102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4300

 

Introduced 1/5/2022, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/9-244  from Ch. 111 2/3, par. 9-244

    Amends the Public Utilities Act. Provides that the Illinois Commerce Commission, upon petition by a public utility (rather than an electric or gas public utility), and after notice and hearing, may authorize for some or all of the regulated services of that utility, the implementation of one or more alternative rate programs. Effective immediately.


LRB102 19129 SPS 27894 b

 

 

A BILL FOR

 

HB4300LRB102 19129 SPS 27894 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 9-244 as follows:
 
6    (220 ILCS 5/9-244)  (from Ch. 111 2/3, par. 9-244)
7    Sec. 9-244. Alternative rate regulation.
8    (a) Notwithstanding any of the ratemaking provisions of
9this Article IX or other Sections of this Act, or the
10Commission's rules that are deemed to require rate of return
11regulation, and except as provided in Article XVI, the
12Commission, upon petition by a an electric or gas public
13utility, and after notice and hearing, may authorize for some
14or all of the regulated services of that utility, the
15implementation of one or more programs consisting of (i)
16alternatives to rate of return regulation, including but not
17limited to earnings sharing, rate moratoria, price caps or
18flexible rate options, or (ii) other regulatory mechanisms
19that reward or penalize the utility through the adjustment of
20rates based on utility performance. In the case of other
21regulatory mechanisms that reward or penalize utilities
22through the adjustment of rates based on utility performance,
23the utility's performance shall be compared to standards

 

 

HB4300- 2 -LRB102 19129 SPS 27894 b

1established in the Commission order authorizing the
2implementation of other regulatory mechanisms. The Commission
3is specifically authorized to approve in response to such
4petitions different forms of alternatives to rate of return
5regulation or other regulatory mechanisms to fit the
6particular characteristics and requirements of different
7utilities and their service territories.
8    (b) The Commission shall approve the program if it finds,
9based on the record, that:
10        (1) the program is likely to result in rates lower
11    than otherwise would have been in effect under traditional
12    rate of return regulation for the services covered by the
13    program and that are consistent with the provisions of
14    Section 9-241 of the Act; and
15        (2) the program is likely to result in other
16    substantial and identifiable benefits that would be
17    realized by customers served under the program and that
18    would not be realized in the absence of the program; and
19        (3) the utility is in compliance with applicable
20    Commission standards for reliability and implementation of
21    the program is not likely to adversely affect service
22    reliability; and
23        (4) implementation of the program is not likely to
24    result in deterioration of the utility's financial
25    condition; and
26        (5) implementation of the program is not likely to

 

 

HB4300- 3 -LRB102 19129 SPS 27894 b

1    adversely affect the development of competitive markets;
2    and
3        (6) the electric utility is in compliance with its
4    obligation to offer delivery services pursuant to Article
5    XVI; and
6        (7) the program includes annual reporting requirements
7    and other provisions that will enable the Commission to
8    adequately monitor its implementation of the program; and
9        (8) the program includes provisions for an equitable
10    sharing of any net economic benefits between the utility
11    and its customers to the extent the program is likely to
12    result in such benefits.
13    The Commission shall issue its order approving or denying
14the program no later than 270 days from the date of filing of
15the petition. Any program approved under this Section shall
16continue in effect until revised, modified or terminated by
17order of the Commission as provided in this Section. If the
18Commission cannot make the above findings, it shall
19specifically identify in its order the reason or reasons why
20the proposed program does not meet the above criteria, and
21shall identify any modifications supported in the record, if
22any, that would cause the program to satisfy the above
23criteria. In the event the order identifies any such
24modifications it shall not become a final order subject to
25petitions for rehearing until 15 days after service of same by
26the Commission. The utility shall have 14 days following the

 

 

HB4300- 4 -LRB102 19129 SPS 27894 b

1date of service of the order to notify the Commission in
2writing whether it will accept any modifications so identified
3in the order or whether it has elected not to proceed with the
4program. If the utility notifies the Commission that it will
5accept such modifications, the Commission shall issue an
6amended order, without further hearing, within 14 days
7following such notification, approving the program as modified
8and such order shall be considered to be a final order of the
9Commission subject to petitions for rehearing and appellate
10procedures.
11    (c) The Commission shall open a proceeding to review any
12program approved under subsection (b) 2 years after the
13program is first implemented to determine whether the program
14is meeting its objectives, and may make such revisions, no
15later than 270 days after the proceeding is opened, as are
16necessary to result in the program meeting its objectives. A
17utility may elect to discontinue any program so revised. The
18Commission shall not otherwise direct a utility to revise,
19modify or cancel a program during its term of operation,
20except as found necessary, after notice and hearing, to ensure
21system reliability.
22    (d) Upon its own motion or complaint, the Commission may
23investigate whether the utility is implementing an approved
24program in accordance with the Commission order approving the
25program. If the Commission finds after notice and hearing,
26that the utility is not implementing the program in accordance

 

 

HB4300- 5 -LRB102 19129 SPS 27894 b

1with such order, the Commission shall order the utility to
2comply with the terms of the order. Complaints relating to the
3program filed under Section 9-250 of this Act, alleging that
4the program does not comply with that Section or the
5requirements of subsection (b) shall not be filed sooner than
6one year after the review provided for in subsection (c). The
7complainant shall bear the burden of proving the allegations
8in the complaint.
9    (e) The Commission shall not be authorized to allow or
10order an electric utility to place a program into effect,
11pursuant to this Section, applicable to delivery services
12provided by a utility, unless the utility already has in
13effect a delivery services tariff conforming to the
14requirements of Section 16-108 of this Act.
15    (f) The Commission may, upon subsequent petition by the
16utility, after notice and hearing, authorize the extension of
17a program that was previously approved pursuant to this
18Section or approve revisions or modifications of such a
19program to be effective, after the initially approved program
20has been in effect. Any such petition seeking an extension,
21revision, or modification of such a program must be
22accompanied by an evaluation of the program addressing the
23criteria set forth in subsection (b) hereof. The utility's
24petition may, but is not required to, specify a termination
25date for the extended, revised or modified program. The
26Commission may require a review of the extended, revised, or

 

 

HB4300- 6 -LRB102 19129 SPS 27894 b

1modified program at such intervals as may be ordered by the
2Commission, for the purpose of determining whether the program
3should be revised, modified, or terminated.
4(Source: P.A. 89-194, eff. 1-1-96; 90-561, eff. 12-16-97.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.