State of Illinois
90th General Assembly
Legislation

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90_HB1998

      New Act
      65 ILCS 5/8-11-2          from Ch. 24, par. 8-11-2
      220 ILCS 5/3-105          from Ch. 111 2/3, par. 3-105
      220 ILCS 5/4-305          from Ch. 111 2/3, par. 4-305
      220 ILCS 5/7-108
      220 ILCS 5/8-404          from Ch. 111 2/3, par. 8-404
      220 ILCS 5/8-406          from Ch. 111 2/3, par. 8-406
      220 ILCS 5/9-212          from Ch. 111 2/3, par. 9-212
      220 ILCS 5/9-213          from Ch. 111 2/3, par. 9-213
      220 ILCS 5/9-214          from Ch. 111 2/3, par. 9-214
      220 ILCS 5/8-402 rep.
      220 ILCS 5/8-402.1 rep.
      220 ILCS 5/8-407 rep.
      220 ILCS 5/9-215 rep.
      220 ILCS 5/9-215.1 rep.
      220 ILCS 5/9-217 rep.
          Creates the Electric Customer Choice and Protection  Act.
      Provides  that  consumers  may  purchase electricity from any
      electric  service  provider.    Requires  incumbent  electric
      utilities to provide bundled electric service.  Provides  for
      the  establishment  of  bundled  service rates and transition
      period rates.   Authorizes  the  imposition  of  a  financial
      viability  and  reliability charge.  Provides for a State and
      Municipal Revenue Task Force.  Provides  for  an  electricity
      use   tax.   Creates  the  Illinois  Low-Income  Home  Energy
      Assistance Program Fund. Amends the Illinois  Municipal  Code
      and  the  Public Utilities Act to make accommodating changes.
      Effective immediately.
                                                    LRB9004576JSgcA
                                              LRB9004576JSgcA
 1        AN  ACT  to  create  the  Electric  Customer  Choice  and
 2    Protection Act.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  1.  Short  Title.   This Act may be cited as the
 6    Electric Customer Choice and Protection Act.
 7        Section  5.  Legislative  findings;  electric   services.
 8    With  respect to the provision and sale of electric power and
 9    electric services within this  State,  the  General  Assembly
10    finds that:
11        (1)  Over  the  past 20 years, the federal government and
12    State  government  have  introduced  competition  in  several
13    industries that previously  had  been  regulated  as  natural
14    monopolies.
15        (2)  Many  state governments are implementing or studying
16    policies that would  create  a  competitive  market  for  the
17    generation of electricity.
18        (3)  Because   of   advances   in   electric   generation
19    technology  and  federal  initiatives  to  encourage  greater
20    competition  in  the  wholesale electric market, it is now in
21    the public interest to  permit  retail  customers  to  obtain
22    direct  access  to a competitive generation market as long as
23    safe and affordable transmission and distribution service  is
24    available at levels of reliability that are currently enjoyed
25    by the citizens and business of this State.
26        (4)  It  is  the  policy  of  the  State that by this Act
27    Illinois shall begin the transition from a regulated monopoly
28    model for the  provision  of  electricity  to  a  competitive
29    market  for electric services in order to benefit all classes
30    of customers and to promote Illinois' ability to  compete  in
31    the national and global marketplace for industry and jobs.
                            -2-               LRB9004576JSgcA
 1        (5)  In   moving   toward   greater  competition  in  the
 2    electricity  generation  market,  the  State  must  reconcile
 3    transition   issues   that   affect   customers,   utilities,
 4    investors,  local  communities  and  non-utility  electricity
 5    services suppliers.
 6        (6)  At a minimum, Illinois must ensure  the  safety  and
 7    reliability  of  the  electric  system,  ensure the continued
 8    provision of  high  quality  customer  services,  and  assist
 9    low-income customers to afford electric service.
10        (7)  The purpose of this Act is to amend existing law and
11    regulations  and  to  establish  standards  and procedures in
12    order to establish direct access by retail electric customers
13    to the competitive market for the generation  of  electricity
14    while  maintaining  the safety and reliability of the State's
15    electric system.
16        (8)  Under current law, competition is developing in  the
17    wholesale  market for the generation of electricity; however,
18    the  generation,  transmission  and  distribution  of  retail
19    electricity is provided by public utilities under combined or
20    bundled rates regulated by the Illinois Commerce  Commission.
21    It is the policy of this State that laws and procedures shall
22    provide  for an orderly transition from the current regulated
23    structure to a  free  market  structure  under  which  retail
24    customers  will  have direct access to the competitive market
25    for electric power and electric services.
26        (9)  This Act requires  electric  utilities  to  unbundle
27    their  rates  and services and provide open access over their
28    delivery system to allow competitive suppliers  to  use  that
29    system  to sell electricity and electric services directly to
30    customers  in  Illinois.   Therefore,   the   generation   of
31    electricity  will  no longer be regulated as a public utility
32    except as provided by this Act.
33        (10)  It is, however, in  the  public  interest  for  the
34    transmission  and  distribution of electricity to continue to
                            -3-               LRB9004576JSgcA
 1    be regulated by the Illinois Commerce Commission.  It is also
 2    in the public interest  for  electric  service  providers  to
 3    register  with  the  Commission and be required to abide by a
 4    code of conduct  established  by  the  Commission.   Electric
 5    distribution  companies should continue to be the provider of
 6    last resort in order to ensure the availability of  universal
 7    electric  service, unless another provider is approved by the
 8    Illinois Commerce Commission.
 9        (11)  The functional unbundling of the services which are
10    presently provided by  incumbent  utilities  should,  to  the
11    maximum  extent  practicable,  be  revenue  neutral  from the
12    perspective  of  the  incumbent  utilities,  the   customers,
13    municipalities  and  the  State.   The  unbundling  of  these
14    services  is  not  intended  to  provide the utilities or any
15    other party with  an  additional  opportunity  to  propose  a
16    change  in the overall revenue requirements of the utilities,
17    nor is the unbundling of these services intended to result in
18    a  shifting  of  cost  responsibility  between  customers  or
19    classes of customers.
20        (12)  Consistent  with  the  Public  Utility   Regulatory
21    Policy  Act  of  1978  and  the National Energy Policy Act of
22    1992, it is the policy of this State to encourage and support
23    the development of  cogeneration  and  other  forms  of  self
24    generation   as  an  efficient,  environmentally  beneficial,
25    competitive energy resource that will enhance the reliability
26    of local electric supply and promote local business growth.
27        (13)  There should be created an Illinois Low-Income Home
28    Energy  Assistance  Program  Fund  for  electricity  for  the
29    purpose of replacing eliminated federal fund  assistance  for
30    eligible low income residential customers.
31        Section  10.  Definitions.   Unless  otherwise specified,
32    the following terms are used in this Act as herein defined.
33        "Aggregation" means combination of supply or  combination
                            -4-               LRB9004576JSgcA
 1    of customer demand for electric power and electric services.
 2        "Ancillary   services"  means  those  services  that  the
 3    Federal Energy Regulatory Commission or the Illinois Commerce
 4    Commission, whichever is appropriate, finds are necessary  to
 5    support the delivery of capacity and energy from resources to
 6    loads,   while   maintaining   reliable   operation   of  the
 7    transmission and distribution system.
 8        "Bond and preferred stock maturity allowance"  means  the
 9    amount  of  long-term debt and preferred stock outstanding as
10    of December 31, 1996, divided by 30.
11        "Bundled services" means the composite  electric  service
12    provided   as   a   package   to   the   customer,  including
13    separately-priced components  for  generation,  transmission,
14    distribution,  ancillary and other electric service necessary
15    to provide, deliver, and measure electric power  and  service
16    provided  to  the  customer  and  which  is comparable to the
17    service that was provided as of January 1, 1997.
18        "Capital  expenditures"  means  reasonable  and   prudent
19    expenditures  for  the improvement or betterment of a capital
20    asset, or reasonable and prudent  expenditures  made  in  the
21    purchase or sale of a non-generation capital asset.
22        "Certified  capacity"  means capacity of operational self
23    generation  equipment  which  is  demonstrated   to   be   in
24    accordance   with  NERC  or  MAIN  guidelines  applicable  to
25    generation owned or operated by a utility.
26        "Commission" means the Illinois Commerce Commission.
27        "Customer" means retail electric customer.
28        "Delivery services" means the  services  associated  with
29    use  of  an  electric  distribution company's transmission or
30    distribution facilities, or both, to deliver electric  power,
31    including,  but  not limited to, all services associated with
32    constructing, owning, operating, and maintaining an  electric
33    transmission and distribution system.
34        "Department" means the Department of Revenue.
                            -5-               LRB9004576JSgcA
 1        "Direct  access"  means  the  right  of  electric service
 2    providers and customers to utilize and interconnect with  the
 3    electric   transmission   and   distribution   system   on  a
 4    nondiscriminatory basis, at rates, terms  and  conditions  of
 5    service  comparable to the incumbent utility's own use of the
 6    system  to  transport  electric  power  from  any  source  of
 7    electric power to any customer.
 8        "Director" means the Director of Revenue.
 9        "Distribution   company"   means   a   person   providing
10    facilities and services  for  the  distribution  of  electric
11    power  to  retail  electric  customers or that portion of the
12    incumbent utility which provides facilities and services  for
13    the  distribution  of electric power, except that it does not
14    mean a building or facility owner or  owner's  designee  that
15    manages   the   internal  distribution  system  serving  such
16    building or facility.
17        "Electric  distribution  company"  means  a  transmission
18    company or a distribution  company,  or  both,  and  includes
19    incumbent utilities.
20        "Electric  power"  means  electric  capacity and electric
21    energy.
22        "Electric service" means the production, transmission, or
23    delivery  of  electric  power,  and  any  unbundled  electric
24    service or ancillary service.
25        "Electric service provider" means a person engaged in the
26    selling  of  electric  power  or  related   retail   electric
27    services, or both, to retail electric customers except for an
28    incumbent  utility  selling  within  its service area, except
29    that it does not mean  a  facility  owner  that  manages  the
30    internal   distribution   system  serving  such  building  or
31    facility and supply electric power  or  other  related  power
32    services.
33        "Facility  owner"  means  the  owner  of  a  building  or
34    facility or the owner's designee.
                            -6-               LRB9004576JSgcA
 1        "Financial   viability"   means   operating   cash   flow
 2    sufficient  for  payments  of capital expenditures, preferred
 3    dividends, bond and preferred stock maturity  allowance,  and
 4    payments to the utility's decommissioning trust funds.
 5        "Financial  viability  and  reliability charge" means the
 6    charge  which  provides  for  the  financial  viability   and
 7    reliability of the incumbent utilities.
 8        "Fund"   means   the   Illinois  Low-Income  Home  Energy
 9    Assistance Program Fund.
10        "Incumbent utility"  means  a  public  utility  which  is
11    regulated  under  the provisions of the Public Utilities Act,
12    to the extent that it is operating  within  its  own  service
13    area.
14        "Maintaining  a  place of business in this State," or any
15    like term, means having or  maintaining  within  this  State,
16    directly  or  by a subsidiary, an office, distribution house,
17    sales house, warehouse or other place  of  business,  or  any
18    agent  or  other  representative  operating within this State
19    under the authority of any person or that person's subsidiary
20    engaged in the business of distributing, supplying, wheeling,
21    transmitting,  furnishing,  or  selling  electric  power   or
22    electric  services to persons within this State, irrespective
23    of  whether  the  place  of  business  or  agent   or   other
24    representative is located here permanently or temporarily, or
25    whether  the person or the person's subsidiary engaged in the
26    business of distributing, supplying, wheeling,  transmitting,
27    furnishing, or selling electric power or electric services is
28    licensed to do business in this State.
29        "Operating  cash  flow"  means  the  aggregate  amount of
30    consolidated net income  after  adding  thereto  consolidated
31    interest  expense  (adjusted  to  include costs recognized on
32    early  retirement  of  debt),  income   taxes,   depreciation
33    expense,  amortization  expense,  any noncash amortization or
34    debt issuance costs, any  nonrecurring,  noncash  charges  to
                            -7-               LRB9004576JSgcA
 1    earnings and any negative accretion recognition.
 2        "Person"  means  any  natural  individual,  firm,  trust,
 3    estate,  partnership, association, joint stock company, joint
 4    adventure, corporation, or a receiver, trustee, guardian,  or
 5    other  representative appointed by order of any court, or any
 6    city, town, county, or other political  subdivision  of  this
 7    State.
 8        "Preferred  dividend"  means  funds  paid to one class of
 9    stockholders in priority to that to be paid to another class.
10        "Purchase  price"  means  the  consideration   paid   for
11    electric  power  distributed, supplied, wheeled, transmitted,
12    furnished, or sold for use or consumption and not for resale,
13    and  for  all  electric  services  rendered   in   connection
14    therewith, and includes cash, services, and property of every
15    kind   and  nature,  and  shall  be  determined  without  any
16    deduction on account of the  cost  of  service,  product,  or
17    commodity  supplied,  the  cost  of  materials used, labor or
18    service costs, or any  other  expense  whatsoever.   However,
19    "purchase price" does not include any of the following:
20             (1)  Any charge for a dishonored check.
21             (2)  Any  finance or credit charge, penalty, deposit
22        or charge for delayed payment,  or  discount  for  prompt
23        payment.
24             (3)  Any   penalty   assessed   for   violation   of
25        provisions  of  the  Public Utilities Act or for unlawful
26        interference with public utility service.
27             (4)  Any charge for reconnection of service  or  for
28        replacement or relocation of facilities.
29             (5)  Any   advance   or   contribution   in  aid  of
30        construction.
31             (6)  Any charge for repair, inspection, or servicing
32        of equipment located on customer premises.
33             (7)  Any  charge  for  the  leasing  or  rental   of
34        equipment,   the  leasing  or  rental  of  which  is  not
                            -8-               LRB9004576JSgcA
 1        necessary   to   distributing,    supplying,    wheeling,
 2        transmitting, furnishing or selling electric power.
 3             (8)  Any  sale  to a purchaser if the person engaged
 4        in the business  of  distributing,  supplying,  wheeling,
 5        transmitting,  furnishing,  or  selling electric power or
 6        electric services  is  prohibited  by  federal  or  State
 7        constitution,   treaty,  convention,  statute,  or  court
 8        decision from recovering the related tax  liability  from
 9        the purchaser.
10             (9)  Any charges added to purchasers' bills pursuant
11        to  the  provisions  of Section 9-221 or Section 9-222 of
12        the  Public  Utilities  Act  or  any  charges  added   to
13        purchasers'  bills  by persons engaged in the business of
14        distributing,    supplying,    wheeling,    transmitting,
15        furnishing,  or  selling  electric  power   or   electric
16        services  who  are  not subject to rate regulation by the
17        Illinois  Commerce  Commission   for   the   purpose   of
18        recovering  any  of  the tax liabilities or other amounts
19        specified in those provisions  of  the  Public  Utilities
20        Act.
21             (10)  Charges that are added to purchasers' bills on
22        account of the duty of the person engaged in the business
23        of   distributing,   supplying,  wheeling,  transmitting,
24        furnishing,  or  selling  electric  power   or   electric
25        services  to collect, from the purchaser, the tax imposed
26        by this Act.
27             (11)  Consideration  paid  by  business  enterprises
28        certified under Section 9-222.1 of the  Public  Utilities
29        Act  to the extent of the exemption and during the period
30        of time specified  by  the  Department  of  Commerce  and
31        Community Affairs. In case credit is extended, the amount
32        thereof shall be included only as, and when, payments are
33        received.
34        "Purchaser"  means any person who acquires electric power
                            -9-               LRB9004576JSgcA
 1    or electric services for use,  and  not  for  resale,  for  a
 2    purchase price.
 3        "Related  retail  electric services" means those services
 4    which are used in the provision of electric power, including,
 5    but not limited to, one or more of  the  following  services:
 6    provision  of  a  meter; meter maintenance and testing; meter
 7    reading; and billing and collection.
 8        "Retail electric customer" means any person who purchases
 9    electric power  or  electric  services  at  retail.   "Retail
10    electric  customer" does not include, however:  (a) customers
11    of public utilities  that  are  owned  and  operated  by  any
12    political subdivision, public institution of higher education
13    or  municipal  corporation of this State, or public utilities
14    that  are  owned  by  such  political   subdivision,   public
15    institution of higher education, or municipal corporation and
16    operated by any of its lessees or operating agents; or (b) an
17    occupant of a building or facility where the owner or owner's
18    designee  owns  or  manages  the internal distribution system
19    serving such building or facility and supply  electric  power
20    or  other related power services to occupants of the building
21    or facility, where such owner or owner's designee is a direct
22    purchaser of electric power, and where the occupants are  not
23    direct purchasers.
24        "Self   Generation"  means  customer-owned,  operated  or
25    leased non-mobile generation.
26        "Service area" has the meaning given  that  term  in  the
27    Electric Supplier Act.
28        "Small   commercial   customer"  means  a  nonresidential
29    customer that used less than  15,000 kilowatt-hours of energy
30    in the prior calendar year or is projected to use  less  than
31    15,000 kilowatt-hours in a calendar year.
32        "State  General  Revenue  Charge"  means  .32  cents  per
33    kilowatt-hour distributed or 5% of the purchase price for the
34    billing  period,  whichever  is  the  lower  rate;  provided,
                            -10-              LRB9004576JSgcA
 1    however,  if  there  is  no  sale of electric power, the rate
 2    shall be 5% of the purchase price for the billing period.
 3        "Transition period" means from May 1, 1998 through  April
 4    30, 2001.
 5        "Transmission   company"   means   an  incumbent  utility
 6    providing  transport  facilities   and   services   for   the
 7    transmission of electric power.
 8        "Trust"  means  a  fiduciary  account  in a bank or other
 9    financial institution established to hold the funds collected
10    by an incumbent utility  pursuant  to  Section  65,  for  the
11    purpose  of the eventual utilization by the utility, if it is
12    necessary to ensure its financial viability.
13        "Unbundled service" means  electric  power  and  electric
14    service   and   related  retail  electric  services  elements
15    provided and priced separately.
16        "Use" means the exercise by any person of  any  right  or
17    power  over  electric power or electric services, except that
18    it does not include the sale of electric  power  or  electric
19    services in the regular course of business.
20        Section 15.  Electric customer choice.
21        (a)  Beginning May 1, 1998, all retail electric customers
22    shall  have  the  right  to purchase electric power, electric
23    service, and related retail electric services through  direct
24    access  from any electric service provider, or to remain with
25    their incumbent utility.
26        (b)  Customers and electric service  providers  shall  be
27    allowed  to  define  by  mutual  consent the price, terms and
28    conditions of service consistent with the provisions of  this
29    Act.
30        (c)  Customers  shall be free to aggregate their loads on
31    a  voluntary  basis,  subject   to   reasonable   operational
32    procedures  and  practices.  Aggregation may include multiple
33    customers at a single site or a single customer  at  multiple
                            -11-              LRB9004576JSgcA
 1    sites,  or  any  variation  thereof.   An aggregated load may
 2    include customers of a particular customer class  or  it  may
 3    include customers from different classes.
 4        Section  20.  Continued  provision  of bundled service by
 5    incumbent utility.
 6        (a)  All customers shall have  the  option  to  remain  a
 7    customer  of  the  incumbent  utility  and  purchase  bundled
 8    service,  subject to subsections (b) and (c) of this Section.
 9        (b)  A residential or small commercial customer may elect
10    to switch from an  electric  service  provider  back  to  the
11    incumbent  utility,  upon payment of an administrative fee to
12    be determined by the Commission.
13        (c)   An incumbent  utility's  duty  to  provide  bundled
14    service to all other customers ends when the customer chooses
15    to purchase from an electric service provider.
16        Section  25.  Restructuring  plan.   Within 90 days after
17    the effective date of the Act, all incumbent utilities  shall
18    submit  to  the  Commission a restructuring plan to implement
19    direct access to a  competitive  market.   The  restructuring
20    plan  shall  include,  at  a  minimum,  consistent with other
21    elements of this Act:
22        (1)  unbundled prices or rates for  bundled  service  and
23    unbundled service;
24        (2)  proposal  of  how  the  incumbent utility intends to
25    implement competitive bidding for bundled service;
26        (3)  a financial viability  and  reliability  assessment,
27    which  shall include, at a minimum:  projected operating cash
28    flows;  projections  relating  to  the  incumbent   utility's
29    financial  viability;  projected  financial  and  reliability
30    charges  for  the  transition  period;  projected uses of the
31    funds which the incumbent utility intends  to  withdraw  from
32    the trust fund;
                            -12-              LRB9004576JSgcA
 1        (4)  procedures  for  ensuring  that  all  customers have
 2    non-discriminatory direct access to the  competitive  market,
 3    including  a  filing  of enforceable standards of conduct for
 4    transactions between the incumbent utility and  any  division
 5    or   affiliate   doing  business  in  the  utility's  service
 6    territory, and terms  and  conditions  for  electric  service
 7    providers  to  do business in the incumbent utility's service
 8    area;
 9        (5)  projected charge to  be  assessed  to  fund  nuclear
10    decommissioning expense fund;
11        (6)  proposal  which  documents  procedures for customers
12    switching their supplier; and
13        (7)  market  power  study  to  document   the   incumbent
14    utility's  market  power and proposed mechanisms to eliminate
15    any market power concerns.
16        Section 30.  Commission  review.   The  Commission  shall
17    review  and  conduct  public  hearings  from  all  interested
18    parties  on the restructuring plans and unbundled rates filed
19    by each incumbent utility, and within 150 days of the filing,
20    shall  either  accept  the  filed  restructuring   plan   and
21    unbundled   rates   or  modify  the  restructuring  plan  and
22    unbundled rates to conform to the requirements of this Act.
23        Section 35.  Bundled service rates.
24        (a)  Notwithstanding any other provision of this Act,  no
25    incumbent  utility  shall  be  authorized  to  charge bundled
26    services rates for comparable service  including  all  taxes,
27    financial  viability  and  reliability charges, and franchise
28    fees, which exceed the  rates  that  were  in  effect  as  of
29    January 1, 1997.
30        (b)  Incumbent  utilities shall charge and collect rates,
31    exclusive of all taxes, financial viability  and  reliability
32    charges,   and   franchise  fees,  but  including  a  nuclear
                            -13-              LRB9004576JSgcA
 1    decommissioning expense adjustment clause  and  a  normalized
 2    fuel  adjustment  clause,  for  bundled  electric  service in
 3    conformance with the following provisions:
 4             (1)  During the period May 1, 1998 through April 30,
 5        1999, an incumbent utility shall not charge  a  rate  for
 6        bundled  service  that  results  in the utility's average
 7        revenue   per   kilowatt-hour   exceeding   $0.096    for
 8        residential  customers, $0.69 per kilowatt-hour for small
 9        commercial  and  industrial  customers,  and  $0.05   per
10        kilowatt-hour   for   large   commercial  and  industrial
11        customers,  as  those  retail  rate  classifications  are
12        defined in the incumbent  utility's  Federal  Energy  and
13        Regulatory Commission Form 1 for the year 1995.
14             (2)  During the period May 1, 1999 through April 30,
15        2000,  an  incumbent  utility shall not charge a rate for
16        bundled service that results  in  the  utility's  average
17        revenue    per   kilowatt-hour   exceeding   $0.086   for
18        residential customers, $0.063 per kilowatt-hour for small
19        commercial  and  industrial  customers,  and  $0.046  per
20        kilowatt-hour  for  large   commercial   and   industrial
21        customers,  as  those  retail  rate  classifications  are
22        defined  in  the  incumbent  utility's Federal Energy and
23        Regulatory Commission Form 1 for the year 1995.
24             (3)  During the period May 1, 2000 through April 30,
25        2001, an incumbent utility shall not charge  a  rate  for
26        bundled  service  that  results  in the utility's average
27        revenue per kilowatt-hour exceeding $0.08 for residential
28        customers, $0.063 per kilowatt-hour for small  commercial
29        and industrial customers and $0.046 per kilowatt-hour for
30        large  commercial  and  industrial  customers,  as  those
31        retail  rate classifications are defined in the incumbent
32        utility's Federal Energy and Regulatory Commission Form 1
33        for the year 1995.
34             (4)  Any   reductions   or   adjustments   in    per
                            -14-              LRB9004576JSgcA
 1        kilowatt-hour  rates  charged  by an incumbent utility in
 2        order to comply with items (1), (2), and (3)  shall  only
 3        be  taken  or  made  on  the  generation component of the
 4        incumbent utility's bundled rates and charges.
 5        (c)  The  Commission  shall   require   each   applicable
 6    incumbent   utility  to  identify  on  each  bundled  service
 7    customer bill a separate and distinct line item  referred  to
 8    as  the "Competition Savings Credit", which shall be equal to
 9    the amount of rate  reduction  the  customer  received  as  a
10    result of the operation of this Act.
11        (d)  Prior  to  June  1, 2000, an incumbent utility shall
12    file tariffs  reflecting  rates  for  bundled  service  on  a
13    customer class basis that include transmission, distribution,
14    ancillary  and  related retail electric service components as
15    set by the Commission, which are comparable to its  unbundled
16    service, and a charge reflecting the electric power component
17    that  is  to be secured by the competitive bidding process as
18    set out in this Act.
19        Section 40.  Competitive bidding.  An incumbent  utility,
20    subject  to  provisions  relating  to affiliate transactions,
21    shall exclusively purchase and provide electric power to  its
22    customers  who  are not supplied by direct access by way of a
23    competitive  bidding  process  to  be  established   by   the
24    Commission to take effect no later than May 1, 2001.
25        Section  45.  Duties  of  transmission  and  distribution
26    companies.
27        (a)  A   transmission   and  distribution  company  shall
28    provide services and facilities designed to ensure  the  safe
29    and   reliable   delivery  of  electric  power  to  customers
30    regardless of the identity of the provider of electric power.
31    This obligation includes, but is not limited to:
32             (1)  the  obligation  to  connect   (including   the
                            -15-              LRB9004576JSgcA
 1        extension,  in accordance with the Commission's rules and
 2        applicable tariffs, of necessary electric line facilities
 3        to) customers located within the utility's  service  area
 4        to those transmission and distribution facilities used to
 5        provide delivery service;
 6             (2)  the  obligation  to deliver electric power from
 7        the point of receipt on the  utility's  transmission  and
 8        distribution   facilities   to   the  point  of  delivery
 9        identified by the customer;
10             (3)  the obligation to provide  ancillary  services;
11        and
12             (4)  the   obligation   to  provide  related  retail
13        electric services to the extent those  services  are  not
14        competitive.
15        (b)  Within  90 days of the effective date of this Act, a
16    transmission company shall  file  tariffs  with  the  Federal
17    Energy   Regulatory   Commission,  and,  to  the  extent  not
18    preempted by Federal  law,  the  Commission.   These  tariffs
19    shall  (1)  make  customers  and  electric  service providers
20    selling to retail customers eligible to receive  transmission
21    service   and   (2)  conform  to  Federal  Energy  Regulatory
22    Commission  standards  with  respect   to   nondiscriminatory
23    access.
24        (c)  Within  90 days of the effective date of this Act, a
25    distribution company shall file unbundled  tariffs  with  the
26    Commission pursuant to Section 50.
27        (d)  Transmission  and distribution companies shall allow
28    the  aggregation  of  load,  if  requested,  consistent  with
29    reasonable operational  practices  and  procedures  contained
30    within  the incumbent utility's transmission and distribution
31    tariffs.   Notwithstanding  any  contrary  provision  in  the
32    Public Utilities Act, in any proceeding before the Commission
33    challenging the denial of aggregation, the  burden  of  proof
34    shall be on the transmission and distribution company.
                            -16-              LRB9004576JSgcA
 1        (e)  A   customer  shall  have  the  option  to  purchase
 2    electric service at any delivery service  voltage  reasonably
 3    and   technically   feasible  from  facilities  serving  that
 4    customer's premises.
 5        Section 50.  Unbundled tariffs.
 6        (a)  Consistent with the restructuring plan provided  for
 7    in  Section  25  of this Act, within 90 days of the effective
 8    date of this Act, each incumbent utility shall file unbundled
 9    tariffs with the Commission.  These tariffs shall:
10             (1)  permit customers to purchase unbundled services
11        from any electric service provider;
12             (2)  separately identify the charges for generation,
13        transmission,  distribution,  ancillary   services,   and
14        related  retail  electric services in accordance with the
15        provisions of Section 50; and
16             (3)  provide the terms,  conditions  and  rates  for
17        nondiscriminatory access to transmission and distribution
18        facilities.
19        (b)  The Commission shall enter upon a hearing concerning
20    the  incumbent utility's proposed unbundled tariffs and shall
21    establish rates, terms and conditions, or other charges which
22    it shall find to be just, reasonable, nondiscriminatory,  and
23    otherwise  consistent  with this Act unless these tariffs are
24    filed in accordance with subsection (b) of Section 55.
25        (c)  For  purposes  of  this  Section,  nondiscriminatory
26    shall  mean,  at  a  minimum,  access  to  transmission   and
27    distribution  facilities  and  services  at  rates, terms and
28    conditions applied consistently to all customers  in  a  rate
29    class  regardless of their supplier, including being supplied
30    by the incumbent utility.
31        (d)  When establishing terms and conditions for unbundled
32    service, the Commission shall implement standards,  policies,
33    and  requirements  consistent  with  those established by the
                            -17-              LRB9004576JSgcA
 1    Federal  Energy  Regulatory  Commission   for   transmission,
 2    applying the Federal Energy Regulatory Commission methodology
 3    of  fully  embedded  average  costs  to  each  unbundled rate
 4    component.   Unbundled  service  tariffs   for   distribution
 5    services  shall  be categorized and made separately available
 6    to customers at principal delivery  service  voltage  levels.
 7    Unbundled  tariffs  must  provide  unbundled  services to all
 8    persons on the same or  comparable  basis  (including  terms,
 9    conditions  and  rates) as the utility offers to provide such
10    unbundled  services  to  itself  or  any  affiliate  of   the
11    incumbent utility.
12        (e)  Any  unbundled  service  tariffs adopted pursuant to
13    this Section  shall  be  patterned  after  transmission  open
14    access  tariffs  established by the Federal Energy Regulatory
15    Commission.
16        (f)  The Commission, may, upon application by  any  party
17    or  upon  its  own  motion,  classify  any service, which has
18    previously   been   classified   as    non-competitive,    as
19    competitive,  to  the extent that for some identifiable class
20    or group of customers in some  clearly  defined  geographical
21    area   such   service,   or  its  functional  equivalent,  or
22    substitute service, is reasonably available  from  more  than
23    one provider.
24        (g)  Proposed   changes  in  rates,  charges,  terms  and
25    conditions  of  service,  or  any  classification  or  tariff
26    provision affecting rates, charges, terms and  conditions  of
27    service,  for  any  competitive  electric  service  shall  be
28    treated as follows:
29             (1)  any  proposed  decrease in rates or charges, or
30        proposed change in any classification or tariff resulting
31        in a decrease in rates  or  charges,  for  a  competitive
32        electric  service shall be permitted upon the filing of a
33        proposed change classification or tariff;
34             (2)  any proposed increase in rates or  charges,  or
                            -18-              LRB9004576JSgcA
 1        proposed change in any classification or tariff resulting
 2        in  an  increase  in  rates or charges, for a competitive
 3        electric service shall be permitted by the filing of  the
 4        proposed  rate,  charge,  classification,  or  tariff and
 5        shall become effective 7 days after its filing.
 6        Section 55.  Transition period rates.
 7        (a)  Within 90 days of the effective date of this Act, an
 8    incumbent utility shall file with the  Commission  rates  for
 9    unbundled service, to become effective May 1, 1998.
10        (b)  Incumbent  utilities which have filed a general rate
11    proceeding within 5 years prior to the effective date of this
12    Act shall file unbundled rates for generation,  distribution,
13    ancillary  services, and related retail services which  shall
14    be based  upon  the  cost-of-service  study  adopted  by  the
15    Commission in the rate proceeding which established the rates
16    which  were in effect for the incumbent utility on January 1,
17    1997.  The rate for transmission  shall  be  based  upon  the
18    incumbent  utility's  Federal  Energy  Regulatory  Commission
19    approved rate.
20        (c)  Incumbent  utilities  which have not filed a general
21    rate proceeding within 5 years prior to the effective date of
22    this Act shall charge the following rates  beginning  May  1,
23    1998  and continuing until such time as the incumbent utility
24    obtains Commission approval of a different rate  for  any  or
25    all of these services:
26             (1)  For residential and small commercial customers,
27        a   rate   of  0.30  cents  per  kilowatt-hour  for  firm
28        transmission service, or 1.64 cents per kilowatt-hour for
29        firm  primary  distribution  service   (service   voltage
30        between  1 kv and 30 kv), or 2.30 cents per kilowatt-hour
31        for firm secondary distribution service (service  voltage
32        less than 1 kv);
33             (2)  For  customers  other than residential or small
                            -19-              LRB9004576JSgcA
 1        commercial customers, one  of  the  following  3  charges
 2        shall   be   applicable:    (1)   a  rate  of  $1.40  per
 3        kilowatt-month for receiving  firm  transmission  service
 4        (service voltage greater than 30 kv); (2) a rate of $4.75
 5        per    kilowatt-month    for   receiving   firm   primary
 6        distribution service (service voltage between 1 kv and 30
 7        kv); or (3)  a  rate  of  $6.60  per  kilowatt-month  for
 8        receiving  firm  secondary  distribution service (service
 9        voltage less than 1 kv);
10        (d)  The incumbent utility shall provide, to  the  extent
11    not  otherwise  provided,  regulation  and frequency response
12    service,   operating   reserve-spinning   reserve    service,
13    operating   reserve-supplemental  reserve  service,  reactive
14    supply and voltage control form generation  sources  service,
15    real power loss service, and any other ancillary services, at
16    the   rates   approved   by  the  Federal  Energy  Regulatory
17    Commission.
18        (e)  A customer or facilities charge as authorized  in  a
19    tariff previously approved by the Commission or as previously
20    agreed  upon  in  customer-specific  contracts  shall also be
21    charged by all incumbent utilities beginning May 1, 1998  and
22    continuing  until  such  time  as  the  Commission  orders  a
23    different rate for this service.
24        Section  60.  Alternative  rate  regulation  for electric
25    distribution companies. Notwithstanding any other Sections of
26    this Act or the  Commission's  rules,  the  Commission,  upon
27    petition by an electric distribution company and after notice
28    and  hearing,  may  authorize for all or part of the tariffed
29    services  of   that   electric   distribution   company   the
30    implementation  of one or more programs for an initial period
31    not to exceed 4 years consisting of (i) alternatives to  rate
32    of  return regulation including, but not limited to, earnings
33    sharing rate moratoria, price caps or flexible  rate  options
                            -20-              LRB9004576JSgcA
 1    or  (ii)  regulatory  mechanisms  that reward or penalize the
 2    electric distribution company through the adjustment of rates
 3    based upon performance.  In the case of regulatory mechanisms
 4    that reward or penalize  the  electric  distribution  company
 5    through  the  adjustment  of  rates based on the distribution
 6    company's performance, the distribution company's performance
 7    shall be compared to standards established in the  Commission
 8    order   authorizing  the  implementation  of  the  regulatory
 9    mechanism.  The  Commission  is  specifically  authorized  to
10    approve such petitions for different forms of alternatives to
11    rate of return regulation or other regulatory  mechanisms  to
12    fit   the  particular  characteristics  and  requirements  of
13    different electric distribution companies and  the  customers
14    of  each electric distribution company.  The Commission shall
15    find that the program is reasonable  based  upon  substantial
16    evidence in the record.
17        Section 65.  Financial viability and reliability charge.
18        (a)  Incumbent  utilities  shall  be  authorized, but not
19    required,   to   annually   petition   the   Commission   for
20    authorization to charge a financial viability and reliability
21    charge  during  the  transition  period,  pursuant   to   the
22    provisions  of  this  Section.   The  revenue received by the
23    incumbent utility pursuant to the provisions of this  Section
24    shall  be distributed as soon as practical to the independent
25    trustee designated  by  the  incumbent  utility  as  provided
26    herein.
27        (b)  Upon filing a petition pursuant to this Section, the
28    incumbent  utility  shall  have  the  authority  to  charge a
29    financial viability and  reliability  charge  not  to  exceed
30    $0.003  per  kilowatt-hour.   The  Commission  shall  have no
31    authority to suspend this portion of the financial  viability
32    and  reliability  charge.   This  portion  of  the  financial
33    viability  and  reliability  charge  shall  be applied to all
                            -21-              LRB9004576JSgcA
 1    customers in a non-discriminatory manner.
 2        (c)  The Commission shall initiate a proceeding within  5
 3    days   after   the  incumbent  utility  files  its  financial
 4    viability and reliability petition, and shall hold  hearings,
 5    to  determine whether the financial viability and reliability
 6    charge requested is just and reasonable.
 7        (d)  After  hearings,  the  Commission  shall  have   the
 8    authority  to order a just and reasonable financial viability
 9    and  reliability  charge.   The  Commission  shall  have  the
10    authority to order a per  kilowatt-hour  financial  viability
11    and   reliability  charge  which  is  less  than  $0.003  per
12    kilowatt-hour.
13        (e)  The Commission shall have the authority to  order  a
14    financial  viability  and  reliability  charge  which exceeds
15    $0.003 per kilowatt-hour pursuant to  this  subsection.   For
16    that  portion of a financial viability and reliability charge
17    authorized by the Commission that is greater than $0.003  per
18    kilowatt-hour,  the total customer class responsibility shall
19    be allocated to each class of customers in proportion to  the
20    customer  class kilowatt demands used to design the incumbent
21    utility's rates which were in effect on January 1, 1997.
22             (1)  For  those  customer  classes  which  were  not
23        billed under a demand rate, the charge shall be recovered
24        by means of an additional per kilowatt-hour fee equal  to
25        total  customer  class  responsibility  divided  by total
26        customer class kilowatt-hour sales.
27             (2)  For all  other  customer  classes,  the  charge
28        shall  be  recovered  based upon a uniform monthly demand
29        charge measured in  dollars  per  kilowatt  month  to  be
30        applied  to the individual customer's billing demand rate
31        component.
32        (f)  Financial  viability  and  reliability  charges   in
33    excess   of  $0.003  per  kilowatt-hour  for  self-generation
34    customers shall be reduced on a monthly basis by  subtracting
                            -22-              LRB9004576JSgcA
 1    each customer's certified capacity from that customer's total
 2    peak  demand.  To qualify that reduction, the self-generation
 3    customer must agree to operate its generation upon reasonable
 4    request by the incumbent utility and after reasonable  notice
 5    at times of the incumbent utility peak demands.
 6        (g)  By March 31, 1998, an incumbent utility that intends
 7    to  implement  a  financial  viability and reliability charge
 8    shall:
 9             (1)  establish a trust which shall hold all revenues
10        resulting from these charges; and
11             (2)  designate an independent  trustee,  subject  to
12        the approval of the Commission, to administer the trust.
13        (h)  The  following restrictions shall apply in regard to
14    administration of the trust:
15             (1)  distributions may be made from the  trust  only
16        to the extent authorized by the Commission;
17             (2)  any  assets  in  the trust on May 31, 2001 that
18        exceed the  amount  necessary  to  ensure  the  incumbent
19        utility's  financial  viability  shall be refunded to the
20        incumbent utility  that  established  the  fund  for  the
21        express  purpose  of  refunds  or  credits,  as  soon  as
22        practicable, to the utility's customers;
23             (3)  the  trustee shall invest the trust assets only
24        in secure assets that are prudent investments for  assets
25        held in trust and in such a way as to attempt to maximize
26        the after-tax returns on funds invested;
27             (4)  all  income  earned  by the trust's funds shall
28        become part of the  trust's  funds  and  subject  to  the
29        provisions of this Section; and
30             (5)  the  Commission may adopt by rule or regulation
31        such further restrictions as it deems necessary  for  the
32        sound  management  of  the trust's funds, consistent with
33        the purposes of this Section.
                            -23-              LRB9004576JSgcA
 1        Section 70.  Distributions from the  financial  viability
 2    and reliability trust.
 3        (a)  Incumbent  utilities  shall  be  authorized, but not
 4    required,   to   annually   petition   the   Commission   for
 5    distributions from the financial  viability  and  reliability
 6    trust   during   the   transition  period,  pursuant  to  the
 7    provisions of this Section.
 8        (b)  The Commission shall initiate a proceeding within  5
 9    days  after  the  incumbent  utility files its petition for a
10    distribution from the  financial  viability  and  reliability
11    trust.
12        (c)  After   hearings,  the  Commission  shall  have  the
13    authority to make a determination regarding  the  amount  and
14    use  of  funds,  if  any, the trustee should be authorized to
15    disburse to the incumbent utility  to  ensure  the  financial
16    viability and reliability of the incumbent utility.
17        (d)  In   determining   the   amount   and  use  of  such
18    disbursements, the Commission shall consider the impact  that
19    the  use of those funds will have upon the competitive market
20    in Illinois, the degree of the incumbent utility's  financial
21    distress,   mitigation   efforts,   potential   market  power
22    concerns, and  other  criteria  which  the  Commission  deems
23    relevant.    Mitigation  efforts  should include, but are not
24    limited to, refinancing  debt,  renegotiation  of  contracts,
25    utilization  of new technology and efficiencies, common stock
26    dividend payments and divestiture or sale of capital assets.
27        (e)  Each year the Commission shall require an  incumbent
28    utility  that  receives  a  distribution  from  its financial
29    viability and reliability trust to reconcile the proceeds and
30    uses of  the  distribution  to  determine  if  the  incumbent
31    utility  utilized these funds in accordance with the purposes
32    for which the funds were requested or if all or part  of  the
33    distribution should be refunded by the incumbent utility.
34        (f)  The  trustee  of  the trust shall report annually to
                            -24-              LRB9004576JSgcA
 1    the  Commission,  or  more  frequently  if  ordered  by   the
 2    Commission.  The report shall include:
 3             (1)  the trust's State and federal tax returns;
 4             (2)  a   report   on   the   trust's   portfolio  of
 5        investments and the return thereon;
 6             (3)  the date and amount of payments received by the
 7        trust from the incumbent utility;
 8             (4)  a copy of all correspondence between the  trust
 9        and the incumbent utility;
10             (5)  a  copy of all correspondence between the trust
11        and the Internal Revenue Service; and
12             (6)  any other information the Commission orders the
13        trust to provide.
14        Section 75.  Decommissioning expense  adjustment  clause.
15    Incumbent utilities, which on January 1, 1997 owned a nuclear
16    power  plant,  are required to charge nuclear decommissioning
17    costs to customers taking either bundled service or  delivery
18    service,  through a decommissioning expense adjustment clause
19    which charges the same amount per kilowatt-hour  for  all  of
20    the  utility's  customers  taking  either  bundled service or
21    delivery service.  On the effective  date  of  the  Act,  the
22    Commission    shall   initiate   proceedings   to   establish
23    decommissioning expense adjustment  clauses  for  every  such
24    incumbent    utility    and    remove   the   allocation   of
25    decommissioning expenses from any other rates of each utility
26    by April 30, 1998. After May 1, 1998,  the  Commission  shall
27    have  the  discretion to initiate a proceeding at any time to
28    investigate such utility's decommissioning expense clause and
29    the charges to customers pursuant to  this  clause.   If  the
30    Commission  finds  that  the charges to customers through the
31    decommissioning expense adjustment clause do not comply  with
32    the decommissioning expense adjustment clause approved by the
33    Commission,  such  utility shall refund all excessive charges
                            -25-              LRB9004576JSgcA
 1    plus  interest  to  customers.   If  an  investigation  of  a
 2    utility's  decommissioning  expense  adjustment   clause   is
 3    initiated,  the Commission shall issue its final order within
 4    12 months of its initiation of the proceeding.
 5        Section 80.  Registration of electric service  providers.
 6    An  electric  service  provider  seeking  to  do  business in
 7    Illinois must file with the Commission, and keep  current,  a
 8    registration   application   that  includes  the  information
 9    identified below and any additional information  required  by
10    the  Commission pursuant to regulations issued to protect the
11    public  interest  in  connection  with  the  registration  of
12    persons seeking to sell electric power to retail customers:
13        (1)  legal name;
14        (2)  business address;
15        (3)  the name of the state where organized;  the date  of
16    organization;   a  copy  of  the  articles  of incorporation,
17    association,  partnership  agreement,  or  similar   document
18    regarding legal organization;
19        (4)  name  and  business  address  of  all  officers  and
20    directors;
21        (5)  name,  title  and  address  of  registered agent for
22    service of process; and
23        (6)  proposed  electric  service   to   be   offered   to
24    customers.
25        Section  85.  Protection  of  retail  electric customers.
26    Prior to May 1, 1998 the Commission shall:
27        (1)  Disseminate to all customers information  containing
28    a  clear  explanation of the basic concepts of competition in
29    the electric industry, customer risks  and  responsibilities,
30    current  customer  protections,  how  to  use  the customer's
31    energy use patterns to  make  decisions  about  purchases  of
32    electricity and other related services, and available dispute
                            -26-              LRB9004576JSgcA
 1    resolution  mechanisms.  Such dissemination shall be designed
 2    to reach the broadest  spectrum  of  customers  through  such
 3    means as the Commission deems appropriate.
 4        (2)  Adopt  an  electric power suppliers code of conduct,
 5    effective as of May 1, 1998, that will be applicable  to  all
 6    persons  who have registered as an electric service provider.
 7    At a minimum, the code of conduct shall require each electric
 8    service provider and incumbent utility to:
 9             (A)  provide a reliable supply of electric power  in
10        accordance with its contracts;
11             (B)  include information with billing statements and
12        marketing  materials that accurately disclose the prices,
13        terms and conditions of electric  services  and  products
14        sold to and available to customers;
15             (C)  provide  documentation to the Commission and to
16        the customer that verifies claims regarding the  sale  of
17        power generated by renewable resources; and
18             (D)  obtain verifiable authorization from a customer
19        prior  to  switching  the  electric  service  provider or
20        incumbent utility who serves that customer.
21        (3)  Revise its regulations as  necessary  to  adequately
22    protect  electric  customers  in  a  competitive  market  for
23    electric   power   and   electric   services.    The  revised
24    regulations shall apply to electric service providers and the
25    incumbent utilities.  The revised regulations  shall  include
26    minimum   credit  and  collection  procedures  and  practices
27    applicable in a competitive market  for  electric  power  and
28    electric services including, but not limited to:
29             (A)  application for service;
30             (B)  credit evaluation and deposit;
31             (C)  when  disconnection of service can be used as a
32        method  of  collection,  the  timing   and   notices   of
33        disconnection  and  required  disclosures,  disconnection
34        procedures   and   a   customer's   right  to  a  payment
                            -27-              LRB9004576JSgcA
 1        arrangement to prevent disconnection;
 2             (D)  a customer's right to retain service  during  a
 3        temporary medical emergency;
 4             (E)  a  tenant's  right  to  avoid  disconnection of
 5        service when a landlord fails to pay an overdue bill;
 6             (F)  limitations  on  the  billing   of   previously
 7        unbilled amounts;
 8             (G)  when  late fees may be assessed and limitations
 9        on their amount and method of application to  an  overdue
10        amount;
11             (H)  reconnection  rights and limits on reconnection
12        fees; and
13             (I)  rules  concerning  partial  payment   and   the
14        allocation  of  payments and credits between the electric
15        service provider and the incumbent utility.
16        (4)  Adopt regulations, including standards  of  conduct,
17    prohibiting affiliates or subsidiary companies of a incumbent
18    utility  from  competing for retail sales to customers within
19    the service territory of the  incumbent  utility  unless  the
20    Commission   finds   that   adequate  protections  have  been
21    established to prevent cross-subsidization of  the  affiliate
22    or subsidiary company by the customers of the utility.
23        (5)  The  Commission  may  impose  reasonable  penalties,
24    including barring a person from directly or indirectly acting
25    as  an  electric service provider if, upon its own motion, or
26    in response to a  complaint  or  complaints,  the  Commission
27    finds  that  the  electric service provider, electric service
28    supplier or incumbent utility has  been  in  significant  and
29    continued   violation   of  the  code  of  conduct  or  other
30    provisions of law.
31        Section 90.  Market power study and mitigation.  No later
32    than 12 months after the effective  date  of  this  Act,  and
33    annually thereafter, the Commission shall conduct a study and
                            -28-              LRB9004576JSgcA
 1    issue  a report to the legislature on: (i)  The potential for
 2    any incumbent utility or electric service  provider  that  is
 3    selling  electric  power and related retail electric services
 4    to customers or providing delivery services to any  incumbent
 5    utility  in  Illinois  to  exercise  undue  market power over
 6    prices  for  those  services;  (ii)  Barriers  to  entry   or
 7    participation  that  may  exist  in  retail  power markets in
 8    Illinois, especially those barriers relating to participation
 9    by residential and small commercial customers; and (iii)  Any
10    other impediments to the establishment of a fully competitive
11    power market in Illinois other than  those  identified  under
12    items  (i)  and  (ii). The Commission shall have authority to
13    mitigate the undue exercise  of  market  power,  barriers  to
14    entry and any other impediments to a competitive power market
15    that  were identified in items (i), (ii) and (iii), including
16    the  power  to  require  divestiture  of  incumbent   utility
17    facilities if it determines, after notice and the opportunity
18    for  a  hearing,  that  such  action is necessary in order to
19    eliminate the exercise of market power  over  electric  power
20    and related services.
21        Section 95.  Customer information.
22        (a)  Upon  request from any electric service provider and
23    payment of a reasonable fee, an electric distribution company
24    shall make available a list of the names and addresses of its
25    customers.  Such lists shall not include customers that  have
26    submitted  written  requests  to  the  company  that  they be
27    excluded from such lists.  No public utility may solicit  its
28    customers  to  have  the  customers' names excluded from such
29    lists.
30        (b)  Upon request of an electric customer  or  its  agent
31    and  payment  of  a reasonable fee, electric transmission and
32    distribution companies and parties providing  related  retail
33    electric services, shall provide to the customer or its agent
                            -29-              LRB9004576JSgcA
 1    the customer's billing and usage data.
 2        (c)  Upon  request from any electric service provider and
 3    payment of a reasonable fee, an incumbent utility shall  make
 4    available  generic  information  concerning  the  usage, load
 5    shape curve or other general characteristics of customers  as
 6    a group or rate classification.
 7        (d)  All   such   customer   information  shall  be  made
 8    available in a timely fashion in  an  electronic  format,  if
 9    available.
10        Section 100.  Customer facilities.
11        (a)  Upon  request from a facility owner and payment of a
12    reasonable administrative fee,  an  incumbent  utility  shall
13    make  available  within  60  days  information  regarding the
14    depreciated cost of utility-owned facilities that are located
15    on the facility owner's site, based on the utility's historic
16    embedded costs.
17        (b)  A facility owner shall have the option at  any  time
18    to  acquire  utility-owned facilities that are located on its
19    site and that can be segregated from  the  remainder  of  the
20    system.   If  a  facility  owner  exercises  this option, the
21    purchase  price  shall  be  the  depreciated  cost   of   the
22    facilities  based  on  the utility's historic embedded costs.
23    The facility owner  shall  pay  the  full  cost  of  any  new
24    nonstandard  facilities  that  are  located  on  the facility
25    owner's site, fully dedicated to serving its needs, and  that
26    can be segregated from the remainder of the system.
27        (c)  The  final  cost  paid  by  a  customer for delivery
28    services, including charges paid to the distribution  utility
29    and  the  purchaser  of  the facilities, shall not exceed the
30    charge  for  the  delivery  services  if  the  customer  were
31    purchasing the power over facilities owned  entirely  by  the
32    distribution company.  Subject to the terms and conditions of
33    an  individual  lease,  any  tenant that is a retail electric
                            -30-              LRB9004576JSgcA
 1    customer as of the effective date  of  this  Act  shall  have
 2    access  to  the  purchased  customer  facilities allowing the
 3    tenant to purchase from  any  electric  service  provider  or
 4    incumbent  utility  for  the  remainder  of  its lease at its
 5    current site.
 6        (d)  If a facility owner does not exercise its option  to
 7    acquire  utility-owned  facilities  which  are located on its
 8    site, all obligations of a distribution company set forth  in
 9    this Act shall apply.
10        (e)  Facility  owners  may resell and redistribute to the
11    building's  tenants  electric  power  and  electric  services
12    purchased from  an  incumbent  utility  or  electric  service
13    provider,  regardless  of  whether  they  have  acquired  the
14    utility-owned facilities located on their site.
15        Section  105.  Switching  supplier.   Subject to contract
16    and tariff terms and conditions, a customer  may  change  its
17    electric  service  provider or incumbent utility at any time,
18    but will remain responsible for any unpaid charges owed to  a
19    provider  or  utility  if  the  customer fails to give proper
20    notice of change.  Any notice provision, fee or penalty to be
21    charged by the electric service provider or incumbent utility
22    associated with early termination  of  a  contract  shall  be
23    conspicuously disclosed in any contract or tariff.
24        Section  110.  Reporting requirements.  Beginning January
25    1, 1999, the Commission shall issue an annual report  to  the
26    legislature  on  the  extent of competition within the State,
27    the effect of competition on prices and rates, the  level  of
28    participation  of  residential and small commercial customers
29    in direct  access,  the  effect  of  competition  on  service
30    quality,  the  extent  of predatory practices by competitors,
31    and any other matter the Commission deems appropriate.
                            -31-              LRB9004576JSgcA
 1        Section 115.  State and  municipal  revenue  task  force.
 2    The  legislature  shall  appoint  a task force that will make
 3    recommendations  for  competitively  neutral  mechanisms   to
 4    maintain state and local tax revenues and franchise fees in a
 5    competitive  electricity  market as provided for in this Act.
 6    The  task  force  shall  issue  a  report   containing   such
 7    recommendations  no  later  than 6 months after the effective
 8    date of this Act.
 9        Section 120.  Imposition of electric revenue use tax.   A
10    tax  is  imposed  upon  the  privilege of using in this State
11    electric  power  or  electric  services  purchased  from  any
12    person,  other  than  municipal   corporations   owning   and
13    operating a local transportation system for public service in
14    this   State,   engaged  in  the  business  of  distributing,
15    supplying, wheeling,  transmitting,  furnishing,  or  selling
16    electric power or electric services at the rate not to exceed
17    .326  cents  per  kilowatt-hour  distributed or 5.094% of the
18    purchase price for the billing period, whichever is the lower
19    rate; provided, however, if there  is  no  sale  of  electric
20    power, the rate shall be 5.094% of the purchase price for the
21    billing  period; provided further that no such tax is imposed
22    upon any transaction that is subject to the  tax  imposed  by
23    the  Public  Utilities  Revenue  Act  upon  kilowatt-hours or
24    purchase price for the same transaction; and provided further
25    that the amount in excess  of  .32  cents  per  kilowatt-hour
26    distributed  or  5%  of  the  purchase  price for the billing
27    period shall be collected only at the rate necessary to equal
28    the  1996  federal  Low-Income  Energy   Assistance   Program
29    contributions to this State.
30        Section  125.  Collection of electric revenue use tax.  A
31    person maintaining a place of business in this State  who  is
32    engaged in the business of distributing, supplying, wheeling,
                            -32-              LRB9004576JSgcA
 1    transmitting,   furnishing,  or  selling  electric  power  or
 2    electric services to persons for use or consumption, and  not
 3    for  resale,  shall collect, from the purchaser, the tax that
 4    is imposed by this Act.  The tax imposed by this  Act  shall,
 5    if  and  to  the  extent  that  collected,  be  stated as two
 6    distinct and separate items apart from the selling  price  of
 7    electric power or electric services:
 8        (1)  The first item, when collected, shall be referred to
 9    as  the  "State  General Revenue Charge," and shall equal .32
10    cents per kilowatt-hour distributed or  5%  of  the  purchase
11    price  for  the  billing period, whichever is the lower rate;
12    provided, however, if there is no sale of electric power, the
13    rate shall be 5%  of  the  purchase  price  for  the  billing
14    period.
15        (2)  The  second  item,  if, and to the extent collected,
16    shall be referred to as the "Illinois Low-Income Home  Energy
17    Assistance  Program  Fund Contribution," and shall not exceed
18    .006 cents per kilowatt-hour  distributed  or  .094%  of  the
19    purchase price for the billing period, whichever is the lower
20    rate;  provided,  however,  if  there  is no sale of electric
21    power, the rate shall not exceed .094% of the purchase  price
22    for the billing period.
23        Section 130.  Incorporation of applicable Sections of Use
24    Tax  Act.  The Department shall have full power to administer
25    and enforce this Act; to collect all  taxes,  penalties,  and
26    interest  due  hereunder; to dispose of taxes, penalties, and
27    interest so collected in the manner hereinafter provided; and
28    to determine  all  rights  to  credit  memoranda  or  refunds
29    arising  on account of the erroneous payment of tax, penalty,
30    or  interest  hereunder.   In  the  administration  of,   and
31    compliance with, this Section, the Department and persons who
32    are  subject  to  this  Section  shall  have the same rights,
33    remedies, privileges, immunities, powers, and duties, and  be
                            -33-              LRB9004576JSgcA
 1    subject  to  the  same conditions, restrictions, limitations,
 2    penalties, and definitions of  terms,  and  employ  the  same
 3    modes of procedure, as are prescribed in Sections 2, 4, 5, 6,
 4    7,  9  (except  provision relating to transaction returns and
 5    except that the due date for returns shall be the 15th day of
 6    each month for the preceding calendar  month),  10,  11,  12,
 7    12a,  13,  14,  15, 18, 19, 20, 21, and 22 of the Use Tax Act
 8    and as are not inconsistent with this Section, as fully as if
 9    those provisions were set forth herein.
10        Section 135.  Tax collected as debt owed to  State.   The
11    tax  required  under  this  Act to be collected by any person
12    engaged in the business of distributing, supplying, wheeling,
13    transmitting,  furnishing,  or  selling  electric  power   or
14    electric  services under this Act, and any such tax collected
15    by that person, shall constitute a debt owed by  that  person
16    to this State.
17        Section 140.  Return and payment of tax by person engaged
18    in   the   business  of  distributing,  supplying,  wheeling,
19    transmitting, furnishing, or selling  electric  services.   A
20    person  engaged  in  the business of distributing, supplying,
21    wheeling, transmitting, furnishing, or selling electric power
22    or electric services who is required or authorized to collect
23    the tax imposed by this  Act  shall  make  a  return  to  the
24    Department  on  or  before the 15th day of each month for the
25    preceding calendar month stating all of the following:
26        (1)  his or her name;
27        (2)  the  address  of  his  or  her  principal  place  of
28    business and the address of the principal place  of  business
29    (if that is a different address) from which he or she engages
30    in   the   business  of  distributing,  supplying,  wheeling,
31    transmitting,  furnishing,  or  selling  electric  power   or
32    electric services in this State;
                            -34-              LRB9004576JSgcA
 1        (3)  the total number of kilowatt-hours for which payment
 2    was  received  by  him  or  her  from  purchasers  during the
 3    preceding calendar month and upon the basis of which the  tax
 4    is imposed;
 5        (4)  the  purchase price which was received by him or her
 6    from purchasers during the preceding calendar month from such
 7    business, including budget plan amounts applied  during  such
 8    month in payment of charges includable in gross receipts, and
 9    upon the basis of which the tax is imposed;
10        (5)  amount of Illinois Low-Income Home Energy Assistance
11    Program  Fund  Contribution  and State General Revenue Charge
12    (computed based upon item 3 or 4); and
13        (6)  such other reasonable information as the  Department
14    may  require.  In  making a return, the person engaged in the
15    business of distributing, supplying, wheeling,  transmitting,
16    furnishing,  or  selling  electric power or electric services
17    may  use  any  reasonable   method   to   derive   reportable
18    "kilowatt-hours" and "purchase price" from his or her billing
19    and  payment records.  The provisions of Section 9 of the Use
20    Tax Act, as incorporated by Section 130 of  this  Act,  shall
21    otherwise  govern  the filing of returns and payment of taxes
22    under  this  Act  by  persons  engaged  in  the  business  of
23    distributing, supplying, wheeling, transmitting,  furnishing,
24    or selling electric power or electric services.
25        Section  145.  Direct  return  and  payment by purchaser.
26    The tax imposed by this  Act  that  is  not  collected  under
27    Sections  125  and 140 of this Act by a person engaged in the
28    business of distributing, supplying, wheeling,  transmitting,
29    furnishing,  or  selling  electric power or electric services
30    shall be paid to the Department directly by the purchaser who
31    is subject to the tax imposed by  this  Act.   The  purchaser
32    shall, on or before the 15th day of each month, make a return
33    to  the  Department for the preceding calendar month, stating
                            -35-              LRB9004576JSgcA
 1    the following:
 2        (1)  his or her name and principal address;
 3        (2)  the total number of kilowatt-hours used  by  him  or
 4    her during the preceding calendar month and upon the basis of
 5    which the tax is imposed;
 6        (3)  the  purchase  price  of  electric power or electric
 7    service used by him or  her  during  the  preceding  calendar
 8    month and upon the basis of which the tax is imposed;
 9        (4)  amount of Illinois Low-Income Home Energy Assistance
10    Program  Fund  Contribution  and State General Revenue Charge
11    (computed based upon item 2 or 3); and
12        (5)  such other reasonable information as the  Department
13    may  require.  In  making a return, the purchaser may use any
14    reasonable method to derive reportable  "kilowatt-hours"  and
15    "purchase  price" from his or her billing and payment record.
16    The purchaser making the return provided for in this  Section
17    shall,  at  the  time  of  making  the  return,  pay  to  the
18    Department  the  amount  of  tax  imposed  by  this  Act. The
19    provisions of Sections 9 and  10  of  the  Use  Tax  Act,  as
20    incorporated  by  Section  130  of  this Act, shall otherwise
21    govern the filing of returns and payment of  tax  under  this
22    Act by purchasers.
23        Section  150.  Illinois Low-Income Home Energy Assistance
24    Program Fund.  That portion of the electric revenue  use  tax
25    described  in  item (2) of Section 125 of this Act shall fund
26    the Illinois Low-Income Home Energy Assistance Program  Fund.
27    The  Illinois  Low-Income Home Energy Assistance Program Fund
28    is established in the State Treasury as a special fund.   The
29    Illinois Low-Income Home Energy Assistance Program Fund shall
30    be   administered   in   a   manner   consistent   with   the
31    administration of the funds that this State receives pursuant
32    to the federal Low-Income Home Energy Assistance Program.
                            -36-              LRB9004576JSgcA
 1        Section  190.  The State Finance Act is amended by adding
 2    Section 5.449 as follows:
 3        (30 ILCS 105/5.449 new)
 4        Sec. 5.449.  The Illinois  Low-Income  Energy  Assistance
 5    Program Fund.
 6        Section  191.  The  Illinois Municipal Code is amended by
 7    changing Section 8-11-2 as follows:
 8        (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
 9        Sec.   8-11-2.  The   corporate   authorities   of    any
10    municipality  may tax any or all of the following occupations
11    or privileges:
12             1.  Persons engaged in the business of  transmitting
13        messages by means of electricity or radio magnetic waves,
14        or  fiber optics, at a rate not to exceed 5% of the gross
15        receipts  from  that  business  originating  within   the
16        corporate limits of the municipality.
17             2.  Persons engaged in the business of distributing,
18        supplying,   furnishing,   or  selling  gas  for  use  or
19        consumption within the corporate limits of a municipality
20        of 500,000 or fewer population, and not for resale, at  a
21        rate not to exceed 5% of the gross receipts therefrom.
22             2a.  Persons    engaged    in    the   business   of
23        distributing, supplying, furnishing, or selling  gas  for
24        use  or  consumption  within  the  corporate  limits of a
25        municipality of over  500,000  population,  and  not  for
26        resale,  at a rate not to exceed 8% of the gross receipts
27        therefrom.  If imposed, this tax shall be paid in monthly
28        payments.
29             3.  Persons engaged in the business of distributing,
30        supplying, furnishing, or selling electricity for use  or
31        consumption   within   the   corporate   limits   of  the
                            -37-              LRB9004576JSgcA
 1        municipality, and not for resale, at a rate not to exceed
 2        that percentage which will  create  the  same  amount  of
 3        revenues  from  municipal  utility taxes in each calendar
 4        year, beginning with the  calendar  year  1998  that  the
 5        municipality realized from such taxes during the calendar
 6        year 1996 5% of the gross receipts therefrom.
 7             4.  Persons engaged in the business of distributing,
 8        supplying,  furnishing,  or  selling  water  for  use  or
 9        consumption   within   the   corporate   limits   of  the
10        municipality, and not for resale, at a rate not to exceed
11        5% of the gross receipts therefrom.
12             5.  The privilege  of  using  within  the  corporate
13        limits  of  the  municipality  electric power or electric
14        service purchased from any person engaged in business  of
15        distributing,    supplying,    wheeling,    transmitting,
16        furnishing,  or selling electricity or supplying electric
17        service, at a rate not to exceed that percentage  of  the
18        purchase  price  for the billing period which will create
19        the same amount of revenues from municipal utility  taxes
20        in  each  calendar year, beginning with the calendar year
21        1998 that  the  municipality  realized  from  such  taxes
22        during the calendar year 1996; provided, however, that no
23        such  tax is imposed upon any transaction that is subject
24        to the tax imposed under item 3 for the same transaction.
25        None of the taxes  authorized  by  this  Section  may  be
26    imposed   with  respect  to  any  transaction  in  interstate
27    commerce or otherwise to the extent to which the business may
28    not, under  the  constitution  and  statutes  of  the  United
29    States,  be made the subject of taxation by this State or any
30    political sub-division thereof; nor shall any persons engaged
31    in the business of distributing,  supplying,  furnishing,  or
32    selling  gas,  water,  or  electricity,  or  engaged  in  the
33    business  of  transmitting  messages  be  subject to taxation
34    under the provisions of this Section for  those  transactions
                            -38-              LRB9004576JSgcA
 1    that  are  or  may  become  subject  to  taxation  under  the
 2    provisions  of  the "Municipal Retailers' Occupation Tax Act"
 3    authorized by Section 8-11-1; nor shall any tax authorized by
 4    this Section be imposed upon any person engaged in a business
 5    unless the tax is imposed in like manner and at the same rate
 6    upon all persons engaged in businesses of the same  class  in
 7    the  municipality,  whether privately or municipally owned or
 8    operated.
 9        Any of the taxes enumerated in this  Section  may  be  in
10    addition  to  the  payment  of money, or value of products or
11    services furnished to the municipality  by  the  taxpayer  as
12    compensation  for  the  use  of its streets, alleys, or other
13    public  places,  or  installation  and  maintenance  therein,
14    thereon  or  thereunder  of  poles,  wires,  pipes  or  other
15    equipment used in the operation of the taxpayer's business.
16        (a)  If  the  corporate  authorities  of  any  home  rule
17    municipality have adopted an ordinance that imposed a tax  on
18    public  utility  customers, between July 1, 1971, and October
19    1, 1981, on the good faith belief that they  were  exercising
20    authority  pursuant  to  Section 6 of Article VII of the 1970
21    Illinois  Constitution,  that   action   of   the   corporate
22    authorities    shall    be    declared   legal   and   valid,
23    notwithstanding a  later  decision  of  a  judicial  tribunal
24    declaring  the  ordinance  invalid.  No municipality shall be
25    required to rebate, refund, or issue credits  for  any  taxes
26    described  in this paragraph, and those taxes shall be deemed
27    to have been levied and  collected  in  accordance  with  the
28    Constitution and laws of this State.
29        (b)  In  any case in which (i) prior to October 19, 1979,
30    the corporate authorities of any municipality have adopted an
31    ordinance imposing a tax authorized by this  Section  (or  by
32    the predecessor provision of the "Revised Cities and Villages
33    Act")  and  have  explicitly or in practice interpreted gross
34    receipts to include either charges added to customers'  bills
                            -39-              LRB9004576JSgcA
 1    pursuant  to  the provision of paragraph (a) of Section 36 of
 2    the Public Utilities Act or charges added to customers' bills
 3    by taxpayers who are not subject to rate  regulation  by  the
 4    Illinois  Commerce  Commission  for the purpose of recovering
 5    any of the tax liabilities or other amounts specified in such
 6    paragraph (a) of Section 36 of that Act, and (ii) on or after
 7    October 19, 1979, a judicial  tribunal  has  construed  gross
 8    receipts  to  exclude  all  or  part  of  those charges, then
 9    neither those municipality nor any taxpayer who paid the  tax
10    shall be required to rebate, refund, or issue credits for any
11    tax  imposed  or  charge collected from customers pursuant to
12    the municipality's interpretation prior to October 19,  1979.
13    This  paragraph  reflects a legislative finding that it would
14    be contrary to the public interest to require a  municipality
15    or  its  taxpayers to refund taxes or charges attributable to
16    the municipality's more  inclusive  interpretation  of  gross
17    receipts  prior  to  October 19, 1979, and is not intended to
18    prescribe or limit judicial construction of this Section. The
19    legislative finding set forth in  this  subsection  does  not
20    apply  to  taxes  imposed  after  the  effective date of this
21    amendatory Act of 1995.
22        (c)  (Blank).
23        (d)  For the purpose of  the  taxes  enumerated  in  this
24    Section:
25        "Gross receipts" means the consideration received for the
26    transmission  of  messages,  the  consideration  received for
27    distributing, supplying, furnishing or selling gas for use or
28    consumption  and  not  for  resale,  and  the   consideration
29    received  for  distributing, supplying, furnishing or selling
30    electricity for use or consumption and not  for  resale,  and
31    the   consideration  received  for  distributing,  supplying,
32    furnishing or selling water for use or  consumption  and  not
33    for  resale,  and  for  all  services  rendered in connection
34    therewith valued in  money,  whether  received  in  money  or
                            -40-              LRB9004576JSgcA
 1    otherwise,  including  cash, credit, services and property of
 2    every  kind  and  material  and  for  all  services  rendered
 3    therewith, and shall be determined without any  deduction  on
 4    account  of  the  cost of transmitting such messages, without
 5    any deduction on account of the cost of the service,  product
 6    or  commodity  supplied, the cost of materials used, labor or
 7    service  cost,  or  any  other  expenses  whatsoever.  "Gross
 8    receipts" shall not include that portion of the consideration
 9    received for distributing, supplying, furnishing, or  selling
10    gas,  electricity,  or  water  to, or for the transmission of
11    messages for, business enterprises described in paragraph (e)
12    of this Section to the extent and during the period in  which
13    the exemption authorized by paragraph (e) is in effect or for
14    school  districts  or  units of local government described in
15    paragraph (f)  during  the  period  in  which  the  exemption
16    authorized in paragraph  (f) is in effect.
17        For  utility  bills  issued  on or after May 1, 1996, but
18    before May 1, 1997,  and  for  receipts  from  those  utility
19    bills,  "gross  receipts"  does  not include one-third of (i)
20    amounts added to customers' bills under Section 9-222 of  the
21    Public  Utilities  Act,  or  (ii) amounts added to customers'
22    bills by taxpayers who are not subject to rate regulation  by
23    the   Illinois   Commerce   Commission  for  the  purpose  of
24    recovering any of the tax liabilities  described  in  Section
25    9-222  of  the Public Utilities Act. For utility bills issued
26    on or after May 1, 1997, but before  May  1,  1998,  and  for
27    receipts  from those utility bills, "gross receipts" does not
28    include two-thirds of (i) amounts added to  customers'  bills
29    under  Section  9-222  of  the  Public Utilities Act, or (ii)
30    amount added to customers' bills by  taxpayers  who  are  not
31    subject   to   rate   regulation  by  the  Illinois  Commerce
32    Commission for the purpose  of  recovering  any  of  the  tax
33    liabilities   described   in  Section  9-222  of  the  Public
34    Utilities Act. For utility bills issued on or  after  May  1,
                            -41-              LRB9004576JSgcA
 1    1998,  and  for  receipts  from  those  utility bills, "gross
 2    receipts" does not include (i) amounts  added  to  customers'
 3    bills  under  Section  9-222  of the Public Utilities Act, or
 4    (ii) amounts added to customers' bills by taxpayers  who  are
 5    not  subject  to  rate  regulation  by  the Illinois Commerce
 6    Commission for the purpose  of  recovering  any  of  the  tax
 7    liabilities   described   in  Section  9-222  of  the  Public
 8    Utilities Act.
 9        For purposes of this Section "gross receipts"  shall  not
10    include  (i)  amounts added to customers' bills under Section
11    9-221 of the Public Utilities Act, or (ii) charges  added  to
12    customers'  bills  to recover the surcharge imposed under the
13    Emergency  Telephone  System  Act.  This  paragraph  is   not
14    intended  to  nor  does  it make any change in the meaning of
15    "gross receipts" for the purposes of  this  Section,  but  is
16    intended  to  remove possible ambiguities, thereby confirming
17    the  existing  meaning  of  "gross  receipts"  prior  to  the
18    effective date of this amendatory Act of 1995.
19        The words "transmitting messages",  in  addition  to  the
20    usual  and popular meaning of person to person communication,
21    shall  include  the  furnishing,  for  a  consideration,   of
22    services or facilities (whether owned or leased), or both, to
23    persons in connection with the transmission of messages where
24    those  persons  do not, in turn, receive any consideration in
25    connection therewith, but shall not include  such  furnishing
26    of  services or facilities to persons for the transmission of
27    messages to the extent that any such services  or  facilities
28    for   the  transmission  of  messages  are  furnished  for  a
29    consideration, by those persons to  other  persons,  for  the
30    transmission of messages.
31        "Person"  as  used  in  this  Section  means  any natural
32    individual, firm, trust,  estate,  partnership,  association,
33    joint  stock company, joint adventure, corporation, municipal
34    corporation or political subdivision  of  this  State,  or  a
                            -42-              LRB9004576JSgcA
 1    receiver, trustee, guardian or other representative appointed
 2    by order of any court.
 3        "Public utility" shall have the meaning ascribed to it in
 4    Section  3-105  of the Public Utilities Act and shall include
 5    telecommunications carriers as defined in Section  13-202  of
 6    that Act.
 7        "Electric power" shall have the meaning ascribed to it in
 8    Section  10  of  the  Electric Customer Choice and Protection
 9    Act.
10        "Electric service" shall have the meaning ascribed to  it
11    in  Section 10 of the Electric Customer Choice and Protection
12    Act.
13        In the  case  of  persons  engaged  in  the  business  of
14    transmitting  messages  through  the use of mobile equipment,
15    such  as  cellular  phones  and  paging  systems,  the  gross
16    receipts  from  the  business  shall  be  deemed to originate
17    within the corporate limits of a  municipality  only  if  the
18    address to which the bills for the service are sent is within
19    those  corporate  limits.  If,  however,  that address is not
20    located within a municipality that imposes a tax  under  this
21    Section,  then  (i)  if the party responsible for the bill is
22    not an individual, the gross receipts from the business shall
23    be deemed to originate within the  corporate  limits  of  the
24    municipality  where  that party's principal place of business
25    in Illinois is located, and (ii) if the party responsible for
26    the bill is  an  individual,  the  gross  receipts  from  the
27    business  shall  be  deemed to originate within the corporate
28    limits of  the  municipality  where  that  party's  principal
29    residence in Illinois is located.
30        (e)  Any  municipality  that  imposes  taxes  upon public
31    utilities pursuant to this Section whose  territory  includes
32    any  part  of  an  enterprise  zone  or  federally designated
33    Foreign Trade Zone or Sub-Zone may, by a majority vote of its
34    corporate authorities, exempt from those taxes for  a  period
                            -43-              LRB9004576JSgcA
 1    not  exceeding  20  years  any  specified percentage of gross
 2    receipts  of  public   utilities   received   from   business
 3    enterprises that:
 4             (1)  either  (i)  make  investments  that  cause the
 5        creation of a minimum of 200 full-time equivalent jobs in
 6        Illinois  or  (ii)  make  investments  that   cause   the
 7        retention  of  a  minimum  of  1,000  full-time  jobs  in
 8        Illinois; and
 9             (2)  are  either  (i)  located in an Enterprise Zone
10        established pursuant to the Illinois Enterprise Zone  Act
11        or  (ii)  Department  of  Commerce  and Community Affairs
12        designated High Impact Businesses located in a  federally
13        designated Foreign Trade Zone or Sub-Zone; and
14             (3)  are certified by the Department of Commerce and
15        Community  Affairs  as  complying  with  the requirements
16        specified in clauses (1) and (2) of this paragraph (e).
17        Upon adoption of the ordinance authorizing the exemption,
18    the municipal clerk shall transmit a copy of  that  ordinance
19    to  the  Department  of  Commerce and Community Affairs.  The
20    Department of Commerce and Community Affairs shall  determine
21    whether  the business enterprises located in the municipality
22    meet the criteria  prescribed  in  this  paragraph.   If  the
23    Department  of Commerce and Community Affairs determines that
24    the business enterprises meet the criteria,  it  shall  grant
25    certification.   The  Department  of  Commerce  and Community
26    Affairs shall act upon certification requests within 30  days
27    after receipt of the ordinance.
28        Upon  certification  of  the  business  enterprise by the
29    Department of Commerce and Community Affairs, the  Department
30    of Commerce and Community Affairs shall notify the Department
31    of  Revenue  of the certification.  The Department of Revenue
32    shall notify the public utilities of the exemption status  of
33    the  gross  receipts  received  from  the  certified business
34    enterprises.  Such exemption status shall be effective within
                            -44-              LRB9004576JSgcA
 1    3 months after certification.
 2        (f)  A  municipality  that  imposes  taxes  upon   public
 3    utilities  under  this  Section  and whose territory includes
 4    part of another unit of local government or a school district
 5    may by ordinance exempt the other unit of local government or
 6    school district from those taxes.
 7        (g)  The amendment of this Section by Public  Act  84-127
 8    shall  take  precedence  over  any  other  amendment  of this
 9    Section by any  other  amendatory  Act  passed  by  the  84th
10    General  Assembly  before  the  effective  date of Public Act
11    84-127.
12        (h)  In any case in which, before July 1, 1992, a  person
13    engaged  in the business of transmitting messages through the
14    use of mobile equipment, such as cellular phones  and  paging
15    systems,  has  determined  the  municipality within which the
16    gross receipts from the business originated by  reference  to
17    the location of its transmitting or switching equipment, then
18    (i)  neither  the  municipality to which tax was paid on that
19    basis nor the taxpayer that paid tax on that basis  shall  be
20    required to rebate, refund, or issue credits for any such tax
21    or  charge collected from customers to reimburse the taxpayer
22    for the tax and (ii) no municipality to which tax would  have
23    been  paid  with  respect  to  those  gross  receipts  if the
24    provisions of this amendatory Act of 1991 had been in  effect
25    before  July  1,  1992,  shall  have  any  claim  against the
26    taxpayer for any amount of the tax.
27    (Source: P.A. 88-132; 89-325, eff. 1-1-96.)
28        Section 192.  The Public  Utilities  Act  is  amended  by
29    changing  Sections  3-105, 4-305, 7-108, 8-404, 8-406, 9-212,
30    9-213, and 9-214 as follows:
31        (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
32        Sec. 3-105.  "Public utility" means and includes,  except
                            -45-              LRB9004576JSgcA
 1    where  otherwise  expressly  provided  in this Section, every
 2    corporation, company, limited liability company, association,
 3    joint stock company  or  association,  firm,  partnership  or
 4    individual,  their  lessees, trustees, or receivers appointed
 5    by any court whatsoever  that  owns,  controls,  operates  or
 6    manages,  within  this  State,  directly  or  indirectly, for
 7    public use, any plant, equipment or property used  or  to  be
 8    used  for  or  in  connection  with,  or owns or controls any
 9    franchise, license, permit or right to engage in:
10             a.  the  production,  storage,  transmission,  sale,
11        delivery or furnishing of heat, cold, power, electricity,
12        water,  or   light,   except   when   used   solely   for
13        communications purposes;
14             b.  the disposal of sewerage; or
15             c.  the conveyance of oil or gas by pipe line.
16        "Public utility" does not include, however:
17             1.  public  utilities that are owned and operated by
18        any political subdivision, public institution  of  higher
19        education  or  municipal  corporation  of  this State, or
20        public  utilities  that  are  owned  by  such   political
21        subdivision,  public  institution of higher education, or
22        municipal corporation and operated by any of its  lessees
23        or operating agents;
24             2.  water   companies   which   are   purely  mutual
25        concerns, having no rates or charges  for  services,  but
26        paying  the  operating  expenses  by  assessment upon the
27        members of such a company and no other person;
28             3.  electric  cooperatives  as  defined  in  Section
29        3-119;
30             4.  residential natural gas  cooperatives  that  are
31        not-for-profit  corporations  established for the purpose
32        of administering and operating, on a  cooperative  basis,
33        the  furnishing  of  natural  gas  to  residences for the
34        benefit of their members who are residential consumers of
                            -46-              LRB9004576JSgcA
 1        natural gas.   For  entities  qualifying  as  residential
 2        natural  gas  cooperatives and recognized by the Illinois
 3        Commerce Commission as such, the  State  shall  guarantee
 4        legally  binding  contracts  entered  into by residential
 5        natural gas  cooperatives  for  the  express  purpose  of
 6        acquiring  natural  gas  supplies for their members.  The
 7        Illinois Commerce Commission shall  establish  rules  and
 8        regulations  providing  for  such  guarantees.  The total
 9        liability of the State in providing all  such  guarantees
10        shall  not  at  any time exceed $1,000,000, nor shall the
11        State provide such a guarantee to a  residential  natural
12        gas cooperative for more than 3 consecutive years;
13             5.  sewage  disposal  companies which provide sewage
14        disposal services on a mutual basis without  establishing
15        rates  or  charges for services, but paying the operating
16        expenses by assessment upon the members  of  the  company
17        and no others;
18             6.  (Blank);
19             7.  cogeneration  facilities, small power production
20        facilities, and other qualifying facilities,  as  defined
21        in   the  Public  Utility  Regulatory  Policies  Act  and
22        regulations promulgated thereunder, except to the  extent
23        State  regulatory  jurisdiction and action is required or
24        authorized  by  federal  law,   regulations,   regulatory
25        decisions  or the decisions of federal or state courts of
26        competent jurisdiction; and
27             8.  the ownership or operation of  a  facility  that
28        sells  compressed natural gas at retail to the public for
29        use only as a motor  vehicle  fuel  and  the  selling  of
30        compressed  natural  gas  at retail to the public for use
31        only as a motor vehicle fuel;.
32             9.  the generation or production of electricity;
33             10.  electric service providers; and
34             11.  Any  building  or  facility  owner  or  owner's
                            -47-              LRB9004576JSgcA
 1        designee  who  holds  ownership  over  and  manages   the
 2        internal  distribution  system  serving  that building or
 3        facility or who resells or redistributes  electric  power
 4        purchased  from  an incumbent utility or electric service
 5        provider.
 6        For the purpose of the least-cost planning obligations of
 7    Section 8-401 and for all  of  Section  8-402,  the  Illinois
 8    Commerce  Commission  may, for good cause shown in individual
 9    cases, exclude from  the  meaning  of  "public  utility"  the
10    electric  operations  of  any  public  utility,  as otherwise
11    defined in this Act, which serves less than  20,000  electric
12    customers within the State of Illinois, or the gas operations
13    of  any  public  utility,  as  otherwise defined in this Act,
14    which serves less than 20,000 gas customers within the  State
15    of Illinois.
16    (Source: P.A. 88-480; 89-42, eff. 1-1-96.)
17        (220 ILCS 5/4-305) (from Ch. 111 2/3, par. 4-305)
18        Sec.  4-305.  Emission  allowances.  Beginning  with  the
19    first quarter of 1993, the Commission shall collect from each
20    owner  of  public  utility  and each affiliated interest of a
21    public  utility  owning  an   electric   generating   station
22    information  relating  to the acquisition or sale of emission
23    allowances as defined in Title IV of the  federal  Clean  Air
24    Act  Amendments  of  1990  (P.L.  101-549),  as amended.  The
25    information collected shall include the  number  of  emission
26    allowances  allocated  to each generating station utility, by
27    statute or otherwise, and the number of  emission  allowances
28    acquired  or  sold  by  each generating station utility.  The
29    Commission  shall  establish   quarterly   requirements   for
30    reporting  the  information  specified  under  this  Section.
31    Beginning  with  the  annual report due January 31, 1994, the
32    Commission shall include the information collected under this
33    Section in the annual report required under this Act.
                            -48-              LRB9004576JSgcA
 1    (Source: P.A. 87-1133; 88-226.)
 2        (220 ILCS 5/7-108)
 3        Sec. 7-108.  (a)  Where  a  producer  of  electricity  an
 4    affiliate  of  an  electric  public  utility  has  offered an
 5    unregulated sale of electricity, and the distribution of that
 6    electricity  such  affiliate  would  use  a  portion  of  the
 7    utility's  distribution   or   transmission   facilities   to
 8    distribute or transmit the electricity that is to be so sold,
 9    the  utility  shall  make  such  portion  of  its  facilities
10    available  to  any other person or entity that offers to make
11    such sale, at the same price and under  the  same  terms  and
12    conditions   as   the  utility  makes  such  portion  of  its
13    facilities available to its affiliate. Nothing  contained  in
14    this  Section  7-108(a)  shall  be  construed as requiring or
15    authorizing the Commission  to  require  an  electric  public
16    utility  to  make  any portion of its facilities available to
17    its affiliate.
18        (b)  Where an affiliate  of  a  gas  public  utility  has
19    offered  an unregulated sale of gas, and such affiliate would
20    use a portion of the utility's distribution  or  transmission
21    facilities to distribute or transmit the gas that is to be so
22    sold,  the  utility shall make such portion of its facilities
23    available to any other person or entity that offers  to  make
24    such  sale,  at  the  same price and under the same terms and
25    conditions  as  the  utility  makes  such  portion   of   its
26    facilities  available to its affiliate.  Nothing contained in
27    this Section 7-108(b) shall  be  construed  as  requiring  or
28    authorizing the Commission to require a gas public utility to
29    make   any   portion  of  its  facilities  available  to  its
30    affiliate.
31        (c)  As used in this Section 7-108:
32             (1)  The  term  "affiliate"  shall  mean  (i)  every
33        corporation and person owning  or  holding,  directly  or
                            -49-              LRB9004576JSgcA
 1        indirectly,  10% or more of the voting capital stock of a
 2        public utility; (ii) every corporation and person in  any
 3        chain  of  successive  ownership  of  10%  or more of the
 4        voting capital stock of such public utility; (iii)  every
 5        corporation, 10% or more of whose voting capital stock is
 6        owned  by any person or corporation owning 10% or more of
 7        the voting capital stock of such public  utility,  or  by
 8        any person or corporation in any such chain of successive
 9        ownership  of  10% or more of the voting capital stock of
10        such public utility; (iv) every entity, 10%  or  more  of
11        whose voting securities is owned, directly or indirectly,
12        by  such  public  utility  or  by  an entity described in
13        clauses (i), (ii), or (iii) of this  paragraph;  and  (v)
14        every  entity  in  which such public utility or an entity
15        described in clauses (i), (ii), (iii), or  (iv)  of  this
16        paragraph   owns,   controls,   or   holds,  directly  or
17        indirectly,  a  financial  interest  entitling  it  or  a
18        contract right potentially entitling it to 10% or more of
19        revenues or profits and losses of any such entity.
20             (2)  the term "voting security" shall mean a "voting
21        security"  as  defined  in  the  Public  Utility  Holding
22        Company Act of 1935, as amended, and shall also mean  any
23        security giving the owner or holder thereof the privilege
24        to  convert  such  security  in  whole  or in part into a
25        voting security, or any security directly  or  indirectly
26        secured  in  whole  or  in part by the pledge of a voting
27        security.
28             (3)  the term "security" shall mean a "security"  as
29        defined  in  the  Public  Utility  Holding Company Act of
30        1935, as amended.
31             (4)  the term "unregulated sale" shall mean  a  sale
32        of   electricity  or  gas  to  an  end-user  for  use  in
33        facilities in this State, the price of which sale is  not
34        regulated by the Commission.
                            -50-              LRB9004576JSgcA
 1    (Source: P.A. 88-83.)
 2        (220 ILCS 5/8-404) (from Ch. 111 2/3, par. 8-404)
 3        Sec.  8-404. Irrespective of any energy plan submitted or
 4    adopted pursuant to the  provisions  of  Section  8-402,  The
 5    Commission  is  also authorized to require any public utility
 6    to  implement  energy  conservation,   demand   control,   or
 7    alternative  supply  programs, including, but not limited to,
 8    programs promoting energy efficient light bulbs  and  motors,
 9    whenever  the  Commission determines after hearing, that such
10    programs are likely to be cost-effective. The  Commission  is
11    also  herein authorized to require the implementation of such
12    programs  on  an  experimental  basis  for  the  purpose   of
13    determining their cost-effectiveness.
14    (Source: P.A. 87-812.)
15        (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
16        Sec. 8-406.  (a) No public utility not owning any city or
17    village  franchise  nor  engaged  in  performing  any  public
18    service or in furnishing any product or commodity within this
19    State  as of July 1, 1921 and not possessing a certificate of
20    public convenience and necessity from the  Illinois  Commerce
21    Commission,  the  State  Public  Utilities  Commission or the
22    Public Utilities Commission, at the time this amendatory  Act
23    of 1985 goes into effect, shall transact any business in this
24    State  until  it  shall  have obtained a certificate from the
25    Commission that public convenience and necessity require  the
26    transaction of such business.
27        (b)  No  public  utility  shall begin the construction of
28    any new plant, equipment, property or facility which  is  not
29    in substitution of any existing plant, equipment, property or
30    facility  or  any  extension  or  alteration  thereof  or  in
31    addition  thereto,  and which in the case of gas and electric
32    utilities may affect the energy plan of  the  utility  unless
                            -51-              LRB9004576JSgcA
 1    and  until  it  shall  have  obtained  from  the Commission a
 2    certificate that public  convenience  and  necessity  require
 3    such  construction.  Whenever  after a hearing the Commission
 4    determines that any new construction or  the  transaction  of
 5    any  business  by  a  public  utility will promote the public
 6    convenience and is necessary thereto, it shall have the power
 7    to issue certificates of public  convenience  and  necessity.
 8    The  Commission  shall  determine  that proposed construction
 9    will promote the public convenience and necessity only if the
10    utility demonstrates: (1) that the proposed  construction  is
11    necessary to provide adequate, reliable and efficient service
12    to  its  customers  and is the least-cost means of satisfying
13    the service needs of its customers; (2) with respect  to  gas
14    and  electric  utilities,  that  the proposed construction is
15    consistent with the most recent energy plan  adopted  by  the
16    Commission  for  the  utility  and the State, as updated; (3)
17    that the utility  is  capable  of  efficiently  managing  and
18    supervising the construction process and has taken sufficient
19    action  to  ensure  adequate  and  efficient construction and
20    supervision thereof; and (4) that the utility is  capable  of
21    financing   the  proposed  construction  without  significant
22    adverse  financial  consequences  for  the  utility  or   its
23    customers.   If   the   Commission   finds  that  the  public
24    convenience and necessity requires a new electric  generating
25    facility  to  be  added  by the utility, the Commission shall
26    evaluate the proposed construction  in  comparison  with  the
27    merits  of  a  facility  designed  to use Illinois coal in an
28    environmentally  acceptable  way,  and  shall  consider   the
29    economic  impact on employment directly or indirectly related
30    to the production of coal in Illinois over the entire  period
31    of   time  affected  by  the  proposed  construction  or  its
32    alternatives.
33        (c)  After the effective date of this amendatory  Act  of
34    1987, no construction shall commence on any new nuclear power
                            -52-              LRB9004576JSgcA
 1    plant  to be located within this State, and no certificate of
 2    public convenience and necessity or other authorization shall
 3    be issued therefor by the Commission, until the  Director  of
 4    the  Illinois  Environmental Protection Agency finds that the
 5    United States Government, through its authorized agency,  has
 6    identified  and  approved  a demonstrable technology or means
 7    for the disposal of high level nuclear waste, or  until  such
 8    construction  has  been  specifically  approved  by a statute
 9    enacted by the General Assembly.
10        As used in this Section, "high level nuclear waste" means
11    those aqueous wastes resulting  from  the  operation  of  the
12    first  cycle  of  the solvent extraction system or equivalent
13    and the concentrated  wastes  of  the  subsequent  extraction
14    cycles   or   equivalent   in  a  facility  for  reprocessing
15    irradiated  reactor  fuel  and  shall  include   spent   fuel
16    assemblies prior to fuel reprocessing.
17        (d)  In  making  its  determination, the Commission shall
18    attach primary weight to the cost  or  cost  savings  to  the
19    customers  of the utility. The Commission may consider any or
20    all factors which will  or  may  affect  such  cost  or  cost
21    savings.
22        (e)  The  Commission  may  issue  a temporary certificate
23    which shall remain in force not to exceed one year  in  cases
24    of emergency, to assure maintenance of adequate service or to
25    serve   particular  customers,  without  notice  or  hearing,
26    pending  the  determination   of   an   application   for   a
27    certificate,   and   may   by   regulation  exempt  from  the
28    requirements of this Section temporary acts or operations for
29    which the issuance of a certificate will not be  required  in
30    the public interest.
31        A  public utility shall not be required to obtain but may
32    apply for and obtain a certificate of public convenience  and
33    necessity pursuant to this Section with respect to any matter
34    as to which it has received the authorization or order of the
                            -53-              LRB9004576JSgcA
 1    Commission  under  the  Electric  Supplier  Act, and any such
 2    authorization or  order  granted  a  public  utility  by  the
 3    Commission  under  that Act shall as between public utilities
 4    be deemed to be, and shall have except as  provided  in  that
 5    Act  the  same  force  and effect as, a certificate of public
 6    convenience and necessity issued pursuant to this Section.
 7        No electric cooperative shall be made or shall  become  a
 8    party  to  or  shall  be entitled to be heard or to otherwise
 9    appear or participate in any proceeding initiated under  this
10    Section  for authorization of power plant construction and as
11    to matters as to  which  a  remedy  is  available  under  The
12    Electric Supplier Act.
13        (f)  Such  certificates may be altered or modified by the
14    Commission, upon its own motion or upon  application  by  the
15    person  or  corporation  affected.  Unless exercised within a
16    period of 2 years from the grant thereof authority  conferred
17    by  a  certificate of convenience and necessity issued by the
18    Commission shall be null and void.
19        No certificate of public convenience and necessity  shall
20    be   construed   as  granting  a  monopoly  or  an  exclusive
21    privilege, immunity or franchise.
22    (Source: P.A. 85-377.)
23        (220 ILCS 5/9-212) (from Ch. 111 2/3, par. 9-212)
24        Sec. 9-212.  No new electric utility generating plant  or
25    gas  production facility, or significant addition to existing
26    facilities or plant, shall be included in  a  utility's  rate
27    base  unless and until the utility proves, and the Commission
28    determines, that such plant or facility is both  prudent  and
29    used and useful in providing utility service to the utility's
30    customers.  For  purposes  of this Section, prudence prudency
31    shall mean that at the time of certification,  initiation  of
32    construction   and   each   subsequent   evaluation   of  any
33    construction project until the time of completion,  based  on
                            -54-              LRB9004576JSgcA
 1    the  evidence  introduced in any hearings and all information
 2    which was known or should have been known at  the  time,  and
 3    relevant  planning and certification criteria, it was prudent
 4    and reasonable to conclude that the generating or  production
 5    facility  would  be  used  and useful in providing service to
 6    customers at the time of completion.  If the  Commission  has
 7    issued  a certificate of public convenience and necessity for
 8    the completed facility and, to the extent that the Commission
 9    approves continued construction upon reevaluation  subsequent
10    to  certification,  such actions shall constitute prima facie
11    evidence of the prudence prudency of  construction.   If  the
12    Commission  determines  as  a  result  of reevaluation during
13    construction that the facility should not be completed,  such
14    determination  shall  constitute  prima  facie  evidence that
15    subsequent construction expenditures were imprudent.
16        A generation or production facility is  used  and  useful
17    only if, and only to the extent that, it is necessary to meet
18    customer  demand  or  economically beneficial in meeting such
19    demand.  No generation or production facility shall be  found
20    used  and useful until and unless it is capable of generation
21    or production at significant operating levels on a consistent
22    and sustainable basis. Any pollution control devices for  the
23    control  of  sulfur  dioxide  emissions  installed or used in
24    accordance with, and up to the cost specified in, an order or
25    supplemental order of  the  Commission  entered  pursuant  to
26    subsection (e) of Section 8-402.1 shall be deemed prudent and
27    shall,  upon  being  placed  into  operation on a consistent,
28    sustainable basis by the public utility, be deemed  used  and
29    useful.
30    (Source: P.A. 87-173.)
31        (220 ILCS 5/9-213) (from Ch. 111 2/3, par. 9-213)
32        Sec.  9-213.  The cost of new electric utility generating
33    plants  and  significant  additions   to   electric   utility
                            -55-              LRB9004576JSgcA
 1    generating  plants  shall not be included in the rate base of
 2    any  utility.  unless  such  cost  is  reasonable.  Prior  to
 3    including the cost of plants or additions to  utility  plants
 4    in  the  rate  base, the Commission shall conduct an audit of
 5    such costs in order to ascertain whether the cost  associated
 6    with  the  new  generating  plant or the addition to electric
 7    utility  generating  plant  is  reasonable.    However,   the
 8    Commission  may,  for  good  cause shown in individual cases,
 9    waive the auditing requirement for  any  generating  facility
10    which meets all of the following requirements:
11             (1)  The  facility is wholly owned and operated by a
12        public utility, as otherwise defined in this  Act,  which
13        serves  less  than  20,000  electric customers within the
14        State of Illinois, and
15             (2)  The facility is designed to generate less  than
16        50 megawatts of electricity, and
17             (3)  The facility is located outside of the State of
18        Illinois.
19        If the Commission is unable to conduct such an audit, the
20    Commission  shall  arrange  for it to be conducted by persons
21    independent of the utility and selected  by  the  Commission.
22    The  cost  of  such  an  independent  audit  shall  be  borne
23    initially  by  the  utility,  but  shall  be  recovered as an
24    expense  through  normal  ratemaking  procedures.   Any  such
25    audits  shall  be  conducted  in  accordance  with  generally
26    accepted auditing standards and  shall  include  but  not  be
27    limited to costs associated with materials, labor, equipment,
28    professional services and other direct and indirect costs.
29        "Significant additions to the electric utility generating
30    plant",  as  used in this Section, shall not include a public
31    utility's investment in pollution  control  devices  for  the
32    control  of sulfur dioxide emissions. Nothing in this Section
33    is intended to affect the provisions of Section 9-214 of this
34    Act.
                            -56-              LRB9004576JSgcA
 1        "Reasonable", as used  in  this  Section,  means  that  a
 2    utility's   decisions,   construction,   and  supervision  of
 3    construction, underlying the costs of  new  electric  utility
 4    generating  plants  and  significant  additions  to  electric
 5    utility  generating  plants resulted in efficient, economical
 6    and timely construction.  In determining  the  reasonableness
 7    of  plant  costs, the Commission shall consider the knowledge
 8    and circumstances prevailing at the  time  of  each  relevant
 9    utility decision or action.
10        Nothing  in  this  Section  shall  prevent  or  limit the
11    Commission from either entering  into  and  conducting  joint
12    audits  concerning  such  electric generating plants with the
13    regulatory authority of another state,  or  from  relying  on
14    audits conducted by the regulatory authority of another state
15    in lieu of an audit as required by this Section.
16    (Source: P.A. 87-435.)
17        (220 ILCS 5/9-214) (from Ch. 111 2/3, par. 9-214)
18        Sec. 9-214. (a) As used in this Section:
19             (1)  "CWIP" means those assets which are recorded as
20        construction work in progress on a public utility's books
21        of  accounts maintained in accordance with the applicable
22        regulations and orders of the Commission.
23             (2)  "Rate base" means the original  cost  value  of
24        the property on which a return is allowed.
25             (3)  "CWIP ratio" means the fraction, expressed as a
26        percentage,  calculated  by  dividing  the amount of CWIP
27        included in a public utility's rate base by the utility's
28        rate base.
29             (4)  "Existing  CWIP"  means  the  amount  of   CWIP
30        included in the rate base on December 1, 1983.
31        (b)  In  any  determination under Section 9-201, 9-202 or
32    9-250 of this Act in a proceeding begun on or after  December
33    1, 1983:
                            -57-              LRB9004576JSgcA
 1             (1)  For  any  public  utility  with a CWIP ratio on
 2        December 1, 1983, which is less than 15%, the  Commission
 3        shall  not  include  in  the  rate  base  for such public
 4        utility an amount for CWIP to exceed 80% of existing CWIP
 5        for the period from December 1, 1983 through December 31,
 6        1984, and 60%  of  existing  CWIP  for  the  period  from
 7        January  1,  1985  through  December  31, 1985 and 40% of
 8        existing CWIP for the period from January 1, 1986 through
 9        December 31, 1986, and  20%  of  existing  CWIP  for  the
10        period from January 1, 1987 through December 31, 1987.
11             (2)  For  any  public  utility  with a CWIP ratio on
12        December 1, 1983 which is greater than or equal  to  15%,
13        the  Commission  shall  not  include in the rate base for
14        such public utility an amount for CWIP in excess  of  the
15        amount  of  CWIP included in the rate base on December 1,
16        1983, plus  50%  of  the  allowed  construction  expenses
17        incurred  by the public utility from the date of the most
18        recent rate determination  by  the  Commission  prior  to
19        December 1, 1983.
20        (c)  The  limitations  set forth in paragraph (b) of this
21    Section shall not be  interpreted  as  an  expansion  of  the
22    Commission's  authority to include CWIP in the rate base, but
23    rather solely as a limitation thereon.
24        (d)  The Commission shall not include an amount for  CWIP
25    in  the rate base for any public utility for the period after
26    December 31, 1988.
27        (e)  Notwithstanding the provisions of paragraphs (b) and
28    (d) of this Section the Commission may include  in  the  rate
29    base  of  a  public  utility  an amount for CWIP for a public
30    utility's investment which  is  scheduled  to  be  placed  in
31    service   within   12   months   of  the  date  of  the  rate
32    determination. For the purposes  of  this  paragraph  nuclear
33    generating  facilities  shall  be considered to be in service
34    upon the commencement of electric generation.
                            -58-              LRB9004576JSgcA
 1        (f)  Notwithstanding the provisions of paragraph (b)  and
 2    (d),  the Commission may include in the rate base of a public
 3    utility an amount of CWIP for a public  utility's  investment
 4    in  pollution  control  devices  for  the  control  of sulfur
 5    dioxide emissions and the purification of water and  sewage.;
 6    provided,  however, that upon application by a public utility
 7    which is constructing one or more pollution  control  devices
 8    for  the  control  of  sulfur  dioxide emissions as part of a
 9    Clean Air Act compliance  plan  approved  by  the  Commission
10    pursuant to subsection (e) of Section 8-402.1, the Commission
11    shall include in such public utility's rate base an amount of
12    CWIP equal to its investment in such pollution control device
13    or  devices,  but  not  to  exceed the estimated cost of such
14    facilities   specified   in   the   Commission's   order   or
15    supplemental order pursuant  to  subsection  (e)  of  Section
16    8-402.1.  For  purposes  of  this  subsection (f), the public
17    utility's investment shall not  include  the  amount  of  any
18    state, federal or other grants provided to the public utility
19    to  fund  the design, acquisition, construction, installation
20    and testing of pollution control devices for the  control  of
21    sulfur dioxide emissions.
22        (g)  Except  for  those  amounts  of  CWIP  described  in
23    paragraph  paragraphs  (e)  and  (f)  of  this  Section,  the
24    Commission  shall  consider, in any rate filing subsequent to
25    the coming on line of any new utility plant where CWIP  funds
26    have  been  allowed  in  rate  base,  a  rate moderation plan
27    directed towards allowing an appropriate return to ratepayers
28    for previous amounts attributable to CWIP funds.
29        The Commission shall conduct an investigation  and  study
30    of  the  costs and benefits to ratepayers of the inclusion of
31    construction work in progress in rate base.  Such study shall
32    include a full opportunity for participation  by  the  public
33    through  notice  and  hearings.  If the Commission determines
34    that in certain circumstances the inclusion of CWIP  in  rate
                            -59-              LRB9004576JSgcA
 1    base  would  be  demonstrably  beneficial  to ratepayers, the
 2    Commission shall report its findings with recommendations  to
 3    the General Assembly by December 31, 1988.
 4    (Source: P.A. 87-173.)
 5        (220 ILCS 5/8-402 rep.)
 6        (220 ILCS 5/8-402.1 rep.)
 7        (220 ILCS 5/8-407 rep.)
 8        (220 ILCS 5/9-215 rep.)
 9        (220 ILCS 5/9-215.1 rep.)
10        (220 ILCS 5/9-217 rep.)
11        Section  193.  The  Public  Utilities  Act  is amended by
12    repealing Sections 8-402, 8-402.1, 8-407, 9-215, 9-215.1, and
13    9-217.
14        Section 199.  Effective date.  This Act takes effect upon
15    becoming law.

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