Full Text of HB5147 96th General Assembly
HB5147ham002 96TH GENERAL ASSEMBLY
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Rep. Michael G. Connelly
Filed: 3/16/2010
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09600HB5147ham002 |
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LRB096 18562 AMC 38895 a |
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| AMENDMENT TO HOUSE BILL 5147
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| AMENDMENT NO. ______. Amend House Bill 5147, AS AMENDED, by | 3 |
| replacing everything after the enacting clause with the | 4 |
| following:
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| "Section 5. The Public Utilities Act is amended by changing | 6 |
| Section 16-108 as follows:
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| (220 ILCS 5/16-108)
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| Sec. 16-108. Recovery of costs associated with the
the
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| provision of delivery services. | 10 |
| (a) An electric utility shall file a delivery services
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| tariff with the Commission at least 210 days prior to the date
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| that it is required to begin offering such services pursuant
to | 13 |
| this Act. An electric utility shall provide the components
of | 14 |
| delivery services that are subject to the jurisdiction of
the | 15 |
| Federal Energy Regulatory Commission at the same prices,
terms | 16 |
| and conditions set forth in its applicable tariff as
approved |
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| or allowed into effect by that Commission. The
Commission shall | 2 |
| otherwise have the authority pursuant to Article IX to review,
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| approve, and modify the prices, terms and conditions of those
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| components of delivery services not subject to the
jurisdiction | 5 |
| of the Federal Energy Regulatory Commission,
including the | 6 |
| authority to determine the extent to which such
delivery | 7 |
| services should be offered on an unbundled basis. In making any | 8 |
| such
determination the Commission shall consider, at a minimum, | 9 |
| the effect of
additional unbundling on (i) the objective of | 10 |
| just and reasonable rates, (ii)
electric utility employees, and | 11 |
| (iii) the development of competitive markets
for electric | 12 |
| energy services in Illinois.
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| (b) The Commission shall enter an order approving, or
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| approving as modified, the delivery services tariff no later
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| than 30 days prior to the date on which the electric utility
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| must commence offering such services. The Commission may
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| subsequently modify such tariff pursuant to this Act.
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| (c) The electric utility's
tariffs shall define the classes | 19 |
| of its customers for purposes
of delivery services charges. | 20 |
| Delivery services shall be priced and made
available to all | 21 |
| retail customers electing delivery services in each such class
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| on a nondiscriminatory basis regardless of whether the retail | 23 |
| customer chooses
the electric utility, an affiliate of the | 24 |
| electric utility, or another entity
as its supplier of electric | 25 |
| power and energy. Charges for delivery services
shall be cost | 26 |
| based,
and shall allow the electric utility to recover the |
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LRB096 18562 AMC 38895 a |
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| costs of
providing delivery services through its charges to its
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| delivery service customers that use the facilities and
services | 3 |
| associated with such costs.
Such costs shall include the
costs | 4 |
| of owning, operating and maintaining transmission and
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| distribution facilities. The Commission shall also be
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| authorized to consider whether, and if so to what extent, the
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| following costs are appropriately included in the electric
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| utility's delivery services rates: (i) the costs of that
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| portion of generation facilities used for the production and
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| absorption of reactive power in order that retail customers
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| located in the electric utility's service area can receive
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| electric power and energy from suppliers other than the
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| electric utility, and (ii) the costs associated with the use
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| and redispatch of generation facilities to mitigate
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| constraints on the transmission or distribution system in
order | 16 |
| that retail customers located in the electric utility's
service | 17 |
| area can receive electric power and energy from
suppliers other | 18 |
| than the electric utility. Nothing in this
subsection shall be | 19 |
| construed as directing the Commission to
allocate any of the | 20 |
| costs described in (i) or (ii) that are
found to be | 21 |
| appropriately included in the electric utility's
delivery | 22 |
| services rates to any particular customer group or
geographic | 23 |
| area in setting delivery services rates.
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| (d) The Commission shall establish charges, terms and
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| conditions for delivery services that are just and reasonable
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| and shall take into account customer impacts when establishing
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| such charges. In establishing charges, terms and conditions
for | 2 |
| delivery services, the Commission shall take into account
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| voltage level differences. A retail customer shall have the
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| option to request to purchase electric service at any delivery
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| service voltage reasonably and technically feasible from the
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| electric facilities serving that customer's premises provided
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| that there are no significant adverse impacts upon system
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| reliability or system efficiency. A retail customer shall
also | 9 |
| have the option to request to purchase electric service
at any | 10 |
| point of delivery that is reasonably and technically
feasible | 11 |
| provided that there are no significant adverse
impacts on | 12 |
| system reliability or efficiency. Such requests
shall not be | 13 |
| unreasonably denied.
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| (e) Electric utilities shall recover the costs of
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| installing, operating or maintaining facilities for the
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| particular benefit of one or more delivery services customers,
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| including without limitation any costs incurred in complying
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| with a customer's request to be served at a different voltage
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| level, directly from the retail customer or customers for
whose | 20 |
| benefit the costs were incurred, to the extent such
costs are | 21 |
| not recovered through the charges referred to in
subsections | 22 |
| (c) and (d) of this Section.
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| (f) An electric utility shall be entitled but not
required | 24 |
| to implement transition charges in conjunction with
the | 25 |
| offering of delivery services pursuant to Section 16-104.
If an | 26 |
| electric utility implements transition charges, it shall |
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| implement such
charges for all delivery services customers and | 2 |
| for all customers described in
subsection (h), but shall not | 3 |
| implement transition charges for power and
energy that a retail | 4 |
| customer takes from cogeneration or self-generation
facilities | 5 |
| located on that retail customer's premises, if such facilities | 6 |
| meet
the following criteria:
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| (i) the cogeneration or self-generation facilities | 8 |
| serve a single retail
customer and are located on that | 9 |
| retail customer's premises (for purposes of
this | 10 |
| subparagraph and subparagraph (ii), an industrial or | 11 |
| manufacturing retail
customer and a third party contractor | 12 |
| that is served by such industrial or
manufacturing customer | 13 |
| through such retail customer's own electrical
distribution | 14 |
| facilities under the circumstances described in subsection | 15 |
| (vi) of
the definition of "alternative retail electric | 16 |
| supplier" set forth in Section
16-102, shall be considered | 17 |
| a single retail customer);
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| (ii) the cogeneration or self-generation facilities | 19 |
| either (A) are sized
pursuant to generally accepted | 20 |
| engineering standards for the retail customer's
electrical | 21 |
| load at that premises (taking into account standby or other
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| reliability considerations related to that retail | 23 |
| customer's operations at that
site) or (B) if the facility | 24 |
| is a cogeneration facility located on the retail
customer's | 25 |
| premises, the retail customer is the thermal host for that | 26 |
| facility
and the facility has been designed to meet that |
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| retail customer's thermal
energy requirements resulting in | 2 |
| electrical output beyond that retail
customer's electrical | 3 |
| demand at that premises, comply with the operating and
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| efficiency standards applicable to "qualifying facilities" | 5 |
| specified in title
18 Code of Federal Regulations Section | 6 |
| 292.205 as in effect on the effective
date of this | 7 |
| amendatory Act of 1999;
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| (iii) the retail customer on whose premises the | 9 |
| facilities are located
either has an exclusive right to | 10 |
| receive, and corresponding obligation to pay
for, all of | 11 |
| the electrical capacity of the facility, or in the case of | 12 |
| a
cogeneration facility that has been designed to meet the | 13 |
| retail customer's
thermal energy requirements at that | 14 |
| premises, an identified amount of the
electrical capacity | 15 |
| of the facility, over a minimum 5-year period; and
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| (iv) if the cogeneration facility is sized for the
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| retail customer's thermal load at that premises but exceeds | 18 |
| the electrical
load, any sales of excess power or energy | 19 |
| are made only at wholesale, are
subject to the jurisdiction | 20 |
| of the Federal Energy Regulatory Commission, and
are not | 21 |
| for the purpose of circumventing the provisions of this | 22 |
| subsection (f).
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| If a generation facility located at a retail customer's | 24 |
| premises does not meet
the above criteria, an electric utility | 25 |
| implementing
transition charges shall implement a transition | 26 |
| charge until December 31, 2006
for any power and energy taken |
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| by such retail customer from such facility as if
such power and | 2 |
| energy had been delivered by the electric utility. Provided,
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| however, that an industrial retail customer that is taking | 4 |
| power from a
generation facility that does not meet the above | 5 |
| criteria but that is located
on such customer's premises will | 6 |
| not be subject to a transition charge for the
power and energy | 7 |
| taken by such retail customer from such generation facility if
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| the facility does not serve any other retail customer and | 9 |
| either was installed
on behalf of the customer and for its own | 10 |
| use prior to January 1, 1997, or is
both predominantly fueled | 11 |
| by byproducts of such customer's manufacturing
process at such | 12 |
| premises and sells or offers an average of 300 megawatts or
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| more of electricity produced from such generation facility into | 14 |
| the wholesale
market.
Such charges
shall be calculated as | 15 |
| provided in Section
16-102, and shall be collected
on each | 16 |
| kilowatt-hour delivered under a
delivery services tariff to a | 17 |
| retail customer from the date
the customer first takes delivery | 18 |
| services until December 31,
2006 except as provided in | 19 |
| subsection (h) of this Section.
Provided, however, that an | 20 |
| electric utility, other than an electric utility
providing | 21 |
| service to at least 1,000,000 customers in this State on | 22 |
| January 1,
1999,
shall be entitled to petition for
entry of an | 23 |
| order by the Commission authorizing the electric utility to
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| implement transition charges for an additional period ending no | 25 |
| later than
December 31, 2008. The electric utility shall file | 26 |
| its petition with
supporting evidence no earlier than 16 |
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| months, and no later than 12 months,
prior to December 31, | 2 |
| 2006. The Commission shall hold a hearing on the
electric | 3 |
| utility's petition and shall enter its order no later than 8 | 4 |
| months
after the petition is filed. The Commission shall | 5 |
| determine whether and to
what extent the electric utility shall | 6 |
| be authorized to implement transition
charges for an additional | 7 |
| period. The Commission may authorize the electric
utility to | 8 |
| implement transition charges for some or all of the additional
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| period, and shall determine the mitigation factors to be used | 10 |
| in implementing
such transition charges; provided, that the | 11 |
| Commission shall not authorize
mitigation factors less than | 12 |
| 110% of those in effect during the 12 months ended
December 31, | 13 |
| 2006. In making its determination, the Commission shall | 14 |
| consider
the following factors: the necessity to implement | 15 |
| transition charges for an
additional period in order to | 16 |
| maintain the financial integrity of the electric
utility; the | 17 |
| prudence of the electric utility's actions in reducing its | 18 |
| costs
since the effective date of this amendatory Act of 1997; | 19 |
| the ability of the
electric utility to provide safe, adequate | 20 |
| and reliable service to retail
customers in its service area; | 21 |
| and the impact on competition of allowing the
electric utility | 22 |
| to implement transition charges for the additional period.
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| (g) The electric utility shall file tariffs that
establish | 24 |
| the transition charges to be paid by each class of
customers to | 25 |
| the electric utility in conjunction with the
provision of | 26 |
| delivery services. The electric utility's tariffs
shall define |
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LRB096 18562 AMC 38895 a |
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| the classes of its customers for purposes of
calculating | 2 |
| transition charges. The electric utility's tariffs
shall | 3 |
| provide for the calculation of transition charges on a
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| customer-specific basis for any retail customer whose average
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| monthly maximum electrical demand on the electric utility's
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| system during the 6 months with the customer's highest monthly
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| maximum electrical demands equals or exceeds 3.0 megawatts for
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| electric utilities having more than 1,000,000 customers, and
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| for other electric utilities for any customer that has an
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| average monthly maximum electrical demand on the electric
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| utility's system of one megawatt or more, and (A) for which
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| there exists data on the customer's usage during the 3 years
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| preceding the date that the customer became eligible to take
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| delivery services, or (B) for which there does not exist data
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| on the customer's usage during the 3 years preceding the date
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| that the customer became eligible to take delivery services,
if | 17 |
| in the electric utility's reasonable judgment there exists
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| comparable usage information or a sufficient basis to develop
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| such information, and further provided that the electric
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| utility can require customers for which an individual
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| calculation is made to sign contracts that set forth the
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| transition charges to be paid by the customer to the electric
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| utility pursuant to the tariff.
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| (h) An electric utility shall also be entitled to file
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| tariffs that allow it to collect transition charges from
retail | 26 |
| customers in the electric utility's service area that
do not |
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| take delivery services but that take electric power or
energy | 2 |
| from an alternative retail electric supplier or from an
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| electric utility other than the electric utility in whose
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| service area the customer is located. Such charges shall be
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| calculated, in accordance with the definition of transition
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| charges in Section 16-102, for the period of time that the
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| customer would be obligated to pay transition charges if it
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| were taking delivery services, except that no deduction for
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| delivery services revenues shall be made in such calculation,
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| and usage data from the customer's class shall be used where
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| historical usage data is not available for the individual
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| customer. The customer shall be obligated to pay such charges
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| on a lump sum basis on or before the date on which the
customer | 14 |
| commences to take service from the alternative retail
electric | 15 |
| supplier or other electric utility, provided, that
the electric | 16 |
| utility in whose service area the customer is
located shall | 17 |
| offer the customer the option of signing a
contract pursuant to | 18 |
| which the customer pays such charges
ratably over the period in | 19 |
| which the charges would otherwise
have applied.
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| (i) An electric utility shall be entitled to add to the
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| bills of delivery services customers charges pursuant to
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| Sections 9-221, 9-222 (except as provided in Section 9-222.1), | 23 |
| and Section
16-114 of this Act, Section 5-5 of the Electricity | 24 |
| Infrastructure Maintenance
Fee Law, Section 6-5 of the | 25 |
| Renewable Energy, Energy Efficiency, and Coal
Resources | 26 |
| Development Law of 1997, and Section 13 of the Energy |
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| Assistance Act.
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| (j) If a retail customer that obtains electric power and
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| energy from cogeneration or self-generation facilities
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| installed for its own use on or before January 1, 1997,
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| subsequently takes service from an alternative retail electric
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| supplier or an electric utility other than the electric
utility | 7 |
| in whose service area the customer is located for any
portion | 8 |
| of the customer's electric power and energy
requirements | 9 |
| formerly obtained from those facilities (including that amount
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| purchased from the utility in lieu of such generation and not | 11 |
| as standby power
purchases, under a cogeneration displacement | 12 |
| tariff in effect as of the
effective date of this amendatory | 13 |
| Act of 1997), the
transition charges otherwise applicable | 14 |
| pursuant to subsections (f), (g), or
(h) of this Section shall | 15 |
| not be applicable
in any year to that portion of the customer's | 16 |
| electric power
and energy requirements formerly obtained from | 17 |
| those
facilities, provided, that for purposes of this | 18 |
| subsection
(j), such portion shall not exceed the average | 19 |
| number of
kilowatt-hours per year obtained from the | 20 |
| cogeneration or
self-generation facilities during the 3 years | 21 |
| prior to the
date on which the customer became eligible for | 22 |
| delivery
services, except as provided in subsection (f) of | 23 |
| Section
16-110.
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| (Source: P.A. 91-50, eff. 6-30-99; 92-690, eff. 7-18-02.)".
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