HB5539 EngrossedLRB103 38494 CES 68630 b

1    AN ACT concerning utilities.
 
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
5Sections 8-103, 8-103B, and 8-104 as follows:
 
6    (220 ILCS 5/8-103)
7    Sec. 8-103. Energy efficiency and demand-response
8measures.
9    (a) It is the policy of the State that electric utilities
10are required to use cost-effective energy efficiency and
11demand-response measures to reduce delivery load. Requiring
12investment in cost-effective energy efficiency and
13demand-response measures will reduce direct and indirect costs
14to consumers by decreasing environmental impacts and by
15avoiding or delaying the need for new generation,
16transmission, and distribution infrastructure. It serves the
17public interest to allow electric utilities to recover costs
18for reasonably and prudently incurred expenses for energy
19efficiency and demand-response measures. As used in this
20Section, "cost-effective" means that the measures satisfy the
21total resource cost test. The low-income measures described in
22subsection (f)(4) of this Section shall not be required to
23meet the total resource cost test. For purposes of this

 

 

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1Section, the terms "energy-efficiency", "demand-response",
2"electric utility", and "total resource cost test" shall have
3the meanings set forth in the Illinois Power Agency Act. For
4purposes of this Section, the amount per kilowatthour means
5the total amount paid for electric service expressed on a per
6kilowatthour basis. For purposes of this Section, the total
7amount paid for electric service includes without limitation
8estimated amounts paid for supply, transmission, distribution,
9surcharges, and add-on-taxes.
10    (a-5) This Section applies to electric utilities serving
11500,000 or less but more than 200,000 retail customers in this
12State. Through December 31, 2017, this Section also applies to
13electric utilities serving more than 500,000 retail customers
14in the State.
15    (b) Electric utilities shall implement cost-effective
16energy efficiency measures to meet the following incremental
17annual energy savings goals:
18        (1) 0.2% of energy delivered in the year commencing
19    June 1, 2008;
20        (2) 0.4% of energy delivered in the year commencing
21    June 1, 2009;
22        (3) 0.6% of energy delivered in the year commencing
23    June 1, 2010;
24        (4) 0.8% of energy delivered in the year commencing
25    June 1, 2011;
26        (5) 1% of energy delivered in the year commencing June

 

 

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1    1, 2012;
2        (6) 1.4% of energy delivered in the year commencing
3    June 1, 2013;
4        (7) 1.8% of energy delivered in the year commencing
5    June 1, 2014; and
6        (8) 2% of energy delivered in the year commencing June
7    1, 2015 and each year thereafter.
8    Electric utilities may comply with this subsection (b) by
9meeting the annual incremental savings goal in the applicable
10year or by showing that the total cumulative annual savings
11within a 3-year planning period associated with measures
12implemented after May 31, 2014 was equal to the sum of each
13annual incremental savings requirement from May 31, 2014
14through the end of the applicable year.
15    (c) Electric utilities shall implement cost-effective
16demand-response measures to reduce peak demand by 0.1% over
17the prior year for eligible retail customers, as defined in
18Section 16-111.5 of this Act, and for customers that elect
19hourly service from the utility pursuant to Section 16-107 of
20this Act, provided those customers have not been declared
21competitive. This requirement commences June 1, 2008 and
22continues for 10 years.
23    (d) Notwithstanding the requirements of subsections (b)
24and (c) of this Section, an electric utility shall reduce the
25amount of energy efficiency and demand-response measures
26implemented over a 3-year planning period by an amount

 

 

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1necessary to limit the estimated average annual increase in
2the amounts paid by retail customers in connection with
3electric service due to the cost of those measures to:
4        (1) in 2008, no more than 0.5% of the amount paid per
5    kilowatthour by those customers during the year ending May
6    31, 2007;
7        (2) in 2009, the greater of an additional 0.5% of the
8    amount paid per kilowatthour by those customers during the
9    year ending May 31, 2008 or 1% of the amount paid per
10    kilowatthour by those customers during the year ending May
11    31, 2007;
12        (3) in 2010, the greater of an additional 0.5% of the
13    amount paid per kilowatthour by those customers during the
14    year ending May 31, 2009 or 1.5% of the amount paid per
15    kilowatthour by those customers during the year ending May
16    31, 2007;
17        (4) in 2011, the greater of an additional 0.5% of the
18    amount paid per kilowatthour by those customers during the
19    year ending May 31, 2010 or 2% of the amount paid per
20    kilowatthour by those customers during the year ending May
21    31, 2007; and
22        (5) thereafter, the amount of energy efficiency and
23    demand-response measures implemented for any single year
24    shall be reduced by an amount necessary to limit the
25    estimated average net increase due to the cost of these
26    measures included in the amounts paid by eligible retail

 

 

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1    customers in connection with electric service to no more
2    than the greater of 2.015% of the amount paid per
3    kilowatthour by those customers during the year ending May
4    31, 2007 or the incremental amount per kilowatthour paid
5    for these measures in 2011.
6    No later than June 30, 2011, the Commission shall review
7the limitation on the amount of energy efficiency and
8demand-response measures implemented pursuant to this Section
9and report to the General Assembly its findings as to whether
10that limitation unduly constrains the procurement of energy
11efficiency and demand-response measures.
12    (e) Electric utilities shall be responsible for overseeing
13the design, development, and filing of energy efficiency and
14demand-response plans with the Commission. Electric utilities
15shall implement 100% of the demand-response measures in the
16plans. Electric utilities shall implement 75% of the energy
17efficiency measures approved by the Commission, and may, as
18part of that implementation, outsource various aspects of
19program development and implementation. The remaining 25% of
20those energy efficiency measures approved by the Commission
21shall be implemented by the Department of Commerce and
22Economic Opportunity, and must be designed in conjunction with
23the utility and the filing process. The Department may
24outsource development and implementation of energy efficiency
25measures. A minimum of 10% of the entire portfolio of
26cost-effective energy efficiency measures shall be procured

 

 

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1from units of local government, municipal corporations, school
2districts, public institutions of higher education, and
3community college districts. The Department shall coordinate
4the implementation of these measures.
5    The apportionment of the dollars to cover the costs to
6implement the Department's share of the portfolio of energy
7efficiency measures shall be made to the Department once the
8Department has executed rebate agreements, grants, or
9contracts for energy efficiency measures and provided
10supporting documentation for those rebate agreements, grants,
11and contracts to the utility. The Department is authorized to
12adopt any rules necessary and prescribe procedures in order to
13ensure compliance by applicants in carrying out the purposes
14of rebate agreements for energy efficiency measures
15implemented by the Department made under this Section.
16    The details of the measures implemented by the Department
17shall be submitted by the Department to the Commission in
18connection with the utility's filing regarding the energy
19efficiency and demand-response measures that the utility
20implements.
21    A utility providing approved energy efficiency and
22demand-response measures in the State shall be permitted to
23recover costs of those measures through an automatic
24adjustment clause tariff filed with and approved by the
25Commission. The tariff shall be established outside the
26context of a general rate case. Each year the Commission shall

 

 

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1initiate a review to reconcile any amounts collected with the
2actual costs and to determine the required adjustment to the
3annual tariff factor to match annual expenditures.
4    Each utility shall include, in its recovery of costs, the
5costs estimated for both the utility's and the Department's
6implementation of energy efficiency and demand-response
7measures. Costs collected by the utility for measures
8implemented by the Department shall be submitted to the
9Department pursuant to Section 605-323 of the Civil
10Administrative Code of Illinois, shall be deposited into the
11Energy Efficiency Portfolio Standards Fund, and shall be used
12by the Department solely for the purpose of implementing these
13measures. A utility shall not be required to advance any
14moneys to the Department but only to forward such funds as it
15has collected. The Department shall report to the Commission
16on an annual basis regarding the costs actually incurred by
17the Department in the implementation of the measures. Any
18changes to the costs of energy efficiency measures as a result
19of plan modifications shall be appropriately reflected in
20amounts recovered by the utility and turned over to the
21Department.
22    The portfolio of measures, administered by both the
23utilities and the Department, shall, in combination, be
24designed to achieve the annual savings targets described in
25subsections (b) and (c) of this Section, as modified by
26subsection (d) of this Section.

 

 

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1    The utility and the Department shall agree upon a
2reasonable portfolio of measures and determine the measurable
3corresponding percentage of the savings goals associated with
4measures implemented by the utility or Department.
5    No utility shall be assessed a penalty under subsection
6(f) of this Section for failure to make a timely filing if that
7failure is the result of a lack of agreement with the
8Department with respect to the allocation of responsibilities
9or related costs or target assignments. In that case, the
10Department and the utility shall file their respective plans
11with the Commission and the Commission shall determine an
12appropriate division of measures and programs that meets the
13requirements of this Section.
14    If the Department is unable to meet incremental annual
15performance goals for the portion of the portfolio implemented
16by the Department, then the utility and the Department shall
17jointly submit a modified filing to the Commission explaining
18the performance shortfall and recommending an appropriate
19course going forward, including any program modifications that
20may be appropriate in light of the evaluations conducted under
21item (7) of subsection (f) of this Section. In this case, the
22utility obligation to collect the Department's costs and turn
23over those funds to the Department under this subsection (e)
24shall continue only if the Commission approves the
25modifications to the plan proposed by the Department.
26    (f) No later than November 15, 2007, each electric utility

 

 

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1shall file an energy efficiency and demand-response plan with
2the Commission to meet the energy efficiency and
3demand-response standards for 2008 through 2010. No later than
4October 1, 2010, each electric utility shall file an energy
5efficiency and demand-response plan with the Commission to
6meet the energy efficiency and demand-response standards for
72011 through 2013. Every 3 years thereafter, each electric
8utility shall file, no later than September 1, an energy
9efficiency and demand-response plan with the Commission. If a
10utility does not file such a plan by September 1 of an
11applicable year, it shall face a penalty of $100,000 per day
12until the plan is filed. Each utility's plan shall set forth
13the utility's proposals to meet the utility's portion of the
14energy efficiency standards identified in subsection (b) and
15the demand-response standards identified in subsection (c) of
16this Section as modified by subsections (d) and (e), taking
17into account the unique circumstances of the utility's service
18territory. The Commission shall seek public comment on the
19utility's plan and shall issue an order approving or
20disapproving each plan within 5 months after its submission.
21If the Commission disapproves a plan, the Commission shall,
22within 30 days, describe in detail the reasons for the
23disapproval and describe a path by which the utility may file a
24revised draft of the plan to address the Commission's concerns
25satisfactorily. If the utility does not refile with the
26Commission within 60 days, the utility shall be subject to

 

 

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1penalties at a rate of $100,000 per day until the plan is
2filed. This process shall continue, and penalties shall
3accrue, until the utility has successfully filed a portfolio
4of energy efficiency and demand-response measures. Penalties
5shall be deposited into the Energy Efficiency Trust Fund. In
6submitting proposed energy efficiency and demand-response
7plans and funding levels to meet the savings goals adopted by
8this Act the utility shall:
9        (1) Demonstrate that its proposed energy efficiency
10    and demand-response measures will achieve the requirements
11    that are identified in subsections (b) and (c) of this
12    Section, as modified by subsections (d) and (e).
13        (2) Present specific proposals to implement new
14    building and appliance standards that have been placed
15    into effect.
16        (3) Present estimates of the total amount paid for
17    electric service expressed on a per kilowatthour basis
18    associated with the proposed portfolio of measures
19    designed to meet the requirements that are identified in
20    subsections (b) and (c) of this Section, as modified by
21    subsections (d) and (e).
22        (4) Coordinate with the Department to present a
23    portfolio of energy efficiency measures proportionate to
24    the share of total annual utility revenues in Illinois
25    from households at or below 150% of the poverty level. The
26    energy efficiency programs shall be targeted to households

 

 

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1    with incomes at or below 80% of area median income.
2        (5) Demonstrate that its overall portfolio of energy
3    efficiency and demand-response measures, not including
4    programs covered by item (4) of this subsection (f), are
5    cost-effective using the total resource cost test and
6    represent a diverse cross-section of opportunities for
7    customers of all rate classes to participate in the
8    programs.
9        (6) Include a proposed cost-recovery tariff mechanism
10    to fund the proposed energy efficiency and demand-response
11    measures and to ensure the recovery of the prudently and
12    reasonably incurred costs of Commission-approved programs.
13        (7) Provide for an annual independent evaluation of
14    the performance of the cost-effectiveness of the utility's
15    portfolio of measures and the Department's portfolio of
16    measures, as well as a full review of the 3-year results of
17    the broader net program impacts and, to the extent
18    practical, for adjustment of the measures on a
19    going-forward basis as a result of the evaluations. The
20    resources dedicated to evaluation shall not exceed 3% of
21    portfolio resources in any given year.
22    (g) No more than 3% of energy efficiency and
23demand-response program revenue may be allocated for
24demonstration of breakthrough equipment and devices.
25    (h) This Section does not apply to an electric utility
26that on December 31, 2005 provided electric service to fewer

 

 

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1than 100,000 customers in Illinois.
2    (i) If, after 2 years, an electric utility fails to meet
3the efficiency standard specified in subsection (b) of this
4Section, as modified by subsections (d) and (e), it shall make
5a contribution to the Low-Income Home Energy Assistance
6Program. The combined total liability for failure to meet the
7goal shall be $1,000,000, which shall be assessed as follows:
8a large electric utility shall pay $665,000, and a medium
9electric utility shall pay $335,000. If, after 3 years, an
10electric utility fails to meet the efficiency standard
11specified in subsection (b) of this Section, as modified by
12subsections (d) and (e), it shall make a contribution to the
13Low-Income Home Energy Assistance Program. The combined total
14liability for failure to meet the goal shall be $1,000,000,
15which shall be assessed as follows: a large electric utility
16shall pay $665,000, and a medium electric utility shall pay
17$335,000. In addition, the responsibility for implementing the
18energy efficiency measures of the utility making the payment
19shall be transferred to the Illinois Power Agency if, after 3
20years, or in any subsequent 3-year period, the utility fails
21to meet the efficiency standard specified in subsection (b) of
22this Section, as modified by subsections (d) and (e). The
23Agency shall implement a competitive procurement program to
24procure resources necessary to meet the standards specified in
25this Section as modified by subsections (d) and (e), with
26costs for those resources to be recovered in the same manner as

 

 

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1products purchased through the procurement plan as provided in
2Section 16-111.5. The Director shall implement this
3requirement in connection with the procurement plan as
4provided in Section 16-111.5.
5    For purposes of this Section, (i) a "large electric
6utility" is an electric utility that, on December 31, 2005,
7served more than 2,000,000 electric customers in Illinois;
8(ii) a "medium electric utility" is an electric utility that,
9on December 31, 2005, served 2,000,000 or fewer but more than
10100,000 electric customers in Illinois; and (iii) Illinois
11electric utilities that are affiliated by virtue of a common
12parent company are considered a single electric utility.
13    (j) If, after 3 years, or any subsequent 3-year period,
14the Department fails to implement the Department's share of
15energy efficiency measures required by the standards in
16subsection (b), then the Illinois Power Agency may assume
17responsibility for and control of the Department's share of
18the required energy efficiency measures. The Agency shall
19implement a competitive procurement program to procure
20resources necessary to meet the standards specified in this
21Section, with the costs of these resources to be recovered in
22the same manner as provided for the Department in this
23Section.
24    (k) No electric utility shall be deemed to have failed to
25meet the energy efficiency standards to the extent any such
26failure is due to a failure of the Department or the Agency.

 

 

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1    (l)(1) The energy efficiency and demand-response plans of
2electric utilities serving more than 500,000 retail customers
3in the State that were approved by the Commission on or before
4the effective date of this amendatory Act of the 99th General
5Assembly for the period June 1, 2014 through May 31, 2017 shall
6continue to be in force and effect through December 31, 2017 so
7that the energy efficiency programs set forth in those plans
8continue to be offered during the period June 1, 2017 through
9December 31, 2017. Each such utility is authorized to
10increase, on a pro rata basis, the energy savings goals and
11budgets approved in its plan to reflect the additional 7
12months of the plan's operation, provided that such increase
13shall also incorporate reductions to goals and budgets to
14reflect the proportion of the utility's load attributable to
15customers who are exempt from this Section under subsection
16(m) of this Section.
17    (2) If an electric utility serving more than 500,000
18retail customers in the State filed with the Commission, under
19subsection (f) of this Section, its proposed energy efficiency
20and demand-response plan for the period June 1, 2017 through
21May 31, 2020, and the Commission has not yet entered its final
22order approving such plan on or before the effective date of
23this amendatory Act of the 99th General Assembly, then the
24utility shall file a notice of withdrawal with the Commission,
25following such effective date, to withdraw the proposed energy
26efficiency and demand-response plan. Upon receipt of such

 

 

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1notice, the Commission shall dismiss with prejudice any docket
2that had been initiated to investigate such plan, and the plan
3and the record related thereto shall not be the subject of any
4further hearing, investigation, or proceeding of any kind.
5    (3) For those electric utilities that serve more than
6500,000 retail customers in the State, this amendatory Act of
7the 99th General Assembly preempts and supersedes any orders
8entered by the Commission that approved such utilities' energy
9efficiency and demand response plans for the period commencing
10June 1, 2017 and ending May 31, 2020. Any such orders shall be
11void, and the provisions of paragraph (1) of this subsection
12(l) shall apply.
13    (m) Notwithstanding anything to the contrary, after May
1431, 2017, this Section does not apply to any retail customers
15of an electric utility that serves more than 3,000,000 retail
16customers in the State and whose total highest 30 minute
17demand was more than 10,000 kilowatts, or any retail customers
18of an electric utility that serves less than 3,000,000 retail
19customers but more than 500,000 retail customers in the State
20and whose total highest 15 minute demand was more than 10,000
21kilowatts. For purposes of this subsection (m), "retail
22customer" has the meaning set forth in Section 16-102 of this
23Act. The criteria for determining whether this subsection (m)
24is applicable to a retail customer shall be based on the 12
25consecutive billing periods prior to the start of the first
26year of each such multi-year plan.

 

 

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1(Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17.)
 
2    (220 ILCS 5/8-103B)
3    Sec. 8-103B. Energy efficiency and demand-response
4measures.
5    (a) It is the policy of the State that electric utilities
6are required to use cost-effective energy efficiency and
7demand-response measures to reduce delivery load. Requiring
8investment in cost-effective energy efficiency and
9demand-response measures will reduce direct and indirect costs
10to consumers by decreasing environmental impacts and by
11avoiding or delaying the need for new generation,
12transmission, and distribution infrastructure. It serves the
13public interest to allow electric utilities to recover costs
14for reasonably and prudently incurred expenditures for energy
15efficiency and demand-response measures. As used in this
16Section, "cost-effective" means that the measures satisfy the
17total resource cost test. The low-income measures described in
18subsection (c) of this Section shall not be required to meet
19the total resource cost test. For purposes of this Section,
20the terms "energy-efficiency", "demand-response", "electric
21utility", and "total resource cost test" have the meanings set
22forth in the Illinois Power Agency Act. "Black, indigenous,
23and people of color" and "BIPOC" means people who are members
24of the groups described in subparagraphs (a) through (e) of
25paragraph (A) of subsection (1) of Section 2 of the Business

 

 

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1Enterprise for Minorities, Women, and Persons with
2Disabilities Act.
3    (a-5) This Section applies to electric utilities serving
4more than 500,000 retail customers in the State for those
5multi-year plans commencing after December 31, 2017.
6    (b) For purposes of this Section, electric utilities
7subject to this Section that serve more than 3,000,000 retail
8customers in the State shall be deemed to have achieved a
9cumulative persisting annual savings of 6.6% from energy
10efficiency measures and programs implemented during the period
11beginning January 1, 2012 and ending December 31, 2017, which
12percent is based on the deemed average weather normalized
13sales of electric power and energy during calendar years 2014,
142015, and 2016 of 88,000,000 MWhs. For the purposes of this
15subsection (b) and subsection (b-5), the 88,000,000 MWhs of
16deemed electric power and energy sales shall be reduced by the
17number of MWhs equal to the sum of the annual consumption of
18customers that have opted out of subsections (a) through (j)
19of this Section under paragraph (1) of subsection (l) of this
20Section, as averaged across the calendar years 2014, 2015, and
212016. After 2017, the deemed value of cumulative persisting
22annual savings from energy efficiency measures and programs
23implemented during the period beginning January 1, 2012 and
24ending December 31, 2017, shall be reduced each year, as
25follows, and the applicable value shall be applied to and
26count toward the utility's achievement of the cumulative

 

 

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1persisting annual savings goals set forth in subsection (b-5):
2        (1) 5.8% deemed cumulative persisting annual savings
3    for the year ending December 31, 2018;
4        (2) 5.2% deemed cumulative persisting annual savings
5    for the year ending December 31, 2019;
6        (3) 4.5% deemed cumulative persisting annual savings
7    for the year ending December 31, 2020;
8        (4) 4.0% deemed cumulative persisting annual savings
9    for the year ending December 31, 2021;
10        (5) 3.5% deemed cumulative persisting annual savings
11    for the year ending December 31, 2022;
12        (6) 3.1% deemed cumulative persisting annual savings
13    for the year ending December 31, 2023;
14        (7) 2.8% deemed cumulative persisting annual savings
15    for the year ending December 31, 2024;
16        (8) 2.5% deemed cumulative persisting annual savings
17    for the year ending December 31, 2025;
18        (9) 2.3% deemed cumulative persisting annual savings
19    for the year ending December 31, 2026;
20        (10) 2.1% deemed cumulative persisting annual savings
21    for the year ending December 31, 2027;
22        (11) 1.8% deemed cumulative persisting annual savings
23    for the year ending December 31, 2028;
24        (12) 1.7% deemed cumulative persisting annual savings
25    for the year ending December 31, 2029;
26        (13) 1.5% deemed cumulative persisting annual savings

 

 

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1    for the year ending December 31, 2030;
2        (14) 1.3% deemed cumulative persisting annual savings
3    for the year ending December 31, 2031;
4        (15) 1.1% deemed cumulative persisting annual savings
5    for the year ending December 31, 2032;
6        (16) 0.9% deemed cumulative persisting annual savings
7    for the year ending December 31, 2033;
8        (17) 0.7% deemed cumulative persisting annual savings
9    for the year ending December 31, 2034;
10        (18) 0.5% deemed cumulative persisting annual savings
11    for the year ending December 31, 2035;
12        (19) 0.4% deemed cumulative persisting annual savings
13    for the year ending December 31, 2036;
14        (20) 0.3% deemed cumulative persisting annual savings
15    for the year ending December 31, 2037;
16        (21) 0.2% deemed cumulative persisting annual savings
17    for the year ending December 31, 2038;
18        (22) 0.1% deemed cumulative persisting annual savings
19    for the year ending December 31, 2039; and
20        (23) 0.0% deemed cumulative persisting annual savings
21    for the year ending December 31, 2040 and all subsequent
22    years.
23    For purposes of this Section, "cumulative persisting
24annual savings" means the total electric energy savings in a
25given year from measures installed in that year or in previous
26years, but no earlier than January 1, 2012, that are still

 

 

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1operational and providing savings in that year because the
2measures have not yet reached the end of their useful lives.
3    (b-5) Beginning in 2018, electric utilities subject to
4this Section that serve more than 3,000,000 retail customers
5in the State shall achieve the following cumulative persisting
6annual savings goals, as modified by subsection (f) of this
7Section and as compared to the deemed baseline of 88,000,000
8MWhs of electric power and energy sales set forth in
9subsection (b), as reduced by the number of MWhs equal to the
10sum of the annual consumption of customers that have opted out
11of subsections (a) through (j) of this Section under paragraph
12(1) of subsection (l) of this Section as averaged across the
13calendar years 2014, 2015, and 2016, through the
14implementation of energy efficiency measures during the
15applicable year and in prior years, but no earlier than
16January 1, 2012:
17        (1) 7.8% cumulative persisting annual savings for the
18    year ending December 31, 2018;
19        (2) 9.1% cumulative persisting annual savings for the
20    year ending December 31, 2019;
21        (3) 10.4% cumulative persisting annual savings for the
22    year ending December 31, 2020;
23        (4) 11.8% cumulative persisting annual savings for the
24    year ending December 31, 2021;
25        (5) 13.1% cumulative persisting annual savings for the
26    year ending December 31, 2022;

 

 

HB5539 Engrossed- 21 -LRB103 38494 CES 68630 b

1        (6) 14.4% cumulative persisting annual savings for the
2    year ending December 31, 2023;
3        (7) 15.7% cumulative persisting annual savings for the
4    year ending December 31, 2024;
5        (8) 17% cumulative persisting annual savings for the
6    year ending December 31, 2025;
7        (9) 17.9% cumulative persisting annual savings for the
8    year ending December 31, 2026;
9        (10) 18.8% cumulative persisting annual savings for
10    the year ending December 31, 2027;
11        (11) 19.7% cumulative persisting annual savings for
12    the year ending December 31, 2028;
13        (12) 20.6% cumulative persisting annual savings for
14    the year ending December 31, 2029; and
15        (13) 21.5% cumulative persisting annual savings for
16    the year ending December 31, 2030.
17    No later than December 31, 2021, the Illinois Commerce
18Commission shall establish additional cumulative persisting
19annual savings goals for the years 2031 through 2035. No later
20than December 31, 2024, the Illinois Commerce Commission shall
21establish additional cumulative persisting annual savings
22goals for the years 2036 through 2040. The Commission shall
23also establish additional cumulative persisting annual savings
24goals every 5 years thereafter to ensure that utilities always
25have goals that extend at least 11 years into the future. The
26cumulative persisting annual savings goals beyond the year

 

 

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12030 shall increase by 0.9 percentage points per year, absent
2a Commission decision to initiate a proceeding to consider
3establishing goals that increase by more or less than that
4amount. Such a proceeding must be conducted in accordance with
5the procedures described in subsection (f) of this Section. If
6such a proceeding is initiated, the cumulative persisting
7annual savings goals established by the Commission through
8that proceeding shall reflect the Commission's best estimate
9of the maximum amount of additional savings that are forecast
10to be cost-effectively achievable unless such best estimates
11would result in goals that represent less than 0.5 percentage
12point annual increases in total cumulative persisting annual
13savings. The Commission may only establish goals that
14represent less than 0.5 percentage point annual increases in
15cumulative persisting annual savings if it can demonstrate,
16based on clear and convincing evidence and through independent
17analysis, that 0.5 percentage point increases are not
18cost-effectively achievable. The Commission shall inform its
19decision based on an energy efficiency potential study that
20conforms to the requirements of this Section.
21    (b-10) For purposes of this Section, electric utilities
22subject to this Section that serve less than 3,000,000 retail
23customers but more than 500,000 retail customers in the State
24shall be deemed to have achieved a cumulative persisting
25annual savings of 6.6% from energy efficiency measures and
26programs implemented during the period beginning January 1,

 

 

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12012 and ending December 31, 2017, which is based on the deemed
2average weather normalized sales of electric power and energy
3during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
4For the purposes of this subsection (b-10) and subsection
5(b-15), the 36,900,000 MWhs of deemed electric power and
6energy sales shall be reduced by the number of MWhs equal to
7the sum of the annual consumption of customers that have opted
8out of subsections (a) through (j) of this Section under
9paragraph (1) of subsection (l) of this Section, as averaged
10across the calendar years 2014, 2015, and 2016. After 2017,
11the deemed value of cumulative persisting annual savings from
12energy efficiency measures and programs implemented during the
13period beginning January 1, 2012 and ending December 31, 2017,
14shall be reduced each year, as follows, and the applicable
15value shall be applied to and count toward the utility's
16achievement of the cumulative persisting annual savings goals
17set forth in subsection (b-15):
18        (1) 5.8% deemed cumulative persisting annual savings
19    for the year ending December 31, 2018;
20        (2) 5.2% deemed cumulative persisting annual savings
21    for the year ending December 31, 2019;
22        (3) 4.5% deemed cumulative persisting annual savings
23    for the year ending December 31, 2020;
24        (4) 4.0% deemed cumulative persisting annual savings
25    for the year ending December 31, 2021;
26        (5) 3.5% deemed cumulative persisting annual savings

 

 

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1    for the year ending December 31, 2022;
2        (6) 3.1% deemed cumulative persisting annual savings
3    for the year ending December 31, 2023;
4        (7) 2.8% deemed cumulative persisting annual savings
5    for the year ending December 31, 2024;
6        (8) 2.5% deemed cumulative persisting annual savings
7    for the year ending December 31, 2025;
8        (9) 2.3% deemed cumulative persisting annual savings
9    for the year ending December 31, 2026;
10        (10) 2.1% deemed cumulative persisting annual savings
11    for the year ending December 31, 2027;
12        (11) 1.8% deemed cumulative persisting annual savings
13    for the year ending December 31, 2028;
14        (12) 1.7% deemed cumulative persisting annual savings
15    for the year ending December 31, 2029;
16        (13) 1.5% deemed cumulative persisting annual savings
17    for the year ending December 31, 2030;
18        (14) 1.3% deemed cumulative persisting annual savings
19    for the year ending December 31, 2031;
20        (15) 1.1% deemed cumulative persisting annual savings
21    for the year ending December 31, 2032;
22        (16) 0.9% deemed cumulative persisting annual savings
23    for the year ending December 31, 2033;
24        (17) 0.7% deemed cumulative persisting annual savings
25    for the year ending December 31, 2034;
26        (18) 0.5% deemed cumulative persisting annual savings

 

 

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1    for the year ending December 31, 2035;
2        (19) 0.4% deemed cumulative persisting annual savings
3    for the year ending December 31, 2036;
4        (20) 0.3% deemed cumulative persisting annual savings
5    for the year ending December 31, 2037;
6        (21) 0.2% deemed cumulative persisting annual savings
7    for the year ending December 31, 2038;
8        (22) 0.1% deemed cumulative persisting annual savings
9    for the year ending December 31, 2039; and
10        (23) 0.0% deemed cumulative persisting annual savings
11    for the year ending December 31, 2040 and all subsequent
12    years.
13    (b-15) Beginning in 2018, electric utilities subject to
14this Section that serve less than 3,000,000 retail customers
15but more than 500,000 retail customers in the State shall
16achieve the following cumulative persisting annual savings
17goals, as modified by subsection (b-20) and subsection (f) of
18this Section and as compared to the deemed baseline as reduced
19by the number of MWhs equal to the sum of the annual
20consumption of customers that have opted out of subsections
21(a) through (j) of this Section under paragraph (1) of
22subsection (l) of this Section as averaged across the calendar
23years 2014, 2015, and 2016, through the implementation of
24energy efficiency measures during the applicable year and in
25prior years, but no earlier than January 1, 2012:
26        (1) 7.4% cumulative persisting annual savings for the

 

 

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1    year ending December 31, 2018;
2        (2) 8.2% cumulative persisting annual savings for the
3    year ending December 31, 2019;
4        (3) 9.0% cumulative persisting annual savings for the
5    year ending December 31, 2020;
6        (4) 9.8% cumulative persisting annual savings for the
7    year ending December 31, 2021;
8        (5) 10.6% cumulative persisting annual savings for the
9    year ending December 31, 2022;
10        (6) 11.4% cumulative persisting annual savings for the
11    year ending December 31, 2023;
12        (7) 12.2% cumulative persisting annual savings for the
13    year ending December 31, 2024;
14        (8) 13% cumulative persisting annual savings for the
15    year ending December 31, 2025;
16        (9) 13.6% cumulative persisting annual savings for the
17    year ending December 31, 2026;
18        (10) 14.2% cumulative persisting annual savings for
19    the year ending December 31, 2027;
20        (11) 14.8% cumulative persisting annual savings for
21    the year ending December 31, 2028;
22        (12) 15.4% cumulative persisting annual savings for
23    the year ending December 31, 2029; and
24        (13) 16% cumulative persisting annual savings for the
25    year ending December 31, 2030.
26    No later than December 31, 2021, the Illinois Commerce

 

 

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1Commission shall establish additional cumulative persisting
2annual savings goals for the years 2031 through 2035. No later
3than December 31, 2024, the Illinois Commerce Commission shall
4establish additional cumulative persisting annual savings
5goals for the years 2036 through 2040. The Commission shall
6also establish additional cumulative persisting annual savings
7goals every 5 years thereafter to ensure that utilities always
8have goals that extend at least 11 years into the future. The
9cumulative persisting annual savings goals beyond the year
102030 shall increase by 0.6 percentage points per year, absent
11a Commission decision to initiate a proceeding to consider
12establishing goals that increase by more or less than that
13amount. Such a proceeding must be conducted in accordance with
14the procedures described in subsection (f) of this Section. If
15such a proceeding is initiated, the cumulative persisting
16annual savings goals established by the Commission through
17that proceeding shall reflect the Commission's best estimate
18of the maximum amount of additional savings that are forecast
19to be cost-effectively achievable unless such best estimates
20would result in goals that represent less than 0.4 percentage
21point annual increases in total cumulative persisting annual
22savings. The Commission may only establish goals that
23represent less than 0.4 percentage point annual increases in
24cumulative persisting annual savings if it can demonstrate,
25based on clear and convincing evidence and through independent
26analysis, that 0.4 percentage point increases are not

 

 

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1cost-effectively achievable. The Commission shall inform its
2decision based on an energy efficiency potential study that
3conforms to the requirements of this Section.
4    (b-20) Each electric utility subject to this Section may
5include cost-effective voltage optimization measures in its
6plans submitted under subsections (f) and (g) of this Section,
7and the costs incurred by a utility to implement the measures
8under a Commission-approved plan shall be recovered under the
9provisions of Article IX or Section 16-108.5 of this Act. For
10purposes of this Section, the measure life of voltage
11optimization measures shall be 15 years. The measure life
12period is independent of the depreciation rate of the voltage
13optimization assets deployed. Utilities may claim savings from
14voltage optimization on circuits for more than 15 years if
15they can demonstrate that they have made additional
16investments necessary to enable voltage optimization savings
17to continue beyond 15 years. Such demonstrations must be
18subject to the review of independent evaluation.
19    Within 270 days after June 1, 2017 (the effective date of
20Public Act 99-906), an electric utility that serves less than
213,000,000 retail customers but more than 500,000 retail
22customers in the State shall file a plan with the Commission
23that identifies the cost-effective voltage optimization
24investment the electric utility plans to undertake through
25December 31, 2024. The Commission, after notice and hearing,
26shall approve or approve with modification the plan within 120

 

 

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1days after the plan's filing and, in the order approving or
2approving with modification the plan, the Commission shall
3adjust the applicable cumulative persisting annual savings
4goals set forth in subsection (b-15) to reflect any amount of
5cost-effective energy savings approved by the Commission that
6is greater than or less than the following cumulative
7persisting annual savings values attributable to voltage
8optimization for the applicable year:
9        (1) 0.0% of cumulative persisting annual savings for
10    the year ending December 31, 2018;
11        (2) 0.17% of cumulative persisting annual savings for
12    the year ending December 31, 2019;
13        (3) 0.17% of cumulative persisting annual savings for
14    the year ending December 31, 2020;
15        (4) 0.33% of cumulative persisting annual savings for
16    the year ending December 31, 2021;
17        (5) 0.5% of cumulative persisting annual savings for
18    the year ending December 31, 2022;
19        (6) 0.67% of cumulative persisting annual savings for
20    the year ending December 31, 2023;
21        (7) 0.83% of cumulative persisting annual savings for
22    the year ending December 31, 2024; and
23        (8) 1.0% of cumulative persisting annual savings for
24    the year ending December 31, 2025 and all subsequent
25    years.
26    (b-25) In the event an electric utility jointly offers an

 

 

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1energy efficiency measure or program with a gas utility under
2plans approved under this Section and Section 8-104 of this
3Act, the electric utility may continue offering the program,
4including the gas energy efficiency measures, in the event the
5gas utility discontinues funding the program. In that event,
6the energy savings value associated with such other fuels
7shall be converted to electric energy savings on an equivalent
8Btu basis for the premises. However, the electric utility
9shall prioritize programs for low-income residential customers
10to the extent practicable. An electric utility may recover the
11costs of offering the gas energy efficiency measures under
12this subsection (b-25).
13    For those energy efficiency measures or programs that save
14both electricity and other fuels but are not jointly offered
15with a gas utility under plans approved under this Section and
16Section 8-104 or not offered with an affiliated gas utility
17under paragraph (6) of subsection (f) of Section 8-104 of this
18Act, the electric utility may count savings of fuels other
19than electricity toward the achievement of its annual savings
20goal, and the energy savings value associated with such other
21fuels shall be converted to electric energy savings on an
22equivalent Btu basis at the premises.
23    In no event shall more than 10% of each year's applicable
24annual total savings requirement as defined in paragraph (7.5)
25of subsection (g) of this Section be met through savings of
26fuels other than electricity.

 

 

HB5539 Engrossed- 31 -LRB103 38494 CES 68630 b

1    (b-27) Beginning in 2022, an electric utility may offer
2and promote measures that electrify space heating, water
3heating, cooling, drying, cooking, industrial processes, and
4other building and industrial end uses that would otherwise be
5served by combustion of fossil fuel at the premises, provided
6that the electrification measures reduce total energy
7consumption at the premises. The electric utility may count
8the reduction in energy consumption at the premises toward
9achievement of its annual savings goals. The reduction in
10energy consumption at the premises shall be calculated as the
11difference between: (A) the reduction in Btu consumption of
12fossil fuels as a result of electrification, converted to
13kilowatt-hour equivalents by dividing by 3,412 Btus per
14kilowatt hour; and (B) the increase in kilowatt hours of
15electricity consumption resulting from the displacement of
16fossil fuel consumption as a result of electrification. An
17electric utility may recover the costs of offering and
18promoting electrification measures under this subsection
19(b-27).
20    In no event shall electrification savings counted toward
21each year's applicable annual total savings requirement, as
22defined in paragraph (7.5) of subsection (g) of this Section,
23be greater than:
24        (1) 5% per year for each year from 2022 through 2025;
25        (2) 10% per year for each year from 2026 through 2029;
26    and

 

 

HB5539 Engrossed- 32 -LRB103 38494 CES 68630 b

1        (3) 15% per year for 2030 and all subsequent years.
2In addition, a minimum of 25% of all electrification savings
3counted toward a utility's applicable annual total savings
4requirement must be from electrification of end uses in
5low-income housing. The limitations on electrification savings
6that may be counted toward a utility's annual savings goals
7are separate from and in addition to the subsection (b-25)
8limitations governing the counting of the other fuel savings
9resulting from efficiency measures and programs.
10    As part of the annual informational filing to the
11Commission that is required under paragraph (9) of subsection
12(g) of this Section, each utility shall identify the specific
13electrification measures offered under this subsection (b-27);
14the quantity of each electrification measure that was
15installed by its customers; the average total cost, average
16utility cost, average reduction in fossil fuel consumption,
17and average increase in electricity consumption associated
18with each electrification measure; the portion of
19installations of each electrification measure that were in
20low-income single-family housing, low-income multifamily
21housing, non-low-income single-family housing, non-low-income
22multifamily housing, commercial buildings, and industrial
23facilities; and the quantity of savings associated with each
24measure category in each customer category that are being
25counted toward the utility's applicable annual total savings
26requirement. Prior to installing an electrification measure,

 

 

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1the utility shall provide a customer with an estimate of the
2impact of the new measure on the customer's average monthly
3electric bill and total annual energy expenses.
4    (c) Electric utilities shall be responsible for overseeing
5the design, development, and filing of energy efficiency plans
6with the Commission and may, as part of that implementation,
7outsource various aspects of program development and
8implementation. A minimum of 10%, for electric utilities that
9serve more than 3,000,000 retail customers in the State, and a
10minimum of 7%, for electric utilities that serve less than
113,000,000 retail customers but more than 500,000 retail
12customers in the State, of the utility's entire portfolio
13funding level for a given year shall be used to procure
14cost-effective energy efficiency measures from units of local
15government, municipal corporations, school districts, public
16housing, public institutions of higher education, and
17community college districts, provided that a minimum
18percentage of available funds shall be used to procure energy
19efficiency from public housing, which percentage shall be
20equal to public housing's share of public building energy
21consumption.
22    The utilities shall also implement energy efficiency
23measures targeted at low-income households, which, for
24purposes of this Section, shall be defined as households at or
25below 80% of area median income, and expenditures to implement
26the measures shall be no less than $40,000,000 per year for

 

 

HB5539 Engrossed- 34 -LRB103 38494 CES 68630 b

1electric utilities that serve more than 3,000,000 retail
2customers in the State and no less than $13,000,000 per year
3for electric utilities that serve less than 3,000,000 retail
4customers but more than 500,000 retail customers in the State.
5The ratio of spending on efficiency programs targeted at
6low-income multifamily buildings to spending on efficiency
7programs targeted at low-income single-family buildings shall
8be designed to achieve levels of savings from each building
9type that are approximately proportional to the magnitude of
10cost-effective lifetime savings potential in each building
11type. Investment in low-income whole-building weatherization
12programs shall constitute a minimum of 80% of a utility's
13total budget specifically dedicated to serving low-income
14customers.
15    The utilities shall work to bundle low-income energy
16efficiency offerings with other programs that serve low-income
17households to maximize the benefits going to these households.
18The utilities shall market and implement low-income energy
19efficiency programs in coordination with low-income assistance
20programs, the Illinois Solar for All Program, and
21weatherization whenever practicable. The program implementer
22shall walk the customer through the enrollment process for any
23programs for which the customer is eligible. The utilities
24shall also pilot targeting customers with high arrearages,
25high energy intensity (ratio of energy usage divided by home
26or unit square footage), or energy assistance programs with

 

 

HB5539 Engrossed- 35 -LRB103 38494 CES 68630 b

1energy efficiency offerings, and then track reduction in
2arrearages as a result of the targeting. This targeting and
3bundling of low-income energy programs shall be offered to
4both low-income single-family and multifamily customers
5(owners and residents).
6    The utilities shall invest in health and safety measures
7appropriate and necessary for comprehensively weatherizing a
8home or multifamily building, and shall implement a health and
9safety fund of at least 15% of the total income-qualified
10weatherization budget that shall be used for the purpose of
11making grants for technical assistance, construction,
12reconstruction, improvement, or repair of buildings to
13facilitate their participation in the energy efficiency
14programs targeted at low-income single-family and multifamily
15households. These funds may also be used for the purpose of
16making grants for technical assistance, construction,
17reconstruction, improvement, or repair of the following
18buildings to facilitate their participation in the energy
19efficiency programs created by this Section: (1) buildings
20that are owned or operated by registered 501(c)(3) public
21charities; and (2) day care centers, day care homes, or group
22day care homes, as defined under 89 Ill. Adm. Code Part 406,
23407, or 408, respectively.
24    Each electric utility shall assess opportunities to
25implement cost-effective energy efficiency measures and
26programs through a public housing authority or authorities

 

 

HB5539 Engrossed- 36 -LRB103 38494 CES 68630 b

1located in its service territory. If such opportunities are
2identified, the utility shall propose such measures and
3programs to address the opportunities. Expenditures to address
4such opportunities shall be credited toward the minimum
5procurement and expenditure requirements set forth in this
6subsection (c).
7    Implementation of energy efficiency measures and programs
8targeted at low-income households should be contracted, when
9it is practicable, to independent third parties that have
10demonstrated capabilities to serve such households, with a
11preference for not-for-profit entities and government agencies
12that have existing relationships with or experience serving
13low-income communities in the State.
14    Each electric utility shall develop and implement
15reporting procedures that address and assist in determining
16the amount of energy savings that can be applied to the
17low-income procurement and expenditure requirements set forth
18in this subsection (c). Each electric utility shall also track
19the types and quantities or volumes of insulation and air
20sealing materials, and their associated energy saving
21benefits, installed in energy efficiency programs targeted at
22low-income single-family and multifamily households.
23    The electric utilities shall participate in a low-income
24energy efficiency accountability committee ("the committee"),
25which will directly inform the design, implementation, and
26evaluation of the low-income and public-housing energy

 

 

HB5539 Engrossed- 37 -LRB103 38494 CES 68630 b

1efficiency programs. The committee shall be comprised of the
2electric utilities subject to the requirements of this
3Section, the gas utilities subject to the requirements of
4Section 8-104 of this Act, the utilities' low-income energy
5efficiency implementation contractors, nonprofit
6organizations, community action agencies, advocacy groups,
7State and local governmental agencies, public-housing
8organizations, and representatives of community-based
9organizations, especially those living in or working with
10environmental justice communities and BIPOC communities. The
11committee shall be composed of 2 geographically differentiated
12subcommittees: one for stakeholders in northern Illinois and
13one for stakeholders in central and southern Illinois. The
14subcommittees shall meet together at least twice per year.
15    There shall be one statewide leadership committee led by
16and composed of community-based organizations that are
17representative of BIPOC and environmental justice communities
18and that includes equitable representation from BIPOC
19communities. The leadership committee shall be composed of an
20equal number of representatives from the 2 subcommittees. The
21subcommittees shall address specific programs and issues, with
22the leadership committee convening targeted workgroups as
23needed. The leadership committee may elect to work with an
24independent facilitator to solicit and organize feedback,
25recommendations and meeting participation from a wide variety
26of community-based stakeholders. If a facilitator is used,

 

 

HB5539 Engrossed- 38 -LRB103 38494 CES 68630 b

1they shall be fair and responsive to the needs of all
2stakeholders involved in the committee.
3     All committee meetings must be accessible, with rotating
4locations if meetings are held in-person, virtual
5participation options, and materials and agendas circulated in
6advance.
7    There shall also be opportunities for direct input by
8committee members outside of committee meetings, such as via
9individual meetings, surveys, emails and calls, to ensure
10robust participation by stakeholders with limited capacity and
11ability to attend committee meetings. Committee meetings shall
12emphasize opportunities to bundle and coordinate delivery of
13low-income energy efficiency with other programs that serve
14low-income communities, such as the Illinois Solar for All
15Program and bill payment assistance programs. Meetings shall
16include educational opportunities for stakeholders to learn
17more about these additional offerings, and the committee shall
18assist in figuring out the best methods for coordinated
19delivery and implementation of offerings when serving
20low-income communities. The committee shall directly and
21equitably influence and inform utility low-income and
22public-housing energy efficiency programs and priorities.
23Participating utilities shall implement recommendations from
24the committee whenever possible.
25    Participating utilities shall track and report how input
26from the committee has led to new approaches and changes in

 

 

HB5539 Engrossed- 39 -LRB103 38494 CES 68630 b

1their energy efficiency portfolios. This reporting shall occur
2at committee meetings and in quarterly energy efficiency
3reports to the Stakeholder Advisory Group and Illinois
4Commerce Commission, and other relevant reporting mechanisms.
5Participating utilities shall also report on relevant equity
6data and metrics requested by the committee, such as energy
7burden data, geographic, racial, and other relevant
8demographic data on where programs are being delivered and
9what populations programs are serving.
10    The Illinois Commerce Commission shall oversee and have
11relevant staff participate in the committee. The committee
12shall have a budget of 0.25% of each utility's entire
13efficiency portfolio funding for a given year. The budget
14shall be overseen by the Commission. The budget shall be used
15to provide grants for community-based organizations serving on
16the leadership committee, stipends for community-based
17organizations participating in the committee, grants for
18community-based organizations to do energy efficiency outreach
19and education, and relevant meeting needs as determined by the
20leadership committee. The education and outreach shall
21include, but is not limited to, basic energy efficiency
22education, information about low-income energy efficiency
23programs, and information on the committee's purpose,
24structure, and activities.
25    (d) Notwithstanding any other provision of law to the
26contrary, a utility providing approved energy efficiency

 

 

HB5539 Engrossed- 40 -LRB103 38494 CES 68630 b

1measures and, if applicable, demand-response measures in the
2State shall be permitted to recover all reasonable and
3prudently incurred costs of those measures from all retail
4customers, except as provided in subsection (l) of this
5Section, as follows, provided that nothing in this subsection
6(d) permits the double recovery of such costs from customers:
7        (1) The utility may recover its costs through an
8    automatic adjustment clause tariff filed with and approved
9    by the Commission. The tariff shall be established outside
10    the context of a general rate case. Each year the
11    Commission shall initiate a review to reconcile any
12    amounts collected with the actual costs and to determine
13    the required adjustment to the annual tariff factor to
14    match annual expenditures. To enable the financing of the
15    incremental capital expenditures, including regulatory
16    assets, for electric utilities that serve less than
17    3,000,000 retail customers but more than 500,000 retail
18    customers in the State, the utility's actual year-end
19    capital structure that includes a common equity ratio,
20    excluding goodwill, of up to and including 50% of the
21    total capital structure shall be deemed reasonable and
22    used to set rates.
23        (2) A utility may recover its costs through an energy
24    efficiency formula rate approved by the Commission under a
25    filing under subsections (f) and (g) of this Section,
26    which shall specify the cost components that form the

 

 

HB5539 Engrossed- 41 -LRB103 38494 CES 68630 b

1    basis of the rate charged to customers with sufficient
2    specificity to operate in a standardized manner and be
3    updated annually with transparent information that
4    reflects the utility's actual costs to be recovered during
5    the applicable rate year, which is the period beginning
6    with the first billing day of January and extending
7    through the last billing day of the following December.
8    The energy efficiency formula rate shall be implemented
9    through a tariff filed with the Commission under
10    subsections (f) and (g) of this Section that is consistent
11    with the provisions of this paragraph (2) and that shall
12    be applicable to all delivery services customers. The
13    Commission shall conduct an investigation of the tariff in
14    a manner consistent with the provisions of this paragraph
15    (2), subsections (f) and (g) of this Section, and the
16    provisions of Article IX of this Act to the extent they do
17    not conflict with this paragraph (2). The energy
18    efficiency formula rate approved by the Commission shall
19    remain in effect at the discretion of the utility and
20    shall do the following:
21            (A) Provide for the recovery of the utility's
22        actual costs incurred under this Section that are
23        prudently incurred and reasonable in amount consistent
24        with Commission practice and law. The sole fact that a
25        cost differs from that incurred in a prior calendar
26        year or that an investment is different from that made

 

 

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1        in a prior calendar year shall not imply the
2        imprudence or unreasonableness of that cost or
3        investment.
4            (B) Reflect the utility's actual year-end capital
5        structure for the applicable calendar year, excluding
6        goodwill, subject to a determination of prudence and
7        reasonableness consistent with Commission practice and
8        law. To enable the financing of the incremental
9        capital expenditures, including regulatory assets, for
10        electric utilities that serve less than 3,000,000
11        retail customers but more than 500,000 retail
12        customers in the State, a participating electric
13        utility's actual year-end capital structure that
14        includes a common equity ratio, excluding goodwill, of
15        up to and including 50% of the total capital structure
16        shall be deemed reasonable and used to set rates.
17            (C) Include a cost of equity, which shall be
18        calculated as the sum of the following:
19                (i) the average for the applicable calendar
20            year of the monthly average yields of 30-year U.S.
21            Treasury bonds published by the Board of Governors
22            of the Federal Reserve System in its weekly H.15
23            Statistical Release or successor publication; and
24                (ii) 580 basis points.
25            At such time as the Board of Governors of the
26        Federal Reserve System ceases to include the monthly

 

 

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1        average yields of 30-year U.S. Treasury bonds in its
2        weekly H.15 Statistical Release or successor
3        publication, the monthly average yields of the U.S.
4        Treasury bonds then having the longest duration
5        published by the Board of Governors in its weekly H.15
6        Statistical Release or successor publication shall
7        instead be used for purposes of this paragraph (2).
8            (D) Permit and set forth protocols, subject to a
9        determination of prudence and reasonableness
10        consistent with Commission practice and law, for the
11        following:
12                (i) recovery of incentive compensation expense
13            that is based on the achievement of operational
14            metrics, including metrics related to budget
15            controls, outage duration and frequency, safety,
16            customer service, efficiency and productivity, and
17            environmental compliance; however, this protocol
18            shall not apply if such expense related to costs
19            incurred under this Section is recovered under
20            Article IX or Section 16-108.5 of this Act;
21            incentive compensation expense that is based on
22            net income or an affiliate's earnings per share
23            shall not be recoverable under the energy
24            efficiency formula rate;
25                (ii) recovery of pension and other
26            post-employment benefits expense, provided that

 

 

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1            such costs are supported by an actuarial study;
2            however, this protocol shall not apply if such
3            expense related to costs incurred under this
4            Section is recovered under Article IX or Section
5            16-108.5 of this Act;
6                (iii) recovery of existing regulatory assets
7            over the periods previously authorized by the
8            Commission;
9                (iv) as described in subsection (e),
10            amortization of costs incurred under this Section;
11            and
12                (v) projected, weather normalized billing
13            determinants for the applicable rate year.
14            (E) Provide for an annual reconciliation, as
15        described in paragraph (3) of this subsection (d),
16        less any deferred taxes related to the reconciliation,
17        with interest at an annual rate of return equal to the
18        utility's weighted average cost of capital, including
19        a revenue conversion factor calculated to recover or
20        refund all additional income taxes that may be payable
21        or receivable as a result of that return, of the energy
22        efficiency revenue requirement reflected in rates for
23        each calendar year, beginning with the calendar year
24        in which the utility files its energy efficiency
25        formula rate tariff under this paragraph (2), with
26        what the revenue requirement would have been had the

 

 

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1        actual cost information for the applicable calendar
2        year been available at the filing date.
3        The utility shall file, together with its tariff, the
4    projected costs to be incurred by the utility during the
5    rate year under the utility's multi-year plan approved
6    under subsections (f) and (g) of this Section, including,
7    but not limited to, the projected capital investment costs
8    and projected regulatory asset balances with
9    correspondingly updated depreciation and amortization
10    reserves and expense, that shall populate the energy
11    efficiency formula rate and set the initial rates under
12    the formula.
13        The Commission shall review the proposed tariff in
14    conjunction with its review of a proposed multi-year plan,
15    as specified in paragraph (5) of subsection (g) of this
16    Section. The review shall be based on the same evidentiary
17    standards, including, but not limited to, those concerning
18    the prudence and reasonableness of the costs incurred by
19    the utility, the Commission applies in a hearing to review
20    a filing for a general increase in rates under Article IX
21    of this Act. The initial rates shall take effect beginning
22    with the January monthly billing period following the
23    Commission's approval.
24        The tariff's rate design and cost allocation across
25    customer classes shall be consistent with the utility's
26    automatic adjustment clause tariff in effect on June 1,

 

 

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1    2017 (the effective date of Public Act 99-906); however,
2    the Commission may revise the tariff's rate design and
3    cost allocation in subsequent proceedings under paragraph
4    (3) of this subsection (d).
5        If the energy efficiency formula rate is terminated,
6    the then current rates shall remain in effect until such
7    time as the energy efficiency costs are incorporated into
8    new rates that are set under this subsection (d) or
9    Article IX of this Act, subject to retroactive rate
10    adjustment, with interest, to reconcile rates charged with
11    actual costs.
12        (3) The provisions of this paragraph (3) shall only
13    apply to an electric utility that has elected to file an
14    energy efficiency formula rate under paragraph (2) of this
15    subsection (d). Subsequent to the Commission's issuance of
16    an order approving the utility's energy efficiency formula
17    rate structure and protocols, and initial rates under
18    paragraph (2) of this subsection (d), the utility shall
19    file, on or before June 1 of each year, with the Chief
20    Clerk of the Commission its updated cost inputs to the
21    energy efficiency formula rate for the applicable rate
22    year and the corresponding new charges, as well as the
23    information described in paragraph (9) of subsection (g)
24    of this Section. Each such filing shall conform to the
25    following requirements and include the following
26    information:

 

 

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1            (A) The inputs to the energy efficiency formula
2        rate for the applicable rate year shall be based on the
3        projected costs to be incurred by the utility during
4        the rate year under the utility's multi-year plan
5        approved under subsections (f) and (g) of this
6        Section, including, but not limited to, projected
7        capital investment costs and projected regulatory
8        asset balances with correspondingly updated
9        depreciation and amortization reserves and expense.
10        The filing shall also include a reconciliation of the
11        energy efficiency revenue requirement that was in
12        effect for the prior rate year (as set by the cost
13        inputs for the prior rate year) with the actual
14        revenue requirement for the prior rate year
15        (determined using a year-end rate base) that uses
16        amounts reflected in the applicable FERC Form 1 that
17        reports the actual costs for the prior rate year. Any
18        over-collection or under-collection indicated by such
19        reconciliation shall be reflected as a credit against,
20        or recovered as an additional charge to, respectively,
21        with interest calculated at a rate equal to the
22        utility's weighted average cost of capital approved by
23        the Commission for the prior rate year, the charges
24        for the applicable rate year. Such over-collection or
25        under-collection shall be adjusted to remove any
26        deferred taxes related to the reconciliation, for

 

 

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1        purposes of calculating interest at an annual rate of
2        return equal to the utility's weighted average cost of
3        capital approved by the Commission for the prior rate
4        year, including a revenue conversion factor calculated
5        to recover or refund all additional income taxes that
6        may be payable or receivable as a result of that
7        return. Each reconciliation shall be certified by the
8        participating utility in the same manner that FERC
9        Form 1 is certified. The filing shall also include the
10        charge or credit, if any, resulting from the
11        calculation required by subparagraph (E) of paragraph
12        (2) of this subsection (d).
13            Notwithstanding any other provision of law to the
14        contrary, the intent of the reconciliation is to
15        ultimately reconcile both the revenue requirement
16        reflected in rates for each calendar year, beginning
17        with the calendar year in which the utility files its
18        energy efficiency formula rate tariff under paragraph
19        (2) of this subsection (d), with what the revenue
20        requirement determined using a year-end rate base for
21        the applicable calendar year would have been had the
22        actual cost information for the applicable calendar
23        year been available at the filing date.
24            For purposes of this Section, "FERC Form 1" means
25        the Annual Report of Major Electric Utilities,
26        Licensees and Others that electric utilities are

 

 

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1        required to file with the Federal Energy Regulatory
2        Commission under the Federal Power Act, Sections 3,
3        4(a), 304 and 209, modified as necessary to be
4        consistent with 83 Ill. Adm. Code Part 415 as of May 1,
5        2011. Nothing in this Section is intended to allow
6        costs that are not otherwise recoverable to be
7        recoverable by virtue of inclusion in FERC Form 1.
8            (B) The new charges shall take effect beginning on
9        the first billing day of the following January billing
10        period and remain in effect through the last billing
11        day of the next December billing period regardless of
12        whether the Commission enters upon a hearing under
13        this paragraph (3).
14            (C) The filing shall include relevant and
15        necessary data and documentation for the applicable
16        rate year. Normalization adjustments shall not be
17        required.
18        Within 45 days after the utility files its annual
19    update of cost inputs to the energy efficiency formula
20    rate, the Commission shall with reasonable notice,
21    initiate a proceeding concerning whether the projected
22    costs to be incurred by the utility and recovered during
23    the applicable rate year, and that are reflected in the
24    inputs to the energy efficiency formula rate, are
25    consistent with the utility's approved multi-year plan
26    under subsections (f) and (g) of this Section and whether

 

 

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1    the costs incurred by the utility during the prior rate
2    year were prudent and reasonable. The Commission shall
3    also have the authority to investigate the information and
4    data described in paragraph (9) of subsection (g) of this
5    Section, including the proposed adjustment to the
6    utility's return on equity component of its weighted
7    average cost of capital. During the course of the
8    proceeding, each objection shall be stated with
9    particularity and evidence provided in support thereof,
10    after which the utility shall have the opportunity to
11    rebut the evidence. Discovery shall be allowed consistent
12    with the Commission's Rules of Practice, which Rules of
13    Practice shall be enforced by the Commission or the
14    assigned administrative law judge. The Commission shall
15    apply the same evidentiary standards, including, but not
16    limited to, those concerning the prudence and
17    reasonableness of the costs incurred by the utility,
18    during the proceeding as it would apply in a proceeding to
19    review a filing for a general increase in rates under
20    Article IX of this Act. The Commission shall not, however,
21    have the authority in a proceeding under this paragraph
22    (3) to consider or order any changes to the structure or
23    protocols of the energy efficiency formula rate approved
24    under paragraph (2) of this subsection (d). In a
25    proceeding under this paragraph (3), the Commission shall
26    enter its order no later than the earlier of 195 days after

 

 

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1    the utility's filing of its annual update of cost inputs
2    to the energy efficiency formula rate or December 15. The
3    utility's proposed return on equity calculation, as
4    described in paragraphs (7) through (9) of subsection (g)
5    of this Section, shall be deemed the final, approved
6    calculation on December 15 of the year in which it is filed
7    unless the Commission enters an order on or before
8    December 15, after notice and hearing, that modifies such
9    calculation consistent with this Section. The Commission's
10    determinations of the prudence and reasonableness of the
11    costs incurred, and determination of such return on equity
12    calculation, for the applicable calendar year shall be
13    final upon entry of the Commission's order and shall not
14    be subject to reopening, reexamination, or collateral
15    attack in any other Commission proceeding, case, docket,
16    order, rule, or regulation; however, nothing in this
17    paragraph (3) shall prohibit a party from petitioning the
18    Commission to rehear or appeal to the courts the order
19    under the provisions of this Act.
20    (e) Beginning on June 1, 2017 (the effective date of
21Public Act 99-906), a utility subject to the requirements of
22this Section may elect to defer, as a regulatory asset, up to
23the full amount of its expenditures incurred under this
24Section for each annual period, including, but not limited to,
25any expenditures incurred above the funding level set by
26subsection (f) of this Section for a given year. The total

 

 

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1expenditures deferred as a regulatory asset in a given year
2shall be amortized and recovered over a period that is equal to
3the weighted average of the energy efficiency measure lives
4implemented for that year that are reflected in the regulatory
5asset. The unamortized balance shall be recognized as of
6December 31 for a given year. The utility shall also earn a
7return on the total of the unamortized balances of all of the
8energy efficiency regulatory assets, less any deferred taxes
9related to those unamortized balances, at an annual rate equal
10to the utility's weighted average cost of capital that
11includes, based on a year-end capital structure, the utility's
12actual cost of debt for the applicable calendar year and a cost
13of equity, which shall be calculated as the sum of the (i) the
14average for the applicable calendar year of the monthly
15average yields of 30-year U.S. Treasury bonds published by the
16Board of Governors of the Federal Reserve System in its weekly
17H.15 Statistical Release or successor publication; and (ii)
18580 basis points, including a revenue conversion factor
19calculated to recover or refund all additional income taxes
20that may be payable or receivable as a result of that return.
21Capital investment costs shall be depreciated and recovered
22over their useful lives consistent with generally accepted
23accounting principles. The weighted average cost of capital
24shall be applied to the capital investment cost balance, less
25any accumulated depreciation and accumulated deferred income
26taxes, as of December 31 for a given year.

 

 

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1    When an electric utility creates a regulatory asset under
2the provisions of this Section, the costs are recovered over a
3period during which customers also receive a benefit which is
4in the public interest. Accordingly, it is the intent of the
5General Assembly that an electric utility that elects to
6create a regulatory asset under the provisions of this Section
7shall recover all of the associated costs as set forth in this
8Section. After the Commission has approved the prudence and
9reasonableness of the costs that comprise the regulatory
10asset, the electric utility shall be permitted to recover all
11such costs, and the value and recoverability through rates of
12the associated regulatory asset shall not be limited, altered,
13impaired, or reduced.
14    (f) Beginning in 2017, each electric utility shall file an
15energy efficiency plan with the Commission to meet the energy
16efficiency standards for the next applicable multi-year period
17beginning January 1 of the year following the filing,
18according to the schedule set forth in paragraphs (1) through
19(3) of this subsection (f). If a utility does not file such a
20plan on or before the applicable filing deadline for the plan,
21it shall face a penalty of $100,000 per day until the plan is
22filed.
23        (1) No later than 30 days after June 1, 2017 (the
24    effective date of Public Act 99-906), each electric
25    utility shall file a 4-year energy efficiency plan
26    commencing on January 1, 2018 that is designed to achieve

 

 

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1    the cumulative persisting annual savings goals specified
2    in paragraphs (1) through (4) of subsection (b-5) of this
3    Section or in paragraphs (1) through (4) of subsection
4    (b-15) of this Section, as applicable, through
5    implementation of energy efficiency measures; however, the
6    goals may be reduced if the utility's expenditures are
7    limited pursuant to subsection (m) of this Section or, for
8    a utility that serves less than 3,000,000 retail
9    customers, if each of the following conditions are met:
10    (A) the plan's analysis and forecasts of the utility's
11    ability to acquire energy savings demonstrate that
12    achievement of such goals is not cost effective; and (B)
13    the amount of energy savings achieved by the utility as
14    determined by the independent evaluator for the most
15    recent year for which savings have been evaluated
16    preceding the plan filing was less than the average annual
17    amount of savings required to achieve the goals for the
18    applicable 4-year plan period. Except as provided in
19    subsection (m) of this Section, annual increases in
20    cumulative persisting annual savings goals during the
21    applicable 4-year plan period shall not be reduced to
22    amounts that are less than the maximum amount of
23    cumulative persisting annual savings that is forecast to
24    be cost-effectively achievable during the 4-year plan
25    period. The Commission shall review any proposed goal
26    reduction as part of its review and approval of the

 

 

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1    utility's proposed plan.
2        (2) No later than March 1, 2021, each electric utility
3    shall file a 4-year energy efficiency plan commencing on
4    January 1, 2022 that is designed to achieve the cumulative
5    persisting annual savings goals specified in paragraphs
6    (5) through (8) of subsection (b-5) of this Section or in
7    paragraphs (5) through (8) of subsection (b-15) of this
8    Section, as applicable, through implementation of energy
9    efficiency measures; however, the goals may be reduced if
10    either (1) clear and convincing evidence demonstrates,
11    through independent analysis, that the expenditure limits
12    in subsection (m) of this Section preclude full
13    achievement of the goals or (2) each of the following
14    conditions are met: (A) the plan's analysis and forecasts
15    of the utility's ability to acquire energy savings
16    demonstrate by clear and convincing evidence and through
17    independent analysis that achievement of such goals is not
18    cost effective; and (B) the amount of energy savings
19    achieved by the utility as determined by the independent
20    evaluator for the most recent year for which savings have
21    been evaluated preceding the plan filing was less than the
22    average annual amount of savings required to achieve the
23    goals for the applicable 4-year plan period. If there is
24    not clear and convincing evidence that achieving the
25    savings goals specified in paragraph (b-5) or (b-15) of
26    this Section is possible both cost-effectively and within

 

 

HB5539 Engrossed- 56 -LRB103 38494 CES 68630 b

1    the expenditure limits in subsection (m), such savings
2    goals shall not be reduced. Except as provided in
3    subsection (m) of this Section, annual increases in
4    cumulative persisting annual savings goals during the
5    applicable 4-year plan period shall not be reduced to
6    amounts that are less than the maximum amount of
7    cumulative persisting annual savings that is forecast to
8    be cost-effectively achievable during the 4-year plan
9    period. The Commission shall review any proposed goal
10    reduction as part of its review and approval of the
11    utility's proposed plan.
12        (3) No later than March 1, 2025, each electric utility
13    shall file a 4-year energy efficiency plan commencing on
14    January 1, 2026 that is designed to achieve the cumulative
15    persisting annual savings goals specified in paragraphs
16    (9) through (12) of subsection (b-5) of this Section or in
17    paragraphs (9) through (12) of subsection (b-15) of this
18    Section, as applicable, through implementation of energy
19    efficiency measures; however, the goals may be reduced if
20    either (1) clear and convincing evidence demonstrates,
21    through independent analysis, that the expenditure limits
22    in subsection (m) of this Section preclude full
23    achievement of the goals or (2) each of the following
24    conditions are met: (A) the plan's analysis and forecasts
25    of the utility's ability to acquire energy savings
26    demonstrate by clear and convincing evidence and through

 

 

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1    independent analysis that achievement of such goals is not
2    cost effective; and (B) the amount of energy savings
3    achieved by the utility as determined by the independent
4    evaluator for the most recent year for which savings have
5    been evaluated preceding the plan filing was less than the
6    average annual amount of savings required to achieve the
7    goals for the applicable 4-year plan period. If there is
8    not clear and convincing evidence that achieving the
9    savings goals specified in paragraphs (b-5) or (b-15) of
10    this Section is possible both cost-effectively and within
11    the expenditure limits in subsection (m), such savings
12    goals shall not be reduced. Except as provided in
13    subsection (m) of this Section, annual increases in
14    cumulative persisting annual savings goals during the
15    applicable 4-year plan period shall not be reduced to
16    amounts that are less than the maximum amount of
17    cumulative persisting annual savings that is forecast to
18    be cost-effectively achievable during the 4-year plan
19    period. The Commission shall review any proposed goal
20    reduction as part of its review and approval of the
21    utility's proposed plan.
22        (4) No later than March 1, 2029, and every 4 years
23    thereafter, each electric utility shall file a 4-year
24    energy efficiency plan commencing on January 1, 2030, and
25    every 4 years thereafter, respectively, that is designed
26    to achieve the cumulative persisting annual savings goals

 

 

HB5539 Engrossed- 58 -LRB103 38494 CES 68630 b

1    established by the Illinois Commerce Commission pursuant
2    to direction of subsections (b-5) and (b-15) of this
3    Section, as applicable, through implementation of energy
4    efficiency measures; however, the goals may be reduced if
5    either (1) clear and convincing evidence and independent
6    analysis demonstrates that the expenditure limits in
7    subsection (m) of this Section preclude full achievement
8    of the goals or (2) each of the following conditions are
9    met: (A) the plan's analysis and forecasts of the
10    utility's ability to acquire energy savings demonstrate by
11    clear and convincing evidence and through independent
12    analysis that achievement of such goals is not
13    cost-effective; and (B) the amount of energy savings
14    achieved by the utility as determined by the independent
15    evaluator for the most recent year for which savings have
16    been evaluated preceding the plan filing was less than the
17    average annual amount of savings required to achieve the
18    goals for the applicable 4-year plan period. If there is
19    not clear and convincing evidence that achieving the
20    savings goals specified in paragraphs (b-5) or (b-15) of
21    this Section is possible both cost-effectively and within
22    the expenditure limits in subsection (m), such savings
23    goals shall not be reduced. Except as provided in
24    subsection (m) of this Section, annual increases in
25    cumulative persisting annual savings goals during the
26    applicable 4-year plan period shall not be reduced to

 

 

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1    amounts that are less than the maximum amount of
2    cumulative persisting annual savings that is forecast to
3    be cost-effectively achievable during the 4-year plan
4    period. The Commission shall review any proposed goal
5    reduction as part of its review and approval of the
6    utility's proposed plan.
7    Each utility's plan shall set forth the utility's
8proposals to meet the energy efficiency standards identified
9in subsection (b-5) or (b-15), as applicable and as such
10standards may have been modified under this subsection (f),
11taking into account the unique circumstances of the utility's
12service territory. For those plans commencing on January 1,
132018, the Commission shall seek public comment on the
14utility's plan and shall issue an order approving or
15disapproving each plan no later than 105 days after June 1,
162017 (the effective date of Public Act 99-906). For those
17plans commencing after December 31, 2021, the Commission shall
18seek public comment on the utility's plan and shall issue an
19order approving or disapproving each plan within 6 months
20after its submission. If the Commission disapproves a plan,
21the Commission shall, within 30 days, describe in detail the
22reasons for the disapproval and describe a path by which the
23utility may file a revised draft of the plan to address the
24Commission's concerns satisfactorily. If the utility does not
25refile with the Commission within 60 days, the utility shall
26be subject to penalties at a rate of $100,000 per day until the

 

 

HB5539 Engrossed- 60 -LRB103 38494 CES 68630 b

1plan is filed. This process shall continue, and penalties
2shall accrue, until the utility has successfully filed a
3portfolio of energy efficiency and demand-response measures.
4Penalties shall be deposited into the Energy Efficiency Trust
5Fund.
6    (g) In submitting proposed plans and funding levels under
7subsection (f) of this Section to meet the savings goals
8identified in subsection (b-5) or (b-15) of this Section, as
9applicable, the utility shall:
10        (1) Demonstrate that its proposed energy efficiency
11    measures will achieve the applicable requirements that are
12    identified in subsection (b-5) or (b-15) of this Section,
13    as modified by subsection (f) of this Section.
14        (2) (Blank).
15        (2.5) Demonstrate consideration of program options for
16    (A) advancing new building codes, appliance standards, and
17    municipal regulations governing existing and new building
18    efficiency improvements and (B) supporting efforts to
19    improve compliance with new building codes, appliance
20    standards and municipal regulations, as potentially
21    cost-effective means of acquiring energy savings to count
22    toward savings goals.
23        (3) Demonstrate that its overall portfolio of
24    measures, not including low-income programs described in
25    subsection (c) of this Section, is cost-effective using
26    the total resource cost test or complies with paragraphs

 

 

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1    (1) through (3) of subsection (f) of this Section and
2    represents a diverse cross-section of opportunities for
3    customers of all rate classes, other than those customers
4    described in subsection (l) of this Section, to
5    participate in the programs. Individual measures need not
6    be cost effective.
7        (3.5) Demonstrate that the utility's plan integrates
8    the delivery of energy efficiency programs with natural
9    gas efficiency programs, programs promoting distributed
10    solar, programs promoting demand response and other
11    efforts to address bill payment issues, including, but not
12    limited to, LIHEAP and the Percentage of Income Payment
13    Plan, to the extent such integration is practical and has
14    the potential to enhance customer engagement, minimize
15    market confusion, or reduce administrative costs.
16        (4) Present a third-party energy efficiency
17    implementation program subject to the following
18    requirements:
19            (A) beginning with the year commencing January 1,
20        2019, electric utilities that serve more than
21        3,000,000 retail customers in the State shall fund
22        third-party energy efficiency programs in an amount
23        that is no less than $25,000,000 per year, and
24        electric utilities that serve less than 3,000,000
25        retail customers but more than 500,000 retail
26        customers in the State shall fund third-party energy

 

 

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1        efficiency programs in an amount that is no less than
2        $8,350,000 per year;
3            (B) during 2018, the utility shall conduct a
4        solicitation process for purposes of requesting
5        proposals from third-party vendors for those
6        third-party energy efficiency programs to be offered
7        during one or more of the years commencing January 1,
8        2019, January 1, 2020, and January 1, 2021; for those
9        multi-year plans commencing on January 1, 2022 and
10        January 1, 2026, the utility shall conduct a
11        solicitation process during 2021 and 2025,
12        respectively, for purposes of requesting proposals
13        from third-party vendors for those third-party energy
14        efficiency programs to be offered during one or more
15        years of the respective multi-year plan period; for
16        each solicitation process, the utility shall identify
17        the sector, technology, or geographical area for which
18        it is seeking requests for proposals; the solicitation
19        process must be either for programs that fill gaps in
20        the utility's program portfolio and for programs that
21        target low-income customers, business sectors,
22        building types, geographies, or other specific parts
23        of its customer base with initiatives that would be
24        more effective at reaching these customer segments
25        than the utilities' programs filed in its energy
26        efficiency plans;

 

 

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1            (C) the utility shall propose the bidder
2        qualifications, performance measurement process, and
3        contract structure, which must include a performance
4        payment mechanism and general terms and conditions;
5        the proposed qualifications, process, and structure
6        shall be subject to Commission approval; and
7            (D) the utility shall retain an independent third
8        party to score the proposals received through the
9        solicitation process described in this paragraph (4),
10        rank them according to their cost per lifetime
11        kilowatt-hours saved, and assemble the portfolio of
12        third-party programs.
13        The electric utility shall recover all costs
14    associated with Commission-approved, third-party
15    administered programs regardless of the success of those
16    programs.
17        (4.5) Implement cost-effective demand-response
18    measures to reduce peak demand by 0.1% over the prior year
19    for eligible retail customers, as defined in Section
20    16-111.5 of this Act, and for customers that elect hourly
21    service from the utility pursuant to Section 16-107 of
22    this Act, provided those customers have not been declared
23    competitive. This requirement continues until December 31,
24    2026.
25        (5) Include a proposed or revised cost-recovery tariff
26    mechanism, as provided for under subsection (d) of this

 

 

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1    Section, to fund the proposed energy efficiency and
2    demand-response measures and to ensure the recovery of the
3    prudently and reasonably incurred costs of
4    Commission-approved programs.
5        (6) Provide for an annual independent evaluation of
6    the performance of the cost-effectiveness of the utility's
7    portfolio of measures, as well as a full review of the
8    multi-year plan results of the broader net program impacts
9    and, to the extent practical, for adjustment of the
10    measures on a going-forward basis as a result of the
11    evaluations. The resources dedicated to evaluation shall
12    not exceed 3% of portfolio resources in any given year.
13        (7) For electric utilities that serve more than
14    3,000,000 retail customers in the State:
15            (A) Through December 31, 2025, provide for an
16        adjustment to the return on equity component of the
17        utility's weighted average cost of capital calculated
18        under subsection (d) of this Section:
19                (i) If the independent evaluator determines
20            that the utility achieved a cumulative persisting
21            annual savings that is less than the applicable
22            annual incremental goal, then the return on equity
23            component shall be reduced by a maximum of 200
24            basis points in the event that the utility
25            achieved no more than 75% of such goal. If the
26            utility achieved more than 75% of the applicable

 

 

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1            annual incremental goal but less than 100% of such
2            goal, then the return on equity component shall be
3            reduced by 8 basis points for each percent by
4            which the utility failed to achieve the goal.
5                (ii) If the independent evaluator determines
6            that the utility achieved a cumulative persisting
7            annual savings that is more than the applicable
8            annual incremental goal, then the return on equity
9            component shall be increased by a maximum of 200
10            basis points in the event that the utility
11            achieved at least 125% of such goal. If the
12            utility achieved more than 100% of the applicable
13            annual incremental goal but less than 125% of such
14            goal, then the return on equity component shall be
15            increased by 8 basis points for each percent by
16            which the utility achieved above the goal. If the
17            applicable annual incremental goal was reduced
18            under paragraph (1) or (2) of subsection (f) of
19            this Section, then the following adjustments shall
20            be made to the calculations described in this item
21            (ii):
22                    (aa) the calculation for determining
23                achievement that is at least 125% of the
24                applicable annual incremental goal shall use
25                the unreduced applicable annual incremental
26                goal to set the value; and

 

 

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1                    (bb) the calculation for determining
2                achievement that is less than 125% but more
3                than 100% of the applicable annual incremental
4                goal shall use the reduced applicable annual
5                incremental goal to set the value for 100%
6                achievement of the goal and shall use the
7                unreduced goal to set the value for 125%
8                achievement. The 8 basis point value shall
9                also be modified, as necessary, so that the
10                200 basis points are evenly apportioned among
11                each percentage point value between 100% and
12                125% achievement.
13            (B) For the period January 1, 2026 through
14        December 31, 2029 and in all subsequent 4-year
15        periods, provide for an adjustment to the return on
16        equity component of the utility's weighted average
17        cost of capital calculated under subsection (d) of
18        this Section:
19                (i) If the independent evaluator determines
20            that the utility achieved a cumulative persisting
21            annual savings that is less than the applicable
22            annual incremental goal, then the return on equity
23            component shall be reduced by a maximum of 200
24            basis points in the event that the utility
25            achieved no more than 66% of such goal. If the
26            utility achieved more than 66% of the applicable

 

 

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1            annual incremental goal but less than 100% of such
2            goal, then the return on equity component shall be
3            reduced by 6 basis points for each percent by
4            which the utility failed to achieve the goal.
5                (ii) If the independent evaluator determines
6            that the utility achieved a cumulative persisting
7            annual savings that is more than the applicable
8            annual incremental goal, then the return on equity
9            component shall be increased by a maximum of 200
10            basis points in the event that the utility
11            achieved at least 134% of such goal. If the
12            utility achieved more than 100% of the applicable
13            annual incremental goal but less than 134% of such
14            goal, then the return on equity component shall be
15            increased by 6 basis points for each percent by
16            which the utility achieved above the goal. If the
17            applicable annual incremental goal was reduced
18            under paragraph (3) of subsection (f) of this
19            Section, then the following adjustments shall be
20            made to the calculations described in this item
21            (ii):
22                    (aa) the calculation for determining
23                achievement that is at least 134% of the
24                applicable annual incremental goal shall use
25                the unreduced applicable annual incremental
26                goal to set the value; and

 

 

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1                    (bb) the calculation for determining
2                achievement that is less than 134% but more
3                than 100% of the applicable annual incremental
4                goal shall use the reduced applicable annual
5                incremental goal to set the value for 100%
6                achievement of the goal and shall use the
7                unreduced goal to set the value for 134%
8                achievement. The 6 basis point value shall
9                also be modified, as necessary, so that the
10                200 basis points are evenly apportioned among
11                each percentage point value between 100% and
12                134% achievement.
13            (C) Notwithstanding the provisions of
14        subparagraphs (A) and (B) of this paragraph (7), if
15        the applicable annual incremental goal for an electric
16        utility is ever less than 0.6% of deemed average
17        weather normalized sales of electric power and energy
18        during calendar years 2014, 2015, and 2016, an
19        adjustment to the return on equity component of the
20        utility's weighted average cost of capital calculated
21        under subsection (d) of this Section shall be made as
22        follows:
23                (i) If the independent evaluator determines
24            that the utility achieved a cumulative persisting
25            annual savings that is less than would have been
26            achieved had the applicable annual incremental

 

 

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1            goal been achieved, then the return on equity
2            component shall be reduced by a maximum of 200
3            basis points if the utility achieved no more than
4            75% of its applicable annual total savings
5            requirement as defined in paragraph (7.5) of this
6            subsection. If the utility achieved more than 75%
7            of the applicable annual total savings requirement
8            but less than 100% of such goal, then the return on
9            equity component shall be reduced by 8 basis
10            points for each percent by which the utility
11            failed to achieve the goal.
12                (ii) If the independent evaluator determines
13            that the utility achieved a cumulative persisting
14            annual savings that is more than would have been
15            achieved had the applicable annual incremental
16            goal been achieved, then the return on equity
17            component shall be increased by a maximum of 200
18            basis points if the utility achieved at least 125%
19            of its applicable annual total savings
20            requirement. If the utility achieved more than
21            100% of the applicable annual total savings
22            requirement but less than 125% of such goal, then
23            the return on equity component shall be increased
24            by 8 basis points for each percent by which the
25            utility achieved above the applicable annual total
26            savings requirement. If the applicable annual

 

 

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1            incremental goal was reduced under paragraph (1)
2            or (2) of subsection (f) of this Section, then the
3            following adjustments shall be made to the
4            calculations described in this item (ii):
5                    (aa) the calculation for determining
6                achievement that is at least 125% of the
7                applicable annual total savings requirement
8                shall use the unreduced applicable annual
9                incremental goal to set the value; and
10                    (bb) the calculation for determining
11                achievement that is less than 125% but more
12                than 100% of the applicable annual total
13                savings requirement shall use the reduced
14                applicable annual incremental goal to set the
15                value for 100% achievement of the goal and
16                shall use the unreduced goal to set the value
17                for 125% achievement. The 8 basis point value
18                shall also be modified, as necessary, so that
19                the 200 basis points are evenly apportioned
20                among each percentage point value between 100%
21                and 125% achievement.
22        (7.5) For purposes of this Section, the term
23    "applicable annual incremental goal" means the difference
24    between the cumulative persisting annual savings goal for
25    the calendar year that is the subject of the independent
26    evaluator's determination and the cumulative persisting

 

 

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1    annual savings goal for the immediately preceding calendar
2    year, as such goals are defined in subsections (b-5) and
3    (b-15) of this Section and as these goals may have been
4    modified as provided for under subsection (b-20) and
5    paragraphs (1) through (3) of subsection (f) of this
6    Section. Under subsections (b), (b-5), (b-10), and (b-15)
7    of this Section, a utility must first replace energy
8    savings from measures that have expired before any
9    progress towards achievement of its applicable annual
10    incremental goal may be counted. Savings may expire
11    because measures installed in previous years have reached
12    the end of their lives, because measures installed in
13    previous years are producing lower savings in the current
14    year than in the previous year, or for other reasons
15    identified by independent evaluators. Notwithstanding
16    anything else set forth in this Section, the difference
17    between the actual annual incremental savings achieved in
18    any given year, including the replacement of energy
19    savings that have expired, and the applicable annual
20    incremental goal shall not affect adjustments to the
21    return on equity for subsequent calendar years under this
22    subsection (g).
23        In this Section, "applicable annual total savings
24    requirement" means the total amount of new annual savings
25    that the utility must achieve in any given year to achieve
26    the applicable annual incremental goal. This is equal to

 

 

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1    the applicable annual incremental goal plus the total new
2    annual savings that are required to replace savings that
3    expired in or at the end of the previous year.
4        (8) For electric utilities that serve less than
5    3,000,000 retail customers but more than 500,000 retail
6    customers in the State:
7            (A) Through December 31, 2025, the applicable
8        annual incremental goal shall be compared to the
9        annual incremental savings as determined by the
10        independent evaluator.
11                (i) The return on equity component shall be
12            reduced by 8 basis points for each percent by
13            which the utility did not achieve 84.4% of the
14            applicable annual incremental goal.
15                (ii) The return on equity component shall be
16            increased by 8 basis points for each percent by
17            which the utility exceeded 100% of the applicable
18            annual incremental goal.
19                (iii) The return on equity component shall not
20            be increased or decreased if the annual
21            incremental savings as determined by the
22            independent evaluator is greater than 84.4% of the
23            applicable annual incremental goal and less than
24            100% of the applicable annual incremental goal.
25                (iv) The return on equity component shall not
26            be increased or decreased by an amount greater

 

 

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1            than 200 basis points pursuant to this
2            subparagraph (A).
3            (B) For the period of January 1, 2026 through
4        December 31, 2029 and in all subsequent 4-year
5        periods, the applicable annual incremental goal shall
6        be compared to the annual incremental savings as
7        determined by the independent evaluator.
8                (i) The return on equity component shall be
9            reduced by 6 basis points for each percent by
10            which the utility did not achieve 100% of the
11            applicable annual incremental goal.
12                (ii) The return on equity component shall be
13            increased by 6 basis points for each percent by
14            which the utility exceeded 100% of the applicable
15            annual incremental goal.
16                (iii) The return on equity component shall not
17            be increased or decreased by an amount greater
18            than 200 basis points pursuant to this
19            subparagraph (B).
20            (C) Notwithstanding provisions in subparagraphs
21        (A) and (B) of paragraph (7) of this subsection, if the
22        applicable annual incremental goal for an electric
23        utility is ever less than 0.6% of deemed average
24        weather normalized sales of electric power and energy
25        during calendar years 2014, 2015 and 2016, an
26        adjustment to the return on equity component of the

 

 

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1        utility's weighted average cost of capital calculated
2        under subsection (d) of this Section shall be made as
3        follows:
4                (i) The return on equity component shall be
5            reduced by 8 basis points for each percent by
6            which the utility did not achieve 100% of the
7            applicable annual total savings requirement.
8                (ii) The return on equity component shall be
9            increased by 8 basis points for each percent by
10            which the utility exceeded 100% of the applicable
11            annual total savings requirement.
12                (iii) The return on equity component shall not
13            be increased or decreased by an amount greater
14            than 200 basis points pursuant to this
15            subparagraph (C).
16            (D) If the applicable annual incremental goal was
17        reduced under paragraph (1), (2), (3), or (4) of
18        subsection (f) of this Section, then the following
19        adjustments shall be made to the calculations
20        described in subparagraphs (A), (B), and (C) of this
21        paragraph (8):
22                (i) The calculation for determining
23            achievement that is at least 125% or 134%, as
24            applicable, of the applicable annual incremental
25            goal or the applicable annual total savings
26            requirement, as applicable, shall use the

 

 

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1            unreduced applicable annual incremental goal to
2            set the value.
3                (ii) For the period through December 31, 2025,
4            the calculation for determining achievement that
5            is less than 125% but more than 100% of the
6            applicable annual incremental goal or the
7            applicable annual total savings requirement, as
8            applicable, shall use the reduced applicable
9            annual incremental goal to set the value for 100%
10            achievement of the goal and shall use the
11            unreduced goal to set the value for 125%
12            achievement. The 8 basis point value shall also be
13            modified, as necessary, so that the 200 basis
14            points are evenly apportioned among each
15            percentage point value between 100% and 125%
16            achievement.
17                (iii) For the period of January 1, 2026
18            through December 31, 2029 and all subsequent
19            4-year periods, the calculation for determining
20            achievement that is less than 125% or 134%, as
21            applicable, but more than 100% of the applicable
22            annual incremental goal or the applicable annual
23            total savings requirement, as applicable, shall
24            use the reduced applicable annual incremental goal
25            to set the value for 100% achievement of the goal
26            and shall use the unreduced goal to set the value

 

 

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1            for 125% achievement. The 6 basis-point value or 8
2            basis-point value, as applicable, shall also be
3            modified, as necessary, so that the 200 basis
4            points are evenly apportioned among each
5            percentage point value between 100% and 125% or
6            between 100% and 134% achievement, as applicable.
7        (9) The utility shall submit the energy savings data
8    to the independent evaluator no later than 30 days after
9    the close of the plan year. The independent evaluator
10    shall determine the cumulative persisting annual savings
11    for a given plan year, as well as an estimate of job
12    impacts and other macroeconomic impacts of the efficiency
13    programs for that year, no later than 120 days after the
14    close of the plan year. The utility shall submit an
15    informational filing to the Commission no later than 160
16    days after the close of the plan year that attaches the
17    independent evaluator's final report identifying the
18    cumulative persisting annual savings for the year and
19    calculates, under paragraph (7) or (8) of this subsection
20    (g), as applicable, any resulting change to the utility's
21    return on equity component of the weighted average cost of
22    capital applicable to the next plan year beginning with
23    the January monthly billing period and extending through
24    the December monthly billing period. However, if the
25    utility recovers the costs incurred under this Section
26    under paragraphs (2) and (3) of subsection (d) of this

 

 

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1    Section, then the utility shall not be required to submit
2    such informational filing, and shall instead submit the
3    information that would otherwise be included in the
4    informational filing as part of its filing under paragraph
5    (3) of such subsection (d) that is due on or before June 1
6    of each year.
7        For those utilities that must submit the informational
8    filing, the Commission may, on its own motion or by
9    petition, initiate an investigation of such filing,
10    provided, however, that the utility's proposed return on
11    equity calculation shall be deemed the final, approved
12    calculation on December 15 of the year in which it is filed
13    unless the Commission enters an order on or before
14    December 15, after notice and hearing, that modifies such
15    calculation consistent with this Section.
16        The adjustments to the return on equity component
17    described in paragraphs (7) and (8) of this subsection (g)
18    shall be applied as described in such paragraphs through a
19    separate tariff mechanism, which shall be filed by the
20    utility under subsections (f) and (g) of this Section.
21        (9.5) The utility must demonstrate how it will ensure
22    that program implementation contractors and energy
23    efficiency installation vendors will promote workforce
24    equity and quality jobs.
25        (9.6) Utilities shall collect data necessary to ensure
26    compliance with paragraph (9.5) no less than quarterly and

 

 

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1    shall communicate progress toward compliance with
2    paragraph (9.5) to program implementation contractors and
3    energy efficiency installation vendors no less than
4    quarterly. Utilities shall work with relevant vendors,
5    providing education, training, and other resources needed
6    to ensure compliance and, where necessary, adjusting or
7    terminating work with vendors that cannot assist with
8    compliance.
9        (10) Utilities required to implement efficiency
10    programs under subsections (b-5) and (b-10) shall report
11    annually to the Illinois Commerce Commission and the
12    General Assembly on how hiring, contracting, job training,
13    and other practices related to its energy efficiency
14    programs enhance the diversity of vendors working on such
15    programs. These reports must include data on vendor and
16    employee diversity, including data on the implementation
17    of paragraphs (9.5) and (9.6). If the utility is not
18    meeting the requirements of paragraphs (9.5) and (9.6),
19    the utility shall submit a plan to adjust their activities
20    so that they meet the requirements of paragraphs (9.5) and
21    (9.6) within the following year.
22    (h) No more than 4% of energy efficiency and
23demand-response program revenue may be allocated for research,
24development, or pilot deployment of new equipment or measures.
25Electric utilities shall work with interested stakeholders to
26formulate a plan for how these funds should be spent,

 

 

HB5539 Engrossed- 79 -LRB103 38494 CES 68630 b

1incorporate statewide approaches for these allocations, and
2file a 4-year plan that demonstrates that collaboration. If a
3utility files a request for modified annual energy savings
4goals with the Commission, then a utility shall forgo spending
5portfolio dollars on research and development proposals.
6    (i) When practicable, electric utilities shall incorporate
7advanced metering infrastructure data into the planning,
8implementation, and evaluation of energy efficiency measures
9and programs, subject to the data privacy and confidentiality
10protections of applicable law.
11    (j) The independent evaluator shall follow the guidelines
12and use the savings set forth in Commission-approved energy
13efficiency policy manuals and technical reference manuals, as
14each may be updated from time to time. Until such time as
15measure life values for energy efficiency measures implemented
16for low-income households under subsection (c) of this Section
17are incorporated into such Commission-approved manuals, the
18low-income measures shall have the same measure life values
19that are established for same measures implemented in
20households that are not low-income households.
21    (k) Notwithstanding any provision of law to the contrary,
22an electric utility subject to the requirements of this
23Section may file a tariff cancelling an automatic adjustment
24clause tariff in effect under this Section or Section 8-103,
25which shall take effect no later than one business day after
26the date such tariff is filed. Thereafter, the utility shall

 

 

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1be authorized to defer and recover its expenditures incurred
2under this Section through a new tariff authorized under
3subsection (d) of this Section or in the utility's next rate
4case under Article IX or Section 16-108.5 of this Act, with
5interest at an annual rate equal to the utility's weighted
6average cost of capital as approved by the Commission in such
7case. If the utility elects to file a new tariff under
8subsection (d) of this Section, the utility may file the
9tariff within 10 days after June 1, 2017 (the effective date of
10Public Act 99-906), and the cost inputs to such tariff shall be
11based on the projected costs to be incurred by the utility
12during the calendar year in which the new tariff is filed and
13that were not recovered under the tariff that was cancelled as
14provided for in this subsection. Such costs shall include
15those incurred or to be incurred by the utility under its
16multi-year plan approved under subsections (f) and (g) of this
17Section, including, but not limited to, projected capital
18investment costs and projected regulatory asset balances with
19correspondingly updated depreciation and amortization reserves
20and expense. The Commission shall, after notice and hearing,
21approve, or approve with modification, such tariff and cost
22inputs no later than 75 days after the utility filed the
23tariff, provided that such approval, or approval with
24modification, shall be consistent with the provisions of this
25Section to the extent they do not conflict with this
26subsection (k). The tariff approved by the Commission shall

 

 

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1take effect no later than 5 days after the Commission enters
2its order approving the tariff.
3    No later than 60 days after the effective date of the
4tariff cancelling the utility's automatic adjustment clause
5tariff, the utility shall file a reconciliation that
6reconciles the moneys collected under its automatic adjustment
7clause tariff with the costs incurred during the period
8beginning June 1, 2016 and ending on the date that the electric
9utility's automatic adjustment clause tariff was cancelled. In
10the event the reconciliation reflects an under-collection, the
11utility shall recover the costs as specified in this
12subsection (k). If the reconciliation reflects an
13over-collection, the utility shall apply the amount of such
14over-collection as a one-time credit to retail customers'
15bills.
16    (l) For the calendar years covered by a multi-year plan
17commencing after December 31, 2017, subsections (a) through
18(j) of this Section do not apply to eligible large private
19energy customers that have chosen to opt out of multi-year
20plans consistent with this subsection (1).
21        (1) For purposes of this subsection (l), "eligible
22    large private energy customer" means any retail customers,
23    except for federal, State, municipal, and other public
24    customers, of an electric utility that serves more than
25    3,000,000 retail customers, except for federal, State,
26    municipal and other public customers, in the State and

 

 

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1    whose total highest 30 minute demand was more than 10,000
2    kilowatts, or any retail customers of an electric utility
3    that serves less than 3,000,000 retail customers but more
4    than 500,000 retail customers in the State and whose total
5    highest 15 minute demand was more than 10,000 kilowatts.
6    For purposes of this subsection (l), "retail customer" has
7    the meaning set forth in Section 16-102 of this Act.
8    However, for a business entity with multiple sites located
9    in the State, where at least one of those sites qualifies
10    as an eligible large private energy customer, then any of
11    that business entity's sites, properly identified on a
12    form for notice, shall be considered eligible large
13    private energy customers for the purposes of this
14    subsection (l). A determination of whether this subsection
15    is applicable to a customer shall be made for each
16    multi-year plan beginning after December 31, 2017. The
17    criteria for determining whether this subsection (l) is
18    applicable to a retail customer shall be based on the 12
19    consecutive billing periods prior to the start of the
20    first year of each such multi-year plan.
21        (2) Within 45 days after September 15, 2021 (the
22    effective date of Public Act 102-662), the Commission
23    shall prescribe the form for notice required for opting
24    out of energy efficiency programs. The notice must be
25    submitted to the retail electric utility 12 months before
26    the next energy efficiency planning cycle. However, within

 

 

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1    120 days after the Commission's initial issuance of the
2    form for notice, eligible large private energy customers
3    may submit a form for notice to an electric utility. The
4    form for notice for opting out of energy efficiency
5    programs shall include all of the following:
6            (A) a statement indicating that the customer has
7        elected to opt out;
8            (B) the account numbers for the customer accounts
9        to which the opt out shall apply;
10            (C) the mailing address associated with the
11        customer accounts identified under subparagraph (B);
12            (D) an American Society of Heating, Refrigerating,
13        and Air-Conditioning Engineers (ASHRAE) level 2 or
14        higher audit report conducted by an independent
15        third-party expert identifying cost-effective energy
16        efficiency project opportunities that could be
17        invested in over the next 10 years. A retail customer
18        with specialized processes may utilize a self-audit
19        process in lieu of the ASHRAE audit;
20            (E) a description of the customer's plans to
21        reallocate the funds toward internal energy efficiency
22        efforts identified in the subparagraph (D) report,
23        including, but not limited to: (i) strategic energy
24        management or other programs, including descriptions
25        of targeted buildings, equipment and operations; (ii)
26        eligible energy efficiency measures; and (iii)

 

 

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1        expected energy savings, itemized by technology. If
2        the subparagraph (D) audit report identifies that the
3        customer currently utilizes the best available energy
4        efficient technology, equipment, programs, and
5        operations, the customer may provide a statement that
6        more efficient technology, equipment, programs, and
7        operations are not reasonably available as a means of
8        satisfying this subparagraph (E); and
9            (F) the effective date of the opt out, which will
10        be the next January 1 following notice of the opt out.
11        (3) Upon receipt of a properly and timely noticed
12    request for opt out submitted by an eligible large private
13    energy customer, the retail electric utility shall grant
14    the request, file the request with the Commission and,
15    beginning January 1 of the following year, the opted out
16    customer shall no longer be assessed the costs of the plan
17    and shall be prohibited from participating in that 4-year
18    plan cycle to give the retail utility the certainty to
19    design program plan proposals.
20        (4) Upon a customer's election to opt out under
21    paragraphs (1) and (2) of this subsection (l) and
22    commencing on the effective date of said opt out, the
23    account properly identified in the customer's notice under
24    paragraph (2) shall not be subject to any cost recovery
25    and shall not be eligible to participate in, or directly
26    benefit from, compliance with energy efficiency cumulative

 

 

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1    persisting savings requirements under subsections (a)
2    through (j).
3        (5) A utility's cumulative persisting annual savings
4    targets will exclude any opted out load.
5        (6) The request to opt out is only valid for the
6    requested plan cycle. An eligible large private energy
7    customer must also request to opt out for future energy
8    plan cycles, otherwise the customer will be included in
9    the future energy plan cycle.
10    (m) Notwithstanding the requirements of this Section, as
11part of a proceeding to approve a multi-year plan under
12subsections (f) and (g) of this Section if the multi-year plan
13has been designed to maximize savings, but does not meet the
14cost cap limitations of this Section, the Commission shall
15reduce the amount of energy efficiency measures implemented
16for any single year, and whose costs are recovered under
17subsection (d) of this Section, by an amount necessary to
18limit the estimated average net increase due to the cost of the
19measures to no more than
20        (1) 3.5% for each of the 4 years beginning January 1,
21    2018,
22        (2) (blank),
23        (3) 4% for each of the 4 years beginning January 1,
24    2022,
25        (4) 4.25% for the 4 years beginning January 1, 2026,
26    and

 

 

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1        (5) 4.25% plus an increase sufficient to account for
2    the rate of inflation between January 1, 2026 and January
3    1 of the first year of each subsequent 4-year plan cycle,
4of the average amount paid per kilowatthour by residential
5eligible retail customers during calendar year 2015. An
6electric utility may plan to spend up to 10% more in any year
7during an applicable multi-year plan period to
8cost-effectively achieve additional savings so long as the
9average over the applicable multi-year plan period does not
10exceed the percentages defined in items (1) through (5). To
11determine the total amount that may be spent by an electric
12utility in any single year, the applicable percentage of the
13average amount paid per kilowatthour shall be multiplied by
14the total amount of energy delivered by such electric utility
15in the calendar year 2015, adjusted to reflect the proportion
16of the utility's load attributable to customers that have
17opted out of subsections (a) through (j) of this Section under
18subsection (l) of this Section. For purposes of this
19subsection (m), the amount paid per kilowatthour includes,
20without limitation, estimated amounts paid for supply,
21transmission, distribution, surcharges, and add-on taxes. For
22purposes of this Section, "eligible retail customers" shall
23have the meaning set forth in Section 16-111.5 of this Act.
24Once the Commission has approved a plan under subsections (f)
25and (g) of this Section, no subsequent rate impact
26determinations shall be made.

 

 

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1    (n) A utility shall take advantage of the efficiencies
2available through existing Illinois Home Weatherization
3Assistance Program infrastructure and services, such as
4enrollment, marketing, quality assurance and implementation,
5which can reduce the need for similar services at a lower cost
6than utility-only programs, subject to capacity constraints at
7community action agencies, for both single-family and
8multifamily weatherization services, to the extent Illinois
9Home Weatherization Assistance Program community action
10agencies provide multifamily services. A utility's plan shall
11demonstrate that in formulating annual weatherization budgets,
12it has sought input and coordination with community action
13agencies regarding agencies' capacity to expand and maximize
14Illinois Home Weatherization Assistance Program delivery using
15the ratepayer dollars collected under this Section.
16(Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-30-23.)
 
17    (220 ILCS 5/8-104)
18    Sec. 8-104. Natural gas energy efficiency programs.
19    (a) It is the policy of the State that natural gas
20utilities and the Department of Commerce and Economic
21Opportunity are required to use cost-effective energy
22efficiency to reduce direct and indirect costs to consumers.
23It serves the public interest to allow natural gas utilities
24to recover costs for reasonably and prudently incurred
25expenses for cost-effective energy efficiency measures.

 

 

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1    (b) For purposes of this Section, "energy efficiency"
2means measures that reduce the amount of energy required to
3achieve a given end use. "Energy efficiency" also includes
4measures that reduce the total Btus of electricity and natural
5gas needed to meet the end use or uses. "Cost-effective" means
6that the measures satisfy the total resource cost test which,
7for purposes of this Section, means a standard that is met if,
8for an investment in energy efficiency, the benefit-cost ratio
9is greater than one. The benefit-cost ratio is the ratio of the
10net present value of the total benefits of the measures to the
11net present value of the total costs as calculated over the
12lifetime of the measures. The total resource cost test
13compares the sum of avoided natural gas utility costs,
14representing the benefits that accrue to the system and the
15participant in the delivery of those efficiency measures, as
16well as other quantifiable societal benefits, including
17avoided electric utility costs, to the sum of all incremental
18costs of end use measures (including both utility and
19participant contributions), plus costs to administer, deliver,
20and evaluate each demand-side measure, to quantify the net
21savings obtained by substituting demand-side measures for
22supply resources. In calculating avoided costs, reasonable
23estimates shall be included for financial costs likely to be
24imposed by future regulation of emissions of greenhouse gases.
25The low-income programs described in item (4) of subsection
26(f) of this Section shall not be required to meet the total

 

 

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1resource cost test.
2    (c) Natural gas utilities shall implement cost-effective
3energy efficiency measures to meet at least the following
4natural gas savings requirements, which shall be based upon
5the total amount of gas delivered to retail customers, other
6than the customers described in subsection (m) of this
7Section, during calendar year 2009 multiplied by the
8applicable percentage. Natural gas utilities may comply with
9this Section by meeting the annual incremental savings goal in
10the applicable year or by showing that total cumulative annual
11savings within a multi-year planning period associated with
12measures implemented after May 31, 2011 were equal to the sum
13of each annual incremental savings requirement from the first
14day of the multi-year planning period through the last day of
15the multi-year planning period:
16        (1) 0.2% by May 31, 2012;
17        (2) an additional 0.4% by May 31, 2013, increasing
18    total savings to .6%;
19        (3) an additional 0.6% by May 31, 2014, increasing
20    total savings to 1.2%;
21        (4) an additional 0.8% by May 31, 2015, increasing
22    total savings to 2.0%;
23        (5) an additional 1% by May 31, 2016, increasing total
24    savings to 3.0%;
25        (6) an additional 1.2% by May 31, 2017, increasing
26    total savings to 4.2%;

 

 

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1        (7) an additional 1.4% in the year commencing January
2    1, 2018;
3        (8) an additional 1.5% in the year commencing January
4    1, 2019; and
5        (9) an additional 1.5% in each 12-month period
6    thereafter.
7    (d) Notwithstanding the requirements of subsection (c) of
8this Section, a natural gas utility shall limit the amount of
9energy efficiency implemented in any multi-year reporting
10period established by subsection (f) of Section 8-104 of this
11Act, by an amount necessary to limit the estimated average
12increase in the amounts paid by retail customers in connection
13with natural gas service to no more than 2% in the applicable
14multi-year reporting period. The energy savings requirements
15in subsection (c) of this Section may be reduced by the
16Commission for the subject plan, if the utility demonstrates
17by substantial evidence that it is highly unlikely that the
18requirements could be achieved without exceeding the
19applicable spending limits in any multi-year reporting period.
20No later than September 1, 2013, the Commission shall review
21the limitation on the amount of energy efficiency measures
22implemented pursuant to this Section and report to the General
23Assembly, in the report required by subsection (k) of this
24Section, its findings as to whether that limitation unduly
25constrains the procurement of energy efficiency measures.
26    (e) The provisions of this subsection (e) apply to those

 

 

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1multi-year plans that commence prior to January 1, 2018. The
2utility shall utilize 75% of the available funding associated
3with energy efficiency programs approved by the Commission,
4and may outsource various aspects of program development and
5implementation. The remaining 25% of available funding shall
6be used by the Department of Commerce and Economic Opportunity
7to implement energy efficiency measures that achieve no less
8than 20% of the requirements of subsection (c) of this
9Section. Such measures shall be designed in conjunction with
10the utility and approved by the Commission. The Department may
11outsource development and implementation of energy efficiency
12measures. A minimum of 10% of the entire portfolio of
13cost-effective energy efficiency measures shall be procured
14from local government, municipal corporations, school
15districts, public institutions of higher education, and
16community college districts. Five percent of the entire
17portfolio of cost-effective energy efficiency measures may be
18granted to local government and municipal corporations for
19market transformation initiatives. The Department shall
20coordinate the implementation of these measures and shall
21integrate delivery of natural gas efficiency programs with
22electric efficiency programs delivered pursuant to Section
238-103 of this Act, unless the Department can show that
24integration is not feasible.
25    The apportionment of the dollars to cover the costs to
26implement the Department's share of the portfolio of energy

 

 

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1efficiency measures shall be made to the Department once the
2Department has executed rebate agreements, grants, or
3contracts for energy efficiency measures and provided
4supporting documentation for those rebate agreements, grants,
5and contracts to the utility. The Department is authorized to
6adopt any rules necessary and prescribe procedures in order to
7ensure compliance by applicants in carrying out the purposes
8of rebate agreements for energy efficiency measures
9implemented by the Department made under this Section.
10    The details of the measures implemented by the Department
11shall be submitted by the Department to the Commission in
12connection with the utility's filing regarding the energy
13efficiency measures that the utility implements.
14    The portfolio of measures, administered by both the
15utilities and the Department, shall, in combination, be
16designed to achieve the annual energy savings requirements set
17forth in subsection (c) of this Section, as modified by
18subsection (d) of this Section.
19    The utility and the Department shall agree upon a
20reasonable portfolio of measures and determine the measurable
21corresponding percentage of the savings goals associated with
22measures implemented by the Department.
23    No utility shall be assessed a penalty under subsection
24(f) of this Section for failure to make a timely filing if that
25failure is the result of a lack of agreement with the
26Department with respect to the allocation of responsibilities

 

 

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1or related costs or target assignments. In that case, the
2Department and the utility shall file their respective plans
3with the Commission and the Commission shall determine an
4appropriate division of measures and programs that meets the
5requirements of this Section.
6    (e-5) The provisions of this subsection (e-5) shall be
7applicable to those multi-year plans that commence after
8December 31, 2017. Natural gas utilities shall be responsible
9for overseeing the design, development, and filing of their
10efficiency plans with the Commission and may outsource
11development and implementation of energy efficiency measures.
12A minimum of 10% of the entire portfolio of cost-effective
13energy efficiency measures shall be procured from local
14government, municipal corporations, school districts, public
15institutions of higher education, and community college
16districts. Five percent of the entire portfolio of
17cost-effective energy efficiency measures may be granted to
18local government and municipal corporations for market
19transformation initiatives.
20    The utilities shall also present a portfolio of energy
21efficiency measures proportionate to the share of total annual
22utility revenues in Illinois from households at or below 150%
23of the poverty level. Such programs shall be targeted to
24households with incomes at or below 80% of area median income.
25    (e-10) A utility providing approved energy efficiency
26measures in this State shall be permitted to recover costs of

 

 

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1those measures through an automatic adjustment clause tariff
2filed with and approved by the Commission. The tariff shall be
3established outside the context of a general rate case and
4shall be applicable to the utility's customers other than the
5customers described in subsection (m) of this Section. Each
6year the Commission shall initiate a review to reconcile any
7amounts collected with the actual costs and to determine the
8required adjustment to the annual tariff factor to match
9annual expenditures.
10    (e-15) For those multi-year plans that commence prior to
11January 1, 2018, each utility shall include, in its recovery
12of costs, the costs estimated for both the utility's and the
13Department's implementation of energy efficiency measures.
14Costs collected by the utility for measures implemented by the
15Department shall be submitted to the Department pursuant to
16Section 605-323 of the Civil Administrative Code of Illinois,
17shall be deposited into the Energy Efficiency Portfolio
18Standards Fund, and shall be used by the Department solely for
19the purpose of implementing these measures. A utility shall
20not be required to advance any moneys to the Department but
21only to forward such funds as it has collected. The Department
22shall report to the Commission on an annual basis regarding
23the costs actually incurred by the Department in the
24implementation of the measures. Any changes to the costs of
25energy efficiency measures as a result of plan modifications
26shall be appropriately reflected in amounts recovered by the

 

 

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1utility and turned over to the Department.
2    (f) No later than October 1, 2010, each gas utility shall
3file an energy efficiency plan with the Commission to meet the
4energy efficiency standards through May 31, 2014. No later
5than October 1, 2013, each gas utility shall file an energy
6efficiency plan with the Commission to meet the energy
7efficiency standards through May 31, 2017. Beginning in 2017
8and every 4 years thereafter, each utility shall file an
9energy efficiency plan with the Commission to meet the energy
10efficiency standards for the next applicable 4-year period
11beginning January 1 of the year following the filing. For
12those multi-year plans commencing on January 1, 2018, each
13utility shall file its proposed energy efficiency plan no
14later than 30 days after the effective date of this amendatory
15Act of the 99th General Assembly or May 1, 2017, whichever is
16later. Beginning in 2021 and every 4 years thereafter, each
17utility shall file its energy efficiency plan no later than
18March 1. If a utility does not file such a plan on or before
19the applicable filing deadline for the plan, then it shall
20face a penalty of $100,000 per day until the plan is filed.
21    Each utility's plan shall set forth the utility's
22proposals to meet the utility's portion of the energy
23efficiency standards identified in subsection (c) of this
24Section, as modified by subsection (d) of this Section, taking
25into account the unique circumstances of the utility's service
26territory. For those plans commencing after December 31, 2021,

 

 

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1the Commission shall seek public comment on the utility's plan
2and shall issue an order approving or disapproving each plan
3within 6 months after its submission. For those plans
4commencing on January 1, 2018, the Commission shall seek
5public comment on the utility's plan and shall issue an order
6approving or disapproving each plan no later than August 31,
72017, or 105 days after the effective date of this amendatory
8Act of the 99th General Assembly, whichever is later. If the
9Commission disapproves a plan, the Commission shall, within 30
10days, describe in detail the reasons for the disapproval and
11describe a path by which the utility may file a revised draft
12of the plan to address the Commission's concerns
13satisfactorily. If the utility does not refile with the
14Commission within 60 days after the disapproval, the utility
15shall be subject to penalties at a rate of $100,000 per day
16until the plan is filed. This process shall continue, and
17penalties shall accrue, until the utility has successfully
18filed a portfolio of energy efficiency measures. Penalties
19shall be deposited into the Energy Efficiency Trust Fund and
20the cost of any such penalties may not be recovered from
21ratepayers. In submitting proposed energy efficiency plans and
22funding levels to meet the savings goals adopted by this Act
23the utility shall:
24        (1) Demonstrate that its proposed energy efficiency
25    measures will achieve the requirements that are identified
26    in subsection (c) of this Section, as modified by

 

 

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1    subsection (d) of this Section.
2        (2) Present specific proposals to implement new
3    building and appliance standards that have been placed
4    into effect.
5        (3) Present estimates of the total amount paid for gas
6    service expressed on a per therm basis associated with the
7    proposed portfolio of measures designed to meet the
8    requirements that are identified in subsection (c) of this
9    Section, as modified by subsection (d) of this Section.
10        (4) For those multi-year plans that commence prior to
11    January 1, 2018, coordinate with the Department to present
12    a portfolio of energy efficiency measures proportionate to
13    the share of total annual utility revenues in Illinois
14    from households at or below 150% of the poverty level.
15    Such programs shall be targeted to households with incomes
16    at or below 80% of area median income.
17        (5) Demonstrate that its overall portfolio of energy
18    efficiency measures, not including low-income programs
19    described in item (4) of this subsection (f) and
20    subsection (e-5) of this Section, are cost-effective using
21    the total resource cost test and represent a diverse cross
22    section of opportunities for customers of all rate classes
23    to participate in the programs.
24        (6) Demonstrate that a gas utility affiliated with an
25    electric utility that is required to comply with Section
26    8-103 or 8-103B of this Act has integrated gas and

 

 

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1    electric efficiency measures into a single program that
2    reduces program or participant costs and appropriately
3    allocates costs to gas and electric ratepayers. For those
4    multi-year plans that commence prior to January 1, 2018,
5    the Department shall integrate all gas and electric
6    programs it delivers in any such utilities' service
7    territories, unless the Department can show that
8    integration is not feasible or appropriate.
9        (7) Include a proposed cost recovery tariff mechanism
10    to fund the proposed energy efficiency measures and to
11    ensure the recovery of the prudently and reasonably
12    incurred costs of Commission-approved programs.
13        (8) Provide for quarterly status reports tracking
14    implementation of and expenditures for the utility's
15    portfolio of measures and, if applicable, the Department's
16    portfolio of measures, an annual independent review, and a
17    full independent evaluation of the multi-year results of
18    the performance and the cost-effectiveness of the
19    utility's and, if applicable, Department's portfolios of
20    measures and broader net program impacts and, to the
21    extent practical, for adjustment of the measures on a
22    going forward basis as a result of the evaluations. The
23    resources dedicated to evaluation shall not exceed 3% of
24    portfolio resources in any given multi-year period.
25    (g) No more than 3% of expenditures on energy efficiency
26measures may be allocated for demonstration of breakthrough

 

 

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1equipment and devices.
2    (h) Illinois natural gas utilities that are affiliated by
3virtue of a common parent company may, at the utilities'
4request, be considered a single natural gas utility for
5purposes of complying with this Section.
6    (i) If, after 3 years, a gas utility fails to meet the
7efficiency standard specified in subsection (c) of this
8Section as modified by subsection (d), then it shall make a
9contribution to the Low-Income Home Energy Assistance Program.
10The total liability for failure to meet the goal shall be
11assessed as follows:
12        (1) a large gas utility shall pay $600,000;
13        (2) a medium gas utility shall pay $400,000; and
14        (3) a small gas utility shall pay $200,000.
15    For purposes of this Section, (i) a "large gas utility" is
16a gas utility that on December 31, 2008, served more than
171,500,000 gas customers in Illinois; (ii) a "medium gas
18utility" is a gas utility that on December 31, 2008, served
19fewer than 1,500,000, but more than 500,000 gas customers in
20Illinois; and (iii) a "small gas utility" is a gas utility that
21on December 31, 2008, served fewer than 500,000 and more than
22100,000 gas customers in Illinois. The costs of this
23contribution may not be recovered from ratepayers.
24    If a gas utility fails to meet the efficiency standard
25specified in subsection (c) of this Section, as modified by
26subsection (d) of this Section, in any 2 consecutive

 

 

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1multi-year planning periods, then the responsibility for
2implementing the utility's energy efficiency measures shall be
3transferred to an independent program administrator selected
4by the Commission. Reasonable and prudent costs incurred by
5the independent program administrator to meet the efficiency
6standard specified in subsection (c) of this Section, as
7modified by subsection (d) of this Section, may be recovered
8from the customers of the affected gas utilities, other than
9customers described in subsection (m) of this Section. The
10utility shall provide the independent program administrator
11with all information and assistance necessary to perform the
12program administrator's duties including but not limited to
13customer, account, and energy usage data, and shall allow the
14program administrator to include inserts in customer bills.
15The utility may recover reasonable costs associated with any
16such assistance.
17    (j) No utility shall be deemed to have failed to meet the
18energy efficiency standards to the extent any such failure is
19due to a failure of the Department.
20    (k) Not later than January 1, 2012, the Commission shall
21develop and solicit public comment on a plan to foster
22statewide coordination and consistency between statutorily
23mandated natural gas and electric energy efficiency programs
24to reduce program or participant costs or to improve program
25performance. Not later than September 1, 2013, the Commission
26shall issue a report to the General Assembly containing its

 

 

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1findings and recommendations.
2    (l) This Section does not apply to a gas utility that on
3January 1, 2009, provided gas service to fewer than 100,000
4customers in Illinois.
5    (m) Subsections (a) through (k) of this Section do not
6apply to customers of a natural gas utility that have a North
7American Industry Classification System code number that is
822111 or any such code number beginning with the digits 31, 32,
9or 33 and (i) annual usage in the aggregate of 4 million therms
10or more within the service territory of the affected gas
11utility or with aggregate usage of 8 million therms or more in
12this State and complying with the provisions of item (l) of
13this subsection (m); or (ii) using natural gas as feedstock
14and meeting the usage requirements described in item (i) of
15this subsection (m), to the extent such annual feedstock usage
16is greater than 60% of the customer's total annual usage of
17natural gas.
18        (1) Customers described in this subsection (m) of this
19    Section shall apply, on a form approved on or before
20    October 1, 2009 by the Department, to the Department to be
21    designated as a self-directing customer ("SDC") or as an
22    exempt customer using natural gas as a feedstock from
23    which other products are made, including, but not limited
24    to, feedstock for a hydrogen plant, on or before the 1st
25    day of February, 2010. Thereafter, application may be made
26    not less than 6 months before the filing date of the gas

 

 

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1    utility energy efficiency plan described in subsection (f)
2    of this Section; however, a new customer that commences
3    taking service from a natural gas utility after February
4    1, 2010 may apply to become a SDC or exempt customer up to
5    30 days after beginning service. Customers described in
6    this subsection (m) that have not already been approved by
7    the Department may apply to be designated a self-directing
8    customer or exempt customer, on a form approved by the
9    Department, between September 1, 2013 and September 30,
10    2013. Customer applications that are approved by the
11    Department under this amendatory Act of the 98th General
12    Assembly shall be considered to be a self-directing
13    customer or exempt customer, as applicable, for the
14    current 3-year planning period effective December 1, 2013.
15    Such application shall contain the following:
16            (A) the customer's certification that, at the time
17        of its application, it qualifies to be a SDC or exempt
18        customer described in this subsection (m) of this
19        Section;
20            (B) in the case of a SDC, the customer's
21        certification that it has established or will
22        establish by the beginning of the utility's multi-year
23        planning period commencing subsequent to the
24        application, and will maintain for accounting
25        purposes, an energy efficiency reserve account and
26        that the customer will accrue funds in said account to

 

 

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1        be held for the purpose of funding, in whole or in
2        part, energy efficiency measures of the customer's
3        choosing, which may include, but are not limited to,
4        projects involving combined heat and power systems
5        that use the same energy source both for the
6        generation of electrical or mechanical power and the
7        production of steam or another form of useful thermal
8        energy or the use of combustible gas produced from
9        biomass, or both;
10            (C) in the case of a SDC, the customer's
11        certification that annual funding levels for the
12        energy efficiency reserve account will be equal to 2%
13        of the customer's cost of natural gas, composed of the
14        customer's commodity cost and the delivery service
15        charges paid to the gas utility, or $150,000,
16        whichever is less;
17            (D) in the case of a SDC, the customer's
18        certification that the required reserve account
19        balance will be capped at 3 years' worth of accruals
20        and that the customer may, at its option, make further
21        deposits to the account to the extent such deposit
22        would increase the reserve account balance above the
23        designated cap level;
24            (E) in the case of a SDC, the customer's
25        certification that by October 1 of each year,
26        beginning no sooner than October 1, 2012, the customer

 

 

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1        will report to the Department information, for the
2        12-month period ending May 31 of the same year, on all
3        deposits and reductions, if any, to the reserve
4        account during the reporting year, and to the extent
5        deposits to the reserve account in any year are in an
6        amount less than $150,000, the basis for such reduced
7        deposits; reserve account balances by month; a
8        description of energy efficiency measures undertaken
9        by the customer and paid for in whole or in part with
10        funds from the reserve account; an estimate of the
11        energy saved, or to be saved, by the measure; and that
12        the report shall include a verification by an officer
13        or plant manager of the customer or by a registered
14        professional engineer or certified energy efficiency
15        trade professional that the funds withdrawn from the
16        reserve account were used for the energy efficiency
17        measures;
18            (F) in the case of an exempt customer, the
19        customer's certification of the level of gas usage as
20        feedstock in the customer's operation in a typical
21        year and that it will provide information establishing
22        this level, upon request of the Department;
23            (G) in the case of either an exempt customer or a
24        SDC, the customer's certification that it has provided
25        the gas utility or utilities serving the customer with
26        a copy of the application as filed with the

 

 

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1        Department;
2            (H) in the case of either an exempt customer or a
3        SDC, certification of the natural gas utility or
4        utilities serving the customer in Illinois including
5        the natural gas utility accounts that are the subject
6        of the application; and
7            (I) in the case of either an exempt customer or a
8        SDC, a verification signed by a plant manager or an
9        authorized corporate officer attesting to the
10        truthfulness and accuracy of the information contained
11        in the application.
12        (2) The Department shall review the application to
13    determine that it contains the information described in
14    provisions (A) through (I) of item (1) of this subsection
15    (m), as applicable. The review shall be completed within
16    30 days after the date the application is filed with the
17    Department. Absent a determination by the Department
18    within the 30-day period, the applicant shall be
19    considered to be a SDC or exempt customer, as applicable,
20    for all subsequent multi-year planning periods, as of the
21    date of filing the application described in this
22    subsection (m). If the Department determines that the
23    application does not contain the applicable information
24    described in provisions (A) through (I) of item (1) of
25    this subsection (m), it shall notify the customer, in
26    writing, of its determination that the application does

 

 

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1    not contain the required information and identify the
2    information that is missing, and the customer shall
3    provide the missing information within 15 working days
4    after the date of receipt of the Department's
5    notification.
6        (3) The Department shall have the right to audit the
7    information provided in the customer's application and
8    annual reports to ensure continued compliance with the
9    requirements of this subsection. Based on the audit, if
10    the Department determines the customer is no longer in
11    compliance with the requirements of items (A) through (I)
12    of item (1) of this subsection (m), as applicable, the
13    Department shall notify the customer in writing of the
14    noncompliance. The customer shall have 30 days to
15    establish its compliance, and failing to do so, may have
16    its status as a SDC or exempt customer revoked by the
17    Department. The Department shall treat all information
18    provided by any customer seeking SDC status or exemption
19    from the provisions of this Section as strictly
20    confidential.
21        (4) Upon request, or on its own motion, the Commission
22    may open an investigation, no more than once every 3 years
23    and not before October 1, 2014, to evaluate the
24    effectiveness of the self-directing program described in
25    this subsection (m).
26    Customers described in this subsection (m) that applied to

 

 

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1the Department on January 3, 2013, were approved by the
2Department on February 13, 2013 to be a self-directing
3customer or exempt customer, and receive natural gas from a
4utility that provides gas service to at least 500,000 retail
5customers in Illinois and electric service to at least
61,000,000 retail customers in Illinois shall be considered to
7be a self-directing customer or exempt customer, as
8applicable, for the current 3-year planning period effective
9December 1, 2013.
10    (n) The applicability of this Section to customers
11described in subsection (m) of this Section is conditioned on
12the existence of the SDC program. In no event will any
13provision of this Section apply to such customers after
14January 1, 2020.
15    (o) Utilities' 3-year energy efficiency plans approved by
16the Commission on or before the effective date of this
17amendatory Act of the 99th General Assembly for the period
18June 1, 2014 through May 31, 2017 shall continue to be in force
19and effect through December 31, 2017 so that the energy
20efficiency programs set forth in those plans continue to be
21offered during the period June 1, 2017 through December 31,
222017. Each utility is authorized to increase, on a pro rata
23basis, the energy savings goals and budgets approved in its
24plan to reflect the additional 7 months of the plan's
25operation.
26(Source: P.A. 98-90, eff. 7-15-13; 98-225, eff. 8-9-13;

 

 

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198-604, eff. 12-17-13; 99-906, eff. 6-1-17.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.