 rep.
    220 ILCS 5/9-242 rep.
    220 ILCS 5/9-244 rep.
    220 ILCS 5/13-407 rep.