101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5330

 

Introduced , by Rep. Kelly M. Burke

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-108.6

    Amends the Public Utilities Act. Provides that no later than December 31, 2020, any utility that has more than 70% Advanced Metering Infrastructure deployment shall file an accelerated switching tariff with the Commission that shall enable a customer to enroll with or switch between an alternative retail electric supplier and the utility. Provides that the utility may include in its accelerated switching tariff a provision to limit the number of suppliers to which a customer can switch within the same billing cycle, but must allow a customer to switch to a minimum of 2 different suppliers servicing the customer within the same billing cycle. Provides that all costs for implementing an accelerated switching tariff shall be recoverable by the utility through an increase to the Smart Grid Advanced Metering Infrastructure cost recovery mechanism. Effective immediately.


LRB101 19250 SPS 68714 b

 

 

A BILL FOR

 

HB5330LRB101 19250 SPS 68714 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Section 16-108.6 as follows:
 
6    (220 ILCS 5/16-108.6)
7    Sec. 16-108.6. Provisions relating to Smart Grid Advanced
8Metering Infrastructure Deployment Plan.
9    (a) For purposes of this Section and Sections 16-108.7 and
1016-108.8 of this Act:
11    "Advanced Metering Infrastructure" or "AMI" means the
12communications hardware and software and associated system
13software that enables Smart Grid functions by creating a
14network between advanced meters and utility business systems
15and allowing collection and distribution of information to
16customers and other parties in addition to providing
17information to the utility itself.
18    "Cost-beneficial" means a determination that the benefits
19of a participating utility's Smart Grid AMI Deployment Plan
20exceed the costs of the Smart Grid AMI Deployment Plan as
21initially filed with the Commission or as subsequently modified
22by the Commission. This standard is met if the present value of
23the total benefits of the Smart Grid AMI Deployment Plan

 

 

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1exceeds the present value of the total costs of the Smart Grid
2AMI Deployment Plan. The total cost shall include all utility
3costs reasonably associated with the Smart Grid AMI Deployment
4Plan. The total benefits shall include the sum of avoided
5electricity costs, including avoided utility operational
6costs, avoided consumer power, capacity, and energy costs, and
7avoided societal costs associated with the production and
8consumption of electricity, as well as other societal benefits,
9including the greater integration of renewable and distributed
10power resources, reductions in the emissions of harmful
11pollutants and associated avoided health-related costs, other
12benefits associated with energy efficiency measures,
13demand-response activities, and the enabling of greater
14penetration of alternative fuel vehicles.
15    "Participating utility" has the meaning set forth in
16Section 16-108.5 of this Act.
17    "Smart Grid" means investments and policies that together
18promote one or more of the following goals:
19        (1) Increased use of digital information and controls
20    technology to improve reliability, security, and
21    efficiency of the electric grid.
22        (2) Dynamic optimization of grid operations and
23    resources, with full cyber security.
24        (3) Deployment and integration of distributed
25    resources and generation, including renewable resources.
26        (4) Development and incorporation of demand-response,

 

 

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1    demand-side resources, and energy efficiency resources.
2        (5) Deployment of "smart" technologies (real-time,
3    automated, interactive technologies that optimize the
4    physical operation of appliances and consumer devices) for
5    metering, communications concerning grid operations and
6    status, and distribution automation.
7        (6) Integration of "smart" appliances and consumer
8    devices.
9        (7) Deployment and integration of advanced electricity
10    storage and peak-shaving technologies, including plug-in
11    electric and hybrid electric vehicles, thermal-storage air
12    conditioning and renewable energy generation.
13        (8) Provision to consumers of timely information and
14    control options.
15        (9) Development of open access standards for
16    communication and interoperability of appliances and
17    equipment connected to the electric grid, including the
18    infrastructure serving the grid.
19        (10) Identification and lowering of unreasonable or
20    unnecessary barriers to adoption of Smart Grid
21    technologies, practices, services, and business models
22    that support energy efficiency, demand-response, and
23    distributed generation.
24    "Smart Grid Advisory Council" means the group of
25stakeholders formed pursuant to subsection (b) of this Section
26for the purposes of advising and working with participating

 

 

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1utilities on the development and implementation of a Smart Grid
2Advanced Metering Infrastructure Deployment Plan.
3    "Smart Grid electric system upgrades" means any of the
4following:
5        (1) metering devices, sensors, control devices, and
6    other devices integrated with and attached to an electric
7    utility system that are capable of engaging in Smart Grid
8    functions;
9        (2) other monitoring and communications devices that
10    enable Smart Grid functions, including, but not limited to,
11    distribution automation;
12        (3) software that enables devices or computers to
13    engage in Smart Grid functions;
14        (4) associated cyber secure data communication
15    network, including enhancements to cyber-security
16    technologies and measures;
17        (5) substation micro-processor relay upgrades;
18        (6) devices that allow electric or hybrid-electric
19    vehicles to engage in Smart Grid functions; or
20        (7) devices that enable individual consumers to
21    incorporate distributed and micro-generation.
22    "Smart Grid electric system upgrades" does not include
23expenditures for: (1) electricity generation, transmission, or
24distribution infrastructure or equipment that does not
25directly relate to or support installing, implementing or
26enabling Smart Grid functions; (2) physical interconnection of

 

 

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1generators or other devices to the grid except those that are
2directly related to enabling Smart Grid functions; or (3)
3ongoing or routine operation, billing, customer relations,
4security, and maintenance.
5    "Smart Grid functions" means:
6        (1) the ability to develop, store, send, and receive
7    digital information concerning or enabling grid
8    operations, electricity use, costs, prices, time of use,
9    nature of use, storage, or other information relevant to
10    device, grid, or utility operations, to or from or by means
11    of the electric utility system through one or a combination
12    of devices and technologies;
13        (2) the ability to develop, store, send, and receive
14    digital information concerning electricity use, costs,
15    prices, time of use, nature of use, storage, or other
16    information relevant to device, grid, or utility
17    operations to or from a computer or other control device;
18        (3) the ability to measure or monitor electricity use
19    as a function of time of day, power quality characteristics
20    such as voltage level, current, cycles per second, or
21    source or type of generation and to store, synthesize, or
22    report that information by digital means;
23        (4) the ability to sense and localize disruptions or
24    changes in power flows on the grid and communicate such
25    information instantaneously and automatically for purposes
26    of enabling automatic protective responses to sustain

 

 

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1    reliability and security of grid operations;
2        (5) the ability to detect, prevent, communicate with
3    regard to, respond to, or recover from system security
4    threats, including cyber-security threats and terrorism,
5    using digital information, media, and devices;
6        (6) the ability of any device or machine to respond to
7    signals, measurements, or communications automatically or
8    in a manner programmed by its owner or operator without
9    independent human intervention;
10        (7) the ability to use digital information to operate
11    functionalities on the electric utility grid that were
12    previously electro-mechanical or manual;
13        (8) the ability to use digital controls to manage and
14    modify electricity demand, enable congestion management,
15    assist in voltage control, provide operating reserves, and
16    provide frequency regulation; or
17        (9) the ability to integrate electric plug-in
18    vehicles, distributed generation, and storage in a safe and
19    cost-effective manner on the electric grid.
20    (b) Within 30 days after the effective date of this
21amendatory Act of the 97th General Assembly, the Smart Grid
22Advisory Council shall be established, which shall consist of 9
23total voting members with each member possessing either
24technical, business or consumer expertise in Smart Grid issues,
255 of whom shall be appointed by the Governor, one of whom shall
26be appointed by the Speaker of the House, one of whom shall be

 

 

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1appointed by the Minority Leader of the House, one of whom
2shall be appointed by the President of the Senate, and one of
3whom shall be appointed by the Minority Leader of the Senate.
4Of the Governor's 5 appointments: (i) at least one must
5represent a non-profit membership organization whose mission
6is to cultivate innovation and technology-based economic
7development in Illinois by fostering public-private
8partnerships to develop and execute research and development
9projects, advocating for funding for research and development
10initiatives, and collaborating with public and private
11partners to attract and retain research and development
12resources and talent in Illinois; (ii) at least one must
13represent a non-profit public body corporate and politic
14created by law that has a duty to represent and protect
15residential utility consumers in Illinois; (iii) at least one
16must represent a membership organization that represents the
17interests of individuals and companies that own, operate,
18manage, and service commercial buildings in a municipality with
19a population of 1,000,000 or more inhabitants; and (iv) at
20least one must represent an alternative retail electric
21supplier that has obtained a certificate of service authority
22pursuant to Section 16-115 of this Act and that is not an
23affiliate of a participating utility prior to one year after
24the effective date of this amendatory Act of the 97th General
25Assembly.
26    The Governor shall designate one of the members of the

 

 

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1Council to serve as chairman, and that person shall serve as
2the chairman at the pleasure of the Governor. The members shall
3not be compensated for serving on the Smart Grid Advisory
4Council. The Smart Grid Advisory Council shall have the
5following duties:
6        (1) Serve as an advisor to participating utilities
7    subject to this Section and in the manner described in this
8    Section, and the recommendations provided by the Council,
9    although non-binding, shall be considered by the
10    utilities.
11        (2) Serve as trustees of the trust or foundation
12    established pursuant to Section 16-108.7 of this Act with
13    the duties enumerated thereunder.
14    (c) After consultation with the Smart Grid Advisory
15Council, each participating utility shall file a Smart Grid
16Advanced Metering Infrastructure Deployment Plan ("AMI Plan")
17with the Commission within 180 days after the effective date of
18this amendatory Act of the 97th General Assembly or by November
191, 2011, whichever is later, or in the case of a combination
20utility as defined in Section 16-108.5, by April 1, 2012,
21provided that a participating utility shall not file its plan
22until the evaluation report on the Pilot Program described in
23this subsection (c) is issued. The AMI Plan shall provide for
24investment over a 10-year period that is sufficient to
25implement the AMI Plan across its entire service territory in a
26manner that is consistent with subsection (b) of Section

 

 

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116-108.5 of this Act. The AMI Plan shall contain:
2        (1) the participating utility's Smart Grid AMI vision
3    statement that is consistent with the goal of developing a
4    cost-beneficial Smart Grid;
5        (2) a statement of Smart Grid AMI strategy that
6    includes a description of how the utility evaluates and
7    prioritizes technology choices to create customer value,
8    including a plan to enhance and enable customers' ability
9    to take advantage of Smart Grid functions beginning at the
10    time an account has billed successfully on the AMI network;
11        (3) a deployment schedule and plan that includes
12    deployment of AMI to all customers for a participating
13    utility other than a combination utility, and to 62% of all
14    customers for a participating utility that is a combination
15    utility;
16        (4) annual milestones and metrics for the purposes of
17    measuring the success of the AMI Plan in enabling Smart
18    Grid functions; and enhancing consumer benefits from Smart
19    Grid AMI; and
20        (5) a plan for the consumer education to be implemented
21    by the participating utility.
22    The AMI Plan shall be fully consistent with the standards
23of the National Institute of Standard and Technology (NIST) for
24Smart Grid interoperability that are in effect at the time the
25participating utility files its AMI Plan, shall include open
26standards and internet protocol to the maximum extent possible

 

 

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1consistent with cyber security, and shall maximize, to the
2extent possible, a flexible smart meter platform that can
3accept remote device upgrades and contain sufficient internal
4memory capacity for additional storage capabilities, functions
5and services without the need for physical access to the meter.
6    The AMI Plan shall secure the privacy of personal
7information and establish the right of consumers to consent to
8the disclosure of personal energy information to third parties
9through electronic, web-based, and other means in accordance
10with State and federal law and regulations regarding consumer
11privacy and protection of consumer data.
12    After notice and hearing, the Commission shall, within 60
13days of the filing of an AMI Plan, issue its order approving,
14or approving with modification, the AMI Plan if the Commission
15finds that the AMI Plan contains the information required in
16paragraphs (1) through (5) of this subsection (c) and further
17finds that the implementation of the AMI Plan will be
18cost-beneficial consistent with the principles established
19through the Illinois Smart Grid Collaborative, giving weight to
20the results of any Commission-approved pilot designed to
21examine the benefits and costs of AMI deployment. A
22participating utility's decision to invest pursuant to an AMI
23Plan approved by the Commission shall not be subject to
24prudence reviews in subsequent Commission proceedings. Nothing
25in this subsection (c) is intended to limit the Commission's
26ability to review the reasonableness of the costs incurred

 

 

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1under the AMI Plan. A participating utility shall be allowed to
2recover the reasonable costs it incurs in implementing a
3Commission-approved AMI Plan, including the costs of retired
4meters, and may recover such costs through its tariffs,
5including the performance-based formula rate tariff approved
6pursuant to subsection (c) of Section 16-108.5 of this Act.
7    (d) The AMI Plan shall secure the privacy of the customer's
8personal information. "Personal information" for this purpose
9consists of the customer's name, address, telephone number, and
10other personally identifying information, as well as
11information about the customer's electric usage. Electric
12utilities, their contractors or agents, and any third party who
13comes into possession of such personal information by virtue of
14working on Smart Grid technology shall not disclose such
15personal information to be used in mailing lists or to be used
16for other commercial purposes not reasonably related to the
17conduct of the utility's business. Electric utilities shall
18comply with the consumer privacy requirements of the Personal
19Information Protection Act. In the event a participating
20utility receives revenues from the sale of information obtained
21through Smart Grid technology that is not personal information,
22the participating utility shall use such revenues to offset the
23revenue requirement.
24    (e) On April 1 of each year beginning in 2013 and after
25consultation with the Smart Grid Advisory Council, each
26participating utility shall submit a report regarding the

 

 

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1progress it has made toward completing implementation of its
2AMI Plan. This report shall:
3        (1) describe the AMI investments made during the prior
4    12 months and the AMI investments planned to be made in the
5    following 12 months;
6        (2) provide sufficient detail to determine the
7    utility's progress in meeting the metrics and milestones
8    identified by the utility in its AMI Plan; and
9        (3) identify any updates to the AMI Plan.
10    Within 21 days after the utility files its annual report,
11the Commission shall have authority, either upon complaint or
12its own initiative, but with reasonable notice, to enter upon
13an investigation regarding the utility's progress in
14implementing the AMI Plan as described in paragraph (1) of this
15subsection (e). If the Commission finds, after notice and
16hearing, that the participating utility's progress in
17implementing the AMI Plan is materially deficient for the given
18plan year, then the Commission shall issue an order requiring
19the participating utility to devise a corrective action plan,
20subject to Commission approval and oversight, to bring
21implementation back on schedule consistent with the AMI Plan.
22The Commission's order must be entered within 90 days after the
23utility files its annual report. If the Commission does not
24initiate an investigation within 21 days after the utility
25files its annual report, then the filing shall be deemed
26accepted by the Commission. The utility shall not be required

 

 

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1to suspend implementation of its AMI Plan during any Commission
2investigation.
3    The participating utility's annual report regarding AMI
4Plan year 10 shall contain a statement verifying that the
5implementation of its AMI Plan is complete, provided, however,
6that if the utility is subject to a corrective action plan that
7extends the implementation period beyond 10 years, the utility
8shall include the verification statement in its final annual
9report. Following the date of a Commission order approving the
10final annual report or the date on which the final report is
11deemed accepted by the Commission, the utility's annual
12reporting obligations under this subsection (d) shall
13terminate, provided, however, that the utility shall have a
14continuing obligation to provide information, upon request, to
15the Commission and Smart Grid Advisory Council regarding the
16AMI Plan.
17    (f) Each participating utility shall pay a pro rata share,
18based on number of customers, of $5,000,000 per year to the
19trust or foundation established pursuant to Section 16-108.7 of
20this Act for each plan year of the AMI Plan, which shall be
21used for purposes of providing customer education regarding
22smart meters and related consumer-facing technologies and
23services and 70% of which shall be a recoverable expense;
24provided that other reasonable amounts expended by the utility
25for such consumer education shall not be subject to the 70%
26limitation of this subsection.

 

 

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1    (g) Within 60 days after the Commission approves a
2participating utility's AMI Plan pursuant to subsection (c) of
3this Section, the participating utility, after consultation
4with the Smart Grid Advisory Council, shall file a proposed
5tariff with the Commission that offers an opt-in market-based
6peak time rebate program to all residential retail customers
7with smart meters that is designed to provide, in a
8competitively neutral manner, rebates to those residential
9retail customers that curtail their use of electricity during
10specific periods that are identified as peak usage periods. The
11total amount of rebates shall be the amount of compensation the
12utility obtains through markets or programs at the applicable
13regional transmission organization. The utility shall make all
14reasonable attempts to secure funding for the peak time rebate
15program through markets or programs at the applicable regional
16transmission organization. The rules and procedures for
17consumers to opt-in to the peak time rebate program shall
18include electronic sign-up, be designed to maximize
19participation, and be included on the utility's website. The
20Commission shall monitor the performance of programs
21established pursuant to this subsection (g) and shall order the
22termination or modification of a program if it determines that
23the program is not, after a reasonable period of time for
24development of at least 4 years, resulting in net benefits to
25the residential customers of the participating utility.
26    (h) If Section 16-108.5 of this Act becomes inoperative

 

 

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1with respect to one or more participating utilities as set
2forth in subsection (g) or (h) of that Section, then Sections
316-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall
4become inoperative as to each affected utility and its service
5area on the same date as Section 16-108.5 becomes inoperative.
6    (i) No later than December 31, 2020, any utility that has
7more than 70% Advanced Metering Infrastructure deployment
8shall file an accelerated switching tariff with the Commission
9that shall enable a customer to enroll with or switch between
10an alternative retail electric supplier and the utility no
11later than 15 days between the utility's receipt of a
12customer's switch and the effective date of such switch or
13enrollment request. The utility shall implement the tariff
14within 30 days after the Commission's approval unless the
15Commission approves a longer deadline as necessary to allow the
16utility to build back office or technology systems to implement
17the tariff requirements. The utility may include in its
18accelerated switching tariff a provision to limit the number of
19suppliers to which a customer can switch within the same
20billing cycle, but must allow a customer to switch to a minimum
21of 2 different suppliers servicing the customer within the same
22billing cycle. All costs for implementing an accelerated
23switching tariff shall be recoverable by the utility through an
24increase to the Smart Grid Advanced Metering Infrastructure
25cost recovery mechanism.
26(Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.