State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]



92_HB3256

 
                                               LRB9205113JSpc

 1        AN ACT concerning utilities.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Public  Utilities  Act  is  amended  by
 5    changing Section 9-220 as follows:

 6        (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
 7        Sec. 9-220. Rate changes based on changes in fuel costs.
 8        (a)  Notwithstanding the provisions of Section 9-201, the
 9    Commission may authorize the increase or  decrease  of  rates
10    and  charges  based  upon changes in the cost of fuel used in
11    the generation or production of electric  power,  changes  in
12    the  cost  of  purchased  power,  or  changes  in the cost of
13    purchased gas through  the  application  of  fuel  adjustment
14    clauses  or  purchased  gas adjustment clauses.  In addition,
15    the Commission may also authorize the increase or decrease of
16    rates  and  charges  based  upon  expenditures  or   revenues
17    resulting  from  the  purchase or sale of emission allowances
18    created under the federal Clean Air Act Amendments  of  1990,
19    through such fuel adjustment clauses, as a cost of fuel.  For
20    the  purposes  of  this  paragraph,  cost of fuel used in the
21    generation or production of electric power shall include  the
22    amount of any fees paid by the utility for the implementation
23    and  operation  of  a  process for the desulfurization of the
24    flue gas when burning high sulfur coal at any location within
25    the State of Illinois irrespective of the  attainment  status
26    designation   of   such   location;  but  shall  not  include
27    transportation costs of coal (i) except to  the  extent  that
28    for contracts entered into on and after the effective date of
29    this  amendatory Act of 1997, the cost of the coal, including
30    transportation  costs,  constitutes  the  lowest   cost   for
31    adequate and reliable fuel supply reasonably available to the
 
                            -2-                LRB9205113JSpc
 1    public   utility   in   comparison  to  the  cost,  including
 2    transportation costs, of other adequate and reliable  sources
 3    of fuel supply reasonably available to the public utility, or
 4    (ii)  except as otherwise provided in the next 3 sentences of
 5    this paragraph.  Such costs of fuel shall, when requested  by
 6    a  utility or at the conclusion of the utility's next general
 7    electric  rate  proceeding,  whichever  shall  first   occur,
 8    include transportation costs of coal purchased under existing
 9    coal  purchase  contracts.   For  purposes  of this paragraph
10    "existing coal purchase contracts" means  contracts  for  the
11    purchase  of  coal  in  effect  on the effective date of this
12    amendatory Act of 1991, as such contracts may  thereafter  be
13    amended,  but only to the extent that any such amendment does
14    not increase the aggregate quantity of coal to  be  purchased
15    under  such  contract.  Nothing  herein  shall  authorize  an
16    electric  utility  to  recover  through  its  fuel adjustment
17    clause any amounts of transportation costs of coal that  were
18    included in the revenue requirement used to set base rates in
19    its  most recent general rate proceeding. Cost shall be based
20    upon uniformly applied accounting principles.  Annually,  the
21    Commission   shall  initiate  public  hearings  to  determine
22    whether the clauses reflect actual costs of fuel, gas, power,
23    or coal transportation purchased to  determine  whether  such
24    purchases   were   prudent,  and  to  reconcile  any  amounts
25    collected with the actual costs of fuel, power, gas, or  coal
26    transportation prudently purchased.  In each such proceeding,
27    the  burden  of  proof shall be upon the utility to establish
28    the prudence of  its  cost  of  fuel,  power,  gas,  or  coal
29    transportation  purchases  and  costs.  The  Commission shall
30    issue its final order in each such annual proceeding  for  an
31    electric  utility  by  December  31  of  the year immediately
32    following  the  year  to  which  the   proceeding   pertains,
33    provided,  that  the  Commission  shall issue its final order
34    with respect to such annual proceeding for the years 1996 and
 
                            -3-                LRB9205113JSpc
 1    earlier by December 31, 1998.
 2        (b)  A public utility providing electric  service,  other
 3    than  a public utility described in subsections (e) or (f) of
 4    this Section, may at any time during the mandatory transition
 5    period file with the Commission proposed tariff  sheets  that
 6    eliminate  the  public  utility's  fuel adjustment clause and
 7    adjust the public utility's base rate tariffs by  the  amount
 8    necessary  for  the  base fuel component of the base rates to
 9    recover the public utility's average fuel  and  power  supply
10    costs per kilowatt-hour for the 2 most recent years for which
11    the  Commission has issued final orders in annual proceedings
12    pursuant to subsection (a), where the average fuel and  power
13    supply costs per kilowatt-hour shall be calculated as the sum
14    of  the public utility's prudent and allowable fuel and power
15    supply costs as found by the Commission in the 2  proceedings
16    divided   by   the  public  utility's  actual  jurisdictional
17    kilowatt-hour sales for those 2 years.   Notwithstanding  any
18    contrary  or inconsistent provisions in Section 9-201 of this
19    Act, in subsection (a) of this Section or  in  any  rules  or
20    regulations   promulgated   by  the  Commission  pursuant  to
21    subsection (g) of this Section, the Commission  shall  review
22    and  shall  by  order  approve,  or  approve as modified, the
23    proposed tariff sheets within 60 days after the date  of  the
24    public  utility's  filing.   The  Commission  may  modify the
25    public utility's proposed tariff sheets only  to  the  extent
26    the  Commission finds necessary to achieve conformance to the
27    requirements of this subsection  (b).   During  the  5  years
28    following  the  date  of  the  Commission's order, but in any
29    event no earlier than January 1, 2005, a public utility whose
30    fuel adjustment clause has been eliminated pursuant  to  this
31    subsection  shall not file proposed tariff sheets seeking, or
32    otherwise petition the Commission  for,  reinstatement  of  a
33    fuel adjustment clause.
34        (c)  Notwithstanding   any   contrary   or   inconsistent
 
                            -4-                LRB9205113JSpc
 1    provisions in Section 9-201 of this Act, in subsection (a) of
 2    this  Section  or  in any rules or regulations promulgated by
 3    the Commission pursuant to subsection (g) of this Section,  a
 4    public  utility  providing  electric  service,  other  than a
 5    public utility described in subsection (e)  or  (f)  of  this
 6    Section,  may  at  any  time  during the mandatory transition
 7    period file with the Commission proposed tariff  sheets  that
 8    establish  the  rate per kilowatt-hour to be applied pursuant
 9    to the public utility's fuel adjustment clause at the average
10    value for such rate during the preceding 24 months,  provided
11    that  such  average  rate  results  in a credit to customers'
12    bills, without making any revisions to the  public  utility's
13    base   rate   tariffs.   The  proposed  tariff  sheets  shall
14    establish the fuel adjustment rate for a specific time period
15    of at least 3 years but not more than 5 years, provided  that
16    the terms and conditions for any reinstatement earlier than 5
17    years  shall  be  set forth in the proposed tariff sheets and
18    subject to modification or approval by the  Commission.   The
19    Commission  shall  review  and  shall  by  order  approve the
20    proposed tariff sheets if it finds that the  requirements  of
21    this  subsection  are  met.  The Commission shall not conduct
22    the annual hearings specified in  the  last  3  sentences  of
23    subsection (a) of this Section for the utility for the period
24    that the factor established pursuant to this subsection is in
25    effect.
26        (d)  A  public  utility  providing electric service, or a
27    public utility  providing  gas  service  may  file  with  the
28    Commission  proposed  tariff sheets that eliminate the public
29    utility's fuel or purchased gas adjustment clause and  adjust
30    the  public  utility's  base  rate  tariffs  to  provide  for
31    recovery of power supply costs or gas supply costs that would
32    have  been  recovered through such clause; provided, that the
33    provisions of this subsection (d) shall not be available to a
34    public utility described in subsections (e) or  (f)  of  this
 
                            -5-                LRB9205113JSpc
 1    Section    to   eliminate   its   fuel   adjustment   clause.
 2    Notwithstanding any contrary or  inconsistent  provisions  in
 3    Section 9-201 of this Act, in subsection (a) of this Section,
 4    or  in any rules or regulations promulgated by the Commission
 5    pursuant to subsection (g) of this  Section,  the  Commission
 6    shall  review  and  shall  by  order  approve,  or approve as
 7    modified in  the  Commission's  order,  the  proposed  tariff
 8    sheets within 240 days after the date of the public utility's
 9    filing.   The  Commission's  order  shall  approve  rates and
10    charges that the Commission,  based  on  information  in  the
11    public utility's filing or on the record if a hearing is held
12    by the Commission, finds will recover the reasonable, prudent
13    and necessary jurisdictional power supply costs or gas supply
14    costs incurred or to be incurred by the public utility during
15    a  12  month period found by the Commission to be appropriate
16    for these purposes,  provided,  that  such  period  shall  be
17    either  (i) a 12 month historical period occurring during the
18    15 months ending on the date of the public utility's  filing,
19    or  (ii)  a  12  month  future period ending no later than 15
20    months following the date of  the  public  utility's  filing.
21    The  public  utility  shall  include  with  its tariff filing
22    information showing both (1) its actual jurisdictional  power
23    supply  costs  or  gas supply costs for a 12 month historical
24    period  conforming  to  (i)  above  and  (2)  its   projected
25    jurisdictional  power  supply costs or gas supply costs for a
26    future 12 month period  conforming  to  (ii)  above.  If  the
27    Commission's  order  requires  modifications  in  the  tariff
28    sheets  filed by the public utility, the public utility shall
29    have 7 days following the date of the  order  to  notify  the
30    Commission  whether  the  public  utility  will implement the
31    modified tariffs or elect to continue its fuel  or  purchased
32    gas  adjustment  clause  in force as though no order had been
33    entered.   The  Commission's  order  shall  provide  for  any
34    reconciliation of power supply costs or gas supply costs,  as
 
                            -6-                LRB9205113JSpc
 1    the  case  may  be,  and associated revenues through the date
 2    that the public utility's fuel or  purchased  gas  adjustment
 3    clause  is eliminated.  During the 5 years following the date
 4    of the Commission's order, a public  utility  whose  fuel  or
 5    purchased  gas adjustment clause has been eliminated pursuant
 6    to this subsection shall  not  file  proposed  tariff  sheets
 7    seeking,   or   otherwise   petition   the   Commission  for,
 8    reinstatement  or  adoption  of  a  fuel  or  purchased   gas
 9    adjustment  clause.  Nothing  in this subsection (d) shall be
10    construed as limiting the Commission's authority to eliminate
11    a public utility's fuel adjustment clause  or  purchased  gas
12    adjustment  clause  in  accordance  with any other applicable
13    provisions of this Act.
14        (e)  Notwithstanding   any   contrary   or   inconsistent
15    provisions in  Section 9-201 of this Act, in  subsection  (a)
16    of  this  Section,  or  in    any  rules  promulgated  by the
17    Commission pursuant  to subsection (g)  of  this  Section,  a
18    public  utility  providing    electric  service  to more than
19    1,000,000 customers in this State may,  within  the  first  6
20    months  after  the   effective date of this amendatory Act of
21    1997, file with the  Commission proposed tariff  sheets  that
22    eliminate,  effective   January 1, 1997, the public utility's
23    fuel adjustment clause  without adjusting its base rates, and
24    such tariff sheets shall be  effective upon filing.   To  the
25    extent  the  application  of  the fuel  adjustment clause had
26    resulted in net charges to customers after  January 1,  1997,
27    the utility shall also file a tariff sheet that  provides for
28    a refund stated on a per kilowatt-hour basis of such  charges
29    over a period not to exceed 6 months; provided  however, that
30    such  refund  shall  not include the proportional  amounts of
31    taxes paid under the  Use  Tax  Act,  Service  Use  Tax  Act,
32    Service Occupation Tax Act, and Retailers' Occupation Tax Act
33    on    fuel used in generation.  The Commission shall issue an
34    order  within 45 days after the date of the public  utility's
 
                            -7-                LRB9205113JSpc
 1    filing  approving or approving as modified such tariff sheet.
 2    If the fuel  adjustment clause is eliminated pursuant to this
 3    subsection,  the    Commission  shall  not conduct the annual
 4    hearings specified in the  last 3 sentences of subsection (a)
 5    of this Section  for  the    utility  for  any  period  after
 6    December  31,  1996  and  prior to any  reinstatement of such
 7    clause. A public utility whose fuel   adjustment  clause  has
 8    been eliminated pursuant to this subsection  shall not file a
 9    proposed  tariff  sheet  seeking,  or otherwise  petition the
10    Commission for, reinstatement of the fuel adjustment   clause
11    prior to January 1, 2005.
12        (f)  Notwithstanding   any   contrary   or   inconsistent
13    provisions in Section 9-201 of this Act, in subsection (a) of
14    this  Section,  or in any rules or regulations promulgated by
15    the Commission pursuant to subsection (g) of this Section,  a
16    public  utility  providing  electric  service  to  more  than
17    500,000  customers but fewer than 1,000,000 customers in this
18    State may, within the first 6 months after the effective date
19    of this amendatory Act of  1997,  file  with  the  Commission
20    proposed  tariff  sheets that eliminate, effective January 1,
21    1997, the public utility's fuel adjustment clause and  adjust
22    its  base  rates  by  the  amount necessary for the base fuel
23    component of the base rates to  recover  91%  of  the  public
24    utility's  average fuel and power supply costs for the 2 most
25    recent years for which the Commission, as of January 1, 1997,
26    has issued final orders in  annual  proceedings  pursuant  to
27    subsection (a), where the average fuel and power supply costs
28    per  kilowatt-hour  shall  be  calculated  as  the sum of the
29    public utility's prudent and allowable fuel and power  supply
30    costs as found by the Commission in the 2 proceedings divided
31    by  the  public utility's actual jurisdictional kilowatt-hour
32    sales for those 2 years, provided, that  such  tariff  sheets
33    shall   be   effective   upon  filing.   To  the  extent  the
34    application of the fuel adjustment clause had resulted in net
 
                            -8-                LRB9205113JSpc
 1    charges to customers after January 1, 1997, the utility shall
 2    also file a tariff sheet that provides for a refund stated on
 3    a per kilowatt-hour basis of such charges over a  period  not
 4    to exceed 6 months.  Provided however, that such refund shall
 5    not  include the proportional amounts of taxes paid under the
 6    Use Tax Act, Service Use Tax Act, Service Occupation Tax Act,
 7    and Retailers' Occupation Tax Act on fuel used in generation.
 8    The Commission shall issue an order within 45 days after  the
 9    date of the public utility's filing approving or approving as
10    modified such tariff sheet.  If the fuel adjustment clause is
11    eliminated  pursuant to this subsection, the Commission shall
12    not conduct the annual  hearings  specified  in  the  last  3
13    sentences  of  subsection (a) of this Section for the utility
14    for any period after December  31,  1996  and  prior  to  any
15    reinstatement  of  such  clause.  A public utility whose fuel
16    adjustment  clause  has  been  eliminated  pursuant  to  this
17    subsection shall not file a proposed tariff sheet seeking, or
18    otherwise petition the Commission for, reinstatement  of  the
19    fuel adjustment clause prior to January 1, 2005.
20        (g)  The  Commission  shall  have authority to promulgate
21    rules and regulations to carry out  the  provisions  of  this
22    Section.
23    (Source: P.A. 90-561, eff. 12-16-97.)

[ Top ]