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91_HB2951
LRB9109250JSsb
1 AN ACT to amend the Public Utilities Act by changing
2 Sections 9-244 and 16-125.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Act is amended by
6 changing Sections 9-244 and 16-125 as follows:
7 (220 ILCS 5/9-244) (from Ch. 111 2/3, par. 9-244)
8 Sec. 9-244. Alternative rate regulation.
9 (a) Notwithstanding any of the ratemaking provisions of
10 this Article IX or other Sections of this Act, or the
11 Commission's rules that are deemed to require rate of return
12 regulation, and except as provided in Article XVI, the
13 Commission, upon its own motion or upon petition by an
14 electric or gas public utility, and after notice and hearing,
15 may authorize for some or all of the regulated services of an
16 electric or gas public that utility, the implementation of
17 one or more programs consisting of (i) alternatives to rate
18 of return regulation, including but not limited to earnings
19 sharing, rate moratoria, price caps or flexible rate options,
20 or (ii) other regulatory mechanisms that reward or penalize
21 the utility through the adjustment of rates based on utility
22 performance such as rate of return tied to reliability
23 performance. In the case of other regulatory mechanisms that
24 reward or penalize utilities through the adjustment of rates
25 based on utility performance, the utility's performance shall
26 be compared to standards established in the Commission order
27 authorizing the implementation of other regulatory
28 mechanisms. The Commission is specifically authorized to
29 approve in response to such petitions different forms of
30 alternatives to rate of return regulation or other regulatory
31 mechanisms to fit the particular characteristics and
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1 requirements of different utilities and their service
2 territories.
3 (b) The Commission shall approve the program if it
4 finds, based on the record, that:
5 (1) the program is likely to result in rates lower
6 than otherwise would have been in effect under
7 traditional rate of return regulation for the services
8 covered by the program and that are consistent with the
9 provisions of Section 9-241 of the Act; or and
10 (2) the program is likely to result in other
11 substantial and identifiable benefits that would be
12 realized by customers served under the program and that
13 would not be realized in the absence of the program; and
14 (3) the utility is in compliance with applicable
15 Commission standards for reliability and implementation
16 of the program is not likely to adversely affect service
17 reliability or the program is specifically designed to
18 improve service reliability; and
19 (4) implementation of the program is not likely to
20 result in deterioration of the utility's financial
21 condition; and
22 (5) implementation of the program is not likely to
23 adversely affect the development of competitive markets;
24 and
25 (6) the electric utility is in compliance with its
26 obligation to offer delivery services pursuant to Article
27 XVI; and
28 (7) the program includes annual reporting
29 requirements and other provisions that will enable the
30 Commission to adequately monitor its implementation of
31 the program; and
32 (8) the program includes provisions for an
33 equitable sharing of any net economic benefits between
34 the utility and its customers to the extent the program
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1 is likely to result in such benefits.
2 The Commission shall issue its order approving or denying
3 the program no later than 330 270 days from the date of
4 filing of the petition. Any program approved under this
5 Section shall continue in effect until revised, modified or
6 terminated by order of the Commission as provided in this
7 Section. If the Commission cannot make the above findings,
8 it shall specifically identify in its order the reason or
9 reasons why the proposed program does not meet the above
10 criteria, and shall identify any modifications supported in
11 the record, if any, that would cause the program to satisfy
12 the above criteria. In the event the order identifies any
13 such modifications it shall not become a final order subject
14 to petitions for rehearing until 15 days after service of
15 same by the Commission. The utility shall have 14 days
16 following the date of service of the order to notify the
17 Commission in writing whether it will accept any
18 modifications so identified in the order or whether it has
19 elected not to proceed with the program. If the utility
20 notifies the Commission that it will accept such
21 modifications, the Commission shall issue an amended order,
22 without further hearing, within 14 days following such
23 notification, approving the program as modified and such
24 order shall be considered to be a final order of the
25 Commission subject to petitions for rehearing and appellate
26 procedures.
27 (c) The Commission shall open a proceeding to review any
28 program approved under subsection (b) no later than 2 years
29 after the program is first implemented to determine whether
30 the program is meeting its objectives, and may make such
31 revisions, no later than 270 days after the proceeding is
32 opened, as are necessary to result in the program meeting its
33 objectives. A utility may elect to discontinue any program
34 so revised. The Commission shall not otherwise direct a
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1 utility to revise, modify or cancel a program during its term
2 of operation, except as found necessary by the Commission,
3 after notice and hearing, to ensure system reliability.
4 (d) Upon its own motion or complaint, the Commission may
5 investigate whether the utility is implementing an approved
6 program in accordance with the Commission order approving the
7 program. If the Commission finds after notice and hearing,
8 that the utility is not implementing the program in
9 accordance with such order, the Commission shall order the
10 utility to comply with the terms of the order. Complaints
11 relating to the program filed under Section 9-250 of this
12 Act, alleging that the program does not comply with that
13 Section or the requirements of subsection (b) shall not be
14 filed sooner than one year after the review provided for in
15 subsection (c). The complainant shall bear the burden of
16 proving the allegations in the complaint.
17 (e) The Commission shall not be authorized to allow or
18 order an electric utility to place a program into effect,
19 pursuant to this Section, applicable to delivery services
20 provided by a utility, unless the utility already has in
21 effect a delivery services tariff conforming to the
22 requirements of Section 16-108 of this Act.
23 (f) The Commission may, upon subsequent petition by the
24 utility, after notice and hearing, authorize the extension of
25 a program that was previously approved pursuant to this
26 Section or approve revisions or modifications of such a
27 program to be effective, after the initially approved program
28 has been in effect. Any such petition seeking an extension,
29 revision, or modification of such a program must be
30 accompanied by an evaluation of the program addressing the
31 criteria set forth in subsection (b) hereof. The utility's
32 petition may, but is not required to, specify a termination
33 date for the extended, revised or modified program. The
34 Commission may require a review of the extended, revised, or
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1 modified program at such intervals as may be ordered by the
2 Commission, for the purpose of determining whether the
3 program should be revised, modified, or terminated.
4 (Source: P.A. 89-194, eff. 1-1-96; 90-561, eff. 12-16-97.)
5 (220 ILCS 5/16-125)
6 Sec. 16-125. Transmission and distribution reliability
7 requirements.
8 (a) To assure the reliable delivery of electricity to
9 all customers in this State and the effective implementation
10 of the provisions of this Article, the Commission shall,
11 within 180 days of the effective date of this Article, adopt
12 rules and regulations for assessing and assuring the
13 reliability of the transmission and distribution systems and
14 facilities that are under the Commission's jurisdiction.
15 (b) These rules and regulations shall require each
16 electric utility or alternative retail electric supplier
17 owning, controlling, or operating transmission and
18 distribution facilities and equipment subject to the
19 Commission's jurisdiction, referred to in this Section as
20 "jurisdictional entities", to adopt and implement procedures
21 for restoring transmission and distribution services to
22 customers after transmission or distribution outages on a
23 nondiscriminatory basis without regard to whether a customer
24 has chosen the electric utility, an affiliate of the electric
25 utility, or another entity as its provider of electric power
26 and energy. These rules and regulations shall also, at a
27 minimum, specifically require each jurisdictional entity to
28 submit annually to the Commission.
29 (1) the number and duration of planned and
30 unplanned outages during the prior year and their impacts
31 on customers;
32 (2) outages that were controllable and outages that
33 were exacerbated in scope or duration by the condition of
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1 facilities, equipment or premises or by the actions or
2 inactions of operating personnel or agents;
3 (3) customer service interruptions that were due
4 solely to the actions or inactions of an alternative
5 retail electric supplier or a public utility in supplying
6 power or energy;
7 (4) a detailed report of the age, current
8 condition, reliability and performance of the
9 jurisdictional entity's existing transmission and
10 distribution facilities, which shall include, without
11 limitation, the following data:
12 (i) a summary of the jurisdictional entity's
13 outages and voltage variances reportable under the
14 Commission's rules;
15 (ii) the jurisdictional entity's expenditures
16 for transmission construction and maintenance, the
17 ratio of those expenditures to the jurisdictional
18 entity's transmission investment, and the average
19 remaining depreciation lives of the entity's
20 transmission facilities, expressed as a percentage
21 of total depreciation lives;
22 (iii) the jurisdictional entity's expenditures
23 for distribution construction and maintenance, the
24 ratio of those expenditures to the jurisdictional
25 entity's distribution investment, and the average
26 remaining depreciation lives of the entity's
27 distribution facilities, expressed as a percentage
28 of total depreciation lives;
29 (iv) a customer satisfaction survey covering,
30 among other areas identified in Commission rules,
31 reliability, customer service, and understandability
32 of the jurisdictional entity's services and prices;
33 and
34 (v) the corresponding information, in the same
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1 format, for the previous 3 years, if available;
2 (5) a plan for future investment and reliability
3 improvements for the jurisdictional entity's transmission
4 and distribution facilities that will ensure continued
5 reliable delivery of energy to customers and provide the
6 delivery reliability needed for fair and open
7 competition; and
8 (6) a report of the jurisdictional entity's
9 implementation of its plan filed pursuant to subparagraph
10 (5) for the previous reporting period.
11 (c) The Commission rules shall set forth the criteria
12 that will be used to assess each jurisdictional entity's
13 annual report and evaluate its reliability performance. Such
14 criteria must take into account, at a minimum: the items
15 required to be reported in subsection (b); the relevant
16 characteristics of the area served; the age and condition of
17 the system's equipment and facilities; good engineering
18 practices; the costs of potential actions; and the benefits
19 of avoiding the risks of service disruption.
20 (d) At least every 3 years, beginning in the year the
21 Commission issues the rules required by subsection (a) or the
22 following year if the rules are issued after June 1, the
23 Commission shall assess the annual report of each
24 jurisdictional entity and evaluate its reliability
25 performance. The Commission's evaluation shall include
26 specific identification of, and recommendations concerning,
27 any potential reliability problems that it has identified as
28 a result of its evaluation. The Commission may conduct the
29 evaluation or may select and arrange for persons independent
30 of the utility to conduct the evaluation. The cost of an
31 independent evaluation shall be borne initially by the
32 jurisdictional entity. For jurisdictional entities under the
33 Commission's ratemaking jurisdiction, the results of the
34 evaluation of the jurisdictional entity's reliability
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1 performance shall be considered in determining a reasonable
2 rate of return on investment or the terms of alternative
3 regulation programs for the jurisdictional entity.
4 (e) In the event that more than 30,000 customers of an
5 electric utility are subjected to a continuous power
6 interruption of 4 hours or more that results in the
7 transmission of power at less than 50% of the standard
8 voltage, or that results in the total loss of power
9 transmission, the utility shall be responsible for
10 compensating customers affected by that interruption for 4
11 hours or more for all actual damages, which shall not
12 include consequential damages, suffered as a result of the
13 power interruption. The utility shall also reimburse the
14 affected municipality, county, or other unit of local
15 government in which the power interruption has taken place
16 for all emergency and contingency expenses incurred by the
17 unit of local government as a result of the interruption. A
18 waiver of the requirements of this subsection may be granted
19 by the Commission in instances in which the utility can show
20 that the power interruption was a result of any one or more
21 of the following causes:
22 (1) Unpreventable damage due to weather events or
23 conditions.
24 (2) Customer tampering.
25 (3) Unpreventable damage due to civil or
26 international unrest or animals.
27 (4) Damage to utility equipment or other actions by
28 a party other than the utility, its employees, agents,
29 or contractors.
30 Loss of revenue and expenses incurred in complying with this
31 subsection may not be recovered from ratepayers.
32 (f) In the event of a power surge or other fluctuation
33 that causes damage and affects more than 30,000 customers,
34 the electric utility shall pay to affected customers the
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1 replacement value of all goods damaged as a result of the
2 power surge or other fluctuation unless the utility can show
3 that the power surge or other fluctuation was due to one or
4 more of the following causes:
5 (1) Unpreventable damage due to weather events or
6 conditions.
7 (2) Customer tampering.
8 (3) Unpreventable damage due to civil or
9 international unrest or animals.
10 (4) Damage to utility equipment or other actions by
11 a party other than the utility, its employees, agents,
12 or contractors.
13 Loss of revenue and expenses incurred in complying with this
14 subsection may not be recovered from ratepayers. Customers
15 with respect to whom a waiver has been granted by the
16 Commission pursuant to subparagraphs (1)-(4) of subsections
17 (e) and (f) shall not count toward the 30,000 customers
18 required therein.
19 (g) Whenever an electric utility must perform planned
20 or routine maintenance or repairs on its equipment that will
21 result in transmission of power at less than 50% of the
22 standard voltage, loss of power, or power fluctuation (as
23 defined in subsection (f)), the utility shall make
24 reasonable efforts to notify potentially affected customers
25 no less than 24 hours in advance of performance of the
26 repairs or maintenance.
27 (h) Remedies provided for under this Section may be
28 sought exclusively through the Illinois Commerce Commission
29 as provided under Section 10-109 of this Act. Damages
30 awarded under this Section for a power interruption shall be
31 limited to actual damages, which shall not include
32 consequential damages, and litigation costs. Damage awards
33 may not be paid out of utility rate funds.
34 (i) The provisions of this Section shall not in any way
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1 diminish or replace other civil or administrative remedies
2 available to a customer or a class of customers.
3 (j) The Commission shall by rule require an electric
4 utility to maintain service records detailing information on
5 each instance of transmission of power at less than 50% of
6 the standard voltage, loss of power, or power fluctuation
7 (as defined in subsection (f)), that affects 10 or more
8 customers. Occurrences that are momentary shall not be
9 required to be recorded or reported. The service record
10 shall include, for each occurrence, the following
11 information:
12 (1) The date.
13 (2) The time of occurrence.
14 (3) The duration of the incident.
15 (4) The number of customers affected.
16 (5) A description of the cause.
17 (6) The geographic area affected.
18 (7) The specific equipment involved in the
19 fluctuation or interruption.
20 (8) A description of measures taken to restore
21 service.
22 (9) A description of measures taken to remedy the
23 cause of the power interruption or fluctuation.
24 (10) A description of measures taken to prevent
25 future occurrence.
26 (11) The amount of remuneration, if any, paid to
27 affected customers.
28 (12) A statement of whether the fixed charge was
29 waived for affected customers.
30 Copies of the records containing this information shall
31 be available for public inspection at the utility's offices,
32 and copies thereof may be obtained upon payment of a fee not
33 exceeding the reasonable cost of reproduction. A copy of
34 each record shall be filed with the Commission and shall be
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1 available for public inspection. Copies of the records may
2 be obtained upon payment of a fee not exceeding the
3 reasonable cost of reproduction.
4 (k) The requirements of subsections (e) through (j) of
5 this Section shall apply only to an electric public utility
6 having 1,000,000 or more customers.
7 (Source: P.A. 90-561, eff. 12-16-97.)
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.