103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4661 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241220 ILCS 5/16-108.5 Amends the Public Utilities Act. Provides that no electric utility shall establish or maintain any unreasonable difference as to rates or other charges, services, contractual terms, or facilities for access to or the use of its utility infrastructure by another person or for any other purpose. Amends the Electric Service Customer Choice and Rate Relief Law of 1997. Prohibits an electric utility in a county with a population of 3,000,000 or more from authorizing any other person or granting any other person the right, by agreement, lease, license, or otherwise, to access, control, use, or operate any electric utility's infrastructure, facilities, or assets of any kind or to deliver or provide to the electric utility's retail customers or any other person's customers, broadband services, Voice over Internet Protocol (VoIP) services, telecommunications services, or cable or video programming services. Specifies, however, that an electric utility in a county with a population of 3,000,000 or more may authorize or grant another person the right to access or use the electric utility's infrastructure, facilities, or assets, including, but not limited to, middle mile infrastructure, to facilitate the delivery of broadband services to Illinois residential and commercial customers on the condition that the access to and use of that electric utility's infrastructure, facilities, and assets (A) be granted on a non-discriminatory, non-exclusive, and competitively neutral basis; and (B) comply with all other State and federal laws, rules, and regulations, including, but not limited to, all applicable safety codes and requirements. Provides that, if there is any dispute regarding the terms, rates, or conditions of access to or use of the electric utility's infrastructure, facilities, and assets to facilitate the delivery of broadband services to Illinois residential and commercial customers, then the Commission shall hear and decide the dispute upon petition of any party. Provides that nothing in the amendatory Act shall be construed to alter or diminish the rights or obligations of any person nor shall it be deemed to conflict with the federal Pole Attachment Act. Specifies that these prohibitions become inoperative after December 31, 2027. Defines terms. Effective immediately. LRB103 37733 SPS 67860 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4661 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241220 ILCS 5/16-108.5 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241 220 ILCS 5/16-108.5 Amends the Public Utilities Act. Provides that no electric utility shall establish or maintain any unreasonable difference as to rates or other charges, services, contractual terms, or facilities for access to or the use of its utility infrastructure by another person or for any other purpose. Amends the Electric Service Customer Choice and Rate Relief Law of 1997. Prohibits an electric utility in a county with a population of 3,000,000 or more from authorizing any other person or granting any other person the right, by agreement, lease, license, or otherwise, to access, control, use, or operate any electric utility's infrastructure, facilities, or assets of any kind or to deliver or provide to the electric utility's retail customers or any other person's customers, broadband services, Voice over Internet Protocol (VoIP) services, telecommunications services, or cable or video programming services. Specifies, however, that an electric utility in a county with a population of 3,000,000 or more may authorize or grant another person the right to access or use the electric utility's infrastructure, facilities, or assets, including, but not limited to, middle mile infrastructure, to facilitate the delivery of broadband services to Illinois residential and commercial customers on the condition that the access to and use of that electric utility's infrastructure, facilities, and assets (A) be granted on a non-discriminatory, non-exclusive, and competitively neutral basis; and (B) comply with all other State and federal laws, rules, and regulations, including, but not limited to, all applicable safety codes and requirements. Provides that, if there is any dispute regarding the terms, rates, or conditions of access to or use of the electric utility's infrastructure, facilities, and assets to facilitate the delivery of broadband services to Illinois residential and commercial customers, then the Commission shall hear and decide the dispute upon petition of any party. Provides that nothing in the amendatory Act shall be construed to alter or diminish the rights or obligations of any person nor shall it be deemed to conflict with the federal Pole Attachment Act. Specifies that these prohibitions become inoperative after December 31, 2027. Defines terms. Effective immediately. LRB103 37733 SPS 67860 b LRB103 37733 SPS 67860 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4661 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241220 ILCS 5/16-108.5 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241 220 ILCS 5/16-108.5 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241 220 ILCS 5/16-108.5 Amends the Public Utilities Act. Provides that no electric utility shall establish or maintain any unreasonable difference as to rates or other charges, services, contractual terms, or facilities for access to or the use of its utility infrastructure by another person or for any other purpose. Amends the Electric Service Customer Choice and Rate Relief Law of 1997. Prohibits an electric utility in a county with a population of 3,000,000 or more from authorizing any other person or granting any other person the right, by agreement, lease, license, or otherwise, to access, control, use, or operate any electric utility's infrastructure, facilities, or assets of any kind or to deliver or provide to the electric utility's retail customers or any other person's customers, broadband services, Voice over Internet Protocol (VoIP) services, telecommunications services, or cable or video programming services. Specifies, however, that an electric utility in a county with a population of 3,000,000 or more may authorize or grant another person the right to access or use the electric utility's infrastructure, facilities, or assets, including, but not limited to, middle mile infrastructure, to facilitate the delivery of broadband services to Illinois residential and commercial customers on the condition that the access to and use of that electric utility's infrastructure, facilities, and assets (A) be granted on a non-discriminatory, non-exclusive, and competitively neutral basis; and (B) comply with all other State and federal laws, rules, and regulations, including, but not limited to, all applicable safety codes and requirements. Provides that, if there is any dispute regarding the terms, rates, or conditions of access to or use of the electric utility's infrastructure, facilities, and assets to facilitate the delivery of broadband services to Illinois residential and commercial customers, then the Commission shall hear and decide the dispute upon petition of any party. Provides that nothing in the amendatory Act shall be construed to alter or diminish the rights or obligations of any person nor shall it be deemed to conflict with the federal Pole Attachment Act. Specifies that these prohibitions become inoperative after December 31, 2027. Defines terms. Effective immediately. LRB103 37733 SPS 67860 b LRB103 37733 SPS 67860 b LRB103 37733 SPS 67860 b A BILL FOR HB4661LRB103 37733 SPS 67860 b HB4661 LRB103 37733 SPS 67860 b HB4661 LRB103 37733 SPS 67860 b 1 AN ACT concerning regulation. 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 changing 5 Sections 9-241 and 16-108.5 as follows: 6 (220 ILCS 5/9-241) (from Ch. 111 2/3, par. 9-241) 7 Sec. 9-241. Nondiscrimination. 8 (a) No public utility shall, as to rates or other charges, 9 services, facilities or in other respect, make or grant any 10 preference or advantage to any corporation or person or 11 subject any corporation or person to any prejudice or 12 disadvantage. No public utility shall establish or maintain 13 any unreasonable difference as to rates or other charges, 14 services, facilities, or in any other respect, either as 15 between localities or as between classes of service. 16 (b) No electric utility shall establish or maintain any 17 unreasonable difference as to rates or other charges, 18 services, contractual terms, or facilities for access to or 19 the use of its utility infrastructure by another person or for 20 any other purpose. Notwithstanding any other provision of law, 21 the Commission and its staff shall interpret this Section in 22 accordance with Article XVI of this Act. 23 (c) Nothing However, nothing in this Section shall be 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4661 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241220 ILCS 5/16-108.5 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241 220 ILCS 5/16-108.5 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241 220 ILCS 5/16-108.5 Amends the Public Utilities Act. Provides that no electric utility shall establish or maintain any unreasonable difference as to rates or other charges, services, contractual terms, or facilities for access to or the use of its utility infrastructure by another person or for any other purpose. Amends the Electric Service Customer Choice and Rate Relief Law of 1997. Prohibits an electric utility in a county with a population of 3,000,000 or more from authorizing any other person or granting any other person the right, by agreement, lease, license, or otherwise, to access, control, use, or operate any electric utility's infrastructure, facilities, or assets of any kind or to deliver or provide to the electric utility's retail customers or any other person's customers, broadband services, Voice over Internet Protocol (VoIP) services, telecommunications services, or cable or video programming services. Specifies, however, that an electric utility in a county with a population of 3,000,000 or more may authorize or grant another person the right to access or use the electric utility's infrastructure, facilities, or assets, including, but not limited to, middle mile infrastructure, to facilitate the delivery of broadband services to Illinois residential and commercial customers on the condition that the access to and use of that electric utility's infrastructure, facilities, and assets (A) be granted on a non-discriminatory, non-exclusive, and competitively neutral basis; and (B) comply with all other State and federal laws, rules, and regulations, including, but not limited to, all applicable safety codes and requirements. Provides that, if there is any dispute regarding the terms, rates, or conditions of access to or use of the electric utility's infrastructure, facilities, and assets to facilitate the delivery of broadband services to Illinois residential and commercial customers, then the Commission shall hear and decide the dispute upon petition of any party. Provides that nothing in the amendatory Act shall be construed to alter or diminish the rights or obligations of any person nor shall it be deemed to conflict with the federal Pole Attachment Act. Specifies that these prohibitions become inoperative after December 31, 2027. Defines terms. Effective immediately. LRB103 37733 SPS 67860 b LRB103 37733 SPS 67860 b LRB103 37733 SPS 67860 b A BILL FOR 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241 220 ILCS 5/16-108.5 LRB103 37733 SPS 67860 b HB4661 LRB103 37733 SPS 67860 b HB4661- 2 -LRB103 37733 SPS 67860 b HB4661 - 2 - LRB103 37733 SPS 67860 b HB4661 - 2 - LRB103 37733 SPS 67860 b 1 construed as limiting the authority of the Commission to 2 permit the establishment of economic development rates as 3 incentives to economic development either in enterprise zones 4 as designated by the State of Illinois or in other areas of a 5 utility's service area. Such rates should be available to 6 existing businesses which demonstrate an increase to existing 7 load as well as new businesses which create new load for a 8 utility so as to create a more balanced utilization of 9 generating capacity. The Commission shall ensure that such 10 rates are established at a level which provides a net benefit 11 to customers within a public utility's service area. 12 (d) On or before January 1, 2023, the Commission shall 13 conduct a comprehensive study to assess whether low-income 14 discount rates for electric and natural gas residential 15 customers are appropriate and the potential design and 16 implementation of any such rates. The Commission shall include 17 its findings, together with the appropriate recommendations, 18 in a report to be provided to the General Assembly. Upon 19 completion of the study, the Commission shall have the 20 authority to permit or require electric and natural gas 21 utilities to file a tariff establishing low-income discount 22 rates. 23 Such study shall assess, at a minimum, the following: 24 (1) customer eligibility requirements, including 25 income-based eligibility and eligibility based on 26 participation in or eligibility for certain public HB4661 - 2 - LRB103 37733 SPS 67860 b HB4661- 3 -LRB103 37733 SPS 67860 b HB4661 - 3 - LRB103 37733 SPS 67860 b HB4661 - 3 - LRB103 37733 SPS 67860 b 1 assistance programs; 2 (2) appropriate rate structures, including 3 consideration of tiered discounts for different income 4 levels; 5 (3) appropriate recovery mechanisms, including the 6 consideration of volumetric charges and customer charges; 7 (4) appropriate verification mechanisms; 8 (5) measures to ensure customer confidentiality and 9 data safeguards; 10 (6) outreach and consumer education procedures; and 11 (7) the impact that a low-income discount rate would 12 have on the affordability of delivery service to 13 low-income customers and customers overall. 14 (e) The Commission shall adopt rules requiring utility 15 companies to produce information, in the form of a mailing, 16 and other approved methods of distribution, to its consumers, 17 to inform the consumers of available rebates, discounts, 18 credits, and other cost-saving mechanisms that can help them 19 lower their monthly utility bills, and send out such 20 information semi-annually, unless otherwise provided by this 21 Article. 22 (f) Prior to October 1, 1989, no public utility providing 23 electrical or gas service shall consider the use of solar or 24 other nonconventional renewable sources of energy by a 25 customer as a basis for establishing higher rates or charges 26 for any service or commodity sold to such customer; nor shall a HB4661 - 3 - LRB103 37733 SPS 67860 b HB4661- 4 -LRB103 37733 SPS 67860 b HB4661 - 4 - LRB103 37733 SPS 67860 b HB4661 - 4 - LRB103 37733 SPS 67860 b 1 public utility subject any customer utilizing such energy 2 source or sources to any other prejudice or disadvantage on 3 account of such use. No public utility shall without the 4 consent of the Commission, charge or receive any greater 5 compensation in the aggregate for a lesser commodity, product, 6 or service than for a greater commodity, product or service of 7 like character. 8 The Commission, in order to expedite the determination of 9 rate questions, or to avoid unnecessary and unreasonable 10 expense, or to avoid unjust or unreasonable discrimination 11 between classes of customers, or, whenever in the judgment of 12 the Commission public interest so requires, may, for rate 13 making and accounting purposes, or either of them, consider 14 one or more municipalities either with or without the adjacent 15 or intervening rural territory as a regional unit where the 16 same public utility serves such region under substantially 17 similar conditions, and may within such region prescribe 18 uniform rates for consumers or patrons of the same class. 19 Any public utility, with the consent and approval of the 20 Commission, may as a basis for the determination of the 21 charges made by it classify its service according to the 22 amount used, the time when used, the purpose for which used, 23 and other relevant factors. 24 (Source: P.A. 102-662, eff. 9-15-21.) 25 (220 ILCS 5/16-108.5) HB4661 - 4 - LRB103 37733 SPS 67860 b HB4661- 5 -LRB103 37733 SPS 67860 b HB4661 - 5 - LRB103 37733 SPS 67860 b HB4661 - 5 - LRB103 37733 SPS 67860 b 1 Sec. 16-108.5. Infrastructure investment and 2 modernization; regulatory reform. 3 (a) (Blank). 4 (b) For purposes of this Section, "participating utility" 5 means an electric utility or a combination utility serving 6 more than 1,000,000 customers in Illinois that voluntarily 7 elects and commits to undertake (i) the infrastructure 8 investment program consisting of the commitments and 9 obligations described in this subsection (b) and (ii) the 10 customer assistance program consisting of the commitments and 11 obligations described in subsection (b-10) of this Section, 12 notwithstanding any other provisions of this Act and without 13 obtaining any approvals from the Commission or any other 14 agency other than as set forth in this Section, regardless of 15 whether any such approval would otherwise be required. 16 "Combination utility" means a utility that, as of January 1, 17 2011, provided electric service to at least one million retail 18 customers in Illinois and gas service to at least 500,000 19 retail customers in Illinois. A participating utility shall 20 recover the expenditures made under the infrastructure 21 investment program through the ratemaking process, including, 22 but not limited to, the performance-based formula rate and 23 process set forth in this Section. 24 During the infrastructure investment program's peak 25 program year, a participating utility other than a combination 26 utility shall create 2,000 full-time equivalent jobs in HB4661 - 5 - LRB103 37733 SPS 67860 b HB4661- 6 -LRB103 37733 SPS 67860 b HB4661 - 6 - LRB103 37733 SPS 67860 b HB4661 - 6 - LRB103 37733 SPS 67860 b 1 Illinois, and a participating utility that is a combination 2 utility shall create 450 full-time equivalent jobs in Illinois 3 related to the provision of electric service. These jobs shall 4 include direct jobs, contractor positions, and induced jobs, 5 but shall not include any portion of a job commitment, not 6 specifically contingent on an amendatory Act of the 97th 7 General Assembly becoming law, between a participating utility 8 and a labor union that existed on December 30, 2011 (the 9 effective date of Public Act 97-646) and that has not yet been 10 fulfilled. A portion of the full-time equivalent jobs created 11 by each participating utility shall include incremental 12 personnel hired subsequent to December 30, 2011 (the effective 13 date of Public Act 97-646). For purposes of this Section, 14 "peak program year" means the consecutive 12-month period with 15 the highest number of full-time equivalent jobs that occurs 16 between the beginning of investment year 2 and the end of 17 investment year 4. 18 A participating utility shall meet one of the following 19 commitments, as applicable: 20 (1) Beginning no later than 180 days after a 21 participating utility other than a combination utility 22 files a performance-based formula rate tariff pursuant to 23 subsection (c) of this Section, or, beginning no later 24 than January 1, 2012 if such utility files such 25 performance-based formula rate tariff within 14 days of 26 October 26, 2011 (the effective date of Public Act HB4661 - 6 - LRB103 37733 SPS 67860 b HB4661- 7 -LRB103 37733 SPS 67860 b HB4661 - 7 - LRB103 37733 SPS 67860 b HB4661 - 7 - LRB103 37733 SPS 67860 b 1 97-616), the participating utility shall, except as 2 provided in subsection (b-5): 3 (A) over a 5-year period, invest an estimated 4 $1,300,000,000 in electric system upgrades, 5 modernization projects, and training facilities, 6 including, but not limited to: 7 (i) distribution infrastructure improvements 8 totaling an estimated $1,000,000,000, including 9 underground residential distribution cable 10 injection and replacement and mainline cable 11 system refurbishment and replacement projects; 12 (ii) training facility construction or upgrade 13 projects totaling an estimated $10,000,000, 14 provided that, at a minimum, one such facility 15 shall be located in a municipality having a 16 population of more than 2 million residents and 17 one such facility shall be located in a 18 municipality having a population of more than 19 150,000 residents but fewer than 170,000 20 residents; any such new facility located in a 21 municipality having a population of more than 2 22 million residents must be designed for the purpose 23 of obtaining, and the owner of the facility shall 24 apply for, certification under the United States 25 Green Building Council's Leadership in Energy 26 Efficiency Design Green Building Rating System; HB4661 - 7 - LRB103 37733 SPS 67860 b HB4661- 8 -LRB103 37733 SPS 67860 b HB4661 - 8 - LRB103 37733 SPS 67860 b HB4661 - 8 - LRB103 37733 SPS 67860 b 1 (iii) wood pole inspection, treatment, and 2 replacement programs; 3 (iv) an estimated $200,000,000 for reducing 4 the susceptibility of certain circuits to 5 storm-related damage, including, but not limited 6 to, high winds, thunderstorms, and ice storms; 7 improvements may include, but are not limited to, 8 overhead to underground conversion and other 9 engineered outcomes for circuits; the 10 participating utility shall prioritize the 11 selection of circuits based on each circuit's 12 historical susceptibility to storm-related damage 13 and the ability to provide the greatest customer 14 benefit upon completion of the improvements; to be 15 eligible for improvement, the participating 16 utility's ability to maintain proper tree 17 clearances surrounding the overhead circuit must 18 not have been impeded by third parties; and 19 (B) over a 10-year period, invest an estimated 20 $1,300,000,000 to upgrade and modernize its 21 transmission and distribution infrastructure and in 22 Smart Grid electric system upgrades, including, but 23 not limited to: 24 (i) additional smart meters; 25 (ii) distribution automation; 26 (iii) associated cyber secure data HB4661 - 8 - LRB103 37733 SPS 67860 b HB4661- 9 -LRB103 37733 SPS 67860 b HB4661 - 9 - LRB103 37733 SPS 67860 b HB4661 - 9 - LRB103 37733 SPS 67860 b 1 communication network; and 2 (iv) substation micro-processor relay 3 upgrades. 4 (2) Beginning no later than 180 days after a 5 participating utility that is a combination utility files 6 a performance-based formula rate tariff pursuant to 7 subsection (c) of this Section, or, beginning no later 8 than January 1, 2012 if such utility files such 9 performance-based formula rate tariff within 14 days of 10 October 26, 2011 (the effective date of Public Act 11 97-616), the participating utility shall, except as 12 provided in subsection (b-5): 13 (A) over a 10-year period, invest an estimated 14 $265,000,000 in electric system upgrades, 15 modernization projects, and training facilities, 16 including, but not limited to: 17 (i) distribution infrastructure improvements 18 totaling an estimated $245,000,000, which may 19 include bulk supply substations, transformers, 20 reconductoring, and rebuilding overhead 21 distribution and sub-transmission lines, 22 underground residential distribution cable 23 injection and replacement and mainline cable 24 system refurbishment and replacement projects; 25 (ii) training facility construction or upgrade 26 projects totaling an estimated $1,000,000; any HB4661 - 9 - LRB103 37733 SPS 67860 b HB4661- 10 -LRB103 37733 SPS 67860 b HB4661 - 10 - LRB103 37733 SPS 67860 b HB4661 - 10 - LRB103 37733 SPS 67860 b 1 such new facility must be designed for the purpose 2 of obtaining, and the owner of the facility shall 3 apply for, certification under the United States 4 Green Building Council's Leadership in Energy 5 Efficiency Design Green Building Rating System; 6 and 7 (iii) wood pole inspection, treatment, and 8 replacement programs; and 9 (B) over a 10-year period, invest an estimated 10 $360,000,000 to upgrade and modernize its transmission 11 and distribution infrastructure and in Smart Grid 12 electric system upgrades, including, but not limited 13 to: 14 (i) additional smart meters; 15 (ii) distribution automation; 16 (iii) associated cyber secure data 17 communication network; and 18 (iv) substation micro-processor relay 19 upgrades. 20 For purposes of this Section, "Smart Grid electric system 21 upgrades" shall have the meaning set forth in subsection (a) 22 of Section 16-108.6 of this Act. 23 The investments in the infrastructure investment program 24 described in this subsection (b) shall be incremental to the 25 participating utility's annual capital investment program, as 26 defined by, for purposes of this subsection (b), the HB4661 - 10 - LRB103 37733 SPS 67860 b HB4661- 11 -LRB103 37733 SPS 67860 b HB4661 - 11 - LRB103 37733 SPS 67860 b HB4661 - 11 - LRB103 37733 SPS 67860 b 1 participating utility's average capital spend for calendar 2 years 2008, 2009, and 2010 as reported in the applicable 3 Federal Energy Regulatory Commission (FERC) Form 1; provided 4 that where one or more utilities have merged, the average 5 capital spend shall be determined using the aggregate of the 6 merged utilities' capital spend reported in FERC Form 1 for 7 the years 2008, 2009, and 2010. A participating utility may 8 add reasonable construction ramp-up and ramp-down time to the 9 investment periods specified in this subsection (b). For each 10 such investment period, the ramp-up and ramp-down time shall 11 not exceed a total of 6 months. 12 Within 60 days after filing a tariff under subsection (c) 13 of this Section, a participating utility shall submit to the 14 Commission its plan, including scope, schedule, and staffing, 15 for satisfying its infrastructure investment program 16 commitments pursuant to this subsection (b). The submitted 17 plan shall include a schedule and staffing plan for the next 18 calendar year. The plan shall also include a plan for the 19 creation, operation, and administration of a Smart Grid test 20 bed as described in subsection (c) of Section 16-108.8. The 21 plan need not allocate the work equally over the respective 22 periods, but should allocate material increments throughout 23 such periods commensurate with the work to be undertaken. No 24 later than April 1 of each subsequent year, the utility shall 25 submit to the Commission a report that includes any updates to 26 the plan, a schedule for the next calendar year, the HB4661 - 11 - LRB103 37733 SPS 67860 b HB4661- 12 -LRB103 37733 SPS 67860 b HB4661 - 12 - LRB103 37733 SPS 67860 b HB4661 - 12 - LRB103 37733 SPS 67860 b 1 expenditures made for the prior calendar year and 2 cumulatively, and the number of full-time equivalent jobs 3 created for the prior calendar year and cumulatively. If the 4 utility is materially deficient in satisfying a schedule or 5 staffing plan, then the report must also include a corrective 6 action plan to address the deficiency. The fact that the plan, 7 implementation of the plan, or a schedule changes shall not 8 imply the imprudence or unreasonableness of the infrastructure 9 investment program, plan, or schedule. Further, no later than 10 45 days following the last day of the first, second, and third 11 quarters of each year of the plan, a participating utility 12 shall submit to the Commission a verified quarterly report for 13 the prior quarter that includes (i) the total number of 14 full-time equivalent jobs created during the prior quarter, 15 (ii) the total number of employees as of the last day of the 16 prior quarter, (iii) the total number of full-time equivalent 17 hours in each job classification or job title, (iv) the total 18 number of incremental employees and contractors in support of 19 the investments undertaken pursuant to this subsection (b) for 20 the prior quarter, and (v) any other information that the 21 Commission may require by rule. 22 With respect to the participating utility's peak job 23 commitment, if, after considering the utility's corrective 24 action plan and compliance thereunder, the Commission enters 25 an order finding, after notice and hearing, that a 26 participating utility did not satisfy its peak job commitment HB4661 - 12 - LRB103 37733 SPS 67860 b HB4661- 13 -LRB103 37733 SPS 67860 b HB4661 - 13 - LRB103 37733 SPS 67860 b HB4661 - 13 - LRB103 37733 SPS 67860 b 1 described in this subsection (b) for reasons that are 2 reasonably within its control, then the Commission shall also 3 determine, after consideration of the evidence, including, but 4 not limited to, evidence submitted by the Department of 5 Commerce and Economic Opportunity and the utility, the 6 deficiency in the number of full-time equivalent jobs during 7 the peak program year due to such failure. The Commission 8 shall notify the Department of any proceeding that is 9 initiated pursuant to this paragraph. For each full-time 10 equivalent job deficiency during the peak program year that 11 the Commission finds as set forth in this paragraph, the 12 participating utility shall, within 30 days after the entry of 13 the Commission's order, pay $6,000 to a fund for training 14 grants administered under Section 605-800 of the Department of 15 Commerce and Economic Opportunity Law, which shall not be a 16 recoverable expense. 17 With respect to the participating utility's investment 18 amount commitments, if, after considering the utility's 19 corrective action plan and compliance thereunder, the 20 Commission enters an order finding, after notice and hearing, 21 that a participating utility is not satisfying its investment 22 amount commitments described in this subsection (b), then the 23 utility shall no longer be eligible to annually update the 24 performance-based formula rate tariff pursuant to subsection 25 (d) of this Section. In such event, the then current rates 26 shall remain in effect until such time as new rates are set HB4661 - 13 - LRB103 37733 SPS 67860 b HB4661- 14 -LRB103 37733 SPS 67860 b HB4661 - 14 - LRB103 37733 SPS 67860 b HB4661 - 14 - LRB103 37733 SPS 67860 b 1 pursuant to Article IX of this Act, subject to retroactive 2 adjustment, with interest, to reconcile rates charged with 3 actual costs. 4 If the Commission finds that a participating utility is no 5 longer eligible to update the performance-based formula rate 6 tariff pursuant to subsection (d) of this Section, or the 7 performance-based formula rate is otherwise terminated, then 8 the participating utility's voluntary commitments and 9 obligations under this subsection (b) shall immediately 10 terminate, except for the utility's obligation to pay an 11 amount already owed to the fund for training grants pursuant 12 to a Commission order. 13 In meeting the obligations of this subsection (b), to the 14 extent feasible and consistent with State and federal law, the 15 investments under the infrastructure investment program should 16 provide employment opportunities for all segments of the 17 population and workforce, including minority-owned and 18 female-owned business enterprises, and shall not, consistent 19 with State and federal law, discriminate based on race or 20 socioeconomic status. 21 (b-5) Nothing in this Section shall prohibit the 22 Commission from investigating the prudence and reasonableness 23 of the expenditures made under the infrastructure investment 24 program during the annual review required by subsection (d) of 25 this Section and shall, as part of such investigation, 26 determine whether the utility's actual costs under the program HB4661 - 14 - LRB103 37733 SPS 67860 b HB4661- 15 -LRB103 37733 SPS 67860 b HB4661 - 15 - LRB103 37733 SPS 67860 b HB4661 - 15 - LRB103 37733 SPS 67860 b 1 are prudent and reasonable. The fact that a participating 2 utility invests more than the minimum amounts specified in 3 subsection (b) of this Section or its plan shall not imply 4 imprudence or unreasonableness. 5 If the participating utility finds that it is implementing 6 its plan for satisfying the infrastructure investment program 7 commitments described in subsection (b) of this Section at a 8 cost below the estimated amounts specified in subsection (b) 9 of this Section, then the utility may file a petition with the 10 Commission requesting that it be permitted to satisfy its 11 commitments by spending less than the estimated amounts 12 specified in subsection (b) of this Section. The Commission 13 shall, after notice and hearing, enter its order approving, or 14 approving as modified, or denying each such petition within 15 150 days after the filing of the petition. 16 In no event, absent General Assembly approval, shall the 17 capital investment costs incurred by a participating utility 18 other than a combination utility in satisfying its 19 infrastructure investment program commitments described in 20 subsection (b) of this Section exceed $3,000,000,000 or, for a 21 participating utility that is a combination utility, 22 $720,000,000. If the participating utility's updated cost 23 estimates for satisfying its infrastructure investment program 24 commitments described in subsection (b) of this Section exceed 25 the limitation imposed by this subsection (b-5), then it shall 26 submit a report to the Commission that identifies the HB4661 - 15 - LRB103 37733 SPS 67860 b HB4661- 16 -LRB103 37733 SPS 67860 b HB4661 - 16 - LRB103 37733 SPS 67860 b HB4661 - 16 - LRB103 37733 SPS 67860 b 1 increased costs and explains the reason or reasons for the 2 increased costs no later than the year in which the utility 3 estimates it will exceed the limitation. The Commission shall 4 review the report and shall, within 90 days after the 5 participating utility files the report, report to the General 6 Assembly its findings regarding the participating utility's 7 report. If the General Assembly does not amend the limitation 8 imposed by this subsection (b-5), then the utility may modify 9 its plan so as not to exceed the limitation imposed by this 10 subsection (b-5) and may propose corresponding changes to the 11 metrics established pursuant to subparagraphs (5) through (8) 12 of subsection (f) of this Section, and the Commission may 13 modify the metrics and incremental savings goals established 14 pursuant to subsection (f) of this Section accordingly. 15 (b-10) All participating utilities shall make 16 contributions for an energy low-income and support program in 17 accordance with this subsection. Beginning no later than 180 18 days after a participating utility files a performance-based 19 formula rate tariff pursuant to subsection (c) of this 20 Section, or beginning no later than January 1, 2012 if such 21 utility files such performance-based formula rate tariff 22 within 14 days of December 30, 2011 (the effective date of 23 Public Act 97-646), and without obtaining any approvals from 24 the Commission or any other agency other than as set forth in 25 this Section, regardless of whether any such approval would 26 otherwise be required, a participating utility other than a HB4661 - 16 - LRB103 37733 SPS 67860 b HB4661- 17 -LRB103 37733 SPS 67860 b HB4661 - 17 - LRB103 37733 SPS 67860 b HB4661 - 17 - LRB103 37733 SPS 67860 b 1 combination utility shall pay $10,000,000 per year for 5 years 2 and a participating utility that is a combination utility 3 shall pay $1,000,000 per year for 10 years to the energy 4 low-income and support program, which is intended to fund 5 customer assistance programs with the primary purpose being 6 avoidance of imminent disconnection. Such programs may 7 include: 8 (1) a residential hardship program that may partner 9 with community-based organizations, including senior 10 citizen organizations, and provides grants to low-income 11 residential customers, including low-income senior 12 citizens, who demonstrate a hardship; 13 (2) a program that provides grants and other bill 14 payment concessions to veterans with disabilities who 15 demonstrate a hardship and members of the armed services 16 or reserve forces of the United States or members of the 17 Illinois National Guard who are on active duty pursuant to 18 an executive order of the President of the United States, 19 an act of the Congress of the United States, or an order of 20 the Governor and who demonstrate a hardship; 21 (3) a budget assistance program that provides tools 22 and education to low-income senior citizens to assist them 23 with obtaining information regarding energy usage and 24 effective means of managing energy costs; 25 (4) a non-residential special hardship program that 26 provides grants to non-residential customers such as small HB4661 - 17 - LRB103 37733 SPS 67860 b HB4661- 18 -LRB103 37733 SPS 67860 b HB4661 - 18 - LRB103 37733 SPS 67860 b HB4661 - 18 - LRB103 37733 SPS 67860 b 1 businesses and non-profit organizations that demonstrate a 2 hardship, including those providing services to senior 3 citizen and low-income customers; and 4 (5) a performance-based assistance program that 5 provides grants to encourage residential customers to make 6 on-time payments by matching a portion of the customer's 7 payments or providing credits towards arrearages. 8 The payments made by a participating utility pursuant to 9 this subsection (b-10) shall not be a recoverable expense. A 10 participating utility may elect to fund either new or existing 11 customer assistance programs, including, but not limited to, 12 those that are administered by the utility. 13 Programs that use funds that are provided by a 14 participating utility to reduce utility bills may be 15 implemented through tariffs that are filed with and reviewed 16 by the Commission. If a utility elects to file tariffs with the 17 Commission to implement all or a portion of the programs, 18 those tariffs shall, regardless of the date actually filed, be 19 deemed accepted and approved, and shall become effective on 20 December 30, 2011 (the effective date of Public Act 97-646). 21 The participating utilities whose customers benefit from the 22 funds that are disbursed as contemplated in this Section shall 23 file annual reports documenting the disbursement of those 24 funds with the Commission. The Commission has the authority to 25 audit disbursement of the funds to ensure they were disbursed 26 consistently with this Section. HB4661 - 18 - LRB103 37733 SPS 67860 b HB4661- 19 -LRB103 37733 SPS 67860 b HB4661 - 19 - LRB103 37733 SPS 67860 b HB4661 - 19 - LRB103 37733 SPS 67860 b 1 If the Commission finds that a participating utility is no 2 longer eligible to update the performance-based formula rate 3 tariff pursuant to subsection (d) of this Section, or the 4 performance-based formula rate is otherwise terminated, then 5 the participating utility's voluntary commitments and 6 obligations under this subsection (b-10) shall immediately 7 terminate. 8 (c) A participating utility may elect to recover its 9 delivery services costs through a performance-based formula 10 rate approved by the Commission, which shall specify the cost 11 components that form the basis of the rate charged to 12 customers with sufficient specificity to operate in a 13 standardized manner and be updated annually with transparent 14 information that reflects the utility's actual costs to be 15 recovered during the applicable rate year, which is the period 16 beginning with the first billing day of January and extending 17 through the last billing day of the following December. In the 18 event the utility recovers a portion of its costs through 19 automatic adjustment clause tariffs on October 26, 2011 (the 20 effective date of Public Act 97-616), the utility may elect to 21 continue to recover these costs through such tariffs, but then 22 these costs shall not be recovered through the 23 performance-based formula rate. In the event the participating 24 utility, prior to December 30, 2011 (the effective date of 25 Public Act 97-646), filed electric delivery services tariffs 26 with the Commission pursuant to Section 9-201 of this Act that HB4661 - 19 - LRB103 37733 SPS 67860 b HB4661- 20 -LRB103 37733 SPS 67860 b HB4661 - 20 - LRB103 37733 SPS 67860 b HB4661 - 20 - LRB103 37733 SPS 67860 b 1 are related to the recovery of its electric delivery services 2 costs that are still pending on December 30, 2011 (the 3 effective date of Public Act 97-646), the participating 4 utility shall, at the time it files its performance-based 5 formula rate tariff with the Commission, also file a notice of 6 withdrawal with the Commission to withdraw the electric 7 delivery services tariffs previously filed pursuant to Section 8 9-201 of this Act. Upon receipt of such notice, the Commission 9 shall dismiss with prejudice any docket that had been 10 initiated to investigate the electric delivery services 11 tariffs filed pursuant to Section 9-201 of this Act, and such 12 tariffs and the record related thereto shall not be the 13 subject of any further hearing, investigation, or proceeding 14 of any kind related to rates for electric delivery services. 15 The performance-based formula rate shall be implemented 16 through a tariff filed with the Commission consistent with the 17 provisions of this subsection (c) that shall be applicable to 18 all delivery services customers. The Commission shall initiate 19 and conduct an investigation of the tariff in a manner 20 consistent with the provisions of this subsection (c) and the 21 provisions of Article IX of this Act to the extent they do not 22 conflict with this subsection (c). Except in the case where 23 the Commission finds, after notice and hearing, that a 24 participating utility is not satisfying its investment amount 25 commitments under subsection (b) of this Section, the 26 performance-based formula rate shall remain in effect at the HB4661 - 20 - LRB103 37733 SPS 67860 b HB4661- 21 -LRB103 37733 SPS 67860 b HB4661 - 21 - LRB103 37733 SPS 67860 b HB4661 - 21 - LRB103 37733 SPS 67860 b 1 discretion of the utility. The performance-based formula rate 2 approved by the Commission shall do the following: 3 (1) Provide for the recovery of the utility's actual 4 costs of delivery services that are prudently incurred and 5 reasonable in amount consistent with Commission practice 6 and law. The sole fact that a cost differs from that 7 incurred in a prior calendar year or that an investment is 8 different from that made in a prior calendar year shall 9 not imply the imprudence or unreasonableness of that cost 10 or investment. 11 (2) Reflect the utility's actual year-end capital 12 structure for the applicable calendar year, excluding 13 goodwill, subject to a determination of prudence and 14 reasonableness consistent with Commission practice and 15 law. To enable the financing of the incremental capital 16 expenditures, including regulatory assets, for electric 17 utilities that serve less than 3,000,000 retail customers 18 but more than 500,000 retail customers in the State, a 19 participating electric utility's actual year-end capital 20 structure that includes a common equity ratio, excluding 21 goodwill, of up to and including 50% of the total capital 22 structure shall be deemed reasonable and used to set 23 rates. 24 (3) Include a cost of equity, which shall be 25 calculated as the sum of the following: 26 (A) the average for the applicable calendar year HB4661 - 21 - LRB103 37733 SPS 67860 b HB4661- 22 -LRB103 37733 SPS 67860 b HB4661 - 22 - LRB103 37733 SPS 67860 b HB4661 - 22 - LRB103 37733 SPS 67860 b 1 of the monthly average yields of 30-year U.S. Treasury 2 bonds published by the Board of Governors of the 3 Federal Reserve System in its weekly H.15 Statistical 4 Release or successor publication; and 5 (B) 580 basis points. 6 At such time as the Board of Governors of the Federal 7 Reserve System ceases to include the monthly average 8 yields of 30-year U.S. Treasury bonds in its weekly H.15 9 Statistical Release or successor publication, the monthly 10 average yields of the U.S. Treasury bonds then having the 11 longest duration published by the Board of Governors in 12 its weekly H.15 Statistical Release or successor 13 publication shall instead be used for purposes of this 14 paragraph (3). 15 (4) Permit and set forth protocols, subject to a 16 determination of prudence and reasonableness consistent 17 with Commission practice and law, for the following: 18 (A) recovery of incentive compensation expense 19 that is based on the achievement of operational 20 metrics, including metrics related to budget controls, 21 outage duration and frequency, safety, customer 22 service, efficiency and productivity, and 23 environmental compliance. Incentive compensation 24 expense that is based on net income or an affiliate's 25 earnings per share shall not be recoverable under the 26 performance-based formula rate; HB4661 - 22 - LRB103 37733 SPS 67860 b HB4661- 23 -LRB103 37733 SPS 67860 b HB4661 - 23 - LRB103 37733 SPS 67860 b HB4661 - 23 - LRB103 37733 SPS 67860 b 1 (B) recovery of pension and other post-employment 2 benefits expense, provided that such costs are 3 supported by an actuarial study; 4 (C) recovery of severance costs, provided that if 5 the amount is over $3,700,000 for a participating 6 utility that is a combination utility or $10,000,000 7 for a participating utility that serves more than 3 8 million retail customers, then the full amount shall 9 be amortized consistent with subparagraph (F) of this 10 paragraph (4); 11 (D) investment return at a rate equal to the 12 utility's weighted average cost of long-term debt, on 13 the pension assets as, and in the amount, reported in 14 Account 186 (or in such other Account or Accounts as 15 such asset may subsequently be recorded) of the 16 utility's most recently filed FERC Form 1, net of 17 deferred tax benefits; 18 (E) recovery of the expenses related to the 19 Commission proceeding under this subsection (c) to 20 approve this performance-based formula rate and 21 initial rates or to subsequent proceedings related to 22 the formula, provided that the recovery shall be 23 amortized over a 3-year period; recovery of expenses 24 related to the annual Commission proceedings under 25 subsection (d) of this Section to review the inputs to 26 the performance-based formula rate shall be expensed HB4661 - 23 - LRB103 37733 SPS 67860 b HB4661- 24 -LRB103 37733 SPS 67860 b HB4661 - 24 - LRB103 37733 SPS 67860 b HB4661 - 24 - LRB103 37733 SPS 67860 b 1 and recovered through the performance-based formula 2 rate; 3 (F) amortization over a 5-year period of the full 4 amount of each charge or credit that exceeds 5 $3,700,000 for a participating utility that is a 6 combination utility or $10,000,000 for a participating 7 utility that serves more than 3 million retail 8 customers in the applicable calendar year and that 9 relates to a workforce reduction program's severance 10 costs, changes in accounting rules, changes in law, 11 compliance with any Commission-initiated audit, or a 12 single storm or other similar expense, provided that 13 any unamortized balance shall be reflected in the rate 14 base. For purposes of this subparagraph (F), changes 15 in law includes any enactment, repeal, or amendment in 16 a law, ordinance, rule, regulation, interpretation, 17 permit, license, consent, or order, including those 18 relating to taxes, accounting, or to environmental 19 matters, or in the interpretation or application 20 thereof by any governmental authority occurring after 21 October 26, 2011 (the effective date of Public Act 22 97-616); 23 (G) recovery of existing regulatory assets over 24 the periods previously authorized by the Commission; 25 (H) historical weather normalized billing 26 determinants; and HB4661 - 24 - LRB103 37733 SPS 67860 b HB4661- 25 -LRB103 37733 SPS 67860 b HB4661 - 25 - LRB103 37733 SPS 67860 b HB4661 - 25 - LRB103 37733 SPS 67860 b 1 (I) allocation methods for common costs. 2 (5) Provide that if the participating utility's earned 3 rate of return on common equity related to the provision 4 of delivery services for the prior rate year (calculated 5 using costs and capital structure approved by the 6 Commission as provided in subparagraph (2) of this 7 subsection (c), consistent with this Section, in 8 accordance with Commission rules and orders, including, 9 but not limited to, adjustments for goodwill, and after 10 any Commission-ordered disallowances and taxes) is more 11 than 50 basis points higher than the rate of return on 12 common equity calculated pursuant to paragraph (3) of this 13 subsection (c) (after adjusting for any penalties to the 14 rate of return on common equity applied pursuant to the 15 performance metrics provision of subsection (f) of this 16 Section), then the participating utility shall apply a 17 credit through the performance-based formula rate that 18 reflects an amount equal to the value of that portion of 19 the earned rate of return on common equity that is more 20 than 50 basis points higher than the rate of return on 21 common equity calculated pursuant to paragraph (3) of this 22 subsection (c) (after adjusting for any penalties to the 23 rate of return on common equity applied pursuant to the 24 performance metrics provision of subsection (f) of this 25 Section) for the prior rate year, adjusted for taxes. If 26 the participating utility's earned rate of return on HB4661 - 25 - LRB103 37733 SPS 67860 b HB4661- 26 -LRB103 37733 SPS 67860 b HB4661 - 26 - LRB103 37733 SPS 67860 b HB4661 - 26 - LRB103 37733 SPS 67860 b 1 common equity related to the provision of delivery 2 services for the prior rate year (calculated using costs 3 and capital structure approved by the Commission as 4 provided in subparagraph (2) of this subsection (c), 5 consistent with this Section, in accordance with 6 Commission rules and orders, including, but not limited 7 to, adjustments for goodwill, and after any 8 Commission-ordered disallowances and taxes) is more than 9 50 basis points less than the return on common equity 10 calculated pursuant to paragraph (3) of this subsection 11 (c) (after adjusting for any penalties to the rate of 12 return on common equity applied pursuant to the 13 performance metrics provision of subsection (f) of this 14 Section), then the participating utility shall apply a 15 charge through the performance-based formula rate that 16 reflects an amount equal to the value of that portion of 17 the earned rate of return on common equity that is more 18 than 50 basis points less than the rate of return on common 19 equity calculated pursuant to paragraph (3) of this 20 subsection (c) (after adjusting for any penalties to the 21 rate of return on common equity applied pursuant to the 22 performance metrics provision of subsection (f) of this 23 Section) for the prior rate year, adjusted for taxes. 24 (6) Provide for an annual reconciliation, as described 25 in subsection (d) of this Section, with interest, of the 26 revenue requirement reflected in rates for each calendar HB4661 - 26 - LRB103 37733 SPS 67860 b HB4661- 27 -LRB103 37733 SPS 67860 b HB4661 - 27 - LRB103 37733 SPS 67860 b HB4661 - 27 - LRB103 37733 SPS 67860 b 1 year, beginning with the calendar year in which the 2 utility files its performance-based formula rate tariff 3 pursuant to subsection (c) of this Section, with what the 4 revenue requirement would have been had the actual cost 5 information for the applicable calendar year been 6 available at the filing date. 7 The utility shall file, together with its tariff, final 8 data based on its most recently filed FERC Form 1, plus 9 projected plant additions and correspondingly updated 10 depreciation reserve and expense for the calendar year in 11 which the tariff and data are filed, that shall populate the 12 performance-based formula rate and set the initial delivery 13 services rates under the formula. For purposes of this 14 Section, "FERC Form 1" means the Annual Report of Major 15 Electric Utilities, Licensees and Others that electric 16 utilities are required to file with the Federal Energy 17 Regulatory Commission under the Federal Power Act, Sections 3, 18 4(a), 304 and 209, modified as necessary to be consistent with 19 83 Ill. Adm. Code Part 415 as of May 1, 2011. Nothing in this 20 Section is intended to allow costs that are not otherwise 21 recoverable to be recoverable by virtue of inclusion in FERC 22 Form 1. 23 After the utility files its proposed performance-based 24 formula rate structure and protocols and initial rates, the 25 Commission shall initiate a docket to review the filing. The 26 Commission shall enter an order approving, or approving as HB4661 - 27 - LRB103 37733 SPS 67860 b HB4661- 28 -LRB103 37733 SPS 67860 b HB4661 - 28 - LRB103 37733 SPS 67860 b HB4661 - 28 - LRB103 37733 SPS 67860 b 1 modified, the performance-based formula rate, including the 2 initial rates, as just and reasonable within 270 days after 3 the date on which the tariff was filed, or, if the tariff is 4 filed within 14 days after October 26, 2011 (the effective 5 date of Public Act 97-616), then by May 31, 2012. Such review 6 shall be based on the same evidentiary standards, including, 7 but not limited to, those concerning the prudence and 8 reasonableness of the costs incurred by the utility, the 9 Commission applies in a hearing to review a filing for a 10 general increase in rates under Article IX of this Act. The 11 initial rates shall take effect within 30 days after the 12 Commission's order approving the performance-based formula 13 rate tariff. 14 Until such time as the Commission approves a different 15 rate design and cost allocation pursuant to subsection (e) of 16 this Section, rate design and cost allocation across customer 17 classes shall be consistent with the Commission's most recent 18 order regarding the participating utility's request for a 19 general increase in its delivery services rates. 20 Subsequent changes to the performance-based formula rate 21 structure or protocols shall be made as set forth in Section 22 9-201 of this Act, but nothing in this subsection (c) is 23 intended to limit the Commission's authority under Article IX 24 and other provisions of this Act to initiate an investigation 25 of a participating utility's performance-based formula rate 26 tariff, provided that any such changes shall be consistent HB4661 - 28 - LRB103 37733 SPS 67860 b HB4661- 29 -LRB103 37733 SPS 67860 b HB4661 - 29 - LRB103 37733 SPS 67860 b HB4661 - 29 - LRB103 37733 SPS 67860 b 1 with paragraphs (1) through (6) of this subsection (c). Any 2 change ordered by the Commission shall be made at the same time 3 new rates take effect following the Commission's next order 4 pursuant to subsection (d) of this Section, provided that the 5 new rates take effect no less than 30 days after the date on 6 which the Commission issues an order adopting the change. 7 A participating utility that files a tariff pursuant to 8 this subsection (c) must submit a one-time $200,000 filing fee 9 at the time the Chief Clerk of the Commission accepts the 10 filing, which shall be a recoverable expense. 11 In the event the performance-based formula rate is 12 terminated, the then current rates shall remain in effect 13 until such time as new rates are set pursuant to Article IX of 14 this Act, subject to retroactive rate adjustment, with 15 interest, to reconcile rates charged with actual costs. At 16 such time that the performance-based formula rate is 17 terminated, the participating utility's voluntary commitments 18 and obligations under subsection (b) of this Section shall 19 immediately terminate, except for the utility's obligation to 20 pay an amount already owed to the fund for training grants 21 pursuant to a Commission order issued under subsection (b) of 22 this Section. 23 (d) Subsequent to the Commission's issuance of an order 24 approving the utility's performance-based formula rate 25 structure and protocols, and initial rates under subsection 26 (c) of this Section, the utility shall file, on or before May 1 HB4661 - 29 - LRB103 37733 SPS 67860 b HB4661- 30 -LRB103 37733 SPS 67860 b HB4661 - 30 - LRB103 37733 SPS 67860 b HB4661 - 30 - LRB103 37733 SPS 67860 b 1 of each year, with the Chief Clerk of the Commission its 2 updated cost inputs to the performance-based formula rate for 3 the applicable rate year and the corresponding new charges. 4 Each such filing shall conform to the following requirements 5 and include the following information: 6 (1) The inputs to the performance-based formula rate 7 for the applicable rate year shall be based on final 8 historical data reflected in the utility's most recently 9 filed annual FERC Form 1 plus projected plant additions 10 and correspondingly updated depreciation reserve and 11 expense for the calendar year in which the inputs are 12 filed. The filing shall also include a reconciliation of 13 the revenue requirement that was in effect for the prior 14 rate year (as set by the cost inputs for the prior rate 15 year) with the actual revenue requirement for the prior 16 rate year (determined using a year-end rate base) that 17 uses amounts reflected in the applicable FERC Form 1 that 18 reports the actual costs for the prior rate year. Any 19 over-collection or under-collection indicated by such 20 reconciliation shall be reflected as a credit against, or 21 recovered as an additional charge to, respectively, with 22 interest calculated at a rate equal to the utility's 23 weighted average cost of capital approved by the 24 Commission for the prior rate year, the charges for the 25 applicable rate year. Provided, however, that the first 26 such reconciliation shall be for the calendar year in HB4661 - 30 - LRB103 37733 SPS 67860 b HB4661- 31 -LRB103 37733 SPS 67860 b HB4661 - 31 - LRB103 37733 SPS 67860 b HB4661 - 31 - LRB103 37733 SPS 67860 b 1 which the utility files its performance-based formula rate 2 tariff pursuant to subsection (c) of this Section and 3 shall reconcile (i) the revenue requirement or 4 requirements established by the rate order or orders in 5 effect from time to time during such calendar year 6 (weighted, as applicable) with (ii) the revenue 7 requirement determined using a year-end rate base for that 8 calendar year calculated pursuant to the performance-based 9 formula rate using (A) actual costs for that year as 10 reflected in the applicable FERC Form 1, and (B) for the 11 first such reconciliation only, the cost of equity, which 12 shall be calculated as the sum of 590 basis points plus the 13 average for the applicable calendar year of the monthly 14 average yields of 30-year U.S. Treasury bonds published by 15 the Board of Governors of the Federal Reserve System in 16 its weekly H.15 Statistical Release or successor 17 publication. The first such reconciliation is not intended 18 to provide for the recovery of costs previously excluded 19 from rates based on a prior Commission order finding of 20 imprudence or unreasonableness. Each reconciliation shall 21 be certified by the participating utility in the same 22 manner that FERC Form 1 is certified. The filing shall 23 also include the charge or credit, if any, resulting from 24 the calculation required by paragraph (6) of subsection 25 (c) of this Section. 26 Notwithstanding anything that may be to the contrary, HB4661 - 31 - LRB103 37733 SPS 67860 b HB4661- 32 -LRB103 37733 SPS 67860 b HB4661 - 32 - LRB103 37733 SPS 67860 b HB4661 - 32 - LRB103 37733 SPS 67860 b 1 the intent of the reconciliation is to ultimately 2 reconcile the revenue requirement reflected in rates for 3 each calendar year, beginning with the calendar year in 4 which the utility files its performance-based formula rate 5 tariff pursuant to subsection (c) of this Section, with 6 what the revenue requirement determined using a year-end 7 rate base for the applicable calendar year would have been 8 had the actual cost information for the applicable 9 calendar year been available at the filing date. 10 (2) The new charges shall take effect beginning on the 11 first billing day of the following January billing period 12 and remain in effect through the last billing day of the 13 next December billing period regardless of whether the 14 Commission enters upon a hearing pursuant to this 15 subsection (d). 16 (3) The filing shall include relevant and necessary 17 data and documentation for the applicable rate year that 18 is consistent with the Commission's rules applicable to a 19 filing for a general increase in rates or any rules 20 adopted by the Commission to implement this Section. 21 Normalization adjustments shall not be required. 22 Notwithstanding any other provision of this Section or Act 23 or any rule or other requirement adopted by the 24 Commission, a participating utility that is a combination 25 utility with more than one rate zone shall not be required 26 to file a separate set of such data and documentation for HB4661 - 32 - LRB103 37733 SPS 67860 b HB4661- 33 -LRB103 37733 SPS 67860 b HB4661 - 33 - LRB103 37733 SPS 67860 b HB4661 - 33 - LRB103 37733 SPS 67860 b 1 each rate zone and may combine such data and documentation 2 into a single set of schedules. 3 Within 45 days after the utility files its annual update 4 of cost inputs to the performance-based formula rate, the 5 Commission shall have the authority, either upon complaint or 6 its own initiative, but with reasonable notice, to enter upon 7 a hearing concerning the prudence and reasonableness of the 8 costs incurred by the utility to be recovered during the 9 applicable rate year that are reflected in the inputs to the 10 performance-based formula rate derived from the utility's FERC 11 Form 1. During the course of the hearing, each objection shall 12 be stated with particularity and evidence provided in support 13 thereof, after which the utility shall have the opportunity to 14 rebut the evidence. Discovery shall be allowed consistent with 15 the Commission's Rules of Practice, which Rules shall be 16 enforced by the Commission or the assigned administrative law 17 judge. The Commission shall apply the same evidentiary 18 standards, including, but not limited to, those concerning the 19 prudence and reasonableness of the costs incurred by the 20 utility, in the hearing as it would apply in a hearing to 21 review a filing for a general increase in rates under Article 22 IX of this Act. The Commission shall not, however, have the 23 authority in a proceeding under this subsection (d) to 24 consider or order any changes to the structure or protocols of 25 the performance-based formula rate approved pursuant to 26 subsection (c) of this Section. In a proceeding under this HB4661 - 33 - LRB103 37733 SPS 67860 b HB4661- 34 -LRB103 37733 SPS 67860 b HB4661 - 34 - LRB103 37733 SPS 67860 b HB4661 - 34 - LRB103 37733 SPS 67860 b 1 subsection (d), the Commission shall enter its order no later 2 than the earlier of 240 days after the utility's filing of its 3 annual update of cost inputs to the performance-based formula 4 rate or December 31. The Commission's determinations of the 5 prudence and reasonableness of the costs incurred for the 6 applicable calendar year shall be final upon entry of the 7 Commission's order and shall not be subject to reopening, 8 reexamination, or collateral attack in any other Commission 9 proceeding, case, docket, order, rule or regulation, provided, 10 however, that nothing in this subsection (d) shall prohibit a 11 party from petitioning the Commission to rehear or appeal to 12 the courts the order pursuant to the provisions of this Act. 13 In the event the Commission does not, either upon 14 complaint or its own initiative, enter upon a hearing within 15 45 days after the utility files the annual update of cost 16 inputs to its performance-based formula rate, then the costs 17 incurred for the applicable calendar year shall be deemed 18 prudent and reasonable, and the filed charges shall not be 19 subject to reopening, reexamination, or collateral attack in 20 any other proceeding, case, docket, order, rule, or 21 regulation. 22 A participating utility's first filing of the updated cost 23 inputs, and any Commission investigation of such inputs 24 pursuant to this subsection (d) shall proceed notwithstanding 25 the fact that the Commission's investigation under subsection 26 (c) of this Section is still pending and notwithstanding any HB4661 - 34 - LRB103 37733 SPS 67860 b HB4661- 35 -LRB103 37733 SPS 67860 b HB4661 - 35 - LRB103 37733 SPS 67860 b HB4661 - 35 - LRB103 37733 SPS 67860 b 1 other law, order, rule, or Commission practice to the 2 contrary. 3 (e) Nothing in subsections (c) or (d) of this Section 4 shall prohibit the Commission from investigating, or a 5 participating utility from filing, revenue-neutral tariff 6 changes related to rate design of a performance-based formula 7 rate that has been placed into effect for the utility. 8 Following approval of a participating utility's 9 performance-based formula rate tariff pursuant to subsection 10 (c) of this Section, the utility shall make a filing with the 11 Commission within one year after the effective date of the 12 performance-based formula rate tariff that proposes changes to 13 the tariff to incorporate the findings of any final rate 14 design orders of the Commission applicable to the 15 participating utility and entered subsequent to the 16 Commission's approval of the tariff. The Commission shall, 17 after notice and hearing, enter its order approving, or 18 approving with modification, the proposed changes to the 19 performance-based formula rate tariff within 240 days after 20 the utility's filing. Following such approval, the utility 21 shall make a filing with the Commission during each subsequent 22 3-year period that either proposes revenue-neutral tariff 23 changes or re-files the existing tariffs without change, which 24 shall present the Commission with an opportunity to suspend 25 the tariffs and consider revenue-neutral tariff changes 26 related to rate design. HB4661 - 35 - LRB103 37733 SPS 67860 b HB4661- 36 -LRB103 37733 SPS 67860 b HB4661 - 36 - LRB103 37733 SPS 67860 b HB4661 - 36 - LRB103 37733 SPS 67860 b 1 (f) Within 30 days after the filing of a tariff pursuant to 2 subsection (c) of this Section, each participating utility 3 shall develop and file with the Commission multi-year metrics 4 designed to achieve, ratably (i.e., in equal segments) over a 5 10-year period, improvement over baseline performance values 6 as follows: 7 (1) Twenty percent improvement in the System Average 8 Interruption Frequency Index, using a baseline of the 9 average of the data from 2001 through 2010. 10 (2) Fifteen percent improvement in the system Customer 11 Average Interruption Duration Index, using a baseline of 12 the average of the data from 2001 through 2010. 13 (3) For a participating utility other than a 14 combination utility, 20% improvement in the System Average 15 Interruption Frequency Index for its Southern Region, 16 using a baseline of the average of the data from 2001 17 through 2010. For purposes of this paragraph (3), Southern 18 Region shall have the meaning set forth in the 19 participating utility's most recent report filed pursuant 20 to Section 16-125 of this Act. 21 (3.5) For a participating utility other than a 22 combination utility, 20% improvement in the System Average 23 Interruption Frequency Index for its Northeastern Region, 24 using a baseline of the average of the data from 2001 25 through 2010. For purposes of this paragraph (3.5), 26 Northeastern Region shall have the meaning set forth in HB4661 - 36 - LRB103 37733 SPS 67860 b HB4661- 37 -LRB103 37733 SPS 67860 b HB4661 - 37 - LRB103 37733 SPS 67860 b HB4661 - 37 - LRB103 37733 SPS 67860 b 1 the participating utility's most recent report filed 2 pursuant to Section 16-125 of this Act. 3 (4) Seventy-five percent improvement in the total 4 number of customers who exceed the service reliability 5 targets as set forth in subparagraphs (A) through (C) of 6 paragraph (4) of subsection (b) of 83 Ill. Adm. Code 7 411.140 as of May 1, 2011, using 2010 as the baseline year. 8 (5) Reduction in issuance of estimated electric bills: 9 90% improvement for a participating utility other than a 10 combination utility, and 56% improvement for a 11 participating utility that is a combination utility, using 12 a baseline of the average number of estimated bills for 13 the years 2008 through 2010. 14 (6) Consumption on inactive meters: 90% improvement 15 for a participating utility other than a combination 16 utility, and 56% improvement for a participating utility 17 that is a combination utility, using a baseline of the 18 average unbilled kilowatthours for the years 2009 and 19 2010. 20 (7) Unaccounted for energy: 50% improvement for a 21 participating utility other than a combination utility 22 using a baseline of the non-technical line loss 23 unaccounted for energy kilowatthours for the year 2009. 24 (8) Uncollectible expense: reduce uncollectible 25 expense by at least $30,000,000 for a participating 26 utility other than a combination utility and by at least HB4661 - 37 - LRB103 37733 SPS 67860 b HB4661- 38 -LRB103 37733 SPS 67860 b HB4661 - 38 - LRB103 37733 SPS 67860 b HB4661 - 38 - LRB103 37733 SPS 67860 b 1 $3,500,000 for a participating utility that is a 2 combination utility, using a baseline of the average 3 uncollectible expense for the years 2008 through 2010. 4 (9) Opportunities for minority-owned and female-owned 5 business enterprises: design a performance metric 6 regarding the creation of opportunities for minority-owned 7 and female-owned business enterprises consistent with 8 State and federal law using a base performance value of 9 the percentage of the participating utility's capital 10 expenditures that were paid to minority-owned and 11 female-owned business enterprises in 2010. 12 The definitions set forth in 83 Ill. Adm. Code 411.20 as of 13 May 1, 2011 shall be used for purposes of calculating 14 performance under paragraphs (1) through (3.5) of this 15 subsection (f), provided, however, that the participating 16 utility may exclude up to 9 extreme weather event days from 17 such calculation for each year, and provided further that the 18 participating utility shall exclude 9 extreme weather event 19 days when calculating each year of the baseline period to the 20 extent that there are 9 such days in a given year of the 21 baseline period. For purposes of this Section, an extreme 22 weather event day is a 24-hour calendar day (beginning at 23 12:00 a.m. and ending at 11:59 p.m.) during which any weather 24 event (e.g., storm, tornado) caused interruptions for 10,000 25 or more of the participating utility's customers for 3 hours 26 or more. If there are more than 9 extreme weather event days in HB4661 - 38 - LRB103 37733 SPS 67860 b HB4661- 39 -LRB103 37733 SPS 67860 b HB4661 - 39 - LRB103 37733 SPS 67860 b HB4661 - 39 - LRB103 37733 SPS 67860 b 1 a year, then the utility may choose no more than 9 extreme 2 weather event days to exclude, provided that the same extreme 3 weather event days are excluded from each of the calculations 4 performed under paragraphs (1) through (3.5) of this 5 subsection (f). 6 The metrics shall include incremental performance goals 7 for each year of the 10-year period, which shall be designed to 8 demonstrate that the utility is on track to achieve the 9 performance goal in each category at the end of the 10-year 10 period. The utility shall elect when the 10-year period shall 11 commence for the metrics set forth in subparagraphs (1) 12 through (4) and (9) of this subsection (f), provided that it 13 begins no later than 14 months following the date on which the 14 utility begins investing pursuant to subsection (b) of this 15 Section, and when the 10-year period shall commence for the 16 metrics set forth in subparagraphs (5) through (8) of this 17 subsection (f), provided that it begins no later than 14 18 months following the date on which the Commission enters its 19 order approving the utility's Advanced Metering Infrastructure 20 Deployment Plan pursuant to subsection (c) of Section 16-108.6 21 of this Act. 22 The metrics and performance goals set forth in 23 subparagraphs (5) through (8) of this subsection (f) are based 24 on the assumptions that the participating utility may fully 25 implement the technology described in subsection (b) of this 26 Section, including utilizing the full functionality of such HB4661 - 39 - LRB103 37733 SPS 67860 b HB4661- 40 -LRB103 37733 SPS 67860 b HB4661 - 40 - LRB103 37733 SPS 67860 b HB4661 - 40 - LRB103 37733 SPS 67860 b 1 technology and that there is no requirement for personal 2 on-site notification. If the utility is unable to meet the 3 metrics and performance goals set forth in subparagraphs (5) 4 through (8) of this subsection (f) for such reasons, and the 5 Commission so finds after notice and hearing, then the utility 6 shall be excused from compliance, but only to the limited 7 extent achievement of the affected metrics and performance 8 goals was hindered by the less than full implementation. 9 (f-5) The financial penalties applicable to the metrics 10 described in subparagraphs (1) through (8) of subsection (f) 11 of this Section, as applicable, shall be applied through an 12 adjustment to the participating utility's return on equity of 13 no more than a total of 30 basis points in each of the first 3 14 years, of no more than a total of 34 basis points in each of 15 the 3 years thereafter, and of no more than a total of 38 basis 16 points in each of the 4 years thereafter, as follows: 17 (1) With respect to each of the incremental annual 18 performance goals established pursuant to paragraph (1) of 19 subsection (f) of this Section, 20 (A) for each year that a participating utility 21 other than a combination utility does not achieve the 22 annual goal, the participating utility's return on 23 equity shall be reduced as follows: during years 1 24 through 3, by 5 basis points; during years 4 through 6, 25 by 6 basis points; and during years 7 through 10, by 7 26 basis points; and HB4661 - 40 - LRB103 37733 SPS 67860 b HB4661- 41 -LRB103 37733 SPS 67860 b HB4661 - 41 - LRB103 37733 SPS 67860 b HB4661 - 41 - LRB103 37733 SPS 67860 b 1 (B) for each year that a participating utility 2 that is a combination utility does not achieve the 3 annual goal, the participating utility's return on 4 equity shall be reduced as follows: during years 1 5 through 3, by 10 basis points; during years 4 through 6 6, by 12 basis points; and during years 7 through 10, 7 by 14 basis points. 8 (2) With respect to each of the incremental annual 9 performance goals established pursuant to paragraph (2) of 10 subsection (f) of this Section, for each year that the 11 participating utility does not achieve each such goal, the 12 participating utility's return on equity shall be reduced 13 as follows: during years 1 through 3, by 5 basis points; 14 during years 4 through 6, by 6 basis points; and during 15 years 7 through 10, by 7 basis points. 16 (3) With respect to each of the incremental annual 17 performance goals established pursuant to paragraphs (3) 18 and (3.5) of subsection (f) of this Section, for each year 19 that a participating utility other than a combination 20 utility does not achieve both such goals, the 21 participating utility's return on equity shall be reduced 22 as follows: during years 1 through 3, by 5 basis points; 23 during years 4 through 6, by 6 basis points; and during 24 years 7 through 10, by 7 basis points. 25 (4) With respect to each of the incremental annual 26 performance goals established pursuant to paragraph (4) of HB4661 - 41 - LRB103 37733 SPS 67860 b HB4661- 42 -LRB103 37733 SPS 67860 b HB4661 - 42 - LRB103 37733 SPS 67860 b HB4661 - 42 - LRB103 37733 SPS 67860 b 1 subsection (f) of this Section, for each year that the 2 participating utility does not achieve each such goal, the 3 participating utility's return on equity shall be reduced 4 as follows: during years 1 through 3, by 5 basis points; 5 during years 4 through 6, by 6 basis points; and during 6 years 7 through 10, by 7 basis points. 7 (5) With respect to each of the incremental annual 8 performance goals established pursuant to subparagraph (5) 9 of subsection (f) of this Section, for each year that the 10 participating utility does not achieve at least 95% of 11 each such goal, the participating utility's return on 12 equity shall be reduced by 5 basis points for each such 13 unachieved goal. 14 (6) With respect to each of the incremental annual 15 performance goals established pursuant to paragraphs (6), 16 (7), and (8) of subsection (f) of this Section, as 17 applicable, which together measure non-operational 18 customer savings and benefits relating to the 19 implementation of the Advanced Metering Infrastructure 20 Deployment Plan, as defined in Section 16-108.6 of this 21 Act, the performance under each such goal shall be 22 calculated in terms of the percentage of the goal 23 achieved. The percentage of goal achieved for each of the 24 goals shall be aggregated, and an average percentage value 25 calculated, for each year of the 10-year period. If the 26 utility does not achieve an average percentage value in a HB4661 - 42 - LRB103 37733 SPS 67860 b HB4661- 43 -LRB103 37733 SPS 67860 b HB4661 - 43 - LRB103 37733 SPS 67860 b HB4661 - 43 - LRB103 37733 SPS 67860 b 1 given year of at least 95%, the participating utility's 2 return on equity shall be reduced by 5 basis points. 3 The financial penalties shall be applied as described in 4 this subsection (f-5) for the 12-month period in which the 5 deficiency occurred through a separate tariff mechanism, which 6 shall be filed by the utility together with its metrics. In the 7 event the formula rate tariff established pursuant to 8 subsection (c) of this Section terminates, the utility's 9 obligations under subsection (f) of this Section and this 10 subsection (f-5) shall also terminate, provided, however, that 11 the tariff mechanism established pursuant to subsection (f) of 12 this Section and this subsection (f-5) shall remain in effect 13 until any penalties due and owing at the time of such 14 termination are applied. 15 The Commission shall, after notice and hearing, enter an 16 order within 120 days after the metrics are filed approving, 17 or approving with modification, a participating utility's 18 tariff or mechanism to satisfy the metrics set forth in 19 subsection (f) of this Section. On June 1 of each subsequent 20 year, each participating utility shall file a report with the 21 Commission that includes, among other things, a description of 22 how the participating utility performed under each metric and 23 an identification of any extraordinary events that adversely 24 impacted the utility's performance. Whenever a participating 25 utility does not satisfy the metrics required pursuant to 26 subsection (f) of this Section, the Commission shall, after HB4661 - 43 - LRB103 37733 SPS 67860 b HB4661- 44 -LRB103 37733 SPS 67860 b HB4661 - 44 - LRB103 37733 SPS 67860 b HB4661 - 44 - LRB103 37733 SPS 67860 b 1 notice and hearing, enter an order approving financial 2 penalties in accordance with this subsection (f-5). The 3 Commission-approved financial penalties shall be applied 4 beginning with the next rate year. Nothing in this Section 5 shall authorize the Commission to reduce or otherwise obviate 6 the imposition of financial penalties for failing to achieve 7 one or more of the metrics established pursuant to 8 subparagraphs (1) through (4) of subsection (f) of this 9 Section. 10 (g) On or before July 31, 2014, each participating utility 11 shall file a report with the Commission that sets forth the 12 average annual increase in the average amount paid per 13 kilowatthour for residential eligible retail customers, 14 exclusive of the effects of energy efficiency programs, 15 comparing the 12-month period ending May 31, 2012; the 16 12-month period ending May 31, 2013; and the 12-month period 17 ending May 31, 2014. For a participating utility that is a 18 combination utility with more than one rate zone, the weighted 19 average aggregate increase shall be provided. The report shall 20 be filed together with a statement from an independent auditor 21 attesting to the accuracy of the report. The cost of the 22 independent auditor shall be borne by the participating 23 utility and shall not be a recoverable expense. "The average 24 amount paid per kilowatthour" shall be based on the 25 participating utility's tariffed rates actually in effect and 26 shall not be calculated using any hypothetical rate or HB4661 - 44 - LRB103 37733 SPS 67860 b HB4661- 45 -LRB103 37733 SPS 67860 b HB4661 - 45 - LRB103 37733 SPS 67860 b HB4661 - 45 - LRB103 37733 SPS 67860 b 1 adjustments to actual charges (other than as specified for 2 energy efficiency) as an input. 3 In the event that the average annual increase exceeds 2.5% 4 as calculated pursuant to this subsection (g), then Sections 5 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other 6 than this subsection, shall be inoperative as they relate to 7 the utility and its service area as of the date of the report 8 due to be submitted pursuant to this subsection and the 9 utility shall no longer be eligible to annually update the 10 performance-based formula rate tariff pursuant to subsection 11 (d) of this Section. In such event, the then current rates 12 shall remain in effect until such time as new rates are set 13 pursuant to Article IX of this Act, subject to retroactive 14 adjustment, with interest, to reconcile rates charged with 15 actual costs, and the participating utility's voluntary 16 commitments and obligations under subsection (b) of this 17 Section shall immediately terminate, except for the utility's 18 obligation to pay an amount already owed to the fund for 19 training grants pursuant to a Commission order issued under 20 subsection (b) of this Section. 21 In the event that the average annual increase is 2.5% or 22 less as calculated pursuant to this subsection (g), then the 23 performance-based formula rate shall remain in effect as set 24 forth in this Section. 25 For purposes of this Section, the amount per kilowatthour 26 means the total amount paid for electric service expressed on HB4661 - 45 - LRB103 37733 SPS 67860 b HB4661- 46 -LRB103 37733 SPS 67860 b HB4661 - 46 - LRB103 37733 SPS 67860 b HB4661 - 46 - LRB103 37733 SPS 67860 b 1 a per kilowatthour basis, and the total amount paid for 2 electric service includes without limitation amounts paid for 3 supply, transmission, distribution, surcharges, and add-on 4 taxes exclusive of any increases in taxes or new taxes imposed 5 after October 26, 2011 (the effective date of Public Act 6 97-616). For purposes of this Section, "eligible retail 7 customers" shall have the meaning set forth in Section 8 16-111.5 of this Act. 9 The fact that this Section becomes inoperative as set 10 forth in this subsection shall not be construed to mean that 11 the Commission may reexamine or otherwise reopen prudence or 12 reasonableness determinations already made. 13 (h) By December 31, 2017, the Commission shall prepare and 14 file with the General Assembly a report on the infrastructure 15 program and the performance-based formula rate. The report 16 shall include the change in the average amount per 17 kilowatthour paid by residential customers between June 1, 18 2011 and May 31, 2017. If the change in the total average rate 19 paid exceeds 2.5% compounded annually, the Commission shall 20 include in the report an analysis that shows the portion of the 21 change due to the delivery services component and the portion 22 of the change due to the supply component of the rate. The 23 report shall include separate sections for each participating 24 utility. 25 The provisions of Sections 16-108.5, 16-108.6, 16-108.7, 26 and 16-108.8 of this Act and the provisions of this Section, HB4661 - 46 - LRB103 37733 SPS 67860 b HB4661- 47 -LRB103 37733 SPS 67860 b HB4661 - 47 - LRB103 37733 SPS 67860 b HB4661 - 47 - LRB103 37733 SPS 67860 b 1 other than this subsection (h) and subsection (i) of this 2 Section, are inoperative after December 31, 2022 for every 3 participating utility, after which time a participating 4 utility shall no longer be eligible to annually update the 5 performance-based formula rate tariff pursuant to subsection 6 (d) of this Section. At such time, the then current rates shall 7 remain in effect until such time as new rates are set pursuant 8 to Article IX of this Act, subject to retroactive adjustment, 9 with interest, to reconcile rates charged with actual costs. 10 The fact that this Section becomes inoperative as set 11 forth in this subsection shall not be construed to mean that 12 the Commission may reexamine or otherwise reopen prudence or 13 reasonableness determinations already made. 14 (i) The provisions of this subsection (i) are inoperative 15 after December 31, 2027. 16 While an electric a participating utility may use, 17 develop, and maintain broadband systems and the delivery of 18 broadband services, Voice over Internet Protocol (VoIP) 19 voice-over-internet-protocol services, telecommunications 20 services, and cable or and video programming services for use 21 in providing delivery services and Smart Grid functionality or 22 application to its retail customers, an electric including, 23 but not limited to, the installation, implementation and 24 maintenance of Smart Grid electric system upgrades as defined 25 in Section 16-108.6 of this Act, a participating utility is 26 prohibited from providing to its retail customers broadband HB4661 - 47 - LRB103 37733 SPS 67860 b HB4661- 48 -LRB103 37733 SPS 67860 b HB4661 - 48 - LRB103 37733 SPS 67860 b HB4661 - 48 - LRB103 37733 SPS 67860 b 1 services, Voice over Internet Protocol (VoIP) 2 voice-over-internet-protocol services, telecommunications 3 services, or cable or video programming services, unless they 4 are part of a service directly related to delivery services or 5 Smart Grid functionality or applications as defined in Section 6 16-108.6 of this Act, and from recovering the costs of such 7 offerings from retail customers. The prohibition set forth in 8 this subsection (i) is inoperative after December 31, 2027 for 9 every participating utility. 10 Furthermore, an electric utility in a county with a 11 population of 3,000,000 or more shall not authorize any other 12 person or grant any other person the right, by agreement, 13 lease, license, or otherwise, to access, control, use, or 14 operate that electric utility's infrastructure, facilities, or 15 assets of any kind or to deliver or provide to that electric 16 utility's customers or any other person's customers, broadband 17 services, Voice over Internet Protocol (VoIP) services, 18 telecommunications services, or cable or video programming 19 services. 20 However, notwithstanding the prohibitions set forth in 21 this Section, an electric utility in a county with a 22 population of 3,000,000 or more may authorize or grant another 23 person the right to access or use the electric utility's 24 infrastructure, facilities, or assets, including, but not 25 limited to, middle mile infrastructure, to facilitate the 26 delivery of broadband services to Illinois residential and HB4661 - 48 - LRB103 37733 SPS 67860 b HB4661- 49 -LRB103 37733 SPS 67860 b HB4661 - 49 - LRB103 37733 SPS 67860 b HB4661 - 49 - LRB103 37733 SPS 67860 b 1 commercial customers on the condition that the access to and 2 use of that electric utility's infrastructure, facilities, and 3 assets (A) be granted on a non-discriminatory, non-exclusive, 4 and competitively neutral basis; and (B) comply with all other 5 State and federal laws, rules, and regulations, including, but 6 not limited to, all applicable safety codes and requirements. 7 If there is any dispute regarding the terms, rates, or 8 conditions of access to or use of that electric utility's 9 infrastructure, facilities, and assets to facilitate the 10 delivery of broadband services to Illinois residential and 11 commercial customers, the Commission, upon the petition of any 12 party, shall hear and decide the dispute in accordance with 13 the Commission's Rules of Practice (83 Ill. Adm. Code Part 14 200). 15 Nothing in this amendatory Act of the 103rd General 16 Assembly shall be construed to alter or diminish the rights or 17 obligations of any person under, nor shall it be deemed to 18 conflict with, the federal Pole Attachment Act (47 U.S.C. 19 224). 20 As used in this subsection (i): 21 "Broadband services" means the services that are used to 22 deliver to subscribers a high-speed service connection to the 23 public Internet that is capable of supporting, in at least one 24 direction, a speed in excess of 200 kilobits per second (kbps) 25 to the network demarcation point at the subscribers' premises. 26 "Electric utility" has the meaning set forth in Section HB4661 - 49 - LRB103 37733 SPS 67860 b HB4661- 50 -LRB103 37733 SPS 67860 b HB4661 - 50 - LRB103 37733 SPS 67860 b HB4661 - 50 - LRB103 37733 SPS 67860 b 1 16-102. 2 "Middle mile infrastructure" has the meaning provided in 3 Section 60401 of the federal Infrastructure Investment and 4 Jobs Act (47 U.S.C. 1741). 5 (j) Nothing in this Section is intended to legislatively 6 overturn the opinion issued in Commonwealth Edison Co. v. Ill. 7 Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137, 8 1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App. 9 Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be 10 construed as creating a contract between the General Assembly 11 and the participating utility, and shall not establish a 12 property right in the participating utility. 13 (k) The changes made in subsections (c) and (d) of this 14 Section by Public Act 98-15 are intended to be a restatement 15 and clarification of existing law, and intended to give 16 binding effect to the provisions of House Resolution 1157 17 adopted by the House of Representatives of the 97th General 18 Assembly and Senate Resolution 821 adopted by the Senate of 19 the 97th General Assembly that are reflected in paragraph (3) 20 of this subsection. In addition, Public Act 98-15 preempts and 21 supersedes any final Commission orders entered in Docket Nos. 22 11-0721, 12-0001, 12-0293, and 12-0321 to the extent 23 inconsistent with the amendatory language added to subsections 24 (c) and (d). 25 (1) No earlier than 5 business days after May 22, 2013 26 (the effective date of Public Act 98-15), each HB4661 - 50 - LRB103 37733 SPS 67860 b HB4661- 51 -LRB103 37733 SPS 67860 b HB4661 - 51 - LRB103 37733 SPS 67860 b HB4661 - 51 - LRB103 37733 SPS 67860 b 1 participating utility shall file any tariff changes 2 necessary to implement the amendatory language set forth 3 in subsections (c) and (d) of this Section by Public Act 4 98-15 and a revised revenue requirement under the 5 participating utility's performance-based formula rate. 6 The Commission shall enter a final order approving such 7 tariff changes and revised revenue requirement within 21 8 days after the participating utility's filing. 9 (2) Notwithstanding anything that may be to the 10 contrary, a participating utility may file a tariff to 11 retroactively recover its previously unrecovered actual 12 costs of delivery service that are no longer subject to 13 recovery through a reconciliation adjustment under 14 subsection (d) of this Section. This retroactive recovery 15 shall include any derivative adjustments resulting from 16 the changes to subsections (c) and (d) of this Section by 17 Public Act 98-15. Such tariff shall allow the utility to 18 assess, on current customer bills over a period of 12 19 monthly billing periods, a charge or credit related to 20 those unrecovered costs with interest at the utility's 21 weighted average cost of capital during the period in 22 which those costs were unrecovered. A participating 23 utility may file a tariff that implements a retroactive 24 charge or credit as described in this paragraph for 25 amounts not otherwise included in the tariff filing 26 provided for in paragraph (1) of this subsection (k). The HB4661 - 51 - LRB103 37733 SPS 67860 b HB4661- 52 -LRB103 37733 SPS 67860 b HB4661 - 52 - LRB103 37733 SPS 67860 b HB4661 - 52 - LRB103 37733 SPS 67860 b 1 Commission shall enter a final order approving such tariff 2 within 21 days after the participating utility's filing. 3 (3) The tariff changes described in paragraphs (1) and 4 (2) of this subsection (k) shall relate only to, and be 5 consistent with, the following provisions of Public Act 6 98-15: paragraph (2) of subsection (c) regarding year-end 7 capital structure, subparagraph (D) of paragraph (4) of 8 subsection (c) regarding pension assets, and subsection 9 (d) regarding the reconciliation components related to 10 year-end rate base and interest calculated at a rate equal 11 to the utility's weighted average cost of capital. 12 (4) Nothing in this subsection is intended to effect a 13 dismissal of or otherwise affect an appeal from any final 14 Commission orders entered in Docket Nos. 11-0721, 12-0001, 15 12-0293, and 12-0321 other than to the extent of the 16 amendatory language contained in subsections (c) and (d) 17 of this Section of Public Act 98-15. 18 (l) Each participating utility shall be deemed to have 19 been in full compliance with all requirements of subsection 20 (b) of this Section, subsection (c) of this Section, Section 21 16-108.6 of this Act, and all Commission orders entered 22 pursuant to Sections 16-108.5 and 16-108.6 of this Act, up to 23 and including May 22, 2013 (the effective date of Public Act 24 98-15). The Commission shall not undertake any investigation 25 of such compliance and no penalty shall be assessed or adverse 26 action taken against a participating utility for noncompliance HB4661 - 52 - LRB103 37733 SPS 67860 b HB4661- 53 -LRB103 37733 SPS 67860 b HB4661 - 53 - LRB103 37733 SPS 67860 b HB4661 - 53 - LRB103 37733 SPS 67860 b 1 with Commission orders associated with subsection (b) of this 2 Section, subsection (c) of this Section, and Section 16-108.6 3 of this Act prior to such date. Each participating utility 4 other than a combination utility shall be permitted, without 5 penalty, a period of 12 months after such effective date to 6 take actions required to ensure its infrastructure investment 7 program is in compliance with subsection (b) of this Section 8 and with Section 16-108.6 of this Act. Provided further, the 9 following subparagraphs shall apply to a participating utility 10 other than a combination utility: 11 (A) if the Commission has initiated a proceeding 12 pursuant to subsection (e) of Section 16-108.6 of this Act 13 that is pending as of May 22, 2013 (the effective date of 14 Public Act 98-15), then the order entered in such 15 proceeding shall, after notice and hearing, accelerate the 16 commencement of the meter deployment schedule approved in 17 the final Commission order on rehearing entered in Docket 18 No. 12-0298; 19 (B) if the Commission has entered an order pursuant to 20 subsection (e) of Section 16-108.6 of this Act prior to 21 May 22, 2013 (the effective date of Public Act 98-15) that 22 does not accelerate the commencement of the meter 23 deployment schedule approved in the final Commission order 24 on rehearing entered in Docket No. 12-0298, then the 25 utility shall file with the Commission, within 45 days 26 after such effective date, a plan for accelerating the HB4661 - 53 - LRB103 37733 SPS 67860 b HB4661- 54 -LRB103 37733 SPS 67860 b HB4661 - 54 - LRB103 37733 SPS 67860 b HB4661 - 54 - LRB103 37733 SPS 67860 b 1 commencement of the utility's meter deployment schedule 2 approved in the final Commission order on rehearing 3 entered in Docket No. 12-0298; the Commission shall reopen 4 the proceeding in which it entered its order pursuant to 5 subsection (e) of Section 16-108.6 of this Act and shall, 6 after notice and hearing, enter an amendatory order that 7 approves or approves as modified such accelerated plan 8 within 90 days after the utility's filing; or 9 (C) if the Commission has not initiated a proceeding 10 pursuant to subsection (e) of Section 16-108.6 of this Act 11 prior to May 22, 2013 (the effective date of Public Act 12 98-15), then the utility shall file with the Commission, 13 within 45 days after such effective date, a plan for 14 accelerating the commencement of the utility's meter 15 deployment schedule approved in the final Commission order 16 on rehearing entered in Docket No. 12-0298 and the 17 Commission shall, after notice and hearing, approve or 18 approve as modified such plan within 90 days after the 19 utility's filing. 20 Any schedule for meter deployment approved by the 21 Commission pursuant to this subsection (l) shall take into 22 consideration procurement times for meters and other equipment 23 and operational issues. Nothing in Public Act 98-15 shall 24 shorten or extend the end dates for the 5-year or 10-year 25 periods set forth in subsection (b) of this Section or Section 26 16-108.6 of this Act. Nothing in this subsection is intended HB4661 - 54 - LRB103 37733 SPS 67860 b HB4661- 55 -LRB103 37733 SPS 67860 b HB4661 - 55 - LRB103 37733 SPS 67860 b HB4661 - 55 - LRB103 37733 SPS 67860 b 1 to address whether a participating utility has, or has not, 2 satisfied any or all of the metrics and performance goals 3 established pursuant to subsection (f) of this Section. 4 (m) The provisions of Public Act 98-15 are severable under 5 Section 1.31 of the Statute on Statutes. 6 (Source: P.A. 102-1031, eff. 5-27-22; 103-154, eff. 6-30-23.) HB4661 - 55 - LRB103 37733 SPS 67860 b