IL
Illinois House Bill HB4661

Illinois 2023-2024 Regular Session

Illinois House Bill HB4661 Compare Versions

OldNewDifferences
1-Public Act 103-0679
21 HB4661 EnrolledLRB103 37733 SPS 67860 b HB4661 Enrolled LRB103 37733 SPS 67860 b
32 HB4661 Enrolled LRB103 37733 SPS 67860 b
4-AN ACT concerning regulation.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Section 5. The Public Utilities Act is amended by changing
8-Sections 9-241 and 16-108.5 as follows:
9-(220 ILCS 5/9-241) (from Ch. 111 2/3, par. 9-241)
10-Sec. 9-241. Nondiscrimination.
11-(a) No public utility shall, as to rates or other charges,
12-services, facilities or in other respect, make or grant any
13-preference or advantage to any corporation or person or
14-subject any corporation or person to any prejudice or
15-disadvantage. No public utility shall establish or maintain
16-any unreasonable difference as to rates or other charges,
17-services, facilities, or in any other respect, either as
18-between localities or as between classes of service.
19-(b) An electric utility in a county with a population of
20-3,000,000 or more shall not establish or maintain any
21-unreasonable difference as to rates or other charges,
22-services, contractual terms, or facilities for access to or
23-the use of its utility infrastructure by another person or for
24-any other purpose. Notwithstanding any other provision of law,
25-the Commission and its staff shall interpret this Section in
26-accordance with Article XVI of this Act.
3+1 AN ACT concerning regulation.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Section 5. The Public Utilities Act is amended by changing
7+5 Sections 9-241 and 16-108.5 as follows:
8+6 (220 ILCS 5/9-241) (from Ch. 111 2/3, par. 9-241)
9+7 Sec. 9-241. Nondiscrimination.
10+8 (a) No public utility shall, as to rates or other charges,
11+9 services, facilities or in other respect, make or grant any
12+10 preference or advantage to any corporation or person or
13+11 subject any corporation or person to any prejudice or
14+12 disadvantage. No public utility shall establish or maintain
15+13 any unreasonable difference as to rates or other charges,
16+14 services, facilities, or in any other respect, either as
17+15 between localities or as between classes of service.
18+16 b) An electric utility in a county with a population of
19+17 3,000,000 or more shall not establish or maintain any
20+18 unreasonable difference as to rates or other charges,
21+19 services, contractual terms, or facilities for access to or
22+20 the use of its utility infrastructure by another person or for
23+21 any other purpose. Notwithstanding any other provision of law,
24+22 the Commission and its staff shall interpret this Section in
25+23 accordance with Article XVI of this Act.
2726
2827
2928
3029 HB4661 Enrolled LRB103 37733 SPS 67860 b
3130
3231
33-(c) Nothing However, nothing in this Section shall be
34-construed as limiting the authority of the Commission to
35-permit the establishment of economic development rates as
36-incentives to economic development either in enterprise zones
37-as designated by the State of Illinois or in other areas of a
38-utility's service area. Such rates should be available to
39-existing businesses which demonstrate an increase to existing
40-load as well as new businesses which create new load for a
41-utility so as to create a more balanced utilization of
42-generating capacity. The Commission shall ensure that such
43-rates are established at a level which provides a net benefit
44-to customers within a public utility's service area.
45-(d) On or before January 1, 2023, the Commission shall
46-conduct a comprehensive study to assess whether low-income
47-discount rates for electric and natural gas residential
48-customers are appropriate and the potential design and
49-implementation of any such rates. The Commission shall include
50-its findings, together with the appropriate recommendations,
51-in a report to be provided to the General Assembly. Upon
52-completion of the study, the Commission shall have the
53-authority to permit or require electric and natural gas
54-utilities to file a tariff establishing low-income discount
55-rates.
56-Such study shall assess, at a minimum, the following:
57-(1) customer eligibility requirements, including
58-income-based eligibility and eligibility based on
32+HB4661 Enrolled- 2 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 2 - LRB103 37733 SPS 67860 b
33+ HB4661 Enrolled - 2 - LRB103 37733 SPS 67860 b
34+1 (c) Nothing However, nothing in this Section shall be
35+2 construed as limiting the authority of the Commission to
36+3 permit the establishment of economic development rates as
37+4 incentives to economic development either in enterprise zones
38+5 as designated by the State of Illinois or in other areas of a
39+6 utility's service area. Such rates should be available to
40+7 existing businesses which demonstrate an increase to existing
41+8 load as well as new businesses which create new load for a
42+9 utility so as to create a more balanced utilization of
43+10 generating capacity. The Commission shall ensure that such
44+11 rates are established at a level which provides a net benefit
45+12 to customers within a public utility's service area.
46+13 (d) On or before January 1, 2023, the Commission shall
47+14 conduct a comprehensive study to assess whether low-income
48+15 discount rates for electric and natural gas residential
49+16 customers are appropriate and the potential design and
50+17 implementation of any such rates. The Commission shall include
51+18 its findings, together with the appropriate recommendations,
52+19 in a report to be provided to the General Assembly. Upon
53+20 completion of the study, the Commission shall have the
54+21 authority to permit or require electric and natural gas
55+22 utilities to file a tariff establishing low-income discount
56+23 rates.
57+24 Such study shall assess, at a minimum, the following:
58+25 (1) customer eligibility requirements, including
59+26 income-based eligibility and eligibility based on
5960
6061
61-participation in or eligibility for certain public
62-assistance programs;
63-(2) appropriate rate structures, including
64-consideration of tiered discounts for different income
65-levels;
66-(3) appropriate recovery mechanisms, including the
67-consideration of volumetric charges and customer charges;
68-(4) appropriate verification mechanisms;
69-(5) measures to ensure customer confidentiality and
70-data safeguards;
71-(6) outreach and consumer education procedures; and
72-(7) the impact that a low-income discount rate would
73-have on the affordability of delivery service to
74-low-income customers and customers overall.
75-(e) The Commission shall adopt rules requiring utility
76-companies to produce information, in the form of a mailing,
77-and other approved methods of distribution, to its consumers,
78-to inform the consumers of available rebates, discounts,
79-credits, and other cost-saving mechanisms that can help them
80-lower their monthly utility bills, and send out such
81-information semi-annually, unless otherwise provided by this
82-Article.
83-(f) Prior to October 1, 1989, no public utility providing
84-electrical or gas service shall consider the use of solar or
85-other nonconventional renewable sources of energy by a
86-customer as a basis for establishing higher rates or charges
8762
8863
89-for any service or commodity sold to such customer; nor shall a
90-public utility subject any customer utilizing such energy
91-source or sources to any other prejudice or disadvantage on
92-account of such use. No public utility shall without the
93-consent of the Commission, charge or receive any greater
94-compensation in the aggregate for a lesser commodity, product,
95-or service than for a greater commodity, product or service of
96-like character.
97-The Commission, in order to expedite the determination of
98-rate questions, or to avoid unnecessary and unreasonable
99-expense, or to avoid unjust or unreasonable discrimination
100-between classes of customers, or, whenever in the judgment of
101-the Commission public interest so requires, may, for rate
102-making and accounting purposes, or either of them, consider
103-one or more municipalities either with or without the adjacent
104-or intervening rural territory as a regional unit where the
105-same public utility serves such region under substantially
106-similar conditions, and may within such region prescribe
107-uniform rates for consumers or patrons of the same class.
108-Any public utility, with the consent and approval of the
109-Commission, may as a basis for the determination of the
110-charges made by it classify its service according to the
111-amount used, the time when used, the purpose for which used,
112-and other relevant factors.
113-(Source: P.A. 102-662, eff. 9-15-21.)
64+
65+ HB4661 Enrolled - 2 - LRB103 37733 SPS 67860 b
11466
11567
116-(220 ILCS 5/16-108.5)
117-Sec. 16-108.5. Infrastructure investment and
118-modernization; regulatory reform.
119-(a) (Blank).
120-(b) For purposes of this Section, "participating utility"
121-means an electric utility or a combination utility serving
122-more than 1,000,000 customers in Illinois that voluntarily
123-elects and commits to undertake (i) the infrastructure
124-investment program consisting of the commitments and
125-obligations described in this subsection (b) and (ii) the
126-customer assistance program consisting of the commitments and
127-obligations described in subsection (b-10) of this Section,
128-notwithstanding any other provisions of this Act and without
129-obtaining any approvals from the Commission or any other
130-agency other than as set forth in this Section, regardless of
131-whether any such approval would otherwise be required.
132-"Combination utility" means a utility that, as of January 1,
133-2011, provided electric service to at least one million retail
134-customers in Illinois and gas service to at least 500,000
135-retail customers in Illinois. A participating utility shall
136-recover the expenditures made under the infrastructure
137-investment program through the ratemaking process, including,
138-but not limited to, the performance-based formula rate and
139-process set forth in this Section.
140-During the infrastructure investment program's peak
141-program year, a participating utility other than a combination
68+HB4661 Enrolled- 3 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 3 - LRB103 37733 SPS 67860 b
69+ HB4661 Enrolled - 3 - LRB103 37733 SPS 67860 b
70+1 participation in or eligibility for certain public
71+2 assistance programs;
72+3 (2) appropriate rate structures, including
73+4 consideration of tiered discounts for different income
74+5 levels;
75+6 (3) appropriate recovery mechanisms, including the
76+7 consideration of volumetric charges and customer charges;
77+8 (4) appropriate verification mechanisms;
78+9 (5) measures to ensure customer confidentiality and
79+10 data safeguards;
80+11 (6) outreach and consumer education procedures; and
81+12 (7) the impact that a low-income discount rate would
82+13 have on the affordability of delivery service to
83+14 low-income customers and customers overall.
84+15 (e) The Commission shall adopt rules requiring utility
85+16 companies to produce information, in the form of a mailing,
86+17 and other approved methods of distribution, to its consumers,
87+18 to inform the consumers of available rebates, discounts,
88+19 credits, and other cost-saving mechanisms that can help them
89+20 lower their monthly utility bills, and send out such
90+21 information semi-annually, unless otherwise provided by this
91+22 Article.
92+23 (f) Prior to October 1, 1989, no public utility providing
93+24 electrical or gas service shall consider the use of solar or
94+25 other nonconventional renewable sources of energy by a
95+26 customer as a basis for establishing higher rates or charges
14296
14397
144-utility shall create 2,000 full-time equivalent jobs in
145-Illinois, and a participating utility that is a combination
146-utility shall create 450 full-time equivalent jobs in Illinois
147-related to the provision of electric service. These jobs shall
148-include direct jobs, contractor positions, and induced jobs,
149-but shall not include any portion of a job commitment, not
150-specifically contingent on an amendatory Act of the 97th
151-General Assembly becoming law, between a participating utility
152-and a labor union that existed on December 30, 2011 (the
153-effective date of Public Act 97-646) and that has not yet been
154-fulfilled. A portion of the full-time equivalent jobs created
155-by each participating utility shall include incremental
156-personnel hired subsequent to December 30, 2011 (the effective
157-date of Public Act 97-646). For purposes of this Section,
158-"peak program year" means the consecutive 12-month period with
159-the highest number of full-time equivalent jobs that occurs
160-between the beginning of investment year 2 and the end of
161-investment year 4.
162-A participating utility shall meet one of the following
163-commitments, as applicable:
164-(1) Beginning no later than 180 days after a
165-participating utility other than a combination utility
166-files a performance-based formula rate tariff pursuant to
167-subsection (c) of this Section, or, beginning no later
168-than January 1, 2012 if such utility files such
169-performance-based formula rate tariff within 14 days of
17098
17199
172-October 26, 2011 (the effective date of Public Act
173-97-616), the participating utility shall, except as
174-provided in subsection (b-5):
175-(A) over a 5-year period, invest an estimated
176-$1,300,000,000 in electric system upgrades,
177-modernization projects, and training facilities,
178-including, but not limited to:
179-(i) distribution infrastructure improvements
180-totaling an estimated $1,000,000,000, including
181-underground residential distribution cable
182-injection and replacement and mainline cable
183-system refurbishment and replacement projects;
184-(ii) training facility construction or upgrade
185-projects totaling an estimated $10,000,000,
186-provided that, at a minimum, one such facility
187-shall be located in a municipality having a
188-population of more than 2 million residents and
189-one such facility shall be located in a
190-municipality having a population of more than
191-150,000 residents but fewer than 170,000
192-residents; any such new facility located in a
193-municipality having a population of more than 2
194-million residents must be designed for the purpose
195-of obtaining, and the owner of the facility shall
196-apply for, certification under the United States
197-Green Building Council's Leadership in Energy
100+
101+ HB4661 Enrolled - 3 - LRB103 37733 SPS 67860 b
198102
199103
200-Efficiency Design Green Building Rating System;
201-(iii) wood pole inspection, treatment, and
202-replacement programs;
203-(iv) an estimated $200,000,000 for reducing
204-the susceptibility of certain circuits to
205-storm-related damage, including, but not limited
206-to, high winds, thunderstorms, and ice storms;
207-improvements may include, but are not limited to,
208-overhead to underground conversion and other
209-engineered outcomes for circuits; the
210-participating utility shall prioritize the
211-selection of circuits based on each circuit's
212-historical susceptibility to storm-related damage
213-and the ability to provide the greatest customer
214-benefit upon completion of the improvements; to be
215-eligible for improvement, the participating
216-utility's ability to maintain proper tree
217-clearances surrounding the overhead circuit must
218-not have been impeded by third parties; and
219-(B) over a 10-year period, invest an estimated
220-$1,300,000,000 to upgrade and modernize its
221-transmission and distribution infrastructure and in
222-Smart Grid electric system upgrades, including, but
223-not limited to:
224-(i) additional smart meters;
225-(ii) distribution automation;
104+HB4661 Enrolled- 4 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 4 - LRB103 37733 SPS 67860 b
105+ HB4661 Enrolled - 4 - LRB103 37733 SPS 67860 b
106+1 for any service or commodity sold to such customer; nor shall a
107+2 public utility subject any customer utilizing such energy
108+3 source or sources to any other prejudice or disadvantage on
109+4 account of such use. No public utility shall without the
110+5 consent of the Commission, charge or receive any greater
111+6 compensation in the aggregate for a lesser commodity, product,
112+7 or service than for a greater commodity, product or service of
113+8 like character.
114+9 The Commission, in order to expedite the determination of
115+10 rate questions, or to avoid unnecessary and unreasonable
116+11 expense, or to avoid unjust or unreasonable discrimination
117+12 between classes of customers, or, whenever in the judgment of
118+13 the Commission public interest so requires, may, for rate
119+14 making and accounting purposes, or either of them, consider
120+15 one or more municipalities either with or without the adjacent
121+16 or intervening rural territory as a regional unit where the
122+17 same public utility serves such region under substantially
123+18 similar conditions, and may within such region prescribe
124+19 uniform rates for consumers or patrons of the same class.
125+20 Any public utility, with the consent and approval of the
126+21 Commission, may as a basis for the determination of the
127+22 charges made by it classify its service according to the
128+23 amount used, the time when used, the purpose for which used,
129+24 and other relevant factors.
130+25 (Source: P.A. 102-662, eff. 9-15-21.)
226131
227132
228-(iii) associated cyber secure data
229-communication network; and
230-(iv) substation micro-processor relay
231-upgrades.
232-(2) Beginning no later than 180 days after a
233-participating utility that is a combination utility files
234-a performance-based formula rate tariff pursuant to
235-subsection (c) of this Section, or, beginning no later
236-than January 1, 2012 if such utility files such
237-performance-based formula rate tariff within 14 days of
238-October 26, 2011 (the effective date of Public Act
239-97-616), the participating utility shall, except as
240-provided in subsection (b-5):
241-(A) over a 10-year period, invest an estimated
242-$265,000,000 in electric system upgrades,
243-modernization projects, and training facilities,
244-including, but not limited to:
245-(i) distribution infrastructure improvements
246-totaling an estimated $245,000,000, which may
247-include bulk supply substations, transformers,
248-reconductoring, and rebuilding overhead
249-distribution and sub-transmission lines,
250-underground residential distribution cable
251-injection and replacement and mainline cable
252-system refurbishment and replacement projects;
253-(ii) training facility construction or upgrade
254133
255134
256-projects totaling an estimated $1,000,000; any
257-such new facility must be designed for the purpose
258-of obtaining, and the owner of the facility shall
259-apply for, certification under the United States
260-Green Building Council's Leadership in Energy
261-Efficiency Design Green Building Rating System;
262-and
263-(iii) wood pole inspection, treatment, and
264-replacement programs; and
265-(B) over a 10-year period, invest an estimated
266-$360,000,000 to upgrade and modernize its transmission
267-and distribution infrastructure and in Smart Grid
268-electric system upgrades, including, but not limited
269-to:
270-(i) additional smart meters;
271-(ii) distribution automation;
272-(iii) associated cyber secure data
273-communication network; and
274-(iv) substation micro-processor relay
275-upgrades.
276-For purposes of this Section, "Smart Grid electric system
277-upgrades" shall have the meaning set forth in subsection (a)
278-of Section 16-108.6 of this Act.
279-The investments in the infrastructure investment program
280-described in this subsection (b) shall be incremental to the
281-participating utility's annual capital investment program, as
135+
136+ HB4661 Enrolled - 4 - LRB103 37733 SPS 67860 b
282137
283138
284-defined by, for purposes of this subsection (b), the
285-participating utility's average capital spend for calendar
286-years 2008, 2009, and 2010 as reported in the applicable
287-Federal Energy Regulatory Commission (FERC) Form 1; provided
288-that where one or more utilities have merged, the average
289-capital spend shall be determined using the aggregate of the
290-merged utilities' capital spend reported in FERC Form 1 for
291-the years 2008, 2009, and 2010. A participating utility may
292-add reasonable construction ramp-up and ramp-down time to the
293-investment periods specified in this subsection (b). For each
294-such investment period, the ramp-up and ramp-down time shall
295-not exceed a total of 6 months.
296-Within 60 days after filing a tariff under subsection (c)
297-of this Section, a participating utility shall submit to the
298-Commission its plan, including scope, schedule, and staffing,
299-for satisfying its infrastructure investment program
300-commitments pursuant to this subsection (b). The submitted
301-plan shall include a schedule and staffing plan for the next
302-calendar year. The plan shall also include a plan for the
303-creation, operation, and administration of a Smart Grid test
304-bed as described in subsection (c) of Section 16-108.8. The
305-plan need not allocate the work equally over the respective
306-periods, but should allocate material increments throughout
307-such periods commensurate with the work to be undertaken. No
308-later than April 1 of each subsequent year, the utility shall
309-submit to the Commission a report that includes any updates to
139+HB4661 Enrolled- 5 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 5 - LRB103 37733 SPS 67860 b
140+ HB4661 Enrolled - 5 - LRB103 37733 SPS 67860 b
141+1 (220 ILCS 5/16-108.5)
142+2 Sec. 16-108.5. Infrastructure investment and
143+3 modernization; regulatory reform.
144+4 (a) (Blank).
145+5 (b) For purposes of this Section, "participating utility"
146+6 means an electric utility or a combination utility serving
147+7 more than 1,000,000 customers in Illinois that voluntarily
148+8 elects and commits to undertake (i) the infrastructure
149+9 investment program consisting of the commitments and
150+10 obligations described in this subsection (b) and (ii) the
151+11 customer assistance program consisting of the commitments and
152+12 obligations described in subsection (b-10) of this Section,
153+13 notwithstanding any other provisions of this Act and without
154+14 obtaining any approvals from the Commission or any other
155+15 agency other than as set forth in this Section, regardless of
156+16 whether any such approval would otherwise be required.
157+17 "Combination utility" means a utility that, as of January 1,
158+18 2011, provided electric service to at least one million retail
159+19 customers in Illinois and gas service to at least 500,000
160+20 retail customers in Illinois. A participating utility shall
161+21 recover the expenditures made under the infrastructure
162+22 investment program through the ratemaking process, including,
163+23 but not limited to, the performance-based formula rate and
164+24 process set forth in this Section.
165+25 During the infrastructure investment program's peak
166+26 program year, a participating utility other than a combination
310167
311168
312-the plan, a schedule for the next calendar year, the
313-expenditures made for the prior calendar year and
314-cumulatively, and the number of full-time equivalent jobs
315-created for the prior calendar year and cumulatively. If the
316-utility is materially deficient in satisfying a schedule or
317-staffing plan, then the report must also include a corrective
318-action plan to address the deficiency. The fact that the plan,
319-implementation of the plan, or a schedule changes shall not
320-imply the imprudence or unreasonableness of the infrastructure
321-investment program, plan, or schedule. Further, no later than
322-45 days following the last day of the first, second, and third
323-quarters of each year of the plan, a participating utility
324-shall submit to the Commission a verified quarterly report for
325-the prior quarter that includes (i) the total number of
326-full-time equivalent jobs created during the prior quarter,
327-(ii) the total number of employees as of the last day of the
328-prior quarter, (iii) the total number of full-time equivalent
329-hours in each job classification or job title, (iv) the total
330-number of incremental employees and contractors in support of
331-the investments undertaken pursuant to this subsection (b) for
332-the prior quarter, and (v) any other information that the
333-Commission may require by rule.
334-With respect to the participating utility's peak job
335-commitment, if, after considering the utility's corrective
336-action plan and compliance thereunder, the Commission enters
337-an order finding, after notice and hearing, that a
338169
339170
340-participating utility did not satisfy its peak job commitment
341-described in this subsection (b) for reasons that are
342-reasonably within its control, then the Commission shall also
343-determine, after consideration of the evidence, including, but
344-not limited to, evidence submitted by the Department of
345-Commerce and Economic Opportunity and the utility, the
346-deficiency in the number of full-time equivalent jobs during
347-the peak program year due to such failure. The Commission
348-shall notify the Department of any proceeding that is
349-initiated pursuant to this paragraph. For each full-time
350-equivalent job deficiency during the peak program year that
351-the Commission finds as set forth in this paragraph, the
352-participating utility shall, within 30 days after the entry of
353-the Commission's order, pay $6,000 to a fund for training
354-grants administered under Section 605-800 of the Department of
355-Commerce and Economic Opportunity Law, which shall not be a
356-recoverable expense.
357-With respect to the participating utility's investment
358-amount commitments, if, after considering the utility's
359-corrective action plan and compliance thereunder, the
360-Commission enters an order finding, after notice and hearing,
361-that a participating utility is not satisfying its investment
362-amount commitments described in this subsection (b), then the
363-utility shall no longer be eligible to annually update the
364-performance-based formula rate tariff pursuant to subsection
365-(d) of this Section. In such event, the then current rates
171+
172+ HB4661 Enrolled - 5 - LRB103 37733 SPS 67860 b
366173
367174
368-shall remain in effect until such time as new rates are set
369-pursuant to Article IX of this Act, subject to retroactive
370-adjustment, with interest, to reconcile rates charged with
371-actual costs.
372-If the Commission finds that a participating utility is no
373-longer eligible to update the performance-based formula rate
374-tariff pursuant to subsection (d) of this Section, or the
375-performance-based formula rate is otherwise terminated, then
376-the participating utility's voluntary commitments and
377-obligations under this subsection (b) shall immediately
378-terminate, except for the utility's obligation to pay an
379-amount already owed to the fund for training grants pursuant
380-to a Commission order.
381-In meeting the obligations of this subsection (b), to the
382-extent feasible and consistent with State and federal law, the
383-investments under the infrastructure investment program should
384-provide employment opportunities for all segments of the
385-population and workforce, including minority-owned and
386-female-owned business enterprises, and shall not, consistent
387-with State and federal law, discriminate based on race or
388-socioeconomic status.
389-(b-5) Nothing in this Section shall prohibit the
390-Commission from investigating the prudence and reasonableness
391-of the expenditures made under the infrastructure investment
392-program during the annual review required by subsection (d) of
393-this Section and shall, as part of such investigation,
175+HB4661 Enrolled- 6 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 6 - LRB103 37733 SPS 67860 b
176+ HB4661 Enrolled - 6 - LRB103 37733 SPS 67860 b
177+1 utility shall create 2,000 full-time equivalent jobs in
178+2 Illinois, and a participating utility that is a combination
179+3 utility shall create 450 full-time equivalent jobs in Illinois
180+4 related to the provision of electric service. These jobs shall
181+5 include direct jobs, contractor positions, and induced jobs,
182+6 but shall not include any portion of a job commitment, not
183+7 specifically contingent on an amendatory Act of the 97th
184+8 General Assembly becoming law, between a participating utility
185+9 and a labor union that existed on December 30, 2011 (the
186+10 effective date of Public Act 97-646) and that has not yet been
187+11 fulfilled. A portion of the full-time equivalent jobs created
188+12 by each participating utility shall include incremental
189+13 personnel hired subsequent to December 30, 2011 (the effective
190+14 date of Public Act 97-646). For purposes of this Section,
191+15 "peak program year" means the consecutive 12-month period with
192+16 the highest number of full-time equivalent jobs that occurs
193+17 between the beginning of investment year 2 and the end of
194+18 investment year 4.
195+19 A participating utility shall meet one of the following
196+20 commitments, as applicable:
197+21 (1) Beginning no later than 180 days after a
198+22 participating utility other than a combination utility
199+23 files a performance-based formula rate tariff pursuant to
200+24 subsection (c) of this Section, or, beginning no later
201+25 than January 1, 2012 if such utility files such
202+26 performance-based formula rate tariff within 14 days of
394203
395204
396-determine whether the utility's actual costs under the program
397-are prudent and reasonable. The fact that a participating
398-utility invests more than the minimum amounts specified in
399-subsection (b) of this Section or its plan shall not imply
400-imprudence or unreasonableness.
401-If the participating utility finds that it is implementing
402-its plan for satisfying the infrastructure investment program
403-commitments described in subsection (b) of this Section at a
404-cost below the estimated amounts specified in subsection (b)
405-of this Section, then the utility may file a petition with the
406-Commission requesting that it be permitted to satisfy its
407-commitments by spending less than the estimated amounts
408-specified in subsection (b) of this Section. The Commission
409-shall, after notice and hearing, enter its order approving, or
410-approving as modified, or denying each such petition within
411-150 days after the filing of the petition.
412-In no event, absent General Assembly approval, shall the
413-capital investment costs incurred by a participating utility
414-other than a combination utility in satisfying its
415-infrastructure investment program commitments described in
416-subsection (b) of this Section exceed $3,000,000,000 or, for a
417-participating utility that is a combination utility,
418-$720,000,000. If the participating utility's updated cost
419-estimates for satisfying its infrastructure investment program
420-commitments described in subsection (b) of this Section exceed
421-the limitation imposed by this subsection (b-5), then it shall
422205
423206
424-submit a report to the Commission that identifies the
425-increased costs and explains the reason or reasons for the
426-increased costs no later than the year in which the utility
427-estimates it will exceed the limitation. The Commission shall
428-review the report and shall, within 90 days after the
429-participating utility files the report, report to the General
430-Assembly its findings regarding the participating utility's
431-report. If the General Assembly does not amend the limitation
432-imposed by this subsection (b-5), then the utility may modify
433-its plan so as not to exceed the limitation imposed by this
434-subsection (b-5) and may propose corresponding changes to the
435-metrics established pursuant to subparagraphs (5) through (8)
436-of subsection (f) of this Section, and the Commission may
437-modify the metrics and incremental savings goals established
438-pursuant to subsection (f) of this Section accordingly.
439-(b-10) All participating utilities shall make
440-contributions for an energy low-income and support program in
441-accordance with this subsection. Beginning no later than 180
442-days after a participating utility files a performance-based
443-formula rate tariff pursuant to subsection (c) of this
444-Section, or beginning no later than January 1, 2012 if such
445-utility files such performance-based formula rate tariff
446-within 14 days of December 30, 2011 (the effective date of
447-Public Act 97-646), and without obtaining any approvals from
448-the Commission or any other agency other than as set forth in
449-this Section, regardless of whether any such approval would
207+
208+ HB4661 Enrolled - 6 - LRB103 37733 SPS 67860 b
450209
451210
452-otherwise be required, a participating utility other than a
453-combination utility shall pay $10,000,000 per year for 5 years
454-and a participating utility that is a combination utility
455-shall pay $1,000,000 per year for 10 years to the energy
456-low-income and support program, which is intended to fund
457-customer assistance programs with the primary purpose being
458-avoidance of imminent disconnection. Such programs may
459-include:
460-(1) a residential hardship program that may partner
461-with community-based organizations, including senior
462-citizen organizations, and provides grants to low-income
463-residential customers, including low-income senior
464-citizens, who demonstrate a hardship;
465-(2) a program that provides grants and other bill
466-payment concessions to veterans with disabilities who
467-demonstrate a hardship and members of the armed services
468-or reserve forces of the United States or members of the
469-Illinois National Guard who are on active duty pursuant to
470-an executive order of the President of the United States,
471-an act of the Congress of the United States, or an order of
472-the Governor and who demonstrate a hardship;
473-(3) a budget assistance program that provides tools
474-and education to low-income senior citizens to assist them
475-with obtaining information regarding energy usage and
476-effective means of managing energy costs;
477-(4) a non-residential special hardship program that
211+HB4661 Enrolled- 7 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 7 - LRB103 37733 SPS 67860 b
212+ HB4661 Enrolled - 7 - LRB103 37733 SPS 67860 b
213+1 October 26, 2011 (the effective date of Public Act
214+2 97-616), the participating utility shall, except as
215+3 provided in subsection (b-5):
216+4 (A) over a 5-year period, invest an estimated
217+5 $1,300,000,000 in electric system upgrades,
218+6 modernization projects, and training facilities,
219+7 including, but not limited to:
220+8 (i) distribution infrastructure improvements
221+9 totaling an estimated $1,000,000,000, including
222+10 underground residential distribution cable
223+11 injection and replacement and mainline cable
224+12 system refurbishment and replacement projects;
225+13 (ii) training facility construction or upgrade
226+14 projects totaling an estimated $10,000,000,
227+15 provided that, at a minimum, one such facility
228+16 shall be located in a municipality having a
229+17 population of more than 2 million residents and
230+18 one such facility shall be located in a
231+19 municipality having a population of more than
232+20 150,000 residents but fewer than 170,000
233+21 residents; any such new facility located in a
234+22 municipality having a population of more than 2
235+23 million residents must be designed for the purpose
236+24 of obtaining, and the owner of the facility shall
237+25 apply for, certification under the United States
238+26 Green Building Council's Leadership in Energy
478239
479240
480-provides grants to non-residential customers such as small
481-businesses and non-profit organizations that demonstrate a
482-hardship, including those providing services to senior
483-citizen and low-income customers; and
484-(5) a performance-based assistance program that
485-provides grants to encourage residential customers to make
486-on-time payments by matching a portion of the customer's
487-payments or providing credits towards arrearages.
488-The payments made by a participating utility pursuant to
489-this subsection (b-10) shall not be a recoverable expense. A
490-participating utility may elect to fund either new or existing
491-customer assistance programs, including, but not limited to,
492-those that are administered by the utility.
493-Programs that use funds that are provided by a
494-participating utility to reduce utility bills may be
495-implemented through tariffs that are filed with and reviewed
496-by the Commission. If a utility elects to file tariffs with the
497-Commission to implement all or a portion of the programs,
498-those tariffs shall, regardless of the date actually filed, be
499-deemed accepted and approved, and shall become effective on
500-December 30, 2011 (the effective date of Public Act 97-646).
501-The participating utilities whose customers benefit from the
502-funds that are disbursed as contemplated in this Section shall
503-file annual reports documenting the disbursement of those
504-funds with the Commission. The Commission has the authority to
505-audit disbursement of the funds to ensure they were disbursed
506241
507242
508-consistently with this Section.
509-If the Commission finds that a participating utility is no
510-longer eligible to update the performance-based formula rate
511-tariff pursuant to subsection (d) of this Section, or the
512-performance-based formula rate is otherwise terminated, then
513-the participating utility's voluntary commitments and
514-obligations under this subsection (b-10) shall immediately
515-terminate.
516-(c) A participating utility may elect to recover its
517-delivery services costs through a performance-based formula
518-rate approved by the Commission, which shall specify the cost
519-components that form the basis of the rate charged to
520-customers with sufficient specificity to operate in a
521-standardized manner and be updated annually with transparent
522-information that reflects the utility's actual costs to be
523-recovered during the applicable rate year, which is the period
524-beginning with the first billing day of January and extending
525-through the last billing day of the following December. In the
526-event the utility recovers a portion of its costs through
527-automatic adjustment clause tariffs on October 26, 2011 (the
528-effective date of Public Act 97-616), the utility may elect to
529-continue to recover these costs through such tariffs, but then
530-these costs shall not be recovered through the
531-performance-based formula rate. In the event the participating
532-utility, prior to December 30, 2011 (the effective date of
533-Public Act 97-646), filed electric delivery services tariffs
243+
244+ HB4661 Enrolled - 7 - LRB103 37733 SPS 67860 b
534245
535246
536-with the Commission pursuant to Section 9-201 of this Act that
537-are related to the recovery of its electric delivery services
538-costs that are still pending on December 30, 2011 (the
539-effective date of Public Act 97-646), the participating
540-utility shall, at the time it files its performance-based
541-formula rate tariff with the Commission, also file a notice of
542-withdrawal with the Commission to withdraw the electric
543-delivery services tariffs previously filed pursuant to Section
544-9-201 of this Act. Upon receipt of such notice, the Commission
545-shall dismiss with prejudice any docket that had been
546-initiated to investigate the electric delivery services
547-tariffs filed pursuant to Section 9-201 of this Act, and such
548-tariffs and the record related thereto shall not be the
549-subject of any further hearing, investigation, or proceeding
550-of any kind related to rates for electric delivery services.
551-The performance-based formula rate shall be implemented
552-through a tariff filed with the Commission consistent with the
553-provisions of this subsection (c) that shall be applicable to
554-all delivery services customers. The Commission shall initiate
555-and conduct an investigation of the tariff in a manner
556-consistent with the provisions of this subsection (c) and the
557-provisions of Article IX of this Act to the extent they do not
558-conflict with this subsection (c). Except in the case where
559-the Commission finds, after notice and hearing, that a
560-participating utility is not satisfying its investment amount
561-commitments under subsection (b) of this Section, the
247+HB4661 Enrolled- 8 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 8 - LRB103 37733 SPS 67860 b
248+ HB4661 Enrolled - 8 - LRB103 37733 SPS 67860 b
249+1 Efficiency Design Green Building Rating System;
250+2 (iii) wood pole inspection, treatment, and
251+3 replacement programs;
252+4 (iv) an estimated $200,000,000 for reducing
253+5 the susceptibility of certain circuits to
254+6 storm-related damage, including, but not limited
255+7 to, high winds, thunderstorms, and ice storms;
256+8 improvements may include, but are not limited to,
257+9 overhead to underground conversion and other
258+10 engineered outcomes for circuits; the
259+11 participating utility shall prioritize the
260+12 selection of circuits based on each circuit's
261+13 historical susceptibility to storm-related damage
262+14 and the ability to provide the greatest customer
263+15 benefit upon completion of the improvements; to be
264+16 eligible for improvement, the participating
265+17 utility's ability to maintain proper tree
266+18 clearances surrounding the overhead circuit must
267+19 not have been impeded by third parties; and
268+20 (B) over a 10-year period, invest an estimated
269+21 $1,300,000,000 to upgrade and modernize its
270+22 transmission and distribution infrastructure and in
271+23 Smart Grid electric system upgrades, including, but
272+24 not limited to:
273+25 (i) additional smart meters;
274+26 (ii) distribution automation;
562275
563276
564-performance-based formula rate shall remain in effect at the
565-discretion of the utility. The performance-based formula rate
566-approved by the Commission shall do the following:
567-(1) Provide for the recovery of the utility's actual
568-costs of delivery services that are prudently incurred and
569-reasonable in amount consistent with Commission practice
570-and law. The sole fact that a cost differs from that
571-incurred in a prior calendar year or that an investment is
572-different from that made in a prior calendar year shall
573-not imply the imprudence or unreasonableness of that cost
574-or investment.
575-(2) Reflect the utility's actual year-end capital
576-structure for the applicable calendar year, excluding
577-goodwill, subject to a determination of prudence and
578-reasonableness consistent with Commission practice and
579-law. To enable the financing of the incremental capital
580-expenditures, including regulatory assets, for electric
581-utilities that serve less than 3,000,000 retail customers
582-but more than 500,000 retail customers in the State, a
583-participating electric utility's actual year-end capital
584-structure that includes a common equity ratio, excluding
585-goodwill, of up to and including 50% of the total capital
586-structure shall be deemed reasonable and used to set
587-rates.
588-(3) Include a cost of equity, which shall be
589-calculated as the sum of the following:
590277
591278
592-(A) the average for the applicable calendar year
593-of the monthly average yields of 30-year U.S. Treasury
594-bonds published by the Board of Governors of the
595-Federal Reserve System in its weekly H.15 Statistical
596-Release or successor publication; and
597-(B) 580 basis points.
598-At such time as the Board of Governors of the Federal
599-Reserve System ceases to include the monthly average
600-yields of 30-year U.S. Treasury bonds in its weekly H.15
601-Statistical Release or successor publication, the monthly
602-average yields of the U.S. Treasury bonds then having the
603-longest duration published by the Board of Governors in
604-its weekly H.15 Statistical Release or successor
605-publication shall instead be used for purposes of this
606-paragraph (3).
607-(4) Permit and set forth protocols, subject to a
608-determination of prudence and reasonableness consistent
609-with Commission practice and law, for the following:
610-(A) recovery of incentive compensation expense
611-that is based on the achievement of operational
612-metrics, including metrics related to budget controls,
613-outage duration and frequency, safety, customer
614-service, efficiency and productivity, and
615-environmental compliance. Incentive compensation
616-expense that is based on net income or an affiliate's
617-earnings per share shall not be recoverable under the
279+
280+ HB4661 Enrolled - 8 - LRB103 37733 SPS 67860 b
618281
619282
620-performance-based formula rate;
621-(B) recovery of pension and other post-employment
622-benefits expense, provided that such costs are
623-supported by an actuarial study;
624-(C) recovery of severance costs, provided that if
625-the amount is over $3,700,000 for a participating
626-utility that is a combination utility or $10,000,000
627-for a participating utility that serves more than 3
628-million retail customers, then the full amount shall
629-be amortized consistent with subparagraph (F) of this
630-paragraph (4);
631-(D) investment return at a rate equal to the
632-utility's weighted average cost of long-term debt, on
633-the pension assets as, and in the amount, reported in
634-Account 186 (or in such other Account or Accounts as
635-such asset may subsequently be recorded) of the
636-utility's most recently filed FERC Form 1, net of
637-deferred tax benefits;
638-(E) recovery of the expenses related to the
639-Commission proceeding under this subsection (c) to
640-approve this performance-based formula rate and
641-initial rates or to subsequent proceedings related to
642-the formula, provided that the recovery shall be
643-amortized over a 3-year period; recovery of expenses
644-related to the annual Commission proceedings under
645-subsection (d) of this Section to review the inputs to
283+HB4661 Enrolled- 9 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 9 - LRB103 37733 SPS 67860 b
284+ HB4661 Enrolled - 9 - LRB103 37733 SPS 67860 b
285+1 (iii) associated cyber secure data
286+2 communication network; and
287+3 (iv) substation micro-processor relay
288+4 upgrades.
289+5 (2) Beginning no later than 180 days after a
290+6 participating utility that is a combination utility files
291+7 a performance-based formula rate tariff pursuant to
292+8 subsection (c) of this Section, or, beginning no later
293+9 than January 1, 2012 if such utility files such
294+10 performance-based formula rate tariff within 14 days of
295+11 October 26, 2011 (the effective date of Public Act
296+12 97-616), the participating utility shall, except as
297+13 provided in subsection (b-5):
298+14 (A) over a 10-year period, invest an estimated
299+15 $265,000,000 in electric system upgrades,
300+16 modernization projects, and training facilities,
301+17 including, but not limited to:
302+18 (i) distribution infrastructure improvements
303+19 totaling an estimated $245,000,000, which may
304+20 include bulk supply substations, transformers,
305+21 reconductoring, and rebuilding overhead
306+22 distribution and sub-transmission lines,
307+23 underground residential distribution cable
308+24 injection and replacement and mainline cable
309+25 system refurbishment and replacement projects;
310+26 (ii) training facility construction or upgrade
646311
647312
648-the performance-based formula rate shall be expensed
649-and recovered through the performance-based formula
650-rate;
651-(F) amortization over a 5-year period of the full
652-amount of each charge or credit that exceeds
653-$3,700,000 for a participating utility that is a
654-combination utility or $10,000,000 for a participating
655-utility that serves more than 3 million retail
656-customers in the applicable calendar year and that
657-relates to a workforce reduction program's severance
658-costs, changes in accounting rules, changes in law,
659-compliance with any Commission-initiated audit, or a
660-single storm or other similar expense, provided that
661-any unamortized balance shall be reflected in the rate
662-base. For purposes of this subparagraph (F), changes
663-in law includes any enactment, repeal, or amendment in
664-a law, ordinance, rule, regulation, interpretation,
665-permit, license, consent, or order, including those
666-relating to taxes, accounting, or to environmental
667-matters, or in the interpretation or application
668-thereof by any governmental authority occurring after
669-October 26, 2011 (the effective date of Public Act
670-97-616);
671-(G) recovery of existing regulatory assets over
672-the periods previously authorized by the Commission;
673-(H) historical weather normalized billing
674313
675314
676-determinants; and
677-(I) allocation methods for common costs.
678-(5) Provide that if the participating utility's earned
679-rate of return on common equity related to the provision
680-of delivery services for the prior rate year (calculated
681-using costs and capital structure approved by the
682-Commission as provided in subparagraph (2) of this
683-subsection (c), consistent with this Section, in
684-accordance with Commission rules and orders, including,
685-but not limited to, adjustments for goodwill, and after
686-any Commission-ordered disallowances and taxes) is more
687-than 50 basis points higher than the rate of return on
688-common equity calculated pursuant to paragraph (3) of this
689-subsection (c) (after adjusting for any penalties to the
690-rate of return on common equity applied pursuant to the
691-performance metrics provision of subsection (f) of this
692-Section), then the participating utility shall apply a
693-credit through the performance-based formula rate that
694-reflects an amount equal to the value of that portion of
695-the earned rate of return on common equity that is more
696-than 50 basis points higher than the rate of return on
697-common equity calculated pursuant to paragraph (3) of this
698-subsection (c) (after adjusting for any penalties to the
699-rate of return on common equity applied pursuant to the
700-performance metrics provision of subsection (f) of this
701-Section) for the prior rate year, adjusted for taxes. If
315+
316+ HB4661 Enrolled - 9 - LRB103 37733 SPS 67860 b
702317
703318
704-the participating utility's earned rate of return on
705-common equity related to the provision of delivery
706-services for the prior rate year (calculated using costs
707-and capital structure approved by the Commission as
708-provided in subparagraph (2) of this subsection (c),
709-consistent with this Section, in accordance with
710-Commission rules and orders, including, but not limited
711-to, adjustments for goodwill, and after any
712-Commission-ordered disallowances and taxes) is more than
713-50 basis points less than the return on common equity
714-calculated pursuant to paragraph (3) of this subsection
715-(c) (after adjusting for any penalties to the rate of
716-return on common equity applied pursuant to the
717-performance metrics provision of subsection (f) of this
718-Section), then the participating utility shall apply a
719-charge through the performance-based formula rate that
720-reflects an amount equal to the value of that portion of
721-the earned rate of return on common equity that is more
722-than 50 basis points less than the rate of return on common
723-equity calculated pursuant to paragraph (3) of this
724-subsection (c) (after adjusting for any penalties to the
725-rate of return on common equity applied pursuant to the
726-performance metrics provision of subsection (f) of this
727-Section) for the prior rate year, adjusted for taxes.
728-(6) Provide for an annual reconciliation, as described
729-in subsection (d) of this Section, with interest, of the
319+HB4661 Enrolled- 10 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 10 - LRB103 37733 SPS 67860 b
320+ HB4661 Enrolled - 10 - LRB103 37733 SPS 67860 b
321+1 projects totaling an estimated $1,000,000; any
322+2 such new facility must be designed for the purpose
323+3 of obtaining, and the owner of the facility shall
324+4 apply for, certification under the United States
325+5 Green Building Council's Leadership in Energy
326+6 Efficiency Design Green Building Rating System;
327+7 and
328+8 (iii) wood pole inspection, treatment, and
329+9 replacement programs; and
330+10 (B) over a 10-year period, invest an estimated
331+11 $360,000,000 to upgrade and modernize its transmission
332+12 and distribution infrastructure and in Smart Grid
333+13 electric system upgrades, including, but not limited
334+14 to:
335+15 (i) additional smart meters;
336+16 (ii) distribution automation;
337+17 (iii) associated cyber secure data
338+18 communication network; and
339+19 (iv) substation micro-processor relay
340+20 upgrades.
341+21 For purposes of this Section, "Smart Grid electric system
342+22 upgrades" shall have the meaning set forth in subsection (a)
343+23 of Section 16-108.6 of this Act.
344+24 The investments in the infrastructure investment program
345+25 described in this subsection (b) shall be incremental to the
346+26 participating utility's annual capital investment program, as
730347
731348
732-revenue requirement reflected in rates for each calendar
733-year, beginning with the calendar year in which the
734-utility files its performance-based formula rate tariff
735-pursuant to subsection (c) of this Section, with what the
736-revenue requirement would have been had the actual cost
737-information for the applicable calendar year been
738-available at the filing date.
739-The utility shall file, together with its tariff, final
740-data based on its most recently filed FERC Form 1, plus
741-projected plant additions and correspondingly updated
742-depreciation reserve and expense for the calendar year in
743-which the tariff and data are filed, that shall populate the
744-performance-based formula rate and set the initial delivery
745-services rates under the formula. For purposes of this
746-Section, "FERC Form 1" means the Annual Report of Major
747-Electric Utilities, Licensees and Others that electric
748-utilities are required to file with the Federal Energy
749-Regulatory Commission under the Federal Power Act, Sections 3,
750-4(a), 304 and 209, modified as necessary to be consistent with
751-83 Ill. Adm. Code Part 415 as of May 1, 2011. Nothing in this
752-Section is intended to allow costs that are not otherwise
753-recoverable to be recoverable by virtue of inclusion in FERC
754-Form 1.
755-After the utility files its proposed performance-based
756-formula rate structure and protocols and initial rates, the
757-Commission shall initiate a docket to review the filing. The
758349
759350
760-Commission shall enter an order approving, or approving as
761-modified, the performance-based formula rate, including the
762-initial rates, as just and reasonable within 270 days after
763-the date on which the tariff was filed, or, if the tariff is
764-filed within 14 days after October 26, 2011 (the effective
765-date of Public Act 97-616), then by May 31, 2012. Such review
766-shall be based on the same evidentiary standards, including,
767-but not limited to, those concerning the prudence and
768-reasonableness of the costs incurred by the utility, the
769-Commission applies in a hearing to review a filing for a
770-general increase in rates under Article IX of this Act. The
771-initial rates shall take effect within 30 days after the
772-Commission's order approving the performance-based formula
773-rate tariff.
774-Until such time as the Commission approves a different
775-rate design and cost allocation pursuant to subsection (e) of
776-this Section, rate design and cost allocation across customer
777-classes shall be consistent with the Commission's most recent
778-order regarding the participating utility's request for a
779-general increase in its delivery services rates.
780-Subsequent changes to the performance-based formula rate
781-structure or protocols shall be made as set forth in Section
782-9-201 of this Act, but nothing in this subsection (c) is
783-intended to limit the Commission's authority under Article IX
784-and other provisions of this Act to initiate an investigation
785-of a participating utility's performance-based formula rate
351+
352+ HB4661 Enrolled - 10 - LRB103 37733 SPS 67860 b
786353
787354
788-tariff, provided that any such changes shall be consistent
789-with paragraphs (1) through (6) of this subsection (c). Any
790-change ordered by the Commission shall be made at the same time
791-new rates take effect following the Commission's next order
792-pursuant to subsection (d) of this Section, provided that the
793-new rates take effect no less than 30 days after the date on
794-which the Commission issues an order adopting the change.
795-A participating utility that files a tariff pursuant to
796-this subsection (c) must submit a one-time $200,000 filing fee
797-at the time the Chief Clerk of the Commission accepts the
798-filing, which shall be a recoverable expense.
799-In the event the performance-based formula rate is
800-terminated, the then current rates shall remain in effect
801-until such time as new rates are set pursuant to Article IX of
802-this Act, subject to retroactive rate adjustment, with
803-interest, to reconcile rates charged with actual costs. At
804-such time that the performance-based formula rate is
805-terminated, the participating utility's voluntary commitments
806-and obligations under subsection (b) of this Section shall
807-immediately terminate, except for the utility's obligation to
808-pay an amount already owed to the fund for training grants
809-pursuant to a Commission order issued under subsection (b) of
810-this Section.
811-(d) Subsequent to the Commission's issuance of an order
812-approving the utility's performance-based formula rate
813-structure and protocols, and initial rates under subsection
355+HB4661 Enrolled- 11 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 11 - LRB103 37733 SPS 67860 b
356+ HB4661 Enrolled - 11 - LRB103 37733 SPS 67860 b
357+1 defined by, for purposes of this subsection (b), the
358+2 participating utility's average capital spend for calendar
359+3 years 2008, 2009, and 2010 as reported in the applicable
360+4 Federal Energy Regulatory Commission (FERC) Form 1; provided
361+5 that where one or more utilities have merged, the average
362+6 capital spend shall be determined using the aggregate of the
363+7 merged utilities' capital spend reported in FERC Form 1 for
364+8 the years 2008, 2009, and 2010. A participating utility may
365+9 add reasonable construction ramp-up and ramp-down time to the
366+10 investment periods specified in this subsection (b). For each
367+11 such investment period, the ramp-up and ramp-down time shall
368+12 not exceed a total of 6 months.
369+13 Within 60 days after filing a tariff under subsection (c)
370+14 of this Section, a participating utility shall submit to the
371+15 Commission its plan, including scope, schedule, and staffing,
372+16 for satisfying its infrastructure investment program
373+17 commitments pursuant to this subsection (b). The submitted
374+18 plan shall include a schedule and staffing plan for the next
375+19 calendar year. The plan shall also include a plan for the
376+20 creation, operation, and administration of a Smart Grid test
377+21 bed as described in subsection (c) of Section 16-108.8. The
378+22 plan need not allocate the work equally over the respective
379+23 periods, but should allocate material increments throughout
380+24 such periods commensurate with the work to be undertaken. No
381+25 later than April 1 of each subsequent year, the utility shall
382+26 submit to the Commission a report that includes any updates to
814383
815384
816-(c) of this Section, the utility shall file, on or before May 1
817-of each year, with the Chief Clerk of the Commission its
818-updated cost inputs to the performance-based formula rate for
819-the applicable rate year and the corresponding new charges.
820-Each such filing shall conform to the following requirements
821-and include the following information:
822-(1) The inputs to the performance-based formula rate
823-for the applicable rate year shall be based on final
824-historical data reflected in the utility's most recently
825-filed annual FERC Form 1 plus projected plant additions
826-and correspondingly updated depreciation reserve and
827-expense for the calendar year in which the inputs are
828-filed. The filing shall also include a reconciliation of
829-the revenue requirement that was in effect for the prior
830-rate year (as set by the cost inputs for the prior rate
831-year) with the actual revenue requirement for the prior
832-rate year (determined using a year-end rate base) that
833-uses amounts reflected in the applicable FERC Form 1 that
834-reports the actual costs for the prior rate year. Any
835-over-collection or under-collection indicated by such
836-reconciliation shall be reflected as a credit against, or
837-recovered as an additional charge to, respectively, with
838-interest calculated at a rate equal to the utility's
839-weighted average cost of capital approved by the
840-Commission for the prior rate year, the charges for the
841-applicable rate year. Provided, however, that the first
842385
843386
844-such reconciliation shall be for the calendar year in
845-which the utility files its performance-based formula rate
846-tariff pursuant to subsection (c) of this Section and
847-shall reconcile (i) the revenue requirement or
848-requirements established by the rate order or orders in
849-effect from time to time during such calendar year
850-(weighted, as applicable) with (ii) the revenue
851-requirement determined using a year-end rate base for that
852-calendar year calculated pursuant to the performance-based
853-formula rate using (A) actual costs for that year as
854-reflected in the applicable FERC Form 1, and (B) for the
855-first such reconciliation only, the cost of equity, which
856-shall be calculated as the sum of 590 basis points plus the
857-average for the applicable calendar year of the monthly
858-average yields of 30-year U.S. Treasury bonds published by
859-the Board of Governors of the Federal Reserve System in
860-its weekly H.15 Statistical Release or successor
861-publication. The first such reconciliation is not intended
862-to provide for the recovery of costs previously excluded
863-from rates based on a prior Commission order finding of
864-imprudence or unreasonableness. Each reconciliation shall
865-be certified by the participating utility in the same
866-manner that FERC Form 1 is certified. The filing shall
867-also include the charge or credit, if any, resulting from
868-the calculation required by paragraph (6) of subsection
869-(c) of this Section.
387+
388+ HB4661 Enrolled - 11 - LRB103 37733 SPS 67860 b
870389
871390
872-Notwithstanding anything that may be to the contrary,
873-the intent of the reconciliation is to ultimately
874-reconcile the revenue requirement reflected in rates for
875-each calendar year, beginning with the calendar year in
876-which the utility files its performance-based formula rate
877-tariff pursuant to subsection (c) of this Section, with
878-what the revenue requirement determined using a year-end
879-rate base for the applicable calendar year would have been
880-had the actual cost information for the applicable
881-calendar year been available at the filing date.
882-(2) The new charges shall take effect beginning on the
883-first billing day of the following January billing period
884-and remain in effect through the last billing day of the
885-next December billing period regardless of whether the
886-Commission enters upon a hearing pursuant to this
887-subsection (d).
888-(3) The filing shall include relevant and necessary
889-data and documentation for the applicable rate year that
890-is consistent with the Commission's rules applicable to a
891-filing for a general increase in rates or any rules
892-adopted by the Commission to implement this Section.
893-Normalization adjustments shall not be required.
894-Notwithstanding any other provision of this Section or Act
895-or any rule or other requirement adopted by the
896-Commission, a participating utility that is a combination
897-utility with more than one rate zone shall not be required
391+HB4661 Enrolled- 12 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 12 - LRB103 37733 SPS 67860 b
392+ HB4661 Enrolled - 12 - LRB103 37733 SPS 67860 b
393+1 the plan, a schedule for the next calendar year, the
394+2 expenditures made for the prior calendar year and
395+3 cumulatively, and the number of full-time equivalent jobs
396+4 created for the prior calendar year and cumulatively. If the
397+5 utility is materially deficient in satisfying a schedule or
398+6 staffing plan, then the report must also include a corrective
399+7 action plan to address the deficiency. The fact that the plan,
400+8 implementation of the plan, or a schedule changes shall not
401+9 imply the imprudence or unreasonableness of the infrastructure
402+10 investment program, plan, or schedule. Further, no later than
403+11 45 days following the last day of the first, second, and third
404+12 quarters of each year of the plan, a participating utility
405+13 shall submit to the Commission a verified quarterly report for
406+14 the prior quarter that includes (i) the total number of
407+15 full-time equivalent jobs created during the prior quarter,
408+16 (ii) the total number of employees as of the last day of the
409+17 prior quarter, (iii) the total number of full-time equivalent
410+18 hours in each job classification or job title, (iv) the total
411+19 number of incremental employees and contractors in support of
412+20 the investments undertaken pursuant to this subsection (b) for
413+21 the prior quarter, and (v) any other information that the
414+22 Commission may require by rule.
415+23 With respect to the participating utility's peak job
416+24 commitment, if, after considering the utility's corrective
417+25 action plan and compliance thereunder, the Commission enters
418+26 an order finding, after notice and hearing, that a
898419
899420
900-to file a separate set of such data and documentation for
901-each rate zone and may combine such data and documentation
902-into a single set of schedules.
903-Within 45 days after the utility files its annual update
904-of cost inputs to the performance-based formula rate, the
905-Commission shall have the authority, either upon complaint or
906-its own initiative, but with reasonable notice, to enter upon
907-a hearing concerning the prudence and reasonableness of the
908-costs incurred by the utility to be recovered during the
909-applicable rate year that are reflected in the inputs to the
910-performance-based formula rate derived from the utility's FERC
911-Form 1. During the course of the hearing, each objection shall
912-be stated with particularity and evidence provided in support
913-thereof, after which the utility shall have the opportunity to
914-rebut the evidence. Discovery shall be allowed consistent with
915-the Commission's Rules of Practice, which Rules shall be
916-enforced by the Commission or the assigned administrative law
917-judge. The Commission shall apply the same evidentiary
918-standards, including, but not limited to, those concerning the
919-prudence and reasonableness of the costs incurred by the
920-utility, in the hearing as it would apply in a hearing to
921-review a filing for a general increase in rates under Article
922-IX of this Act. The Commission shall not, however, have the
923-authority in a proceeding under this subsection (d) to
924-consider or order any changes to the structure or protocols of
925-the performance-based formula rate approved pursuant to
926421
927422
928-subsection (c) of this Section. In a proceeding under this
929-subsection (d), the Commission shall enter its order no later
930-than the earlier of 240 days after the utility's filing of its
931-annual update of cost inputs to the performance-based formula
932-rate or December 31. The Commission's determinations of the
933-prudence and reasonableness of the costs incurred for the
934-applicable calendar year shall be final upon entry of the
935-Commission's order and shall not be subject to reopening,
936-reexamination, or collateral attack in any other Commission
937-proceeding, case, docket, order, rule or regulation, provided,
938-however, that nothing in this subsection (d) shall prohibit a
939-party from petitioning the Commission to rehear or appeal to
940-the courts the order pursuant to the provisions of this Act.
941-In the event the Commission does not, either upon
942-complaint or its own initiative, enter upon a hearing within
943-45 days after the utility files the annual update of cost
944-inputs to its performance-based formula rate, then the costs
945-incurred for the applicable calendar year shall be deemed
946-prudent and reasonable, and the filed charges shall not be
947-subject to reopening, reexamination, or collateral attack in
948-any other proceeding, case, docket, order, rule, or
949-regulation.
950-A participating utility's first filing of the updated cost
951-inputs, and any Commission investigation of such inputs
952-pursuant to this subsection (d) shall proceed notwithstanding
953-the fact that the Commission's investigation under subsection
423+
424+ HB4661 Enrolled - 12 - LRB103 37733 SPS 67860 b
954425
955426
956-(c) of this Section is still pending and notwithstanding any
957-other law, order, rule, or Commission practice to the
958-contrary.
959-(e) Nothing in subsections (c) or (d) of this Section
960-shall prohibit the Commission from investigating, or a
961-participating utility from filing, revenue-neutral tariff
962-changes related to rate design of a performance-based formula
963-rate that has been placed into effect for the utility.
964-Following approval of a participating utility's
965-performance-based formula rate tariff pursuant to subsection
966-(c) of this Section, the utility shall make a filing with the
967-Commission within one year after the effective date of the
968-performance-based formula rate tariff that proposes changes to
969-the tariff to incorporate the findings of any final rate
970-design orders of the Commission applicable to the
971-participating utility and entered subsequent to the
972-Commission's approval of the tariff. The Commission shall,
973-after notice and hearing, enter its order approving, or
974-approving with modification, the proposed changes to the
975-performance-based formula rate tariff within 240 days after
976-the utility's filing. Following such approval, the utility
977-shall make a filing with the Commission during each subsequent
978-3-year period that either proposes revenue-neutral tariff
979-changes or re-files the existing tariffs without change, which
980-shall present the Commission with an opportunity to suspend
981-the tariffs and consider revenue-neutral tariff changes
427+HB4661 Enrolled- 13 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 13 - LRB103 37733 SPS 67860 b
428+ HB4661 Enrolled - 13 - LRB103 37733 SPS 67860 b
429+1 participating utility did not satisfy its peak job commitment
430+2 described in this subsection (b) for reasons that are
431+3 reasonably within its control, then the Commission shall also
432+4 determine, after consideration of the evidence, including, but
433+5 not limited to, evidence submitted by the Department of
434+6 Commerce and Economic Opportunity and the utility, the
435+7 deficiency in the number of full-time equivalent jobs during
436+8 the peak program year due to such failure. The Commission
437+9 shall notify the Department of any proceeding that is
438+10 initiated pursuant to this paragraph. For each full-time
439+11 equivalent job deficiency during the peak program year that
440+12 the Commission finds as set forth in this paragraph, the
441+13 participating utility shall, within 30 days after the entry of
442+14 the Commission's order, pay $6,000 to a fund for training
443+15 grants administered under Section 605-800 of the Department of
444+16 Commerce and Economic Opportunity Law, which shall not be a
445+17 recoverable expense.
446+18 With respect to the participating utility's investment
447+19 amount commitments, if, after considering the utility's
448+20 corrective action plan and compliance thereunder, the
449+21 Commission enters an order finding, after notice and hearing,
450+22 that a participating utility is not satisfying its investment
451+23 amount commitments described in this subsection (b), then the
452+24 utility shall no longer be eligible to annually update the
453+25 performance-based formula rate tariff pursuant to subsection
454+26 (d) of this Section. In such event, the then current rates
982455
983456
984-related to rate design.
985-(f) Within 30 days after the filing of a tariff pursuant to
986-subsection (c) of this Section, each participating utility
987-shall develop and file with the Commission multi-year metrics
988-designed to achieve, ratably (i.e., in equal segments) over a
989-10-year period, improvement over baseline performance values
990-as follows:
991-(1) Twenty percent improvement in the System Average
992-Interruption Frequency Index, using a baseline of the
993-average of the data from 2001 through 2010.
994-(2) Fifteen percent improvement in the system Customer
995-Average Interruption Duration Index, using a baseline of
996-the average of the data from 2001 through 2010.
997-(3) For a participating utility other than a
998-combination utility, 20% improvement in the System Average
999-Interruption Frequency Index for its Southern Region,
1000-using a baseline of the average of the data from 2001
1001-through 2010. For purposes of this paragraph (3), Southern
1002-Region shall have the meaning set forth in the
1003-participating utility's most recent report filed pursuant
1004-to Section 16-125 of this Act.
1005-(3.5) For a participating utility other than a
1006-combination utility, 20% improvement in the System Average
1007-Interruption Frequency Index for its Northeastern Region,
1008-using a baseline of the average of the data from 2001
1009-through 2010. For purposes of this paragraph (3.5),
1010457
1011458
1012-Northeastern Region shall have the meaning set forth in
1013-the participating utility's most recent report filed
1014-pursuant to Section 16-125 of this Act.
1015-(4) Seventy-five percent improvement in the total
1016-number of customers who exceed the service reliability
1017-targets as set forth in subparagraphs (A) through (C) of
1018-paragraph (4) of subsection (b) of 83 Ill. Adm. Code
1019-411.140 as of May 1, 2011, using 2010 as the baseline year.
1020-(5) Reduction in issuance of estimated electric bills:
1021-90% improvement for a participating utility other than a
1022-combination utility, and 56% improvement for a
1023-participating utility that is a combination utility, using
1024-a baseline of the average number of estimated bills for
1025-the years 2008 through 2010.
1026-(6) Consumption on inactive meters: 90% improvement
1027-for a participating utility other than a combination
1028-utility, and 56% improvement for a participating utility
1029-that is a combination utility, using a baseline of the
1030-average unbilled kilowatthours for the years 2009 and
1031-2010.
1032-(7) Unaccounted for energy: 50% improvement for a
1033-participating utility other than a combination utility
1034-using a baseline of the non-technical line loss
1035-unaccounted for energy kilowatthours for the year 2009.
1036-(8) Uncollectible expense: reduce uncollectible
1037-expense by at least $30,000,000 for a participating
459+
460+ HB4661 Enrolled - 13 - LRB103 37733 SPS 67860 b
1038461
1039462
1040-utility other than a combination utility and by at least
1041-$3,500,000 for a participating utility that is a
1042-combination utility, using a baseline of the average
1043-uncollectible expense for the years 2008 through 2010.
1044-(9) Opportunities for minority-owned and female-owned
1045-business enterprises: design a performance metric
1046-regarding the creation of opportunities for minority-owned
1047-and female-owned business enterprises consistent with
1048-State and federal law using a base performance value of
1049-the percentage of the participating utility's capital
1050-expenditures that were paid to minority-owned and
1051-female-owned business enterprises in 2010.
1052-The definitions set forth in 83 Ill. Adm. Code 411.20 as of
1053-May 1, 2011 shall be used for purposes of calculating
1054-performance under paragraphs (1) through (3.5) of this
1055-subsection (f), provided, however, that the participating
1056-utility may exclude up to 9 extreme weather event days from
1057-such calculation for each year, and provided further that the
1058-participating utility shall exclude 9 extreme weather event
1059-days when calculating each year of the baseline period to the
1060-extent that there are 9 such days in a given year of the
1061-baseline period. For purposes of this Section, an extreme
1062-weather event day is a 24-hour calendar day (beginning at
1063-12:00 a.m. and ending at 11:59 p.m.) during which any weather
1064-event (e.g., storm, tornado) caused interruptions for 10,000
1065-or more of the participating utility's customers for 3 hours
463+HB4661 Enrolled- 14 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 14 - LRB103 37733 SPS 67860 b
464+ HB4661 Enrolled - 14 - LRB103 37733 SPS 67860 b
465+1 shall remain in effect until such time as new rates are set
466+2 pursuant to Article IX of this Act, subject to retroactive
467+3 adjustment, with interest, to reconcile rates charged with
468+4 actual costs.
469+5 If the Commission finds that a participating utility is no
470+6 longer eligible to update the performance-based formula rate
471+7 tariff pursuant to subsection (d) of this Section, or the
472+8 performance-based formula rate is otherwise terminated, then
473+9 the participating utility's voluntary commitments and
474+10 obligations under this subsection (b) shall immediately
475+11 terminate, except for the utility's obligation to pay an
476+12 amount already owed to the fund for training grants pursuant
477+13 to a Commission order.
478+14 In meeting the obligations of this subsection (b), to the
479+15 extent feasible and consistent with State and federal law, the
480+16 investments under the infrastructure investment program should
481+17 provide employment opportunities for all segments of the
482+18 population and workforce, including minority-owned and
483+19 female-owned business enterprises, and shall not, consistent
484+20 with State and federal law, discriminate based on race or
485+21 socioeconomic status.
486+22 (b-5) Nothing in this Section shall prohibit the
487+23 Commission from investigating the prudence and reasonableness
488+24 of the expenditures made under the infrastructure investment
489+25 program during the annual review required by subsection (d) of
490+26 this Section and shall, as part of such investigation,
1066491
1067492
1068-or more. If there are more than 9 extreme weather event days in
1069-a year, then the utility may choose no more than 9 extreme
1070-weather event days to exclude, provided that the same extreme
1071-weather event days are excluded from each of the calculations
1072-performed under paragraphs (1) through (3.5) of this
1073-subsection (f).
1074-The metrics shall include incremental performance goals
1075-for each year of the 10-year period, which shall be designed to
1076-demonstrate that the utility is on track to achieve the
1077-performance goal in each category at the end of the 10-year
1078-period. The utility shall elect when the 10-year period shall
1079-commence for the metrics set forth in subparagraphs (1)
1080-through (4) and (9) of this subsection (f), provided that it
1081-begins no later than 14 months following the date on which the
1082-utility begins investing pursuant to subsection (b) of this
1083-Section, and when the 10-year period shall commence for the
1084-metrics set forth in subparagraphs (5) through (8) of this
1085-subsection (f), provided that it begins no later than 14
1086-months following the date on which the Commission enters its
1087-order approving the utility's Advanced Metering Infrastructure
1088-Deployment Plan pursuant to subsection (c) of Section 16-108.6
1089-of this Act.
1090-The metrics and performance goals set forth in
1091-subparagraphs (5) through (8) of this subsection (f) are based
1092-on the assumptions that the participating utility may fully
1093-implement the technology described in subsection (b) of this
1094493
1095494
1096-Section, including utilizing the full functionality of such
1097-technology and that there is no requirement for personal
1098-on-site notification. If the utility is unable to meet the
1099-metrics and performance goals set forth in subparagraphs (5)
1100-through (8) of this subsection (f) for such reasons, and the
1101-Commission so finds after notice and hearing, then the utility
1102-shall be excused from compliance, but only to the limited
1103-extent achievement of the affected metrics and performance
1104-goals was hindered by the less than full implementation.
1105-(f-5) The financial penalties applicable to the metrics
1106-described in subparagraphs (1) through (8) of subsection (f)
1107-of this Section, as applicable, shall be applied through an
1108-adjustment to the participating utility's return on equity of
1109-no more than a total of 30 basis points in each of the first 3
1110-years, of no more than a total of 34 basis points in each of
1111-the 3 years thereafter, and of no more than a total of 38 basis
1112-points in each of the 4 years thereafter, as follows:
1113-(1) With respect to each of the incremental annual
1114-performance goals established pursuant to paragraph (1) of
1115-subsection (f) of this Section,
1116-(A) for each year that a participating utility
1117-other than a combination utility does not achieve the
1118-annual goal, the participating utility's return on
1119-equity shall be reduced as follows: during years 1
1120-through 3, by 5 basis points; during years 4 through 6,
1121-by 6 basis points; and during years 7 through 10, by 7
495+
496+ HB4661 Enrolled - 14 - LRB103 37733 SPS 67860 b
1122497
1123498
1124-basis points; and
1125-(B) for each year that a participating utility
1126-that is a combination utility does not achieve the
1127-annual goal, the participating utility's return on
1128-equity shall be reduced as follows: during years 1
1129-through 3, by 10 basis points; during years 4 through
1130-6, by 12 basis points; and during years 7 through 10,
1131-by 14 basis points.
1132-(2) With respect to each of the incremental annual
1133-performance goals established pursuant to paragraph (2) of
1134-subsection (f) of this Section, for each year that the
1135-participating utility does not achieve each such goal, the
1136-participating utility's return on equity shall be reduced
1137-as follows: during years 1 through 3, by 5 basis points;
1138-during years 4 through 6, by 6 basis points; and during
1139-years 7 through 10, by 7 basis points.
1140-(3) With respect to each of the incremental annual
1141-performance goals established pursuant to paragraphs (3)
1142-and (3.5) of subsection (f) of this Section, for each year
1143-that a participating utility other than a combination
1144-utility does not achieve both such goals, the
1145-participating utility's return on equity shall be reduced
1146-as follows: during years 1 through 3, by 5 basis points;
1147-during years 4 through 6, by 6 basis points; and during
1148-years 7 through 10, by 7 basis points.
1149-(4) With respect to each of the incremental annual
499+HB4661 Enrolled- 15 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 15 - LRB103 37733 SPS 67860 b
500+ HB4661 Enrolled - 15 - LRB103 37733 SPS 67860 b
501+1 determine whether the utility's actual costs under the program
502+2 are prudent and reasonable. The fact that a participating
503+3 utility invests more than the minimum amounts specified in
504+4 subsection (b) of this Section or its plan shall not imply
505+5 imprudence or unreasonableness.
506+6 If the participating utility finds that it is implementing
507+7 its plan for satisfying the infrastructure investment program
508+8 commitments described in subsection (b) of this Section at a
509+9 cost below the estimated amounts specified in subsection (b)
510+10 of this Section, then the utility may file a petition with the
511+11 Commission requesting that it be permitted to satisfy its
512+12 commitments by spending less than the estimated amounts
513+13 specified in subsection (b) of this Section. The Commission
514+14 shall, after notice and hearing, enter its order approving, or
515+15 approving as modified, or denying each such petition within
516+16 150 days after the filing of the petition.
517+17 In no event, absent General Assembly approval, shall the
518+18 capital investment costs incurred by a participating utility
519+19 other than a combination utility in satisfying its
520+20 infrastructure investment program commitments described in
521+21 subsection (b) of this Section exceed $3,000,000,000 or, for a
522+22 participating utility that is a combination utility,
523+23 $720,000,000. If the participating utility's updated cost
524+24 estimates for satisfying its infrastructure investment program
525+25 commitments described in subsection (b) of this Section exceed
526+26 the limitation imposed by this subsection (b-5), then it shall
1150527
1151528
1152-performance goals established pursuant to paragraph (4) of
1153-subsection (f) of this Section, for each year that the
1154-participating utility does not achieve each such goal, the
1155-participating utility's return on equity shall be reduced
1156-as follows: during years 1 through 3, by 5 basis points;
1157-during years 4 through 6, by 6 basis points; and during
1158-years 7 through 10, by 7 basis points.
1159-(5) With respect to each of the incremental annual
1160-performance goals established pursuant to subparagraph (5)
1161-of subsection (f) of this Section, for each year that the
1162-participating utility does not achieve at least 95% of
1163-each such goal, the participating utility's return on
1164-equity shall be reduced by 5 basis points for each such
1165-unachieved goal.
1166-(6) With respect to each of the incremental annual
1167-performance goals established pursuant to paragraphs (6),
1168-(7), and (8) of subsection (f) of this Section, as
1169-applicable, which together measure non-operational
1170-customer savings and benefits relating to the
1171-implementation of the Advanced Metering Infrastructure
1172-Deployment Plan, as defined in Section 16-108.6 of this
1173-Act, the performance under each such goal shall be
1174-calculated in terms of the percentage of the goal
1175-achieved. The percentage of goal achieved for each of the
1176-goals shall be aggregated, and an average percentage value
1177-calculated, for each year of the 10-year period. If the
1178529
1179530
1180-utility does not achieve an average percentage value in a
1181-given year of at least 95%, the participating utility's
1182-return on equity shall be reduced by 5 basis points.
1183-The financial penalties shall be applied as described in
1184-this subsection (f-5) for the 12-month period in which the
1185-deficiency occurred through a separate tariff mechanism, which
1186-shall be filed by the utility together with its metrics. In the
1187-event the formula rate tariff established pursuant to
1188-subsection (c) of this Section terminates, the utility's
1189-obligations under subsection (f) of this Section and this
1190-subsection (f-5) shall also terminate, provided, however, that
1191-the tariff mechanism established pursuant to subsection (f) of
1192-this Section and this subsection (f-5) shall remain in effect
1193-until any penalties due and owing at the time of such
1194-termination are applied.
1195-The Commission shall, after notice and hearing, enter an
1196-order within 120 days after the metrics are filed approving,
1197-or approving with modification, a participating utility's
1198-tariff or mechanism to satisfy the metrics set forth in
1199-subsection (f) of this Section. On June 1 of each subsequent
1200-year, each participating utility shall file a report with the
1201-Commission that includes, among other things, a description of
1202-how the participating utility performed under each metric and
1203-an identification of any extraordinary events that adversely
1204-impacted the utility's performance. Whenever a participating
1205-utility does not satisfy the metrics required pursuant to
531+
532+ HB4661 Enrolled - 15 - LRB103 37733 SPS 67860 b
1206533
1207534
1208-subsection (f) of this Section, the Commission shall, after
1209-notice and hearing, enter an order approving financial
1210-penalties in accordance with this subsection (f-5). The
1211-Commission-approved financial penalties shall be applied
1212-beginning with the next rate year. Nothing in this Section
1213-shall authorize the Commission to reduce or otherwise obviate
1214-the imposition of financial penalties for failing to achieve
1215-one or more of the metrics established pursuant to
1216-subparagraphs (1) through (4) of subsection (f) of this
1217-Section.
1218-(g) On or before July 31, 2014, each participating utility
1219-shall file a report with the Commission that sets forth the
1220-average annual increase in the average amount paid per
1221-kilowatthour for residential eligible retail customers,
1222-exclusive of the effects of energy efficiency programs,
1223-comparing the 12-month period ending May 31, 2012; the
1224-12-month period ending May 31, 2013; and the 12-month period
1225-ending May 31, 2014. For a participating utility that is a
1226-combination utility with more than one rate zone, the weighted
1227-average aggregate increase shall be provided. The report shall
1228-be filed together with a statement from an independent auditor
1229-attesting to the accuracy of the report. The cost of the
1230-independent auditor shall be borne by the participating
1231-utility and shall not be a recoverable expense. "The average
1232-amount paid per kilowatthour" shall be based on the
1233-participating utility's tariffed rates actually in effect and
535+HB4661 Enrolled- 16 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 16 - LRB103 37733 SPS 67860 b
536+ HB4661 Enrolled - 16 - LRB103 37733 SPS 67860 b
537+1 submit a report to the Commission that identifies the
538+2 increased costs and explains the reason or reasons for the
539+3 increased costs no later than the year in which the utility
540+4 estimates it will exceed the limitation. The Commission shall
541+5 review the report and shall, within 90 days after the
542+6 participating utility files the report, report to the General
543+7 Assembly its findings regarding the participating utility's
544+8 report. If the General Assembly does not amend the limitation
545+9 imposed by this subsection (b-5), then the utility may modify
546+10 its plan so as not to exceed the limitation imposed by this
547+11 subsection (b-5) and may propose corresponding changes to the
548+12 metrics established pursuant to subparagraphs (5) through (8)
549+13 of subsection (f) of this Section, and the Commission may
550+14 modify the metrics and incremental savings goals established
551+15 pursuant to subsection (f) of this Section accordingly.
552+16 (b-10) All participating utilities shall make
553+17 contributions for an energy low-income and support program in
554+18 accordance with this subsection. Beginning no later than 180
555+19 days after a participating utility files a performance-based
556+20 formula rate tariff pursuant to subsection (c) of this
557+21 Section, or beginning no later than January 1, 2012 if such
558+22 utility files such performance-based formula rate tariff
559+23 within 14 days of December 30, 2011 (the effective date of
560+24 Public Act 97-646), and without obtaining any approvals from
561+25 the Commission or any other agency other than as set forth in
562+26 this Section, regardless of whether any such approval would
1234563
1235564
1236-shall not be calculated using any hypothetical rate or
1237-adjustments to actual charges (other than as specified for
1238-energy efficiency) as an input.
1239-In the event that the average annual increase exceeds 2.5%
1240-as calculated pursuant to this subsection (g), then Sections
1241-16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other
1242-than this subsection, shall be inoperative as they relate to
1243-the utility and its service area as of the date of the report
1244-due to be submitted pursuant to this subsection and the
1245-utility shall no longer be eligible to annually update the
1246-performance-based formula rate tariff pursuant to subsection
1247-(d) of this Section. In such event, the then current rates
1248-shall remain in effect until such time as new rates are set
1249-pursuant to Article IX of this Act, subject to retroactive
1250-adjustment, with interest, to reconcile rates charged with
1251-actual costs, and the participating utility's voluntary
1252-commitments and obligations under subsection (b) of this
1253-Section shall immediately terminate, except for the utility's
1254-obligation to pay an amount already owed to the fund for
1255-training grants pursuant to a Commission order issued under
1256-subsection (b) of this Section.
1257-In the event that the average annual increase is 2.5% or
1258-less as calculated pursuant to this subsection (g), then the
1259-performance-based formula rate shall remain in effect as set
1260-forth in this Section.
1261-For purposes of this Section, the amount per kilowatthour
1262565
1263566
1264-means the total amount paid for electric service expressed on
1265-a per kilowatthour basis, and the total amount paid for
1266-electric service includes without limitation amounts paid for
1267-supply, transmission, distribution, surcharges, and add-on
1268-taxes exclusive of any increases in taxes or new taxes imposed
1269-after October 26, 2011 (the effective date of Public Act
1270-97-616). For purposes of this Section, "eligible retail
1271-customers" shall have the meaning set forth in Section
1272-16-111.5 of this Act.
1273-The fact that this Section becomes inoperative as set
1274-forth in this subsection shall not be construed to mean that
1275-the Commission may reexamine or otherwise reopen prudence or
1276-reasonableness determinations already made.
1277-(h) By December 31, 2017, the Commission shall prepare and
1278-file with the General Assembly a report on the infrastructure
1279-program and the performance-based formula rate. The report
1280-shall include the change in the average amount per
1281-kilowatthour paid by residential customers between June 1,
1282-2011 and May 31, 2017. If the change in the total average rate
1283-paid exceeds 2.5% compounded annually, the Commission shall
1284-include in the report an analysis that shows the portion of the
1285-change due to the delivery services component and the portion
1286-of the change due to the supply component of the rate. The
1287-report shall include separate sections for each participating
1288-utility.
1289-The provisions of Sections 16-108.5, 16-108.6, 16-108.7,
567+
568+ HB4661 Enrolled - 16 - LRB103 37733 SPS 67860 b
1290569
1291570
1292-and 16-108.8 of this Act and the provisions of this Section,
1293-other than this subsection (h) and subsection (i) of this
1294-Section, are inoperative after December 31, 2022 for every
1295-participating utility, after which time a participating
1296-utility shall no longer be eligible to annually update the
1297-performance-based formula rate tariff pursuant to subsection
1298-(d) of this Section. At such time, the then current rates shall
1299-remain in effect until such time as new rates are set pursuant
1300-to Article IX of this Act, subject to retroactive adjustment,
1301-with interest, to reconcile rates charged with actual costs.
1302-The fact that this Section becomes inoperative as set
1303-forth in this subsection shall not be construed to mean that
1304-the Commission may reexamine or otherwise reopen prudence or
1305-reasonableness determinations already made.
1306-(i) The provisions of this subsection (i) are inoperative
1307-after December 31, 2027.
1308-While an electric a participating utility may use,
1309-develop, and maintain broadband systems and the delivery of
1310-broadband services, Voice over Internet Protocol (VoIP)
1311-voice-over-internet-protocol services, telecommunications
1312-services, and cable or and video programming services for use
1313-in providing delivery services and Smart Grid functionality or
1314-application to its retail customers, an electric including,
1315-but not limited to, the installation, implementation and
1316-maintenance of Smart Grid electric system upgrades as defined
1317-in Section 16-108.6 of this Act, a participating utility is
571+HB4661 Enrolled- 17 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 17 - LRB103 37733 SPS 67860 b
572+ HB4661 Enrolled - 17 - LRB103 37733 SPS 67860 b
573+1 otherwise be required, a participating utility other than a
574+2 combination utility shall pay $10,000,000 per year for 5 years
575+3 and a participating utility that is a combination utility
576+4 shall pay $1,000,000 per year for 10 years to the energy
577+5 low-income and support program, which is intended to fund
578+6 customer assistance programs with the primary purpose being
579+7 avoidance of imminent disconnection. Such programs may
580+8 include:
581+9 (1) a residential hardship program that may partner
582+10 with community-based organizations, including senior
583+11 citizen organizations, and provides grants to low-income
584+12 residential customers, including low-income senior
585+13 citizens, who demonstrate a hardship;
586+14 (2) a program that provides grants and other bill
587+15 payment concessions to veterans with disabilities who
588+16 demonstrate a hardship and members of the armed services
589+17 or reserve forces of the United States or members of the
590+18 Illinois National Guard who are on active duty pursuant to
591+19 an executive order of the President of the United States,
592+20 an act of the Congress of the United States, or an order of
593+21 the Governor and who demonstrate a hardship;
594+22 (3) a budget assistance program that provides tools
595+23 and education to low-income senior citizens to assist them
596+24 with obtaining information regarding energy usage and
597+25 effective means of managing energy costs;
598+26 (4) a non-residential special hardship program that
1318599
1319600
1320-prohibited from providing to its retail customers broadband
1321-services, Voice over Internet Protocol (VoIP)
1322-voice-over-internet-protocol services, telecommunications
1323-services, or cable or video programming services, unless they
1324-are part of a service directly related to delivery services or
1325-Smart Grid functionality or applications as defined in Section
1326-16-108.6 of this Act, and from recovering the costs of such
1327-offerings from retail customers. The prohibition set forth in
1328-this subsection (i) is inoperative after December 31, 2027 for
1329-every participating utility.
1330-Furthermore, an electric utility in a county with a
1331-population of 3,000,000 or more shall not authorize any other
1332-person or grant any other person the right, by agreement,
1333-lease, license, or otherwise, to access, control, use, or
1334-operate that electric utility's infrastructure, facilities, or
1335-assets of any kind or to deliver or provide to that electric
1336-utility's customers or any other person's customers, broadband
1337-services, Voice over Internet Protocol (VoIP) services,
1338-telecommunications services, or cable or video programming
1339-services.
1340-However, notwithstanding the prohibitions set forth in
1341-this Section, an electric utility in a county with a
1342-population of 3,000,000 or more may authorize or grant another
1343-person the right to access or use the electric utility's
1344-infrastructure, facilities, or assets, including, but not
1345-limited to, middle mile infrastructure, to facilitate the
1346601
1347602
1348-delivery of broadband services to Illinois residential and
1349-commercial customers on the condition that the access to and
1350-use of that electric utility's infrastructure, facilities, and
1351-assets (A) be granted on a non-discriminatory, non-exclusive,
1352-and competitively neutral basis; and (B) comply with all other
1353-State and federal laws, rules, and regulations, including, but
1354-not limited to, all applicable safety codes and requirements.
1355-If there is any dispute regarding the terms, rates, or
1356-conditions of access to or use of that electric utility's
1357-infrastructure, facilities, and assets to facilitate the
1358-delivery of broadband services to Illinois residential and
1359-commercial customers, the Commission, upon the petition of any
1360-party, shall hear and decide the dispute in accordance with
1361-the Commission's Rules of Practice (83 Ill. Adm. Code Part
1362-200).
1363-Nothing in this amendatory Act of the 103rd General
1364-Assembly shall be construed to authorize any electric utility
1365-in a county with a population of 3,000,000 or more to consent
1366-to, or grant to, any other person by agreement, lease,
1367-license, or otherwise, the right to access, occupy, or use any
1368-infrastructure, facility, easement, or asset of any kind not
1369-owned by the electric utility.
1370-Nothing in this amendatory Act of the 103rd General
1371-Assembly shall be construed to alter or diminish the rights or
1372-obligations of any person under, nor shall it be deemed to
1373-conflict with, the federal Pole Attachment Act (47 U.S.C.
603+
604+ HB4661 Enrolled - 17 - LRB103 37733 SPS 67860 b
1374605
1375606
1376-224).
1377-As used in this subsection (i):
1378-"Broadband services" means the services that are used to
1379-deliver to subscribers a high-speed service connection to the
1380-public Internet that is capable of supporting, in at least one
1381-direction, a speed in excess of 200 kilobits per second (kbps)
1382-to the network demarcation point at the subscribers' premises.
1383-"Electric utility" has the meaning set forth in Section
1384-16-102.
1385-"Middle mile infrastructure" has the meaning provided in
1386-Section 60401 of the federal Infrastructure Investment and
1387-Jobs Act (47 U.S.C. 1741).
1388-(j) Nothing in this Section is intended to legislatively
1389-overturn the opinion issued in Commonwealth Edison Co. v. Ill.
1390-Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137,
1391-1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App.
1392-Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be
1393-construed as creating a contract between the General Assembly
1394-and the participating utility, and shall not establish a
1395-property right in the participating utility.
1396-(k) The changes made in subsections (c) and (d) of this
1397-Section by Public Act 98-15 are intended to be a restatement
1398-and clarification of existing law, and intended to give
1399-binding effect to the provisions of House Resolution 1157
1400-adopted by the House of Representatives of the 97th General
1401-Assembly and Senate Resolution 821 adopted by the Senate of
607+HB4661 Enrolled- 18 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 18 - LRB103 37733 SPS 67860 b
608+ HB4661 Enrolled - 18 - LRB103 37733 SPS 67860 b
609+1 provides grants to non-residential customers such as small
610+2 businesses and non-profit organizations that demonstrate a
611+3 hardship, including those providing services to senior
612+4 citizen and low-income customers; and
613+5 (5) a performance-based assistance program that
614+6 provides grants to encourage residential customers to make
615+7 on-time payments by matching a portion of the customer's
616+8 payments or providing credits towards arrearages.
617+9 The payments made by a participating utility pursuant to
618+10 this subsection (b-10) shall not be a recoverable expense. A
619+11 participating utility may elect to fund either new or existing
620+12 customer assistance programs, including, but not limited to,
621+13 those that are administered by the utility.
622+14 Programs that use funds that are provided by a
623+15 participating utility to reduce utility bills may be
624+16 implemented through tariffs that are filed with and reviewed
625+17 by the Commission. If a utility elects to file tariffs with the
626+18 Commission to implement all or a portion of the programs,
627+19 those tariffs shall, regardless of the date actually filed, be
628+20 deemed accepted and approved, and shall become effective on
629+21 December 30, 2011 (the effective date of Public Act 97-646).
630+22 The participating utilities whose customers benefit from the
631+23 funds that are disbursed as contemplated in this Section shall
632+24 file annual reports documenting the disbursement of those
633+25 funds with the Commission. The Commission has the authority to
634+26 audit disbursement of the funds to ensure they were disbursed
1402635
1403636
1404-the 97th General Assembly that are reflected in paragraph (3)
1405-of this subsection. In addition, Public Act 98-15 preempts and
1406-supersedes any final Commission orders entered in Docket Nos.
1407-11-0721, 12-0001, 12-0293, and 12-0321 to the extent
1408-inconsistent with the amendatory language added to subsections
1409-(c) and (d).
1410-(1) No earlier than 5 business days after May 22, 2013
1411-(the effective date of Public Act 98-15), each
1412-participating utility shall file any tariff changes
1413-necessary to implement the amendatory language set forth
1414-in subsections (c) and (d) of this Section by Public Act
1415-98-15 and a revised revenue requirement under the
1416-participating utility's performance-based formula rate.
1417-The Commission shall enter a final order approving such
1418-tariff changes and revised revenue requirement within 21
1419-days after the participating utility's filing.
1420-(2) Notwithstanding anything that may be to the
1421-contrary, a participating utility may file a tariff to
1422-retroactively recover its previously unrecovered actual
1423-costs of delivery service that are no longer subject to
1424-recovery through a reconciliation adjustment under
1425-subsection (d) of this Section. This retroactive recovery
1426-shall include any derivative adjustments resulting from
1427-the changes to subsections (c) and (d) of this Section by
1428-Public Act 98-15. Such tariff shall allow the utility to
1429-assess, on current customer bills over a period of 12
1430637
1431638
1432-monthly billing periods, a charge or credit related to
1433-those unrecovered costs with interest at the utility's
1434-weighted average cost of capital during the period in
1435-which those costs were unrecovered. A participating
1436-utility may file a tariff that implements a retroactive
1437-charge or credit as described in this paragraph for
1438-amounts not otherwise included in the tariff filing
1439-provided for in paragraph (1) of this subsection (k). The
1440-Commission shall enter a final order approving such tariff
1441-within 21 days after the participating utility's filing.
1442-(3) The tariff changes described in paragraphs (1) and
1443-(2) of this subsection (k) shall relate only to, and be
1444-consistent with, the following provisions of Public Act
1445-98-15: paragraph (2) of subsection (c) regarding year-end
1446-capital structure, subparagraph (D) of paragraph (4) of
1447-subsection (c) regarding pension assets, and subsection
1448-(d) regarding the reconciliation components related to
1449-year-end rate base and interest calculated at a rate equal
1450-to the utility's weighted average cost of capital.
1451-(4) Nothing in this subsection is intended to effect a
1452-dismissal of or otherwise affect an appeal from any final
1453-Commission orders entered in Docket Nos. 11-0721, 12-0001,
1454-12-0293, and 12-0321 other than to the extent of the
1455-amendatory language contained in subsections (c) and (d)
1456-of this Section of Public Act 98-15.
1457-(l) Each participating utility shall be deemed to have
639+
640+ HB4661 Enrolled - 18 - LRB103 37733 SPS 67860 b
1458641
1459642
1460-been in full compliance with all requirements of subsection
1461-(b) of this Section, subsection (c) of this Section, Section
1462-16-108.6 of this Act, and all Commission orders entered
1463-pursuant to Sections 16-108.5 and 16-108.6 of this Act, up to
1464-and including May 22, 2013 (the effective date of Public Act
1465-98-15). The Commission shall not undertake any investigation
1466-of such compliance and no penalty shall be assessed or adverse
1467-action taken against a participating utility for noncompliance
1468-with Commission orders associated with subsection (b) of this
1469-Section, subsection (c) of this Section, and Section 16-108.6
1470-of this Act prior to such date. Each participating utility
1471-other than a combination utility shall be permitted, without
1472-penalty, a period of 12 months after such effective date to
1473-take actions required to ensure its infrastructure investment
1474-program is in compliance with subsection (b) of this Section
1475-and with Section 16-108.6 of this Act. Provided further, the
1476-following subparagraphs shall apply to a participating utility
1477-other than a combination utility:
1478-(A) if the Commission has initiated a proceeding
1479-pursuant to subsection (e) of Section 16-108.6 of this Act
1480-that is pending as of May 22, 2013 (the effective date of
1481-Public Act 98-15), then the order entered in such
1482-proceeding shall, after notice and hearing, accelerate the
1483-commencement of the meter deployment schedule approved in
1484-the final Commission order on rehearing entered in Docket
1485-No. 12-0298;
643+HB4661 Enrolled- 19 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 19 - LRB103 37733 SPS 67860 b
644+ HB4661 Enrolled - 19 - LRB103 37733 SPS 67860 b
645+1 consistently with this Section.
646+2 If the Commission finds that a participating utility is no
647+3 longer eligible to update the performance-based formula rate
648+4 tariff pursuant to subsection (d) of this Section, or the
649+5 performance-based formula rate is otherwise terminated, then
650+6 the participating utility's voluntary commitments and
651+7 obligations under this subsection (b-10) shall immediately
652+8 terminate.
653+9 (c) A participating utility may elect to recover its
654+10 delivery services costs through a performance-based formula
655+11 rate approved by the Commission, which shall specify the cost
656+12 components that form the basis of the rate charged to
657+13 customers with sufficient specificity to operate in a
658+14 standardized manner and be updated annually with transparent
659+15 information that reflects the utility's actual costs to be
660+16 recovered during the applicable rate year, which is the period
661+17 beginning with the first billing day of January and extending
662+18 through the last billing day of the following December. In the
663+19 event the utility recovers a portion of its costs through
664+20 automatic adjustment clause tariffs on October 26, 2011 (the
665+21 effective date of Public Act 97-616), the utility may elect to
666+22 continue to recover these costs through such tariffs, but then
667+23 these costs shall not be recovered through the
668+24 performance-based formula rate. In the event the participating
669+25 utility, prior to December 30, 2011 (the effective date of
670+26 Public Act 97-646), filed electric delivery services tariffs
1486671
1487672
1488-(B) if the Commission has entered an order pursuant to
1489-subsection (e) of Section 16-108.6 of this Act prior to
1490-May 22, 2013 (the effective date of Public Act 98-15) that
1491-does not accelerate the commencement of the meter
1492-deployment schedule approved in the final Commission order
1493-on rehearing entered in Docket No. 12-0298, then the
1494-utility shall file with the Commission, within 45 days
1495-after such effective date, a plan for accelerating the
1496-commencement of the utility's meter deployment schedule
1497-approved in the final Commission order on rehearing
1498-entered in Docket No. 12-0298; the Commission shall reopen
1499-the proceeding in which it entered its order pursuant to
1500-subsection (e) of Section 16-108.6 of this Act and shall,
1501-after notice and hearing, enter an amendatory order that
1502-approves or approves as modified such accelerated plan
1503-within 90 days after the utility's filing; or
1504-(C) if the Commission has not initiated a proceeding
1505-pursuant to subsection (e) of Section 16-108.6 of this Act
1506-prior to May 22, 2013 (the effective date of Public Act
1507-98-15), then the utility shall file with the Commission,
1508-within 45 days after such effective date, a plan for
1509-accelerating the commencement of the utility's meter
1510-deployment schedule approved in the final Commission order
1511-on rehearing entered in Docket No. 12-0298 and the
1512-Commission shall, after notice and hearing, approve or
1513-approve as modified such plan within 90 days after the
1514673
1515674
1516-utility's filing.
1517-Any schedule for meter deployment approved by the
1518-Commission pursuant to this subsection (l) shall take into
1519-consideration procurement times for meters and other equipment
1520-and operational issues. Nothing in Public Act 98-15 shall
1521-shorten or extend the end dates for the 5-year or 10-year
1522-periods set forth in subsection (b) of this Section or Section
1523-16-108.6 of this Act. Nothing in this subsection is intended
1524-to address whether a participating utility has, or has not,
1525-satisfied any or all of the metrics and performance goals
1526-established pursuant to subsection (f) of this Section.
1527-(m) The provisions of Public Act 98-15 are severable under
1528-Section 1.31 of the Statute on Statutes.
1529-(Source: P.A. 102-1031, eff. 5-27-22; 103-154, eff. 6-30-23.)
675+
676+ HB4661 Enrolled - 19 - LRB103 37733 SPS 67860 b
677+
678+
679+HB4661 Enrolled- 20 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 20 - LRB103 37733 SPS 67860 b
680+ HB4661 Enrolled - 20 - LRB103 37733 SPS 67860 b
681+1 with the Commission pursuant to Section 9-201 of this Act that
682+2 are related to the recovery of its electric delivery services
683+3 costs that are still pending on December 30, 2011 (the
684+4 effective date of Public Act 97-646), the participating
685+5 utility shall, at the time it files its performance-based
686+6 formula rate tariff with the Commission, also file a notice of
687+7 withdrawal with the Commission to withdraw the electric
688+8 delivery services tariffs previously filed pursuant to Section
689+9 9-201 of this Act. Upon receipt of such notice, the Commission
690+10 shall dismiss with prejudice any docket that had been
691+11 initiated to investigate the electric delivery services
692+12 tariffs filed pursuant to Section 9-201 of this Act, and such
693+13 tariffs and the record related thereto shall not be the
694+14 subject of any further hearing, investigation, or proceeding
695+15 of any kind related to rates for electric delivery services.
696+16 The performance-based formula rate shall be implemented
697+17 through a tariff filed with the Commission consistent with the
698+18 provisions of this subsection (c) that shall be applicable to
699+19 all delivery services customers. The Commission shall initiate
700+20 and conduct an investigation of the tariff in a manner
701+21 consistent with the provisions of this subsection (c) and the
702+22 provisions of Article IX of this Act to the extent they do not
703+23 conflict with this subsection (c). Except in the case where
704+24 the Commission finds, after notice and hearing, that a
705+25 participating utility is not satisfying its investment amount
706+26 commitments under subsection (b) of this Section, the
707+
708+
709+
710+
711+
712+ HB4661 Enrolled - 20 - LRB103 37733 SPS 67860 b
713+
714+
715+HB4661 Enrolled- 21 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 21 - LRB103 37733 SPS 67860 b
716+ HB4661 Enrolled - 21 - LRB103 37733 SPS 67860 b
717+1 performance-based formula rate shall remain in effect at the
718+2 discretion of the utility. The performance-based formula rate
719+3 approved by the Commission shall do the following:
720+4 (1) Provide for the recovery of the utility's actual
721+5 costs of delivery services that are prudently incurred and
722+6 reasonable in amount consistent with Commission practice
723+7 and law. The sole fact that a cost differs from that
724+8 incurred in a prior calendar year or that an investment is
725+9 different from that made in a prior calendar year shall
726+10 not imply the imprudence or unreasonableness of that cost
727+11 or investment.
728+12 (2) Reflect the utility's actual year-end capital
729+13 structure for the applicable calendar year, excluding
730+14 goodwill, subject to a determination of prudence and
731+15 reasonableness consistent with Commission practice and
732+16 law. To enable the financing of the incremental capital
733+17 expenditures, including regulatory assets, for electric
734+18 utilities that serve less than 3,000,000 retail customers
735+19 but more than 500,000 retail customers in the State, a
736+20 participating electric utility's actual year-end capital
737+21 structure that includes a common equity ratio, excluding
738+22 goodwill, of up to and including 50% of the total capital
739+23 structure shall be deemed reasonable and used to set
740+24 rates.
741+25 (3) Include a cost of equity, which shall be
742+26 calculated as the sum of the following:
743+
744+
745+
746+
747+
748+ HB4661 Enrolled - 21 - LRB103 37733 SPS 67860 b
749+
750+
751+HB4661 Enrolled- 22 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 22 - LRB103 37733 SPS 67860 b
752+ HB4661 Enrolled - 22 - LRB103 37733 SPS 67860 b
753+1 (A) the average for the applicable calendar year
754+2 of the monthly average yields of 30-year U.S. Treasury
755+3 bonds published by the Board of Governors of the
756+4 Federal Reserve System in its weekly H.15 Statistical
757+5 Release or successor publication; and
758+6 (B) 580 basis points.
759+7 At such time as the Board of Governors of the Federal
760+8 Reserve System ceases to include the monthly average
761+9 yields of 30-year U.S. Treasury bonds in its weekly H.15
762+10 Statistical Release or successor publication, the monthly
763+11 average yields of the U.S. Treasury bonds then having the
764+12 longest duration published by the Board of Governors in
765+13 its weekly H.15 Statistical Release or successor
766+14 publication shall instead be used for purposes of this
767+15 paragraph (3).
768+16 (4) Permit and set forth protocols, subject to a
769+17 determination of prudence and reasonableness consistent
770+18 with Commission practice and law, for the following:
771+19 (A) recovery of incentive compensation expense
772+20 that is based on the achievement of operational
773+21 metrics, including metrics related to budget controls,
774+22 outage duration and frequency, safety, customer
775+23 service, efficiency and productivity, and
776+24 environmental compliance. Incentive compensation
777+25 expense that is based on net income or an affiliate's
778+26 earnings per share shall not be recoverable under the
779+
780+
781+
782+
783+
784+ HB4661 Enrolled - 22 - LRB103 37733 SPS 67860 b
785+
786+
787+HB4661 Enrolled- 23 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 23 - LRB103 37733 SPS 67860 b
788+ HB4661 Enrolled - 23 - LRB103 37733 SPS 67860 b
789+1 performance-based formula rate;
790+2 (B) recovery of pension and other post-employment
791+3 benefits expense, provided that such costs are
792+4 supported by an actuarial study;
793+5 (C) recovery of severance costs, provided that if
794+6 the amount is over $3,700,000 for a participating
795+7 utility that is a combination utility or $10,000,000
796+8 for a participating utility that serves more than 3
797+9 million retail customers, then the full amount shall
798+10 be amortized consistent with subparagraph (F) of this
799+11 paragraph (4);
800+12 (D) investment return at a rate equal to the
801+13 utility's weighted average cost of long-term debt, on
802+14 the pension assets as, and in the amount, reported in
803+15 Account 186 (or in such other Account or Accounts as
804+16 such asset may subsequently be recorded) of the
805+17 utility's most recently filed FERC Form 1, net of
806+18 deferred tax benefits;
807+19 (E) recovery of the expenses related to the
808+20 Commission proceeding under this subsection (c) to
809+21 approve this performance-based formula rate and
810+22 initial rates or to subsequent proceedings related to
811+23 the formula, provided that the recovery shall be
812+24 amortized over a 3-year period; recovery of expenses
813+25 related to the annual Commission proceedings under
814+26 subsection (d) of this Section to review the inputs to
815+
816+
817+
818+
819+
820+ HB4661 Enrolled - 23 - LRB103 37733 SPS 67860 b
821+
822+
823+HB4661 Enrolled- 24 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 24 - LRB103 37733 SPS 67860 b
824+ HB4661 Enrolled - 24 - LRB103 37733 SPS 67860 b
825+1 the performance-based formula rate shall be expensed
826+2 and recovered through the performance-based formula
827+3 rate;
828+4 (F) amortization over a 5-year period of the full
829+5 amount of each charge or credit that exceeds
830+6 $3,700,000 for a participating utility that is a
831+7 combination utility or $10,000,000 for a participating
832+8 utility that serves more than 3 million retail
833+9 customers in the applicable calendar year and that
834+10 relates to a workforce reduction program's severance
835+11 costs, changes in accounting rules, changes in law,
836+12 compliance with any Commission-initiated audit, or a
837+13 single storm or other similar expense, provided that
838+14 any unamortized balance shall be reflected in the rate
839+15 base. For purposes of this subparagraph (F), changes
840+16 in law includes any enactment, repeal, or amendment in
841+17 a law, ordinance, rule, regulation, interpretation,
842+18 permit, license, consent, or order, including those
843+19 relating to taxes, accounting, or to environmental
844+20 matters, or in the interpretation or application
845+21 thereof by any governmental authority occurring after
846+22 October 26, 2011 (the effective date of Public Act
847+23 97-616);
848+24 (G) recovery of existing regulatory assets over
849+25 the periods previously authorized by the Commission;
850+26 (H) historical weather normalized billing
851+
852+
853+
854+
855+
856+ HB4661 Enrolled - 24 - LRB103 37733 SPS 67860 b
857+
858+
859+HB4661 Enrolled- 25 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 25 - LRB103 37733 SPS 67860 b
860+ HB4661 Enrolled - 25 - LRB103 37733 SPS 67860 b
861+1 determinants; and
862+2 (I) allocation methods for common costs.
863+3 (5) Provide that if the participating utility's earned
864+4 rate of return on common equity related to the provision
865+5 of delivery services for the prior rate year (calculated
866+6 using costs and capital structure approved by the
867+7 Commission as provided in subparagraph (2) of this
868+8 subsection (c), consistent with this Section, in
869+9 accordance with Commission rules and orders, including,
870+10 but not limited to, adjustments for goodwill, and after
871+11 any Commission-ordered disallowances and taxes) is more
872+12 than 50 basis points higher than the rate of return on
873+13 common equity calculated pursuant to paragraph (3) of this
874+14 subsection (c) (after adjusting for any penalties to the
875+15 rate of return on common equity applied pursuant to the
876+16 performance metrics provision of subsection (f) of this
877+17 Section), then the participating utility shall apply a
878+18 credit through the performance-based formula rate that
879+19 reflects an amount equal to the value of that portion of
880+20 the earned rate of return on common equity that is more
881+21 than 50 basis points higher than the rate of return on
882+22 common equity calculated pursuant to paragraph (3) of this
883+23 subsection (c) (after adjusting for any penalties to the
884+24 rate of return on common equity applied pursuant to the
885+25 performance metrics provision of subsection (f) of this
886+26 Section) for the prior rate year, adjusted for taxes. If
887+
888+
889+
890+
891+
892+ HB4661 Enrolled - 25 - LRB103 37733 SPS 67860 b
893+
894+
895+HB4661 Enrolled- 26 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 26 - LRB103 37733 SPS 67860 b
896+ HB4661 Enrolled - 26 - LRB103 37733 SPS 67860 b
897+1 the participating utility's earned rate of return on
898+2 common equity related to the provision of delivery
899+3 services for the prior rate year (calculated using costs
900+4 and capital structure approved by the Commission as
901+5 provided in subparagraph (2) of this subsection (c),
902+6 consistent with this Section, in accordance with
903+7 Commission rules and orders, including, but not limited
904+8 to, adjustments for goodwill, and after any
905+9 Commission-ordered disallowances and taxes) is more than
906+10 50 basis points less than the return on common equity
907+11 calculated pursuant to paragraph (3) of this subsection
908+12 (c) (after adjusting for any penalties to the rate of
909+13 return on common equity applied pursuant to the
910+14 performance metrics provision of subsection (f) of this
911+15 Section), then the participating utility shall apply a
912+16 charge through the performance-based formula rate that
913+17 reflects an amount equal to the value of that portion of
914+18 the earned rate of return on common equity that is more
915+19 than 50 basis points less than the rate of return on common
916+20 equity calculated pursuant to paragraph (3) of this
917+21 subsection (c) (after adjusting for any penalties to the
918+22 rate of return on common equity applied pursuant to the
919+23 performance metrics provision of subsection (f) of this
920+24 Section) for the prior rate year, adjusted for taxes.
921+25 (6) Provide for an annual reconciliation, as described
922+26 in subsection (d) of this Section, with interest, of the
923+
924+
925+
926+
927+
928+ HB4661 Enrolled - 26 - LRB103 37733 SPS 67860 b
929+
930+
931+HB4661 Enrolled- 27 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 27 - LRB103 37733 SPS 67860 b
932+ HB4661 Enrolled - 27 - LRB103 37733 SPS 67860 b
933+1 revenue requirement reflected in rates for each calendar
934+2 year, beginning with the calendar year in which the
935+3 utility files its performance-based formula rate tariff
936+4 pursuant to subsection (c) of this Section, with what the
937+5 revenue requirement would have been had the actual cost
938+6 information for the applicable calendar year been
939+7 available at the filing date.
940+8 The utility shall file, together with its tariff, final
941+9 data based on its most recently filed FERC Form 1, plus
942+10 projected plant additions and correspondingly updated
943+11 depreciation reserve and expense for the calendar year in
944+12 which the tariff and data are filed, that shall populate the
945+13 performance-based formula rate and set the initial delivery
946+14 services rates under the formula. For purposes of this
947+15 Section, "FERC Form 1" means the Annual Report of Major
948+16 Electric Utilities, Licensees and Others that electric
949+17 utilities are required to file with the Federal Energy
950+18 Regulatory Commission under the Federal Power Act, Sections 3,
951+19 4(a), 304 and 209, modified as necessary to be consistent with
952+20 83 Ill. Adm. Code Part 415 as of May 1, 2011. Nothing in this
953+21 Section is intended to allow costs that are not otherwise
954+22 recoverable to be recoverable by virtue of inclusion in FERC
955+23 Form 1.
956+24 After the utility files its proposed performance-based
957+25 formula rate structure and protocols and initial rates, the
958+26 Commission shall initiate a docket to review the filing. The
959+
960+
961+
962+
963+
964+ HB4661 Enrolled - 27 - LRB103 37733 SPS 67860 b
965+
966+
967+HB4661 Enrolled- 28 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 28 - LRB103 37733 SPS 67860 b
968+ HB4661 Enrolled - 28 - LRB103 37733 SPS 67860 b
969+1 Commission shall enter an order approving, or approving as
970+2 modified, the performance-based formula rate, including the
971+3 initial rates, as just and reasonable within 270 days after
972+4 the date on which the tariff was filed, or, if the tariff is
973+5 filed within 14 days after October 26, 2011 (the effective
974+6 date of Public Act 97-616), then by May 31, 2012. Such review
975+7 shall be based on the same evidentiary standards, including,
976+8 but not limited to, those concerning the prudence and
977+9 reasonableness of the costs incurred by the utility, the
978+10 Commission applies in a hearing to review a filing for a
979+11 general increase in rates under Article IX of this Act. The
980+12 initial rates shall take effect within 30 days after the
981+13 Commission's order approving the performance-based formula
982+14 rate tariff.
983+15 Until such time as the Commission approves a different
984+16 rate design and cost allocation pursuant to subsection (e) of
985+17 this Section, rate design and cost allocation across customer
986+18 classes shall be consistent with the Commission's most recent
987+19 order regarding the participating utility's request for a
988+20 general increase in its delivery services rates.
989+21 Subsequent changes to the performance-based formula rate
990+22 structure or protocols shall be made as set forth in Section
991+23 9-201 of this Act, but nothing in this subsection (c) is
992+24 intended to limit the Commission's authority under Article IX
993+25 and other provisions of this Act to initiate an investigation
994+26 of a participating utility's performance-based formula rate
995+
996+
997+
998+
999+
1000+ HB4661 Enrolled - 28 - LRB103 37733 SPS 67860 b
1001+
1002+
1003+HB4661 Enrolled- 29 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 29 - LRB103 37733 SPS 67860 b
1004+ HB4661 Enrolled - 29 - LRB103 37733 SPS 67860 b
1005+1 tariff, provided that any such changes shall be consistent
1006+2 with paragraphs (1) through (6) of this subsection (c). Any
1007+3 change ordered by the Commission shall be made at the same time
1008+4 new rates take effect following the Commission's next order
1009+5 pursuant to subsection (d) of this Section, provided that the
1010+6 new rates take effect no less than 30 days after the date on
1011+7 which the Commission issues an order adopting the change.
1012+8 A participating utility that files a tariff pursuant to
1013+9 this subsection (c) must submit a one-time $200,000 filing fee
1014+10 at the time the Chief Clerk of the Commission accepts the
1015+11 filing, which shall be a recoverable expense.
1016+12 In the event the performance-based formula rate is
1017+13 terminated, the then current rates shall remain in effect
1018+14 until such time as new rates are set pursuant to Article IX of
1019+15 this Act, subject to retroactive rate adjustment, with
1020+16 interest, to reconcile rates charged with actual costs. At
1021+17 such time that the performance-based formula rate is
1022+18 terminated, the participating utility's voluntary commitments
1023+19 and obligations under subsection (b) of this Section shall
1024+20 immediately terminate, except for the utility's obligation to
1025+21 pay an amount already owed to the fund for training grants
1026+22 pursuant to a Commission order issued under subsection (b) of
1027+23 this Section.
1028+24 (d) Subsequent to the Commission's issuance of an order
1029+25 approving the utility's performance-based formula rate
1030+26 structure and protocols, and initial rates under subsection
1031+
1032+
1033+
1034+
1035+
1036+ HB4661 Enrolled - 29 - LRB103 37733 SPS 67860 b
1037+
1038+
1039+HB4661 Enrolled- 30 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 30 - LRB103 37733 SPS 67860 b
1040+ HB4661 Enrolled - 30 - LRB103 37733 SPS 67860 b
1041+1 (c) of this Section, the utility shall file, on or before May 1
1042+2 of each year, with the Chief Clerk of the Commission its
1043+3 updated cost inputs to the performance-based formula rate for
1044+4 the applicable rate year and the corresponding new charges.
1045+5 Each such filing shall conform to the following requirements
1046+6 and include the following information:
1047+7 (1) The inputs to the performance-based formula rate
1048+8 for the applicable rate year shall be based on final
1049+9 historical data reflected in the utility's most recently
1050+10 filed annual FERC Form 1 plus projected plant additions
1051+11 and correspondingly updated depreciation reserve and
1052+12 expense for the calendar year in which the inputs are
1053+13 filed. The filing shall also include a reconciliation of
1054+14 the revenue requirement that was in effect for the prior
1055+15 rate year (as set by the cost inputs for the prior rate
1056+16 year) with the actual revenue requirement for the prior
1057+17 rate year (determined using a year-end rate base) that
1058+18 uses amounts reflected in the applicable FERC Form 1 that
1059+19 reports the actual costs for the prior rate year. Any
1060+20 over-collection or under-collection indicated by such
1061+21 reconciliation shall be reflected as a credit against, or
1062+22 recovered as an additional charge to, respectively, with
1063+23 interest calculated at a rate equal to the utility's
1064+24 weighted average cost of capital approved by the
1065+25 Commission for the prior rate year, the charges for the
1066+26 applicable rate year. Provided, however, that the first
1067+
1068+
1069+
1070+
1071+
1072+ HB4661 Enrolled - 30 - LRB103 37733 SPS 67860 b
1073+
1074+
1075+HB4661 Enrolled- 31 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 31 - LRB103 37733 SPS 67860 b
1076+ HB4661 Enrolled - 31 - LRB103 37733 SPS 67860 b
1077+1 such reconciliation shall be for the calendar year in
1078+2 which the utility files its performance-based formula rate
1079+3 tariff pursuant to subsection (c) of this Section and
1080+4 shall reconcile (i) the revenue requirement or
1081+5 requirements established by the rate order or orders in
1082+6 effect from time to time during such calendar year
1083+7 (weighted, as applicable) with (ii) the revenue
1084+8 requirement determined using a year-end rate base for that
1085+9 calendar year calculated pursuant to the performance-based
1086+10 formula rate using (A) actual costs for that year as
1087+11 reflected in the applicable FERC Form 1, and (B) for the
1088+12 first such reconciliation only, the cost of equity, which
1089+13 shall be calculated as the sum of 590 basis points plus the
1090+14 average for the applicable calendar year of the monthly
1091+15 average yields of 30-year U.S. Treasury bonds published by
1092+16 the Board of Governors of the Federal Reserve System in
1093+17 its weekly H.15 Statistical Release or successor
1094+18 publication. The first such reconciliation is not intended
1095+19 to provide for the recovery of costs previously excluded
1096+20 from rates based on a prior Commission order finding of
1097+21 imprudence or unreasonableness. Each reconciliation shall
1098+22 be certified by the participating utility in the same
1099+23 manner that FERC Form 1 is certified. The filing shall
1100+24 also include the charge or credit, if any, resulting from
1101+25 the calculation required by paragraph (6) of subsection
1102+26 (c) of this Section.
1103+
1104+
1105+
1106+
1107+
1108+ HB4661 Enrolled - 31 - LRB103 37733 SPS 67860 b
1109+
1110+
1111+HB4661 Enrolled- 32 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 32 - LRB103 37733 SPS 67860 b
1112+ HB4661 Enrolled - 32 - LRB103 37733 SPS 67860 b
1113+1 Notwithstanding anything that may be to the contrary,
1114+2 the intent of the reconciliation is to ultimately
1115+3 reconcile the revenue requirement reflected in rates for
1116+4 each calendar year, beginning with the calendar year in
1117+5 which the utility files its performance-based formula rate
1118+6 tariff pursuant to subsection (c) of this Section, with
1119+7 what the revenue requirement determined using a year-end
1120+8 rate base for the applicable calendar year would have been
1121+9 had the actual cost information for the applicable
1122+10 calendar year been available at the filing date.
1123+11 (2) The new charges shall take effect beginning on the
1124+12 first billing day of the following January billing period
1125+13 and remain in effect through the last billing day of the
1126+14 next December billing period regardless of whether the
1127+15 Commission enters upon a hearing pursuant to this
1128+16 subsection (d).
1129+17 (3) The filing shall include relevant and necessary
1130+18 data and documentation for the applicable rate year that
1131+19 is consistent with the Commission's rules applicable to a
1132+20 filing for a general increase in rates or any rules
1133+21 adopted by the Commission to implement this Section.
1134+22 Normalization adjustments shall not be required.
1135+23 Notwithstanding any other provision of this Section or Act
1136+24 or any rule or other requirement adopted by the
1137+25 Commission, a participating utility that is a combination
1138+26 utility with more than one rate zone shall not be required
1139+
1140+
1141+
1142+
1143+
1144+ HB4661 Enrolled - 32 - LRB103 37733 SPS 67860 b
1145+
1146+
1147+HB4661 Enrolled- 33 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 33 - LRB103 37733 SPS 67860 b
1148+ HB4661 Enrolled - 33 - LRB103 37733 SPS 67860 b
1149+1 to file a separate set of such data and documentation for
1150+2 each rate zone and may combine such data and documentation
1151+3 into a single set of schedules.
1152+4 Within 45 days after the utility files its annual update
1153+5 of cost inputs to the performance-based formula rate, the
1154+6 Commission shall have the authority, either upon complaint or
1155+7 its own initiative, but with reasonable notice, to enter upon
1156+8 a hearing concerning the prudence and reasonableness of the
1157+9 costs incurred by the utility to be recovered during the
1158+10 applicable rate year that are reflected in the inputs to the
1159+11 performance-based formula rate derived from the utility's FERC
1160+12 Form 1. During the course of the hearing, each objection shall
1161+13 be stated with particularity and evidence provided in support
1162+14 thereof, after which the utility shall have the opportunity to
1163+15 rebut the evidence. Discovery shall be allowed consistent with
1164+16 the Commission's Rules of Practice, which Rules shall be
1165+17 enforced by the Commission or the assigned administrative law
1166+18 judge. The Commission shall apply the same evidentiary
1167+19 standards, including, but not limited to, those concerning the
1168+20 prudence and reasonableness of the costs incurred by the
1169+21 utility, in the hearing as it would apply in a hearing to
1170+22 review a filing for a general increase in rates under Article
1171+23 IX of this Act. The Commission shall not, however, have the
1172+24 authority in a proceeding under this subsection (d) to
1173+25 consider or order any changes to the structure or protocols of
1174+26 the performance-based formula rate approved pursuant to
1175+
1176+
1177+
1178+
1179+
1180+ HB4661 Enrolled - 33 - LRB103 37733 SPS 67860 b
1181+
1182+
1183+HB4661 Enrolled- 34 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 34 - LRB103 37733 SPS 67860 b
1184+ HB4661 Enrolled - 34 - LRB103 37733 SPS 67860 b
1185+1 subsection (c) of this Section. In a proceeding under this
1186+2 subsection (d), the Commission shall enter its order no later
1187+3 than the earlier of 240 days after the utility's filing of its
1188+4 annual update of cost inputs to the performance-based formula
1189+5 rate or December 31. The Commission's determinations of the
1190+6 prudence and reasonableness of the costs incurred for the
1191+7 applicable calendar year shall be final upon entry of the
1192+8 Commission's order and shall not be subject to reopening,
1193+9 reexamination, or collateral attack in any other Commission
1194+10 proceeding, case, docket, order, rule or regulation, provided,
1195+11 however, that nothing in this subsection (d) shall prohibit a
1196+12 party from petitioning the Commission to rehear or appeal to
1197+13 the courts the order pursuant to the provisions of this Act.
1198+14 In the event the Commission does not, either upon
1199+15 complaint or its own initiative, enter upon a hearing within
1200+16 45 days after the utility files the annual update of cost
1201+17 inputs to its performance-based formula rate, then the costs
1202+18 incurred for the applicable calendar year shall be deemed
1203+19 prudent and reasonable, and the filed charges shall not be
1204+20 subject to reopening, reexamination, or collateral attack in
1205+21 any other proceeding, case, docket, order, rule, or
1206+22 regulation.
1207+23 A participating utility's first filing of the updated cost
1208+24 inputs, and any Commission investigation of such inputs
1209+25 pursuant to this subsection (d) shall proceed notwithstanding
1210+26 the fact that the Commission's investigation under subsection
1211+
1212+
1213+
1214+
1215+
1216+ HB4661 Enrolled - 34 - LRB103 37733 SPS 67860 b
1217+
1218+
1219+HB4661 Enrolled- 35 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 35 - LRB103 37733 SPS 67860 b
1220+ HB4661 Enrolled - 35 - LRB103 37733 SPS 67860 b
1221+1 (c) of this Section is still pending and notwithstanding any
1222+2 other law, order, rule, or Commission practice to the
1223+3 contrary.
1224+4 (e) Nothing in subsections (c) or (d) of this Section
1225+5 shall prohibit the Commission from investigating, or a
1226+6 participating utility from filing, revenue-neutral tariff
1227+7 changes related to rate design of a performance-based formula
1228+8 rate that has been placed into effect for the utility.
1229+9 Following approval of a participating utility's
1230+10 performance-based formula rate tariff pursuant to subsection
1231+11 (c) of this Section, the utility shall make a filing with the
1232+12 Commission within one year after the effective date of the
1233+13 performance-based formula rate tariff that proposes changes to
1234+14 the tariff to incorporate the findings of any final rate
1235+15 design orders of the Commission applicable to the
1236+16 participating utility and entered subsequent to the
1237+17 Commission's approval of the tariff. The Commission shall,
1238+18 after notice and hearing, enter its order approving, or
1239+19 approving with modification, the proposed changes to the
1240+20 performance-based formula rate tariff within 240 days after
1241+21 the utility's filing. Following such approval, the utility
1242+22 shall make a filing with the Commission during each subsequent
1243+23 3-year period that either proposes revenue-neutral tariff
1244+24 changes or re-files the existing tariffs without change, which
1245+25 shall present the Commission with an opportunity to suspend
1246+26 the tariffs and consider revenue-neutral tariff changes
1247+
1248+
1249+
1250+
1251+
1252+ HB4661 Enrolled - 35 - LRB103 37733 SPS 67860 b
1253+
1254+
1255+HB4661 Enrolled- 36 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 36 - LRB103 37733 SPS 67860 b
1256+ HB4661 Enrolled - 36 - LRB103 37733 SPS 67860 b
1257+1 related to rate design.
1258+2 (f) Within 30 days after the filing of a tariff pursuant to
1259+3 subsection (c) of this Section, each participating utility
1260+4 shall develop and file with the Commission multi-year metrics
1261+5 designed to achieve, ratably (i.e., in equal segments) over a
1262+6 10-year period, improvement over baseline performance values
1263+7 as follows:
1264+8 (1) Twenty percent improvement in the System Average
1265+9 Interruption Frequency Index, using a baseline of the
1266+10 average of the data from 2001 through 2010.
1267+11 (2) Fifteen percent improvement in the system Customer
1268+12 Average Interruption Duration Index, using a baseline of
1269+13 the average of the data from 2001 through 2010.
1270+14 (3) For a participating utility other than a
1271+15 combination utility, 20% improvement in the System Average
1272+16 Interruption Frequency Index for its Southern Region,
1273+17 using a baseline of the average of the data from 2001
1274+18 through 2010. For purposes of this paragraph (3), Southern
1275+19 Region shall have the meaning set forth in the
1276+20 participating utility's most recent report filed pursuant
1277+21 to Section 16-125 of this Act.
1278+22 (3.5) For a participating utility other than a
1279+23 combination utility, 20% improvement in the System Average
1280+24 Interruption Frequency Index for its Northeastern Region,
1281+25 using a baseline of the average of the data from 2001
1282+26 through 2010. For purposes of this paragraph (3.5),
1283+
1284+
1285+
1286+
1287+
1288+ HB4661 Enrolled - 36 - LRB103 37733 SPS 67860 b
1289+
1290+
1291+HB4661 Enrolled- 37 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 37 - LRB103 37733 SPS 67860 b
1292+ HB4661 Enrolled - 37 - LRB103 37733 SPS 67860 b
1293+1 Northeastern Region shall have the meaning set forth in
1294+2 the participating utility's most recent report filed
1295+3 pursuant to Section 16-125 of this Act.
1296+4 (4) Seventy-five percent improvement in the total
1297+5 number of customers who exceed the service reliability
1298+6 targets as set forth in subparagraphs (A) through (C) of
1299+7 paragraph (4) of subsection (b) of 83 Ill. Adm. Code
1300+8 411.140 as of May 1, 2011, using 2010 as the baseline year.
1301+9 (5) Reduction in issuance of estimated electric bills:
1302+10 90% improvement for a participating utility other than a
1303+11 combination utility, and 56% improvement for a
1304+12 participating utility that is a combination utility, using
1305+13 a baseline of the average number of estimated bills for
1306+14 the years 2008 through 2010.
1307+15 (6) Consumption on inactive meters: 90% improvement
1308+16 for a participating utility other than a combination
1309+17 utility, and 56% improvement for a participating utility
1310+18 that is a combination utility, using a baseline of the
1311+19 average unbilled kilowatthours for the years 2009 and
1312+20 2010.
1313+21 (7) Unaccounted for energy: 50% improvement for a
1314+22 participating utility other than a combination utility
1315+23 using a baseline of the non-technical line loss
1316+24 unaccounted for energy kilowatthours for the year 2009.
1317+25 (8) Uncollectible expense: reduce uncollectible
1318+26 expense by at least $30,000,000 for a participating
1319+
1320+
1321+
1322+
1323+
1324+ HB4661 Enrolled - 37 - LRB103 37733 SPS 67860 b
1325+
1326+
1327+HB4661 Enrolled- 38 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 38 - LRB103 37733 SPS 67860 b
1328+ HB4661 Enrolled - 38 - LRB103 37733 SPS 67860 b
1329+1 utility other than a combination utility and by at least
1330+2 $3,500,000 for a participating utility that is a
1331+3 combination utility, using a baseline of the average
1332+4 uncollectible expense for the years 2008 through 2010.
1333+5 (9) Opportunities for minority-owned and female-owned
1334+6 business enterprises: design a performance metric
1335+7 regarding the creation of opportunities for minority-owned
1336+8 and female-owned business enterprises consistent with
1337+9 State and federal law using a base performance value of
1338+10 the percentage of the participating utility's capital
1339+11 expenditures that were paid to minority-owned and
1340+12 female-owned business enterprises in 2010.
1341+13 The definitions set forth in 83 Ill. Adm. Code 411.20 as of
1342+14 May 1, 2011 shall be used for purposes of calculating
1343+15 performance under paragraphs (1) through (3.5) of this
1344+16 subsection (f), provided, however, that the participating
1345+17 utility may exclude up to 9 extreme weather event days from
1346+18 such calculation for each year, and provided further that the
1347+19 participating utility shall exclude 9 extreme weather event
1348+20 days when calculating each year of the baseline period to the
1349+21 extent that there are 9 such days in a given year of the
1350+22 baseline period. For purposes of this Section, an extreme
1351+23 weather event day is a 24-hour calendar day (beginning at
1352+24 12:00 a.m. and ending at 11:59 p.m.) during which any weather
1353+25 event (e.g., storm, tornado) caused interruptions for 10,000
1354+26 or more of the participating utility's customers for 3 hours
1355+
1356+
1357+
1358+
1359+
1360+ HB4661 Enrolled - 38 - LRB103 37733 SPS 67860 b
1361+
1362+
1363+HB4661 Enrolled- 39 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 39 - LRB103 37733 SPS 67860 b
1364+ HB4661 Enrolled - 39 - LRB103 37733 SPS 67860 b
1365+1 or more. If there are more than 9 extreme weather event days in
1366+2 a year, then the utility may choose no more than 9 extreme
1367+3 weather event days to exclude, provided that the same extreme
1368+4 weather event days are excluded from each of the calculations
1369+5 performed under paragraphs (1) through (3.5) of this
1370+6 subsection (f).
1371+7 The metrics shall include incremental performance goals
1372+8 for each year of the 10-year period, which shall be designed to
1373+9 demonstrate that the utility is on track to achieve the
1374+10 performance goal in each category at the end of the 10-year
1375+11 period. The utility shall elect when the 10-year period shall
1376+12 commence for the metrics set forth in subparagraphs (1)
1377+13 through (4) and (9) of this subsection (f), provided that it
1378+14 begins no later than 14 months following the date on which the
1379+15 utility begins investing pursuant to subsection (b) of this
1380+16 Section, and when the 10-year period shall commence for the
1381+17 metrics set forth in subparagraphs (5) through (8) of this
1382+18 subsection (f), provided that it begins no later than 14
1383+19 months following the date on which the Commission enters its
1384+20 order approving the utility's Advanced Metering Infrastructure
1385+21 Deployment Plan pursuant to subsection (c) of Section 16-108.6
1386+22 of this Act.
1387+23 The metrics and performance goals set forth in
1388+24 subparagraphs (5) through (8) of this subsection (f) are based
1389+25 on the assumptions that the participating utility may fully
1390+26 implement the technology described in subsection (b) of this
1391+
1392+
1393+
1394+
1395+
1396+ HB4661 Enrolled - 39 - LRB103 37733 SPS 67860 b
1397+
1398+
1399+HB4661 Enrolled- 40 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 40 - LRB103 37733 SPS 67860 b
1400+ HB4661 Enrolled - 40 - LRB103 37733 SPS 67860 b
1401+1 Section, including utilizing the full functionality of such
1402+2 technology and that there is no requirement for personal
1403+3 on-site notification. If the utility is unable to meet the
1404+4 metrics and performance goals set forth in subparagraphs (5)
1405+5 through (8) of this subsection (f) for such reasons, and the
1406+6 Commission so finds after notice and hearing, then the utility
1407+7 shall be excused from compliance, but only to the limited
1408+8 extent achievement of the affected metrics and performance
1409+9 goals was hindered by the less than full implementation.
1410+10 (f-5) The financial penalties applicable to the metrics
1411+11 described in subparagraphs (1) through (8) of subsection (f)
1412+12 of this Section, as applicable, shall be applied through an
1413+13 adjustment to the participating utility's return on equity of
1414+14 no more than a total of 30 basis points in each of the first 3
1415+15 years, of no more than a total of 34 basis points in each of
1416+16 the 3 years thereafter, and of no more than a total of 38 basis
1417+17 points in each of the 4 years thereafter, as follows:
1418+18 (1) With respect to each of the incremental annual
1419+19 performance goals established pursuant to paragraph (1) of
1420+20 subsection (f) of this Section,
1421+21 (A) for each year that a participating utility
1422+22 other than a combination utility does not achieve the
1423+23 annual goal, the participating utility's return on
1424+24 equity shall be reduced as follows: during years 1
1425+25 through 3, by 5 basis points; during years 4 through 6,
1426+26 by 6 basis points; and during years 7 through 10, by 7
1427+
1428+
1429+
1430+
1431+
1432+ HB4661 Enrolled - 40 - LRB103 37733 SPS 67860 b
1433+
1434+
1435+HB4661 Enrolled- 41 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 41 - LRB103 37733 SPS 67860 b
1436+ HB4661 Enrolled - 41 - LRB103 37733 SPS 67860 b
1437+1 basis points; and
1438+2 (B) for each year that a participating utility
1439+3 that is a combination utility does not achieve the
1440+4 annual goal, the participating utility's return on
1441+5 equity shall be reduced as follows: during years 1
1442+6 through 3, by 10 basis points; during years 4 through
1443+7 6, by 12 basis points; and during years 7 through 10,
1444+8 by 14 basis points.
1445+9 (2) With respect to each of the incremental annual
1446+10 performance goals established pursuant to paragraph (2) of
1447+11 subsection (f) of this Section, for each year that the
1448+12 participating utility does not achieve each such goal, the
1449+13 participating utility's return on equity shall be reduced
1450+14 as follows: during years 1 through 3, by 5 basis points;
1451+15 during years 4 through 6, by 6 basis points; and during
1452+16 years 7 through 10, by 7 basis points.
1453+17 (3) With respect to each of the incremental annual
1454+18 performance goals established pursuant to paragraphs (3)
1455+19 and (3.5) of subsection (f) of this Section, for each year
1456+20 that a participating utility other than a combination
1457+21 utility does not achieve both such goals, the
1458+22 participating utility's return on equity shall be reduced
1459+23 as follows: during years 1 through 3, by 5 basis points;
1460+24 during years 4 through 6, by 6 basis points; and during
1461+25 years 7 through 10, by 7 basis points.
1462+26 (4) With respect to each of the incremental annual
1463+
1464+
1465+
1466+
1467+
1468+ HB4661 Enrolled - 41 - LRB103 37733 SPS 67860 b
1469+
1470+
1471+HB4661 Enrolled- 42 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 42 - LRB103 37733 SPS 67860 b
1472+ HB4661 Enrolled - 42 - LRB103 37733 SPS 67860 b
1473+1 performance goals established pursuant to paragraph (4) of
1474+2 subsection (f) of this Section, for each year that the
1475+3 participating utility does not achieve each such goal, the
1476+4 participating utility's return on equity shall be reduced
1477+5 as follows: during years 1 through 3, by 5 basis points;
1478+6 during years 4 through 6, by 6 basis points; and during
1479+7 years 7 through 10, by 7 basis points.
1480+8 (5) With respect to each of the incremental annual
1481+9 performance goals established pursuant to subparagraph (5)
1482+10 of subsection (f) of this Section, for each year that the
1483+11 participating utility does not achieve at least 95% of
1484+12 each such goal, the participating utility's return on
1485+13 equity shall be reduced by 5 basis points for each such
1486+14 unachieved goal.
1487+15 (6) With respect to each of the incremental annual
1488+16 performance goals established pursuant to paragraphs (6),
1489+17 (7), and (8) of subsection (f) of this Section, as
1490+18 applicable, which together measure non-operational
1491+19 customer savings and benefits relating to the
1492+20 implementation of the Advanced Metering Infrastructure
1493+21 Deployment Plan, as defined in Section 16-108.6 of this
1494+22 Act, the performance under each such goal shall be
1495+23 calculated in terms of the percentage of the goal
1496+24 achieved. The percentage of goal achieved for each of the
1497+25 goals shall be aggregated, and an average percentage value
1498+26 calculated, for each year of the 10-year period. If the
1499+
1500+
1501+
1502+
1503+
1504+ HB4661 Enrolled - 42 - LRB103 37733 SPS 67860 b
1505+
1506+
1507+HB4661 Enrolled- 43 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 43 - LRB103 37733 SPS 67860 b
1508+ HB4661 Enrolled - 43 - LRB103 37733 SPS 67860 b
1509+1 utility does not achieve an average percentage value in a
1510+2 given year of at least 95%, the participating utility's
1511+3 return on equity shall be reduced by 5 basis points.
1512+4 The financial penalties shall be applied as described in
1513+5 this subsection (f-5) for the 12-month period in which the
1514+6 deficiency occurred through a separate tariff mechanism, which
1515+7 shall be filed by the utility together with its metrics. In the
1516+8 event the formula rate tariff established pursuant to
1517+9 subsection (c) of this Section terminates, the utility's
1518+10 obligations under subsection (f) of this Section and this
1519+11 subsection (f-5) shall also terminate, provided, however, that
1520+12 the tariff mechanism established pursuant to subsection (f) of
1521+13 this Section and this subsection (f-5) shall remain in effect
1522+14 until any penalties due and owing at the time of such
1523+15 termination are applied.
1524+16 The Commission shall, after notice and hearing, enter an
1525+17 order within 120 days after the metrics are filed approving,
1526+18 or approving with modification, a participating utility's
1527+19 tariff or mechanism to satisfy the metrics set forth in
1528+20 subsection (f) of this Section. On June 1 of each subsequent
1529+21 year, each participating utility shall file a report with the
1530+22 Commission that includes, among other things, a description of
1531+23 how the participating utility performed under each metric and
1532+24 an identification of any extraordinary events that adversely
1533+25 impacted the utility's performance. Whenever a participating
1534+26 utility does not satisfy the metrics required pursuant to
1535+
1536+
1537+
1538+
1539+
1540+ HB4661 Enrolled - 43 - LRB103 37733 SPS 67860 b
1541+
1542+
1543+HB4661 Enrolled- 44 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 44 - LRB103 37733 SPS 67860 b
1544+ HB4661 Enrolled - 44 - LRB103 37733 SPS 67860 b
1545+1 subsection (f) of this Section, the Commission shall, after
1546+2 notice and hearing, enter an order approving financial
1547+3 penalties in accordance with this subsection (f-5). The
1548+4 Commission-approved financial penalties shall be applied
1549+5 beginning with the next rate year. Nothing in this Section
1550+6 shall authorize the Commission to reduce or otherwise obviate
1551+7 the imposition of financial penalties for failing to achieve
1552+8 one or more of the metrics established pursuant to
1553+9 subparagraphs (1) through (4) of subsection (f) of this
1554+10 Section.
1555+11 (g) On or before July 31, 2014, each participating utility
1556+12 shall file a report with the Commission that sets forth the
1557+13 average annual increase in the average amount paid per
1558+14 kilowatthour for residential eligible retail customers,
1559+15 exclusive of the effects of energy efficiency programs,
1560+16 comparing the 12-month period ending May 31, 2012; the
1561+17 12-month period ending May 31, 2013; and the 12-month period
1562+18 ending May 31, 2014. For a participating utility that is a
1563+19 combination utility with more than one rate zone, the weighted
1564+20 average aggregate increase shall be provided. The report shall
1565+21 be filed together with a statement from an independent auditor
1566+22 attesting to the accuracy of the report. The cost of the
1567+23 independent auditor shall be borne by the participating
1568+24 utility and shall not be a recoverable expense. "The average
1569+25 amount paid per kilowatthour" shall be based on the
1570+26 participating utility's tariffed rates actually in effect and
1571+
1572+
1573+
1574+
1575+
1576+ HB4661 Enrolled - 44 - LRB103 37733 SPS 67860 b
1577+
1578+
1579+HB4661 Enrolled- 45 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 45 - LRB103 37733 SPS 67860 b
1580+ HB4661 Enrolled - 45 - LRB103 37733 SPS 67860 b
1581+1 shall not be calculated using any hypothetical rate or
1582+2 adjustments to actual charges (other than as specified for
1583+3 energy efficiency) as an input.
1584+4 In the event that the average annual increase exceeds 2.5%
1585+5 as calculated pursuant to this subsection (g), then Sections
1586+6 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other
1587+7 than this subsection, shall be inoperative as they relate to
1588+8 the utility and its service area as of the date of the report
1589+9 due to be submitted pursuant to this subsection and the
1590+10 utility shall no longer be eligible to annually update the
1591+11 performance-based formula rate tariff pursuant to subsection
1592+12 (d) of this Section. In such event, the then current rates
1593+13 shall remain in effect until such time as new rates are set
1594+14 pursuant to Article IX of this Act, subject to retroactive
1595+15 adjustment, with interest, to reconcile rates charged with
1596+16 actual costs, and the participating utility's voluntary
1597+17 commitments and obligations under subsection (b) of this
1598+18 Section shall immediately terminate, except for the utility's
1599+19 obligation to pay an amount already owed to the fund for
1600+20 training grants pursuant to a Commission order issued under
1601+21 subsection (b) of this Section.
1602+22 In the event that the average annual increase is 2.5% or
1603+23 less as calculated pursuant to this subsection (g), then the
1604+24 performance-based formula rate shall remain in effect as set
1605+25 forth in this Section.
1606+26 For purposes of this Section, the amount per kilowatthour
1607+
1608+
1609+
1610+
1611+
1612+ HB4661 Enrolled - 45 - LRB103 37733 SPS 67860 b
1613+
1614+
1615+HB4661 Enrolled- 46 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 46 - LRB103 37733 SPS 67860 b
1616+ HB4661 Enrolled - 46 - LRB103 37733 SPS 67860 b
1617+1 means the total amount paid for electric service expressed on
1618+2 a per kilowatthour basis, and the total amount paid for
1619+3 electric service includes without limitation amounts paid for
1620+4 supply, transmission, distribution, surcharges, and add-on
1621+5 taxes exclusive of any increases in taxes or new taxes imposed
1622+6 after October 26, 2011 (the effective date of Public Act
1623+7 97-616). For purposes of this Section, "eligible retail
1624+8 customers" shall have the meaning set forth in Section
1625+9 16-111.5 of this Act.
1626+10 The fact that this Section becomes inoperative as set
1627+11 forth in this subsection shall not be construed to mean that
1628+12 the Commission may reexamine or otherwise reopen prudence or
1629+13 reasonableness determinations already made.
1630+14 (h) By December 31, 2017, the Commission shall prepare and
1631+15 file with the General Assembly a report on the infrastructure
1632+16 program and the performance-based formula rate. The report
1633+17 shall include the change in the average amount per
1634+18 kilowatthour paid by residential customers between June 1,
1635+19 2011 and May 31, 2017. If the change in the total average rate
1636+20 paid exceeds 2.5% compounded annually, the Commission shall
1637+21 include in the report an analysis that shows the portion of the
1638+22 change due to the delivery services component and the portion
1639+23 of the change due to the supply component of the rate. The
1640+24 report shall include separate sections for each participating
1641+25 utility.
1642+26 The provisions of Sections 16-108.5, 16-108.6, 16-108.7,
1643+
1644+
1645+
1646+
1647+
1648+ HB4661 Enrolled - 46 - LRB103 37733 SPS 67860 b
1649+
1650+
1651+HB4661 Enrolled- 47 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 47 - LRB103 37733 SPS 67860 b
1652+ HB4661 Enrolled - 47 - LRB103 37733 SPS 67860 b
1653+1 and 16-108.8 of this Act and the provisions of this Section,
1654+2 other than this subsection (h) and subsection (i) of this
1655+3 Section, are inoperative after December 31, 2022 for every
1656+4 participating utility, after which time a participating
1657+5 utility shall no longer be eligible to annually update the
1658+6 performance-based formula rate tariff pursuant to subsection
1659+7 (d) of this Section. At such time, the then current rates shall
1660+8 remain in effect until such time as new rates are set pursuant
1661+9 to Article IX of this Act, subject to retroactive adjustment,
1662+10 with interest, to reconcile rates charged with actual costs.
1663+11 The fact that this Section becomes inoperative as set
1664+12 forth in this subsection shall not be construed to mean that
1665+13 the Commission may reexamine or otherwise reopen prudence or
1666+14 reasonableness determinations already made.
1667+15 (i) The provisions of this subsection (i) are inoperative
1668+16 after December 31, 2027.
1669+17 While an electric a participating utility may use,
1670+18 develop, and maintain broadband systems and the delivery of
1671+19 broadband services, Voice over Internet Protocol (VoIP)
1672+20 voice-over-internet-protocol services, telecommunications
1673+21 services, and cable or and video programming services for use
1674+22 in providing delivery services and Smart Grid functionality or
1675+23 application to its retail customers, an electric including,
1676+24 but not limited to, the installation, implementation and
1677+25 maintenance of Smart Grid electric system upgrades as defined
1678+26 in Section 16-108.6 of this Act, a participating utility is
1679+
1680+
1681+
1682+
1683+
1684+ HB4661 Enrolled - 47 - LRB103 37733 SPS 67860 b
1685+
1686+
1687+HB4661 Enrolled- 48 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 48 - LRB103 37733 SPS 67860 b
1688+ HB4661 Enrolled - 48 - LRB103 37733 SPS 67860 b
1689+1 prohibited from providing to its retail customers broadband
1690+2 services, Voice over Internet Protocol (VoIP)
1691+3 voice-over-internet-protocol services, telecommunications
1692+4 services, or cable or video programming services, unless they
1693+5 are part of a service directly related to delivery services or
1694+6 Smart Grid functionality or applications as defined in Section
1695+7 16-108.6 of this Act, and from recovering the costs of such
1696+8 offerings from retail customers. The prohibition set forth in
1697+9 this subsection (i) is inoperative after December 31, 2027 for
1698+10 every participating utility.
1699+11 Furthermore, an electric utility in a county with a
1700+12 population of 3,000,000 or more shall not authorize any other
1701+13 person or grant any other person the right, by agreement,
1702+14 lease, license, or otherwise, to access, control, use, or
1703+15 operate that electric utility's infrastructure, facilities, or
1704+16 assets of any kind or to deliver or provide to that electric
1705+17 utility's customers or any other person's customers, broadband
1706+18 services, Voice over Internet Protocol (VoIP) services,
1707+19 telecommunications services, or cable or video programming
1708+20 services.
1709+21 However, notwithstanding the prohibitions set forth in
1710+22 this Section, an electric utility in a county with a
1711+23 population of 3,000,000 or more may authorize or grant another
1712+24 person the right to access or use the electric utility's
1713+25 infrastructure, facilities, or assets, including, but not
1714+26 limited to, middle mile infrastructure, to facilitate the
1715+
1716+
1717+
1718+
1719+
1720+ HB4661 Enrolled - 48 - LRB103 37733 SPS 67860 b
1721+
1722+
1723+HB4661 Enrolled- 49 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 49 - LRB103 37733 SPS 67860 b
1724+ HB4661 Enrolled - 49 - LRB103 37733 SPS 67860 b
1725+1 delivery of broadband services to Illinois residential and
1726+2 commercial customers on the condition that the access to and
1727+3 use of that electric utility's infrastructure, facilities, and
1728+4 assets (A) be granted on a non-discriminatory, non-exclusive,
1729+5 and competitively neutral basis; and (B) comply with all other
1730+6 State and federal laws, rules, and regulations, including, but
1731+7 not limited to, all applicable safety codes and requirements.
1732+8 If there is any dispute regarding the terms, rates, or
1733+9 conditions of access to or use of that electric utility's
1734+10 infrastructure, facilities, and assets to facilitate the
1735+11 delivery of broadband services to Illinois residential and
1736+12 commercial customers, the Commission, upon the petition of any
1737+13 party, shall hear and decide the dispute in accordance with
1738+14 the Commission's Rules of Practice (83 Ill. Adm. Code Part
1739+15 200).
1740+16 Nothing in this amendatory Act of the 103rd General
1741+17 Assembly shall be construed to authorize any electric utility
1742+18 in a county with a population of 3,000,000 or more to consent
1743+19 to, or grant to, any other person by agreement, lease,
1744+20 license, or otherwise, the right to access, occupy, or use any
1745+21 infrastructure, facility, easement, or asset of any kind not
1746+22 owned by the electric utility.
1747+23 Nothing in this amendatory Act of the 103rd General
1748+24 Assembly shall be construed to alter or diminish the rights or
1749+25 obligations of any person under, nor shall it be deemed to
1750+26 conflict with, the federal Pole Attachment Act (47 U.S.C.
1751+
1752+
1753+
1754+
1755+
1756+ HB4661 Enrolled - 49 - LRB103 37733 SPS 67860 b
1757+
1758+
1759+HB4661 Enrolled- 50 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 50 - LRB103 37733 SPS 67860 b
1760+ HB4661 Enrolled - 50 - LRB103 37733 SPS 67860 b
1761+1 224).
1762+2 As used in this subsection (i):
1763+3 "Broadband services" means the services that are used to
1764+4 deliver to subscribers a high-speed service connection to the
1765+5 public Internet that is capable of supporting, in at least one
1766+6 direction, a speed in excess of 200 kilobits per second (kbps)
1767+7 to the network demarcation point at the subscribers' premises.
1768+8 "Electric utility" has the meaning set forth in Section
1769+9 16-102.
1770+10 "Middle mile infrastructure" has the meaning provided in
1771+11 Section 60401 of the federal Infrastructure Investment and
1772+12 Jobs Act (47 U.S.C. 1741).
1773+13 (j) Nothing in this Section is intended to legislatively
1774+14 overturn the opinion issued in Commonwealth Edison Co. v. Ill.
1775+15 Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137,
1776+16 1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App.
1777+17 Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be
1778+18 construed as creating a contract between the General Assembly
1779+19 and the participating utility, and shall not establish a
1780+20 property right in the participating utility.
1781+21 (k) The changes made in subsections (c) and (d) of this
1782+22 Section by Public Act 98-15 are intended to be a restatement
1783+23 and clarification of existing law, and intended to give
1784+24 binding effect to the provisions of House Resolution 1157
1785+25 adopted by the House of Representatives of the 97th General
1786+26 Assembly and Senate Resolution 821 adopted by the Senate of
1787+
1788+
1789+
1790+
1791+
1792+ HB4661 Enrolled - 50 - LRB103 37733 SPS 67860 b
1793+
1794+
1795+HB4661 Enrolled- 51 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 51 - LRB103 37733 SPS 67860 b
1796+ HB4661 Enrolled - 51 - LRB103 37733 SPS 67860 b
1797+1 the 97th General Assembly that are reflected in paragraph (3)
1798+2 of this subsection. In addition, Public Act 98-15 preempts and
1799+3 supersedes any final Commission orders entered in Docket Nos.
1800+4 11-0721, 12-0001, 12-0293, and 12-0321 to the extent
1801+5 inconsistent with the amendatory language added to subsections
1802+6 (c) and (d).
1803+7 (1) No earlier than 5 business days after May 22, 2013
1804+8 (the effective date of Public Act 98-15), each
1805+9 participating utility shall file any tariff changes
1806+10 necessary to implement the amendatory language set forth
1807+11 in subsections (c) and (d) of this Section by Public Act
1808+12 98-15 and a revised revenue requirement under the
1809+13 participating utility's performance-based formula rate.
1810+14 The Commission shall enter a final order approving such
1811+15 tariff changes and revised revenue requirement within 21
1812+16 days after the participating utility's filing.
1813+17 (2) Notwithstanding anything that may be to the
1814+18 contrary, a participating utility may file a tariff to
1815+19 retroactively recover its previously unrecovered actual
1816+20 costs of delivery service that are no longer subject to
1817+21 recovery through a reconciliation adjustment under
1818+22 subsection (d) of this Section. This retroactive recovery
1819+23 shall include any derivative adjustments resulting from
1820+24 the changes to subsections (c) and (d) of this Section by
1821+25 Public Act 98-15. Such tariff shall allow the utility to
1822+26 assess, on current customer bills over a period of 12
1823+
1824+
1825+
1826+
1827+
1828+ HB4661 Enrolled - 51 - LRB103 37733 SPS 67860 b
1829+
1830+
1831+HB4661 Enrolled- 52 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 52 - LRB103 37733 SPS 67860 b
1832+ HB4661 Enrolled - 52 - LRB103 37733 SPS 67860 b
1833+1 monthly billing periods, a charge or credit related to
1834+2 those unrecovered costs with interest at the utility's
1835+3 weighted average cost of capital during the period in
1836+4 which those costs were unrecovered. A participating
1837+5 utility may file a tariff that implements a retroactive
1838+6 charge or credit as described in this paragraph for
1839+7 amounts not otherwise included in the tariff filing
1840+8 provided for in paragraph (1) of this subsection (k). The
1841+9 Commission shall enter a final order approving such tariff
1842+10 within 21 days after the participating utility's filing.
1843+11 (3) The tariff changes described in paragraphs (1) and
1844+12 (2) of this subsection (k) shall relate only to, and be
1845+13 consistent with, the following provisions of Public Act
1846+14 98-15: paragraph (2) of subsection (c) regarding year-end
1847+15 capital structure, subparagraph (D) of paragraph (4) of
1848+16 subsection (c) regarding pension assets, and subsection
1849+17 (d) regarding the reconciliation components related to
1850+18 year-end rate base and interest calculated at a rate equal
1851+19 to the utility's weighted average cost of capital.
1852+20 (4) Nothing in this subsection is intended to effect a
1853+21 dismissal of or otherwise affect an appeal from any final
1854+22 Commission orders entered in Docket Nos. 11-0721, 12-0001,
1855+23 12-0293, and 12-0321 other than to the extent of the
1856+24 amendatory language contained in subsections (c) and (d)
1857+25 of this Section of Public Act 98-15.
1858+26 (l) Each participating utility shall be deemed to have
1859+
1860+
1861+
1862+
1863+
1864+ HB4661 Enrolled - 52 - LRB103 37733 SPS 67860 b
1865+
1866+
1867+HB4661 Enrolled- 53 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 53 - LRB103 37733 SPS 67860 b
1868+ HB4661 Enrolled - 53 - LRB103 37733 SPS 67860 b
1869+1 been in full compliance with all requirements of subsection
1870+2 (b) of this Section, subsection (c) of this Section, Section
1871+3 16-108.6 of this Act, and all Commission orders entered
1872+4 pursuant to Sections 16-108.5 and 16-108.6 of this Act, up to
1873+5 and including May 22, 2013 (the effective date of Public Act
1874+6 98-15). The Commission shall not undertake any investigation
1875+7 of such compliance and no penalty shall be assessed or adverse
1876+8 action taken against a participating utility for noncompliance
1877+9 with Commission orders associated with subsection (b) of this
1878+10 Section, subsection (c) of this Section, and Section 16-108.6
1879+11 of this Act prior to such date. Each participating utility
1880+12 other than a combination utility shall be permitted, without
1881+13 penalty, a period of 12 months after such effective date to
1882+14 take actions required to ensure its infrastructure investment
1883+15 program is in compliance with subsection (b) of this Section
1884+16 and with Section 16-108.6 of this Act. Provided further, the
1885+17 following subparagraphs shall apply to a participating utility
1886+18 other than a combination utility:
1887+19 (A) if the Commission has initiated a proceeding
1888+20 pursuant to subsection (e) of Section 16-108.6 of this Act
1889+21 that is pending as of May 22, 2013 (the effective date of
1890+22 Public Act 98-15), then the order entered in such
1891+23 proceeding shall, after notice and hearing, accelerate the
1892+24 commencement of the meter deployment schedule approved in
1893+25 the final Commission order on rehearing entered in Docket
1894+26 No. 12-0298;
1895+
1896+
1897+
1898+
1899+
1900+ HB4661 Enrolled - 53 - LRB103 37733 SPS 67860 b
1901+
1902+
1903+HB4661 Enrolled- 54 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 54 - LRB103 37733 SPS 67860 b
1904+ HB4661 Enrolled - 54 - LRB103 37733 SPS 67860 b
1905+1 (B) if the Commission has entered an order pursuant to
1906+2 subsection (e) of Section 16-108.6 of this Act prior to
1907+3 May 22, 2013 (the effective date of Public Act 98-15) that
1908+4 does not accelerate the commencement of the meter
1909+5 deployment schedule approved in the final Commission order
1910+6 on rehearing entered in Docket No. 12-0298, then the
1911+7 utility shall file with the Commission, within 45 days
1912+8 after such effective date, a plan for accelerating the
1913+9 commencement of the utility's meter deployment schedule
1914+10 approved in the final Commission order on rehearing
1915+11 entered in Docket No. 12-0298; the Commission shall reopen
1916+12 the proceeding in which it entered its order pursuant to
1917+13 subsection (e) of Section 16-108.6 of this Act and shall,
1918+14 after notice and hearing, enter an amendatory order that
1919+15 approves or approves as modified such accelerated plan
1920+16 within 90 days after the utility's filing; or
1921+17 (C) if the Commission has not initiated a proceeding
1922+18 pursuant to subsection (e) of Section 16-108.6 of this Act
1923+19 prior to May 22, 2013 (the effective date of Public Act
1924+20 98-15), then the utility shall file with the Commission,
1925+21 within 45 days after such effective date, a plan for
1926+22 accelerating the commencement of the utility's meter
1927+23 deployment schedule approved in the final Commission order
1928+24 on rehearing entered in Docket No. 12-0298 and the
1929+25 Commission shall, after notice and hearing, approve or
1930+26 approve as modified such plan within 90 days after the
1931+
1932+
1933+
1934+
1935+
1936+ HB4661 Enrolled - 54 - LRB103 37733 SPS 67860 b
1937+
1938+
1939+HB4661 Enrolled- 55 -LRB103 37733 SPS 67860 b HB4661 Enrolled - 55 - LRB103 37733 SPS 67860 b
1940+ HB4661 Enrolled - 55 - LRB103 37733 SPS 67860 b
1941+1 utility's filing.
1942+2 Any schedule for meter deployment approved by the
1943+3 Commission pursuant to this subsection (l) shall take into
1944+4 consideration procurement times for meters and other equipment
1945+5 and operational issues. Nothing in Public Act 98-15 shall
1946+6 shorten or extend the end dates for the 5-year or 10-year
1947+7 periods set forth in subsection (b) of this Section or Section
1948+8 16-108.6 of this Act. Nothing in this subsection is intended
1949+9 to address whether a participating utility has, or has not,
1950+10 satisfied any or all of the metrics and performance goals
1951+11 established pursuant to subsection (f) of this Section.
1952+12 (m) The provisions of Public Act 98-15 are severable under
1953+13 Section 1.31 of the Statute on Statutes.
1954+14 (Source: P.A. 102-1031, eff. 5-27-22; 103-154, eff. 6-30-23.)
1955+
1956+
1957+
1958+
1959+
1960+ HB4661 Enrolled - 55 - LRB103 37733 SPS 67860 b