Illinois General Assembly - Full Text of HB5071
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Full Text of HB5071  97th General Assembly




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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
5Sections 3-105 and 16-102 as follows:
6    (220 ILCS 5/3-105)  (from Ch. 111 2/3, par. 3-105)
7    Sec. 3-105. Public utility.
8    (a) "Public utility" means and includes, except where
9otherwise expressly provided in this Section, every
10corporation, company, limited liability company, association,
11joint stock company or association, firm, partnership or
12individual, their lessees, trustees, or receivers appointed by
13any court whatsoever that owns, controls, operates or manages,
14within this State, directly or indirectly, for public use, any
15plant, equipment or property used or to be used for or in
16connection with, or owns or controls any franchise, license,
17permit or right to engage in:
18        (1) the production, storage, transmission, sale,
19    delivery or furnishing of heat, cold, power, electricity,
20    water, or light, except when used solely for communications
21    purposes;
22        (2) the disposal of sewerage; or
23        (3) the conveyance of oil or gas by pipe line.



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1    (b) "Public utility" does not include, however:
2        (1) public utilities that are owned and operated by any
3    political subdivision, public institution of higher
4    education or municipal corporation of this State, or public
5    utilities that are owned by such political subdivision,
6    public institution of higher education, or municipal
7    corporation and operated by any of its lessees or operating
8    agents;
9        (2) water companies which are purely mutual concerns,
10    having no rates or charges for services, but paying the
11    operating expenses by assessment upon the members of such a
12    company and no other person;
13        (3) electric cooperatives as defined in Section 3-119;
14        (4) the following natural gas cooperatives:
15            (A) residential natural gas cooperatives that are
16        not-for-profit corporations established for the
17        purpose of administering and operating, on a
18        cooperative basis, the furnishing of natural gas to
19        residences for the benefit of their members who are
20        residential consumers of natural gas. For entities
21        qualifying as residential natural gas cooperatives and
22        recognized by the Illinois Commerce Commission as
23        such, the State shall guarantee legally binding
24        contracts entered into by residential natural gas
25        cooperatives for the express purpose of acquiring
26        natural gas supplies for their members. The Illinois



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1        Commerce Commission shall establish rules and
2        regulations providing for such guarantees. The total
3        liability of the State in providing all such guarantees
4        shall not at any time exceed $1,000,000, nor shall the
5        State provide such a guarantee to a residential natural
6        gas cooperative for more than 3 consecutive years; and
7            (B) natural gas cooperatives that are
8        not-for-profit corporations operated for the purpose
9        of administering, on a cooperative basis, the
10        furnishing of natural gas for the benefit of their
11        members and that, prior to 90 days after the effective
12        date of this amendatory Act of the 94th General
13        Assembly, either had acquired or had entered into an
14        asset purchase agreement to acquire all or
15        substantially all of the operating assets of a public
16        utility or natural gas cooperative with the intention
17        of operating those assets as a natural gas cooperative;
18        (5) sewage disposal companies which provide sewage
19    disposal services on a mutual basis without establishing
20    rates or charges for services, but paying the operating
21    expenses by assessment upon the members of the company and
22    no others;
23        (6) (Blank);
24        (7) cogeneration facilities, small power production
25    facilities, and other qualifying facilities, as defined in
26    the Public Utility Regulatory Policies Act and regulations



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1    promulgated thereunder, except to the extent State
2    regulatory jurisdiction and action is required or
3    authorized by federal law, regulations, regulatory
4    decisions or the decisions of federal or State courts of
5    competent jurisdiction;
6        (8) the ownership or operation of a facility that sells
7    compressed natural gas at retail to the public for use only
8    as a motor vehicle fuel and the selling of compressed
9    natural gas at retail to the public for use only as a motor
10    vehicle fuel;
11        (9) alternative retail electric suppliers as defined
12    in Article XVI; and
13        (10) the Illinois Power Agency.
14    (c) An entity that owns or operates a facility that
15furnishes or sells electricity to the public for the purpose of
16charging electric vehicles is not and shall not be deemed a
17public utility, and is not subject to regulation as such under
18this Act. If, however, the entity that owns or operates such a
19facility is otherwise deemed a public utility under this Act,
20or is otherwise subject to regulation under this Act, then that
21entity is not exempt from and remains subject to the otherwise
22applicable provisions of this Act.
23    For purposes of this subsection, the term "electric
24vehicles" has the meaning ascribed to that term in Section 10
25of the Electric Vehicle Act.
26(Source: P.A. 94-738, eff. 5-4-06; 95-481, eff. 8-28-07.)



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1    (220 ILCS 5/16-102)
2    Sec. 16-102. Definitions. For the purposes of this Article
3the following terms shall be defined as set forth in this
5    "Alternative retail electric supplier" means every person,
6cooperative, corporation, municipal corporation, company,
7association, joint stock company or association, firm,
8partnership, individual, or other entity, their lessees,
9trustees, or receivers appointed by any court whatsoever, that
10offers electric power or energy for sale, lease or in exchange
11for other value received to one or more retail customers, or
12that engages in the delivery or furnishing of electric power or
13energy to such retail customers, and shall include, without
14limitation, resellers, aggregators and power marketers, but
15shall not include (i) electric utilities (or any agent of the
16electric utility to the extent the electric utility provides
17tariffed services to retail customers through that agent), (ii)
18any electric cooperative or municipal system as defined in
19Section 17-100 to the extent that the electric cooperative or
20municipal system is serving retail customers within any area in
21which it is or would be entitled to provide service under the
22law in effect immediately prior to the effective date of this
23amendatory Act of 1997, (iii) a public utility that is owned
24and operated by any public institution of higher education of
25this State, or a public utility that is owned by such public



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



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1party contractor, which shall be calculated based on the usage
2of, and the base rates or the contract rates applicable to, the
3third-party contractor in accordance with Section 16-102.
4    An entity that owns or operates a facility that furnishes
5or sells electricity to the public for the purpose of charging
6electric vehicles is not and shall not be deemed an alternative
7retail electric supplier, and is not subject to regulation as
8such under this Act. If, however, the entity that owns or
9operates such a facility is otherwise deemed an alternative
10retail electric supplier under this Act, or is otherwise
11subject to regulation under this Act, then that entity is not
12exempt from and remains subject to the otherwise applicable
13provisions of this Act.
14    For purposes of this Section, the term "electric vehicles"
15has the meaning ascribed to that term in Section 10 of the
16Electric Vehicle Act.
17    "Base rates" means the rates for those tariffed services
18that the electric utility is required to offer pursuant to
19subsection (a) of Section 16-103 and that were identified in a
20rate order for collection of the electric utility's base rate
21revenue requirement, excluding (i) separate automatic rate
22adjustment riders then in effect, (ii) special or negotiated
23contract rates, (iii) delivery services tariffs filed pursuant
24to Section 16-108, (iv) real-time pricing, or (v) tariffs that
25were in effect prior to October 1, 1996 and that based charges
26for services on an index or average of other utilities'



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1charges, but including (vi) any subsequent redesign of such
2rates for tariffed services that is authorized by the
3Commission after notice and hearing.
4    "Competitive service" includes (i) any service that has
5been declared to be competitive pursuant to Section 16-113 of
6this Act, (ii) contract service, and (iii) services, other than
7tariffed services, that are related to, but not necessary for,
8the provision of electric power and energy or delivery
10    "Contract service" means (1) services, including the
11provision of electric power and energy or other services, that
12are provided by mutual agreement between an electric utility
13and a retail customer that is located in the electric utility's
14service area, provided that, delivery services shall not be a
15contract service until such services are declared competitive
16pursuant to Section 16-113; and also means (2) the provision of
17electric power and energy by an electric utility to retail
18customers outside the electric utility's service area pursuant
19to Section 16-116. Provided, however, contract service does not
20include electric utility services provided pursuant to (i)
21contracts that retail customers are required to execute as a
22condition of receiving tariffed services, or (ii) special or
23negotiated rate contracts for electric utility services that
24were entered into between an electric utility and a retail
25customer prior to the effective date of this amendatory Act of
261997 and filed with the Commission.



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1    "Delivery services" means those services provided by the
2electric utility that are necessary in order for the
3transmission and distribution systems to function so that
4retail customers located in the electric utility's service area
5can receive electric power and energy from suppliers other than
6the electric utility, and shall include, without limitation,
7standard metering and billing services.
8    "Electric utility" means a public utility, as defined in
9Section 3-105 of this Act, that has a franchise, license,
10permit or right to furnish or sell electricity to retail
11customers within a service area.
12    "Mandatory transition period" means the period from the
13effective date of this amendatory Act of 1997 through January
141, 2007.
15    "Municipal system" shall have the meaning set forth in
16Section 17-100.
17    "Real-time pricing" means tariffed retail charges for
18delivered electric power and energy that vary hour-to-hour and
19are determined from wholesale market prices using a methodology
20approved by the Illinois Commerce Commission.
21    "Retail customer" means a single entity using electric
22power or energy at a single premises and that (A) either (i) is
23receiving or is eligible to receive tariffed services from an
24electric utility, or (ii) that is served by a municipal system
25or electric cooperative within any area in which the municipal
26system or electric cooperative is or would be entitled to



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1provide service under the law in effect immediately prior to
2the effective date of this amendatory Act of 1997, or (B) an
3entity which on the effective date of this Act was receiving
4electric service from a public utility and (i) was engaged in
5the practice of resale and redistribution of such electricity
6within a building prior to January 2, 1957, or (ii) was
7providing lighting services to tenants in a multi-occupancy
8building, but only to the extent such resale, redistribution or
9lighting service is authorized by the electric utility's
10tariffs that were on file with the Commission on the effective
11date of this Act.
12    "Service area" means (i) the geographic area within which
13an electric utility was lawfully entitled to provide electric
14power and energy to retail customers as of the effective date
15of this amendatory Act of 1997, and includes (ii) the location
16of any retail customer to which the electric utility was
17lawfully providing electric utility services on such effective
19    "Small commercial retail customer" means those
20nonresidential retail customers of an electric utility
21consuming 15,000 kilowatt-hours or less of electricity
22annually in its service area.
23    "Tariffed service" means services provided to retail
24customers by an electric utility as defined by its rates on
25file with the Commission pursuant to the provisions of Article
26IX of this Act, but shall not include competitive services.



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1    "Transition charge" means a charge expressed in cents per
2kilowatt-hour that is calculated for a customer or class of
3customers as follows for each year in which an electric utility
4is entitled to recover transition charges as provided in
5Section 16-108:
6        (1) the amount of revenue that an electric utility
7    would receive from the retail customer or customers if it
8    were serving such customers' electric power and energy
9    requirements as a tariffed service based on (A) all of the
10    customers' actual usage during the 3 years ending 90 days
11    prior to the date on which such customers were first
12    eligible for delivery services pursuant to Section 16-104,
13    and (B) on (i) the base rates in effect on October 1, 1996
14    (adjusted for the reductions required by subsection (b) of
15    Section 16-111, for any reduction resulting from a rate
16    decrease under Section 16-101(b), for any restatement of
17    base rates made in conjunction with an elimination of the
18    fuel adjustment clause pursuant to subsection (b), (d), or
19    (f) of Section 9-220 and for any removal of decommissioning
20    costs from base rates pursuant to Section 16-114) and any
21    separate automatic rate adjustment riders (other than a
22    decommissioning rate as defined in Section 16-114) under
23    which the customers were receiving or, had they been
24    customers, would have received electric power and energy
25    from the electric utility during the year immediately
26    preceding the date on which such customers were first



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1    eligible for delivery service pursuant to Section 16-104,
2    or (ii) to the extent applicable, any contract rates,
3    including contracts or rates for consolidated or
4    aggregated billing, under which such customers were
5    receiving electric power and energy from the electric
6    utility during such year;
7        (2) less the amount of revenue, other than revenue from
8    transition charges and decommissioning rates, that the
9    electric utility would receive from such retail customers
10    for delivery services provided by the electric utility,
11    assuming such customers were taking delivery services for
12    all of their usage, based on the delivery services tariffs
13    in effect during the year for which the transition charge
14    is being calculated and on the usage identified in
15    paragraph (1);
16        (3) less the market value for the electric power and
17    energy that the electric utility would have used to supply
18    all of such customers' electric power and energy
19    requirements, as a tariffed service, based on the usage
20    identified in paragraph (1), with such market value
21    determined in accordance with Section 16-112 of this Act;
22        (4) less the following amount which represents the
23    amount to be attributed to new revenue sources and cost
24    reductions by the electric utility through the end of the
25    period for which transition costs are recovered pursuant to
26    Section 16-108, referred to in this Article XVI as a



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1    "mitigation factor":
2            (A) for nonresidential retail customers, an amount
3        equal to the greater of (i) 0.5 cents per kilowatt-hour
4        during the period October 1, 1999 through December 31,
5        2004, 0.6 cents per kilowatt-hour in calendar year
6        2005, and 0.9 cents per kilowatt-hour in calendar year
7        2006, multiplied in each year by the usage identified
8        in paragraph (1), or (ii) an amount equal to the
9        following percentages of the amount produced by
10        applying the applicable base rates (adjusted as
11        described in subparagraph (1)(B)) or contract rate to
12        the usage identified in paragraph (1): 8% for the
13        period October 1, 1999 through December 31, 2002, 10%
14        in calendar years 2003 and 2004, 11% in calendar year
15        2005 and 12% in calendar year 2006; and
16            (B) for residential retail customers, an amount
17        equal to the following percentages of the amount
18        produced by applying the base rates in effect on
19        October 1, 1996 (adjusted as described in subparagraph
20        (1)(B)) to the usage identified in paragraph (1): (i)
21        6% from May 1, 2002 through December 31, 2002, (ii) 7%
22        in calendar years 2003 and 2004, (iii) 8% in calendar
23        year 2005, and (iv) 10% in calendar year 2006;
24        (5) divided by the usage of such customers identified
25    in paragraph (1),
26provided that the transition charge shall never be less than



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2    "Unbundled service" means a component or constituent part
3of a tariffed service which the electric utility subsequently
4offers separately to its customers.
5(Source: P.A. 94-977, eff. 6-30-06.)
6    Section 99. Effective date. This Act takes effect upon
7becoming law.