220 ILCS 5/16-107.8

(220 ILCS 5/16-107.8)

(This Section may contain text from a Public Act with a delayed effective date)

Sec. 16-107.8. Time-of-use pricing.

(a) The General Assembly finds that market-based time-of-use rates and pricing plans can reduce costs and help the State achieve its energy policy goals by improving load shape, encouraging energy conservation, and shifting usage away from periods where fossil fuels are used. By providing consumers information relating the costs of service to the time of energy usage, time-of-use rates can help consumers reduce energy bills by using electricity when it is less costly.

(b) An electric utility shall offer at least one market-based rate option for eligible retail customers, including, but not limited to, customers participating in net electricity metering under the terms of Section 16-107.5, who choose to take power and energy supply service from the utility. The provisions of Section 16-107.5 notwithstanding, energy credits for net-metering customers shall be valued at the same price per kilowatt-hour as the price per kilowatt-hour that the electric service provider would charge for kilowatt-hour energy sales during the same hourly time-of-use period. The utility shall file its time-of-use rate tariff no later than 120 days after the effective date of this amendatory Act of the 104th General Assembly. The tariff or tariffs shall be subject to the following requirements:

(1) If more than one tariff is proposed, at least one tariff shall include at least the following 3 time blocks:

(A) a peak time block of consecutive hours best reflecting the average consecutive highest system power and energy use per hour in a calendar day;

(B) an off-peak time block, which reflects the next highest system power and energy demands in a calendar day; and

(C) a super-off-peak time block, defined as all other hours in a calendar day.

Time blocks shall reflect the hour and weekday for which the costs of services outlined in paragraphs (2) and (3) of this subsection (b) are charged.

(2) The tariff or tariffs shall describe the methodology for determining the prices for each time block using the applicable average zonal and capacity prices of the PJM Interconnection, LLC (PJM) and the Midcontinent Independent System Operator (MISO) and describe the manner in which customers who elect time-of-use pricing will be provided with the time blocks, associated block pricing, and day-ahead energy prices. Costs for electric capacity shall be determined in a manner that recovers the capacity obligation costs incurred by the electric utility.

(3) The time-of-use rate shall include the costs of transmission services and the charges for network integration transmission service, transmission enhancement, and locational reliability, as these terms are defined in the PJM and MISO Open Access Transmission Tariffs and manuals. If the Open Access Transmission Tariff or the manuals subsequently rename those terms, the services reflected under those terms shall continue to be included in the time-of-use rate described in this paragraph (3).

(4) Adjustments to the charges set by the tariff may be made on a monthly basis and adjustments to the time blocks may be made on an annual basis. A utility shall submit to the Commission, through a supplemental information sheet, a tariff schedule. Customers shall be provided at least 2 weeks advance notice of any changes to charges or time blocks.

(5) A purchased energy adjustment shall be calculated to fully recover costs to supply power and energy. A utility shall procure power and energy in the applicable day-ahead market.

(c) The Commission shall approve or approve with modifications the tariff or tariffs after notice and hearing. A proceeding under this subsection (c) may not exceed 240 days in length.

(d) An electric utility shall submit an annual report to the Commission no later than April 1 of each year that describes the operation and results of the rate option, including information concerning the number and types of customers using the rate option, changes in customers' energy use patterns, an assessment of the value of the rate option to both participants and nonparticipants, and recommendations concerning modification of the rate option and the tariff or tariffs filed under this Section. The report shall be made available to the public on the Commission's website.

(e) Once a tariff or tariffs has been in effect, the Commission may, upon complaint, petition, or its own initiative, open a proceeding to investigate whether changes or modifications, consistent with the requirements of this Section, to the tariff or tariffs, rate option administration, or any other rate option element is necessary to achieve the goals described in subsection (a). Such a proceeding may not last more than 180 days from the date upon which the investigation was opened.

(f) An electric utility shall be entitled to recover prudent and reasonable costs incurred in complying with this Section from its eligible retail customers.

(g) An electric utility's tariff or tariffs filed under this Section shall be subject to the provisions of Article IX as long as such provisions do not conflict with this Section.

(h) This Section does not apply to an electric utility that provides service to 100,000 or fewer customers.

(Source: P.A. 104-458, eff. 6-1-26.)