Full Text of SB3866 102nd General Assembly
SB3866ham003 102ND GENERAL ASSEMBLY | Rep. Lawrence Walsh, Jr. Filed: 4/5/2022
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| 1 | | AMENDMENT TO SENATE BILL 3866
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3866 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Energy Transition Act is amended by | 5 | | changing Section 5-40 as follows: | 6 | | (20 ILCS 730/5-40) | 7 | | (Section scheduled to be repealed on September 15, 2045)
| 8 | | Sec. 5-40. Illinois Climate Works Preapprenticeship | 9 | | Program. | 10 | | (a) Subject to appropriation, the Department shall | 11 | | develop, and through Regional Administrators administer, the | 12 | | Illinois Climate Works Preapprenticeship Program. The goal of | 13 | | the Illinois Climate Works Preapprenticeship Program is to | 14 | | create a network of hubs throughout the State that will | 15 | | recruit, prescreen, and provide preapprenticeship skills | 16 | | training, for which participants may attend free of charge and |
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| 1 | | receive a stipend, to create a qualified, diverse pipeline of | 2 | | workers who are prepared for careers in the construction and | 3 | | building trades and clean energy jobs opportunities therein. | 4 | | Upon completion of the Illinois Climate Works | 5 | | Preapprenticeship Program, the candidates will be connected to | 6 | | and prepared to successfully complete an apprenticeship | 7 | | program. | 8 | | (b) Each Climate Works Hub that receives funding from the | 9 | | Energy Transition Assistance Fund shall provide an annual | 10 | | report to the Illinois Works Review Panel by April 1 of each | 11 | | calendar year. The annual report shall include the following | 12 | | information: | 13 | | (1) a description of the Climate Works Hub's | 14 | | recruitment, screening, and training efforts, including a | 15 | | description of training related to construction and | 16 | | building trades opportunities in clean energy jobs; | 17 | | (2) the number of individuals who apply to, | 18 | | participate in, and complete the Climate Works Hub's | 19 | | program, broken down by race, gender, age, and veteran | 20 | | status; | 21 | | (3) the number of the individuals referenced in | 22 | | paragraph (2) of this subsection who are initially | 23 | | accepted and placed into apprenticeship programs in the | 24 | | construction and building trades; and | 25 | | (4) the number of individuals referenced in paragraph | 26 | | (2) of this subsection who remain in apprenticeship |
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| 1 | | programs in the construction and building trades or have | 2 | | become journeymen one calendar year after their placement, | 3 | | as referenced in paragraph (3) of this subsection. | 4 | | (c) Subject to appropriation, the Department shall provide | 5 | | funding to 3 Climate Works Hubs throughout the State, | 6 | | including one to the Illinois Department of Transportation | 7 | | Region 1, one to the Illinois Department of Transportation | 8 | | Regions 2 and 3, and one to the Illinois Department of | 9 | | Transportation Regions 4 and 5. Climate Works Hubs shall be | 10 | | awarded grants in multi-year increments not to exceed 36 | 11 | | months. Each grant shall come with a one year initial term, | 12 | | with the Department renewing each year for 2 additional years | 13 | | unless the grantee either declines to continue or fails to | 14 | | meet reasonable performance measures that consider | 15 | | apprenticeship programs timeframes. The Department shall | 16 | | initially select a community-based provider in each region and | 17 | | shall subsequently select a community-based provider in each | 18 | | region every 3 years. The Department may take into account | 19 | | experience and performance as a previous grantee of the | 20 | | Climate Works Hub as part of the selection criteria for | 21 | | subsequent years. | 22 | | (d) Each Climate Works Hub that receives funding from the | 23 | | Energy Transition Assistance Fund shall: The Climate Works | 24 | | Hubs shall recruit, prescreen, and provide preapprenticeship | 25 | | training to equity investment eligible persons. This training | 26 | | shall include information related to opportunities and |
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| 1 | | certifications relevant to clean energy jobs in the | 2 | | construction and building trades. | 3 | | (1) recruit, prescreen, and provide preapprenticeship | 4 | | training to equity investment eligible persons; | 5 | | (2) provide training information related to | 6 | | opportunities and certifications relevant to clean energy | 7 | | jobs in the construction and building trades; and | 8 | | (3) provide preapprentices with stipends they receive | 9 | | that may vary depending on the occupation the individual | 10 | | is training for. | 11 | | (d-5) Priority shall be given to Climate Works Hubs that | 12 | | have an agreement with North American Building Trades Unions | 13 | | (NABTU) to utilize the Multi-Craft Core Curriculum or | 14 | | successor curriculums. | 15 | | (e) Funding for the Program is subject to appropriation | 16 | | from the Energy Transition Assistance Fund. | 17 | | (f) The Department shall adopt any rules deemed necessary | 18 | | to implement this Section.
| 19 | | (Source: P.A. 102-662, eff. 9-15-21.) | 20 | | Section 10. The Public Utilities Act is amended by | 21 | | changing Sections 5-117, 8-218, 16-107.6, 16-108.5, and | 22 | | 16-108.30 and by adding Section 16-111.11 as follows: | 23 | | (220 ILCS 5/5-117) | 24 | | Sec. 5-117. Supplier diversity goals. |
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| 1 | | (a) The public policy of this State is to collaboratively | 2 | | work with companies that serve Illinois residents to improve | 3 | | their supplier diversity in a non-antagonistic manner. | 4 | | (b) The Commission shall require all gas, electric, and | 5 | | water utilities companies with at least 100,000 customers | 6 | | under its authority , as well as suppliers of wind energy, | 7 | | solar energy,
hydroelectricity, nuclear energy, and any other | 8 | | supplier of
energy within this State, to submit an annual | 9 | | report by April 15, 2015 and every April 15 thereafter, in a | 10 | | searchable Adobe PDF format, on all procurement goals and | 11 | | actual spending for female-owned, minority-owned, | 12 | | veteran-owned, and small business enterprises in the previous | 13 | | calendar year. These goals shall be expressed as a percentage | 14 | | of the total work performed by the entity submitting the | 15 | | report, and the actual spending for all female-owned, | 16 | | minority-owned, veteran-owned, and small business enterprises | 17 | | shall also be expressed as a percentage of the total work | 18 | | performed by the entity submitting the report. | 19 | | (c) Each participating company in its annual report shall | 20 | | include the following information: | 21 | | (1) an explanation of the plan for the next year to | 22 | | increase participation; | 23 | | (2) an explanation of the plan to increase the goals; | 24 | | (3) the areas of procurement each company shall be | 25 | | actively seeking more participation in the next year; | 26 | | (3.5) a buying plan for the specific goods and |
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| 1 | | services the company intends to buy in the next 6 to 18 | 2 | | months, that is either (i) organized by and reported at | 3 | | the level of each applicable North American Industry | 4 | | Classification System code, (ii) provided using a method, | 5 | | system, or description similar to the North American | 6 | | Industry Classification System, or (iii) provided using | 7 | | the major categories of goods and related services | 8 | | utilized in the company's procurement system, and | 9 | | including any procurement codes used by the company, to | 10 | | assist entrepreneurs and diverse companies to understand | 11 | | upcoming opportunities to work with the company, however, | 12 | | a utility shall not be required to include | 13 | | commercially-sensitive data, nonpublic procurement | 14 | | information, or other information that could compromise a | 15 | | utility's ability to negotiate the most advantageous price | 16 | | or terms; | 17 | | (4) an outline of the plan to alert and encourage | 18 | | potential vendors in that area to seek business from the | 19 | | company; | 20 | | (5) an explanation of the challenges faced in finding | 21 | | quality vendors and offer any suggestions for what the | 22 | | Commission could do to be helpful to identify those | 23 | | vendors; | 24 | | (6) a list of the certifications the company | 25 | | recognizes; | 26 | | (7) the point of contact for any potential vendor who |
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| 1 | | wishes to do business with the company and explain the | 2 | | process for a vendor to enroll with the company as a | 3 | | minority-owned, women-owned, or veteran-owned company; and | 4 | | (8) any particular success stories to encourage other | 5 | | companies to emulate best practices. | 6 | | (d) Each annual report shall include as much | 7 | | State-specific data as possible. If the submitting entity does | 8 | | not submit State-specific data, then the company shall include | 9 | | any national data it does have and explain why it could not | 10 | | submit State-specific data and how it intends to do so in | 11 | | future reports, if possible. | 12 | | (e) Each annual report shall include the rules, | 13 | | regulations, and definitions used for the procurement goals in | 14 | | the company's annual report. | 15 | | (f) The Commission and all participating entities shall | 16 | | hold an annual workshop open to the public in 2015 and every | 17 | | year thereafter on the state of supplier diversity to | 18 | | collaboratively seek solutions to structural impediments to | 19 | | achieving stated goals, including testimony from each | 20 | | participating entity as well as subject matter experts and | 21 | | advocates. The Commission shall publish a database on its | 22 | | website of the point of contact for each participating entity | 23 | | for supplier diversity, along with a list of certifications | 24 | | each company recognizes from the information submitted in each | 25 | | annual report. The Commission shall publish each annual report | 26 | | on its website and shall maintain each annual report for at |
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| 1 | | least 5 years.
| 2 | | (Source: P.A. 102-558, eff. 8-20-21; 102-662, eff. 9-15-21; | 3 | | 102-673, eff. 11-30-21.) | 4 | | (220 ILCS 5/8-218) | 5 | | Sec. 8-218. Utility-scale pilot projects. | 6 | | (a) Electric utilities serving greater than 500,000 | 7 | | customers but less than 3,000,000 customers may propose, plan | 8 | | for, construct, install, control, own, manage, or operate up | 9 | | to 2 pilot projects consisting of utility-scale photovoltaic | 10 | | energy generation facilities. A pilot project may consist of | 11 | | photovoltaic energy generation facilities located on one or | 12 | | more sites and may be installed or constructed in phases. | 13 | | Energy storage facilities that are planned for, constructed, | 14 | | installed, controlled, owned, managed, or operated may be | 15 | | constructed in connection with the photovoltaic electricity | 16 | | generation pilot projects. | 17 | | (b) Pilot projects shall be sited in equity investment | 18 | | eligible communities in or near the towns of Peoria and East | 19 | | St. Louis and must result in economic benefits for the members | 20 | | of the communities in which the project will be located. The | 21 | | amount paid per pilot project with or without energy storage | 22 | | facilities cannot exceed $20,000,000. The electric utility's | 23 | | costs of planning for, constructing, installing, controlling, | 24 | | owning, managing, or operating the photovoltaic electricity | 25 | | generation facilities and energy storage facilities may be |
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| 1 | | recovered, on a kilowatt hour basis, via an automatic | 2 | | adjustment clause tariff applicable to all retail customers, | 3 | | with the tariff to be approved by the Commission after | 4 | | opportunity for review, and with an annual reconciliation | 5 | | component; and for purposes of cost recovery, the photovoltaic | 6 | | electricity production facilities may be treated as regulatory | 7 | | assets, using the same ratemaking treatment in paragraph (1) | 8 | | of subsection (h) of Section 16-107.6 of this Act, provided: | 9 | | (1) the Commission shall have the authority to determine the | 10 | | reasonableness of the costs of the facilities, and (2) any | 11 | | monetary value of power and energy from the facilities shall | 12 | | be credited against the delivery services revenue requirement. | 13 | | (c) Any electric utility seeking to propose, plan for, | 14 | | construct, install, control, own, manage, or operate a pilot | 15 | | project pursuant to this Section must commit to using a | 16 | | diverse and equitable workforce and a diverse set of | 17 | | contractors, including minority-owned businesses, | 18 | | disadvantaged businesses, trade unions, graduates of any | 19 | | workforce training programs established by this amendatory Act | 20 | | of the 102nd General Assembly, and small businesses. An | 21 | | electric utility must comply with the equity commitment | 22 | | requirements in subsection (c-10) of Section 1-75 of the | 23 | | Illinois Power Agency Act. The electric utility must certify | 24 | | that not less than the prevailing wage will be paid to | 25 | | employees engaged in construction activities associated with | 26 | | the pilot project. The electric utility must file a project |
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| 1 | | labor agreement, as defined in the Illinois Power Agency Act, | 2 | | with the Commission prior to constructing, installing, | 3 | | controlling, or owning a pilot project authorized by this | 4 | | Section.
| 5 | | (Source: P.A. 102-662, eff. 9-15-21.) | 6 | | (220 ILCS 5/16-107.6) | 7 | | Sec. 16-107.6. Distributed generation rebate. | 8 | | (a) In this Section: | 9 | | "Additive services" means the services that distributed | 10 | | energy resources provide to the energy system and society that | 11 | | are not (1) already included in the base rebates for | 12 | | system-wide grid services; or (2) otherwise already | 13 | | compensated. Additive services may reflect, but shall not be | 14 | | limited to, any geographic, time-based, performance-based, and | 15 | | other benefits of distributed energy resources, as well as the | 16 | | present and future technological capabilities of distributed | 17 | | energy resources and present and future grid needs. | 18 | | "Distributed energy resource" means a wide range of | 19 | | technologies that are located on the customer side of the | 20 | | customer's electric meter, including, but not limited to, | 21 | | distributed generation, energy storage, electric vehicles, and | 22 | | demand response technologies. | 23 | | "Energy storage system" means commercially available | 24 | | technology that is capable of absorbing energy and storing it | 25 | | for a period of time for use at a later time, including, but |
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| 1 | | not limited to, electrochemical, thermal, and | 2 | | electromechanical technologies, and may be interconnected | 3 | | behind the customer's meter or interconnected behind its own | 4 | | meter. | 5 | | "Smart inverter" means a device that converts direct | 6 | | current
into alternating current and meets the IEEE 1547-2018 | 7 | | equipment standards. Until devices that meet the IEEE | 8 | | 1547-2018 standard are available, devices that meet the UL | 9 | | 1741 SA standard are acceptable. | 10 | | "Subscriber" has the meaning set forth in Section 1-10 of | 11 | | the Illinois Power Agency Act. | 12 | | "Subscription" has the meaning set forth in Section 1-10 | 13 | | of the Illinois Power Agency Act. | 14 | | "System-wide grid services" means the benefits that a | 15 | | distributed energy resource provides to the distribution grid | 16 | | for a period of no less than 25 years. System-wide grid | 17 | | services do not vary by location, time, or the performance | 18 | | characteristics of the distributed energy resource. | 19 | | System-wide grid services include, but are not limited to, | 20 | | avoided or deferred distribution capacity costs, resilience | 21 | | and reliability benefits, avoided or deferred distribution | 22 | | operation and maintenance costs, distribution voltage and | 23 | | power quality benefits, and line loss reductions. | 24 | | "Threshold date" means December 31, 2024 or the date on | 25 | | which the utility's tariff or tariffs setting the new | 26 | | compensation values established under subsection (e) take |
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| 1 | | effect, whichever is later. | 2 | | (b) An electric utility that serves more than 200,000 | 3 | | customers in the State shall file a petition with the | 4 | | Commission requesting approval of the utility's tariff to | 5 | | provide a rebate to the owner or operator of distributed | 6 | | generation, including third-party owned systems, that meets | 7 | | the following criteria: | 8 | | (1) has a nameplate generating capacity no greater | 9 | | than 5,000 kilowatts and is primarily used to offset a | 10 | | customer's electricity load; | 11 | | (2) is located on the customer's side of the billing | 12 | | meter and for the customer's own use; | 13 | | (3) is interconnected to electric distribution | 14 | | facilities owned by the electric utility under rules | 15 | | adopted by the Commission by means of the inverter or | 16 | | smart inverter required by this Section, as applicable. | 17 | | For purposes of this Section, "distributed generation" | 18 | | shall satisfy the definition of distributed renewable energy | 19 | | generation device set forth in Section 1-10 of the Illinois | 20 | | Power Agency Act to the extent such definition is consistent | 21 | | with the requirements of this Section. | 22 | | In addition, any new photovoltaic distributed generation | 23 | | that is installed after June 1, 2017 (the effective date of | 24 | | Public Act 99-906) must be installed by a qualified person, as | 25 | | defined by subsection (i) of Section 1-56 of the Illinois | 26 | | Power Agency Act. |
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| 1 | | The tariff shall include a base rebate that compensates | 2 | | distributed generation for the system-wide grid services | 3 | | associated with distributed generation and, after the | 4 | | proceeding described in subsection (e) of this Section, an | 5 | | additional payment or payments for the additive services. The | 6 | | tariff shall provide that the smart inverter associated with | 7 | | the distributed generation shall provide autonomous response | 8 | | to grid conditions through its default settings as approved by | 9 | | the Commission. Default settings may not be changed after the | 10 | | execution of the interconnection agreement except by mutual | 11 | | agreement between the utility and the owner or operator of the | 12 | | distributed generation. Nothing in this Section shall negate | 13 | | or supersede Institute of Electrical and Electronics Engineers | 14 | | equipment standards or other similar standards or | 15 | | requirements. The tariff shall not limit the ability of the | 16 | | smart inverter or other distributed energy resource to provide | 17 | | wholesale market products such as regulation, demand response, | 18 | | or other services, or limit the ability of the owner of the | 19 | | smart inverter or the other distributed energy resource to | 20 | | receive compensation for providing those wholesale market | 21 | | products or services. | 22 | | (b-5) Within 30 days after the effective date of this | 23 | | amendatory Act of the 102nd General Assembly, each electric | 24 | | public utility with 3,000,000 or more retail customers shall | 25 | | file a tariff with the Commission that further compensates any | 26 | | retail customer that installs or has installed photovoltaic |
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| 1 | | facilities paired with energy storage facilities on or | 2 | | adjacent to its premises for the benefits the facilities | 3 | | provide to the distribution grid. The tariff shall provide | 4 | | that, in addition to the other rebates identified in this | 5 | | Section, the electric utility shall rebate to such retail | 6 | | customer (i) the previously incurred and future costs of | 7 | | installing interconnection facilities and related | 8 | | infrastructure to enable full participation in the PJM | 9 | | Interconnection, LLC or its successor organization frequency | 10 | | regulation market; and (ii) all wholesale demand charges | 11 | | incurred after the effective date of this amendatory Act of | 12 | | the 102nd General Assembly. The Commission shall approve, or | 13 | | approve with modification, the tariff within 120 days after | 14 | | the utility's filing. | 15 | | (c) The proposed tariff authorized by subsection (b) of | 16 | | this Section shall include the following participation terms | 17 | | for rebates to be applied under this Section for distributed | 18 | | generation that satisfies the criteria set forth in subsection | 19 | | (b) of this Section: | 20 | | (1) The owner or operator of distributed generation | 21 | | that services customers not eligible for net metering | 22 | | under subsection (d), (d-5), or (e) of Section 16-107.5 of | 23 | | this Act may apply for a rebate as provided for in this | 24 | | Section. Until the threshold date, the value of the rebate | 25 | | shall be $250 per kilowatt of nameplate generating | 26 | | capacity, measured as nominal DC power output, of that |
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| 1 | | customer's distributed generation. To the extent the | 2 | | distributed generation also has an associated energy | 3 | | storage, then the energy storage system shall be | 4 | | separately compensated with a base rebate of $250 per | 5 | | kilowatt-hour of nameplate capacity. Any distributed | 6 | | generation device that is compensated for storage in this | 7 | | subsection (1) before the threshold date shall participate | 8 | | in one or more programs determined through the Multi-Year | 9 | | Integrated Grid Planning process that are designed to meet | 10 | | peak reduction and flexibility. After the threshold date, | 11 | | the value of the base rebate and additional compensation | 12 | | for any additive services shall be as determined by the | 13 | | Commission in the proceeding described in subsection (e) | 14 | | of this Section, provided that the value of the base | 15 | | rebate for system-wide grid services shall not be lower | 16 | | than $250 per kilowatt of nameplate generating capacity of | 17 | | distributed generation or community renewable generation | 18 | | project. | 19 | | (2) The owner or operator of distributed generation | 20 | | that, before the threshold date, would have been eligible | 21 | | for net metering under subsection (d), (d-5), or (e) of | 22 | | Section 16-107.5 of this Act and that has not previously | 23 | | received a distributed generation rebate, may apply for a | 24 | | rebate as provided for in this Section. Until the | 25 | | threshold date, the value of the base rebate shall be $300 | 26 | | per kilowatt of nameplate generating capacity, measured as |
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| 1 | | nominal DC power output, of the distributed generation. | 2 | | The owner or operator of distributed generation that, | 3 | | before the threshold date, is eligible for net metering | 4 | | under subsection (d), (d-5), or (e) of Section 16-107.5 of | 5 | | this Act may apply for a base rebate for an energy storage | 6 | | device that uses the same smart inverter as the | 7 | | distributed generation, regardless of whether the | 8 | | distributed generation applies for a rebate for the | 9 | | distributed generation device. The energy storage system | 10 | | shall be separately compensated at a base payment of $300 | 11 | | per kilowatt-hour of nameplate capacity. Any distributed | 12 | | generation device that is compensated for storage in this | 13 | | subsection (2) before the threshold date shall participate | 14 | | in a peak time rebate program, hourly pricing program, or | 15 | | time-of-use rate program offered by the applicable | 16 | | electric utility. After the threshold date, the value of | 17 | | the base rebate and additional compensation for any | 18 | | additive services shall be as determined by the Commission | 19 | | in the proceeding described in subsection (e) of this | 20 | | Section, provided that, prior to December 31, 2029, the | 21 | | value of the base rebate for system-wide services shall | 22 | | not be lower than $300 per kilowatt of nameplate | 23 | | generating capacity of distributed generation, after which | 24 | | it shall not be lower than $250 per kilowatt of nameplate | 25 | | capacity. | 26 | | (3) Upon approval of a rebate application submitted |
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| 1 | | under this subsection (c), the retail customer shall no | 2 | | longer be entitled to receive any delivery service credits | 3 | | for the excess electricity generated by its facility and | 4 | | shall be subject to the provisions of subsection (n) of | 5 | | Section 16-107.5 of this Act unless the owner or operator | 6 | | receives a rebate only for an energy storage device and | 7 | | not for the distributed generation device . | 8 | | (4) To be eligible for a rebate described in this | 9 | | subsection (c), the owner or operator of the distributed | 10 | | generation must have a smart inverter installed and in | 11 | | operation on the distributed generation. | 12 | | (d) The Commission shall review the proposed tariff | 13 | | authorized by subsection (b) of this Section and may make | 14 | | changes to the tariff that are consistent with this Section | 15 | | and with the Commission's authority under Article IX of this | 16 | | Act, subject to notice and hearing. Following notice and | 17 | | hearing, the Commission shall issue an order approving, or | 18 | | approving with modification, such tariff no later than 240 | 19 | | days after the utility files its tariff. Upon the effective | 20 | | date of this amendatory Act of the 102nd General Assembly, an | 21 | | electric utility shall file a petition with the Commission to | 22 | | amend and update any existing tariffs to comply with | 23 | | subsections (b) and (c). | 24 | | (e) By no later than June 30, 2023, the Commission shall | 25 | | open an independent, statewide investigation into the value | 26 | | of, and compensation for, distributed energy resources. The |
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| 1 | | Commission shall conduct the investigation, but may arrange | 2 | | for experts or consultants independent of the utilities and | 3 | | selected by the Commission to assist with the investigation. | 4 | | The cost of the investigation shall be shared by the utilities | 5 | | filing tariffs under subsection (b) of this Section but may be | 6 | | recovered as an expense through normal ratemaking procedures. | 7 | | (1) The Commission shall ensure that the investigation | 8 | | includes, at minimum, diverse sets of stakeholders; a | 9 | | review of best practices in calculating the value of | 10 | | distributed energy resource benefits; a review of the full | 11 | | value of the distributed energy resources and the manner | 12 | | in which each component of that value is or is not | 13 | | otherwise compensated; and assessments of how the value of | 14 | | distributed energy resources may evolve based on the | 15 | | present and future technological capabilities of | 16 | | distributed energy resources and based on present and | 17 | | future grid needs. | 18 | | (2) The Commission's final order concluding this | 19 | | investigation shall establish an annual process and | 20 | | formula for the compensation of distributed generation and | 21 | | energy storage systems, and an initial set of inputs for | 22 | | that formula. The Commission's final order concluding this | 23 | | investigation shall establish base rebates that compensate | 24 | | distributed generation, community renewable generation | 25 | | projects and energy storage systems for the system-wide | 26 | | grid services that they provide. Those base rebate values |
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| 1 | | shall be consistent across the state, and shall not vary | 2 | | by customer, customer class, customer location, or any | 3 | | other variable. With respect to rebates for distributed | 4 | | generation or community renewable generation projects, | 5 | | that rebate shall not be lower than $250 per kilowatt of | 6 | | nameplate generating capacity of the distributed | 7 | | generation or community renewable generation project. The | 8 | | Commission's final order concluding this proceeding shall | 9 | | also direct the utilities to update the formula, on an | 10 | | annual basis, with inputs derived from their integrated | 11 | | grid plans developed pursuant to Section 16-105.17. The | 12 | | base rebate shall be updated annually based on the annual | 13 | | updates to the formula inputs, but, with respect to | 14 | | rebates for distributed generation or community renewable | 15 | | generation projects, shall be no lower than $250 per | 16 | | kilowatt of nameplate generating capacity of the | 17 | | distributed generation or community renewable generation | 18 | | project. | 19 | | (3) The Commission shall also determine, as a part of | 20 | | its investigation under this subsection, whether | 21 | | distributed energy resources can provide any additive | 22 | | services. Those additive services may include services | 23 | | that are provided through utility-controlled responses to | 24 | | grid conditions. If the Commission determines that | 25 | | distributed energy resources can provide additive grid | 26 | | services, the Commission shall determine the terms and |
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| 1 | | conditions for the operation and compensation of those | 2 | | services. That compensation shall be above and beyond the | 3 | | base rebate that the distributed energy generation, | 4 | | community renewable generation project and energy storage | 5 | | system receives. Compensation for additive services may | 6 | | vary by location, time, performance characteristics, | 7 | | technology types, or other variables. | 8 | | (4) The Commission shall ensure that compensation for | 9 | | distributed energy resources, including base rebates and | 10 | | any payments for additive services, shall reflect all | 11 | | reasonably known and measurable values of the distributed | 12 | | generation over its full expected useful life. | 13 | | Compensation for additive services shall reflect, but | 14 | | shall not be limited to, any geographic, time-based, | 15 | | performance-based, and other benefits of distributed | 16 | | generation, as well as the present and future | 17 | | technological capabilities of distributed energy resources | 18 | | and present and future grid needs. | 19 | | (5) The Commission shall consider the electric | 20 | | utility's integrated grid plan developed pursuant to | 21 | | Section 16-105.17 of this Act to help identify the value | 22 | | of distributed energy resources for the purpose of | 23 | | calculating the compensation described in this subsection. | 24 | | (6) The Commission shall determine additional | 25 | | compensation for distributed energy resources that creates | 26 | | savings and value on the distribution system by being |
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| 1 | | co-located or in close proximity to electric vehicle | 2 | | charging infrastructure in use by medium-duty and | 3 | | heavy-duty vehicles, primarily serving environmental | 4 | | justice communities, as outlined in the utility integrated | 5 | | grid planning process under Section 16-105.17 of this Act. | 6 | | No later than 60 days after the Commission enters its | 7 | | final order under this subsection (e), each utility shall file | 8 | | its updated tariff or tariffs in compliance with the order, | 9 | | including new tariffs for the recovery of costs incurred under | 10 | | this subsection (e) that shall provide for volumetric-based | 11 | | cost recovery, and the Commission shall approve, or approve | 12 | | with modification, the tariff or tariffs within 240 days after | 13 | | the utility's filing. | 14 | | (f) Notwithstanding any provision of this Act to the | 15 | | contrary, the owner or operator of a community renewable | 16 | | generation project as defined in Section 1-10 of the Illinois | 17 | | Power Agency Act shall also be eligible to apply for the rebate | 18 | | described in this Section. The owner or operator of the | 19 | | community renewable generation project may apply for a rebate | 20 | | only if the owner or operator, or previous owner or operator, | 21 | | of the community renewable generation project has not already | 22 | | submitted an application, and, regardless of whether the | 23 | | subscriber is a residential or non-residential customer, may | 24 | | be allowed the amount identified in paragraph (1) of | 25 | | subsection (c) applicable on the date that the application is | 26 | | submitted. |
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| 1 | | (g) The owner of the distributed generation or community | 2 | | renewable generation project may apply for the rebate or | 3 | | rebates approved under this Section at the time of execution | 4 | | of an interconnection agreement with the distribution utility | 5 | | and shall receive the value available at that time of | 6 | | execution of the interconnection agreement, provided the | 7 | | project reaches mechanical completion within 24 months after | 8 | | execution of the interconnection agreement. If the project has | 9 | | not reached mechanical completion within 24 months after | 10 | | execution, the owner may reapply for the rebate or rebates | 11 | | approved under this Section available at the time of | 12 | | application and shall receive the value available at the time | 13 | | of application. The utility shall issue the rebate no later | 14 | | than 60 days after the project is energized. In the event the | 15 | | application is incomplete or the utility is otherwise unable | 16 | | to calculate the payment based on the information provided by | 17 | | the owner, the utility shall issue the payment no later than 60 | 18 | | days after the application is complete or all requested | 19 | | information is received. | 20 | | (h) An electric utility shall recover from its retail | 21 | | customers all of the costs of the rebates made under a tariff | 22 | | or tariffs approved under subsection (d) of this Section, | 23 | | including, but not limited to, the value of the rebates and all | 24 | | costs incurred by the utility to comply with and implement | 25 | | subsections (b) and (c) of this Section, but not including | 26 | | costs incurred by the utility to comply with and implement |
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| 1 | | subsection (e) of this Section, consistent with the following | 2 | | provisions: | 3 | | (1) The utility shall defer the full amount of its | 4 | | costs as a regulatory asset. The total costs deferred as a | 5 | | regulatory asset shall be amortized over a 15-year period. | 6 | | The unamortized balance shall be recognized as of December | 7 | | 31 for a given year. The utility shall also earn a return | 8 | | on the total of the unamortized balance of the regulatory | 9 | | assets, less any deferred taxes related to the unamortized | 10 | | balance, at an annual rate equal to the utility's weighted | 11 | | average cost of capital that includes, based on a year-end | 12 | | capital structure, the utility's actual cost of debt for | 13 | | the applicable calendar year and a cost of equity, which | 14 | | shall be calculated as the sum of (i) the average for the | 15 | | applicable calendar year of the monthly average yields of | 16 | | 30-year U.S. Treasury bonds published by the Board of | 17 | | Governors of the Federal Reserve System in its weekly H.15 | 18 | | Statistical Release or successor publication; and (ii) 580 | 19 | | basis points, including a revenue conversion factor | 20 | | calculated to recover or refund all additional income | 21 | | taxes that may be payable or receivable as a result of that | 22 | | return. | 23 | | When an electric utility creates a regulatory asset | 24 | | under the provisions of this paragraph (1) of subsection | 25 | | (h), the costs are recovered over a period during which | 26 | | customers also receive a benefit, which is in the public |
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| 1 | | interest. Accordingly, it is the intent of the General | 2 | | Assembly that an electric utility that elects to create a | 3 | | regulatory asset under the provisions of this paragraph | 4 | | (1) shall recover all of the associated costs, including, | 5 | | but not limited to, its cost of capital as set forth in | 6 | | this paragraph (1). After the Commission has approved the | 7 | | prudence and reasonableness of the costs that comprise the | 8 | | regulatory asset, the electric utility shall be permitted | 9 | | to recover all such costs, and the value and | 10 | | recoverability through rates of the associated regulatory | 11 | | asset shall not be limited, altered, impaired, or reduced. | 12 | | To enable the financing of the incremental capital | 13 | | expenditures, including regulatory assets, for electric | 14 | | utilities that serve less than 3,000,000 retail customers | 15 | | but more than 500,000 retail customers in the State, the | 16 | | utility's actual year-end capital structure that includes | 17 | | a common equity ratio, excluding goodwill, of up to and | 18 | | including 50% of the total capital structure shall be | 19 | | deemed reasonable and used to set rates. | 20 | | (2) The utility, at its election, may recover all of | 21 | | the costs as part of a filing for a general increase in | 22 | | rates under Article IX of this Act, as part of an annual | 23 | | filing to update a performance-based formula rate under | 24 | | subsection (d) of Section 16-108.5 of this Act, or through | 25 | | an automatic adjustment clause tariff, provided that | 26 | | nothing in this paragraph (2) permits the double recovery |
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| 1 | | of such costs from customers. If the utility elects to | 2 | | recover the costs it incurs under subsections (b) and (c) | 3 | | through an automatic adjustment clause tariff, the utility | 4 | | may file its proposed tariff together with the tariff it | 5 | | files under subsection (b) of this Section or at a later | 6 | | time. The proposed tariff shall provide for an annual | 7 | | reconciliation, less any deferred taxes related to the | 8 | | reconciliation, with interest at an annual rate of return | 9 | | equal to the utility's weighted average cost of capital as | 10 | | calculated under paragraph (1) of this subsection (h), | 11 | | including a revenue conversion factor calculated to | 12 | | recover or refund all additional income taxes that may be | 13 | | payable or receivable as a result of that return, of the | 14 | | revenue requirement reflected in rates for each calendar | 15 | | year, beginning with the calendar year in which the | 16 | | utility files its automatic adjustment clause tariff under | 17 | | this subsection (h), with what the revenue requirement | 18 | | would have been had the actual cost information for the | 19 | | applicable calendar year been available at the filing | 20 | | date. The Commission shall review the proposed tariff and | 21 | | may make changes to the tariff that are consistent with | 22 | | this Section and with the Commission's authority under | 23 | | Article IX of this Act, subject to notice and hearing. | 24 | | Following notice and hearing, the Commission shall issue | 25 | | an order approving, or approving with modification, such | 26 | | tariff no later than 240 days after the utility files its |
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| 1 | | tariff. | 2 | | (i) An electric utility shall recover from its retail | 3 | | customers, on a volumetric basis, all of the costs of the | 4 | | rebates made under a tariff or tariffs placed into effect | 5 | | under subsection (e) of this Section, including, but not | 6 | | limited to, the value of the rebates and all costs incurred by | 7 | | the utility to comply with and implement subsection (e) of | 8 | | this Section, consistent with the following provisions: | 9 | | (1) The utility may defer a portion of its costs as a | 10 | | regulatory asset. The Commission shall determine the | 11 | | portion that may be appropriately deferred as a regulatory | 12 | | asset. Factors that the Commission shall consider in | 13 | | determining the portion of costs that shall be deferred as | 14 | | a regulatory asset include, but are not limited to: (i) | 15 | | whether and the extent to which a cost effectively | 16 | | deferred or avoided other distribution system operating | 17 | | costs or capital expenditures; (ii) the extent to which a | 18 | | cost provides environmental benefits; (iii) the extent to | 19 | | which a cost improves system reliability or resilience; | 20 | | (iv) the electric utility's distribution system plan | 21 | | developed pursuant to Section 16-105.17 of this Act; (v) | 22 | | the extent to which a cost advances equity principles; and | 23 | | (vi) such other factors as the Commission deems | 24 | | appropriate. The remainder of costs shall be deemed an | 25 | | operating expense and shall be recoverable if found | 26 | | prudent and reasonable by the Commission. |
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| 1 | | The total costs deferred as a regulatory asset shall | 2 | | be amortized over a 15-year period. The unamortized | 3 | | balance shall be recognized as of December 31 for a given | 4 | | year. The utility shall also earn a return on the total of | 5 | | the unamortized balance of the regulatory assets, less any | 6 | | deferred taxes related to the unamortized balance, at an | 7 | | annual rate equal to the utility's weighted average cost | 8 | | of capital that includes, based on a year-end capital | 9 | | structure, the utility's actual cost of debt for the | 10 | | applicable calendar year and a cost of equity, which shall | 11 | | be calculated as the sum of: (I) the average for the | 12 | | applicable calendar year of the monthly average yields of | 13 | | 30-year U.S. Treasury bonds published by the Board of | 14 | | Governors of the Federal Reserve System in its weekly H.15 | 15 | | Statistical Release or successor publication; and (II) 580 | 16 | | basis points, including a revenue conversion factor | 17 | | calculated to recover or refund all additional income | 18 | | taxes that may be payable or receivable as a result of that | 19 | | return. | 20 | | (2) The utility may recover all of the costs through | 21 | | an automatic adjustment clause tariff, on a volumetric | 22 | | basis. The utility may file its proposed cost-recovery | 23 | | tariff together with the tariff it files under subsection | 24 | | (e) of this Section or at a later time. The proposed tariff | 25 | | shall provide for an annual reconciliation, less any | 26 | | deferred taxes related to the reconciliation, with |
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| 1 | | interest at an annual rate of return equal to the | 2 | | utility's weighted average cost of capital as calculated | 3 | | under paragraph (1) of this subsection (i), including a | 4 | | revenue conversion factor calculated to recover or refund | 5 | | all additional income taxes that may be payable or | 6 | | receivable as a result of that return, of the revenue | 7 | | requirement reflected in rates for each calendar year, | 8 | | beginning with the calendar year in which the utility | 9 | | files its automatic adjustment clause tariff under this | 10 | | subsection (i), with what the revenue requirement would | 11 | | have been had the actual cost information for the | 12 | | applicable calendar year been available at the filing | 13 | | date. The Commission shall review the proposed tariff and | 14 | | may make changes to the tariff that are consistent with | 15 | | this Section and with the Commission's authority under | 16 | | Article IX of this Act, subject to notice and hearing. | 17 | | Following notice and hearing, the Commission shall issue | 18 | | an order approving, or approving with modification, such | 19 | | tariff no later than 240 days after the utility files its | 20 | | tariff. | 21 | | (j) No later than 90 days after the Commission enters an | 22 | | order, or order on rehearing, whichever is later, approving an | 23 | | electric utility's proposed tariff under this Section, the | 24 | | electric utility shall provide notice of the availability of | 25 | | rebates under this Section.
| 26 | | (Source: P.A. 102-662, eff. 9-15-21.) |
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| 1 | | (220 ILCS 5/16-108.5) | 2 | | Sec. 16-108.5. Infrastructure investment and | 3 | | modernization; regulatory reform. | 4 | | (a) (Blank). | 5 | | (b) For purposes of this Section, "participating utility" | 6 | | means an electric utility or a combination utility serving | 7 | | more than 1,000,000 customers in Illinois that voluntarily | 8 | | elects and commits to undertake (i) the infrastructure | 9 | | investment program consisting of the commitments and | 10 | | obligations described in this subsection (b) and (ii) the | 11 | | customer assistance program consisting of the commitments and | 12 | | obligations described in subsection (b-10) of this Section, | 13 | | notwithstanding any other provisions of this Act and without | 14 | | obtaining any approvals from the Commission or any other | 15 | | agency other than as set forth in this Section, regardless of | 16 | | whether any such approval would otherwise be required. | 17 | | "Combination utility" means a utility that, as of January 1, | 18 | | 2011, provided electric service to at least one million retail | 19 | | customers in Illinois and gas service to at least 500,000 | 20 | | retail customers in Illinois. A participating utility shall | 21 | | recover the expenditures made under the infrastructure | 22 | | investment program through the ratemaking process, including, | 23 | | but not limited to, the performance-based formula rate and | 24 | | process set forth in this Section. | 25 | | During the infrastructure investment program's peak |
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| 1 | | program year, a participating utility other than a combination | 2 | | utility shall create 2,000 full-time equivalent jobs in | 3 | | Illinois, and a participating utility that is a combination | 4 | | utility shall create 450 full-time equivalent jobs in Illinois | 5 | | related to the provision of electric service. These jobs shall | 6 | | include direct jobs, contractor positions, and induced jobs, | 7 | | but shall not include any portion of a job commitment, not | 8 | | specifically contingent on an amendatory Act of the 97th | 9 | | General Assembly becoming law, between a participating utility | 10 | | and a labor union that existed on December 30, 2011 (the | 11 | | effective date of Public Act 97-646) and that has not yet been | 12 | | fulfilled. A portion of the full-time equivalent jobs created | 13 | | by each participating utility shall include incremental | 14 | | personnel hired subsequent to December 30, 2011 (the effective | 15 | | date of Public Act 97-646). For purposes of this Section, | 16 | | "peak program year" means the consecutive 12-month period with | 17 | | the highest number of full-time equivalent jobs that occurs | 18 | | between the beginning of investment year 2 and the end of | 19 | | investment year 4. | 20 | | A participating utility shall meet one of the following | 21 | | commitments, as applicable: | 22 | | (1) Beginning no later than 180 days after a | 23 | | participating utility other than a combination utility | 24 | | files a performance-based formula rate tariff pursuant to | 25 | | subsection (c) of this Section, or, beginning no later | 26 | | than January 1, 2012 if such utility files such |
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| 1 | | performance-based formula rate tariff within 14 days of | 2 | | October 26, 2011 (the effective date of Public Act | 3 | | 97-616), the participating utility shall, except as | 4 | | provided in subsection (b-5): | 5 | | (A) over a 5-year period, invest an estimated | 6 | | $1,300,000,000 in electric system upgrades, | 7 | | modernization projects, and training facilities, | 8 | | including, but not limited to: | 9 | | (i) distribution infrastructure improvements | 10 | | totaling an estimated $1,000,000,000, including | 11 | | underground residential distribution cable | 12 | | injection and replacement and mainline cable | 13 | | system refurbishment and replacement projects; | 14 | | (ii) training facility construction or upgrade | 15 | | projects totaling an estimated $10,000,000, | 16 | | provided that, at a minimum, one such facility | 17 | | shall be located in a municipality having a | 18 | | population of more than 2 million residents and | 19 | | one such facility shall be located in a | 20 | | municipality having a population of more than | 21 | | 150,000 residents but fewer than 170,000 | 22 | | residents; any such new facility located in a | 23 | | municipality having a population of more than 2 | 24 | | million residents must be designed for the purpose | 25 | | of obtaining, and the owner of the facility shall | 26 | | apply for, certification under the United States |
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| 1 | | Green Building Council's Leadership in Energy | 2 | | Efficiency Design Green Building Rating System; | 3 | | (iii) wood pole inspection, treatment, and | 4 | | replacement programs; | 5 | | (iv) an estimated $200,000,000 for reducing | 6 | | the susceptibility of certain circuits to | 7 | | storm-related damage, including, but not limited | 8 | | to, high winds, thunderstorms, and ice storms; | 9 | | improvements may include, but are not limited to, | 10 | | overhead to underground conversion and other | 11 | | engineered outcomes for circuits; the | 12 | | participating utility shall prioritize the | 13 | | selection of circuits based on each circuit's | 14 | | historical susceptibility to storm-related damage | 15 | | and the ability to provide the greatest customer | 16 | | benefit upon completion of the improvements; to be | 17 | | eligible for improvement, the participating | 18 | | utility's ability to maintain proper tree | 19 | | clearances surrounding the overhead circuit must | 20 | | not have
been impeded by third parties; and | 21 | | (B) over a 10-year period, invest an estimated | 22 | | $1,300,000,000 to upgrade and modernize its | 23 | | transmission and distribution infrastructure and in | 24 | | Smart Grid electric system upgrades, including, but | 25 | | not limited to: | 26 | | (i) additional smart meters; |
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| 1 | | (ii) distribution automation; | 2 | | (iii) associated cyber secure data | 3 | | communication network; and | 4 | | (iv) substation micro-processor relay | 5 | | upgrades. | 6 | | (2) Beginning no later than 180 days after a | 7 | | participating utility that is a combination utility files | 8 | | a performance-based formula rate tariff pursuant to | 9 | | subsection (c) of this Section, or, beginning no later | 10 | | than January 1, 2012 if such utility files such | 11 | | performance-based formula rate tariff within 14 days of | 12 | | October 26, 2011 (the effective date of Public Act | 13 | | 97-616), the participating utility shall, except as | 14 | | provided in subsection (b-5): | 15 | | (A) over a 10-year period, invest an estimated | 16 | | $265,000,000 in electric system upgrades, | 17 | | modernization projects, and training facilities, | 18 | | including, but not limited to: | 19 | | (i) distribution infrastructure improvements | 20 | | totaling an estimated $245,000,000, which may | 21 | | include bulk supply substations, transformers, | 22 | | reconductoring, and rebuilding overhead | 23 | | distribution and sub-transmission lines, | 24 | | underground residential distribution cable | 25 | | injection and replacement and mainline cable | 26 | | system refurbishment and replacement projects; |
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| 1 | | (ii) training facility construction or upgrade | 2 | | projects totaling an estimated $1,000,000; any | 3 | | such new facility must be designed for the purpose | 4 | | of obtaining, and the owner of the facility shall | 5 | | apply for, certification under the United States | 6 | | Green Building Council's Leadership in Energy | 7 | | Efficiency Design Green Building Rating System; | 8 | | and | 9 | | (iii) wood pole inspection, treatment, and | 10 | | replacement programs; and | 11 | | (B) over a 10-year period, invest an estimated | 12 | | $360,000,000 to upgrade and modernize its transmission | 13 | | and distribution infrastructure and in Smart Grid | 14 | | electric system upgrades, including, but not limited | 15 | | to: | 16 | | (i) additional smart meters; | 17 | | (ii) distribution automation; | 18 | | (iii) associated cyber secure data | 19 | | communication network; and | 20 | | (iv) substation micro-processor relay | 21 | | upgrades. | 22 | | For purposes of this Section, "Smart Grid electric system | 23 | | upgrades" shall have the meaning set forth in subsection (a) | 24 | | of Section 16-108.6 of this Act. | 25 | | The investments in the infrastructure investment program | 26 | | described in this subsection (b) shall be incremental to the |
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| 1 | | participating utility's annual capital investment program, as | 2 | | defined by, for purposes of this subsection (b), the | 3 | | participating utility's average capital spend for calendar | 4 | | years 2008, 2009, and 2010 as reported in the applicable | 5 | | Federal Energy Regulatory Commission (FERC) Form 1; provided | 6 | | that where one or more utilities have merged, the average | 7 | | capital spend shall be determined using the aggregate of the | 8 | | merged utilities' capital spend reported in FERC Form 1 for | 9 | | the years 2008, 2009, and 2010. A participating utility may | 10 | | add reasonable construction ramp-up and ramp-down time to the | 11 | | investment periods specified in this subsection (b). For each | 12 | | such investment period, the ramp-up and ramp-down time shall | 13 | | not exceed a total of 6 months. | 14 | | Within 60 days after filing a tariff under subsection (c) | 15 | | of this Section, a participating utility shall submit to the | 16 | | Commission its plan, including scope, schedule, and staffing, | 17 | | for satisfying its infrastructure investment program | 18 | | commitments pursuant to this subsection (b). The submitted | 19 | | plan shall include a schedule and staffing plan for the next | 20 | | calendar year. The plan shall also include a plan for the | 21 | | creation, operation, and administration of a Smart Grid test | 22 | | bed as described in subsection (c) of Section 16-108.8. The | 23 | | plan need not allocate the work equally over the respective | 24 | | periods, but should allocate material increments throughout | 25 | | such periods commensurate with the work to be undertaken. No | 26 | | later than April 1 of each subsequent year, the utility shall |
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| 1 | | submit to the Commission a report that includes any updates to | 2 | | the plan, a schedule for the next calendar year, the | 3 | | expenditures made for the prior calendar year and | 4 | | cumulatively, and the number of full-time equivalent jobs | 5 | | created for the prior calendar year and cumulatively. If the | 6 | | utility is materially deficient in satisfying a schedule or | 7 | | staffing plan, then the report must also include a corrective | 8 | | action plan to address the deficiency. The fact that the plan, | 9 | | implementation of the plan, or a schedule changes shall not | 10 | | imply the imprudence or unreasonableness of the infrastructure | 11 | | investment program, plan, or schedule. Further, no later than | 12 | | 45 days following the last day of the first, second, and third | 13 | | quarters of each year of the plan, a participating utility | 14 | | shall submit to the Commission a verified quarterly report for | 15 | | the prior quarter that includes (i) the total number of | 16 | | full-time equivalent jobs created during the prior quarter, | 17 | | (ii) the total number of employees as of the last day of the | 18 | | prior quarter, (iii) the total number of full-time equivalent | 19 | | hours in each job classification or job title, (iv) the total | 20 | | number of incremental employees and contractors in support of | 21 | | the investments undertaken pursuant to this subsection (b) for | 22 | | the prior quarter, and (v) any other information that the | 23 | | Commission may require by rule. | 24 | | With respect to the participating utility's peak job | 25 | | commitment, if, after considering the utility's corrective | 26 | | action plan and compliance thereunder, the Commission enters |
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| 1 | | an order finding, after notice and hearing, that a | 2 | | participating utility did not satisfy its peak job commitment | 3 | | described in this subsection (b) for reasons that are | 4 | | reasonably within its control, then the Commission shall also | 5 | | determine, after consideration of the evidence, including, but | 6 | | not limited to, evidence submitted by the Department of | 7 | | Commerce and Economic Opportunity and the utility, the | 8 | | deficiency in the number of full-time equivalent jobs during | 9 | | the peak program year due to such failure. The Commission | 10 | | shall notify the Department of any proceeding that is | 11 | | initiated pursuant to this paragraph. For each full-time | 12 | | equivalent job deficiency during the peak program year that | 13 | | the Commission finds as set forth in this paragraph, the | 14 | | participating utility shall, within 30 days after the entry of | 15 | | the Commission's order, pay $6,000 to a fund for training | 16 | | grants administered under Section 605-800 of the Department of | 17 | | Commerce and Economic Opportunity Law, which shall not be a | 18 | | recoverable expense. | 19 | | With respect to the participating utility's investment | 20 | | amount commitments, if, after considering the utility's | 21 | | corrective action plan and compliance thereunder, the | 22 | | Commission enters an order finding, after notice and hearing, | 23 | | that a participating utility is not satisfying its investment | 24 | | amount commitments described in this subsection (b), then the | 25 | | utility shall no longer be eligible to annually update the | 26 | | performance-based formula rate tariff pursuant to subsection |
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| 1 | | (d) of this Section. In such event, the then current rates | 2 | | shall remain in effect until such time as new rates are set | 3 | | pursuant to Article IX of this Act, subject to retroactive | 4 | | adjustment, with interest, to reconcile rates charged with | 5 | | actual costs. | 6 | | If the Commission finds that a participating utility is no | 7 | | longer eligible to update the performance-based formula rate | 8 | | tariff pursuant to subsection (d) of this Section, or the | 9 | | performance-based formula rate is otherwise terminated, then | 10 | | the participating utility's voluntary commitments and | 11 | | obligations under this subsection (b) shall immediately | 12 | | terminate, except for the utility's obligation to pay an | 13 | | amount already owed to the fund for training grants pursuant | 14 | | to a Commission order. | 15 | | In meeting the obligations of this subsection (b), to the | 16 | | extent feasible and consistent with State and federal law, the | 17 | | investments under the infrastructure investment program should | 18 | | provide employment opportunities for all segments of the | 19 | | population and workforce, including minority-owned and | 20 | | female-owned business enterprises, and shall not, consistent | 21 | | with State and federal law, discriminate based on race or | 22 | | socioeconomic status. | 23 | | (b-5) Nothing in this Section shall prohibit the | 24 | | Commission from investigating the prudence and reasonableness | 25 | | of the expenditures made under the infrastructure investment | 26 | | program during the annual review required by subsection (d) of |
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| 1 | | this Section and shall, as part of such investigation, | 2 | | determine whether the utility's actual costs under the program | 3 | | are prudent and reasonable. The fact that a participating | 4 | | utility invests more than the minimum amounts specified in | 5 | | subsection (b) of this Section or its plan shall not imply | 6 | | imprudence or unreasonableness. | 7 | | If the participating utility finds that it is implementing | 8 | | its plan for satisfying the infrastructure investment program | 9 | | commitments described in subsection (b) of this Section at a | 10 | | cost below the estimated amounts specified in subsection (b) | 11 | | of this Section, then the utility may file a petition with the | 12 | | Commission requesting that it be permitted to satisfy its | 13 | | commitments by spending less than the estimated amounts | 14 | | specified in subsection (b) of this Section. The Commission | 15 | | shall, after notice and hearing, enter its order approving, or | 16 | | approving as modified, or denying each such petition within | 17 | | 150 days after the filing of the petition. | 18 | | In no event, absent General Assembly approval, shall the | 19 | | capital investment costs incurred by a participating utility | 20 | | other than a combination utility in satisfying its | 21 | | infrastructure investment program commitments described in | 22 | | subsection (b) of this Section exceed $3,000,000,000 or, for a | 23 | | participating utility that is a combination utility, | 24 | | $720,000,000. If the participating utility's updated cost | 25 | | estimates for satisfying its infrastructure investment program | 26 | | commitments described in subsection (b) of this Section exceed |
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| 1 | | the limitation imposed by this subsection (b-5), then it shall | 2 | | submit a report to the Commission that identifies the | 3 | | increased costs and explains the reason or reasons for the | 4 | | increased costs no later than the year in which the utility | 5 | | estimates it will exceed the limitation. The Commission shall | 6 | | review the report and shall, within 90 days after the | 7 | | participating utility files the report, report to the General | 8 | | Assembly its findings regarding the participating utility's | 9 | | report. If the General Assembly does not amend the limitation | 10 | | imposed by this subsection (b-5), then the utility may modify | 11 | | its plan so as not to exceed the limitation imposed by this | 12 | | subsection (b-5) and may propose corresponding changes to the | 13 | | metrics established pursuant to subparagraphs (5) through (8) | 14 | | of subsection (f) of this Section, and the Commission may | 15 | | modify the metrics and incremental savings goals established | 16 | | pursuant to subsection (f) of this Section accordingly. | 17 | | (b-10) All participating utilities shall make | 18 | | contributions for an energy low-income and support program in | 19 | | accordance with this subsection. Beginning no later than 180 | 20 | | days after a participating utility files a performance-based | 21 | | formula rate tariff pursuant to subsection (c) of this | 22 | | Section, or beginning no later than January 1, 2012 if such | 23 | | utility files such performance-based formula rate tariff | 24 | | within 14 days of December 30, 2011 (the effective date of | 25 | | Public Act 97-646), and without obtaining any approvals from | 26 | | the Commission or any other agency other than as set forth in |
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| 1 | | this Section, regardless of whether any such approval would | 2 | | otherwise be required, a participating utility other than a | 3 | | combination utility shall pay $10,000,000 per year for 5 years | 4 | | and a participating utility that is a combination utility | 5 | | shall pay $1,000,000 per year for 10 years to the energy | 6 | | low-income and support program, which is intended to fund | 7 | | customer assistance programs with the primary purpose being | 8 | | avoidance of
imminent disconnection. Such programs may | 9 | | include: | 10 | | (1) a residential hardship program that may partner | 11 | | with community-based
organizations, including senior | 12 | | citizen organizations, and provides grants to low-income | 13 | | residential customers, including low-income senior | 14 | | citizens, who demonstrate a hardship; | 15 | | (2) a program that provides grants and other bill | 16 | | payment concessions to veterans with disabilities who | 17 | | demonstrate a hardship and members of the armed services | 18 | | or reserve forces of the United States or members of the | 19 | | Illinois National Guard who are on active duty pursuant to | 20 | | an executive order of the President of the United States, | 21 | | an act of the Congress of the United States, or an order of | 22 | | the Governor and who demonstrate a
hardship; | 23 | | (3) a budget assistance program that provides tools | 24 | | and education to low-income senior citizens to assist them | 25 | | with obtaining information regarding energy usage and
| 26 | | effective means of managing energy costs; |
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| 1 | | (4) a non-residential special hardship program that | 2 | | provides grants to non-residential customers such as small | 3 | | businesses and non-profit organizations that demonstrate a | 4 | | hardship, including those providing services to senior | 5 | | citizen and low-income customers; and | 6 | | (5) a performance-based assistance program that | 7 | | provides grants to encourage residential customers to make | 8 | | on-time payments by matching a portion of the customer's | 9 | | payments or providing credits towards arrearages. | 10 | | The payments made by a participating utility pursuant to | 11 | | this subsection (b-10) shall not be a recoverable expense. A | 12 | | participating utility may elect to fund either new or existing | 13 | | customer assistance programs, including, but not limited to, | 14 | | those that are administered by the utility. | 15 | | Programs that use funds that are provided by a | 16 | | participating utility to reduce utility bills may be | 17 | | implemented through tariffs that are filed with and reviewed | 18 | | by the Commission. If a utility elects to file tariffs with the | 19 | | Commission to implement all or a portion of the programs, | 20 | | those tariffs shall, regardless of the date actually filed, be | 21 | | deemed accepted and approved, and shall become effective on | 22 | | December 30, 2011 (the effective date of Public Act 97-646). | 23 | | The participating utilities whose customers benefit from the | 24 | | funds that are disbursed as contemplated in this Section shall | 25 | | file annual reports documenting the disbursement of those | 26 | | funds with the Commission. The Commission has the authority to |
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| 1 | | audit disbursement of the funds to ensure they were disbursed | 2 | | consistently with this Section. | 3 | | If the Commission finds that a participating utility is no | 4 | | longer eligible to update the performance-based formula rate | 5 | | tariff pursuant to subsection (d) of this Section, or the | 6 | | performance-based formula rate is otherwise terminated, then | 7 | | the participating utility's voluntary commitments and | 8 | | obligations under this subsection (b-10) shall immediately | 9 | | terminate. | 10 | | (c) A participating utility may elect to recover its | 11 | | delivery services costs through a performance-based formula | 12 | | rate approved by the Commission, which shall specify the cost | 13 | | components that form the basis of the rate charged to | 14 | | customers with sufficient specificity to operate in a | 15 | | standardized manner and be updated annually with transparent | 16 | | information that reflects the utility's actual costs to be | 17 | | recovered during the applicable rate year, which is the period | 18 | | beginning with the first billing day of January and extending | 19 | | through the last billing day of the following December. In the | 20 | | event the utility recovers a portion of its costs through | 21 | | automatic adjustment clause tariffs on October 26, 2011 (the | 22 | | effective date of Public Act 97-616), the utility may elect to | 23 | | continue to recover these costs through such tariffs, but then | 24 | | these costs shall not be recovered through the | 25 | | performance-based formula rate. In the event the participating | 26 | | utility, prior to December 30, 2011 (the effective date of |
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| 1 | | Public Act 97-646), filed electric delivery services tariffs | 2 | | with the Commission pursuant to Section 9-201 of this Act that | 3 | | are related to the recovery of its electric delivery services | 4 | | costs that are still pending on December 30, 2011 (the | 5 | | effective date of Public Act 97-646), the participating | 6 | | utility shall, at the time it files its performance-based | 7 | | formula rate tariff with the Commission, also file a notice of | 8 | | withdrawal with the Commission to withdraw the electric | 9 | | delivery services tariffs previously filed pursuant to Section | 10 | | 9-201 of this Act. Upon receipt of such notice, the Commission | 11 | | shall dismiss with prejudice any docket that had been | 12 | | initiated to investigate the electric delivery services | 13 | | tariffs filed pursuant to Section 9-201 of this Act, and such | 14 | | tariffs and the record related thereto shall not be the | 15 | | subject of any further hearing, investigation, or proceeding | 16 | | of any kind related to rates for electric delivery services. | 17 | | The performance-based formula rate shall be implemented | 18 | | through a tariff filed with the Commission consistent with the | 19 | | provisions of this subsection (c) that shall be applicable to | 20 | | all delivery services customers. The Commission shall initiate | 21 | | and conduct an investigation of the tariff in a manner | 22 | | consistent with the provisions of this subsection (c) and the | 23 | | provisions of Article IX of this Act to the extent they do not | 24 | | conflict with this subsection (c). Except in the case where | 25 | | the Commission finds, after notice and hearing, that a | 26 | | participating utility is not satisfying its investment amount |
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| 1 | | commitments under subsection (b) of this Section, the | 2 | | performance-based formula rate shall remain in effect at the | 3 | | discretion of the utility. The performance-based formula rate | 4 | | approved by the Commission shall do the following: | 5 | | (1) Provide for the recovery of the utility's actual | 6 | | costs of delivery services that are prudently incurred and | 7 | | reasonable in amount consistent with Commission practice | 8 | | and law. The sole fact that a cost differs from that | 9 | | incurred in a prior calendar year or that an investment is | 10 | | different from that made in a prior calendar year shall | 11 | | not imply the imprudence or unreasonableness of that cost | 12 | | or investment. | 13 | | (2) Reflect the utility's actual year-end capital | 14 | | structure for the applicable calendar year, excluding | 15 | | goodwill, subject to a determination of prudence and | 16 | | reasonableness consistent with Commission practice and | 17 | | law. To enable the financing of the incremental capital | 18 | | expenditures, including regulatory assets, for electric | 19 | | utilities that serve less than 3,000,000 retail customers | 20 | | but more than 500,000 retail customers in the State, a | 21 | | participating electric utility's actual year-end capital | 22 | | structure that includes a common equity ratio, excluding | 23 | | goodwill, of up to and including 50% of the total capital | 24 | | structure shall be deemed reasonable and used to set | 25 | | rates. | 26 | | (3) Include a cost of equity, which shall be |
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| 1 | | calculated as the sum of the following: | 2 | | (A) the average for the applicable calendar year | 3 | | of the monthly average yields of 30-year U.S. Treasury | 4 | | bonds published by the Board of Governors of the | 5 | | Federal Reserve System in its weekly H.15 Statistical | 6 | | Release or successor publication; and | 7 | | (B) 580 basis points. | 8 | | At such time as the Board of Governors of the Federal | 9 | | Reserve System ceases to include the monthly average | 10 | | yields of 30-year U.S. Treasury bonds in its weekly H.15 | 11 | | Statistical Release or successor publication, the monthly | 12 | | average yields of the U.S. Treasury bonds then having the | 13 | | longest duration published by the Board of Governors in | 14 | | its weekly H.15 Statistical Release or successor | 15 | | publication shall instead be used for purposes of this | 16 | | paragraph (3). | 17 | | (4) Permit and set forth protocols, subject to a | 18 | | determination of prudence and reasonableness consistent | 19 | | with Commission practice and law, for the following: | 20 | | (A) recovery of incentive compensation expense | 21 | | that is based on the achievement of operational | 22 | | metrics, including metrics related to budget controls, | 23 | | outage duration and frequency, safety, customer | 24 | | service, efficiency and productivity, and | 25 | | environmental compliance. Incentive compensation | 26 | | expense that is based on net income or an affiliate's |
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| 1 | | earnings per share shall not be recoverable under the | 2 | | performance-based formula rate; | 3 | | (B) recovery of pension and other post-employment | 4 | | benefits expense, provided that such costs are | 5 | | supported by an actuarial study; | 6 | | (C) recovery of severance costs, provided that if | 7 | | the amount is over $3,700,000 for a participating | 8 | | utility that is a combination utility or $10,000,000 | 9 | | for a participating utility that serves more than 3 | 10 | | million retail customers, then the full amount shall | 11 | | be amortized consistent with subparagraph (F) of this | 12 | | paragraph (4); | 13 | | (D) investment return at a rate equal to the | 14 | | utility's weighted average cost of long-term debt, on | 15 | | the pension assets as, and in the amount, reported in | 16 | | Account 186 (or in such other Account or Accounts as | 17 | | such asset may subsequently be recorded) of the | 18 | | utility's most recently filed FERC Form 1, net of | 19 | | deferred tax benefits; | 20 | | (E) recovery of the expenses related to the | 21 | | Commission proceeding under this subsection (c) to | 22 | | approve this performance-based formula rate and | 23 | | initial rates or to subsequent proceedings related to | 24 | | the formula, provided that the recovery shall be | 25 | | amortized over a 3-year period; recovery of expenses | 26 | | related to the annual Commission proceedings under |
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| 1 | | subsection (d) of this Section to review the inputs to | 2 | | the performance-based formula rate shall be expensed | 3 | | and recovered through the performance-based formula | 4 | | rate; | 5 | | (F) amortization over a 5-year period of the full | 6 | | amount of each charge or credit that exceeds | 7 | | $3,700,000 for a participating utility that is a | 8 | | combination utility or $10,000,000 for a participating | 9 | | utility that serves more than 3 million retail | 10 | | customers in the applicable calendar year and that | 11 | | relates to a workforce reduction program's severance | 12 | | costs, changes in accounting rules, changes in law, | 13 | | compliance with any Commission-initiated audit, or a | 14 | | single storm or other similar expense, provided that | 15 | | any unamortized balance shall be reflected in rate | 16 | | base. For purposes of this subparagraph (F), changes | 17 | | in law includes any enactment, repeal, or amendment in | 18 | | a law, ordinance, rule, regulation, interpretation, | 19 | | permit, license, consent, or order, including those | 20 | | relating to taxes, accounting, or to environmental | 21 | | matters, or in the interpretation or application | 22 | | thereof by any governmental authority occurring after | 23 | | October 26, 2011 (the effective date of Public Act | 24 | | 97-616); | 25 | | (G) recovery of existing regulatory assets over | 26 | | the periods previously authorized by the Commission; |
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| 1 | | (H) historical weather normalized billing | 2 | | determinants; and | 3 | | (I) allocation methods for common costs. | 4 | | (5) Provide that if the participating utility's earned | 5 | | rate of return on common equity related to the provision | 6 | | of delivery services for the prior rate year (calculated | 7 | | using costs and capital structure approved by the | 8 | | Commission as provided in subparagraph (2) of this | 9 | | subsection (c), consistent with this Section, in | 10 | | accordance with Commission rules and orders, including, | 11 | | but not limited to, adjustments for goodwill, and after | 12 | | any Commission-ordered disallowances and taxes) is more | 13 | | than 50 basis points higher than the rate of return on | 14 | | common equity calculated pursuant to paragraph (3) of this | 15 | | subsection (c) (after adjusting for any penalties to the | 16 | | rate of return on common equity applied pursuant to the | 17 | | performance metrics provision of subsection (f) of this | 18 | | Section), then the participating utility shall apply a | 19 | | credit through the performance-based formula rate that | 20 | | reflects an amount equal to the value of that portion of | 21 | | the earned rate of return on common equity that is more | 22 | | than 50 basis points higher than the rate of return on | 23 | | common equity calculated pursuant to paragraph (3) of this | 24 | | subsection (c) (after adjusting for any penalties to the | 25 | | rate of return on common equity applied pursuant to the | 26 | | performance metrics provision of subsection (f) of this |
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| 1 | | Section) for the prior rate year, adjusted for taxes. If | 2 | | the participating utility's earned rate of return on | 3 | | common equity related to the provision of delivery | 4 | | services for the prior rate year (calculated using costs | 5 | | and capital structure approved by the Commission as | 6 | | provided in subparagraph (2) of this subsection (c), | 7 | | consistent with this Section, in accordance with | 8 | | Commission rules and orders, including, but not limited | 9 | | to, adjustments for goodwill, and after any | 10 | | Commission-ordered disallowances and taxes) is more than | 11 | | 50 basis points less than the return on common equity | 12 | | calculated pursuant to paragraph (3) of this subsection | 13 | | (c) (after adjusting for any penalties to the rate of | 14 | | return on common equity applied pursuant to the | 15 | | performance metrics provision of subsection (f) of this | 16 | | Section), then the participating utility shall apply a | 17 | | charge through the performance-based formula rate that | 18 | | reflects an amount equal to the value of that portion of | 19 | | the earned rate of return on common equity that is more | 20 | | than 50 basis points less than the rate of return on common | 21 | | equity calculated pursuant to paragraph (3) of this | 22 | | subsection (c) (after adjusting for any penalties to the | 23 | | rate of return on common equity applied pursuant to the | 24 | | performance metrics provision of subsection (f) of this | 25 | | Section) for the prior rate year, adjusted for taxes. | 26 | | (6) Provide for an annual reconciliation, as described |
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| 1 | | in subsection (d) of this Section, with interest, of the | 2 | | revenue requirement reflected in rates for each calendar | 3 | | year, beginning with the calendar year in which the | 4 | | utility files its performance-based formula rate tariff | 5 | | pursuant to subsection (c) of this Section, with what the | 6 | | revenue requirement would have been had the actual cost | 7 | | information for the applicable calendar year been | 8 | | available at the filing date. | 9 | | The utility shall file, together with its tariff, final | 10 | | data based on its most recently filed FERC Form 1, plus | 11 | | projected plant additions and correspondingly updated | 12 | | depreciation reserve and expense for the calendar year in | 13 | | which the tariff and data are filed, that shall populate the | 14 | | performance-based formula rate and set the initial delivery | 15 | | services rates under the formula. For purposes of this | 16 | | Section, "FERC Form 1" means the Annual Report of Major | 17 | | Electric Utilities, Licensees and Others that electric | 18 | | utilities are required to file with the Federal Energy | 19 | | Regulatory Commission under the Federal Power Act, Sections 3, | 20 | | 4(a), 304 and 209, modified as necessary to be consistent with | 21 | | 83 Ill. Admin. Code Part 415 as of May 1, 2011. Nothing in this | 22 | | Section is intended to allow costs that are not otherwise | 23 | | recoverable to be recoverable by virtue of inclusion in FERC | 24 | | Form 1. | 25 | | After the utility files its proposed performance-based | 26 | | formula rate structure and protocols and initial rates, the |
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| 1 | | Commission shall initiate a docket to review the filing. The | 2 | | Commission shall enter an order approving, or approving as | 3 | | modified, the performance-based formula rate, including the | 4 | | initial rates, as just and reasonable within 270 days after | 5 | | the date on which the tariff was filed, or, if the tariff is | 6 | | filed within 14 days after October 26, 2011 (the effective | 7 | | date of Public Act 97-616), then by May 31, 2012. Such review | 8 | | shall be based on the same evidentiary standards, including, | 9 | | but not limited to, those concerning the prudence and | 10 | | reasonableness of the costs incurred by the utility, the | 11 | | Commission applies in a hearing to review a filing for a | 12 | | general increase in rates under Article IX of this Act. The | 13 | | initial rates shall take effect within 30 days after the | 14 | | Commission's order approving the performance-based formula | 15 | | rate tariff. | 16 | | Until such time as the Commission approves a different | 17 | | rate design and cost allocation pursuant to subsection (e) of | 18 | | this Section, rate design and cost allocation across customer | 19 | | classes shall be consistent with the Commission's most recent | 20 | | order regarding the participating utility's request for a | 21 | | general increase in its delivery services rates. | 22 | | Subsequent changes to the performance-based formula rate | 23 | | structure or protocols shall be made as set forth in Section | 24 | | 9-201 of this Act, but nothing in this subsection (c) is | 25 | | intended to limit the Commission's authority under Article IX | 26 | | and other provisions of this Act to initiate an investigation |
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| 1 | | of a participating utility's performance-based formula rate | 2 | | tariff, provided that any such changes shall be consistent | 3 | | with paragraphs (1) through (6) of this subsection (c). Any | 4 | | change ordered by the Commission shall be made at the same time | 5 | | new rates take effect following the Commission's next order | 6 | | pursuant to subsection (d) of this Section, provided that the | 7 | | new rates take effect no less than 30 days after the date on | 8 | | which the Commission issues an order adopting the change. | 9 | | A participating utility that files a tariff pursuant to | 10 | | this subsection (c) must submit a one-time $200,000 filing fee | 11 | | at the time the Chief Clerk of the Commission accepts the | 12 | | filing, which shall be a recoverable expense. | 13 | | In the event the performance-based formula rate is | 14 | | terminated, the then current rates shall remain in effect | 15 | | until such time as new rates are set pursuant to Article IX of | 16 | | this Act, subject to retroactive rate adjustment, with | 17 | | interest, to reconcile rates charged with actual costs. At | 18 | | such time that the performance-based formula rate is | 19 | | terminated, the participating utility's voluntary commitments | 20 | | and obligations under subsection (b) of this Section shall | 21 | | immediately terminate, except for the utility's obligation to | 22 | | pay an amount already owed to the fund for training grants | 23 | | pursuant to a Commission order issued under subsection (b) of | 24 | | this Section. | 25 | | (d) Subsequent to the Commission's issuance of an order | 26 | | approving the utility's performance-based formula rate |
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| 1 | | structure and protocols, and initial rates under subsection | 2 | | (c) of this Section, the utility shall file, on or before May 1 | 3 | | of each year, with the Chief Clerk of the Commission its | 4 | | updated cost inputs to the performance-based formula rate for | 5 | | the applicable rate year and the corresponding new charges. | 6 | | Each such filing shall conform to the following requirements | 7 | | and include the following information: | 8 | | (1) The inputs to the performance-based formula rate | 9 | | for the applicable rate year shall be based on final | 10 | | historical data reflected in the utility's most recently | 11 | | filed annual FERC Form 1 plus projected plant additions | 12 | | and correspondingly updated depreciation reserve and | 13 | | expense for the calendar year in which the inputs are | 14 | | filed. The filing shall also include a reconciliation of | 15 | | the revenue requirement that was in effect for the prior | 16 | | rate year (as set by the cost inputs for the prior rate | 17 | | year) with the actual revenue requirement for the prior | 18 | | rate year (determined using a year-end rate base) that | 19 | | uses amounts reflected in the applicable FERC Form 1 that | 20 | | reports the actual costs for the prior rate year. Any | 21 | | over-collection or under-collection indicated by such | 22 | | reconciliation shall be reflected as a credit against, or | 23 | | recovered as an additional charge to, respectively, with | 24 | | interest calculated at a rate equal to the utility's | 25 | | weighted average cost of capital approved by the | 26 | | Commission for the prior rate year, the charges for the |
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| 1 | | applicable rate year. Provided, however, that the first | 2 | | such reconciliation shall be for the calendar year in | 3 | | which the utility files its performance-based formula rate | 4 | | tariff pursuant to subsection (c) of this Section and | 5 | | shall reconcile (i) the revenue requirement or | 6 | | requirements established by the rate order or orders in | 7 | | effect from time to time during such calendar year | 8 | | (weighted, as applicable) with (ii) the revenue | 9 | | requirement determined using a year-end rate base for that | 10 | | calendar year calculated pursuant to the performance-based | 11 | | formula rate using (A) actual costs for that year as | 12 | | reflected in the applicable FERC Form 1, and (B) for the | 13 | | first such reconciliation only, the cost of equity, which | 14 | | shall be calculated as the sum of 590 basis points plus the | 15 | | average for the applicable calendar year of the monthly | 16 | | average yields of 30-year U.S. Treasury bonds published by | 17 | | the Board of Governors of the Federal Reserve System in | 18 | | its weekly H.15 Statistical Release or successor | 19 | | publication. The first such reconciliation is not intended | 20 | | to provide for the recovery of costs previously excluded | 21 | | from rates based on a prior Commission order finding of | 22 | | imprudence or unreasonableness. Each reconciliation shall | 23 | | be certified by the participating utility in the same | 24 | | manner that FERC Form 1 is certified. The filing shall | 25 | | also include the charge or credit, if any, resulting from | 26 | | the calculation required by paragraph (6) of subsection |
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| 1 | | (c) of this Section. | 2 | | Notwithstanding anything that may be to the contrary, | 3 | | the intent of the reconciliation is to ultimately | 4 | | reconcile the revenue requirement reflected in rates for | 5 | | each calendar year, beginning with the calendar year in | 6 | | which the utility files its performance-based formula rate | 7 | | tariff pursuant to subsection (c) of this Section, with | 8 | | what the revenue requirement determined using a year-end | 9 | | rate base for the applicable calendar year would have been | 10 | | had the actual cost information for the applicable | 11 | | calendar year been available at the filing date. | 12 | | (2) The new charges shall take effect beginning on the | 13 | | first billing day of the following January billing period | 14 | | and remain in effect through the last billing day of the | 15 | | next December billing period regardless of whether the | 16 | | Commission enters upon a hearing pursuant to this | 17 | | subsection (d). | 18 | | (3) The filing shall include relevant and necessary | 19 | | data and documentation for the applicable rate year that | 20 | | is consistent with the Commission's rules applicable to a | 21 | | filing for a general increase in rates or any rules | 22 | | adopted by the Commission to implement this Section. | 23 | | Normalization adjustments shall not be required. | 24 | | Notwithstanding any other provision of this Section or Act | 25 | | or any rule or other requirement adopted by the | 26 | | Commission, a participating utility that is a combination |
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| 1 | | utility with more than one rate zone shall not be required | 2 | | to file a separate set of such data and documentation for | 3 | | each rate zone and may combine such data and documentation | 4 | | into a single set of schedules. | 5 | | Within 45 days after the utility files its annual update | 6 | | of cost inputs to the performance-based formula rate, the | 7 | | Commission shall have the authority, either upon complaint or | 8 | | its own initiative, but with reasonable notice, to enter upon | 9 | | a hearing concerning the prudence and reasonableness of the | 10 | | costs incurred by the utility to be recovered during the | 11 | | applicable rate year that are reflected in the inputs to the | 12 | | performance-based formula rate derived from the utility's FERC | 13 | | Form 1. During the course of the hearing, each objection shall | 14 | | be stated with particularity and evidence provided in support | 15 | | thereof, after which the utility shall have the opportunity to | 16 | | rebut the evidence. Discovery shall be allowed consistent with | 17 | | the Commission's Rules of Practice, which Rules shall be | 18 | | enforced by the Commission or the assigned administrative law | 19 | | judge. The Commission shall apply the same evidentiary | 20 | | standards, including, but not limited to, those concerning the | 21 | | prudence and reasonableness of the costs incurred by the | 22 | | utility, in the hearing as it would apply in a hearing to | 23 | | review a filing for a general increase in rates under Article | 24 | | IX of this Act. The Commission shall not, however, have the | 25 | | authority in a proceeding under this subsection (d) to | 26 | | consider or order any changes to the structure or protocols of |
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| 1 | | the performance-based formula rate approved pursuant to | 2 | | subsection (c) of this Section. In a proceeding under this | 3 | | subsection (d), the Commission shall enter its order no later | 4 | | than the earlier of 240 days after the utility's filing of its | 5 | | annual update of cost inputs to the performance-based formula | 6 | | rate or December 31. The Commission's determinations of the | 7 | | prudence and reasonableness of the costs incurred for the | 8 | | applicable calendar year shall be final upon entry of the | 9 | | Commission's order and shall not be subject to reopening, | 10 | | reexamination, or collateral attack in any other Commission | 11 | | proceeding, case, docket, order, rule or regulation, provided, | 12 | | however, that nothing in this subsection (d) shall prohibit a | 13 | | party from petitioning the Commission to rehear or appeal to | 14 | | the courts the order pursuant to the provisions of this Act. | 15 | | In the event the Commission does not, either upon | 16 | | complaint or its own initiative, enter upon a hearing within | 17 | | 45 days after the utility files the annual update of cost | 18 | | inputs to its performance-based formula rate, then the costs | 19 | | incurred for the applicable calendar year shall be deemed | 20 | | prudent and reasonable, and the filed charges shall not be | 21 | | subject to reopening, reexamination, or collateral attack in | 22 | | any other proceeding, case, docket, order, rule, or | 23 | | regulation. | 24 | | A participating utility's first filing of the updated cost | 25 | | inputs, and any Commission investigation of such inputs | 26 | | pursuant to this subsection (d) shall proceed notwithstanding |
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| 1 | | the fact that the Commission's investigation under subsection | 2 | | (c) of this Section is still pending and notwithstanding any | 3 | | other law, order, rule, or Commission practice to the | 4 | | contrary. | 5 | | (e) Nothing in subsections (c) or (d) of this Section | 6 | | shall prohibit the Commission from investigating, or a | 7 | | participating utility from filing, revenue-neutral tariff | 8 | | changes related to rate design of a performance-based formula | 9 | | rate that has been placed into effect for the utility. | 10 | | Following approval of a participating utility's | 11 | | performance-based formula rate tariff pursuant to subsection | 12 | | (c) of this Section, the utility shall make a filing with the | 13 | | Commission within one year after the effective date of the | 14 | | performance-based formula rate tariff that proposes changes to | 15 | | the tariff to incorporate the findings of any final rate | 16 | | design orders of the Commission applicable to the | 17 | | participating utility and entered subsequent to the | 18 | | Commission's approval of the tariff. The Commission shall, | 19 | | after notice and hearing, enter its order approving, or | 20 | | approving with modification, the proposed changes to the | 21 | | performance-based formula rate tariff within 240 days after | 22 | | the utility's filing. Following such approval, the utility | 23 | | shall make a filing with the Commission during each subsequent | 24 | | 3-year period that either proposes revenue-neutral tariff | 25 | | changes or re-files the existing tariffs without change, which | 26 | | shall present the Commission with an opportunity to suspend |
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| 1 | | the tariffs and consider revenue-neutral tariff changes | 2 | | related to rate design. | 3 | | (f) Within 30 days after the filing of a tariff pursuant to | 4 | | subsection (c) of this Section, each participating utility | 5 | | shall develop and file with the Commission multi-year metrics | 6 | | designed to achieve, ratably (i.e., in equal segments) over a | 7 | | 10-year period, improvement over baseline performance values | 8 | | as follows: | 9 | | (1) Twenty percent improvement in the System Average | 10 | | Interruption Frequency Index, using a baseline of the | 11 | | average of the data from 2001 through 2010. | 12 | | (2) Fifteen percent improvement in the system Customer | 13 | | Average Interruption Duration Index, using a baseline of | 14 | | the average of the data from 2001 through 2010. | 15 | | (3) For a participating utility other than a | 16 | | combination utility, 20% improvement in the System Average | 17 | | Interruption Frequency Index for its Southern Region, | 18 | | using a baseline of the average of the data from 2001 | 19 | | through 2010. For purposes of this paragraph (3), Southern | 20 | | Region shall have the meaning set forth in the | 21 | | participating utility's most recent report filed pursuant | 22 | | to Section 16-125 of this Act. | 23 | | (3.5) For a participating utility other than a | 24 | | combination utility, 20% improvement in the System Average | 25 | | Interruption Frequency Index for its Northeastern Region, | 26 | | using a baseline of the average of the data from 2001 |
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| 1 | | through 2010. For purposes of this paragraph (3.5), | 2 | | Northeastern Region shall have the meaning set forth in | 3 | | the participating utility's most recent report filed | 4 | | pursuant to Section 16-125 of this Act. | 5 | | (4) Seventy-five percent improvement in the total | 6 | | number of customers who exceed the service reliability | 7 | | targets as set forth in subparagraphs (A) through (C) of | 8 | | paragraph (4) of subsection (b) of 83 Ill. Admin. Code | 9 | | Part 411.140 as of May 1, 2011, using 2010 as the baseline | 10 | | year. | 11 | | (5) Reduction in issuance of estimated electric bills: | 12 | | 90% improvement for a participating utility other than a | 13 | | combination utility, and 56% improvement for a | 14 | | participating utility that is a combination utility, using | 15 | | a baseline of the average number of estimated bills for | 16 | | the years 2008 through 2010. | 17 | | (6) Consumption on inactive meters: 90% improvement | 18 | | for a participating utility other than a combination | 19 | | utility, and 56% improvement for a participating utility | 20 | | that is a combination utility, using a baseline of the | 21 | | average unbilled kilowatthours for the years 2009 and | 22 | | 2010. | 23 | | (7) Unaccounted for energy: 50% improvement for a | 24 | | participating utility other than a combination utility | 25 | | using a baseline of the non-technical line loss | 26 | | unaccounted for energy kilowatthours for the year 2009. |
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| 1 | | (8) Uncollectible expense: reduce uncollectible | 2 | | expense by at least $30,000,000 for a participating | 3 | | utility other than a combination utility and by at least | 4 | | $3,500,000 for a participating utility that is a | 5 | | combination utility, using a baseline of the average | 6 | | uncollectible expense for the years 2008 through 2010. | 7 | | (9) Opportunities for minority-owned and female-owned | 8 | | business enterprises: design a performance metric | 9 | | regarding the creation of opportunities for minority-owned | 10 | | and female-owned business enterprises consistent with | 11 | | State and federal law using a base performance value of | 12 | | the percentage of the participating utility's capital | 13 | | expenditures that were paid to minority-owned and | 14 | | female-owned business enterprises in 2010. | 15 | | The definitions set forth in 83 Ill. Admin. Code Part | 16 | | 411.20 as of May 1, 2011 shall be used for purposes of | 17 | | calculating performance under paragraphs (1) through (3.5) of | 18 | | this subsection (f), provided, however, that the participating | 19 | | utility may exclude up to 9 extreme weather event days from | 20 | | such calculation for each year, and provided further that the
| 21 | | participating utility shall exclude 9 extreme weather event | 22 | | days when calculating each year of the baseline period to the | 23 | | extent that there are 9 such days in a given year of the | 24 | | baseline period. For purposes of this Section, an extreme | 25 | | weather event day is a 24-hour calendar day (beginning at | 26 | | 12:00 a.m. and ending at 11:59 p.m.) during which any weather |
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| 1 | | event (e.g., storm, tornado) caused interruptions for 10,000 | 2 | | or more of the participating utility's customers for 3 hours | 3 | | or more. If there are more than 9 extreme weather event days in | 4 | | a year, then the utility may choose no more than 9 extreme | 5 | | weather event days to exclude, provided that the same extreme | 6 | | weather event days are excluded from each of the calculations | 7 | | performed under paragraphs (1) through (3.5) of this | 8 | | subsection (f). | 9 | | The metrics shall include incremental performance goals | 10 | | for each year of the 10-year period, which shall be designed to | 11 | | demonstrate that the utility is on track to achieve the | 12 | | performance goal in each category at the end of the 10-year | 13 | | period. The utility shall elect when the 10-year period shall | 14 | | commence for the metrics set forth in subparagraphs (1) | 15 | | through (4) and (9) of this subsection (f), provided that it | 16 | | begins no later than 14 months following the date on which the | 17 | | utility begins investing pursuant to subsection (b) of this | 18 | | Section, and when the 10-year period shall commence for the | 19 | | metrics set forth in subparagraphs (5) through (8) of this | 20 | | subsection (f), provided that it begins no later than 14 | 21 | | months following the date on which the Commission enters its | 22 | | order approving the utility's Advanced Metering Infrastructure | 23 | | Deployment Plan pursuant to subsection (c) of Section 16-108.6 | 24 | | of this Act. | 25 | | The metrics and performance goals set forth in | 26 | | subparagraphs (5) through (8) of this subsection (f) are based |
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| 1 | | on the assumptions that the participating utility may fully | 2 | | implement the technology described in subsection (b) of this | 3 | | Section, including utilizing the full functionality of such | 4 | | technology and that there is no requirement for personal | 5 | | on-site notification. If the utility is unable to meet the | 6 | | metrics and performance goals set forth in subparagraphs (5) | 7 | | through (8) of this subsection (f) for such reasons, and the | 8 | | Commission so finds after notice and hearing, then the utility | 9 | | shall be excused from compliance, but only to the limited | 10 | | extent achievement of the affected metrics and performance | 11 | | goals was hindered by the less than full implementation. | 12 | | (f-5) The financial penalties applicable to the metrics | 13 | | described in subparagraphs (1) through (8) of subsection (f) | 14 | | of this Section, as applicable, shall be applied through an | 15 | | adjustment to the participating utility's return on equity of | 16 | | no more than a total of 30 basis points in each of the first 3 | 17 | | years, of no more than a total of 34 basis points
in each of | 18 | | the 3 years thereafter, and of no more than a total of 38 basis | 19 | | points in each
of the 4 years thereafter, as follows: | 20 | | (1) With respect to each of the incremental annual | 21 | | performance goals established pursuant to paragraph (1) of | 22 | | subsection (f) of this Section, | 23 | | (A) for each year that a participating utility | 24 | | other than a combination utility does not achieve the | 25 | | annual goal, the participating utility's return on | 26 | | equity shall be reduced as
follows: during years 1 |
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| 1 | | through 3, by 5 basis points; during years 4 through 6, | 2 | | by 6 basis points; and during years 7 through 10, by 7 | 3 | | basis points; and | 4 | | (B) for each year that a participating utility | 5 | | that is a combination utility does not achieve the | 6 | | annual goal, the participating utility's return on | 7 | | equity shall be reduced as follows: during years 1 | 8 | | through 3, by 10 basis points; during years 4 through | 9 | | 6, by 12
basis points; and during years 7 through 10, | 10 | | by 14 basis points. | 11 | | (2) With respect to each of the incremental annual | 12 | | performance goals established pursuant to paragraph (2) of | 13 | | subsection (f) of this Section, for each year that the | 14 | | participating utility does not achieve each such goal, the | 15 | | participating utility's return on equity shall be reduced | 16 | | as follows: during years 1 through 3, by 5 basis points; | 17 | | during years 4
through 6, by 6 basis points; and during | 18 | | years 7 through 10, by 7 basis points. | 19 | | (3) With respect to each of the incremental annual | 20 | | performance goals established
pursuant to paragraphs (3) | 21 | | and (3.5) of subsection (f) of this Section, for each year | 22 | | that a participating utility other than a combination | 23 | | utility does not achieve both such
goals, the | 24 | | participating utility's return on equity shall be reduced | 25 | | as follows: during years 1 through 3, by 5 basis points; | 26 | | during years 4 through 6, by 6 basis points; and during |
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| 1 | | years 7 through 10, by 7 basis points. | 2 | | (4) With respect to each of the incremental annual | 3 | | performance goals established
pursuant to paragraph (4) of | 4 | | subsection (f) of this Section, for each year that the | 5 | | participating utility does not achieve each such goal, the | 6 | | participating utility's return
on equity shall be reduced | 7 | | as follows: during years 1 through 3, by 5 basis points;
| 8 | | during years 4 through 6, by 6 basis points; and during | 9 | | years 7 through 10, by 7 basis points. | 10 | | (5) With respect to each of the incremental annual | 11 | | performance goals established pursuant to subparagraph (5) | 12 | | of subsection (f) of this Section, for each year that the | 13 | | participating utility does not achieve at least 95% of | 14 | | each such goal, the participating utility's return on | 15 | | equity shall be reduced by 5 basis points for each such | 16 | | unachieved goal. | 17 | | (6) With respect to each of the incremental annual | 18 | | performance goals established pursuant to paragraphs (6), | 19 | | (7), and (8) of subsection (f) of this Section, as | 20 | | applicable, which together measure non-operational | 21 | | customer savings and benefits
relating to the | 22 | | implementation of the Advanced Metering Infrastructure | 23 | | Deployment
Plan, as defined in Section 16-108.6 of this | 24 | | Act, the performance under each such goal shall be | 25 | | calculated in terms of the percentage of the goal | 26 | | achieved. The percentage of goal achieved for each of the |
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| 1 | | goals shall be aggregated, and an average percentage value | 2 | | calculated, for each year of the 10-year period. If the | 3 | | utility does not achieve an average percentage value in a | 4 | | given year of at least 95%, the participating utility's | 5 | | return on equity shall be reduced by 5 basis points. | 6 | | The financial penalties shall be applied as described in | 7 | | this subsection (f-5) for the 12-month period in which the | 8 | | deficiency occurred through a separate tariff mechanism, which | 9 | | shall be filed by the utility together with its metrics. In the | 10 | | event the formula rate tariff established pursuant to | 11 | | subsection (c) of this Section terminates, the utility's | 12 | | obligations under subsection (f) of this Section and this | 13 | | subsection (f-5) shall also terminate, provided, however, that | 14 | | the tariff mechanism established pursuant to subsection (f) of | 15 | | this Section and this subsection (f-5) shall remain in effect | 16 | | until any penalties due and owing at the time of such | 17 | | termination are applied. | 18 | | The Commission shall, after notice and hearing, enter an | 19 | | order within 120 days after the metrics are filed approving, | 20 | | or approving with modification, a participating utility's | 21 | | tariff or mechanism to satisfy the metrics set forth in | 22 | | subsection (f) of this Section. On June 1 of each subsequent | 23 | | year, each participating utility shall file a report with the | 24 | | Commission that includes, among other things, a description of | 25 | | how the participating utility performed under each metric and | 26 | | an identification of any extraordinary events that adversely |
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| 1 | | impacted the utility's performance. Whenever a participating | 2 | | utility does not satisfy the metrics required pursuant to | 3 | | subsection (f) of this Section, the Commission shall, after | 4 | | notice and hearing, enter an order approving financial | 5 | | penalties in accordance with this subsection (f-5). The | 6 | | Commission-approved financial penalties shall be applied | 7 | | beginning with the next rate year. Nothing in this Section | 8 | | shall authorize the Commission to reduce or otherwise obviate | 9 | | the imposition of financial penalties for failing to achieve | 10 | | one or more of the metrics established pursuant to | 11 | | subparagraph (1) through (4) of subsection (f) of this | 12 | | Section. | 13 | | (g) On or before July 31, 2014, each participating utility | 14 | | shall file a report with the Commission that sets forth the | 15 | | average annual increase in the average amount paid per | 16 | | kilowatthour for residential eligible retail customers, | 17 | | exclusive of the effects of energy efficiency programs, | 18 | | comparing the 12-month period ending May 31, 2012; the | 19 | | 12-month period ending May 31, 2013; and the 12-month period | 20 | | ending May 31, 2014. For a participating utility that is a | 21 | | combination utility with more than one rate zone, the weighted | 22 | | average aggregate increase shall be provided. The report shall | 23 | | be filed together with a statement from an independent auditor | 24 | | attesting to the accuracy of the report. The cost of the | 25 | | independent auditor shall be borne by the participating | 26 | | utility and shall not be a recoverable expense. "The average |
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| 1 | | amount paid per kilowatthour" shall be based on the | 2 | | participating utility's tariffed rates actually in effect and | 3 | | shall not be calculated using any hypothetical rate or | 4 | | adjustments to actual charges (other than as specified for | 5 | | energy efficiency) as an input. | 6 | | In the event that the average annual increase exceeds 2.5% | 7 | | as calculated pursuant to this subsection (g), then Sections | 8 | | 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other | 9 | | than this subsection, shall be inoperative as they relate to | 10 | | the utility and its service area as of the date of the report | 11 | | due to be submitted pursuant to this subsection and the | 12 | | utility shall no longer be eligible to annually update the | 13 | | performance-based formula rate tariff pursuant to subsection | 14 | | (d) of this Section. In such event, the then current rates | 15 | | shall remain in effect until such time as new rates are set | 16 | | pursuant to Article IX of this Act, subject to retroactive | 17 | | adjustment, with interest, to reconcile rates charged with | 18 | | actual costs, and the participating utility's voluntary | 19 | | commitments and obligations under subsection (b) of this | 20 | | Section shall immediately terminate, except for the utility's | 21 | | obligation to pay an amount already owed to the fund for | 22 | | training grants pursuant to a Commission order issued under | 23 | | subsection (b) of this Section. | 24 | | In the event that the average annual increase is 2.5% or | 25 | | less as calculated pursuant to this subsection (g), then the | 26 | | performance-based formula rate shall remain in effect as set |
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| 1 | | forth in this Section. | 2 | | For purposes of this Section, the amount per kilowatthour | 3 | | means the total amount paid for electric service expressed on | 4 | | a per kilowatthour basis, and the total amount paid for | 5 | | electric service includes without limitation amounts paid for | 6 | | supply, transmission, distribution, surcharges, and add-on | 7 | | taxes exclusive of any increases in taxes or new taxes imposed | 8 | | after October 26, 2011 (the effective date of Public Act | 9 | | 97-616). For purposes of this Section, "eligible retail | 10 | | customers" shall have the meaning set forth in Section | 11 | | 16-111.5 of this Act. | 12 | | The fact that this Section becomes inoperative as set | 13 | | forth in this subsection shall not be construed to mean that | 14 | | the Commission may reexamine or otherwise reopen prudence or | 15 | | reasonableness determinations already made. | 16 | | (h) By December 31, 2017, the Commission shall prepare and | 17 | | file with the General Assembly a report on the infrastructure | 18 | | program and the performance-based formula rate. The report | 19 | | shall include the change in the average amount per | 20 | | kilowatthour paid by residential customers between June 1, | 21 | | 2011 and May 31, 2017. If the change in the total average rate | 22 | | paid exceeds 2.5% compounded annually, the Commission shall | 23 | | include in the report an analysis that shows the portion of the | 24 | | change due to the delivery services component and the portion | 25 | | of the change due to the supply component of the rate. The | 26 | | report shall include separate sections for each participating |
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| 1 | | utility. | 2 | | Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of | 3 | | this Act, other than this subsection (h) and subsection (i) of | 4 | | this Section , are inoperative after December 31, 2022 for | 5 | | every participating utility, after which time a participating | 6 | | utility shall no longer be eligible to annually update the | 7 | | performance-based formula rate tariff pursuant to subsection | 8 | | (d) of this Section. At such time, the then current rates shall | 9 | | remain in effect until such time as new rates are set pursuant | 10 | | to Article IX of this Act, subject to retroactive adjustment, | 11 | | with interest, to reconcile rates charged with actual costs. | 12 | | The fact that this Section becomes inoperative as set | 13 | | forth in this subsection shall not be construed to mean that | 14 | | the Commission may reexamine or otherwise reopen prudence or | 15 | | reasonableness determinations already made. | 16 | | (i) While a participating utility may use, develop, and | 17 | | maintain broadband systems and the delivery of broadband | 18 | | services, voice-over-internet-protocol services, | 19 | | telecommunications services, and cable and video programming | 20 | | services for use in providing delivery services and Smart Grid | 21 | | functionality or application to its retail customers, | 22 | | including, but not limited to, the installation, | 23 | | implementation and maintenance of Smart Grid electric system | 24 | | upgrades as defined in Section 16-108.6 of this Act, a | 25 | | participating utility is prohibited from offering to its | 26 | | retail customers , directly or indirectly, broadband services |
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| 1 | | or the delivery of broadband services, | 2 | | voice-over-internet-protocol services, telecommunications | 3 | | services, or cable or video programming services, unless they | 4 | | are part of a service directly related to delivery services or | 5 | | Smart Grid functionality or applications as defined in Section | 6 | | 16-108.6 of this Act, and from recovering the costs of such | 7 | | offerings from retail customers. This subsection is | 8 | | inoperative after December 31, 2027 for every participating | 9 | | utility. | 10 | | (j) Nothing in this Section is intended to legislatively | 11 | | overturn the opinion issued in Commonwealth Edison Co. v. Ill. | 12 | | Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137, | 13 | | 1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App. | 14 | | Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be | 15 | | construed as creating a contract between the General Assembly | 16 | | and the participating utility, and shall not establish a | 17 | | property right in the participating utility.
| 18 | | (k) The changes made in subsections (c) and (d) of this | 19 | | Section by Public Act 98-15 are intended to be a restatement | 20 | | and clarification of existing law, and intended to give | 21 | | binding effect to the provisions of House Resolution 1157 | 22 | | adopted by the House of Representatives of the 97th General | 23 | | Assembly and Senate Resolution 821 adopted by the Senate of | 24 | | the 97th General Assembly that are reflected in paragraph (3) | 25 | | of this subsection. In addition, Public Act 98-15 preempts and | 26 | | supersedes any final Commission orders entered in Docket Nos. |
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| 1 | | 11-0721, 12-0001, 12-0293, and 12-0321 to the extent | 2 | | inconsistent with the amendatory language added to subsections | 3 | | (c) and (d). | 4 | | (1) No earlier than 5 business days after May 22, 2013 | 5 | | (the effective date of Public Act 98-15), each | 6 | | participating utility shall file any tariff changes | 7 | | necessary to implement the amendatory language set forth | 8 | | in subsections (c) and (d) of this Section by Public Act | 9 | | 98-15 and a revised revenue requirement under the | 10 | | participating utility's performance-based formula rate. | 11 | | The Commission shall enter a final order approving such | 12 | | tariff changes and revised revenue requirement within 21 | 13 | | days after the participating utility's filing. | 14 | | (2) Notwithstanding anything that may be to the | 15 | | contrary, a participating utility may file a tariff to | 16 | | retroactively recover its previously unrecovered actual | 17 | | costs of delivery service that are no longer subject to | 18 | | recovery through a reconciliation adjustment under | 19 | | subsection (d) of this Section. This retroactive recovery | 20 | | shall include any derivative adjustments resulting from | 21 | | the changes to subsections (c) and (d) of this Section by | 22 | | Public Act 98-15. Such tariff shall allow the utility to | 23 | | assess, on current customer bills over a period of 12 | 24 | | monthly billing periods, a charge or credit related to | 25 | | those unrecovered costs with interest at the utility's | 26 | | weighted average cost of capital during the period in |
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| 1 | | which those costs were unrecovered. A participating | 2 | | utility may file a tariff that implements a retroactive | 3 | | charge or credit as described in this paragraph for | 4 | | amounts not otherwise included in the tariff filing | 5 | | provided for in paragraph (1) of this subsection (k). The | 6 | | Commission shall enter a final order approving such tariff | 7 | | within 21 days after the participating utility's filing. | 8 | | (3) The tariff changes described in paragraphs (1) and | 9 | | (2) of this subsection (k) shall relate only to, and be | 10 | | consistent with, the following provisions of Public Act | 11 | | 98-15: paragraph (2) of subsection (c) regarding year-end | 12 | | capital structure, subparagraph (D) of paragraph (4) of | 13 | | subsection (c) regarding pension assets, and subsection | 14 | | (d) regarding the reconciliation components related to | 15 | | year-end rate base and interest calculated at a rate equal | 16 | | to the utility's weighted average cost of capital. | 17 | | (4) Nothing in this subsection is intended to effect a | 18 | | dismissal of or otherwise affect an appeal from any final | 19 | | Commission orders entered in Docket Nos. 11-0721, 12-0001, | 20 | | 12-0293, and 12-0321 other than to the extent of the | 21 | | amendatory language contained in subsections (c) and (d) | 22 | | of this Section of Public Act 98-15. | 23 | | (l) Each participating utility shall be deemed to have | 24 | | been in full compliance with all requirements of subsection | 25 | | (b) of this Section, subsection (c) of this Section, Section | 26 | | 16-108.6 of this Act, and all Commission orders entered |
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| 1 | | pursuant to Sections 16-108.5 and 16-108.6 of this Act, up to | 2 | | and including May 22, 2013 (the effective date of Public Act | 3 | | 98-15). The Commission shall not undertake any investigation | 4 | | of such compliance and no penalty shall be assessed or adverse | 5 | | action taken against a participating utility for noncompliance | 6 | | with Commission orders associated with subsection (b) of this | 7 | | Section, subsection (c) of this Section, and Section 16-108.6 | 8 | | of this Act prior to such date. Each participating utility | 9 | | other than a combination utility shall be permitted, without | 10 | | penalty, a period of 12 months after such effective date to | 11 | | take actions required to ensure its infrastructure investment | 12 | | program is in compliance with subsection (b) of this Section | 13 | | and with Section 16-108.6 of this Act. Provided further, the | 14 | | following subparagraphs shall apply to a participating utility | 15 | | other than a combination utility: | 16 | | (A) if the Commission has initiated a proceeding | 17 | | pursuant to subsection (e) of Section 16-108.6 of this Act | 18 | | that is pending as of May 22, 2013 (the effective date of | 19 | | Public Act 98-15), then the order entered in such | 20 | | proceeding shall, after notice and hearing, accelerate the | 21 | | commencement of the meter deployment schedule approved in | 22 | | the final Commission order on rehearing entered in Docket | 23 | | No. 12-0298; | 24 | | (B) if the Commission has entered an order pursuant to | 25 | | subsection (e) of Section 16-108.6 of this Act prior to | 26 | | May 22, 2013 (the effective date of Public Act 98-15) that |
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| 1 | | does not accelerate the commencement of the meter | 2 | | deployment schedule approved in the final Commission order | 3 | | on rehearing entered in Docket No. 12-0298, then the | 4 | | utility shall file with the Commission, within 45 days | 5 | | after such effective date, a plan for accelerating the | 6 | | commencement of the utility's meter deployment schedule | 7 | | approved in the final Commission order on rehearing | 8 | | entered in Docket No. 12-0298; the Commission shall reopen | 9 | | the proceeding in which it entered its order pursuant to | 10 | | subsection (e) of Section 16-108.6 of this Act and shall, | 11 | | after notice and hearing, enter an amendatory order that | 12 | | approves or approves as modified such accelerated plan | 13 | | within 90 days after the utility's filing; or | 14 | | (C) if the Commission has not initiated a proceeding | 15 | | pursuant to subsection (e) of Section 16-108.6 of this Act | 16 | | prior to May 22, 2013 (the effective date of Public Act | 17 | | 98-15), then the utility shall file with the Commission, | 18 | | within 45 days after such effective date, a plan for | 19 | | accelerating the commencement of the utility's meter | 20 | | deployment schedule approved in the final Commission order | 21 | | on rehearing entered in Docket No. 12-0298 and the | 22 | | Commission shall, after notice and hearing, approve or | 23 | | approve as modified such plan within 90 days after the | 24 | | utility's filing. | 25 | | Any schedule for meter deployment approved by the | 26 | | Commission pursuant to this subsection (l) shall take into |
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| 1 | | consideration procurement times for meters and other equipment | 2 | | and operational issues. Nothing in Public Act 98-15 shall | 3 | | shorten or extend the end dates for the 5-year or 10-year | 4 | | periods set forth in subsection (b) of this Section or Section | 5 | | 16-108.6 of this Act. Nothing in this subsection is intended | 6 | | to address whether a participating utility has, or has not, | 7 | | satisfied any or all of the metrics and performance goals | 8 | | established pursuant to subsection (f) of this Section. | 9 | | (m) The provisions of Public Act 98-15 are severable under | 10 | | Section 1.31 of the Statute on Statutes. | 11 | | (Source: P.A. 99-143, eff. 7-27-15; 99-642, eff. 7-28-16; | 12 | | 99-906, eff. 6-1-17; 100-840, eff. 8-13-18.) | 13 | | (220 ILCS 5/16-108.30) | 14 | | Sec. 16-108.30. Energy Transition Assistance Fund. | 15 | | (a) The Energy Transition Assistance Fund is hereby | 16 | | created as a special fund in the State Treasury. The Energy | 17 | | Transition Assistance Fund is authorized to receive moneys | 18 | | collected pursuant to this Section. Subject to appropriation, | 19 | | the Department of Commerce and Economic Opportunity shall use | 20 | | moneys from the Energy Transition Assistance Fund consistent | 21 | | with the purposes of this Act. | 22 | | (b) An electric utility serving more than 500,000 | 23 | | customers in the State shall assess an energy transition | 24 | | assistance charge on all its retail customers for the Energy | 25 | | Transition Assistance Fund. The utility's total charge shall |
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| 1 | | be set based upon the value determined by the Department of | 2 | | Commerce and Economic Opportunity pursuant to subsection (d) | 3 | | or (e), as applicable, of Section 605-1075 of the Department | 4 | | of Commerce and Economic Opportunity Law of the Civil | 5 | | Administrative Code of Illinois. For each utility, the charge | 6 | | shall be recovered through a single, uniform cents per | 7 | | kilowatt-hour charge applicable to all retail customers. For | 8 | | each utility, the charge shall not exceed 1.3% of the amount | 9 | | paid per kilowatthour by eligible retail those customers | 10 | | during the year ending May 31, 2009. | 11 | | (c) Within 75 days of the effective date of this | 12 | | amendatory Act of the 102nd General Assembly, each electric | 13 | | utility serving more than 500,000 customers in the State shall | 14 | | file with the Illinois Commerce Commission tariffs | 15 | | incorporating the energy transition assistance charge in other | 16 | | charges stated in such tariffs, which energy transition | 17 | | assistance charges shall become effective no later than the | 18 | | beginning of the first billing cycle that begins on or after | 19 | | January 1, 2022. Each electric utility serving more than | 20 | | 500,000 customers in the State shall, prior to the beginning | 21 | | of each calendar year starting with calendar year 2023, file | 22 | | with the Illinois Commerce Commission tariff revisions to | 23 | | incorporate annual revisions to the energy transition | 24 | | assistance charge as prescribed by the Department of Commerce | 25 | | and Economic Opportunity pursuant to Section 605-1075 of the | 26 | | Department of Commerce and Economic Opportunity Law of the |
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| 1 | | Civil Administrative Code of Illinois so that such revision | 2 | | becomes effective no later than the beginning of the first | 3 | | billing cycle in each respective year. | 4 | | (d) The energy transition assistance charge shall be | 5 | | considered a charge for public utility service. | 6 | | (e) By the 20th day of the month following the month in | 7 | | which the charges imposed by this Section were collected, each | 8 | | electric utility serving more than 500,000 customers in the | 9 | | State shall remit to Department of Revenue all moneys received | 10 | | as payment of the energy transition assistance charge on a | 11 | | return prescribed and furnished by the Department of Revenue | 12 | | showing such information as the Department of Revenue may | 13 | | reasonably require. If a customer makes a partial payment, a | 14 | | public utility may apply such partial payments first to | 15 | | amounts owed to the utility. No customer may be subjected to | 16 | | disconnection of his or her utility service for failure to pay | 17 | | the energy transition assistance charge. | 18 | | If any payment provided for in this subsection exceeds the | 19 | | electric utility's liabilities under this Act, as shown on an | 20 | | original return, the Department may authorize the electric | 21 | | utility to credit such excess payment against liability | 22 | | subsequently to be remitted to the Department under this Act, | 23 | | in accordance with reasonable rules adopted by the Department. | 24 | | All the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, | 25 | | 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 | 26 | | of the Retailers' Occupation Tax Act that are not inconsistent |
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| 1 | | with this Act apply, as far as practicable, to the charge | 2 | | imposed by this Act to the same extent as if those provisions | 3 | | were included in this Act. References in the incorporated | 4 | | Sections of the Retailers' Occupation Tax Act to retailers, to | 5 | | sellers, or to persons engaged in the business of selling | 6 | | tangible personal property mean persons required to remit the | 7 | | charge imposed under this Act. | 8 | | (f) The Department of Revenue shall deposit into the | 9 | | Energy Transition Assistance Fund all moneys remitted to it in | 10 | | accordance with this Section. | 11 | | (g) The Department of Revenue may establish such rules as | 12 | | it deems necessary to implement this Section. | 13 | | (h) The Department of Commerce and Economic Opportunity | 14 | | may establish such rules as it deems necessary to implement | 15 | | this Section.
| 16 | | (Source: P.A. 102-662, eff. 9-15-21.) | 17 | | (220 ILCS 5/16-111.11 new) | 18 | | Sec. 16-111.11. Supplier diversity reporting for | 19 | | non-utilities. | 20 | | (a) The following entities shall submit an annual supplier | 21 | | diversity report to the Commission for a given year: | 22 | | (1) entities that received a contract to provide more | 23 | | than 10,000 renewable energy credits approved by the | 24 | | Commission in a given year pursuant to subparagraph (iii) | 25 | | of paragraph (5) of subsection (b) of Section 16-111.5; |
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| 1 | | (2) entities that received a contract to provide more | 2 | | than 10,000 renewable energy credits approved by the | 3 | | Commission in a given year pursuant to subsection (e) of | 4 | | Section 16-111.5; | 5 | | (3) alternative retail electric suppliers that have | 6 | | yearly sales in the State of 1,000,000,000 kilowatt hours | 7 | | or more, and alternative gas suppliers as defined in | 8 | | Section 19-105 that have yearly sales in the State of | 9 | | 1,000,000 dekatherms or more; | 10 | | (4) entities constructing or operating an HVDC | 11 | | transmission line as defined in Section 1-10 of the | 12 | | Illinois Power Agency Act or entities constructing or | 13 | | operating transmission facilities under a certificate of | 14 | | public convenience and necessity issued pursuant to | 15 | | subsection (b-5) of Section 8-406; | 16 | | (5) entities installing more than 100 energy | 17 | | efficiency measures with a certificate approved by the | 18 | | Commission pursuant to Section 16-128B; and | 19 | | (6) other suppliers of electricity generated from any | 20 | | resource, including, but not limited to, hydro, nuclear, | 21 | | coal, natural gas, and any other supplier of energy within | 22 | | this State. | 23 | | (b) An annual report filed pursuant to this Section shall | 24 | | be filed on an electronic form as designed by the Commission by | 25 | | June 1, 2023 and every June 1 thereafter, in a searchable Adobe | 26 | | PDF format, on all procurement goals and actual spending for |
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| 1 | | women-owned businesses, minority-owned businesses, | 2 | | veteran-owned businesses, and small business enterprises in | 3 | | the previous calendar year related to the performance of | 4 | | obligations in the State of the contracts of licenses listed | 5 | | in subsection (a). These goals shall be expressed as a | 6 | | percentage of the total work performed by the entity | 7 | | submitting the report. The actual spending for all women-owned | 8 | | businesses, minority-owned businesses, veteran-owned | 9 | | businesses, and small business enterprises shall also be | 10 | | expressed as a percentage of the total work performed by the | 11 | | entity submitting the report. Notwithstanding any provision of | 12 | | law to the contrary, any entity with obligations related to | 13 | | equity eligible actions pursuant to the Illinois Power Agency | 14 | | Act may express such goals and spending in those terms. | 15 | | Each participating entity in its annual report shall | 16 | | include the following information related to the entity's | 17 | | operations in the State related to the certificates or | 18 | | activities listed in subsection (a): | 19 | | (1) an explanation of the plan for the next year to | 20 | | increase participation; | 21 | | (2) an explanation of the plan to increase the goals; | 22 | | (3) the areas of procurement each entity shall be | 23 | | actively seeking more participation in the next year; | 24 | | (4) an outline of the plan to alert and encourage | 25 | | potential vendors in that area to seek business from the | 26 | | entity; |
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| 1 | | (5) an explanation of the challenges faced in finding | 2 | | quality vendors and offer any suggestions for what the | 3 | | Commission could do to be helpful to identify those | 4 | | vendors; | 5 | | (6) a list of the certifications the entity | 6 | | recognizes; | 7 | | (7) the point of contact for any potential vendor who | 8 | | wants to do business with the entity and explain the | 9 | | process for a vendor to enroll with the company as a | 10 | | minority-owned, women-owned, or veteran-owned company; and | 11 | | (8) any particular success stories to encourage other | 12 | | entities to emulate best practices. | 13 | | (c) Each annual report shall include as much | 14 | | State-specific data as possible. If the submitting entity does | 15 | | not submit State-specific data, then the entity shall include | 16 | | any national data it does have and explain why it could not | 17 | | submit State-specific data and how it intends to do so in | 18 | | future reports. | 19 | | (d) Each annual report shall include the rules, | 20 | | regulations, and definitions used for the procurement goals in | 21 | | the entity's annual report. | 22 | | (e) Each annual report filed or submitted under this | 23 | | Section shall be submitted with the Commission. The Commission | 24 | | shall not be required or authorized to compel production of | 25 | | any report under this Section. The Commission shall hold an | 26 | | annual workshop open to the public in 2024 and every year |
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| 1 | | thereafter on the state of supplier diversity to | 2 | | collaboratively seek solutions to structural impediments to | 3 | | achieving stated goals, including testimony from participating | 4 | | entities as well as subject matter experts and advocates in a | 5 | | non-antagonistic manner. The Commission shall invite all | 6 | | entities submitting a report pursuant to this Section. The | 7 | | Commission shall publish a database on its website of the | 8 | | point of contact for each participating entity for supplier | 9 | | diversity, along with a list of certifications each company | 10 | | recognizes from the information submitted in each annual | 11 | | report. The Commission shall publish each annual report on its | 12 | | website and shall maintain each annual report for at least 5 | 13 | | years.
| 14 | | Section 15. The Environmental Protection Act is amended by | 15 | | changing Section 9.15 as follows: | 16 | | (415 ILCS 5/9.15) | 17 | | Sec. 9.15. Greenhouse gases. | 18 | | (a) An air pollution construction permit shall not be | 19 | | required due to emissions of greenhouse gases if the | 20 | | equipment, site, or source is not subject to regulation, as | 21 | | defined by 40 CFR 52.21, as now or hereafter amended, for | 22 | | greenhouse gases or is otherwise not addressed in this Section | 23 | | or by the Board in regulations for greenhouse gases. These | 24 | | exemptions do not relieve an owner or operator from the |
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| 1 | | obligation to comply with other applicable rules or | 2 | | regulations. | 3 | | (b) An air pollution operating permit shall not be | 4 | | required due to emissions of greenhouse gases if the | 5 | | equipment, site, or source is not subject to regulation, as | 6 | | defined by Section 39.5 of this Act, for greenhouse gases or is | 7 | | otherwise not addressed in this Section or by the Board in | 8 | | regulations for greenhouse gases. These exemptions do not | 9 | | relieve an owner or operator from the obligation to comply | 10 | | with other applicable rules or regulations. | 11 | | (c) (Blank). | 12 | | (d) (Blank). | 13 | | (e) (Blank).
| 14 | | (f) As used in this Section: | 15 | | "Carbon dioxide emission" means the plant annual CO 2 total | 16 | | output emission as measured by the United States Environmental | 17 | | Protection Agency in its Emissions & Generation Resource | 18 | | Integrated Database (eGrid), or its successor. | 19 | | "Carbon dioxide equivalent emissions" or "CO 2 e" means the | 20 | | sum total of the mass amount of emissions in tons per year, | 21 | | calculated by multiplying the mass amount of each of the 6 | 22 | | greenhouse gases specified in Section 3.207, in tons per year, | 23 | | by its associated global warming potential as set forth in 40 | 24 | | CFR 98, subpart A, table A-1 or its successor, and then adding | 25 | | them all together. | 26 | | "Cogeneration" or "combined heat and power" refers to any |
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| 1 | | system that, either simultaneously or sequentially, produces | 2 | | electricity and useful thermal energy from a single fuel | 3 | | source. | 4 | | "Copollutants" refers to the 6 criteria pollutants that | 5 | | have been identified by the United States Environmental | 6 | | Protection Agency pursuant to the Clean Air Act. | 7 | | "Electric generating unit" or "EGU" means a fossil | 8 | | fuel-fired stationary boiler, combustion turbine, or combined | 9 | | cycle system that serves a generator that has a nameplate | 10 | | capacity greater than 25 MWe and produces electricity for | 11 | | sale. | 12 | | "Environmental justice community" means the definition of | 13 | | that term based on existing methodologies and findings, used | 14 | | and as may be updated by the Illinois Power Agency and its | 15 | | program administrator in the Illinois Solar for All Program. | 16 | | "Equity investment eligible community" or "eligible | 17 | | community" means the geographic areas throughout Illinois that | 18 | | would most benefit from equitable investments by the State | 19 | | designed to combat discrimination and foster sustainable | 20 | | economic growth. Specifically, eligible community means the | 21 | | following areas: | 22 | | (1) areas where residents have been historically | 23 | | excluded from economic opportunities, including | 24 | | opportunities in the energy sector, as defined as R3 areas | 25 | | pursuant to
Section 10-40 of the Cannabis Regulation and | 26 | | Tax Act; and |
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| 1 | | (2) areas where residents have been historically | 2 | | subject to disproportionate burdens of pollution, | 3 | | including pollution from the energy sector, as established | 4 | | by environmental justice communities as defined by the | 5 | | Illinois Power Agency pursuant to the Illinois Power | 6 | | Agency Act, excluding any racial or ethnic indicators. | 7 | | "Equity investment eligible person" or "eligible person" | 8 | | means the persons who would most benefit from equitable | 9 | | investments by the State designed to combat discrimination and | 10 | | foster sustainable economic growth. Specifically, eligible | 11 | | person means the following people: | 12 | | (1) persons whose primary residence is in an equity | 13 | | investment eligible community; | 14 | | (2) persons whose primary residence is in a | 15 | | municipality, or a county with a population under 100,000, | 16 | | where the closure of an electric generating unit or mine | 17 | | has been publicly announced or the electric generating | 18 | | unit or mine is in the process of closing or closed within | 19 | | the last 5 years; | 20 | | (3) persons who are graduates of or currently enrolled | 21 | | in the foster care system; or | 22 | | (4) persons who were formerly incarcerated. | 23 | | "Existing emissions" means: | 24 | | (1) for CO 2 e, the total average tons-per-year of CO 2 e | 25 | | emitted by the EGU or large GHG-emitting unit either in | 26 | | the years 2018 through 2020 or, if the unit was not yet in |
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| 1 | | operation by January 1, 2018, in the first 3 full years of | 2 | | that unit's operation; and | 3 | | (2) for any copollutant, the total average | 4 | | tons-per-year of that copollutant emitted by the EGU or | 5 | | large GHG-emitting unit either in the years 2018 through | 6 | | 2020 or, if the unit was not yet in operation by January 1, | 7 | | 2018, in the first 3 full years of that unit's operation. | 8 | | "Green hydrogen" means a power plant technology in which | 9 | | an EGU creates electric power exclusively from electrolytic | 10 | | hydrogen, in a manner that produces zero carbon and | 11 | | copollutant emissions, using hydrogen fuel that is | 12 | | electrolyzed using a 100% renewable zero carbon emission | 13 | | energy source. | 14 | | "Large greenhouse gas-emitting unit" or "large | 15 | | GHG-emitting unit" means a unit that is an electric generating | 16 | | unit or other fossil fuel-fired unit that itself has a | 17 | | nameplate capacity or
serves a generator that has a nameplate | 18 | | capacity greater than 25 MWe and that produces electricity, | 19 | | including, but not limited to, coal-fired, coal-derived, | 20 | | oil-fired, natural gas-fired, and cogeneration units. | 21 | | "NO x emission rate" means the plant annual NO x total output | 22 | | emission rate as measured by the United States Environmental | 23 | | Protection Agency in its Emissions & Generation Resource | 24 | | Integrated Database (eGrid), or its successor, in the most | 25 | | recent year for which data is available. | 26 | | "Public greenhouse gas-emitting units" or "public |
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| 1 | | GHG-emitting unit" means large greenhouse gas-emitting units, | 2 | | including EGUs, that are wholly owned, directly or indirectly, | 3 | | by one or more municipalities, municipal corporations, joint | 4 | | municipal electric power agencies, electric cooperatives, or | 5 | | other governmental or nonprofit entities, whether organized | 6 | | and created under the laws of Illinois or another state. | 7 | | "SO 2 emission rate" means the "plant annual SO 2 total | 8 | | output emission rate" as measured by the United States | 9 | | Environmental Protection Agency in its Emissions & Generation | 10 | | Resource Integrated Database (eGrid), or its successor, in the | 11 | | most recent year for which data is available. | 12 | | (g) All EGUs and large greenhouse gas-emitting units that | 13 | | use coal or oil as a fuel and are not public GHG-emitting units | 14 | | shall permanently reduce all CO 2 e and copollutant emissions to | 15 | | zero no later than January 1, 2030. | 16 | | (h) All EGUs and large greenhouse gas-emitting units that
| 17 | | use coal as a fuel and are public GHG-emitting units shall
| 18 | | permanently reduce CO 2 e emissions to
zero no later than | 19 | | December 31, 2045. Any source or plant with such units must | 20 | | also reduce their CO 2 e emissions by 45% from existing | 21 | | emissions by no later than January 1, 2035. If the emissions | 22 | | reduction requirement is not achieved by December 31, 2035, | 23 | | the plant shall retire one or more units or otherwise reduce | 24 | | its CO 2 e emissions by 45% from existing emissions by June 30, | 25 | | 2038. | 26 | | (i) All EGUs and large greenhouse gas-emitting units that |
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| 1 | | use gas as a fuel and are not public GHG-emitting units shall | 2 | | permanently reduce all CO 2 e and copollutant emissions to zero, | 3 | | including through unit retirement or the use of 100% green | 4 | | hydrogen or other similar technology that is commercially | 5 | | proven to achieve zero carbon emissions, according to the | 6 | | following: | 7 | | (1) No later than January 1, 2030: all EGUs and large | 8 | | greenhouse gas-emitting units that have a NO x emissions | 9 | | rate of greater than 0.12 lbs/MWh or a SO 2 emission rate of | 10 | | greater than 0.006 lb/MWh, and are located in or within 3 | 11 | | miles of an environmental justice community designated as | 12 | | of January 1, 2021 or an equity investment eligible | 13 | | community. | 14 | | (2) No later than January 1, 2040: all EGUs and large | 15 | | greenhouse gas-emitting units that have a NO x emission | 16 | | rate of greater than 0.12 lbs/MWh or a SO 2 emission rate | 17 | | greater than 0.006 lb/MWh, and are not located in or | 18 | | within 3 miles of an environmental justice community | 19 | | designated as of January 1, 2021 or an equity investment | 20 | | eligible community. After January 1, 2035, each such EGU | 21 | | and large greenhouse gas-emitting unit shall reduce its | 22 | | CO 2 e emissions by at least 50% from its existing emissions | 23 | | for CO 2 e, and shall be limited in operation to, on average, | 24 | | 6 hours or less per day, measured over a calendar year, and | 25 | | shall not run for more than 24 consecutive hours except in | 26 | | emergency conditions, as designated by a Regional |
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| 1 | | Transmission Organization or Independent System Operator. | 2 | | (3) No later than January 1, 2035: all EGUs and large | 3 | | greenhouse gas-emitting units that began operation prior | 4 | | to the effective date of this amendatory Act of the 102nd | 5 | | General Assembly and have a NO x emission rate of less than | 6 | | or equal to 0.12 lb/MWh and a SO 2 emission rate less than | 7 | | or equal to 0.006 lb/MWh, and are located in or within 3 | 8 | | miles of an environmental justice community designated as | 9 | | of January 1, 2021 or an equity investment eligible | 10 | | community. Each such EGU and large greenhouse gas-emitting | 11 | | unit shall reduce its CO 2 e emissions by at least 50% from | 12 | | its existing emissions for CO 2 e no later than January 1, | 13 | | 2030. | 14 | | (4) No later than January 1, 2040: All remaining EGUs | 15 | | and large greenhouse gas-emitting units that have a heat | 16 | | rate greater than or equal to 7000 BTU/kWh. Each such EGU | 17 | | and Large greenhouse gas-emitting unit shall reduce its | 18 | | CO 2 e emissions by at least 50% from its existing emissions | 19 | | for CO 2 e no later than January 1, 2035. | 20 | | (5) No later than January 1, 2045: all remaining EGUs | 21 | | and large greenhouse gas-emitting units. | 22 | | (j) All EGUs and large greenhouse gas-emitting units that | 23 | | use gas as a fuel and are public GHG-emitting units shall | 24 | | permanently reduce all CO 2 e and copollutant emissions to zero, | 25 | | including through unit retirement or the use of 100% green | 26 | | hydrogen or other similar technology that is commercially |
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| 1 | | proven to achieve zero carbon emissions by January 1, 2045. | 2 | | (k) All EGUs and large greenhouse gas-emitting units that | 3 | | utilize combined heat and power or cogeneration technology | 4 | | shall permanently reduce all CO 2 e and copollutant emissions to | 5 | | zero, including through unit retirement or the use of 100% | 6 | | green hydrogen or other similar technology that is | 7 | | commercially proven to achieve zero carbon emissions by | 8 | | January 1, 2045. | 9 | | (k-5) No EGU or large greenhouse gas-emitting unit that | 10 | | uses gas as a fuel and is not a public GHG-emitting unit may | 11 | | emit, in any 12-month period, CO 2 e or copollutants in excess of | 12 | | that unit's existing emissions for those pollutants. | 13 | | (l) Notwithstanding subsections (g) through (k-5), large | 14 | | GHG-emitting units including EGUs may temporarily continue | 15 | | emitting CO 2 e and copollutants greenhouse gases after any | 16 | | applicable deadline specified in any of subsections (g) | 17 | | through (k-5) if it has been determined, as described in | 18 | | paragraphs (1) and (2) of this subsection, that ongoing | 19 | | operation of the EGU is necessary to maintain power grid | 20 | | supply and reliability or ongoing operation of large | 21 | | GHG-emitting unit that is not an EGU is necessary to serve as | 22 | | an emergency backup to operations. Up to and including the | 23 | | occurrence of an emission reduction deadline under subsection | 24 | | (i), all EGUs and large GHG-emitting units must comply with | 25 | | the following terms: | 26 | | (1) if an EGU or large GHG-emitting unit that is a |
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| 1 | | participant in a regional transmission organization | 2 | | intends to retire, it must submit documentation to the | 3 | | appropriate regional transmission organization by the | 4 | | appropriate deadline that meets all applicable regulatory | 5 | | requirements necessary to obtain approval to permanently | 6 | | cease operating the large GHG-emitting unit; | 7 | | (2) if any EGU or large GHG-emitting unit that is a | 8 | | participant in a regional transmission organization | 9 | | receives notice that the regional transmission | 10 | | organization has determined that continued operation of | 11 | | the unit is required, the unit may continue operating | 12 | | until the issue identified by the regional transmission | 13 | | organization is resolved. The owner or operator of the | 14 | | unit must cooperate with the regional transmission | 15 | | organization in resolving the issue and must reduce its | 16 | | emissions to zero, consistent with the requirements under | 17 | | subsection (g), (h), (i), (j), (k), or (k-5), as | 18 | | applicable, as soon as practicable when the issue | 19 | | identified by the regional transmission organization is | 20 | | resolved; and | 21 | | (3) any large GHG-emitting unit that is not a | 22 | | participant in a regional transmission organization shall | 23 | | be allowed to continue emitting CO 2 e and copollutants | 24 | | greenhouse gases after the zero-emission date specified in | 25 | | subsection (g), (h), (i), (j), (k), or (k-5), as | 26 | | applicable, in the capacity of an emergency backup unit if |
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| 1 | | approved by the Illinois Commerce Commission. | 2 | | (m) No variance, adjusted standard, or other regulatory | 3 | | relief otherwise available in this Act may be granted to the | 4 | | emissions reduction and elimination obligations in this | 5 | | Section. | 6 | | (n) By June 30 of each year, beginning in 2025, the Agency | 7 | | shall prepare and publish on its website a report setting | 8 | | forth the actual greenhouse gas emissions from individual | 9 | | units and the aggregate statewide emissions from all units for | 10 | | the prior year. | 11 | | (o) Every 5 years beginning in 2025, the Environmental | 12 | | Protection Agency, Illinois Power Agency, and Illinois | 13 | | Commerce Commission shall jointly prepare, and release | 14 | | publicly, a report to the General Assembly that examines the | 15 | | State's current progress toward its renewable energy resource | 16 | | development goals, the status of CO 2 e and copollutant | 17 | | emissions reductions, the current status and progress toward | 18 | | developing and implementing green hydrogen technologies, the | 19 | | current and projected status of electric resource adequacy and | 20 | | reliability throughout the State for the period beginning 5 | 21 | | years ahead, and proposed solutions for any findings. The | 22 | | Environmental Protection Agency, Illinois Power Agency, and | 23 | | Illinois Commerce Commission shall consult PJM | 24 | | Interconnection, LLC and Midcontinent Independent System | 25 | | Operator, Inc., or their respective successor organizations | 26 | | regarding forecasted resource adequacy and reliability needs, |
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| 1 | | anticipated new generation interconnection, new transmission | 2 | | development or upgrades, and any announced large GHG-emitting | 3 | | unit closure dates and include this information in the report. | 4 | | The report shall be released publicly by no later than | 5 | | December 15 of the year it is prepared. If the Environmental | 6 | | Protection Agency, Illinois Power Agency, and Illinois | 7 | | Commerce Commission jointly conclude in the report that the | 8 | | data from the regional grid operators, the pace of renewable | 9 | | energy development, the pace of development of energy storage | 10 | | and demand response utilization, transmission capacity, and | 11 | | the CO 2 e and copollutant emissions reductions required by | 12 | | subsection (i) or (k-5) reasonably demonstrate that a resource | 13 | | adequacy shortfall will occur, including whether there will be | 14 | | sufficient in-state capacity to meet the zonal requirements of | 15 | | MISO Zone 4 or the PJM ComEd Zone, per the requirements of the | 16 | | regional transmission organizations, or that the regional | 17 | | transmission operators determine that a reliability violation | 18 | | will occur during the time frame the study is evaluating, then | 19 | | the Illinois Power Agency, in conjunction with the | 20 | | Environmental Protection Agency shall develop a plan to reduce | 21 | | or delay CO 2 e and copollutant emissions reductions | 22 | | requirements only to the extent and for the duration necessary | 23 | | to meet the resource adequacy and reliability needs of the | 24 | | State, including allowing any plants whose emission reduction | 25 | | deadline has been identified in the plan as creating a | 26 | | reliability concern to continue operating, including operating |
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| 1 | | with reduced emissions or as emergency backup where | 2 | | appropriate. The plan shall also consider the use of renewable | 3 | | energy, energy storage, demand response, transmission | 4 | | development, or other strategies to resolve the identified | 5 | | resource adequacy shortfall or reliability violation. | 6 | | (1) In developing the plan, the Environmental | 7 | | Protection Agency and the Illinois Power Agency shall hold | 8 | | at least one workshop open to, and accessible at a time and | 9 | | place convenient to, the public and shall consider any | 10 | | comments made by stakeholders or the public. Upon | 11 | | development of the plan, copies of the plan shall be | 12 | | posted and made publicly available on the Environmental | 13 | | Protection Agency's, the Illinois Power Agency's, and the | 14 | | Illinois Commerce Commission's websites. All interested | 15 | | parties shall have 60 days following the date of posting | 16 | | to provide comment to the Environmental Protection Agency | 17 | | and the Illinois Power Agency on the plan. All comments | 18 | | submitted to the Environmental Protection Agency and the | 19 | | Illinois Power Agency shall be encouraged to be specific, | 20 | | supported by data or other detailed analyses, and, if | 21 | | objecting to all or a portion of the plan, accompanied by | 22 | | specific alternative wording or proposals. All comments | 23 | | shall be posted on the Environmental Protection Agency's, | 24 | | the Illinois Power Agency's, and the Illinois Commerce | 25 | | Commission's websites. Within 30 days following the end of | 26 | | the 60-day review period, the Environmental Protection |
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| 1 | | Agency and the Illinois Power Agency shall revise the plan | 2 | | as necessary based on the comments received and file its | 3 | | revised plan with the Illinois Commerce Commission for | 4 | | approval. | 5 | | (2) Within 60 days after the filing of the revised | 6 | | plan at the Illinois Commerce Commission, any person | 7 | | objecting to the plan shall file an objection with the | 8 | | Illinois Commerce Commission. Within 30 days after the | 9 | | expiration of the comment period, the Illinois Commerce | 10 | | Commission shall determine whether an evidentiary hearing | 11 | | is necessary. The Illinois Commerce Commission shall also | 12 | | host 3 public hearings within 90 days after the plan is | 13 | | filed. Following the evidentiary and public hearings, the | 14 | | Illinois Commerce Commission shall enter its order | 15 | | approving or approving with modifications the reliability | 16 | | mitigation plan within 180 days. | 17 | | (3) The Illinois Commerce Commission shall only | 18 | | approve the plan if the Illinois Commerce Commission | 19 | | determines that it will resolve the resource adequacy or | 20 | | reliability deficiency identified in the reliability | 21 | | mitigation plan at the least amount of CO 2 e and copollutant | 22 | | emissions, taking into consideration the emissions impacts | 23 | | on environmental justice communities, and that it will | 24 | | ensure adequate, reliable, affordable, efficient, and | 25 | | environmentally sustainable electric service at the lowest | 26 | | total cost over time, taking into account the impact of |
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| 1 | | increases in emissions. | 2 | | (4) If the resource adequacy or reliability deficiency | 3 | | identified in the reliability mitigation plan is resolved | 4 | | or reduced, the Environmental Protection Agency and the | 5 | | Illinois Power Agency may file an amended plan adjusting | 6 | | the reduction or delay in CO 2 e and copollutant emission | 7 | | reduction requirements identified in the plan. | 8 | | (Source: P.A. 102-662, eff. 9-15-21.) | 9 | | Section 99. Effective date. This Act takes effect upon | 10 | | becoming law.".
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