Full Text of HB1510 95th General Assembly
HB1510ham001 95TH GENERAL ASSEMBLY
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Least Cost Power Procurement Committee
Filed: 3/22/2007
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LRB095 10692 MJR 32280 a |
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| AMENDMENT TO HOUSE BILL 1510
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| AMENDMENT NO. ______. Amend House Bill 1510 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Public Utilities Act is amended by adding | 5 |
| Section 16-103A as follows: | 6 |
| (220 ILCS 5/16-103A new) | 7 |
| Sec. 16-103A. Provision of standard electric service after | 8 |
| the mandatory transition period. | 9 |
| (a) Beginning on the effective date of this amendatory Act | 10 |
| of the 95th General Assembly, residential and small commercial | 11 |
| customers shall be provided standard electric service. | 12 |
| Standard electric service shall consist of an electricity | 13 |
| supply service priced according to the policies adopted by this | 14 |
| Act.
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| (b) Any residential retail customer or small commercial | 16 |
| retail customer that is not otherwise being served by an |
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| alternative retail electric supplier shall be automatically | 2 |
| provided with standard electric service. Any residential | 3 |
| retail or small commercial retail customer served by an | 4 |
| alternative retail electric supplier shall have the option to | 5 |
| select standard electric service at any time.
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| (c) The terms and conditions for standard electric service | 7 |
| shall at a minimum reflect the consumer protection programs and | 8 |
| policies governing application for service, deposit rules, | 9 |
| billing, credit, and collection practices in Chapter 280 of the | 10 |
| Commission's rules.
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| (d) Each electric utility shall plan, procure, and provide | 12 |
| standard electric service pursuant to a procurement plan for | 13 |
| electric supply approved by the Commission after notice and | 14 |
| opportunity for public hearing.
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| (e) The price for standard electric service shall be based | 16 |
| on the underlying actual and incremental just and reasonable | 17 |
| costs incurred by the electric utility to plan, procure, and | 18 |
| provide this service. Standard electric service shall not be | 19 |
| structured or priced to stimulate or force the development of a | 20 |
| competitive retail market. Rather, this service shall operate | 21 |
| as a benchmark or price to compare against which alternative | 22 |
| retail electric suppliers may market their services.
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| (f) Standard electric service shall be billed and collected | 24 |
| by the electric utility in a bill format that identifies the | 25 |
| unbundled price for standard electric service, which format | 26 |
| shall by approved by the Commission.
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| (g) Within 30 days of the effective date of this amendatory | 2 |
| Act of the 95th General Assembly, the Commission shall require | 3 |
| each electric utility to undertake the development of and | 4 |
| submit a procurement plan for standard electric service within | 5 |
| 6 months of the effective date of this amendatory Act of the | 6 |
| 95th General Assembly. The procurement plan shall reflect a | 7 |
| minimum 10-year planning and acquisition period. The | 8 |
| procurement plan shall be updated annually. Any Standard | 9 |
| Electric Service procurement plan shall comply with the | 10 |
| following requirements:
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| (1) The plan shall recommend a portfolio that is most | 12 |
| likely to provide the lowest total price with reasonable | 13 |
| price stability over the term of the plan so as to avoid | 14 |
| unusual, anomalous or excessive prices.
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| (2) The plan shall reflect a diversity of electric | 16 |
| supply and cost-effective demand reduction contracts and | 17 |
| services to be procured in an overlapping pattern of fixed | 18 |
| periods at such times and in such a manner that are likely | 19 |
| to produce just, reasonable, and reasonably stable prices | 20 |
| over the term of the plan.
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| (3) The electric utility shall systematically evaluate | 22 |
| and have the authority to propose short-term and long-term | 23 |
| contracts for the procurement of electric supply; own and | 24 |
| operate facilities for the generation of electric supply; | 25 |
| make investments in demand side resources; and take such | 26 |
| other actions as approved by the Commission to diversify |
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| the standard offer service portfolio and assure compliance | 2 |
| with the statutory goals and objectives for this service.
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| (4) The recommended portfolio shall minimize the | 4 |
| reliance on short term or spot market transactions | 5 |
| consistent with a reasonable assessment of risk with | 6 |
| respect to both price and generation supply availability | 7 |
| during the term of the plan.
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| (5) The plan shall contain a mechanism to rely on | 9 |
| annual price changes for standard electric service that | 10 |
| reflects the actual changes in price of the various | 11 |
| components of the entire portfolio and minimize, to the | 12 |
| extent reasonable, the need for reconciliation of costs | 13 |
| associated with price changes in the entire portfolio on an | 14 |
| annual basis.
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| (h) The electric utility may recover the actual and | 16 |
| incremental costs incurred to manage the standard electric | 17 |
| service portfolio. The electric utility may propose an | 18 |
| incentive mechanism that establishes a procurement benchmark | 19 |
| or benchmarks that relies upon quantifiable objectives and | 20 |
| standards, and that balances risks and rewards for the electric | 21 |
| utility in meeting the portfolio management goals and | 22 |
| objectives as set forth in the approved procurement plan.
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| (i) To the extent possible, the electric utility shall rely | 24 |
| on competitive methods of acquiring the products, contracts, | 25 |
| and resources that are identified in its procurement plan for | 26 |
| standard electric service. The Commission shall approve any |
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| proposed method or methods of competitive acquisition as part | 2 |
| of its review of the electric utility's proposed standard offer | 3 |
| service procurement plan.
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| (j) Standard electric service shall be available to | 5 |
| residential and small commercial customers at any time and | 6 |
| without the imposition of an additional fee or charge for | 7 |
| switching to the service. However, the Commission may adopt | 8 |
| minimum terms of service (not to exceed 12 months) or | 9 |
| additional fees for switching to alternative retail electric | 10 |
| suppliers if the Commission finds, after notice and opportunity | 11 |
| for public hearing and comment, that a significant number of | 12 |
| residential or small commercial customers have switched or are | 13 |
| likely to switch in the near future to alternative retail | 14 |
| electric suppliers or aggregators, thus increasing the risk | 15 |
| associated with the provision of standard electric service | 16 |
| under stable prices for the remaining customers. Any party that | 17 |
| proposes to impose minimum terms of service or switching fees | 18 |
| on residential or small commercial customers shall demonstrate | 19 |
| that switching activity by such customers has or is likely to | 20 |
| result in an increase in total costs for standard electric | 21 |
| service for that class of customers that exceeds 1% on an | 22 |
| annual basis. | 23 |
| (k) For purposes of this Section, "small commercial | 24 |
| customer" means a group of non-residential customers that are | 25 |
| being served by a public utility under a commercial rate and | 26 |
| schedule and that are not required to have a demand meter or |
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| reflect demand charges in their rate schedules.
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| Section 99. Effective date. This Act takes effect upon | 3 |
| becoming law.".
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