99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2813

 

Introduced 2/17/2016, by Sen. Don Harmon

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-102

    Amends the Public Utilities Act. Defines "solar customer" as any class of customer of an electric utility or an alternative retail electric supplier that uses a photovoltaic electric delivery system. Effective immediately.


LRB099 19991 EGJ 44390 b

 

 

A BILL FOR

 

SB2813LRB099 19991 EGJ 44390 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Section 16-102 as follows:
 
6    (220 ILCS 5/16-102)
7    Sec. 16-102. Definitions. For the purposes of this Article
8the following terms shall be defined as set forth in this
9Section.
10    "Alternative retail electric supplier" means every person,
11cooperative, corporation, municipal corporation, company,
12association, joint stock company or association, firm,
13partnership, individual, or other entity, their lessees,
14trustees, or receivers appointed by any court whatsoever, that
15offers electric power or energy for sale, lease or in exchange
16for other value received to one or more retail customers, or
17that engages in the delivery or furnishing of electric power or
18energy to such retail customers, and shall include, without
19limitation, resellers, aggregators and power marketers, but
20shall not include (i) electric utilities (or any agent of the
21electric utility to the extent the electric utility provides
22tariffed services to retail customers through that agent), (ii)
23any electric cooperative or municipal system as defined in

 

 

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1Section 17-100 to the extent that the electric cooperative or
2municipal system is serving retail customers within any area in
3which it is or would be entitled to provide service under the
4law in effect immediately prior to the effective date of this
5amendatory Act of 1997, (iii) a public utility that is owned
6and operated by any public institution of higher education of
7this State, or a public utility that is owned by such public
8institution of higher education and operated by any of its
9lessees or operating agents, within any area in which it is or
10would be entitled to provide service under the law in effect
11immediately prior to the effective date of this amendatory Act
12of 1997, (iv) a retail customer to the extent that customer
13obtains its electric power and energy from that customer's own
14cogeneration or self-generation facilities, (v) an entity that
15owns, operates, sells, or arranges for the installation of a
16customer's own cogeneration or self-generation facilities, but
17only to the extent the entity is engaged in owning, selling or
18arranging for the installation of such facility, or operating
19the facility on behalf of such customer, provided however that
20any such third party owner or operator of a facility built
21after January 1, 1999, complies with the labor provisions of
22Section 16-128(a) as though such third party were an
23alternative retail electric supplier, or (vi) an industrial or
24manufacturing customer that owns its own distribution
25facilities, to the extent that the customer provides service
26from that distribution system to a third-party contractor

 

 

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1located on the customer's premises that is integrally and
2predominantly engaged in the customer's industrial or
3manufacturing process; provided, that if the industrial or
4manufacturing customer has elected delivery services, the
5customer shall pay transition charges applicable to the
6electric power and energy consumed by the third-party
7contractor unless such charges are otherwise paid by the third
8party contractor, which shall be calculated based on the usage
9of, and the base rates or the contract rates applicable to, the
10third-party contractor in accordance with Section 16-102.
11    An entity that furnishes the service of charging electric
12vehicles does not and shall not be deemed to sell electricity
13and is not and shall not be deemed an alternative retail
14electric supplier, and is not subject to regulation as such
15under this Act notwithstanding the basis on which the service
16is provided or billed. If, however, the entity is otherwise
17deemed an alternative retail electric supplier under this Act,
18or is otherwise subject to regulation under this Act, then that
19entity is not exempt from and remains subject to the otherwise
20applicable provisions of this Act. The installation,
21maintenance, and repair of an electric vehicle charging station
22shall comply with the requirements of subsection (a) of Section
2316-128 and Section 16-128A of this Act.
24    For purposes of this Section, the term "electric vehicles"
25has the meaning ascribed to that term in Section 10 of the
26Electric Vehicle Act.

 

 

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1    "Base rates" means the rates for those tariffed services
2that the electric utility is required to offer pursuant to
3subsection (a) of Section 16-103 and that were identified in a
4rate order for collection of the electric utility's base rate
5revenue requirement, excluding (i) separate automatic rate
6adjustment riders then in effect, (ii) special or negotiated
7contract rates, (iii) delivery services tariffs filed pursuant
8to Section 16-108, (iv) real-time pricing, or (v) tariffs that
9were in effect prior to October 1, 1996 and that based charges
10for services on an index or average of other utilities'
11charges, but including (vi) any subsequent redesign of such
12rates for tariffed services that is authorized by the
13Commission after notice and hearing.
14    "Competitive service" includes (i) any service that has
15been declared to be competitive pursuant to Section 16-113 of
16this Act, (ii) contract service, and (iii) services, other than
17tariffed services, that are related to, but not necessary for,
18the provision of electric power and energy or delivery
19services.
20    "Contract service" means (1) services, including the
21provision of electric power and energy or other services, that
22are provided by mutual agreement between an electric utility
23and a retail customer that is located in the electric utility's
24service area, provided that, delivery services shall not be a
25contract service until such services are declared competitive
26pursuant to Section 16-113; and also means (2) the provision of

 

 

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1electric power and energy by an electric utility to retail
2customers outside the electric utility's service area pursuant
3to Section 16-116. Provided, however, contract service does not
4include electric utility services provided pursuant to (i)
5contracts that retail customers are required to execute as a
6condition of receiving tariffed services, or (ii) special or
7negotiated rate contracts for electric utility services that
8were entered into between an electric utility and a retail
9customer prior to the effective date of this amendatory Act of
101997 and filed with the Commission.
11    "Delivery services" means those services provided by the
12electric utility that are necessary in order for the
13transmission and distribution systems to function so that
14retail customers located in the electric utility's service area
15can receive electric power and energy from suppliers other than
16the electric utility, and shall include, without limitation,
17standard metering and billing services.
18    "Electric utility" means a public utility, as defined in
19Section 3-105 of this Act, that has a franchise, license,
20permit or right to furnish or sell electricity to retail
21customers within a service area.
22    "Mandatory transition period" means the period from the
23effective date of this amendatory Act of 1997 through January
241, 2007.
25    "Municipal system" shall have the meaning set forth in
26Section 17-100.

 

 

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1    "Real-time pricing" means tariffed retail charges for
2delivered electric power and energy that vary hour-to-hour and
3are determined from wholesale market prices using a methodology
4approved by the Illinois Commerce Commission.
5    "Retail customer" means a single entity using electric
6power or energy at a single premises and that (A) either (i) is
7receiving or is eligible to receive tariffed services from an
8electric utility, or (ii) that is served by a municipal system
9or electric cooperative within any area in which the municipal
10system or electric cooperative is or would be entitled to
11provide service under the law in effect immediately prior to
12the effective date of this amendatory Act of 1997, or (B) an
13entity which on the effective date of this Act was receiving
14electric service from a public utility and (i) was engaged in
15the practice of resale and redistribution of such electricity
16within a building prior to January 2, 1957, or (ii) was
17providing lighting services to tenants in a multi-occupancy
18building, but only to the extent such resale, redistribution or
19lighting service is authorized by the electric utility's
20tariffs that were on file with the Commission on the effective
21date of this Act.
22    "Service area" means (i) the geographic area within which
23an electric utility was lawfully entitled to provide electric
24power and energy to retail customers as of the effective date
25of this amendatory Act of 1997, and includes (ii) the location
26of any retail customer to which the electric utility was

 

 

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1lawfully providing electric utility services on such effective
2date.
3    "Small commercial retail customer" means those
4nonresidential retail customers of an electric utility
5consuming 15,000 kilowatt-hours or less of electricity
6annually in its service area.
7    "Solar customer" means any class of customer of an electric
8utility or an alternative retail electric supplier that uses a
9photovoltaic electric delivery system.
10    "Tariffed service" means services provided to retail
11customers by an electric utility as defined by its rates on
12file with the Commission pursuant to the provisions of Article
13IX of this Act, but shall not include competitive services.
14    "Transition charge" means a charge expressed in cents per
15kilowatt-hour that is calculated for a customer or class of
16customers as follows for each year in which an electric utility
17is entitled to recover transition charges as provided in
18Section 16-108:
19        (1) the amount of revenue that an electric utility
20    would receive from the retail customer or customers if it
21    were serving such customers' electric power and energy
22    requirements as a tariffed service based on (A) all of the
23    customers' actual usage during the 3 years ending 90 days
24    prior to the date on which such customers were first
25    eligible for delivery services pursuant to Section 16-104,
26    and (B) on (i) the base rates in effect on October 1, 1996

 

 

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1    (adjusted for the reductions required by subsection (b) of
2    Section 16-111, for any reduction resulting from a rate
3    decrease under Section 16-101(b), for any restatement of
4    base rates made in conjunction with an elimination of the
5    fuel adjustment clause pursuant to subsection (b), (d), or
6    (f) of Section 9-220 and for any removal of decommissioning
7    costs from base rates pursuant to Section 16-114) and any
8    separate automatic rate adjustment riders (other than a
9    decommissioning rate as defined in Section 16-114) under
10    which the customers were receiving or, had they been
11    customers, would have received electric power and energy
12    from the electric utility during the year immediately
13    preceding the date on which such customers were first
14    eligible for delivery service pursuant to Section 16-104,
15    or (ii) to the extent applicable, any contract rates,
16    including contracts or rates for consolidated or
17    aggregated billing, under which such customers were
18    receiving electric power and energy from the electric
19    utility during such year;
20        (2) less the amount of revenue, other than revenue from
21    transition charges and decommissioning rates, that the
22    electric utility would receive from such retail customers
23    for delivery services provided by the electric utility,
24    assuming such customers were taking delivery services for
25    all of their usage, based on the delivery services tariffs
26    in effect during the year for which the transition charge

 

 

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1    is being calculated and on the usage identified in
2    paragraph (1);
3        (3) less the market value for the electric power and
4    energy that the electric utility would have used to supply
5    all of such customers' electric power and energy
6    requirements, as a tariffed service, based on the usage
7    identified in paragraph (1), with such market value
8    determined in accordance with Section 16-112 of this Act;
9        (4) less the following amount which represents the
10    amount to be attributed to new revenue sources and cost
11    reductions by the electric utility through the end of the
12    period for which transition costs are recovered pursuant to
13    Section 16-108, referred to in this Article XVI as a
14    "mitigation factor":
15            (A) for nonresidential retail customers, an amount
16        equal to the greater of (i) 0.5 cents per kilowatt-hour
17        during the period October 1, 1999 through December 31,
18        2004, 0.6 cents per kilowatt-hour in calendar year
19        2005, and 0.9 cents per kilowatt-hour in calendar year
20        2006, multiplied in each year by the usage identified
21        in paragraph (1), or (ii) an amount equal to the
22        following percentages of the amount produced by
23        applying the applicable base rates (adjusted as
24        described in subparagraph (1)(B)) or contract rate to
25        the usage identified in paragraph (1): 8% for the
26        period October 1, 1999 through December 31, 2002, 10%

 

 

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1        in calendar years 2003 and 2004, 11% in calendar year
2        2005 and 12% in calendar year 2006; and
3            (B) for residential retail customers, an amount
4        equal to the following percentages of the amount
5        produced by applying the base rates in effect on
6        October 1, 1996 (adjusted as described in subparagraph
7        (1)(B)) to the usage identified in paragraph (1): (i)
8        6% from May 1, 2002 through December 31, 2002, (ii) 7%
9        in calendar years 2003 and 2004, (iii) 8% in calendar
10        year 2005, and (iv) 10% in calendar year 2006;
11        (5) divided by the usage of such customers identified
12    in paragraph (1),
13provided that the transition charge shall never be less than
14zero.
15    "Unbundled service" means a component or constituent part
16of a tariffed service which the electric utility subsequently
17offers separately to its customers.
18(Source: P.A. 97-1128, eff. 8-28-12.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.