Full Text of HB3987 101st General Assembly
HB3987 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB3987 Introduced 1/8/2020, by Rep. Mark Batinick - Kelly M. Cassidy - Sam Yingling - Thomas Morrison - Grant Wehrli, et al. SYNOPSIS AS INTRODUCED: |
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Amends the Public Utilities Act. Provides that notwithstanding anything to the contrary, certain provisions of the Electric Service Customer Choice and Rate Relief Law of 1997 relating to the recovery of costs associated with the purchase of zero emission credits do not apply to any retail customers of an electric utility that serves more than 3,000,000 retail customers in the State. Effective immediately.
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| | A BILL FOR |
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| 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 16-108 as follows:
| 6 | | (220 ILCS 5/16-108)
| 7 | | Sec. 16-108. Recovery of costs associated with the
| 8 | | provision of delivery and other services. | 9 | | (a) An electric utility shall file a delivery services
| 10 | | tariff with the Commission at least 210 days prior to the date
| 11 | | that it is required to begin offering such services pursuant
to | 12 | | this Act. An electric utility shall provide the components
of | 13 | | delivery services that are subject to the jurisdiction of
the | 14 | | Federal Energy Regulatory Commission at the same prices,
terms | 15 | | and conditions set forth in its applicable tariff as
approved | 16 | | or allowed into effect by that Commission. The
Commission shall | 17 | | otherwise have the authority pursuant to Article IX to review,
| 18 | | approve, and modify the prices, terms and conditions of those
| 19 | | components of delivery services not subject to the
jurisdiction | 20 | | of the Federal Energy Regulatory Commission,
including the | 21 | | authority to determine the extent to which such
delivery | 22 | | services should be offered on an unbundled basis. In making any | 23 | | such
determination the Commission shall consider, at a minimum, |
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| 1 | | the effect of
additional unbundling on (i) the objective of | 2 | | just and reasonable rates, (ii)
electric utility employees, and | 3 | | (iii) the development of competitive markets
for electric | 4 | | energy services in Illinois.
| 5 | | (b) The Commission shall enter an order approving, or
| 6 | | approving as modified, the delivery services tariff no later
| 7 | | than 30 days prior to the date on which the electric utility
| 8 | | must commence offering such services. The Commission may
| 9 | | subsequently modify such tariff pursuant to this Act.
| 10 | | (c) The electric utility's
tariffs shall define the classes | 11 | | of its customers for purposes
of delivery services charges. | 12 | | Delivery services shall be priced and made
available to all | 13 | | retail customers electing delivery services in each such class
| 14 | | on a nondiscriminatory basis regardless of whether the retail | 15 | | customer chooses
the electric utility, an affiliate of the | 16 | | electric utility, or another entity
as its supplier of electric | 17 | | power and energy. Charges for delivery services
shall be cost | 18 | | based,
and shall allow the electric utility to recover the | 19 | | costs of
providing delivery services through its charges to its
| 20 | | delivery service customers that use the facilities and
services | 21 | | associated with such costs.
Such costs shall include the
costs | 22 | | of owning, operating and maintaining transmission and
| 23 | | distribution facilities. The Commission shall also be
| 24 | | authorized to consider whether, and if so to what extent, the
| 25 | | following costs are appropriately included in the electric
| 26 | | utility's delivery services rates: (i) the costs of that
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| 1 | | portion of generation facilities used for the production and
| 2 | | absorption of reactive power in order that retail customers
| 3 | | located in the electric utility's service area can receive
| 4 | | electric power and energy from suppliers other than the
| 5 | | electric utility, and (ii) the costs associated with the use
| 6 | | and redispatch of generation facilities to mitigate
| 7 | | constraints on the transmission or distribution system in
order | 8 | | that retail customers located in the electric utility's
service | 9 | | area can receive electric power and energy from
suppliers other | 10 | | than the electric utility. Nothing in this
subsection shall be | 11 | | construed as directing the Commission to
allocate any of the | 12 | | costs described in (i) or (ii) that are
found to be | 13 | | appropriately included in the electric utility's
delivery | 14 | | services rates to any particular customer group or
geographic | 15 | | area in setting delivery services rates.
| 16 | | (d) The Commission shall establish charges, terms and
| 17 | | conditions for delivery services that are just and reasonable
| 18 | | and shall take into account customer impacts when establishing
| 19 | | such charges. In establishing charges, terms and conditions
for | 20 | | delivery services, the Commission shall take into account
| 21 | | voltage level differences. A retail customer shall have the
| 22 | | option to request to purchase electric service at any delivery
| 23 | | service voltage reasonably and technically feasible from the
| 24 | | electric facilities serving that customer's premises provided
| 25 | | that there are no significant adverse impacts upon system
| 26 | | reliability or system efficiency. A retail customer shall
also |
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| 1 | | have the option to request to purchase electric service
at any | 2 | | point of delivery that is reasonably and technically
feasible | 3 | | provided that there are no significant adverse
impacts on | 4 | | system reliability or efficiency. Such requests
shall not be | 5 | | unreasonably denied.
| 6 | | (e) Electric utilities shall recover the costs of
| 7 | | installing, operating or maintaining facilities for the
| 8 | | particular benefit of one or more delivery services customers,
| 9 | | including without limitation any costs incurred in complying
| 10 | | with a customer's request to be served at a different voltage
| 11 | | level, directly from the retail customer or customers for
whose | 12 | | benefit the costs were incurred, to the extent such
costs are | 13 | | not recovered through the charges referred to in
subsections | 14 | | (c) and (d) of this Section.
| 15 | | (f) An electric utility shall be entitled but not
required | 16 | | to implement transition charges in conjunction with
the | 17 | | offering of delivery services pursuant to Section 16-104.
If an | 18 | | electric utility implements transition charges, it shall | 19 | | implement such
charges for all delivery services customers and | 20 | | for all customers described in
subsection (h), but shall not | 21 | | implement transition charges for power and
energy that a retail | 22 | | customer takes from cogeneration or self-generation
facilities | 23 | | located on that retail customer's premises, if such facilities | 24 | | meet
the following criteria:
| 25 | | (i) the cogeneration or self-generation facilities | 26 | | serve a single retail
customer and are located on that |
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| 1 | | retail customer's premises (for purposes of
this | 2 | | subparagraph and subparagraph (ii), an industrial or | 3 | | manufacturing retail
customer and a third party contractor | 4 | | that is served by such industrial or
manufacturing customer | 5 | | through such retail customer's own electrical
distribution | 6 | | facilities under the circumstances described in subsection | 7 | | (vi) of
the definition of "alternative retail electric | 8 | | supplier" set forth in Section
16-102, shall be considered | 9 | | a single retail customer);
| 10 | | (ii) the cogeneration or self-generation facilities | 11 | | either (A) are sized
pursuant to generally accepted | 12 | | engineering standards for the retail customer's
electrical | 13 | | load at that premises (taking into account standby or other
| 14 | | reliability considerations related to that retail | 15 | | customer's operations at that
site) or (B) if the facility | 16 | | is a cogeneration facility located on the retail
customer's | 17 | | premises, the retail customer is the thermal host for that | 18 | | facility
and the facility has been designed to meet that | 19 | | retail customer's thermal
energy requirements resulting in | 20 | | electrical output beyond that retail
customer's electrical | 21 | | demand at that premises, comply with the operating and
| 22 | | efficiency standards applicable to "qualifying facilities" | 23 | | specified in title
18 Code of Federal Regulations Section | 24 | | 292.205 as in effect on the effective
date of this | 25 | | amendatory Act of 1999;
| 26 | | (iii) the retail customer on whose premises the |
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| 1 | | facilities are located
either has an exclusive right to | 2 | | receive, and corresponding obligation to pay
for, all of | 3 | | the electrical capacity of the facility, or in the case of | 4 | | a
cogeneration facility that has been designed to meet the | 5 | | retail customer's
thermal energy requirements at that | 6 | | premises, an identified amount of the
electrical capacity | 7 | | of the facility, over a minimum 5-year period; and
| 8 | | (iv) if the cogeneration facility is sized for the
| 9 | | retail customer's thermal load at that premises but exceeds | 10 | | the electrical
load, any sales of excess power or energy | 11 | | are made only at wholesale, are
subject to the jurisdiction | 12 | | of the Federal Energy Regulatory Commission, and
are not | 13 | | for the purpose of circumventing the provisions of this | 14 | | subsection (f).
| 15 | | If a generation facility located at a retail customer's | 16 | | premises does not meet
the above criteria, an electric utility | 17 | | implementing
transition charges shall implement a transition | 18 | | charge until December 31, 2006
for any power and energy taken | 19 | | by such retail customer from such facility as if
such power and | 20 | | energy had been delivered by the electric utility. Provided,
| 21 | | however, that an industrial retail customer that is taking | 22 | | power from a
generation facility that does not meet the above | 23 | | criteria but that is located
on such customer's premises will | 24 | | not be subject to a transition charge for the
power and energy | 25 | | taken by such retail customer from such generation facility if
| 26 | | the facility does not serve any other retail customer and |
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| 1 | | either was installed
on behalf of the customer and for its own | 2 | | use prior to January 1, 1997, or is
both predominantly fueled | 3 | | by byproducts of such customer's manufacturing
process at such | 4 | | premises and sells or offers an average of 300 megawatts or
| 5 | | more of electricity produced from such generation facility into | 6 | | the wholesale
market.
Such charges
shall be calculated as | 7 | | provided in Section
16-102, and shall be collected
on each | 8 | | kilowatt-hour delivered under a
delivery services tariff to a | 9 | | retail customer from the date
the customer first takes delivery | 10 | | services until December 31,
2006 except as provided in | 11 | | subsection (h) of this Section.
Provided, however, that an | 12 | | electric utility, other than an electric utility
providing | 13 | | service to at least 1,000,000 customers in this State on | 14 | | January 1,
1999,
shall be entitled to petition for
entry of an | 15 | | order by the Commission authorizing the electric utility to
| 16 | | implement transition charges for an additional period ending no | 17 | | later than
December 31, 2008. The electric utility shall file | 18 | | its petition with
supporting evidence no earlier than 16 | 19 | | months, and no later than 12 months,
prior to December 31, | 20 | | 2006. The Commission shall hold a hearing on the
electric | 21 | | utility's petition and shall enter its order no later than 8 | 22 | | months
after the petition is filed. The Commission shall | 23 | | determine whether and to
what extent the electric utility shall | 24 | | be authorized to implement transition
charges for an additional | 25 | | period. The Commission may authorize the electric
utility to | 26 | | implement transition charges for some or all of the additional
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| 1 | | period, and shall determine the mitigation factors to be used | 2 | | in implementing
such transition charges; provided, that the | 3 | | Commission shall not authorize
mitigation factors less than | 4 | | 110% of those in effect during the 12 months ended
December 31, | 5 | | 2006. In making its determination, the Commission shall | 6 | | consider
the following factors: the necessity to implement | 7 | | transition charges for an
additional period in order to | 8 | | maintain the financial integrity of the electric
utility; the | 9 | | prudence of the electric utility's actions in reducing its | 10 | | costs
since the effective date of this amendatory Act of 1997; | 11 | | the ability of the
electric utility to provide safe, adequate | 12 | | and reliable service to retail
customers in its service area; | 13 | | and the impact on competition of allowing the
electric utility | 14 | | to implement transition charges for the additional period.
| 15 | | (g) The electric utility shall file tariffs that
establish | 16 | | the transition charges to be paid by each class of
customers to | 17 | | the electric utility in conjunction with the
provision of | 18 | | delivery services. The electric utility's tariffs
shall define | 19 | | the classes of its customers for purposes of
calculating | 20 | | transition charges. The electric utility's tariffs
shall | 21 | | provide for the calculation of transition charges on a
| 22 | | customer-specific basis for any retail customer whose average
| 23 | | monthly maximum electrical demand on the electric utility's
| 24 | | system during the 6 months with the customer's highest monthly
| 25 | | maximum electrical demands equals or exceeds 3.0 megawatts for
| 26 | | electric utilities having more than 1,000,000 customers, and
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| 1 | | for other electric utilities for any customer that has an
| 2 | | average monthly maximum electrical demand on the electric
| 3 | | utility's system of one megawatt or more, and (A) for which
| 4 | | there exists data on the customer's usage during the 3 years
| 5 | | preceding the date that the customer became eligible to take
| 6 | | delivery services, or (B) for which there does not exist data
| 7 | | on the customer's usage during the 3 years preceding the date
| 8 | | that the customer became eligible to take delivery services,
if | 9 | | in the electric utility's reasonable judgment there exists
| 10 | | comparable usage information or a sufficient basis to develop
| 11 | | such information, and further provided that the electric
| 12 | | utility can require customers for which an individual
| 13 | | calculation is made to sign contracts that set forth the
| 14 | | transition charges to be paid by the customer to the electric
| 15 | | utility pursuant to the tariff.
| 16 | | (h) An electric utility shall also be entitled to file
| 17 | | tariffs that allow it to collect transition charges from
retail | 18 | | customers in the electric utility's service area that
do not | 19 | | take delivery services but that take electric power or
energy | 20 | | from an alternative retail electric supplier or from an
| 21 | | electric utility other than the electric utility in whose
| 22 | | service area the customer is located. Such charges shall be
| 23 | | calculated, in accordance with the definition of transition
| 24 | | charges in Section 16-102, for the period of time that the
| 25 | | customer would be obligated to pay transition charges if it
| 26 | | were taking delivery services, except that no deduction for
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| 1 | | delivery services revenues shall be made in such calculation,
| 2 | | and usage data from the customer's class shall be used where
| 3 | | historical usage data is not available for the individual
| 4 | | customer. The customer shall be obligated to pay such charges
| 5 | | on a lump sum basis on or before the date on which the
customer | 6 | | commences to take service from the alternative retail
electric | 7 | | supplier or other electric utility, provided, that
the electric | 8 | | utility in whose service area the customer is
located shall | 9 | | offer the customer the option of signing a
contract pursuant to | 10 | | which the customer pays such charges
ratably over the period in | 11 | | which the charges would otherwise
have applied.
| 12 | | (i) An electric utility shall be entitled to add to the
| 13 | | bills of delivery services customers charges pursuant to
| 14 | | Sections 9-221, 9-222 (except as provided in Section 9-222.1), | 15 | | and Section
16-114 of this Act, Section 5-5 of the Electricity | 16 | | Infrastructure Maintenance
Fee Law, Section 6-5 of the | 17 | | Renewable Energy, Energy Efficiency, and Coal
Resources | 18 | | Development Law of 1997, and Section 13 of the Energy | 19 | | Assistance Act.
| 20 | | (j) If a retail customer that obtains electric power and
| 21 | | energy from cogeneration or self-generation facilities
| 22 | | installed for its own use on or before January 1, 1997,
| 23 | | subsequently takes service from an alternative retail electric
| 24 | | supplier or an electric utility other than the electric
utility | 25 | | in whose service area the customer is located for any
portion | 26 | | of the customer's electric power and energy
requirements |
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| 1 | | formerly obtained from those facilities (including that amount
| 2 | | purchased from the utility in lieu of such generation and not | 3 | | as standby power
purchases, under a cogeneration displacement | 4 | | tariff in effect as of the
effective date of this amendatory | 5 | | Act of 1997), the
transition charges otherwise applicable | 6 | | pursuant to subsections (f), (g), or
(h) of this Section shall | 7 | | not be applicable
in any year to that portion of the customer's | 8 | | electric power
and energy requirements formerly obtained from | 9 | | those
facilities, provided, that for purposes of this | 10 | | subsection
(j), such portion shall not exceed the average | 11 | | number of
kilowatt-hours per year obtained from the | 12 | | cogeneration or
self-generation facilities during the 3 years | 13 | | prior to the
date on which the customer became eligible for | 14 | | delivery
services, except as provided in subsection (f) of | 15 | | Section
16-110.
| 16 | | (k) The electric utility shall be entitled to recover | 17 | | through tariffed charges all of the costs associated with the | 18 | | purchase of zero emission credits from zero emission facilities | 19 | | to meet the requirements of subsection (d-5) of Section 1-75 of | 20 | | the Illinois Power Agency Act. Such costs shall include the | 21 | | costs of procuring the zero emission credits, as well as the | 22 | | reasonable costs that the utility incurs as part of the | 23 | | procurement processes and to implement and comply with plans | 24 | | and processes approved by the Commission under such subsection | 25 | | (d-5). The costs shall be allocated across all retail customers | 26 | | through a single, uniform cents per kilowatt-hour charge |
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| 1 | | applicable to all retail customers, which shall appear as a | 2 | | separate line item on each customer's bill. Beginning June 1, | 3 | | 2017, the electric utility shall be entitled to recover through | 4 | | tariffed charges all of the costs associated with the purchase | 5 | | of renewable energy resources to meet the renewable energy | 6 | | resource standards of subsection (c) of Section 1-75 of the | 7 | | Illinois Power Agency Act, under procurement plans as approved | 8 | | in accordance with that Section and Section 16-111.5 of this | 9 | | Act. Such costs shall include the costs of procuring the | 10 | | renewable energy resources, as well as the reasonable costs | 11 | | that the utility incurs as part of the procurement processes | 12 | | and to implement and comply with plans and processes approved | 13 | | by the Commission under such Sections. The costs associated | 14 | | with the purchase of renewable energy resources shall be | 15 | | allocated across all retail customers in proportion to the | 16 | | amount of renewable energy resources the utility procures for | 17 | | such customers through a single, uniform cents per | 18 | | kilowatt-hour charge applicable to such retail customers, | 19 | | which shall appear as a separate line item on each such | 20 | | customer's bill. | 21 | | Notwithstanding whether the Commission has approved the | 22 | | initial long-term renewable resources procurement plan as of | 23 | | June 1, 2017, an electric utility shall place new tariffed | 24 | | charges into effect beginning with the June 2017 monthly | 25 | | billing period, to the extent practicable, to begin recovering | 26 | | the costs of procuring renewable energy resources, as those |
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| 1 | | charges are calculated under the limitations described in | 2 | | subparagraph (E) of paragraph (1) of subsection (c) of Section | 3 | | 1-75 of the Illinois Power Agency Act. Notwithstanding the date | 4 | | on which the utility places such new tariffed charges into | 5 | | effect, the utility shall be permitted to collect the charges | 6 | | under such tariff as if the tariff had been in effect beginning | 7 | | with the first day of the June 2017 monthly billing period. For | 8 | | the delivery years commencing June 1, 2017, June 1, 2018, and | 9 | | June 1, 2019, the electric utility shall deposit into a | 10 | | separate interest bearing account of a financial institution | 11 | | the monies collected under the tariffed charges. Any interest | 12 | | earned shall be credited back to retail customers under the | 13 | | reconciliation proceeding provided for in this subsection (k), | 14 | | provided that the electric utility shall first be reimbursed | 15 | | from the interest for the administrative costs that it incurs | 16 | | to administer and manage the account. Any taxes due on the | 17 | | funds in the account, or interest earned on it, will be paid | 18 | | from the account or, if insufficient monies are available in | 19 | | the account, from the monies collected under the tariffed | 20 | | charges to recover the costs of procuring renewable energy | 21 | | resources. Monies deposited in the account shall be subject to | 22 | | the review, reconciliation, and true-up process described in | 23 | | this subsection (k) that is applicable to the funds collected | 24 | | and costs incurred for the procurement of renewable energy | 25 | | resources. | 26 | | The electric utility shall be entitled to recover all of |
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| 1 | | the costs identified in this subsection (k) through automatic | 2 | | adjustment clause tariffs applicable to all of the utility's | 3 | | retail customers that allow the electric utility to adjust its | 4 | | tariffed charges consistent with this subsection (k). The | 5 | | determination as to whether any excess funds were collected | 6 | | during a given delivery year for the purchase of renewable | 7 | | energy resources, and the crediting of any excess funds back to | 8 | | retail customers, shall not be made until after the close of | 9 | | the delivery year, which will ensure that the maximum amount of | 10 | | funds is available to implement the approved long-term | 11 | | renewable resources procurement plan during a given delivery | 12 | | year. The electric utility's collections under such automatic | 13 | | adjustment clause tariffs to recover the costs of renewable | 14 | | energy resources and zero emission credits from zero emission | 15 | | facilities shall be subject to separate annual review, | 16 | | reconciliation, and true-up against actual costs by the | 17 | | Commission under a procedure that shall be specified in the | 18 | | electric utility's automatic adjustment clause tariffs and | 19 | | that shall be approved by the Commission in connection with its | 20 | | approval of such tariffs. The procedure shall provide that any | 21 | | difference between the electric utility's collections under | 22 | | the automatic adjustment charges for an annual period and the | 23 | | electric utility's actual costs of renewable energy resources | 24 | | and zero emission credits from zero emission facilities for | 25 | | that same annual period shall be refunded to or collected from, | 26 | | as applicable, the electric utility's retail customers in |
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| 1 | | subsequent periods. | 2 | | Nothing in this subsection (k) is intended to affect, | 3 | | limit, or change the right of the electric utility to recover | 4 | | the costs associated with the procurement of renewable energy | 5 | | resources for periods commencing before, on, or after June 1, | 6 | | 2017, as otherwise provided in the Illinois Power Agency Act. | 7 | | Notwithstanding anything to the contrary, the Commission | 8 | | shall not conduct an annual review, reconciliation, and true-up | 9 | | associated with renewable energy resources' collections and | 10 | | costs for the delivery years commencing June 1, 2017, June 1, | 11 | | 2018, June 1, 2019, and June 1, 2020, and shall instead conduct | 12 | | a single review, reconciliation, and true-up associated with | 13 | | renewable energy resources' collections and costs for the | 14 | | 4-year period beginning June 1, 2017 and ending May 31, 2021, | 15 | | provided that the review, reconciliation, and true-up shall not | 16 | | be initiated until after August 31, 2021. During the 4-year | 17 | | period, the utility shall be permitted to collect and retain | 18 | | funds under this subsection (k) and to purchase renewable | 19 | | energy resources under an approved long-term renewable | 20 | | resources procurement plan using those funds regardless of the | 21 | | delivery year in which the funds were collected during the | 22 | | 4-year period. | 23 | | If the amount of funds collected during the delivery year | 24 | | commencing June 1, 2017, exceeds the costs incurred during that | 25 | | delivery year, then up to half of this excess amount, as | 26 | | calculated on June 1, 2018, may be used to fund the programs |
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| 1 | | under subsection (b) of Section 1-56 of the Illinois Power | 2 | | Agency Act in the same proportion the programs are funded under | 3 | | that subsection (b). However, any amount identified under this | 4 | | subsection (k) to fund programs under subsection (b) of Section | 5 | | 1-56 of the Illinois Power Agency Act shall be reduced if it | 6 | | exceeds the funding shortfall. For purposes of this Section, | 7 | | "funding shortfall" means the difference between $200,000,000 | 8 | | and the amount appropriated by the General Assembly to the | 9 | | Illinois Power Agency Renewable Energy Resources Fund during | 10 | | the period that commences on the effective date of this | 11 | | amendatory act of the 99th General Assembly and ends on August | 12 | | 1, 2018. | 13 | | If the amount of funds collected during the delivery year | 14 | | commencing June 1, 2018, exceeds the costs incurred during that | 15 | | delivery year, then up to half of this excess amount, as | 16 | | calculated on June 1, 2019, may be used to fund the programs | 17 | | under subsection (b) of Section 1-56 of the Illinois Power | 18 | | Agency Act in the same proportion the programs are funded under | 19 | | that subsection (b). However, any amount identified under this | 20 | | subsection (k) to fund programs under subsection (b) of Section | 21 | | 1-56 of the Illinois Power Agency Act shall be reduced if it | 22 | | exceeds the funding shortfall. | 23 | | If the amount of funds collected during the delivery year | 24 | | commencing June 1, 2019, exceeds the costs incurred during that | 25 | | delivery year, then up to half of this excess amount, as | 26 | | calculated on June 1, 2020, may be used to fund the programs |
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| 1 | | under subsection (b) of Section 1-56 of the Illinois Power | 2 | | Agency Act in the same proportion the programs are funded under | 3 | | that subsection (b). However, any amount identified under this | 4 | | subsection (k) to fund programs under subsection (b) of Section | 5 | | 1-56 of the Illinois Power Agency Act shall be reduced if it | 6 | | exceeds the funding shortfall. | 7 | | The funding available under this subsection (k), if any, | 8 | | for the programs described under subsection (b) of Section 1-56 | 9 | | of the Illinois Power Agency Act shall not reduce the amount of | 10 | | funding for the programs described in subparagraph (O) of | 11 | | paragraph (1) of subsection (c) of Section 1-75 of the Illinois | 12 | | Power Agency Act. If funding is available under this subsection | 13 | | (k) for programs described under subsection (b) of Section 1-56 | 14 | | of the Illinois Power Agency Act, then the long-term renewable | 15 | | resources plan shall provide for the Agency to procure | 16 | | contracts in an amount that does not exceed the funding, and | 17 | | the contracts approved by the Commission shall be executed by | 18 | | the applicable utility or utilities. | 19 | | Notwithstanding anything to the contrary, after the | 20 | | effective date of this amendatory Act of the 101st General | 21 | | Assembly, this subsection (k) does not apply to any retail | 22 | | customers of an electric utility that serves more than | 23 | | 3,000,000 retail customers in the State. | 24 | | (l) A utility that has terminated any contract executed | 25 | | under subsection (d-5) of Section 1-75 of the Illinois Power | 26 | | Agency Act shall be entitled to recover any remaining balance |
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| 1 | | associated with the purchase of zero emission credits prior to | 2 | | such termination, and such utility shall also apply a credit to | 3 | | its retail customer bills in the event of any over-collection. | 4 | | (m)(1) An electric utility that recovers its costs of | 5 | | procuring zero emission credits from zero emission | 6 | | facilities through a cents-per-kilowatthour charge under | 7 | | to subsection (k) of this Section shall be subject to the | 8 | | requirements of this subsection (m). Notwithstanding | 9 | | anything to the contrary, such electric utility shall, | 10 | | beginning on April 30, 2018, and each April 30 thereafter | 11 | | until April 30, 2026, calculate whether any reduction must | 12 | | be applied to such cents-per-kilowatthour charge that is | 13 | | paid by retail customers of the electric utility that are | 14 | | exempt from subsections (a) through (j) of Section 8-103B | 15 | | of this Act under subsection (l) of Section 8-103B. Such | 16 | | charge shall be reduced for such customers for the next | 17 | | delivery year commencing on June 1 based on the amount | 18 | | necessary, if any, to limit the annual estimated average | 19 | | net increase for the prior calendar year due to the future | 20 | | energy investment costs to no more than 1.3% of 5.98 cents | 21 | | per kilowatt-hour, which is the average amount paid per | 22 | | kilowatthour for electric service during the year ending | 23 | | December 31, 2015 by Illinois industrial retail customers, | 24 | | as reported to the Edison Electric Institute. | 25 | | The calculations required by this subsection (m) shall | 26 | | be made only once for each year, and no subsequent rate |
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| 1 | | impact determinations shall be made. | 2 | | (2) For purposes of this Section, "future energy | 3 | | investment costs" shall be calculated by subtracting the | 4 | | cents-per-kilowatthour charge identified in subparagraph | 5 | | (A) of this paragraph (2) from the sum of the | 6 | | cents-per-kilowatthour charges identified in subparagraph | 7 | | (B) of this paragraph (2): | 8 | | (A) The cents-per-kilowatthour charge identified | 9 | | in the electric utility's tariff placed into effect | 10 | | under Section 8-103 of the Public Utilities Act that, | 11 | | on December 1, 2016, was applicable to those retail | 12 | | customers that are exempt from subsections (a) through | 13 | | (j) of Section 8-103B of this Act under subsection (l) | 14 | | of Section 8-103B. | 15 | | (B) The sum of the following | 16 | | cents-per-kilowatthour charges applicable to those | 17 | | retail customers that are exempt from subsections (a) | 18 | | through (j) of Section 8-103B of this Act under | 19 | | subsection (l) of Section 8-103B, provided that if one | 20 | | or more of the following charges has been in effect and | 21 | | applied to such customers for more than one calendar | 22 | | year, then each charge shall be equal to the average of | 23 | | the charges applied over a period that commences with | 24 | | the calendar year ending December 31, 2017 and ends | 25 | | with the most recently completed calendar year prior to | 26 | | the calculation required by this subsection (m): |
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| 1 | | (i) the cents-per-kilowatthour charge to | 2 | | recover the costs incurred by the utility under | 3 | | subsection (d-5) of Section 1-75 of the Illinois | 4 | | Power Agency Act, adjusted for any reductions | 5 | | required under this subsection (m); and | 6 | | (ii) the cents-per-kilowatthour charge to | 7 | | recover the costs incurred by the utility under | 8 | | Section 16-107.6 of the Public Utilities Act. | 9 | | If no charge was applied for a given calendar year | 10 | | under item (i) or (ii) of this subparagraph (B), then | 11 | | the value of the charge for that year shall be zero. | 12 | | (3) If a reduction is required by the calculation | 13 | | performed under this subsection (m), then the amount of the | 14 | | reduction shall be multiplied by the number of years | 15 | | reflected in the averages calculated under subparagraph | 16 | | (B) of paragraph (2) of this subsection (m). Such reduction | 17 | | shall be applied to the cents-per-kilowatthour charge that | 18 | | is applicable to those retail customers that are exempt | 19 | | from subsections (a) through (j) of Section 8-103B of this | 20 | | Act under subsection (l) of Section 8-103B beginning with | 21 | | the next delivery year commencing after the date of the | 22 | | calculation required by this subsection (m). | 23 | | (4) The electric utility shall file a notice with the | 24 | | Commission on May 1 of 2018 and each May 1 thereafter until | 25 | | May 1, 2026 containing the reduction, if any, which must be | 26 | | applied for the delivery year which begins in the year of |
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| 1 | | the filing. The notice shall contain the calculations made | 2 | | pursuant to this Section. By October 1 of each year | 3 | | beginning in 2018, each electric utility shall notify the | 4 | | Commission if it appears, based on an estimate of the | 5 | | calculation required in this subsection (m), that a | 6 | | reduction will be required in the next year. | 7 | | Notwithstanding anything to the contrary, after the | 8 | | effective date of this amendatory Act of the 101st General | 9 | | Assembly, this subsection (m) does not apply to any retail | 10 | | customers of an electric utility that serves more than | 11 | | 3,000,000 retail customers in the State. | 12 | | (Source: P.A. 99-906, eff. 6-1-17 .)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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