95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2891

 

Introduced 2/15/2008, by Sen. Don Harmon

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-107

    Amends the Public Utilities Act. Makes a technical change in a Section concerning real-time pricing.


LRB095 19574 AMC 45900 b

 

 

A BILL FOR

 

SB2891 LRB095 19574 AMC 45900 b

1     AN ACT concerning regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Public Utilities Act is amended by changing
5 Section 16-107 as follows:
 
6     (220 ILCS 5/16-107)
7     Sec. 16-107. Real-time pricing.
8     (a) Each electric utility shall file, on or before May 1,
9 1998, a tariff or tariffs which allow nonresidential retail
10 customers in the the electric utility's service area to elect
11 real-time pricing beginning October 1, 1998.
12     (b) Each electric utility shall file, on or before May 1,
13 2000, a tariff or tariffs which allow residential retail
14 customers in the electric utility's service area to elect
15 real-time pricing beginning October 1, 2000.
16     (b-5) Each electric utility shall file a tariff or tariffs
17 allowing residential retail customers in the electric
18 utility's service area to elect real-time pricing beginning
19 January 2, 2007. A customer who elects real-time pricing shall
20 remain on such rate for a minimum of 12 months. The Commission
21 may, after notice and hearing, approve the tariff or tariffs,
22 provided that the Commission finds that the potential for
23 demand reductions will result in net economic benefits to all

 

 

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1 residential customers of the electric utility. In examining
2 economic benefits from demand reductions, the Commission
3 shall, at a minimum, consider the following: improvements to
4 system reliability and power quality, reduction in wholesale
5 market prices and price volatility, electric utility cost
6 avoidance and reductions, market power mitigation, and other
7 benefits of demand reductions, but only to the extent that the
8 effects of reduced demand can be demonstrated to lower the cost
9 of electricity delivered to residential customers. A tariff or
10 tariffs approved pursuant to this subsection (b-5) shall, at a
11 minimum, describe (i) the methodology for determining the
12 market price of energy to be reflected in the real-time rate
13 and (ii) the manner in which customers who elect real-time
14 pricing will be provided with ready access to hourly market
15 prices, including, but not limited to, day-ahead hourly energy
16 prices.
17     A proceeding under this subsection (b-5) may not exceed 120
18 days in length.
19     (b-10) Each electric utility providing real-time pricing
20 pursuant to subsection (b-5) shall install a meter capable of
21 recording hourly interval energy use at the service location of
22 each customer that elects real-time pricing pursuant to this
23 subsection.
24     (b-15) If the Commission issues an order pursuant to
25 subsection (b-5), the affected electric utility shall contract
26 with an entity not affiliated with the electric utility to

 

 

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1 serve as a program administrator to develop and implement a
2 program to provide consumer outreach, enrollment, and
3 education concerning real-time pricing and to establish and
4 administer an information system and technical and other
5 customer assistance that is necessary to enable customers to
6 manage electricity use. The program administrator: (i) shall be
7 selected and compensated by the electric utility, subject to
8 Commission approval; (ii) shall have demonstrated technical
9 and managerial competence in the development and
10 administration of demand management programs; and (iii) may
11 develop and implement risk management, energy efficiency, and
12 other services related to energy use management for which the
13 program administrator shall be compensated by participants in
14 the program receiving such services. The electric utility shall
15 provide the program administrator with all information and
16 assistance necessary to perform the program administrator's
17 duties, including, but not limited to, customer, account, and
18 energy use data. The electric utility shall permit the program
19 administrator to include inserts in residential customer bills
20 2 times per year to assist with customer outreach and
21 enrollment.
22     The program administrator shall submit an annual report to
23 the electric utility no later than April 1 of each year
24 describing the operation and results of the program, including
25 information concerning the number and types of customers using
26 real-time pricing, changes in customers' energy use patterns,

 

 

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1 an assessment of the value of the program to both participants
2 and non-participants, and recommendations concerning
3 modification of the program and the tariff or tariffs filed
4 under subsection (b-5). This report shall be filed by the
5 electric utility with the Commission within 30 days of receipt
6 and shall be available to the public on the Commission's web
7 site.
8     (b-20) The Commission shall monitor the performance of
9 programs established pursuant to subsection (b-15) and shall
10 order the termination or modification of a program if it
11 determines that the program is not, after a reasonable period
12 of time for development not to exceed 4 years, resulting in net
13 benefits to the residential customers of the electric utility.
14     (b-25) An electric utility shall be entitled to recover
15 reasonable costs incurred in complying with this Section,
16 provided that recovery of the costs is fairly apportioned among
17 its residential customers as provided in this subsection
18 (b-25). The electric utility may apportion greater costs on the
19 residential customers who elect real-time pricing, but may also
20 impose some of the costs of real-time pricing on customers who
21 do not elect real-time pricing, provided that the Commission
22 determines that the cost savings resulting from real-time
23 pricing will exceed the costs imposed on customers for
24 maintaining the program.
25     (c) The electric utility's tariff or tariffs filed pursuant
26 to this Section shall be subject to Article IX.

 

 

SB2891 - 5 - LRB095 19574 AMC 45900 b

1     (d) This Section does not apply to any electric utility
2 providing service to 100,000 or fewer customers.
3 (Source: P.A. 94-977, eff. 6-30-06.)