Sen. Donne E. Trotter

Filed: 5/27/2016

 

 


 

 


 
09900SB1585sam004LRB099 09533 EGJ 49002 a

1
AMENDMENT TO SENATE BILL 1585

2    AMENDMENT NO. ______. Amend Senate Bill 1585, AS AMENDED,
3with reference to page and line numbers of Senate Amendment No.
43 as follows:
 
5on page 16, line 1, by replacing "3,000,000" with "500,000";
6and
 
7on page 16, line 8, after "State", by inserting "and for an
8electric utility that services 3,000,000 or less but more than
9500,000 customers in the State"; and
 
10on page 19, line 21, by replacing "3,000,000" with "500,000";
11and
 
12on page 20, line 18, after "State", by inserting "and for an
13electric utility that serves 3,000,000 or less but more than
14500,000 customers in the State"; and
 

 

 

09900SB1585sam004- 2 -LRB099 09533 EGJ 49002 a

1on page 91, immediately below line 4, by inserting the
2following:
 
3            "(G) Notwithstanding any other provision of law to
4        the contrary, a utility shall not be required to
5        execute any contract pursuant to this subsection (d-5)
6        unless at least one zero emission resource that is
7        designated to receive compensation for zero emission
8        credits is interconnected directly to the transmission
9        system within the electrical balancing authority or
10        zone established by the applicable regional
11        transmission organization of the purchasing utility at
12        the time of execution. All contracts executed pursuant
13        to this subsection (d-5) shall explicitly permit
14        termination in the event that any utility subject to
15        this Section that is required to purchase zero emission
16        credits no longer has any zero emission resources
17        generating electricity within the electrical energy
18        balancing authority or zone ascribed to the utility by
19        a regional transmission organization. Termination of
20        all contracts pursuant to subparagraph (F) of this
21        subsection (d-5) and this subparagraph (G) shall
22        become effective upon 90 days following notice of
23        termination."; and
 

 

 

09900SB1585sam004- 3 -LRB099 09533 EGJ 49002 a

1on page 91, line 5, by replacing "(G)" with "(H)"; and
 
2on page 94, line 25, after "9-105,", by inserting "9-106,"; and
 
3on page 96, line 5, by replacing "3,000,000" with "500,000";
4and
 
5on page 96, line 8, after "State", by inserting "and to
6electric utilities serving 3,000,000 or less but more than
7500,000 retail customers in the State"; and
 
8on page 108, line 16, by replacing "expenses" with
9"expenditures"; and
 
10on page 109, line 8, after "State", by inserting "and to
11electric utilities serving 3,000,000 or less but more than
12500,000 retail customers in the State"; and
 
13on page 109, line 10, after "Section", by inserting "serving
14more than 3,000,000 retail customers in the State"; and
 
15on page 111, line 17, after "utilities", by inserting "subject
16to this Section serving more than 3,000,000 retail customers in
17the State"; and
 
18on page 112, immediately below line 24, by inserting the

 

 

09900SB1585sam004- 4 -LRB099 09533 EGJ 49002 a

1following:
 
2    "(b-6) (1) For purposes of this Section, electric utilities
3subject to this Section serving 3,000,000 or less but more than
4500,000 retail customers in the State shall be deemed to have
5achieved a cumulative persisting annual savings of 6.6%, or
62,435,400 MWhs for the year ending December 31, 2017, which is
7based on the deemed average weather normalized sales of
8electric power and energy during calendar years 2014, 2015, and
92016 of 36,900,000 MWhs. The 36,900,000 MWhs of deemed electric
10power and energy sales shall also serve as the baseline value
11for calculating the cumulative persisting annual savings in
12paragraph (2) of this subsection. After 2017, the deemed value
13of cumulative persisting annual savings shall be reduced each
14year, as follows, and the applicable value shall be applied to
15and count toward the utility's achievement of the cumulative
16persisting annual savings goals set forth in paragraph (2) of
17this subsection:
18            (A) 5.8%, or 2,140,200 MWhs, deemed cumulative
19        persisting annual savings for the year ending December
20        31, 2018;
21            (B) 5.2%, or 1,918,800 MWhs, deemed cumulative
22        persisting annual savings for the year ending December
23        31, 2019;
24            (C) 4.5%, or 1,660,500 MWhs, deemed cumulative
25        persisting annual savings for the year ending December

 

 

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1        31, 2020;
2            (D) 4.0% or 1,476,000 MWhs, deemed cumulative
3        persisting annual savings for the year ending December
4        31, 2021;
5            (E) 3.5%, or 1,291,500 MWhs, deemed cumulative
6        persisting annual savings for the year ending December
7        31, 2022;
8            (F) 3.1%, or 1,143,900 MWhs, deemed cumulative
9        persisting annual savings for the year ending December
10        31, 2023;
11            (G) 2.8%, or 1,033,200 MWhs, deemed cumulative
12        persisting annual savings for the year ending December
13        31, 2024;
14            (H) 2.5%, or 922,500 MWhs, deemed cumulative
15        persisting annual savings for the year ending December
16        31, 2025;
17            (I) 2.3%, or 848,700 MWhs, deemed cumulative
18        persisting annual savings for the year ending December
19        31, 2026;
20            (J) 2.1%, or 774,900 MWhs, deemed cumulative
21        persisting annual savings for the year ending December
22        31, 2027;
23            (K) 1.8%, or 664,200 MWhs, deemed cumulative
24        persisting annual savings for the year ending December
25        31, 2028;
26            (L) 1.7%, or 627,300 MWhs, deemed cumulative

 

 

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1        persisting annual savings for the year ending December
2        31, 2029; and
3            (M) 1.5%, or 553,500 MWhs, deemed cumulative
4        persisting annual savings for the year ending December
5        31, 2030.
6        For purposes of this Section, "cumulative persisting
7    annual savings" is the total electric energy savings in a
8    given year from measures installed in that year or in
9    previous years that are still operational and providing
10    savings in that year because the measures have not yet
11    reached the end of their useful lives.
12        (2) Beginning in 2018, electric utilities subject to
13    this Section serving 3,000,000 or less but more than
14    500,000 retail customers in the State shall achieve the
15    following cumulative persisting annual savings goals, as
16    modified by subsection (b-10) and subsection (f) of this
17    Section and as compared to the deemed baseline of
18    36,900,000 MWhs of electric power and energy sales set
19    forth in paragraph (1) of this subsection (b-6), through
20    the implementation of cost-effective energy efficiency
21    measures during the applicable year and in prior years by
22    the utility and, if applicable, the Department of Commerce
23    and Economic Opportunity:
24            (A) 7.275% cumulative persisting annual savings
25        for the year ending December 31, 2018;
26            (B) 7.95% cumulative persisting annual savings for

 

 

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1        the year ending December 31, 2019;
2            (C) 8.625% cumulative persisting annual savings
3        for the year ending December 31, 2020;
4            (D) 9.3% cumulative persisting annual savings for
5        the year ending December 31, 2021;
6            (E) 9.975% cumulative persisting annual savings
7        for the year ending December 31, 2022;
8            (F) 10.65% cumulative persisting annual savings
9        for the year ending December 31, 2023;
10            (G) 11.325% cumulative persisting annual savings
11        for the year ending December 31, 2024;
12            (H) 12% cumulative persisting annual savings for
13        the year ending December 31, 2025;
14            (I) 12.6% cumulative persisting annual savings for
15        the year ending December 31, 2026;
16            (J) 13.2% cumulative persisting annual savings for
17        the year ending December 31, 2027;
18            (K) 13.8% cumulative persisting annual savings for
19        the year ending December 31, 2028;
20            (L) 14.4% cumulative persisting annual savings for
21        the year ending December 31, 2029; and
22            (M) 15% cumulative persisting annual savings for
23        the year ending December 31, 2030."; and
 
24on page 112, by replacing lines 25 and 26 with the following:
 

 

 

09900SB1585sam004- 8 -LRB099 09533 EGJ 49002 a

1    "(b-10) Each electric utility subject to this Section that
2serves more than 3,000,000 retail customers in the State and
3each electric utility subject to this Section that serves
43,000,000 or less but more than 500,000 retail customers in the
5State shall include"; and
 
6on page 113, by replacing lines 9 through 13 with the
7following:
 
8"provisions of Article IX or Section 16-108.5 of this Act.
9    Within 270 days of the effective date of this amendatory
10Act of the 99th General Assembly, an electric utility that
11serves 3,000,000 retail customers or less but more than 500,000
12retail customers in the State shall file a plan with the
13Commission that identifies the cost-effective voltage
14optimization investment the electric utility plans to spend
15through December 31, 2024. The Commission, after hearing, shall
16approve or approve with modification the plan within 120 days
17of the filing of the plan and, in the Final Order approving or
18approving with modification the plan, the Commission shall
19adjust the applicable persistent cumulative savings goals set
20forth in paragraph (2) of subsection (b-6) to reflect any
21amount of cost-effective energy savings approved by the
22Commission that is greater than or less than the following
23cumulative persistent savings values attributable to voltage
24optimization for the applicable year:

 

 

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1        (1) 0.0% of persistent savings in 2018;
2        (2) 0.17% of persistent savings in 2019;
3        (3) 0.17% of persistent savings in 2020;
4        (4) 0.33% of persistent savings in 2021;
5        (5) 0.5% of persistent savings in 2022;
6        (6) 0.67% of persistent savings in 2023;
7        (7) 0.83% of persistent savings in 2024; and
8        (8) 1.0% of persistent savings in 2025.
9    For purposes of this Section, the measure life of voltage
10optimization measures shall be 15 years. The measure life
11period is independent of the depreciation rate of the voltage
12optimization assets deployed."; and
 
13on page 113, line 21, by replacing "(b)" with "(b-5) or (b-6)";
14and
 
15on page 113, line 26, after the period, by inserting "An
16electric utility subject to this Section that serves 3,000,000
17retail customers or less but more than 500,000 retail customers
18in this State and that is affiliated with a gas utility subject
19to Section 8-104 of this Act may count the kWh equivalent of
20all natural gas savings in excess of the gas utility's
21Commission-approved natural gas savings goals, provided,
22however, that the maximum amount of the kWh equivalent counted
23towards the annual savings goals calculated pursuant to
24subsection (b-6) shall be 30%."; and
 

 

 

09900SB1585sam004- 10 -LRB099 09533 EGJ 49002 a

1on page 114, line 2, after "(b-10)", by inserting "and an
2electric utility that is affiliated with a gas utility for
3purposes of paragraph (6) of subsection (f) of Section 8-104 of
4this Act may recover the costs of offering any dual fuel energy
5efficiency measures pursuant to this Section."; and
 
6on page 114, line 5, after "8-104", by inserting "or not
7offered with an affiliated gas utility for purposes of
8paragraph (6) of subsection (f) of Section 8-104 of this Act
9pursuant to an integrated plan approved under this Section and
10Section 8-104 of this Act"; and
 
11on page 114, by replacing line 15 with "implementation. For
12electric utilities that serve more than 3,000,000 retail
13customers a minimum of 10%, and for electric utilities that
14serve 3,000,000 or less but more than 500,000 retail customers
15a minimum of 7%, of the entire portfolio funding level"; and
 
16on page 115, line 1, after "year", by inserting "for electric
17utilities that serve more than 3,000,000 retail customers and
18$16,700,000 per year for electric utilities that serve
193,000,000 or less but more than 500,000 retail customers"; and
 
20on page 115, line 4, after "for", by inserting "electric
21utilities that serve more than 3,000,000 retail customers, and

 

 

09900SB1585sam004- 11 -LRB099 09533 EGJ 49002 a

19,766,081 kilowatt-hours per year for electric utilities that
2serve 3,000,000 or less but more than 500,000 retail customers
3for"; and
 
4on page 116, line 16, by replacing "A" with "Notwithstanding
5any other provision of law to the contrary, a"; and
 
6on page 116, line 18, after "recover", by inserting "all
7reasonable and prudently incurred"; and
 
8on page 127, line 8, by replacing "expenses" with
9"expenditures"; and
 
10on page 127, line 8, after "Section", by inserting ",
11including, but not limited to, any expenditures incurred above
12the funding level set by subsection (f) of this Section for a
13calendar year,"; and
 
14on page 127, line 9, by replacing "expenses" with
15"expenditures"; and
 
16on page 128, line 6, by replacing "subsection (b)" with
17"subsections (b) and (b-6)"; and
 
18on page 129, line 11, after "Section", by inserting "or in
19subparagraphs (A) through (D) of paragraph (2) of subsection

 

 

09900SB1585sam004- 12 -LRB099 09533 EGJ 49002 a

1(b-6) of this Section"; and
 
2on page 129, line 19, after "Section", by inserting "or in
3subparagraphs (E) through (H) of paragraph (2) of subsection
4(b-6) of this Section"; and
 
5on page 130, line 1, after "Section", by inserting "or in
6subparagraphs (I) through (M) of paragraph (2) of subsection
7(b-6) of this Section"; and
 
8on page 130, immediately below line 8, by inserting the
9following:
 
10    "Notwithstanding the cumulative persisting annual savings
11goals specified in paragraph (2) of subsection (b-6), as
12modified by subsection (b-10) and subsection (f) of this
13Section, for an electric utility that serves 3,000,000 retail
14customers or less but more than 500,000 retail customers, the
15plan filed pursuant to this subsection (f) shall limit funding
16in each year of the plan such that the revenue requirement
17associated with the energy efficiency recovery mechanism set
18forth in subsection (d) does not exceed 15% of the electric
19utility's delivery services revenue requirement, including any
20reconciliation balance associated with the delivery services
21requirement, in effect on January 1 of the year of the filing
22of the plan with the Commission.

 

 

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1    For purposes of this subsection (f), the revenue
2requirement associated with the energy efficiency recovery
3mechanism shall be the energy efficiency revenue requirement
4approved by the Commission pursuant to paragraph (3) of
5subsection (d) of this Section, including any over-collection
6or under-collection indicated by a reconciliation of a prior
7year and any interest applied as a result of such
8over-collection or under-collection."; and
 
9on page 131, immediately below line 5, by inserting the
10following:
 
11    "For an electric utility that serves 3,000,000 or less but
12more than 500,000 retail customers, the Commission approved
13plan shall include funding levels that are consistent with the
1415% of the delivery services revenue requirement limitation set
15forth in this subsection (f)."; and
 
16on page 135, line 1, by replacing "subsection (b) of" with
17"subsection (b) or (b-6) of this Section, as modified by the
18Commission pursuant to"; and
 
19on page 135, line 13, by replacing "subsection (b) of" with
20"subsection (b) or (b-6) of this Section, as modified by the
21Commission pursuant to"; and
 

 

 

09900SB1585sam004- 14 -LRB099 09533 EGJ 49002 a

1on page 136, immediately below line 3, by inserting the
2following:
 
3        "Notwithstanding subparagraph (A) and (B) of paragraph
4    (2) of this subsection (g), an electric utility that serves
5    3,000,000 retail customers or less but more than 500,000
6    retail customers in the State that does not meet the
7    cumulative persisting annual savings goal set forth in
8    paragraph (2) of subsection (b-6) for a calendar year, but
9    whose revenue requirement associated with the energy
10    efficiency recovery mechanism in effect during the
11    calendar year is in excess of 14.5% of the delivery
12    services revenue requirement, including any reconciliation
13    balance associated with the delivery services requirement,
14    in effect on January 1 of the year of the filing of the
15    plan with the Commission shall be deemed compliant with
16    this Section and have an adjustment equal to zero made to
17    its return on equity component of the utility's weighted
18    average cost of capital calculated pursuant to subsection
19    (d) for that calendar year."; and
 
20on page 136, line 10, after "(b-5)", by inserting "or (b-6)";
21and
 
22on page 139, line 12, by replacing "expenses" with
23"expenditures"; and
 

 

 

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1on page 166, by replacing lines 12 through 22 with the
2following:
 
3    "(220 ILCS 5/9-106 new)
4    Sec. 9-106. Revenue regulation. Beginning on January 1,
52018, an electric utility that has a performance-based formula
6rate in effect pursuant to Section 16-108.5 of this Act shall
7be permitted to revise the formula rate and schedules to reduce
8the 50 basis point values to zero that would otherwise apply
9under paragraph (5) of subsection (c) of Section 16-108.5 of
10this Act. If the utility no longer has a performance-based
11formula rate in effect pursuant to Section 16-108.5 of this
12Act, then the utility shall be permitted to implement the
13revenue balancing adjustment tariff described in Section 9-107
14of this Act. Notwithstanding any provision of this Act to the
15contrary, to the extent the utility has not elected or is not
16yet eligible to recover its cost of providing delivery services
17pursuant to subsection (b) of Section 9-105, the limit on the
18amount of the delivery services revenue requirement that may be
19recovered from such customers through the customer charge
20defined in paragraph (1) of subsection (c) of Section 9-105
21shall apply beginning January 1, 2018, concurrent with the
22effective date of the revisions to the formula rate and
23schedules to reduce the 50 basis point values to zero that
24would have otherwise applied under paragraph (5) of subsection

 

 

09900SB1585sam004- 16 -LRB099 09533 EGJ 49002 a

1(c) of Section 16-108.5 of this Act permitted by this
2Section."; and
 
3on page 167, by replacing lines 14 and 15 with the following:
 
4    "(b) An electric utility that is authorized under Section
59-106 of this Act to implement"; and
 
6on page 207, by replacing lines 14 through 16, with the
7following:
 
8    "(i) Within 30 days of Commission approval, or approval on
9rehearing, whichever is later, of a tariff filed pursuant to
10subsection (b) of this Section, each electric utility with net
11metering customers on the effective date of this amendatory Act
12of the 99th General Assembly"; and
 
13on page 220, immediately below line 1, by inserting the
14following:
 
15    "(l) A utility that has terminated any contract providing
16for the purchase of zero emissions credits pursuant to
17subsection (d-5) of Section 1-75 of the Illinois Power Agency
18Act shall be entitled to recover any remaining balance
19associated with the purchase of credits prior to termination
20and shall also be obligated to refund or credit to customers

 

 

09900SB1585sam004- 17 -LRB099 09533 EGJ 49002 a

1any pending over-recoveries as applicable.".