Full Text of HB5071 97th General Assembly
HB5071eng 97TH GENERAL ASSEMBLY |
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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 | | Sections 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
| 9 | | otherwise expressly provided in this Section, every | 10 | | corporation, company,
limited liability company, association, | 11 | | joint stock company or association,
firm, partnership or | 12 | | individual, their lessees, trustees, or receivers
appointed by | 13 | | any court whatsoever that owns, controls, operates or manages,
| 14 | | within this State, directly or indirectly, for public use, any | 15 | | plant, equipment
or property used or to be used for or in | 16 | | connection with, or owns or controls
any franchise, license, | 17 | | permit 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 | 15 | | furnishes or sells
electricity to the public for the purpose of | 16 | | charging electric vehicles
is not and shall not be deemed a | 17 | | public utility, and is not subject to
regulation as such under | 18 | | this Act. If, however, the entity that owns
or operates such a | 19 | | facility is otherwise deemed a public utility under this Act, | 20 | | or is otherwise
subject to regulation under this Act, then that | 21 | | entity is not exempt
from and remains subject to the otherwise | 22 | | applicable provisions of this Act. | 23 | | For purposes of this subsection, the term "electric | 24 | | vehicles" has the
meaning ascribed to that term in Section 10 | 25 | | of 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 | 3 | | the following terms shall be defined as set forth in
this | 4 | | Section.
| 5 | | "Alternative retail electric supplier" means every
person, | 6 | | cooperative, corporation, municipal corporation,
company, | 7 | | association, joint stock company or association,
firm, | 8 | | partnership, individual, or other entity, their lessees,
| 9 | | trustees, or receivers appointed by any court whatsoever, that
| 10 | | offers electric power or energy for sale, lease or in exchange
| 11 | | for other value received to one or more retail customers, or
| 12 | | that engages in the delivery or furnishing of electric power
or | 13 | | energy to such retail customers, and shall include, without
| 14 | | limitation, resellers, aggregators and power marketers, but
| 15 | | shall not include (i) electric utilities (or any agent of the
| 16 | | electric utility to the extent the electric utility provides
| 17 | | tariffed services to retail customers through that agent),
(ii) | 18 | | any electric cooperative or municipal system as defined
in | 19 | | Section 17-100 to the extent that the electric cooperative
or | 20 | | municipal system is serving retail customers within any
area in | 21 | | which it is or would be entitled to provide service
under the | 22 | | law in effect immediately prior to the effective
date of this | 23 | | amendatory Act of 1997, (iii) a public utility
that is owned | 24 | | and operated by any public institution of higher
education of | 25 | | this State, or a public utility that is owned by
such public |
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| 1 | | institution of higher education and operated by
any of its | 2 | | lessees or operating agents, within any area in
which it is or | 3 | | would be entitled to provide service under the
law in effect | 4 | | immediately prior to the effective date of this
amendatory Act | 5 | | of 1997, (iv) a retail customer to the extent
that customer | 6 | | obtains its electric power and energy from that customer's
own | 7 | | cogeneration or self-generation facilities, (v) an
entity that | 8 | | owns, operates, sells, or arranges for the installation of
a | 9 | | customer's own cogeneration or self-generation facilities, but | 10 | | only to
the extent the entity is engaged in
owning,
selling or | 11 | | arranging for the installation of such facility,
or operating | 12 | | the facility
on behalf of such customer, provided however that | 13 | | any such
third party owner or operator of a facility built | 14 | | after
January 1, 1999, complies with the labor provisions of | 15 | | Section 16-128(a) as
though
such third party were an | 16 | | alternative retail
electric supplier,
or (vi) an industrial or
| 17 | | manufacturing customer that owns
its own
distribution | 18 | | facilities, to the extent that the customer provides service | 19 | | from
that distribution system to a third-party contractor | 20 | | located on the customer's
premises that is integrally and | 21 | | predominantly engaged in the customer's
industrial or
| 22 | | manufacturing process; provided, that if the industrial or | 23 | | manufacturing
customer has elected delivery services, the | 24 | | customer shall pay transition
charges applicable to the | 25 | | electric power and energy consumed by the third-party
| 26 | | contractor unless such charges are otherwise paid by the third |
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| 1 | | party
contractor, which shall be calculated based on the usage | 2 | | of, and the base rates
or the contract rates applicable to, the | 3 | | third-party contractor in accordance
with Section 16-102.
| 4 | | An entity that owns or operates a facility that furnishes | 5 | | or sells electricity to the public for the purpose of charging | 6 | | electric vehicles is not and shall not be deemed an alternative | 7 | | retail electric supplier, and is not subject to regulation as | 8 | | such under this Act. If, however, the entity that owns or | 9 | | operates such a facility is otherwise deemed an alternative | 10 | | retail electric supplier under this Act, or is otherwise | 11 | | subject to regulation under this Act, then that entity is not | 12 | | exempt from and remains subject to the otherwise applicable | 13 | | provisions of this Act. | 14 | | For purposes of this Section, the term "electric vehicles" | 15 | | has the
meaning ascribed to that term in Section 10 of the | 16 | | Electric Vehicle
Act. | 17 | | "Base rates" means the rates for those tariffed services | 18 | | that the electric
utility is required to offer pursuant to | 19 | | subsection (a) of Section 16-103 and
that were identified in a | 20 | | rate order for collection of the electric
utility's base rate | 21 | | revenue requirement, excluding (i) separate automatic
rate | 22 | | adjustment riders then in effect, (ii) special or negotiated | 23 | | contract
rates, (iii) delivery services tariffs filed pursuant | 24 | | to Section 16-108, (iv)
real-time pricing, or (v) tariffs that | 25 | | were in effect prior to October 1, 1996
and that based charges | 26 | | for services on an index or average of other utilities'
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| 1 | | charges, but including (vi) any subsequent redesign of such | 2 | | rates for
tariffed
services that is authorized by the | 3 | | Commission after notice and hearing.
| 4 | | "Competitive service" includes (i) any service that
has | 5 | | been declared to be competitive pursuant to Section
16-113 of | 6 | | this Act, (ii) contract service, and (iii) services,
other than | 7 | | tariffed services, that are related to, but not
necessary for, | 8 | | the provision of electric power and energy or delivery | 9 | | services.
| 10 | | "Contract service" means (1) services, including the
| 11 | | provision of electric power and energy or other services, that
| 12 | | are provided by mutual agreement between an electric utility
| 13 | | and a retail customer that is located in the electric
utility's | 14 | | service area, provided that, delivery services shall
not be a | 15 | | contract service until such services are declared
competitive | 16 | | pursuant to Section 16-113; and also means (2) the
provision of | 17 | | electric power and energy by an electric utility
to retail | 18 | | customers outside the electric utility's service
area pursuant | 19 | | to Section 16-116. Provided, however, contract
service does not | 20 | | include electric utility services provided
pursuant to (i) | 21 | | contracts that retail customers are required
to execute as a | 22 | | condition of receiving tariffed services, or
(ii) special or | 23 | | negotiated rate contracts for electric utility
services that | 24 | | were entered into between an electric utility
and a retail | 25 | | customer prior to the effective date of this
amendatory Act of | 26 | | 1997 and filed with the Commission.
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| 1 | | "Delivery services" means those services provided by the
| 2 | | electric utility that are necessary in order for the
| 3 | | transmission and distribution systems to function so that
| 4 | | retail customers located in the electric utility's service
area | 5 | | can receive electric power and energy from suppliers
other than | 6 | | the electric utility, and shall include, without
limitation, | 7 | | standard metering and billing services.
| 8 | | "Electric utility" means a public utility, as defined in
| 9 | | Section 3-105 of this Act, that has a franchise, license,
| 10 | | permit or right to furnish or sell electricity to retail
| 11 | | customers within a service area.
| 12 | | "Mandatory transition period" means the period from the
| 13 | | effective date of this amendatory Act of 1997 through January
| 14 | | 1, 2007.
| 15 | | "Municipal system" shall have the meaning set forth in
| 16 | | Section 17-100.
| 17 | | "Real-time pricing" means tariffed retail charges for | 18 | | delivered electric
power and energy that vary
hour-to-hour and | 19 | | are determined from wholesale market prices using a methodology | 20 | | approved by the Illinois Commerce Commission.
| 21 | | "Retail customer" means a single entity using electric
| 22 | | power or energy at a single premises and that (A) either (i)
is | 23 | | receiving or is eligible to receive tariffed services from
an | 24 | | electric utility, or (ii) that is served by a municipal system | 25 | | or electric
cooperative within any area in which the
municipal | 26 | | system or electric cooperative is or would be
entitled to |
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| 1 | | provide service under the law in effect
immediately prior to | 2 | | the effective date of this amendatory Act
of 1997, or (B) an | 3 | | entity which on the effective date of this
Act was receiving | 4 | | electric service from a public utility and
(i) was engaged in | 5 | | the practice of resale and redistribution
of such electricity | 6 | | within a building prior to January 2,
1957, or (ii) was | 7 | | providing lighting services to tenants in a
multi-occupancy | 8 | | building, but only to the extent such resale,
redistribution or | 9 | | lighting service is authorized by the
electric utility's | 10 | | tariffs that were on file with the
Commission on the effective | 11 | | date of this Act.
| 12 | | "Service area" means (i) the geographic area within which
| 13 | | an electric utility was lawfully entitled to provide electric
| 14 | | power and energy to retail customers as of the effective date
| 15 | | of this amendatory Act of 1997, and includes (ii) the location
| 16 | | of any retail customer to which the electric utility was
| 17 | | lawfully providing electric utility services on such effective
| 18 | | date.
| 19 | | "Small commercial retail customer" means those
| 20 | | nonresidential retail customers of an electric utility
| 21 | | consuming 15,000 kilowatt-hours or less of electricity
| 22 | | annually in its service area.
| 23 | | "Tariffed service" means services provided to retail
| 24 | | customers by an electric utility as defined by its rates on
| 25 | | file with the Commission pursuant to the provisions of Article
| 26 | | IX of this Act, but shall not include competitive services.
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| 1 | | "Transition charge" means a charge expressed in cents
per | 2 | | kilowatt-hour that is calculated for a customer or class
of | 3 | | customers as follows for each year in which an electric
utility | 4 | | is entitled to recover transition charges as provided
in | 5 | | Section 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),
| 26 | | provided that the transition charge shall never be less than
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| 1 | | zero.
| 2 | | "Unbundled service" means a component or constituent part
| 3 | | of a tariffed service which the electric utility subsequently
| 4 | | offers separately to its customers.
| 5 | | (Source: P.A. 94-977, eff. 6-30-06.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.
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