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Illinois House Bill HB5539

Illinois 2023-2024 Regular Session

Illinois House Bill HB5539 Compare Versions

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1-Public Act 103-0613
21 HB5539 EnrolledLRB103 38494 CES 68630 b HB5539 Enrolled LRB103 38494 CES 68630 b
32 HB5539 Enrolled LRB103 38494 CES 68630 b
4-AN ACT concerning utilities.
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 8-103, 8-103B, and 8-104 as follows:
9-(220 ILCS 5/8-103)
10-Sec. 8-103. Energy efficiency and demand-response
11-measures.
12-(a) It is the policy of the State that electric utilities
13-are required to use cost-effective energy efficiency and
14-demand-response measures to reduce delivery load. Requiring
15-investment in cost-effective energy efficiency and
16-demand-response measures will reduce direct and indirect costs
17-to consumers by decreasing environmental impacts and by
18-avoiding or delaying the need for new generation,
19-transmission, and distribution infrastructure. It serves the
20-public interest to allow electric utilities to recover costs
21-for reasonably and prudently incurred expenses for energy
22-efficiency and demand-response measures. As used in this
23-Section, "cost-effective" means that the measures satisfy the
24-total resource cost test. The low-income measures described in
25-subsection (f)(4) of this Section shall not be required to
26-meet the total resource cost test. For purposes of this
3+1 AN ACT concerning utilities.
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 8-103, 8-103B, and 8-104 as follows:
8+6 (220 ILCS 5/8-103)
9+7 Sec. 8-103. Energy efficiency and demand-response
10+8 measures.
11+9 (a) It is the policy of the State that electric utilities
12+10 are required to use cost-effective energy efficiency and
13+11 demand-response measures to reduce delivery load. Requiring
14+12 investment in cost-effective energy efficiency and
15+13 demand-response measures will reduce direct and indirect costs
16+14 to consumers by decreasing environmental impacts and by
17+15 avoiding or delaying the need for new generation,
18+16 transmission, and distribution infrastructure. It serves the
19+17 public interest to allow electric utilities to recover costs
20+18 for reasonably and prudently incurred expenses for energy
21+19 efficiency and demand-response measures. As used in this
22+20 Section, "cost-effective" means that the measures satisfy the
23+21 total resource cost test. The low-income measures described in
24+22 subsection (f)(4) of this Section shall not be required to
25+23 meet the total resource cost test. For purposes of this
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33-Section, the terms "energy-efficiency", "demand-response",
34-"electric utility", and "total resource cost test" shall have
35-the meanings set forth in the Illinois Power Agency Act. For
36-purposes of this Section, the amount per kilowatthour means
37-the total amount paid for electric service expressed on a per
38-kilowatthour basis. For purposes of this Section, the total
39-amount paid for electric service includes without limitation
40-estimated amounts paid for supply, transmission, distribution,
41-surcharges, and add-on-taxes.
42-(a-5) This Section applies to electric utilities serving
43-500,000 or less but more than 200,000 retail customers in this
44-State. Through December 31, 2017, this Section also applies to
45-electric utilities serving more than 500,000 retail customers
46-in the State.
47-(b) Electric utilities shall implement cost-effective
48-energy efficiency measures to meet the following incremental
49-annual energy savings goals:
50-(1) 0.2% of energy delivered in the year commencing
51-June 1, 2008;
52-(2) 0.4% of energy delivered in the year commencing
53-June 1, 2009;
54-(3) 0.6% of energy delivered in the year commencing
55-June 1, 2010;
56-(4) 0.8% of energy delivered in the year commencing
57-June 1, 2011;
58-(5) 1% of energy delivered in the year commencing June
59-
60-
61-1, 2012;
62-(6) 1.4% of energy delivered in the year commencing
63-June 1, 2013;
64-(7) 1.8% of energy delivered in the year commencing
65-June 1, 2014; and
66-(8) 2% of energy delivered in the year commencing June
67-1, 2015 and each year thereafter.
68-Electric utilities may comply with this subsection (b) by
69-meeting the annual incremental savings goal in the applicable
70-year or by showing that the total cumulative annual savings
71-within a 3-year planning period associated with measures
72-implemented after May 31, 2014 was equal to the sum of each
73-annual incremental savings requirement from May 31, 2014
74-through the end of the applicable year.
75-(c) Electric utilities shall implement cost-effective
76-demand-response measures to reduce peak demand by 0.1% over
77-the prior year for eligible retail customers, as defined in
78-Section 16-111.5 of this Act, and for customers that elect
79-hourly service from the utility pursuant to Section 16-107 of
80-this Act, provided those customers have not been declared
81-competitive. This requirement commences June 1, 2008 and
82-continues for 10 years.
83-(d) Notwithstanding the requirements of subsections (b)
84-and (c) of this Section, an electric utility shall reduce the
85-amount of energy efficiency and demand-response measures
86-implemented over a 3-year planning period by an amount
87-
88-
89-necessary to limit the estimated average annual increase in
90-the amounts paid by retail customers in connection with
91-electric service due to the cost of those measures to:
92-(1) in 2008, no more than 0.5% of the amount paid per
93-kilowatthour by those customers during the year ending May
94-31, 2007;
95-(2) in 2009, the greater of an additional 0.5% of the
96-amount paid per kilowatthour by those customers during the
97-year ending May 31, 2008 or 1% of the amount paid per
98-kilowatthour by those customers during the year ending May
99-31, 2007;
100-(3) in 2010, the greater of an additional 0.5% of the
101-amount paid per kilowatthour by those customers during the
102-year ending May 31, 2009 or 1.5% of the amount paid per
103-kilowatthour by those customers during the year ending May
104-31, 2007;
105-(4) in 2011, the greater of an additional 0.5% of the
106-amount paid per kilowatthour by those customers during the
107-year ending May 31, 2010 or 2% of the amount paid per
108-kilowatthour by those customers during the year ending May
109-31, 2007; and
110-(5) thereafter, the amount of energy efficiency and
111-demand-response measures implemented for any single year
112-shall be reduced by an amount necessary to limit the
113-estimated average net increase due to the cost of these
114-measures included in the amounts paid by eligible retail
115-
116-
117-customers in connection with electric service to no more
118-than the greater of 2.015% of the amount paid per
119-kilowatthour by those customers during the year ending May
120-31, 2007 or the incremental amount per kilowatthour paid
121-for these measures in 2011.
122-No later than June 30, 2011, the Commission shall review
123-the limitation on the amount of energy efficiency and
124-demand-response measures implemented pursuant to this Section
125-and report to the General Assembly its findings as to whether
126-that limitation unduly constrains the procurement of energy
127-efficiency and demand-response measures.
128-(e) Electric utilities shall be responsible for overseeing
129-the design, development, and filing of energy efficiency and
130-demand-response plans with the Commission. Electric utilities
131-shall implement 100% of the demand-response measures in the
132-plans. Electric utilities shall implement 75% of the energy
133-efficiency measures approved by the Commission, and may, as
134-part of that implementation, outsource various aspects of
135-program development and implementation. The remaining 25% of
136-those energy efficiency measures approved by the Commission
137-shall be implemented by the Department of Commerce and
138-Economic Opportunity, and must be designed in conjunction with
139-the utility and the filing process. The Department may
140-outsource development and implementation of energy efficiency
141-measures. A minimum of 10% of the entire portfolio of
142-cost-effective energy efficiency measures shall be procured
143-
144-
145-from units of local government, municipal corporations, school
146-districts, public institutions of higher education, and
147-community college districts. The Department shall coordinate
148-the implementation of these measures.
149-The apportionment of the dollars to cover the costs to
150-implement the Department's share of the portfolio of energy
151-efficiency measures shall be made to the Department once the
152-Department has executed rebate agreements, grants, or
153-contracts for energy efficiency measures and provided
154-supporting documentation for those rebate agreements, grants,
155-and contracts to the utility. The Department is authorized to
156-adopt any rules necessary and prescribe procedures in order to
157-ensure compliance by applicants in carrying out the purposes
158-of rebate agreements for energy efficiency measures
159-implemented by the Department made under this Section.
160-The details of the measures implemented by the Department
161-shall be submitted by the Department to the Commission in
162-connection with the utility's filing regarding the energy
163-efficiency and demand-response measures that the utility
164-implements.
165-A utility providing approved energy efficiency and
166-demand-response measures in the State shall be permitted to
167-recover costs of those measures through an automatic
168-adjustment clause tariff filed with and approved by the
169-Commission. The tariff shall be established outside the
170-context of a general rate case. Each year the Commission shall
171-
172-
173-initiate a review to reconcile any amounts collected with the
174-actual costs and to determine the required adjustment to the
175-annual tariff factor to match annual expenditures.
176-Each utility shall include, in its recovery of costs, the
177-costs estimated for both the utility's and the Department's
178-implementation of energy efficiency and demand-response
179-measures. Costs collected by the utility for measures
180-implemented by the Department shall be submitted to the
181-Department pursuant to Section 605-323 of the Civil
182-Administrative Code of Illinois, shall be deposited into the
183-Energy Efficiency Portfolio Standards Fund, and shall be used
184-by the Department solely for the purpose of implementing these
185-measures. A utility shall not be required to advance any
186-moneys to the Department but only to forward such funds as it
187-has collected. The Department shall report to the Commission
188-on an annual basis regarding the costs actually incurred by
189-the Department in the implementation of the measures. Any
190-changes to the costs of energy efficiency measures as a result
191-of plan modifications shall be appropriately reflected in
192-amounts recovered by the utility and turned over to the
193-Department.
194-The portfolio of measures, administered by both the
195-utilities and the Department, shall, in combination, be
196-designed to achieve the annual savings targets described in
197-subsections (b) and (c) of this Section, as modified by
198-subsection (d) of this Section.
199-
200-
201-The utility and the Department shall agree upon a
202-reasonable portfolio of measures and determine the measurable
203-corresponding percentage of the savings goals associated with
204-measures implemented by the utility or Department.
205-No utility shall be assessed a penalty under subsection
206-(f) of this Section for failure to make a timely filing if that
207-failure is the result of a lack of agreement with the
208-Department with respect to the allocation of responsibilities
209-or related costs or target assignments. In that case, the
210-Department and the utility shall file their respective plans
211-with the Commission and the Commission shall determine an
212-appropriate division of measures and programs that meets the
213-requirements of this Section.
214-If the Department is unable to meet incremental annual
215-performance goals for the portion of the portfolio implemented
216-by the Department, then the utility and the Department shall
217-jointly submit a modified filing to the Commission explaining
218-the performance shortfall and recommending an appropriate
219-course going forward, including any program modifications that
220-may be appropriate in light of the evaluations conducted under
221-item (7) of subsection (f) of this Section. In this case, the
222-utility obligation to collect the Department's costs and turn
223-over those funds to the Department under this subsection (e)
224-shall continue only if the Commission approves the
225-modifications to the plan proposed by the Department.
226-(f) No later than November 15, 2007, each electric utility
227-
228-
229-shall file an energy efficiency and demand-response plan with
230-the Commission to meet the energy efficiency and
231-demand-response standards for 2008 through 2010. No later than
232-October 1, 2010, each electric utility shall file an energy
233-efficiency and demand-response plan with the Commission to
234-meet the energy efficiency and demand-response standards for
235-2011 through 2013. Every 3 years thereafter, each electric
236-utility shall file, no later than September 1, an energy
237-efficiency and demand-response plan with the Commission. If a
238-utility does not file such a plan by September 1 of an
239-applicable year, it shall face a penalty of $100,000 per day
240-until the plan is filed. Each utility's plan shall set forth
241-the utility's proposals to meet the utility's portion of the
242-energy efficiency standards identified in subsection (b) and
243-the demand-response standards identified in subsection (c) of
244-this Section as modified by subsections (d) and (e), taking
245-into account the unique circumstances of the utility's service
246-territory. The Commission shall seek public comment on the
247-utility's plan and shall issue an order approving or
248-disapproving each plan within 5 months after its submission.
249-If the Commission disapproves a plan, the Commission shall,
250-within 30 days, describe in detail the reasons for the
251-disapproval and describe a path by which the utility may file a
252-revised draft of the plan to address the Commission's concerns
253-satisfactorily. If the utility does not refile with the
254-Commission within 60 days, the utility shall be subject to
255-
256-
257-penalties at a rate of $100,000 per day until the plan is
258-filed. This process shall continue, and penalties shall
259-accrue, until the utility has successfully filed a portfolio
260-of energy efficiency and demand-response measures. Penalties
261-shall be deposited into the Energy Efficiency Trust Fund. In
262-submitting proposed energy efficiency and demand-response
263-plans and funding levels to meet the savings goals adopted by
264-this Act the utility shall:
265-(1) Demonstrate that its proposed energy efficiency
266-and demand-response measures will achieve the requirements
267-that are identified in subsections (b) and (c) of this
268-Section, as modified by subsections (d) and (e).
269-(2) Present specific proposals to implement new
270-building and appliance standards that have been placed
271-into effect.
272-(3) Present estimates of the total amount paid for
273-electric service expressed on a per kilowatthour basis
274-associated with the proposed portfolio of measures
275-designed to meet the requirements that are identified in
276-subsections (b) and (c) of this Section, as modified by
277-subsections (d) and (e).
278-(4) Coordinate with the Department to present a
279-portfolio of energy efficiency measures proportionate to
280-the share of total annual utility revenues in Illinois
281-from households at or below 150% of the poverty level. The
282-energy efficiency programs shall be targeted to households
283-
284-
285-with incomes at or below 80% of area median income.
286-(5) Demonstrate that its overall portfolio of energy
287-efficiency and demand-response measures, not including
288-programs covered by item (4) of this subsection (f), are
289-cost-effective using the total resource cost test and
290-represent a diverse cross-section of opportunities for
291-customers of all rate classes to participate in the
292-programs.
293-(6) Include a proposed cost-recovery tariff mechanism
294-to fund the proposed energy efficiency and demand-response
295-measures and to ensure the recovery of the prudently and
296-reasonably incurred costs of Commission-approved programs.
297-(7) Provide for an annual independent evaluation of
298-the performance of the cost-effectiveness of the utility's
299-portfolio of measures and the Department's portfolio of
300-measures, as well as a full review of the 3-year results of
301-the broader net program impacts and, to the extent
302-practical, for adjustment of the measures on a
303-going-forward basis as a result of the evaluations. The
304-resources dedicated to evaluation shall not exceed 3% of
305-portfolio resources in any given year.
306-(g) No more than 3% of energy efficiency and
307-demand-response program revenue may be allocated for
308-demonstration of breakthrough equipment and devices.
309-(h) This Section does not apply to an electric utility
310-that on December 31, 2005 provided electric service to fewer
311-
312-
313-than 100,000 customers in Illinois.
314-(i) If, after 2 years, an electric utility fails to meet
315-the efficiency standard specified in subsection (b) of this
316-Section, as modified by subsections (d) and (e), it shall make
317-a contribution to the Low-Income Home Energy Assistance
318-Program. The combined total liability for failure to meet the
319-goal shall be $1,000,000, which shall be assessed as follows:
320-a large electric utility shall pay $665,000, and a medium
321-electric utility shall pay $335,000. If, after 3 years, an
322-electric utility fails to meet the efficiency standard
323-specified in subsection (b) of this Section, as modified by
324-subsections (d) and (e), it shall make a contribution to the
325-Low-Income Home Energy Assistance Program. The combined total
326-liability for failure to meet the goal shall be $1,000,000,
327-which shall be assessed as follows: a large electric utility
328-shall pay $665,000, and a medium electric utility shall pay
329-$335,000. In addition, the responsibility for implementing the
330-energy efficiency measures of the utility making the payment
331-shall be transferred to the Illinois Power Agency if, after 3
332-years, or in any subsequent 3-year period, the utility fails
333-to meet the efficiency standard specified in subsection (b) of
334-this Section, as modified by subsections (d) and (e). The
335-Agency shall implement a competitive procurement program to
336-procure resources necessary to meet the standards specified in
337-this Section as modified by subsections (d) and (e), with
338-costs for those resources to be recovered in the same manner as
339-
340-
341-products purchased through the procurement plan as provided in
342-Section 16-111.5. The Director shall implement this
343-requirement in connection with the procurement plan as
344-provided in Section 16-111.5.
345-For purposes of this Section, (i) a "large electric
346-utility" is an electric utility that, on December 31, 2005,
347-served more than 2,000,000 electric customers in Illinois;
348-(ii) a "medium electric utility" is an electric utility that,
349-on December 31, 2005, served 2,000,000 or fewer but more than
350-100,000 electric customers in Illinois; and (iii) Illinois
351-electric utilities that are affiliated by virtue of a common
352-parent company are considered a single electric utility.
353-(j) If, after 3 years, or any subsequent 3-year period,
354-the Department fails to implement the Department's share of
355-energy efficiency measures required by the standards in
356-subsection (b), then the Illinois Power Agency may assume
357-responsibility for and control of the Department's share of
358-the required energy efficiency measures. The Agency shall
359-implement a competitive procurement program to procure
360-resources necessary to meet the standards specified in this
361-Section, with the costs of these resources to be recovered in
362-the same manner as provided for the Department in this
363-Section.
364-(k) No electric utility shall be deemed to have failed to
365-meet the energy efficiency standards to the extent any such
366-failure is due to a failure of the Department or the Agency.
367-
368-
369-(l)(1) The energy efficiency and demand-response plans of
370-electric utilities serving more than 500,000 retail customers
371-in the State that were approved by the Commission on or before
372-the effective date of this amendatory Act of the 99th General
373-Assembly for the period June 1, 2014 through May 31, 2017 shall
374-continue to be in force and effect through December 31, 2017 so
375-that the energy efficiency programs set forth in those plans
376-continue to be offered during the period June 1, 2017 through
377-December 31, 2017. Each such utility is authorized to
378-increase, on a pro rata basis, the energy savings goals and
379-budgets approved in its plan to reflect the additional 7
380-months of the plan's operation, provided that such increase
381-shall also incorporate reductions to goals and budgets to
382-reflect the proportion of the utility's load attributable to
383-customers who are exempt from this Section under subsection
384-(m) of this Section.
385-(2) If an electric utility serving more than 500,000
386-retail customers in the State filed with the Commission, under
387-subsection (f) of this Section, its proposed energy efficiency
388-and demand-response plan for the period June 1, 2017 through
389-May 31, 2020, and the Commission has not yet entered its final
390-order approving such plan on or before the effective date of
391-this amendatory Act of the 99th General Assembly, then the
392-utility shall file a notice of withdrawal with the Commission,
393-following such effective date, to withdraw the proposed energy
394-efficiency and demand-response plan. Upon receipt of such
395-
396-
397-notice, the Commission shall dismiss with prejudice any docket
398-that had been initiated to investigate such plan, and the plan
399-and the record related thereto shall not be the subject of any
400-further hearing, investigation, or proceeding of any kind.
401-(3) For those electric utilities that serve more than
402-500,000 retail customers in the State, this amendatory Act of
403-the 99th General Assembly preempts and supersedes any orders
404-entered by the Commission that approved such utilities' energy
405-efficiency and demand response plans for the period commencing
406-June 1, 2017 and ending May 31, 2020. Any such orders shall be
407-void, and the provisions of paragraph (1) of this subsection
408-(l) shall apply.
409-(m) Notwithstanding anything to the contrary, after May
410-31, 2017, this Section does not apply to any retail customers
411-of an electric utility that serves more than 3,000,000 retail
412-customers in the State and whose total highest 30 minute
413-demand was more than 10,000 kilowatts, or any retail customers
414-of an electric utility that serves less than 3,000,000 retail
415-customers but more than 500,000 retail customers in the State
416-and whose total highest 15 minute demand was more than 10,000
417-kilowatts. For purposes of this subsection (m), "retail
418-customer" has the meaning set forth in Section 16-102 of this
419-Act. The criteria for determining whether this subsection (m)
420-is applicable to a retail customer shall be based on the 12
421-consecutive billing periods prior to the start of the first
422-year of each such multi-year plan.
423-
424-
425-(Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17.)
426-(220 ILCS 5/8-103B)
427-Sec. 8-103B. Energy efficiency and demand-response
428-measures.
429-(a) It is the policy of the State that electric utilities
430-are required to use cost-effective energy efficiency and
431-demand-response measures to reduce delivery load. Requiring
432-investment in cost-effective energy efficiency and
433-demand-response measures will reduce direct and indirect costs
434-to consumers by decreasing environmental impacts and by
435-avoiding or delaying the need for new generation,
436-transmission, and distribution infrastructure. It serves the
437-public interest to allow electric utilities to recover costs
438-for reasonably and prudently incurred expenditures for energy
439-efficiency and demand-response measures. As used in this
440-Section, "cost-effective" means that the measures satisfy the
441-total resource cost test. The low-income measures described in
442-subsection (c) of this Section shall not be required to meet
443-the total resource cost test. For purposes of this Section,
444-the terms "energy-efficiency", "demand-response", "electric
445-utility", and "total resource cost test" have the meanings set
446-forth in the Illinois Power Agency Act. "Black, indigenous,
447-and people of color" and "BIPOC" means people who are members
448-of the groups described in subparagraphs (a) through (e) of
449-paragraph (A) of subsection (1) of Section 2 of the Business
450-
451-
452-Enterprise for Minorities, Women, and Persons with
453-Disabilities Act.
454-(a-5) This Section applies to electric utilities serving
455-more than 500,000 retail customers in the State for those
456-multi-year plans commencing after December 31, 2017.
457-(b) For purposes of this Section, electric utilities
458-subject to this Section that serve more than 3,000,000 retail
459-customers in the State shall be deemed to have achieved a
460-cumulative persisting annual savings of 6.6% from energy
461-efficiency measures and programs implemented during the period
462-beginning January 1, 2012 and ending December 31, 2017, which
463-percent is based on the deemed average weather normalized
464-sales of electric power and energy during calendar years 2014,
465-2015, and 2016 of 88,000,000 MWhs. For the purposes of this
466-subsection (b) and subsection (b-5), the 88,000,000 MWhs of
467-deemed electric power and energy sales shall be reduced by the
468-number of MWhs equal to the sum of the annual consumption of
469-customers that have opted out of subsections (a) through (j)
470-of this Section under paragraph (1) of subsection (l) of this
471-Section, as averaged across the calendar years 2014, 2015, and
472-2016. After 2017, the deemed value of cumulative persisting
473-annual savings from energy efficiency measures and programs
474-implemented during the period beginning January 1, 2012 and
475-ending December 31, 2017, shall be reduced each year, as
476-follows, and the applicable value shall be applied to and
477-count toward the utility's achievement of the cumulative
478-
479-
480-persisting annual savings goals set forth in subsection (b-5):
481-(1) 5.8% deemed cumulative persisting annual savings
482-for the year ending December 31, 2018;
483-(2) 5.2% deemed cumulative persisting annual savings
484-for the year ending December 31, 2019;
485-(3) 4.5% deemed cumulative persisting annual savings
486-for the year ending December 31, 2020;
487-(4) 4.0% deemed cumulative persisting annual savings
488-for the year ending December 31, 2021;
489-(5) 3.5% deemed cumulative persisting annual savings
490-for the year ending December 31, 2022;
491-(6) 3.1% deemed cumulative persisting annual savings
492-for the year ending December 31, 2023;
493-(7) 2.8% deemed cumulative persisting annual savings
494-for the year ending December 31, 2024;
495-(8) 2.5% deemed cumulative persisting annual savings
496-for the year ending December 31, 2025;
497-(9) 2.3% deemed cumulative persisting annual savings
498-for the year ending December 31, 2026;
499-(10) 2.1% deemed cumulative persisting annual savings
500-for the year ending December 31, 2027;
501-(11) 1.8% deemed cumulative persisting annual savings
502-for the year ending December 31, 2028;
503-(12) 1.7% deemed cumulative persisting annual savings
504-for the year ending December 31, 2029;
505-(13) 1.5% deemed cumulative persisting annual savings
506-
507-
508-for the year ending December 31, 2030;
509-(14) 1.3% deemed cumulative persisting annual savings
510-for the year ending December 31, 2031;
511-(15) 1.1% deemed cumulative persisting annual savings
512-for the year ending December 31, 2032;
513-(16) 0.9% deemed cumulative persisting annual savings
514-for the year ending December 31, 2033;
515-(17) 0.7% deemed cumulative persisting annual savings
516-for the year ending December 31, 2034;
517-(18) 0.5% deemed cumulative persisting annual savings
518-for the year ending December 31, 2035;
519-(19) 0.4% deemed cumulative persisting annual savings
520-for the year ending December 31, 2036;
521-(20) 0.3% deemed cumulative persisting annual savings
522-for the year ending December 31, 2037;
523-(21) 0.2% deemed cumulative persisting annual savings
524-for the year ending December 31, 2038;
525-(22) 0.1% deemed cumulative persisting annual savings
526-for the year ending December 31, 2039; and
527-(23) 0.0% deemed cumulative persisting annual savings
528-for the year ending December 31, 2040 and all subsequent
529-years.
530-For purposes of this Section, "cumulative persisting
531-annual savings" means the total electric energy savings in a
532-given year from measures installed in that year or in previous
533-years, but no earlier than January 1, 2012, that are still
534-
535-
536-operational and providing savings in that year because the
537-measures have not yet reached the end of their useful lives.
538-(b-5) Beginning in 2018, electric utilities subject to
539-this Section that serve more than 3,000,000 retail customers
540-in the State shall achieve the following cumulative persisting
541-annual savings goals, as modified by subsection (f) of this
542-Section and as compared to the deemed baseline of 88,000,000
543-MWhs of electric power and energy sales set forth in
544-subsection (b), as reduced by the number of MWhs equal to the
545-sum of the annual consumption of customers that have opted out
546-of subsections (a) through (j) of this Section under paragraph
547-(1) of subsection (l) of this Section as averaged across the
548-calendar years 2014, 2015, and 2016, through the
549-implementation of energy efficiency measures during the
550-applicable year and in prior years, but no earlier than
551-January 1, 2012:
552-(1) 7.8% cumulative persisting annual savings for the
553-year ending December 31, 2018;
554-(2) 9.1% cumulative persisting annual savings for the
555-year ending December 31, 2019;
556-(3) 10.4% cumulative persisting annual savings for the
557-year ending December 31, 2020;
558-(4) 11.8% cumulative persisting annual savings for the
559-year ending December 31, 2021;
560-(5) 13.1% cumulative persisting annual savings for the
561-year ending December 31, 2022;
562-
563-
564-(6) 14.4% cumulative persisting annual savings for the
565-year ending December 31, 2023;
566-(7) 15.7% cumulative persisting annual savings for the
567-year ending December 31, 2024;
568-(8) 17% cumulative persisting annual savings for the
569-year ending December 31, 2025;
570-(9) 17.9% cumulative persisting annual savings for the
571-year ending December 31, 2026;
572-(10) 18.8% cumulative persisting annual savings for
573-the year ending December 31, 2027;
574-(11) 19.7% cumulative persisting annual savings for
575-the year ending December 31, 2028;
576-(12) 20.6% cumulative persisting annual savings for
577-the year ending December 31, 2029; and
578-(13) 21.5% cumulative persisting annual savings for
579-the year ending December 31, 2030.
580-No later than December 31, 2021, the Illinois Commerce
581-Commission shall establish additional cumulative persisting
582-annual savings goals for the years 2031 through 2035. No later
583-than December 31, 2024, the Illinois Commerce Commission shall
584-establish additional cumulative persisting annual savings
585-goals for the years 2036 through 2040. The Commission shall
586-also establish additional cumulative persisting annual savings
587-goals every 5 years thereafter to ensure that utilities always
588-have goals that extend at least 11 years into the future. The
589-cumulative persisting annual savings goals beyond the year
590-
591-
592-2030 shall increase by 0.9 percentage points per year, absent
593-a Commission decision to initiate a proceeding to consider
594-establishing goals that increase by more or less than that
595-amount. Such a proceeding must be conducted in accordance with
596-the procedures described in subsection (f) of this Section. If
597-such a proceeding is initiated, the cumulative persisting
598-annual savings goals established by the Commission through
599-that proceeding shall reflect the Commission's best estimate
600-of the maximum amount of additional savings that are forecast
601-to be cost-effectively achievable unless such best estimates
602-would result in goals that represent less than 0.5 percentage
603-point annual increases in total cumulative persisting annual
604-savings. The Commission may only establish goals that
605-represent less than 0.5 percentage point annual increases in
606-cumulative persisting annual savings if it can demonstrate,
607-based on clear and convincing evidence and through independent
608-analysis, that 0.5 percentage point increases are not
609-cost-effectively achievable. The Commission shall inform its
610-decision based on an energy efficiency potential study that
611-conforms to the requirements of this Section.
612-(b-10) For purposes of this Section, electric utilities
613-subject to this Section that serve less than 3,000,000 retail
614-customers but more than 500,000 retail customers in the State
615-shall be deemed to have achieved a cumulative persisting
616-annual savings of 6.6% from energy efficiency measures and
617-programs implemented during the period beginning January 1,
618-
619-
620-2012 and ending December 31, 2017, which is based on the deemed
621-average weather normalized sales of electric power and energy
622-during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
623-For the purposes of this subsection (b-10) and subsection
624-(b-15), the 36,900,000 MWhs of deemed electric power and
625-energy sales shall be reduced by the number of MWhs equal to
626-the sum of the annual consumption of customers that have opted
627-out of subsections (a) through (j) of this Section under
628-paragraph (1) of subsection (l) of this Section, as averaged
629-across the calendar years 2014, 2015, and 2016. After 2017,
630-the deemed value of cumulative persisting annual savings from
631-energy efficiency measures and programs implemented during the
632-period beginning January 1, 2012 and ending December 31, 2017,
633-shall be reduced each year, as follows, and the applicable
634-value shall be applied to and count toward the utility's
635-achievement of the cumulative persisting annual savings goals
636-set forth in subsection (b-15):
637-(1) 5.8% deemed cumulative persisting annual savings
638-for the year ending December 31, 2018;
639-(2) 5.2% deemed cumulative persisting annual savings
640-for the year ending December 31, 2019;
641-(3) 4.5% deemed cumulative persisting annual savings
642-for the year ending December 31, 2020;
643-(4) 4.0% deemed cumulative persisting annual savings
644-for the year ending December 31, 2021;
645-(5) 3.5% deemed cumulative persisting annual savings
646-
647-
648-for the year ending December 31, 2022;
649-(6) 3.1% deemed cumulative persisting annual savings
650-for the year ending December 31, 2023;
651-(7) 2.8% deemed cumulative persisting annual savings
652-for the year ending December 31, 2024;
653-(8) 2.5% deemed cumulative persisting annual savings
654-for the year ending December 31, 2025;
655-(9) 2.3% deemed cumulative persisting annual savings
656-for the year ending December 31, 2026;
657-(10) 2.1% deemed cumulative persisting annual savings
658-for the year ending December 31, 2027;
659-(11) 1.8% deemed cumulative persisting annual savings
660-for the year ending December 31, 2028;
661-(12) 1.7% deemed cumulative persisting annual savings
662-for the year ending December 31, 2029;
663-(13) 1.5% deemed cumulative persisting annual savings
664-for the year ending December 31, 2030;
665-(14) 1.3% deemed cumulative persisting annual savings
666-for the year ending December 31, 2031;
667-(15) 1.1% deemed cumulative persisting annual savings
668-for the year ending December 31, 2032;
669-(16) 0.9% deemed cumulative persisting annual savings
670-for the year ending December 31, 2033;
671-(17) 0.7% deemed cumulative persisting annual savings
672-for the year ending December 31, 2034;
673-(18) 0.5% deemed cumulative persisting annual savings
674-
675-
676-for the year ending December 31, 2035;
677-(19) 0.4% deemed cumulative persisting annual savings
678-for the year ending December 31, 2036;
679-(20) 0.3% deemed cumulative persisting annual savings
680-for the year ending December 31, 2037;
681-(21) 0.2% deemed cumulative persisting annual savings
682-for the year ending December 31, 2038;
683-(22) 0.1% deemed cumulative persisting annual savings
684-for the year ending December 31, 2039; and
685-(23) 0.0% deemed cumulative persisting annual savings
686-for the year ending December 31, 2040 and all subsequent
687-years.
688-(b-15) Beginning in 2018, electric utilities subject to
689-this Section that serve less than 3,000,000 retail customers
690-but more than 500,000 retail customers in the State shall
691-achieve the following cumulative persisting annual savings
692-goals, as modified by subsection (b-20) and subsection (f) of
693-this Section and as compared to the deemed baseline as reduced
694-by the number of MWhs equal to the sum of the annual
695-consumption of customers that have opted out of subsections
696-(a) through (j) of this Section under paragraph (1) of
697-subsection (l) of this Section as averaged across the calendar
698-years 2014, 2015, and 2016, through the implementation of
699-energy efficiency measures during the applicable year and in
700-prior years, but no earlier than January 1, 2012:
701-(1) 7.4% cumulative persisting annual savings for the
702-
703-
704-year ending December 31, 2018;
705-(2) 8.2% cumulative persisting annual savings for the
706-year ending December 31, 2019;
707-(3) 9.0% cumulative persisting annual savings for the
708-year ending December 31, 2020;
709-(4) 9.8% cumulative persisting annual savings for the
710-year ending December 31, 2021;
711-(5) 10.6% cumulative persisting annual savings for the
712-year ending December 31, 2022;
713-(6) 11.4% cumulative persisting annual savings for the
714-year ending December 31, 2023;
715-(7) 12.2% cumulative persisting annual savings for the
716-year ending December 31, 2024;
717-(8) 13% cumulative persisting annual savings for the
718-year ending December 31, 2025;
719-(9) 13.6% cumulative persisting annual savings for the
720-year ending December 31, 2026;
721-(10) 14.2% cumulative persisting annual savings for
722-the year ending December 31, 2027;
723-(11) 14.8% cumulative persisting annual savings for
724-the year ending December 31, 2028;
725-(12) 15.4% cumulative persisting annual savings for
726-the year ending December 31, 2029; and
727-(13) 16% cumulative persisting annual savings for the
728-year ending December 31, 2030.
729-No later than December 31, 2021, the Illinois Commerce
730-
731-
732-Commission shall establish additional cumulative persisting
733-annual savings goals for the years 2031 through 2035. No later
734-than December 31, 2024, the Illinois Commerce Commission shall
735-establish additional cumulative persisting annual savings
736-goals for the years 2036 through 2040. The Commission shall
737-also establish additional cumulative persisting annual savings
738-goals every 5 years thereafter to ensure that utilities always
739-have goals that extend at least 11 years into the future. The
740-cumulative persisting annual savings goals beyond the year
741-2030 shall increase by 0.6 percentage points per year, absent
742-a Commission decision to initiate a proceeding to consider
743-establishing goals that increase by more or less than that
744-amount. Such a proceeding must be conducted in accordance with
745-the procedures described in subsection (f) of this Section. If
746-such a proceeding is initiated, the cumulative persisting
747-annual savings goals established by the Commission through
748-that proceeding shall reflect the Commission's best estimate
749-of the maximum amount of additional savings that are forecast
750-to be cost-effectively achievable unless such best estimates
751-would result in goals that represent less than 0.4 percentage
752-point annual increases in total cumulative persisting annual
753-savings. The Commission may only establish goals that
754-represent less than 0.4 percentage point annual increases in
755-cumulative persisting annual savings if it can demonstrate,
756-based on clear and convincing evidence and through independent
757-analysis, that 0.4 percentage point increases are not
758-
759-
760-cost-effectively achievable. The Commission shall inform its
761-decision based on an energy efficiency potential study that
762-conforms to the requirements of this Section.
763-(b-20) Each electric utility subject to this Section may
764-include cost-effective voltage optimization measures in its
765-plans submitted under subsections (f) and (g) of this Section,
766-and the costs incurred by a utility to implement the measures
767-under a Commission-approved plan shall be recovered under the
768-provisions of Article IX or Section 16-108.5 of this Act. For
769-purposes of this Section, the measure life of voltage
770-optimization measures shall be 15 years. The measure life
771-period is independent of the depreciation rate of the voltage
772-optimization assets deployed. Utilities may claim savings from
773-voltage optimization on circuits for more than 15 years if
774-they can demonstrate that they have made additional
775-investments necessary to enable voltage optimization savings
776-to continue beyond 15 years. Such demonstrations must be
777-subject to the review of independent evaluation.
778-Within 270 days after June 1, 2017 (the effective date of
779-Public Act 99-906), an electric utility that serves less than
780-3,000,000 retail customers but more than 500,000 retail
781-customers in the State shall file a plan with the Commission
782-that identifies the cost-effective voltage optimization
783-investment the electric utility plans to undertake through
784-December 31, 2024. The Commission, after notice and hearing,
785-shall approve or approve with modification the plan within 120
786-
787-
788-days after the plan's filing and, in the order approving or
789-approving with modification the plan, the Commission shall
790-adjust the applicable cumulative persisting annual savings
791-goals set forth in subsection (b-15) to reflect any amount of
792-cost-effective energy savings approved by the Commission that
793-is greater than or less than the following cumulative
794-persisting annual savings values attributable to voltage
795-optimization for the applicable year:
796-(1) 0.0% of cumulative persisting annual savings for
797-the year ending December 31, 2018;
798-(2) 0.17% of cumulative persisting annual savings for
799-the year ending December 31, 2019;
800-(3) 0.17% of cumulative persisting annual savings for
801-the year ending December 31, 2020;
802-(4) 0.33% of cumulative persisting annual savings for
803-the year ending December 31, 2021;
804-(5) 0.5% of cumulative persisting annual savings for
805-the year ending December 31, 2022;
806-(6) 0.67% of cumulative persisting annual savings for
807-the year ending December 31, 2023;
808-(7) 0.83% of cumulative persisting annual savings for
809-the year ending December 31, 2024; and
810-(8) 1.0% of cumulative persisting annual savings for
811-the year ending December 31, 2025 and all subsequent
812-years.
813-(b-25) In the event an electric utility jointly offers an
814-
815-
816-energy efficiency measure or program with a gas utility under
817-plans approved under this Section and Section 8-104 of this
818-Act, the electric utility may continue offering the program,
819-including the gas energy efficiency measures, in the event the
820-gas utility discontinues funding the program. In that event,
821-the energy savings value associated with such other fuels
822-shall be converted to electric energy savings on an equivalent
823-Btu basis for the premises. However, the electric utility
824-shall prioritize programs for low-income residential customers
825-to the extent practicable. An electric utility may recover the
826-costs of offering the gas energy efficiency measures under
827-this subsection (b-25).
828-For those energy efficiency measures or programs that save
829-both electricity and other fuels but are not jointly offered
830-with a gas utility under plans approved under this Section and
831-Section 8-104 or not offered with an affiliated gas utility
832-under paragraph (6) of subsection (f) of Section 8-104 of this
833-Act, the electric utility may count savings of fuels other
834-than electricity toward the achievement of its annual savings
835-goal, and the energy savings value associated with such other
836-fuels shall be converted to electric energy savings on an
837-equivalent Btu basis at the premises.
838-In no event shall more than 10% of each year's applicable
839-annual total savings requirement as defined in paragraph (7.5)
840-of subsection (g) of this Section be met through savings of
841-fuels other than electricity.
842-
843-
844-(b-27) Beginning in 2022, an electric utility may offer
845-and promote measures that electrify space heating, water
846-heating, cooling, drying, cooking, industrial processes, and
847-other building and industrial end uses that would otherwise be
848-served by combustion of fossil fuel at the premises, provided
849-that the electrification measures reduce total energy
850-consumption at the premises. The electric utility may count
851-the reduction in energy consumption at the premises toward
852-achievement of its annual savings goals. The reduction in
853-energy consumption at the premises shall be calculated as the
854-difference between: (A) the reduction in Btu consumption of
855-fossil fuels as a result of electrification, converted to
856-kilowatt-hour equivalents by dividing by 3,412 Btus per
857-kilowatt hour; and (B) the increase in kilowatt hours of
858-electricity consumption resulting from the displacement of
859-fossil fuel consumption as a result of electrification. An
860-electric utility may recover the costs of offering and
861-promoting electrification measures under this subsection
862-(b-27).
863-In no event shall electrification savings counted toward
864-each year's applicable annual total savings requirement, as
865-defined in paragraph (7.5) of subsection (g) of this Section,
866-be greater than:
867-(1) 5% per year for each year from 2022 through 2025;
868-(2) 10% per year for each year from 2026 through 2029;
869-and
870-
871-
872-(3) 15% per year for 2030 and all subsequent years.
873-In addition, a minimum of 25% of all electrification savings
874-counted toward a utility's applicable annual total savings
875-requirement must be from electrification of end uses in
876-low-income housing. The limitations on electrification savings
877-that may be counted toward a utility's annual savings goals
878-are separate from and in addition to the subsection (b-25)
879-limitations governing the counting of the other fuel savings
880-resulting from efficiency measures and programs.
881-As part of the annual informational filing to the
882-Commission that is required under paragraph (9) of subsection
883-(g) of this Section, each utility shall identify the specific
884-electrification measures offered under this subsection (b-27);
885-the quantity of each electrification measure that was
886-installed by its customers; the average total cost, average
887-utility cost, average reduction in fossil fuel consumption,
888-and average increase in electricity consumption associated
889-with each electrification measure; the portion of
890-installations of each electrification measure that were in
891-low-income single-family housing, low-income multifamily
892-housing, non-low-income single-family housing, non-low-income
893-multifamily housing, commercial buildings, and industrial
894-facilities; and the quantity of savings associated with each
895-measure category in each customer category that are being
896-counted toward the utility's applicable annual total savings
897-requirement. Prior to installing an electrification measure,
898-
899-
900-the utility shall provide a customer with an estimate of the
901-impact of the new measure on the customer's average monthly
902-electric bill and total annual energy expenses.
903-(c) Electric utilities shall be responsible for overseeing
904-the design, development, and filing of energy efficiency plans
905-with the Commission and may, as part of that implementation,
906-outsource various aspects of program development and
907-implementation. A minimum of 10%, for electric utilities that
908-serve more than 3,000,000 retail customers in the State, and a
909-minimum of 7%, for electric utilities that serve less than
910-3,000,000 retail customers but more than 500,000 retail
911-customers in the State, of the utility's entire portfolio
912-funding level for a given year shall be used to procure
913-cost-effective energy efficiency measures from units of local
914-government, municipal corporations, school districts, public
915-housing, public institutions of higher education, and
916-community college districts, provided that a minimum
917-percentage of available funds shall be used to procure energy
918-efficiency from public housing, which percentage shall be
919-equal to public housing's share of public building energy
920-consumption.
921-The utilities shall also implement energy efficiency
922-measures targeted at low-income households, which, for
923-purposes of this Section, shall be defined as households at or
924-below 80% of area median income, and expenditures to implement
925-the measures shall be no less than $40,000,000 per year for
926-
927-
928-electric utilities that serve more than 3,000,000 retail
929-customers in the State and no less than $13,000,000 per year
930-for electric utilities that serve less than 3,000,000 retail
931-customers but more than 500,000 retail customers in the State.
932-The ratio of spending on efficiency programs targeted at
933-low-income multifamily buildings to spending on efficiency
934-programs targeted at low-income single-family buildings shall
935-be designed to achieve levels of savings from each building
936-type that are approximately proportional to the magnitude of
937-cost-effective lifetime savings potential in each building
938-type. Investment in low-income whole-building weatherization
939-programs shall constitute a minimum of 80% of a utility's
940-total budget specifically dedicated to serving low-income
941-customers.
942-The utilities shall work to bundle low-income energy
943-efficiency offerings with other programs that serve low-income
944-households to maximize the benefits going to these households.
945-The utilities shall market and implement low-income energy
946-efficiency programs in coordination with low-income assistance
947-programs, the Illinois Solar for All Program, and
948-weatherization whenever practicable. The program implementer
949-shall walk the customer through the enrollment process for any
950-programs for which the customer is eligible. The utilities
951-shall also pilot targeting customers with high arrearages,
952-high energy intensity (ratio of energy usage divided by home
953-or unit square footage), or energy assistance programs with
954-
955-
956-energy efficiency offerings, and then track reduction in
957-arrearages as a result of the targeting. This targeting and
958-bundling of low-income energy programs shall be offered to
959-both low-income single-family and multifamily customers
960-(owners and residents).
961-The utilities shall invest in health and safety measures
962-appropriate and necessary for comprehensively weatherizing a
963-home or multifamily building, and shall implement a health and
964-safety fund of at least 15% of the total income-qualified
965-weatherization budget that shall be used for the purpose of
966-making grants for technical assistance, construction,
967-reconstruction, improvement, or repair of buildings to
968-facilitate their participation in the energy efficiency
969-programs targeted at low-income single-family and multifamily
970-households. These funds may also be used for the purpose of
971-making grants for technical assistance, construction,
972-reconstruction, improvement, or repair of the following
973-buildings to facilitate their participation in the energy
974-efficiency programs created by this Section: (1) buildings
975-that are owned or operated by registered 501(c)(3) public
976-charities; and (2) day care centers, day care homes, or group
977-day care homes, as defined under 89 Ill. Adm. Code Part 406,
978-407, or 408, respectively.
979-Each electric utility shall assess opportunities to
980-implement cost-effective energy efficiency measures and
981-programs through a public housing authority or authorities
982-
983-
984-located in its service territory. If such opportunities are
985-identified, the utility shall propose such measures and
986-programs to address the opportunities. Expenditures to address
987-such opportunities shall be credited toward the minimum
988-procurement and expenditure requirements set forth in this
989-subsection (c).
990-Implementation of energy efficiency measures and programs
991-targeted at low-income households should be contracted, when
992-it is practicable, to independent third parties that have
993-demonstrated capabilities to serve such households, with a
994-preference for not-for-profit entities and government agencies
995-that have existing relationships with or experience serving
996-low-income communities in the State.
997-Each electric utility shall develop and implement
998-reporting procedures that address and assist in determining
999-the amount of energy savings that can be applied to the
1000-low-income procurement and expenditure requirements set forth
1001-in this subsection (c). Each electric utility shall also track
1002-the types and quantities or volumes of insulation and air
1003-sealing materials, and their associated energy saving
1004-benefits, installed in energy efficiency programs targeted at
1005-low-income single-family and multifamily households.
1006-The electric utilities shall participate in a low-income
1007-energy efficiency accountability committee ("the committee"),
1008-which will directly inform the design, implementation, and
1009-evaluation of the low-income and public-housing energy
1010-
1011-
1012-efficiency programs. The committee shall be comprised of the
1013-electric utilities subject to the requirements of this
1014-Section, the gas utilities subject to the requirements of
1015-Section 8-104 of this Act, the utilities' low-income energy
1016-efficiency implementation contractors, nonprofit
1017-organizations, community action agencies, advocacy groups,
1018-State and local governmental agencies, public-housing
1019-organizations, and representatives of community-based
1020-organizations, especially those living in or working with
1021-environmental justice communities and BIPOC communities. The
1022-committee shall be composed of 2 geographically differentiated
1023-subcommittees: one for stakeholders in northern Illinois and
1024-one for stakeholders in central and southern Illinois. The
1025-subcommittees shall meet together at least twice per year.
1026-There shall be one statewide leadership committee led by
1027-and composed of community-based organizations that are
1028-representative of BIPOC and environmental justice communities
1029-and that includes equitable representation from BIPOC
1030-communities. The leadership committee shall be composed of an
1031-equal number of representatives from the 2 subcommittees. The
1032-subcommittees shall address specific programs and issues, with
1033-the leadership committee convening targeted workgroups as
1034-needed. The leadership committee may elect to work with an
1035-independent facilitator to solicit and organize feedback,
1036-recommendations and meeting participation from a wide variety
1037-of community-based stakeholders. If a facilitator is used,
1038-
1039-
1040-they shall be fair and responsive to the needs of all
1041-stakeholders involved in the committee.
1042-All committee meetings must be accessible, with rotating
1043-locations if meetings are held in-person, virtual
1044-participation options, and materials and agendas circulated in
1045-advance.
1046-There shall also be opportunities for direct input by
1047-committee members outside of committee meetings, such as via
1048-individual meetings, surveys, emails and calls, to ensure
1049-robust participation by stakeholders with limited capacity and
1050-ability to attend committee meetings. Committee meetings shall
1051-emphasize opportunities to bundle and coordinate delivery of
1052-low-income energy efficiency with other programs that serve
1053-low-income communities, such as the Illinois Solar for All
1054-Program and bill payment assistance programs. Meetings shall
1055-include educational opportunities for stakeholders to learn
1056-more about these additional offerings, and the committee shall
1057-assist in figuring out the best methods for coordinated
1058-delivery and implementation of offerings when serving
1059-low-income communities. The committee shall directly and
1060-equitably influence and inform utility low-income and
1061-public-housing energy efficiency programs and priorities.
1062-Participating utilities shall implement recommendations from
1063-the committee whenever possible.
1064-Participating utilities shall track and report how input
1065-from the committee has led to new approaches and changes in
1066-
1067-
1068-their energy efficiency portfolios. This reporting shall occur
1069-at committee meetings and in quarterly energy efficiency
1070-reports to the Stakeholder Advisory Group and Illinois
1071-Commerce Commission, and other relevant reporting mechanisms.
1072-Participating utilities shall also report on relevant equity
1073-data and metrics requested by the committee, such as energy
1074-burden data, geographic, racial, and other relevant
1075-demographic data on where programs are being delivered and
1076-what populations programs are serving.
1077-The Illinois Commerce Commission shall oversee and have
1078-relevant staff participate in the committee. The committee
1079-shall have a budget of 0.25% of each utility's entire
1080-efficiency portfolio funding for a given year. The budget
1081-shall be overseen by the Commission. The budget shall be used
1082-to provide grants for community-based organizations serving on
1083-the leadership committee, stipends for community-based
1084-organizations participating in the committee, grants for
1085-community-based organizations to do energy efficiency outreach
1086-and education, and relevant meeting needs as determined by the
1087-leadership committee. The education and outreach shall
1088-include, but is not limited to, basic energy efficiency
1089-education, information about low-income energy efficiency
1090-programs, and information on the committee's purpose,
1091-structure, and activities.
1092-(d) Notwithstanding any other provision of law to the
1093-contrary, a utility providing approved energy efficiency
1094-
1095-
1096-measures and, if applicable, demand-response measures in the
1097-State shall be permitted to recover all reasonable and
1098-prudently incurred costs of those measures from all retail
1099-customers, except as provided in subsection (l) of this
1100-Section, as follows, provided that nothing in this subsection
1101-(d) permits the double recovery of such costs from customers:
1102-(1) The utility may recover its costs through an
1103-automatic adjustment clause tariff filed with and approved
1104-by the Commission. The tariff shall be established outside
1105-the context of a general rate case. Each year the
1106-Commission shall initiate a review to reconcile any
1107-amounts collected with the actual costs and to determine
1108-the required adjustment to the annual tariff factor to
1109-match annual expenditures. To enable the financing of the
1110-incremental capital expenditures, including regulatory
1111-assets, for electric utilities that serve less than
1112-3,000,000 retail customers but more than 500,000 retail
1113-customers in the State, the utility's actual year-end
1114-capital structure that includes a common equity ratio,
1115-excluding goodwill, of up to and including 50% of the
1116-total capital structure shall be deemed reasonable and
1117-used to set rates.
1118-(2) A utility may recover its costs through an energy
1119-efficiency formula rate approved by the Commission under a
1120-filing under subsections (f) and (g) of this Section,
1121-which shall specify the cost components that form the
1122-
1123-
1124-basis of the rate charged to customers with sufficient
1125-specificity to operate in a standardized manner and be
1126-updated annually with transparent information that
1127-reflects the utility's actual costs to be recovered during
1128-the applicable rate year, which is the period beginning
1129-with the first billing day of January and extending
1130-through the last billing day of the following December.
1131-The energy efficiency formula rate shall be implemented
1132-through a tariff filed with the Commission under
1133-subsections (f) and (g) of this Section that is consistent
1134-with the provisions of this paragraph (2) and that shall
1135-be applicable to all delivery services customers. The
1136-Commission shall conduct an investigation of the tariff in
1137-a manner consistent with the provisions of this paragraph
1138-(2), subsections (f) and (g) of this Section, and the
1139-provisions of Article IX of this Act to the extent they do
1140-not conflict with this paragraph (2). The energy
1141-efficiency formula rate approved by the Commission shall
1142-remain in effect at the discretion of the utility and
1143-shall do the following:
1144-(A) Provide for the recovery of the utility's
1145-actual costs incurred under this Section that are
1146-prudently incurred and reasonable in amount consistent
1147-with Commission practice and law. The sole fact that a
1148-cost differs from that incurred in a prior calendar
1149-year or that an investment is different from that made
1150-
1151-
1152-in a prior calendar year shall not imply the
1153-imprudence or unreasonableness of that cost or
1154-investment.
1155-(B) Reflect the utility's actual year-end capital
1156-structure for the applicable calendar year, excluding
1157-goodwill, subject to a determination of prudence and
1158-reasonableness consistent with Commission practice and
1159-law. To enable the financing of the incremental
1160-capital expenditures, including regulatory assets, for
1161-electric utilities that serve less than 3,000,000
1162-retail customers but more than 500,000 retail
1163-customers in the State, a participating electric
1164-utility's actual year-end capital structure that
1165-includes a common equity ratio, excluding goodwill, of
1166-up to and including 50% of the total capital structure
1167-shall be deemed reasonable and used to set rates.
1168-(C) Include a cost of equity, which shall be
1169-calculated as the sum of the following:
1170-(i) the average for the applicable calendar
1171-year of the monthly average yields of 30-year U.S.
1172-Treasury bonds published by the Board of Governors
1173-of the Federal Reserve System in its weekly H.15
1174-Statistical Release or successor publication; and
1175-(ii) 580 basis points.
1176-At such time as the Board of Governors of the
1177-Federal Reserve System ceases to include the monthly
1178-
1179-
1180-average yields of 30-year U.S. Treasury bonds in its
1181-weekly H.15 Statistical Release or successor
1182-publication, the monthly average yields of the U.S.
1183-Treasury bonds then having the longest duration
1184-published by the Board of Governors in its weekly H.15
1185-Statistical Release or successor publication shall
1186-instead be used for purposes of this paragraph (2).
1187-(D) Permit and set forth protocols, subject to a
1188-determination of prudence and reasonableness
1189-consistent with Commission practice and law, for the
1190-following:
1191-(i) recovery of incentive compensation expense
1192-that is based on the achievement of operational
1193-metrics, including metrics related to budget
1194-controls, outage duration and frequency, safety,
1195-customer service, efficiency and productivity, and
1196-environmental compliance; however, this protocol
1197-shall not apply if such expense related to costs
1198-incurred under this Section is recovered under
1199-Article IX or Section 16-108.5 of this Act;
1200-incentive compensation expense that is based on
1201-net income or an affiliate's earnings per share
1202-shall not be recoverable under the energy
1203-efficiency formula rate;
1204-(ii) recovery of pension and other
1205-post-employment benefits expense, provided that
1206-
1207-
1208-such costs are supported by an actuarial study;
1209-however, this protocol shall not apply if such
1210-expense related to costs incurred under this
1211-Section is recovered under Article IX or Section
1212-16-108.5 of this Act;
1213-(iii) recovery of existing regulatory assets
1214-over the periods previously authorized by the
1215-Commission;
1216-(iv) as described in subsection (e),
1217-amortization of costs incurred under this Section;
1218-and
1219-(v) projected, weather normalized billing
1220-determinants for the applicable rate year.
1221-(E) Provide for an annual reconciliation, as
1222-described in paragraph (3) of this subsection (d),
1223-less any deferred taxes related to the reconciliation,
1224-with interest at an annual rate of return equal to the
1225-utility's weighted average cost of capital, including
1226-a revenue conversion factor calculated to recover or
1227-refund all additional income taxes that may be payable
1228-or receivable as a result of that return, of the energy
1229-efficiency revenue requirement reflected in rates for
1230-each calendar year, beginning with the calendar year
1231-in which the utility files its energy efficiency
1232-formula rate tariff under this paragraph (2), with
1233-what the revenue requirement would have been had the
1234-
1235-
1236-actual cost information for the applicable calendar
1237-year been available at the filing date.
1238-The utility shall file, together with its tariff, the
1239-projected costs to be incurred by the utility during the
1240-rate year under the utility's multi-year plan approved
1241-under subsections (f) and (g) of this Section, including,
1242-but not limited to, the projected capital investment costs
1243-and projected regulatory asset balances with
1244-correspondingly updated depreciation and amortization
1245-reserves and expense, that shall populate the energy
1246-efficiency formula rate and set the initial rates under
1247-the formula.
1248-The Commission shall review the proposed tariff in
1249-conjunction with its review of a proposed multi-year plan,
1250-as specified in paragraph (5) of subsection (g) of this
1251-Section. The review shall be based on the same evidentiary
1252-standards, including, but not limited to, those concerning
1253-the prudence and reasonableness of the costs incurred by
1254-the utility, the Commission applies in a hearing to review
1255-a filing for a general increase in rates under Article IX
1256-of this Act. The initial rates shall take effect beginning
1257-with the January monthly billing period following the
1258-Commission's approval.
1259-The tariff's rate design and cost allocation across
1260-customer classes shall be consistent with the utility's
1261-automatic adjustment clause tariff in effect on June 1,
1262-
1263-
1264-2017 (the effective date of Public Act 99-906); however,
1265-the Commission may revise the tariff's rate design and
1266-cost allocation in subsequent proceedings under paragraph
1267-(3) of this subsection (d).
1268-If the energy efficiency formula rate is terminated,
1269-the then current rates shall remain in effect until such
1270-time as the energy efficiency costs are incorporated into
1271-new rates that are set under this subsection (d) or
1272-Article IX of this Act, subject to retroactive rate
1273-adjustment, with interest, to reconcile rates charged with
1274-actual costs.
1275-(3) The provisions of this paragraph (3) shall only
1276-apply to an electric utility that has elected to file an
1277-energy efficiency formula rate under paragraph (2) of this
1278-subsection (d). Subsequent to the Commission's issuance of
1279-an order approving the utility's energy efficiency formula
1280-rate structure and protocols, and initial rates under
1281-paragraph (2) of this subsection (d), the utility shall
1282-file, on or before June 1 of each year, with the Chief
1283-Clerk of the Commission its updated cost inputs to the
1284-energy efficiency formula rate for the applicable rate
1285-year and the corresponding new charges, as well as the
1286-information described in paragraph (9) of subsection (g)
1287-of this Section. Each such filing shall conform to the
1288-following requirements and include the following
1289-information:
1290-
1291-
1292-(A) The inputs to the energy efficiency formula
1293-rate for the applicable rate year shall be based on the
1294-projected costs to be incurred by the utility during
1295-the rate year under the utility's multi-year plan
1296-approved under subsections (f) and (g) of this
1297-Section, including, but not limited to, projected
1298-capital investment costs and projected regulatory
1299-asset balances with correspondingly updated
1300-depreciation and amortization reserves and expense.
1301-The filing shall also include a reconciliation of the
1302-energy efficiency revenue requirement that was in
1303-effect for the prior rate year (as set by the cost
1304-inputs for the prior rate year) with the actual
1305-revenue requirement for the prior rate year
1306-(determined using a year-end rate base) that uses
1307-amounts reflected in the applicable FERC Form 1 that
1308-reports the actual costs for the prior rate year. Any
1309-over-collection or under-collection indicated by such
1310-reconciliation shall be reflected as a credit against,
1311-or recovered as an additional charge to, respectively,
1312-with interest calculated at a rate equal to the
1313-utility's weighted average cost of capital approved by
1314-the Commission for the prior rate year, the charges
1315-for the applicable rate year. Such over-collection or
1316-under-collection shall be adjusted to remove any
1317-deferred taxes related to the reconciliation, for
1318-
1319-
1320-purposes of calculating interest at an annual rate of
1321-return equal to the utility's weighted average cost of
1322-capital approved by the Commission for the prior rate
1323-year, including a revenue conversion factor calculated
1324-to recover or refund all additional income taxes that
1325-may be payable or receivable as a result of that
1326-return. Each reconciliation shall be certified by the
1327-participating utility in the same manner that FERC
1328-Form 1 is certified. The filing shall also include the
1329-charge or credit, if any, resulting from the
1330-calculation required by subparagraph (E) of paragraph
1331-(2) of this subsection (d).
1332-Notwithstanding any other provision of law to the
1333-contrary, the intent of the reconciliation is to
1334-ultimately reconcile both the revenue requirement
1335-reflected in rates for each calendar year, beginning
1336-with the calendar year in which the utility files its
1337-energy efficiency formula rate tariff under paragraph
1338-(2) of this subsection (d), with what the revenue
1339-requirement determined using a year-end rate base for
1340-the applicable calendar year would have been had the
1341-actual cost information for the applicable calendar
1342-year been available at the filing date.
1343-For purposes of this Section, "FERC Form 1" means
1344-the Annual Report of Major Electric Utilities,
1345-Licensees and Others that electric utilities are
1346-
1347-
1348-required to file with the Federal Energy Regulatory
1349-Commission under the Federal Power Act, Sections 3,
1350-4(a), 304 and 209, modified as necessary to be
1351-consistent with 83 Ill. Adm. Code Part 415 as of May 1,
1352-2011. Nothing in this Section is intended to allow
1353-costs that are not otherwise recoverable to be
1354-recoverable by virtue of inclusion in FERC Form 1.
1355-(B) The new charges shall take effect beginning on
1356-the first billing day of the following January billing
1357-period and remain in effect through the last billing
1358-day of the next December billing period regardless of
1359-whether the Commission enters upon a hearing under
1360-this paragraph (3).
1361-(C) The filing shall include relevant and
1362-necessary data and documentation for the applicable
1363-rate year. Normalization adjustments shall not be
1364-required.
1365-Within 45 days after the utility files its annual
1366-update of cost inputs to the energy efficiency formula
1367-rate, the Commission shall with reasonable notice,
1368-initiate a proceeding concerning whether the projected
1369-costs to be incurred by the utility and recovered during
1370-the applicable rate year, and that are reflected in the
1371-inputs to the energy efficiency formula rate, are
1372-consistent with the utility's approved multi-year plan
1373-under subsections (f) and (g) of this Section and whether
1374-
1375-
1376-the costs incurred by the utility during the prior rate
1377-year were prudent and reasonable. The Commission shall
1378-also have the authority to investigate the information and
1379-data described in paragraph (9) of subsection (g) of this
1380-Section, including the proposed adjustment to the
1381-utility's return on equity component of its weighted
1382-average cost of capital. During the course of the
1383-proceeding, each objection shall be stated with
1384-particularity and evidence provided in support thereof,
1385-after which the utility shall have the opportunity to
1386-rebut the evidence. Discovery shall be allowed consistent
1387-with the Commission's Rules of Practice, which Rules of
1388-Practice shall be enforced by the Commission or the
1389-assigned administrative law judge. The Commission shall
1390-apply the same evidentiary standards, including, but not
1391-limited to, those concerning the prudence and
1392-reasonableness of the costs incurred by the utility,
1393-during the proceeding as it would apply in a proceeding to
1394-review a filing for a general increase in rates under
1395-Article IX of this Act. The Commission shall not, however,
1396-have the authority in a proceeding under this paragraph
1397-(3) to consider or order any changes to the structure or
1398-protocols of the energy efficiency formula rate approved
1399-under paragraph (2) of this subsection (d). In a
1400-proceeding under this paragraph (3), the Commission shall
1401-enter its order no later than the earlier of 195 days after
1402-
1403-
1404-the utility's filing of its annual update of cost inputs
1405-to the energy efficiency formula rate or December 15. The
1406-utility's proposed return on equity calculation, as
1407-described in paragraphs (7) through (9) of subsection (g)
1408-of this Section, shall be deemed the final, approved
1409-calculation on December 15 of the year in which it is filed
1410-unless the Commission enters an order on or before
1411-December 15, after notice and hearing, that modifies such
1412-calculation consistent with this Section. The Commission's
1413-determinations of the prudence and reasonableness of the
1414-costs incurred, and determination of such return on equity
1415-calculation, for the applicable calendar year shall be
1416-final upon entry of the Commission's order and shall not
1417-be subject to reopening, reexamination, or collateral
1418-attack in any other Commission proceeding, case, docket,
1419-order, rule, or regulation; however, nothing in this
1420-paragraph (3) shall prohibit a party from petitioning the
1421-Commission to rehear or appeal to the courts the order
1422-under the provisions of this Act.
1423-(e) Beginning on June 1, 2017 (the effective date of
1424-Public Act 99-906), a utility subject to the requirements of
1425-this Section may elect to defer, as a regulatory asset, up to
1426-the full amount of its expenditures incurred under this
1427-Section for each annual period, including, but not limited to,
1428-any expenditures incurred above the funding level set by
1429-subsection (f) of this Section for a given year. The total
1430-
1431-
1432-expenditures deferred as a regulatory asset in a given year
1433-shall be amortized and recovered over a period that is equal to
1434-the weighted average of the energy efficiency measure lives
1435-implemented for that year that are reflected in the regulatory
1436-asset. The unamortized balance shall be recognized as of
1437-December 31 for a given year. The utility shall also earn a
1438-return on the total of the unamortized balances of all of the
1439-energy efficiency regulatory assets, less any deferred taxes
1440-related to those unamortized balances, at an annual rate equal
1441-to the utility's weighted average cost of capital that
1442-includes, based on a year-end capital structure, the utility's
1443-actual cost of debt for the applicable calendar year and a cost
1444-of equity, which shall be calculated as the sum of the (i) the
1445-average for the applicable calendar year of the monthly
1446-average yields of 30-year U.S. Treasury bonds published by the
1447-Board of Governors of the Federal Reserve System in its weekly
1448-H.15 Statistical Release or successor publication; and (ii)
1449-580 basis points, including a revenue conversion factor
1450-calculated to recover or refund all additional income taxes
1451-that may be payable or receivable as a result of that return.
1452-Capital investment costs shall be depreciated and recovered
1453-over their useful lives consistent with generally accepted
1454-accounting principles. The weighted average cost of capital
1455-shall be applied to the capital investment cost balance, less
1456-any accumulated depreciation and accumulated deferred income
1457-taxes, as of December 31 for a given year.
1458-
1459-
1460-When an electric utility creates a regulatory asset under
1461-the provisions of this Section, the costs are recovered over a
1462-period during which customers also receive a benefit which is
1463-in the public interest. Accordingly, it is the intent of the
1464-General Assembly that an electric utility that elects to
1465-create a regulatory asset under the provisions of this Section
1466-shall recover all of the associated costs as set forth in this
1467-Section. After the Commission has approved the prudence and
1468-reasonableness of the costs that comprise the regulatory
1469-asset, the electric utility shall be permitted to recover all
1470-such costs, and the value and recoverability through rates of
1471-the associated regulatory asset shall not be limited, altered,
1472-impaired, or reduced.
1473-(f) Beginning in 2017, each electric utility shall file an
1474-energy efficiency plan with the Commission to meet the energy
1475-efficiency standards for the next applicable multi-year period
1476-beginning January 1 of the year following the filing,
1477-according to the schedule set forth in paragraphs (1) through
1478-(3) of this subsection (f). If a utility does not file such a
1479-plan on or before the applicable filing deadline for the plan,
1480-it shall face a penalty of $100,000 per day until the plan is
1481-filed.
1482-(1) No later than 30 days after June 1, 2017 (the
1483-effective date of Public Act 99-906), each electric
1484-utility shall file a 4-year energy efficiency plan
1485-commencing on January 1, 2018 that is designed to achieve
1486-
1487-
1488-the cumulative persisting annual savings goals specified
1489-in paragraphs (1) through (4) of subsection (b-5) of this
1490-Section or in paragraphs (1) through (4) of subsection
1491-(b-15) of this Section, as applicable, through
1492-implementation of energy efficiency measures; however, the
1493-goals may be reduced if the utility's expenditures are
1494-limited pursuant to subsection (m) of this Section or, for
1495-a utility that serves less than 3,000,000 retail
1496-customers, if each of the following conditions are met:
1497-(A) the plan's analysis and forecasts of the utility's
1498-ability to acquire energy savings demonstrate that
1499-achievement of such goals is not cost effective; and (B)
1500-the amount of energy savings achieved by the utility as
1501-determined by the independent evaluator for the most
1502-recent year for which savings have been evaluated
1503-preceding the plan filing was less than the average annual
1504-amount of savings required to achieve the goals for the
1505-applicable 4-year plan period. Except as provided in
1506-subsection (m) of this Section, annual increases in
1507-cumulative persisting annual savings goals during the
1508-applicable 4-year plan period shall not be reduced to
1509-amounts that are less than the maximum amount of
1510-cumulative persisting annual savings that is forecast to
1511-be cost-effectively achievable during the 4-year plan
1512-period. The Commission shall review any proposed goal
1513-reduction as part of its review and approval of the
1514-
1515-
1516-utility's proposed plan.
1517-(2) No later than March 1, 2021, each electric utility
1518-shall file a 4-year energy efficiency plan commencing on
1519-January 1, 2022 that is designed to achieve the cumulative
1520-persisting annual savings goals specified in paragraphs
1521-(5) through (8) of subsection (b-5) of this Section or in
1522-paragraphs (5) through (8) of subsection (b-15) of this
1523-Section, as applicable, through implementation of energy
1524-efficiency measures; however, the goals may be reduced if
1525-either (1) clear and convincing evidence demonstrates,
1526-through independent analysis, that the expenditure limits
1527-in subsection (m) of this Section preclude full
1528-achievement of the goals or (2) each of the following
1529-conditions are met: (A) the plan's analysis and forecasts
1530-of the utility's ability to acquire energy savings
1531-demonstrate by clear and convincing evidence and through
1532-independent analysis that achievement of such goals is not
1533-cost effective; and (B) the amount of energy savings
1534-achieved by the utility as determined by the independent
1535-evaluator for the most recent year for which savings have
1536-been evaluated preceding the plan filing was less than the
1537-average annual amount of savings required to achieve the
1538-goals for the applicable 4-year plan period. If there is
1539-not clear and convincing evidence that achieving the
1540-savings goals specified in paragraph (b-5) or (b-15) of
1541-this Section is possible both cost-effectively and within
1542-
1543-
1544-the expenditure limits in subsection (m), such savings
1545-goals shall not be reduced. Except as provided in
1546-subsection (m) of this Section, annual increases in
1547-cumulative persisting annual savings goals during the
1548-applicable 4-year plan period shall not be reduced to
1549-amounts that are less than the maximum amount of
1550-cumulative persisting annual savings that is forecast to
1551-be cost-effectively achievable during the 4-year plan
1552-period. The Commission shall review any proposed goal
1553-reduction as part of its review and approval of the
1554-utility's proposed plan.
1555-(3) No later than March 1, 2025, each electric utility
1556-shall file a 4-year energy efficiency plan commencing on
1557-January 1, 2026 that is designed to achieve the cumulative
1558-persisting annual savings goals specified in paragraphs
1559-(9) through (12) of subsection (b-5) of this Section or in
1560-paragraphs (9) through (12) of subsection (b-15) of this
1561-Section, as applicable, through implementation of energy
1562-efficiency measures; however, the goals may be reduced if
1563-either (1) clear and convincing evidence demonstrates,
1564-through independent analysis, that the expenditure limits
1565-in subsection (m) of this Section preclude full
1566-achievement of the goals or (2) each of the following
1567-conditions are met: (A) the plan's analysis and forecasts
1568-of the utility's ability to acquire energy savings
1569-demonstrate by clear and convincing evidence and through
1570-
1571-
1572-independent analysis that achievement of such goals is not
1573-cost effective; and (B) the amount of energy savings
1574-achieved by the utility as determined by the independent
1575-evaluator for the most recent year for which savings have
1576-been evaluated preceding the plan filing was less than the
1577-average annual amount of savings required to achieve the
1578-goals for the applicable 4-year plan period. If there is
1579-not clear and convincing evidence that achieving the
1580-savings goals specified in paragraphs (b-5) or (b-15) of
1581-this Section is possible both cost-effectively and within
1582-the expenditure limits in subsection (m), such savings
1583-goals shall not be reduced. Except as provided in
1584-subsection (m) of this Section, annual increases in
1585-cumulative persisting annual savings goals during the
1586-applicable 4-year plan period shall not be reduced to
1587-amounts that are less than the maximum amount of
1588-cumulative persisting annual savings that is forecast to
1589-be cost-effectively achievable during the 4-year plan
1590-period. The Commission shall review any proposed goal
1591-reduction as part of its review and approval of the
1592-utility's proposed plan.
1593-(4) No later than March 1, 2029, and every 4 years
1594-thereafter, each electric utility shall file a 4-year
1595-energy efficiency plan commencing on January 1, 2030, and
1596-every 4 years thereafter, respectively, that is designed
1597-to achieve the cumulative persisting annual savings goals
1598-
1599-
1600-established by the Illinois Commerce Commission pursuant
1601-to direction of subsections (b-5) and (b-15) of this
1602-Section, as applicable, through implementation of energy
1603-efficiency measures; however, the goals may be reduced if
1604-either (1) clear and convincing evidence and independent
1605-analysis demonstrates that the expenditure limits in
1606-subsection (m) of this Section preclude full achievement
1607-of the goals or (2) each of the following conditions are
1608-met: (A) the plan's analysis and forecasts of the
1609-utility's ability to acquire energy savings demonstrate by
1610-clear and convincing evidence and through independent
1611-analysis that achievement of such goals is not
1612-cost-effective; and (B) the amount of energy savings
1613-achieved by the utility as determined by the independent
1614-evaluator for the most recent year for which savings have
1615-been evaluated preceding the plan filing was less than the
1616-average annual amount of savings required to achieve the
1617-goals for the applicable 4-year plan period. If there is
1618-not clear and convincing evidence that achieving the
1619-savings goals specified in paragraphs (b-5) or (b-15) of
1620-this Section is possible both cost-effectively and within
1621-the expenditure limits in subsection (m), such savings
1622-goals shall not be reduced. Except as provided in
1623-subsection (m) of this Section, annual increases in
1624-cumulative persisting annual savings goals during the
1625-applicable 4-year plan period shall not be reduced to
1626-
1627-
1628-amounts that are less than the maximum amount of
1629-cumulative persisting annual savings that is forecast to
1630-be cost-effectively achievable during the 4-year plan
1631-period. The Commission shall review any proposed goal
1632-reduction as part of its review and approval of the
1633-utility's proposed plan.
1634-Each utility's plan shall set forth the utility's
1635-proposals to meet the energy efficiency standards identified
1636-in subsection (b-5) or (b-15), as applicable and as such
1637-standards may have been modified under this subsection (f),
1638-taking into account the unique circumstances of the utility's
1639-service territory. For those plans commencing on January 1,
1640-2018, the Commission shall seek public comment on the
1641-utility's plan and shall issue an order approving or
1642-disapproving each plan no later than 105 days after June 1,
1643-2017 (the effective date of Public Act 99-906). For those
1644-plans commencing after December 31, 2021, the Commission shall
1645-seek public comment on the utility's plan and shall issue an
1646-order approving or disapproving each plan within 6 months
1647-after its submission. If the Commission disapproves a plan,
1648-the Commission shall, within 30 days, describe in detail the
1649-reasons for the disapproval and describe a path by which the
1650-utility may file a revised draft of the plan to address the
1651-Commission's concerns satisfactorily. If the utility does not
1652-refile with the Commission within 60 days, the utility shall
1653-be subject to penalties at a rate of $100,000 per day until the
1654-
1655-
1656-plan is filed. This process shall continue, and penalties
1657-shall accrue, until the utility has successfully filed a
1658-portfolio of energy efficiency and demand-response measures.
1659-Penalties shall be deposited into the Energy Efficiency Trust
1660-Fund.
1661-(g) In submitting proposed plans and funding levels under
1662-subsection (f) of this Section to meet the savings goals
1663-identified in subsection (b-5) or (b-15) of this Section, as
1664-applicable, the utility shall:
1665-(1) Demonstrate that its proposed energy efficiency
1666-measures will achieve the applicable requirements that are
1667-identified in subsection (b-5) or (b-15) of this Section,
1668-as modified by subsection (f) of this Section.
1669-(2) (Blank).
1670-(2.5) Demonstrate consideration of program options for
1671-(A) advancing new building codes, appliance standards, and
1672-municipal regulations governing existing and new building
1673-efficiency improvements and (B) supporting efforts to
1674-improve compliance with new building codes, appliance
1675-standards and municipal regulations, as potentially
1676-cost-effective means of acquiring energy savings to count
1677-toward savings goals.
1678-(3) Demonstrate that its overall portfolio of
1679-measures, not including low-income programs described in
1680-subsection (c) of this Section, is cost-effective using
1681-the total resource cost test or complies with paragraphs
1682-
1683-
1684-(1) through (3) of subsection (f) of this Section and
1685-represents a diverse cross-section of opportunities for
1686-customers of all rate classes, other than those customers
1687-described in subsection (l) of this Section, to
1688-participate in the programs. Individual measures need not
1689-be cost effective.
1690-(3.5) Demonstrate that the utility's plan integrates
1691-the delivery of energy efficiency programs with natural
1692-gas efficiency programs, programs promoting distributed
1693-solar, programs promoting demand response and other
1694-efforts to address bill payment issues, including, but not
1695-limited to, LIHEAP and the Percentage of Income Payment
1696-Plan, to the extent such integration is practical and has
1697-the potential to enhance customer engagement, minimize
1698-market confusion, or reduce administrative costs.
1699-(4) Present a third-party energy efficiency
1700-implementation program subject to the following
1701-requirements:
1702-(A) beginning with the year commencing January 1,
1703-2019, electric utilities that serve more than
1704-3,000,000 retail customers in the State shall fund
1705-third-party energy efficiency programs in an amount
1706-that is no less than $25,000,000 per year, and
1707-electric utilities that serve less than 3,000,000
1708-retail customers but more than 500,000 retail
1709-customers in the State shall fund third-party energy
1710-
1711-
1712-efficiency programs in an amount that is no less than
1713-$8,350,000 per year;
1714-(B) during 2018, the utility shall conduct a
1715-solicitation process for purposes of requesting
1716-proposals from third-party vendors for those
1717-third-party energy efficiency programs to be offered
1718-during one or more of the years commencing January 1,
1719-2019, January 1, 2020, and January 1, 2021; for those
1720-multi-year plans commencing on January 1, 2022 and
1721-January 1, 2026, the utility shall conduct a
1722-solicitation process during 2021 and 2025,
1723-respectively, for purposes of requesting proposals
1724-from third-party vendors for those third-party energy
1725-efficiency programs to be offered during one or more
1726-years of the respective multi-year plan period; for
1727-each solicitation process, the utility shall identify
1728-the sector, technology, or geographical area for which
1729-it is seeking requests for proposals; the solicitation
1730-process must be either for programs that fill gaps in
1731-the utility's program portfolio and for programs that
1732-target low-income customers, business sectors,
1733-building types, geographies, or other specific parts
1734-of its customer base with initiatives that would be
1735-more effective at reaching these customer segments
1736-than the utilities' programs filed in its energy
1737-efficiency plans;
1738-
1739-
1740-(C) the utility shall propose the bidder
1741-qualifications, performance measurement process, and
1742-contract structure, which must include a performance
1743-payment mechanism and general terms and conditions;
1744-the proposed qualifications, process, and structure
1745-shall be subject to Commission approval; and
1746-(D) the utility shall retain an independent third
1747-party to score the proposals received through the
1748-solicitation process described in this paragraph (4),
1749-rank them according to their cost per lifetime
1750-kilowatt-hours saved, and assemble the portfolio of
1751-third-party programs.
1752-The electric utility shall recover all costs
1753-associated with Commission-approved, third-party
1754-administered programs regardless of the success of those
1755-programs.
1756-(4.5) Implement cost-effective demand-response
1757-measures to reduce peak demand by 0.1% over the prior year
1758-for eligible retail customers, as defined in Section
1759-16-111.5 of this Act, and for customers that elect hourly
1760-service from the utility pursuant to Section 16-107 of
1761-this Act, provided those customers have not been declared
1762-competitive. This requirement continues until December 31,
1763-2026.
1764-(5) Include a proposed or revised cost-recovery tariff
1765-mechanism, as provided for under subsection (d) of this
1766-
1767-
1768-Section, to fund the proposed energy efficiency and
1769-demand-response measures and to ensure the recovery of the
1770-prudently and reasonably incurred costs of
1771-Commission-approved programs.
1772-(6) Provide for an annual independent evaluation of
1773-the performance of the cost-effectiveness of the utility's
1774-portfolio of measures, as well as a full review of the
1775-multi-year plan results of the broader net program impacts
1776-and, to the extent practical, for adjustment of the
1777-measures on a going-forward basis as a result of the
1778-evaluations. The resources dedicated to evaluation shall
1779-not exceed 3% of portfolio resources in any given year.
1780-(7) For electric utilities that serve more than
1781-3,000,000 retail customers in the State:
1782-(A) Through December 31, 2025, provide for an
1783-adjustment to the return on equity component of the
1784-utility's weighted average cost of capital calculated
1785-under subsection (d) of this Section:
1786-(i) If the independent evaluator determines
1787-that the utility achieved a cumulative persisting
1788-annual savings that is less than the applicable
1789-annual incremental goal, then the return on equity
1790-component shall be reduced by a maximum of 200
1791-basis points in the event that the utility
1792-achieved no more than 75% of such goal. If the
1793-utility achieved more than 75% of the applicable
1794-
1795-
1796-annual incremental goal but less than 100% of such
1797-goal, then the return on equity component shall be
1798-reduced by 8 basis points for each percent by
1799-which the utility failed to achieve the goal.
1800-(ii) If the independent evaluator determines
1801-that the utility achieved a cumulative persisting
1802-annual savings that is more than the applicable
1803-annual incremental goal, then the return on equity
1804-component shall be increased by a maximum of 200
1805-basis points in the event that the utility
1806-achieved at least 125% of such goal. If the
1807-utility achieved more than 100% of the applicable
1808-annual incremental goal but less than 125% of such
1809-goal, then the return on equity component shall be
1810-increased by 8 basis points for each percent by
1811-which the utility achieved above the goal. If the
1812-applicable annual incremental goal was reduced
1813-under paragraph (1) or (2) of subsection (f) of
1814-this Section, then the following adjustments shall
1815-be made to the calculations described in this item
1816-(ii):
1817-(aa) the calculation for determining
1818-achievement that is at least 125% of the
1819-applicable annual incremental goal shall use
1820-the unreduced applicable annual incremental
1821-goal to set the value; and
1822-
1823-
1824-(bb) the calculation for determining
1825-achievement that is less than 125% but more
1826-than 100% of the applicable annual incremental
1827-goal shall use the reduced applicable annual
1828-incremental goal to set the value for 100%
1829-achievement of the goal and shall use the
1830-unreduced goal to set the value for 125%
1831-achievement. The 8 basis point value shall
1832-also be modified, as necessary, so that the
1833-200 basis points are evenly apportioned among
1834-each percentage point value between 100% and
1835-125% achievement.
1836-(B) For the period January 1, 2026 through
1837-December 31, 2029 and in all subsequent 4-year
1838-periods, provide for an adjustment to the return on
1839-equity component of the utility's weighted average
1840-cost of capital calculated under subsection (d) of
1841-this Section:
1842-(i) If the independent evaluator determines
1843-that the utility achieved a cumulative persisting
1844-annual savings that is less than the applicable
1845-annual incremental goal, then the return on equity
1846-component shall be reduced by a maximum of 200
1847-basis points in the event that the utility
1848-achieved no more than 66% of such goal. If the
1849-utility achieved more than 66% of the applicable
1850-
1851-
1852-annual incremental goal but less than 100% of such
1853-goal, then the return on equity component shall be
1854-reduced by 6 basis points for each percent by
1855-which the utility failed to achieve the goal.
1856-(ii) If the independent evaluator determines
1857-that the utility achieved a cumulative persisting
1858-annual savings that is more than the applicable
1859-annual incremental goal, then the return on equity
1860-component shall be increased by a maximum of 200
1861-basis points in the event that the utility
1862-achieved at least 134% of such goal. If the
1863-utility achieved more than 100% of the applicable
1864-annual incremental goal but less than 134% of such
1865-goal, then the return on equity component shall be
1866-increased by 6 basis points for each percent by
1867-which the utility achieved above the goal. If the
1868-applicable annual incremental goal was reduced
1869-under paragraph (3) of subsection (f) of this
1870-Section, then the following adjustments shall be
1871-made to the calculations described in this item
1872-(ii):
1873-(aa) the calculation for determining
1874-achievement that is at least 134% of the
1875-applicable annual incremental goal shall use
1876-the unreduced applicable annual incremental
1877-goal to set the value; and
1878-
1879-
1880-(bb) the calculation for determining
1881-achievement that is less than 134% but more
1882-than 100% of the applicable annual incremental
1883-goal shall use the reduced applicable annual
1884-incremental goal to set the value for 100%
1885-achievement of the goal and shall use the
1886-unreduced goal to set the value for 134%
1887-achievement. The 6 basis point value shall
1888-also be modified, as necessary, so that the
1889-200 basis points are evenly apportioned among
1890-each percentage point value between 100% and
1891-134% achievement.
1892-(C) Notwithstanding the provisions of
1893-subparagraphs (A) and (B) of this paragraph (7), if
1894-the applicable annual incremental goal for an electric
1895-utility is ever less than 0.6% of deemed average
1896-weather normalized sales of electric power and energy
1897-during calendar years 2014, 2015, and 2016, an
1898-adjustment to the return on equity component of the
1899-utility's weighted average cost of capital calculated
1900-under subsection (d) of this Section shall be made as
1901-follows:
1902-(i) If the independent evaluator determines
1903-that the utility achieved a cumulative persisting
1904-annual savings that is less than would have been
1905-achieved had the applicable annual incremental
1906-
1907-
1908-goal been achieved, then the return on equity
1909-component shall be reduced by a maximum of 200
1910-basis points if the utility achieved no more than
1911-75% of its applicable annual total savings
1912-requirement as defined in paragraph (7.5) of this
1913-subsection. If the utility achieved more than 75%
1914-of the applicable annual total savings requirement
1915-but less than 100% of such goal, then the return on
1916-equity component shall be reduced by 8 basis
1917-points for each percent by which the utility
1918-failed to achieve the goal.
1919-(ii) If the independent evaluator determines
1920-that the utility achieved a cumulative persisting
1921-annual savings that is more than would have been
1922-achieved had the applicable annual incremental
1923-goal been achieved, then the return on equity
1924-component shall be increased by a maximum of 200
1925-basis points if the utility achieved at least 125%
1926-of its applicable annual total savings
1927-requirement. If the utility achieved more than
1928-100% of the applicable annual total savings
1929-requirement but less than 125% of such goal, then
1930-the return on equity component shall be increased
1931-by 8 basis points for each percent by which the
1932-utility achieved above the applicable annual total
1933-savings requirement. If the applicable annual
1934-
1935-
1936-incremental goal was reduced under paragraph (1)
1937-or (2) of subsection (f) of this Section, then the
1938-following adjustments shall be made to the
1939-calculations described in this item (ii):
1940-(aa) the calculation for determining
1941-achievement that is at least 125% of the
1942-applicable annual total savings requirement
1943-shall use the unreduced applicable annual
1944-incremental goal to set the value; and
1945-(bb) the calculation for determining
1946-achievement that is less than 125% but more
1947-than 100% of the applicable annual total
1948-savings requirement shall use the reduced
1949-applicable annual incremental goal to set the
1950-value for 100% achievement of the goal and
1951-shall use the unreduced goal to set the value
1952-for 125% achievement. The 8 basis point value
1953-shall also be modified, as necessary, so that
1954-the 200 basis points are evenly apportioned
1955-among each percentage point value between 100%
1956-and 125% achievement.
1957-(7.5) For purposes of this Section, the term
1958-"applicable annual incremental goal" means the difference
1959-between the cumulative persisting annual savings goal for
1960-the calendar year that is the subject of the independent
1961-evaluator's determination and the cumulative persisting
1962-
1963-
1964-annual savings goal for the immediately preceding calendar
1965-year, as such goals are defined in subsections (b-5) and
1966-(b-15) of this Section and as these goals may have been
1967-modified as provided for under subsection (b-20) and
1968-paragraphs (1) through (3) of subsection (f) of this
1969-Section. Under subsections (b), (b-5), (b-10), and (b-15)
1970-of this Section, a utility must first replace energy
1971-savings from measures that have expired before any
1972-progress towards achievement of its applicable annual
1973-incremental goal may be counted. Savings may expire
1974-because measures installed in previous years have reached
1975-the end of their lives, because measures installed in
1976-previous years are producing lower savings in the current
1977-year than in the previous year, or for other reasons
1978-identified by independent evaluators. Notwithstanding
1979-anything else set forth in this Section, the difference
1980-between the actual annual incremental savings achieved in
1981-any given year, including the replacement of energy
1982-savings that have expired, and the applicable annual
1983-incremental goal shall not affect adjustments to the
1984-return on equity for subsequent calendar years under this
1985-subsection (g).
1986-In this Section, "applicable annual total savings
1987-requirement" means the total amount of new annual savings
1988-that the utility must achieve in any given year to achieve
1989-the applicable annual incremental goal. This is equal to
1990-
1991-
1992-the applicable annual incremental goal plus the total new
1993-annual savings that are required to replace savings that
1994-expired in or at the end of the previous year.
1995-(8) For electric utilities that serve less than
1996-3,000,000 retail customers but more than 500,000 retail
1997-customers in the State:
1998-(A) Through December 31, 2025, the applicable
1999-annual incremental goal shall be compared to the
2000-annual incremental savings as determined by the
2001-independent evaluator.
2002-(i) The return on equity component shall be
2003-reduced by 8 basis points for each percent by
2004-which the utility did not achieve 84.4% of the
2005-applicable annual incremental goal.
2006-(ii) The return on equity component shall be
2007-increased by 8 basis points for each percent by
2008-which the utility exceeded 100% of the applicable
2009-annual incremental goal.
2010-(iii) The return on equity component shall not
2011-be increased or decreased if the annual
2012-incremental savings as determined by the
2013-independent evaluator is greater than 84.4% of the
2014-applicable annual incremental goal and less than
2015-100% of the applicable annual incremental goal.
2016-(iv) The return on equity component shall not
2017-be increased or decreased by an amount greater
2018-
2019-
2020-than 200 basis points pursuant to this
2021-subparagraph (A).
2022-(B) For the period of January 1, 2026 through
2023-December 31, 2029 and in all subsequent 4-year
2024-periods, the applicable annual incremental goal shall
2025-be compared to the annual incremental savings as
2026-determined by the independent evaluator.
2027-(i) The return on equity component shall be
2028-reduced by 6 basis points for each percent by
2029-which the utility did not achieve 100% of the
2030-applicable annual incremental goal.
2031-(ii) The return on equity component shall be
2032-increased by 6 basis points for each percent by
2033-which the utility exceeded 100% of the applicable
2034-annual incremental goal.
2035-(iii) The return on equity component shall not
2036-be increased or decreased by an amount greater
2037-than 200 basis points pursuant to this
2038-subparagraph (B).
2039-(C) Notwithstanding provisions in subparagraphs
2040-(A) and (B) of paragraph (7) of this subsection, if the
2041-applicable annual incremental goal for an electric
2042-utility is ever less than 0.6% of deemed average
2043-weather normalized sales of electric power and energy
2044-during calendar years 2014, 2015 and 2016, an
2045-adjustment to the return on equity component of the
2046-
2047-
2048-utility's weighted average cost of capital calculated
2049-under subsection (d) of this Section shall be made as
2050-follows:
2051-(i) The return on equity component shall be
2052-reduced by 8 basis points for each percent by
2053-which the utility did not achieve 100% of the
2054-applicable annual total savings requirement.
2055-(ii) The return on equity component shall be
2056-increased by 8 basis points for each percent by
2057-which the utility exceeded 100% of the applicable
2058-annual total savings requirement.
2059-(iii) The return on equity component shall not
2060-be increased or decreased by an amount greater
2061-than 200 basis points pursuant to this
2062-subparagraph (C).
2063-(D) If the applicable annual incremental goal was
2064-reduced under paragraph (1), (2), (3), or (4) of
2065-subsection (f) of this Section, then the following
2066-adjustments shall be made to the calculations
2067-described in subparagraphs (A), (B), and (C) of this
2068-paragraph (8):
2069-(i) The calculation for determining
2070-achievement that is at least 125% or 134%, as
2071-applicable, of the applicable annual incremental
2072-goal or the applicable annual total savings
2073-requirement, as applicable, shall use the
2074-
2075-
2076-unreduced applicable annual incremental goal to
2077-set the value.
2078-(ii) For the period through December 31, 2025,
2079-the calculation for determining achievement that
2080-is less than 125% but more than 100% of the
2081-applicable annual incremental goal or the
2082-applicable annual total savings requirement, as
2083-applicable, shall use the reduced applicable
2084-annual incremental goal to set the value for 100%
2085-achievement of the goal and shall use the
2086-unreduced goal to set the value for 125%
2087-achievement. The 8 basis point value shall also be
2088-modified, as necessary, so that the 200 basis
2089-points are evenly apportioned among each
2090-percentage point value between 100% and 125%
2091-achievement.
2092-(iii) For the period of January 1, 2026
2093-through December 31, 2029 and all subsequent
2094-4-year periods, the calculation for determining
2095-achievement that is less than 125% or 134%, as
2096-applicable, but more than 100% of the applicable
2097-annual incremental goal or the applicable annual
2098-total savings requirement, as applicable, shall
2099-use the reduced applicable annual incremental goal
2100-to set the value for 100% achievement of the goal
2101-and shall use the unreduced goal to set the value
2102-
2103-
2104-for 125% achievement. The 6 basis-point value or 8
2105-basis-point value, as applicable, shall also be
2106-modified, as necessary, so that the 200 basis
2107-points are evenly apportioned among each
2108-percentage point value between 100% and 125% or
2109-between 100% and 134% achievement, as applicable.
2110-(9) The utility shall submit the energy savings data
2111-to the independent evaluator no later than 30 days after
2112-the close of the plan year. The independent evaluator
2113-shall determine the cumulative persisting annual savings
2114-for a given plan year, as well as an estimate of job
2115-impacts and other macroeconomic impacts of the efficiency
2116-programs for that year, no later than 120 days after the
2117-close of the plan year. The utility shall submit an
2118-informational filing to the Commission no later than 160
2119-days after the close of the plan year that attaches the
2120-independent evaluator's final report identifying the
2121-cumulative persisting annual savings for the year and
2122-calculates, under paragraph (7) or (8) of this subsection
2123-(g), as applicable, any resulting change to the utility's
2124-return on equity component of the weighted average cost of
2125-capital applicable to the next plan year beginning with
2126-the January monthly billing period and extending through
2127-the December monthly billing period. However, if the
2128-utility recovers the costs incurred under this Section
2129-under paragraphs (2) and (3) of subsection (d) of this
2130-
2131-
2132-Section, then the utility shall not be required to submit
2133-such informational filing, and shall instead submit the
2134-information that would otherwise be included in the
2135-informational filing as part of its filing under paragraph
2136-(3) of such subsection (d) that is due on or before June 1
2137-of each year.
2138-For those utilities that must submit the informational
2139-filing, the Commission may, on its own motion or by
2140-petition, initiate an investigation of such filing,
2141-provided, however, that the utility's proposed return on
2142-equity calculation shall be deemed the final, approved
2143-calculation on December 15 of the year in which it is filed
2144-unless the Commission enters an order on or before
2145-December 15, after notice and hearing, that modifies such
2146-calculation consistent with this Section.
2147-The adjustments to the return on equity component
2148-described in paragraphs (7) and (8) of this subsection (g)
2149-shall be applied as described in such paragraphs through a
2150-separate tariff mechanism, which shall be filed by the
2151-utility under subsections (f) and (g) of this Section.
2152-(9.5) The utility must demonstrate how it will ensure
2153-that program implementation contractors and energy
2154-efficiency installation vendors will promote workforce
2155-equity and quality jobs.
2156-(9.6) Utilities shall collect data necessary to ensure
2157-compliance with paragraph (9.5) no less than quarterly and
2158-
2159-
2160-shall communicate progress toward compliance with
2161-paragraph (9.5) to program implementation contractors and
2162-energy efficiency installation vendors no less than
2163-quarterly. Utilities shall work with relevant vendors,
2164-providing education, training, and other resources needed
2165-to ensure compliance and, where necessary, adjusting or
2166-terminating work with vendors that cannot assist with
2167-compliance.
2168-(10) Utilities required to implement efficiency
2169-programs under subsections (b-5) and (b-10) shall report
2170-annually to the Illinois Commerce Commission and the
2171-General Assembly on how hiring, contracting, job training,
2172-and other practices related to its energy efficiency
2173-programs enhance the diversity of vendors working on such
2174-programs. These reports must include data on vendor and
2175-employee diversity, including data on the implementation
2176-of paragraphs (9.5) and (9.6). If the utility is not
2177-meeting the requirements of paragraphs (9.5) and (9.6),
2178-the utility shall submit a plan to adjust their activities
2179-so that they meet the requirements of paragraphs (9.5) and
2180-(9.6) within the following year.
2181-(h) No more than 4% of energy efficiency and
2182-demand-response program revenue may be allocated for research,
2183-development, or pilot deployment of new equipment or measures.
2184-Electric utilities shall work with interested stakeholders to
2185-formulate a plan for how these funds should be spent,
2186-
2187-
2188-incorporate statewide approaches for these allocations, and
2189-file a 4-year plan that demonstrates that collaboration. If a
2190-utility files a request for modified annual energy savings
2191-goals with the Commission, then a utility shall forgo spending
2192-portfolio dollars on research and development proposals.
2193-(i) When practicable, electric utilities shall incorporate
2194-advanced metering infrastructure data into the planning,
2195-implementation, and evaluation of energy efficiency measures
2196-and programs, subject to the data privacy and confidentiality
2197-protections of applicable law.
2198-(j) The independent evaluator shall follow the guidelines
2199-and use the savings set forth in Commission-approved energy
2200-efficiency policy manuals and technical reference manuals, as
2201-each may be updated from time to time. Until such time as
2202-measure life values for energy efficiency measures implemented
2203-for low-income households under subsection (c) of this Section
2204-are incorporated into such Commission-approved manuals, the
2205-low-income measures shall have the same measure life values
2206-that are established for same measures implemented in
2207-households that are not low-income households.
2208-(k) Notwithstanding any provision of law to the contrary,
2209-an electric utility subject to the requirements of this
2210-Section may file a tariff cancelling an automatic adjustment
2211-clause tariff in effect under this Section or Section 8-103,
2212-which shall take effect no later than one business day after
2213-the date such tariff is filed. Thereafter, the utility shall
2214-
2215-
2216-be authorized to defer and recover its expenditures incurred
2217-under this Section through a new tariff authorized under
2218-subsection (d) of this Section or in the utility's next rate
2219-case under Article IX or Section 16-108.5 of this Act, with
2220-interest at an annual rate equal to the utility's weighted
2221-average cost of capital as approved by the Commission in such
2222-case. If the utility elects to file a new tariff under
2223-subsection (d) of this Section, the utility may file the
2224-tariff within 10 days after June 1, 2017 (the effective date of
2225-Public Act 99-906), and the cost inputs to such tariff shall be
2226-based on the projected costs to be incurred by the utility
2227-during the calendar year in which the new tariff is filed and
2228-that were not recovered under the tariff that was cancelled as
2229-provided for in this subsection. Such costs shall include
2230-those incurred or to be incurred by the utility under its
2231-multi-year plan approved under subsections (f) and (g) of this
2232-Section, including, but not limited to, projected capital
2233-investment costs and projected regulatory asset balances with
2234-correspondingly updated depreciation and amortization reserves
2235-and expense. The Commission shall, after notice and hearing,
2236-approve, or approve with modification, such tariff and cost
2237-inputs no later than 75 days after the utility filed the
2238-tariff, provided that such approval, or approval with
2239-modification, shall be consistent with the provisions of this
2240-Section to the extent they do not conflict with this
2241-subsection (k). The tariff approved by the Commission shall
2242-
2243-
2244-take effect no later than 5 days after the Commission enters
2245-its order approving the tariff.
2246-No later than 60 days after the effective date of the
2247-tariff cancelling the utility's automatic adjustment clause
2248-tariff, the utility shall file a reconciliation that
2249-reconciles the moneys collected under its automatic adjustment
2250-clause tariff with the costs incurred during the period
2251-beginning June 1, 2016 and ending on the date that the electric
2252-utility's automatic adjustment clause tariff was cancelled. In
2253-the event the reconciliation reflects an under-collection, the
2254-utility shall recover the costs as specified in this
2255-subsection (k). If the reconciliation reflects an
2256-over-collection, the utility shall apply the amount of such
2257-over-collection as a one-time credit to retail customers'
2258-bills.
2259-(l) For the calendar years covered by a multi-year plan
2260-commencing after December 31, 2017, subsections (a) through
2261-(j) of this Section do not apply to eligible large private
2262-energy customers that have chosen to opt out of multi-year
2263-plans consistent with this subsection (1).
2264-(1) For purposes of this subsection (l), "eligible
2265-large private energy customer" means any retail customers,
2266-except for federal, State, municipal, and other public
2267-customers, of an electric utility that serves more than
2268-3,000,000 retail customers, except for federal, State,
2269-municipal and other public customers, in the State and
2270-
2271-
2272-whose total highest 30 minute demand was more than 10,000
2273-kilowatts, or any retail customers of an electric utility
2274-that serves less than 3,000,000 retail customers but more
2275-than 500,000 retail customers in the State and whose total
2276-highest 15 minute demand was more than 10,000 kilowatts.
2277-For purposes of this subsection (l), "retail customer" has
2278-the meaning set forth in Section 16-102 of this Act.
2279-However, for a business entity with multiple sites located
2280-in the State, where at least one of those sites qualifies
2281-as an eligible large private energy customer, then any of
2282-that business entity's sites, properly identified on a
2283-form for notice, shall be considered eligible large
2284-private energy customers for the purposes of this
2285-subsection (l). A determination of whether this subsection
2286-is applicable to a customer shall be made for each
2287-multi-year plan beginning after December 31, 2017. The
2288-criteria for determining whether this subsection (l) is
2289-applicable to a retail customer shall be based on the 12
2290-consecutive billing periods prior to the start of the
2291-first year of each such multi-year plan.
2292-(2) Within 45 days after September 15, 2021 (the
2293-effective date of Public Act 102-662), the Commission
2294-shall prescribe the form for notice required for opting
2295-out of energy efficiency programs. The notice must be
2296-submitted to the retail electric utility 12 months before
2297-the next energy efficiency planning cycle. However, within
2298-
2299-
2300-120 days after the Commission's initial issuance of the
2301-form for notice, eligible large private energy customers
2302-may submit a form for notice to an electric utility. The
2303-form for notice for opting out of energy efficiency
2304-programs shall include all of the following:
2305-(A) a statement indicating that the customer has
2306-elected to opt out;
2307-(B) the account numbers for the customer accounts
2308-to which the opt out shall apply;
2309-(C) the mailing address associated with the
2310-customer accounts identified under subparagraph (B);
2311-(D) an American Society of Heating, Refrigerating,
2312-and Air-Conditioning Engineers (ASHRAE) level 2 or
2313-higher audit report conducted by an independent
2314-third-party expert identifying cost-effective energy
2315-efficiency project opportunities that could be
2316-invested in over the next 10 years. A retail customer
2317-with specialized processes may utilize a self-audit
2318-process in lieu of the ASHRAE audit;
2319-(E) a description of the customer's plans to
2320-reallocate the funds toward internal energy efficiency
2321-efforts identified in the subparagraph (D) report,
2322-including, but not limited to: (i) strategic energy
2323-management or other programs, including descriptions
2324-of targeted buildings, equipment and operations; (ii)
2325-eligible energy efficiency measures; and (iii)
2326-
2327-
2328-expected energy savings, itemized by technology. If
2329-the subparagraph (D) audit report identifies that the
2330-customer currently utilizes the best available energy
2331-efficient technology, equipment, programs, and
2332-operations, the customer may provide a statement that
2333-more efficient technology, equipment, programs, and
2334-operations are not reasonably available as a means of
2335-satisfying this subparagraph (E); and
2336-(F) the effective date of the opt out, which will
2337-be the next January 1 following notice of the opt out.
2338-(3) Upon receipt of a properly and timely noticed
2339-request for opt out submitted by an eligible large private
2340-energy customer, the retail electric utility shall grant
2341-the request, file the request with the Commission and,
2342-beginning January 1 of the following year, the opted out
2343-customer shall no longer be assessed the costs of the plan
2344-and shall be prohibited from participating in that 4-year
2345-plan cycle to give the retail utility the certainty to
2346-design program plan proposals.
2347-(4) Upon a customer's election to opt out under
2348-paragraphs (1) and (2) of this subsection (l) and
2349-commencing on the effective date of said opt out, the
2350-account properly identified in the customer's notice under
2351-paragraph (2) shall not be subject to any cost recovery
2352-and shall not be eligible to participate in, or directly
2353-benefit from, compliance with energy efficiency cumulative
2354-
2355-
2356-persisting savings requirements under subsections (a)
2357-through (j).
2358-(5) A utility's cumulative persisting annual savings
2359-targets will exclude any opted out load.
2360-(6) The request to opt out is only valid for the
2361-requested plan cycle. An eligible large private energy
2362-customer must also request to opt out for future energy
2363-plan cycles, otherwise the customer will be included in
2364-the future energy plan cycle.
2365-(m) Notwithstanding the requirements of this Section, as
2366-part of a proceeding to approve a multi-year plan under
2367-subsections (f) and (g) of this Section if the multi-year plan
2368-has been designed to maximize savings, but does not meet the
2369-cost cap limitations of this Section, the Commission shall
2370-reduce the amount of energy efficiency measures implemented
2371-for any single year, and whose costs are recovered under
2372-subsection (d) of this Section, by an amount necessary to
2373-limit the estimated average net increase due to the cost of the
2374-measures to no more than
2375-(1) 3.5% for each of the 4 years beginning January 1,
2376-2018,
2377-(2) (blank),
2378-(3) 4% for each of the 4 years beginning January 1,
2379-2022,
2380-(4) 4.25% for the 4 years beginning January 1, 2026,
2381-and
2382-
2383-
2384-(5) 4.25% plus an increase sufficient to account for
2385-the rate of inflation between January 1, 2026 and January
2386-1 of the first year of each subsequent 4-year plan cycle,
2387-of the average amount paid per kilowatthour by residential
2388-eligible retail customers during calendar year 2015. An
2389-electric utility may plan to spend up to 10% more in any year
2390-during an applicable multi-year plan period to
2391-cost-effectively achieve additional savings so long as the
2392-average over the applicable multi-year plan period does not
2393-exceed the percentages defined in items (1) through (5). To
2394-determine the total amount that may be spent by an electric
2395-utility in any single year, the applicable percentage of the
2396-average amount paid per kilowatthour shall be multiplied by
2397-the total amount of energy delivered by such electric utility
2398-in the calendar year 2015, adjusted to reflect the proportion
2399-of the utility's load attributable to customers that have
2400-opted out of subsections (a) through (j) of this Section under
2401-subsection (l) of this Section. For purposes of this
2402-subsection (m), the amount paid per kilowatthour includes,
2403-without limitation, estimated amounts paid for supply,
2404-transmission, distribution, surcharges, and add-on taxes. For
2405-purposes of this Section, "eligible retail customers" shall
2406-have the meaning set forth in Section 16-111.5 of this Act.
2407-Once the Commission has approved a plan under subsections (f)
2408-and (g) of this Section, no subsequent rate impact
2409-determinations shall be made.
2410-
2411-
2412-(n) A utility shall take advantage of the efficiencies
2413-available through existing Illinois Home Weatherization
2414-Assistance Program infrastructure and services, such as
2415-enrollment, marketing, quality assurance and implementation,
2416-which can reduce the need for similar services at a lower cost
2417-than utility-only programs, subject to capacity constraints at
2418-community action agencies, for both single-family and
2419-multifamily weatherization services, to the extent Illinois
2420-Home Weatherization Assistance Program community action
2421-agencies provide multifamily services. A utility's plan shall
2422-demonstrate that in formulating annual weatherization budgets,
2423-it has sought input and coordination with community action
2424-agencies regarding agencies' capacity to expand and maximize
2425-Illinois Home Weatherization Assistance Program delivery using
2426-the ratepayer dollars collected under this Section.
2427-(Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-30-23.)
2428-(220 ILCS 5/8-104)
2429-Sec. 8-104. Natural gas energy efficiency programs.
2430-(a) It is the policy of the State that natural gas
2431-utilities and the Department of Commerce and Economic
2432-Opportunity are required to use cost-effective energy
2433-efficiency to reduce direct and indirect costs to consumers.
2434-It serves the public interest to allow natural gas utilities
2435-to recover costs for reasonably and prudently incurred
2436-expenses for cost-effective energy efficiency measures.
2437-
2438-
2439-(b) For purposes of this Section, "energy efficiency"
2440-means measures that reduce the amount of energy required to
2441-achieve a given end use. "Energy efficiency" also includes
2442-measures that reduce the total Btus of electricity and natural
2443-gas needed to meet the end use or uses. "Cost-effective" means
2444-that the measures satisfy the total resource cost test which,
2445-for purposes of this Section, means a standard that is met if,
2446-for an investment in energy efficiency, the benefit-cost ratio
2447-is greater than one. The benefit-cost ratio is the ratio of the
2448-net present value of the total benefits of the measures to the
2449-net present value of the total costs as calculated over the
2450-lifetime of the measures. The total resource cost test
2451-compares the sum of avoided natural gas utility costs,
2452-representing the benefits that accrue to the system and the
2453-participant in the delivery of those efficiency measures, as
2454-well as other quantifiable societal benefits, including
2455-avoided electric utility costs, to the sum of all incremental
2456-costs of end use measures (including both utility and
2457-participant contributions), plus costs to administer, deliver,
2458-and evaluate each demand-side measure, to quantify the net
2459-savings obtained by substituting demand-side measures for
2460-supply resources. In calculating avoided costs, reasonable
2461-estimates shall be included for financial costs likely to be
2462-imposed by future regulation of emissions of greenhouse gases.
2463-The low-income programs described in item (4) of subsection
2464-(f) of this Section shall not be required to meet the total
2465-
2466-
2467-resource cost test.
2468-(c) Natural gas utilities shall implement cost-effective
2469-energy efficiency measures to meet at least the following
2470-natural gas savings requirements, which shall be based upon
2471-the total amount of gas delivered to retail customers, other
2472-than the customers described in subsection (m) of this
2473-Section, during calendar year 2009 multiplied by the
2474-applicable percentage. Natural gas utilities may comply with
2475-this Section by meeting the annual incremental savings goal in
2476-the applicable year or by showing that total cumulative annual
2477-savings within a multi-year planning period associated with
2478-measures implemented after May 31, 2011 were equal to the sum
2479-of each annual incremental savings requirement from the first
2480-day of the multi-year planning period through the last day of
2481-the multi-year planning period:
2482-(1) 0.2% by May 31, 2012;
2483-(2) an additional 0.4% by May 31, 2013, increasing
2484-total savings to .6%;
2485-(3) an additional 0.6% by May 31, 2014, increasing
2486-total savings to 1.2%;
2487-(4) an additional 0.8% by May 31, 2015, increasing
2488-total savings to 2.0%;
2489-(5) an additional 1% by May 31, 2016, increasing total
2490-savings to 3.0%;
2491-(6) an additional 1.2% by May 31, 2017, increasing
2492-total savings to 4.2%;
2493-
2494-
2495-(7) an additional 1.4% in the year commencing January
2496-1, 2018;
2497-(8) an additional 1.5% in the year commencing January
2498-1, 2019; and
2499-(9) an additional 1.5% in each 12-month period
2500-thereafter.
2501-(d) Notwithstanding the requirements of subsection (c) of
2502-this Section, a natural gas utility shall limit the amount of
2503-energy efficiency implemented in any multi-year reporting
2504-period established by subsection (f) of Section 8-104 of this
2505-Act, by an amount necessary to limit the estimated average
2506-increase in the amounts paid by retail customers in connection
2507-with natural gas service to no more than 2% in the applicable
2508-multi-year reporting period. The energy savings requirements
2509-in subsection (c) of this Section may be reduced by the
2510-Commission for the subject plan, if the utility demonstrates
2511-by substantial evidence that it is highly unlikely that the
2512-requirements could be achieved without exceeding the
2513-applicable spending limits in any multi-year reporting period.
2514-No later than September 1, 2013, the Commission shall review
2515-the limitation on the amount of energy efficiency measures
2516-implemented pursuant to this Section and report to the General
2517-Assembly, in the report required by subsection (k) of this
2518-Section, its findings as to whether that limitation unduly
2519-constrains the procurement of energy efficiency measures.
2520-(e) The provisions of this subsection (e) apply to those
2521-
2522-
2523-multi-year plans that commence prior to January 1, 2018. The
2524-utility shall utilize 75% of the available funding associated
2525-with energy efficiency programs approved by the Commission,
2526-and may outsource various aspects of program development and
2527-implementation. The remaining 25% of available funding shall
2528-be used by the Department of Commerce and Economic Opportunity
2529-to implement energy efficiency measures that achieve no less
2530-than 20% of the requirements of subsection (c) of this
2531-Section. Such measures shall be designed in conjunction with
2532-the utility and approved by the Commission. The Department may
2533-outsource development and implementation of energy efficiency
2534-measures. A minimum of 10% of the entire portfolio of
2535-cost-effective energy efficiency measures shall be procured
2536-from local government, municipal corporations, school
2537-districts, public institutions of higher education, and
2538-community college districts. Five percent of the entire
2539-portfolio of cost-effective energy efficiency measures may be
2540-granted to local government and municipal corporations for
2541-market transformation initiatives. The Department shall
2542-coordinate the implementation of these measures and shall
2543-integrate delivery of natural gas efficiency programs with
2544-electric efficiency programs delivered pursuant to Section
2545-8-103 of this Act, unless the Department can show that
2546-integration is not feasible.
2547-The apportionment of the dollars to cover the costs to
2548-implement the Department's share of the portfolio of energy
2549-
2550-
2551-efficiency measures shall be made to the Department once the
2552-Department has executed rebate agreements, grants, or
2553-contracts for energy efficiency measures and provided
2554-supporting documentation for those rebate agreements, grants,
2555-and contracts to the utility. The Department is authorized to
2556-adopt any rules necessary and prescribe procedures in order to
2557-ensure compliance by applicants in carrying out the purposes
2558-of rebate agreements for energy efficiency measures
2559-implemented by the Department made under this Section.
2560-The details of the measures implemented by the Department
2561-shall be submitted by the Department to the Commission in
2562-connection with the utility's filing regarding the energy
2563-efficiency measures that the utility implements.
2564-The portfolio of measures, administered by both the
2565-utilities and the Department, shall, in combination, be
2566-designed to achieve the annual energy savings requirements set
2567-forth in subsection (c) of this Section, as modified by
2568-subsection (d) of this Section.
2569-The utility and the Department shall agree upon a
2570-reasonable portfolio of measures and determine the measurable
2571-corresponding percentage of the savings goals associated with
2572-measures implemented by the Department.
2573-No utility shall be assessed a penalty under subsection
2574-(f) of this Section for failure to make a timely filing if that
2575-failure is the result of a lack of agreement with the
2576-Department with respect to the allocation of responsibilities
2577-
2578-
2579-or related costs or target assignments. In that case, the
2580-Department and the utility shall file their respective plans
2581-with the Commission and the Commission shall determine an
2582-appropriate division of measures and programs that meets the
2583-requirements of this Section.
2584-(e-5) The provisions of this subsection (e-5) shall be
2585-applicable to those multi-year plans that commence after
2586-December 31, 2017. Natural gas utilities shall be responsible
2587-for overseeing the design, development, and filing of their
2588-efficiency plans with the Commission and may outsource
2589-development and implementation of energy efficiency measures.
2590-A minimum of 10% of the entire portfolio of cost-effective
2591-energy efficiency measures shall be procured from local
2592-government, municipal corporations, school districts, public
2593-institutions of higher education, and community college
2594-districts. Five percent of the entire portfolio of
2595-cost-effective energy efficiency measures may be granted to
2596-local government and municipal corporations for market
2597-transformation initiatives.
2598-The utilities shall also present a portfolio of energy
2599-efficiency measures proportionate to the share of total annual
2600-utility revenues in Illinois from households at or below 150%
2601-of the poverty level. Such programs shall be targeted to
2602-households with incomes at or below 80% of area median income.
2603-(e-10) A utility providing approved energy efficiency
2604-measures in this State shall be permitted to recover costs of
2605-
2606-
2607-those measures through an automatic adjustment clause tariff
2608-filed with and approved by the Commission. The tariff shall be
2609-established outside the context of a general rate case and
2610-shall be applicable to the utility's customers other than the
2611-customers described in subsection (m) of this Section. Each
2612-year the Commission shall initiate a review to reconcile any
2613-amounts collected with the actual costs and to determine the
2614-required adjustment to the annual tariff factor to match
2615-annual expenditures.
2616-(e-15) For those multi-year plans that commence prior to
2617-January 1, 2018, each utility shall include, in its recovery
2618-of costs, the costs estimated for both the utility's and the
2619-Department's implementation of energy efficiency measures.
2620-Costs collected by the utility for measures implemented by the
2621-Department shall be submitted to the Department pursuant to
2622-Section 605-323 of the Civil Administrative Code of Illinois,
2623-shall be deposited into the Energy Efficiency Portfolio
2624-Standards Fund, and shall be used by the Department solely for
2625-the purpose of implementing these measures. A utility shall
2626-not be required to advance any moneys to the Department but
2627-only to forward such funds as it has collected. The Department
2628-shall report to the Commission on an annual basis regarding
2629-the costs actually incurred by the Department in the
2630-implementation of the measures. Any changes to the costs of
2631-energy efficiency measures as a result of plan modifications
2632-shall be appropriately reflected in amounts recovered by the
2633-
2634-
2635-utility and turned over to the Department.
2636-(f) No later than October 1, 2010, each gas utility shall
2637-file an energy efficiency plan with the Commission to meet the
2638-energy efficiency standards through May 31, 2014. No later
2639-than October 1, 2013, each gas utility shall file an energy
2640-efficiency plan with the Commission to meet the energy
2641-efficiency standards through May 31, 2017. Beginning in 2017
2642-and every 4 years thereafter, each utility shall file an
2643-energy efficiency plan with the Commission to meet the energy
2644-efficiency standards for the next applicable 4-year period
2645-beginning January 1 of the year following the filing. For
2646-those multi-year plans commencing on January 1, 2018, each
2647-utility shall file its proposed energy efficiency plan no
2648-later than 30 days after the effective date of this amendatory
2649-Act of the 99th General Assembly or May 1, 2017, whichever is
2650-later. Beginning in 2021 and every 4 years thereafter, each
2651-utility shall file its energy efficiency plan no later than
2652-March 1. If a utility does not file such a plan on or before
2653-the applicable filing deadline for the plan, then it shall
2654-face a penalty of $100,000 per day until the plan is filed.
2655-Each utility's plan shall set forth the utility's
2656-proposals to meet the utility's portion of the energy
2657-efficiency standards identified in subsection (c) of this
2658-Section, as modified by subsection (d) of this Section, taking
2659-into account the unique circumstances of the utility's service
2660-territory. For those plans commencing after December 31, 2021,
2661-
2662-
2663-the Commission shall seek public comment on the utility's plan
2664-and shall issue an order approving or disapproving each plan
2665-within 6 months after its submission. For those plans
2666-commencing on January 1, 2018, the Commission shall seek
2667-public comment on the utility's plan and shall issue an order
2668-approving or disapproving each plan no later than August 31,
2669-2017, or 105 days after the effective date of this amendatory
2670-Act of the 99th General Assembly, whichever is later. If the
2671-Commission disapproves a plan, the Commission shall, within 30
2672-days, describe in detail the reasons for the disapproval and
2673-describe a path by which the utility may file a revised draft
2674-of the plan to address the Commission's concerns
2675-satisfactorily. If the utility does not refile with the
2676-Commission within 60 days after the disapproval, the utility
2677-shall be subject to penalties at a rate of $100,000 per day
2678-until the plan is filed. This process shall continue, and
2679-penalties shall accrue, until the utility has successfully
2680-filed a portfolio of energy efficiency measures. Penalties
2681-shall be deposited into the Energy Efficiency Trust Fund and
2682-the cost of any such penalties may not be recovered from
2683-ratepayers. In submitting proposed energy efficiency plans and
2684-funding levels to meet the savings goals adopted by this Act
2685-the utility shall:
2686-(1) Demonstrate that its proposed energy efficiency
2687-measures will achieve the requirements that are identified
2688-in subsection (c) of this Section, as modified by
2689-
2690-
2691-subsection (d) of this Section.
2692-(2) Present specific proposals to implement new
2693-building and appliance standards that have been placed
2694-into effect.
2695-(3) Present estimates of the total amount paid for gas
2696-service expressed on a per therm basis associated with the
2697-proposed portfolio of measures designed to meet the
2698-requirements that are identified in subsection (c) of this
2699-Section, as modified by subsection (d) of this Section.
2700-(4) For those multi-year plans that commence prior to
2701-January 1, 2018, coordinate with the Department to present
2702-a portfolio of energy efficiency measures proportionate to
2703-the share of total annual utility revenues in Illinois
2704-from households at or below 150% of the poverty level.
2705-Such programs shall be targeted to households with incomes
2706-at or below 80% of area median income.
2707-(5) Demonstrate that its overall portfolio of energy
2708-efficiency measures, not including low-income programs
2709-described in item (4) of this subsection (f) and
2710-subsection (e-5) of this Section, are cost-effective using
2711-the total resource cost test and represent a diverse cross
2712-section of opportunities for customers of all rate classes
2713-to participate in the programs.
2714-(6) Demonstrate that a gas utility affiliated with an
2715-electric utility that is required to comply with Section
2716-8-103 or 8-103B of this Act has integrated gas and
2717-
2718-
2719-electric efficiency measures into a single program that
2720-reduces program or participant costs and appropriately
2721-allocates costs to gas and electric ratepayers. For those
2722-multi-year plans that commence prior to January 1, 2018,
2723-the Department shall integrate all gas and electric
2724-programs it delivers in any such utilities' service
2725-territories, unless the Department can show that
2726-integration is not feasible or appropriate.
2727-(7) Include a proposed cost recovery tariff mechanism
2728-to fund the proposed energy efficiency measures and to
2729-ensure the recovery of the prudently and reasonably
2730-incurred costs of Commission-approved programs.
2731-(8) Provide for quarterly status reports tracking
2732-implementation of and expenditures for the utility's
2733-portfolio of measures and, if applicable, the Department's
2734-portfolio of measures, an annual independent review, and a
2735-full independent evaluation of the multi-year results of
2736-the performance and the cost-effectiveness of the
2737-utility's and, if applicable, Department's portfolios of
2738-measures and broader net program impacts and, to the
2739-extent practical, for adjustment of the measures on a
2740-going forward basis as a result of the evaluations. The
2741-resources dedicated to evaluation shall not exceed 3% of
2742-portfolio resources in any given multi-year period.
2743-(g) No more than 3% of expenditures on energy efficiency
2744-measures may be allocated for demonstration of breakthrough
2745-
2746-
2747-equipment and devices.
2748-(h) Illinois natural gas utilities that are affiliated by
2749-virtue of a common parent company may, at the utilities'
2750-request, be considered a single natural gas utility for
2751-purposes of complying with this Section.
2752-(i) If, after 3 years, a gas utility fails to meet the
2753-efficiency standard specified in subsection (c) of this
2754-Section as modified by subsection (d), then it shall make a
2755-contribution to the Low-Income Home Energy Assistance Program.
2756-The total liability for failure to meet the goal shall be
2757-assessed as follows:
2758-(1) a large gas utility shall pay $600,000;
2759-(2) a medium gas utility shall pay $400,000; and
2760-(3) a small gas utility shall pay $200,000.
2761-For purposes of this Section, (i) a "large gas utility" is
2762-a gas utility that on December 31, 2008, served more than
2763-1,500,000 gas customers in Illinois; (ii) a "medium gas
2764-utility" is a gas utility that on December 31, 2008, served
2765-fewer than 1,500,000, but more than 500,000 gas customers in
2766-Illinois; and (iii) a "small gas utility" is a gas utility that
2767-on December 31, 2008, served fewer than 500,000 and more than
2768-100,000 gas customers in Illinois. The costs of this
2769-contribution may not be recovered from ratepayers.
2770-If a gas utility fails to meet the efficiency standard
2771-specified in subsection (c) of this Section, as modified by
2772-subsection (d) of this Section, in any 2 consecutive
2773-
2774-
2775-multi-year planning periods, then the responsibility for
2776-implementing the utility's energy efficiency measures shall be
2777-transferred to an independent program administrator selected
2778-by the Commission. Reasonable and prudent costs incurred by
2779-the independent program administrator to meet the efficiency
2780-standard specified in subsection (c) of this Section, as
2781-modified by subsection (d) of this Section, may be recovered
2782-from the customers of the affected gas utilities, other than
2783-customers described in subsection (m) of this Section. The
2784-utility shall provide the independent program administrator
2785-with all information and assistance necessary to perform the
2786-program administrator's duties including but not limited to
2787-customer, account, and energy usage data, and shall allow the
2788-program administrator to include inserts in customer bills.
2789-The utility may recover reasonable costs associated with any
2790-such assistance.
2791-(j) No utility shall be deemed to have failed to meet the
2792-energy efficiency standards to the extent any such failure is
2793-due to a failure of the Department.
2794-(k) Not later than January 1, 2012, the Commission shall
2795-develop and solicit public comment on a plan to foster
2796-statewide coordination and consistency between statutorily
2797-mandated natural gas and electric energy efficiency programs
2798-to reduce program or participant costs or to improve program
2799-performance. Not later than September 1, 2013, the Commission
2800-shall issue a report to the General Assembly containing its
2801-
2802-
2803-findings and recommendations.
2804-(l) This Section does not apply to a gas utility that on
2805-January 1, 2009, provided gas service to fewer than 100,000
2806-customers in Illinois.
2807-(m) Subsections (a) through (k) of this Section do not
2808-apply to customers of a natural gas utility that have a North
2809-American Industry Classification System code number that is
2810-22111 or any such code number beginning with the digits 31, 32,
2811-or 33 and (i) annual usage in the aggregate of 4 million therms
2812-or more within the service territory of the affected gas
2813-utility or with aggregate usage of 8 million therms or more in
2814-this State and complying with the provisions of item (l) of
2815-this subsection (m); or (ii) using natural gas as feedstock
2816-and meeting the usage requirements described in item (i) of
2817-this subsection (m), to the extent such annual feedstock usage
2818-is greater than 60% of the customer's total annual usage of
2819-natural gas.
2820-(1) Customers described in this subsection (m) of this
2821-Section shall apply, on a form approved on or before
2822-October 1, 2009 by the Department, to the Department to be
2823-designated as a self-directing customer ("SDC") or as an
2824-exempt customer using natural gas as a feedstock from
2825-which other products are made, including, but not limited
2826-to, feedstock for a hydrogen plant, on or before the 1st
2827-day of February, 2010. Thereafter, application may be made
2828-not less than 6 months before the filing date of the gas
2829-
2830-
2831-utility energy efficiency plan described in subsection (f)
2832-of this Section; however, a new customer that commences
2833-taking service from a natural gas utility after February
2834-1, 2010 may apply to become a SDC or exempt customer up to
2835-30 days after beginning service. Customers described in
2836-this subsection (m) that have not already been approved by
2837-the Department may apply to be designated a self-directing
2838-customer or exempt customer, on a form approved by the
2839-Department, between September 1, 2013 and September 30,
2840-2013. Customer applications that are approved by the
2841-Department under this amendatory Act of the 98th General
2842-Assembly shall be considered to be a self-directing
2843-customer or exempt customer, as applicable, for the
2844-current 3-year planning period effective December 1, 2013.
2845-Such application shall contain the following:
2846-(A) the customer's certification that, at the time
2847-of its application, it qualifies to be a SDC or exempt
2848-customer described in this subsection (m) of this
2849-Section;
2850-(B) in the case of a SDC, the customer's
2851-certification that it has established or will
2852-establish by the beginning of the utility's multi-year
2853-planning period commencing subsequent to the
2854-application, and will maintain for accounting
2855-purposes, an energy efficiency reserve account and
2856-that the customer will accrue funds in said account to
2857-
2858-
2859-be held for the purpose of funding, in whole or in
2860-part, energy efficiency measures of the customer's
2861-choosing, which may include, but are not limited to,
2862-projects involving combined heat and power systems
2863-that use the same energy source both for the
2864-generation of electrical or mechanical power and the
2865-production of steam or another form of useful thermal
2866-energy or the use of combustible gas produced from
2867-biomass, or both;
2868-(C) in the case of a SDC, the customer's
2869-certification that annual funding levels for the
2870-energy efficiency reserve account will be equal to 2%
2871-of the customer's cost of natural gas, composed of the
2872-customer's commodity cost and the delivery service
2873-charges paid to the gas utility, or $150,000,
2874-whichever is less;
2875-(D) in the case of a SDC, the customer's
2876-certification that the required reserve account
2877-balance will be capped at 3 years' worth of accruals
2878-and that the customer may, at its option, make further
2879-deposits to the account to the extent such deposit
2880-would increase the reserve account balance above the
2881-designated cap level;
2882-(E) in the case of a SDC, the customer's
2883-certification that by October 1 of each year,
2884-beginning no sooner than October 1, 2012, the customer
2885-
2886-
2887-will report to the Department information, for the
2888-12-month period ending May 31 of the same year, on all
2889-deposits and reductions, if any, to the reserve
2890-account during the reporting year, and to the extent
2891-deposits to the reserve account in any year are in an
2892-amount less than $150,000, the basis for such reduced
2893-deposits; reserve account balances by month; a
2894-description of energy efficiency measures undertaken
2895-by the customer and paid for in whole or in part with
2896-funds from the reserve account; an estimate of the
2897-energy saved, or to be saved, by the measure; and that
2898-the report shall include a verification by an officer
2899-or plant manager of the customer or by a registered
2900-professional engineer or certified energy efficiency
2901-trade professional that the funds withdrawn from the
2902-reserve account were used for the energy efficiency
2903-measures;
2904-(F) in the case of an exempt customer, the
2905-customer's certification of the level of gas usage as
2906-feedstock in the customer's operation in a typical
2907-year and that it will provide information establishing
2908-this level, upon request of the Department;
2909-(G) in the case of either an exempt customer or a
2910-SDC, the customer's certification that it has provided
2911-the gas utility or utilities serving the customer with
2912-a copy of the application as filed with the
2913-
2914-
2915-Department;
2916-(H) in the case of either an exempt customer or a
2917-SDC, certification of the natural gas utility or
2918-utilities serving the customer in Illinois including
2919-the natural gas utility accounts that are the subject
2920-of the application; and
2921-(I) in the case of either an exempt customer or a
2922-SDC, a verification signed by a plant manager or an
2923-authorized corporate officer attesting to the
2924-truthfulness and accuracy of the information contained
2925-in the application.
2926-(2) The Department shall review the application to
2927-determine that it contains the information described in
2928-provisions (A) through (I) of item (1) of this subsection
2929-(m), as applicable. The review shall be completed within
2930-30 days after the date the application is filed with the
2931-Department. Absent a determination by the Department
2932-within the 30-day period, the applicant shall be
2933-considered to be a SDC or exempt customer, as applicable,
2934-for all subsequent multi-year planning periods, as of the
2935-date of filing the application described in this
2936-subsection (m). If the Department determines that the
2937-application does not contain the applicable information
2938-described in provisions (A) through (I) of item (1) of
2939-this subsection (m), it shall notify the customer, in
2940-writing, of its determination that the application does
2941-
2942-
2943-not contain the required information and identify the
2944-information that is missing, and the customer shall
2945-provide the missing information within 15 working days
2946-after the date of receipt of the Department's
2947-notification.
2948-(3) The Department shall have the right to audit the
2949-information provided in the customer's application and
2950-annual reports to ensure continued compliance with the
2951-requirements of this subsection. Based on the audit, if
2952-the Department determines the customer is no longer in
2953-compliance with the requirements of items (A) through (I)
2954-of item (1) of this subsection (m), as applicable, the
2955-Department shall notify the customer in writing of the
2956-noncompliance. The customer shall have 30 days to
2957-establish its compliance, and failing to do so, may have
2958-its status as a SDC or exempt customer revoked by the
2959-Department. The Department shall treat all information
2960-provided by any customer seeking SDC status or exemption
2961-from the provisions of this Section as strictly
2962-confidential.
2963-(4) Upon request, or on its own motion, the Commission
2964-may open an investigation, no more than once every 3 years
2965-and not before October 1, 2014, to evaluate the
2966-effectiveness of the self-directing program described in
2967-this subsection (m).
2968-Customers described in this subsection (m) that applied to
2969-
2970-
2971-the Department on January 3, 2013, were approved by the
2972-Department on February 13, 2013 to be a self-directing
2973-customer or exempt customer, and receive natural gas from a
2974-utility that provides gas service to at least 500,000 retail
2975-customers in Illinois and electric service to at least
2976-1,000,000 retail customers in Illinois shall be considered to
2977-be a self-directing customer or exempt customer, as
2978-applicable, for the current 3-year planning period effective
2979-December 1, 2013.
2980-(n) The applicability of this Section to customers
2981-described in subsection (m) of this Section is conditioned on
2982-the existence of the SDC program. In no event will any
2983-provision of this Section apply to such customers after
2984-January 1, 2020.
2985-(o) Utilities' 3-year energy efficiency plans approved by
2986-the Commission on or before the effective date of this
2987-amendatory Act of the 99th General Assembly for the period
2988-June 1, 2014 through May 31, 2017 shall continue to be in force
2989-and effect through December 31, 2017 so that the energy
2990-efficiency programs set forth in those plans continue to be
2991-offered during the period June 1, 2017 through December 31,
2992-2017. Each utility is authorized to increase, on a pro rata
2993-basis, the energy savings goals and budgets approved in its
2994-plan to reflect the additional 7 months of the plan's
2995-operation.
2996-(Source: P.A. 98-90, eff. 7-15-13; 98-225, eff. 8-9-13;
2997-
2998-
2999-98-604, eff. 12-17-13; 99-906, eff. 6-1-17.)
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34+1 Section, the terms "energy-efficiency", "demand-response",
35+2 "electric utility", and "total resource cost test" shall have
36+3 the meanings set forth in the Illinois Power Agency Act. For
37+4 purposes of this Section, the amount per kilowatthour means
38+5 the total amount paid for electric service expressed on a per
39+6 kilowatthour basis. For purposes of this Section, the total
40+7 amount paid for electric service includes without limitation
41+8 estimated amounts paid for supply, transmission, distribution,
42+9 surcharges, and add-on-taxes.
43+10 (a-5) This Section applies to electric utilities serving
44+11 500,000 or less but more than 200,000 retail customers in this
45+12 State. Through December 31, 2017, this Section also applies to
46+13 electric utilities serving more than 500,000 retail customers
47+14 in the State.
48+15 (b) Electric utilities shall implement cost-effective
49+16 energy efficiency measures to meet the following incremental
50+17 annual energy savings goals:
51+18 (1) 0.2% of energy delivered in the year commencing
52+19 June 1, 2008;
53+20 (2) 0.4% of energy delivered in the year commencing
54+21 June 1, 2009;
55+22 (3) 0.6% of energy delivered in the year commencing
56+23 June 1, 2010;
57+24 (4) 0.8% of energy delivered in the year commencing
58+25 June 1, 2011;
59+26 (5) 1% of energy delivered in the year commencing June
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70+1 1, 2012;
71+2 (6) 1.4% of energy delivered in the year commencing
72+3 June 1, 2013;
73+4 (7) 1.8% of energy delivered in the year commencing
74+5 June 1, 2014; and
75+6 (8) 2% of energy delivered in the year commencing June
76+7 1, 2015 and each year thereafter.
77+8 Electric utilities may comply with this subsection (b) by
78+9 meeting the annual incremental savings goal in the applicable
79+10 year or by showing that the total cumulative annual savings
80+11 within a 3-year planning period associated with measures
81+12 implemented after May 31, 2014 was equal to the sum of each
82+13 annual incremental savings requirement from May 31, 2014
83+14 through the end of the applicable year.
84+15 (c) Electric utilities shall implement cost-effective
85+16 demand-response measures to reduce peak demand by 0.1% over
86+17 the prior year for eligible retail customers, as defined in
87+18 Section 16-111.5 of this Act, and for customers that elect
88+19 hourly service from the utility pursuant to Section 16-107 of
89+20 this Act, provided those customers have not been declared
90+21 competitive. This requirement commences June 1, 2008 and
91+22 continues for 10 years.
92+23 (d) Notwithstanding the requirements of subsections (b)
93+24 and (c) of this Section, an electric utility shall reduce the
94+25 amount of energy efficiency and demand-response measures
95+26 implemented over a 3-year planning period by an amount
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106+1 necessary to limit the estimated average annual increase in
107+2 the amounts paid by retail customers in connection with
108+3 electric service due to the cost of those measures to:
109+4 (1) in 2008, no more than 0.5% of the amount paid per
110+5 kilowatthour by those customers during the year ending May
111+6 31, 2007;
112+7 (2) in 2009, the greater of an additional 0.5% of the
113+8 amount paid per kilowatthour by those customers during the
114+9 year ending May 31, 2008 or 1% of the amount paid per
115+10 kilowatthour by those customers during the year ending May
116+11 31, 2007;
117+12 (3) in 2010, the greater of an additional 0.5% of the
118+13 amount paid per kilowatthour by those customers during the
119+14 year ending May 31, 2009 or 1.5% of the amount paid per
120+15 kilowatthour by those customers during the year ending May
121+16 31, 2007;
122+17 (4) in 2011, the greater of an additional 0.5% of the
123+18 amount paid per kilowatthour by those customers during the
124+19 year ending May 31, 2010 or 2% of the amount paid per
125+20 kilowatthour by those customers during the year ending May
126+21 31, 2007; and
127+22 (5) thereafter, the amount of energy efficiency and
128+23 demand-response measures implemented for any single year
129+24 shall be reduced by an amount necessary to limit the
130+25 estimated average net increase due to the cost of these
131+26 measures included in the amounts paid by eligible retail
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142+1 customers in connection with electric service to no more
143+2 than the greater of 2.015% of the amount paid per
144+3 kilowatthour by those customers during the year ending May
145+4 31, 2007 or the incremental amount per kilowatthour paid
146+5 for these measures in 2011.
147+6 No later than June 30, 2011, the Commission shall review
148+7 the limitation on the amount of energy efficiency and
149+8 demand-response measures implemented pursuant to this Section
150+9 and report to the General Assembly its findings as to whether
151+10 that limitation unduly constrains the procurement of energy
152+11 efficiency and demand-response measures.
153+12 (e) Electric utilities shall be responsible for overseeing
154+13 the design, development, and filing of energy efficiency and
155+14 demand-response plans with the Commission. Electric utilities
156+15 shall implement 100% of the demand-response measures in the
157+16 plans. Electric utilities shall implement 75% of the energy
158+17 efficiency measures approved by the Commission, and may, as
159+18 part of that implementation, outsource various aspects of
160+19 program development and implementation. The remaining 25% of
161+20 those energy efficiency measures approved by the Commission
162+21 shall be implemented by the Department of Commerce and
163+22 Economic Opportunity, and must be designed in conjunction with
164+23 the utility and the filing process. The Department may
165+24 outsource development and implementation of energy efficiency
166+25 measures. A minimum of 10% of the entire portfolio of
167+26 cost-effective energy efficiency measures shall be procured
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178+1 from units of local government, municipal corporations, school
179+2 districts, public institutions of higher education, and
180+3 community college districts. The Department shall coordinate
181+4 the implementation of these measures.
182+5 The apportionment of the dollars to cover the costs to
183+6 implement the Department's share of the portfolio of energy
184+7 efficiency measures shall be made to the Department once the
185+8 Department has executed rebate agreements, grants, or
186+9 contracts for energy efficiency measures and provided
187+10 supporting documentation for those rebate agreements, grants,
188+11 and contracts to the utility. The Department is authorized to
189+12 adopt any rules necessary and prescribe procedures in order to
190+13 ensure compliance by applicants in carrying out the purposes
191+14 of rebate agreements for energy efficiency measures
192+15 implemented by the Department made under this Section.
193+16 The details of the measures implemented by the Department
194+17 shall be submitted by the Department to the Commission in
195+18 connection with the utility's filing regarding the energy
196+19 efficiency and demand-response measures that the utility
197+20 implements.
198+21 A utility providing approved energy efficiency and
199+22 demand-response measures in the State shall be permitted to
200+23 recover costs of those measures through an automatic
201+24 adjustment clause tariff filed with and approved by the
202+25 Commission. The tariff shall be established outside the
203+26 context of a general rate case. Each year the Commission shall
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214+1 initiate a review to reconcile any amounts collected with the
215+2 actual costs and to determine the required adjustment to the
216+3 annual tariff factor to match annual expenditures.
217+4 Each utility shall include, in its recovery of costs, the
218+5 costs estimated for both the utility's and the Department's
219+6 implementation of energy efficiency and demand-response
220+7 measures. Costs collected by the utility for measures
221+8 implemented by the Department shall be submitted to the
222+9 Department pursuant to Section 605-323 of the Civil
223+10 Administrative Code of Illinois, shall be deposited into the
224+11 Energy Efficiency Portfolio Standards Fund, and shall be used
225+12 by the Department solely for the purpose of implementing these
226+13 measures. A utility shall not be required to advance any
227+14 moneys to the Department but only to forward such funds as it
228+15 has collected. The Department shall report to the Commission
229+16 on an annual basis regarding the costs actually incurred by
230+17 the Department in the implementation of the measures. Any
231+18 changes to the costs of energy efficiency measures as a result
232+19 of plan modifications shall be appropriately reflected in
233+20 amounts recovered by the utility and turned over to the
234+21 Department.
235+22 The portfolio of measures, administered by both the
236+23 utilities and the Department, shall, in combination, be
237+24 designed to achieve the annual savings targets described in
238+25 subsections (b) and (c) of this Section, as modified by
239+26 subsection (d) of this Section.
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250+1 The utility and the Department shall agree upon a
251+2 reasonable portfolio of measures and determine the measurable
252+3 corresponding percentage of the savings goals associated with
253+4 measures implemented by the utility or Department.
254+5 No utility shall be assessed a penalty under subsection
255+6 (f) of this Section for failure to make a timely filing if that
256+7 failure is the result of a lack of agreement with the
257+8 Department with respect to the allocation of responsibilities
258+9 or related costs or target assignments. In that case, the
259+10 Department and the utility shall file their respective plans
260+11 with the Commission and the Commission shall determine an
261+12 appropriate division of measures and programs that meets the
262+13 requirements of this Section.
263+14 If the Department is unable to meet incremental annual
264+15 performance goals for the portion of the portfolio implemented
265+16 by the Department, then the utility and the Department shall
266+17 jointly submit a modified filing to the Commission explaining
267+18 the performance shortfall and recommending an appropriate
268+19 course going forward, including any program modifications that
269+20 may be appropriate in light of the evaluations conducted under
270+21 item (7) of subsection (f) of this Section. In this case, the
271+22 utility obligation to collect the Department's costs and turn
272+23 over those funds to the Department under this subsection (e)
273+24 shall continue only if the Commission approves the
274+25 modifications to the plan proposed by the Department.
275+26 (f) No later than November 15, 2007, each electric utility
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286+1 shall file an energy efficiency and demand-response plan with
287+2 the Commission to meet the energy efficiency and
288+3 demand-response standards for 2008 through 2010. No later than
289+4 October 1, 2010, each electric utility shall file an energy
290+5 efficiency and demand-response plan with the Commission to
291+6 meet the energy efficiency and demand-response standards for
292+7 2011 through 2013. Every 3 years thereafter, each electric
293+8 utility shall file, no later than September 1, an energy
294+9 efficiency and demand-response plan with the Commission. If a
295+10 utility does not file such a plan by September 1 of an
296+11 applicable year, it shall face a penalty of $100,000 per day
297+12 until the plan is filed. Each utility's plan shall set forth
298+13 the utility's proposals to meet the utility's portion of the
299+14 energy efficiency standards identified in subsection (b) and
300+15 the demand-response standards identified in subsection (c) of
301+16 this Section as modified by subsections (d) and (e), taking
302+17 into account the unique circumstances of the utility's service
303+18 territory. The Commission shall seek public comment on the
304+19 utility's plan and shall issue an order approving or
305+20 disapproving each plan within 5 months after its submission.
306+21 If the Commission disapproves a plan, the Commission shall,
307+22 within 30 days, describe in detail the reasons for the
308+23 disapproval and describe a path by which the utility may file a
309+24 revised draft of the plan to address the Commission's concerns
310+25 satisfactorily. If the utility does not refile with the
311+26 Commission within 60 days, the utility shall be subject to
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322+1 penalties at a rate of $100,000 per day until the plan is
323+2 filed. This process shall continue, and penalties shall
324+3 accrue, until the utility has successfully filed a portfolio
325+4 of energy efficiency and demand-response measures. Penalties
326+5 shall be deposited into the Energy Efficiency Trust Fund. In
327+6 submitting proposed energy efficiency and demand-response
328+7 plans and funding levels to meet the savings goals adopted by
329+8 this Act the utility shall:
330+9 (1) Demonstrate that its proposed energy efficiency
331+10 and demand-response measures will achieve the requirements
332+11 that are identified in subsections (b) and (c) of this
333+12 Section, as modified by subsections (d) and (e).
334+13 (2) Present specific proposals to implement new
335+14 building and appliance standards that have been placed
336+15 into effect.
337+16 (3) Present estimates of the total amount paid for
338+17 electric service expressed on a per kilowatthour basis
339+18 associated with the proposed portfolio of measures
340+19 designed to meet the requirements that are identified in
341+20 subsections (b) and (c) of this Section, as modified by
342+21 subsections (d) and (e).
343+22 (4) Coordinate with the Department to present a
344+23 portfolio of energy efficiency measures proportionate to
345+24 the share of total annual utility revenues in Illinois
346+25 from households at or below 150% of the poverty level. The
347+26 energy efficiency programs shall be targeted to households
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358+1 with incomes at or below 80% of area median income.
359+2 (5) Demonstrate that its overall portfolio of energy
360+3 efficiency and demand-response measures, not including
361+4 programs covered by item (4) of this subsection (f), are
362+5 cost-effective using the total resource cost test and
363+6 represent a diverse cross-section of opportunities for
364+7 customers of all rate classes to participate in the
365+8 programs.
366+9 (6) Include a proposed cost-recovery tariff mechanism
367+10 to fund the proposed energy efficiency and demand-response
368+11 measures and to ensure the recovery of the prudently and
369+12 reasonably incurred costs of Commission-approved programs.
370+13 (7) Provide for an annual independent evaluation of
371+14 the performance of the cost-effectiveness of the utility's
372+15 portfolio of measures and the Department's portfolio of
373+16 measures, as well as a full review of the 3-year results of
374+17 the broader net program impacts and, to the extent
375+18 practical, for adjustment of the measures on a
376+19 going-forward basis as a result of the evaluations. The
377+20 resources dedicated to evaluation shall not exceed 3% of
378+21 portfolio resources in any given year.
379+22 (g) No more than 3% of energy efficiency and
380+23 demand-response program revenue may be allocated for
381+24 demonstration of breakthrough equipment and devices.
382+25 (h) This Section does not apply to an electric utility
383+26 that on December 31, 2005 provided electric service to fewer
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394+1 than 100,000 customers in Illinois.
395+2 (i) If, after 2 years, an electric utility fails to meet
396+3 the efficiency standard specified in subsection (b) of this
397+4 Section, as modified by subsections (d) and (e), it shall make
398+5 a contribution to the Low-Income Home Energy Assistance
399+6 Program. The combined total liability for failure to meet the
400+7 goal shall be $1,000,000, which shall be assessed as follows:
401+8 a large electric utility shall pay $665,000, and a medium
402+9 electric utility shall pay $335,000. If, after 3 years, an
403+10 electric utility fails to meet the efficiency standard
404+11 specified in subsection (b) of this Section, as modified by
405+12 subsections (d) and (e), it shall make a contribution to the
406+13 Low-Income Home Energy Assistance Program. The combined total
407+14 liability for failure to meet the goal shall be $1,000,000,
408+15 which shall be assessed as follows: a large electric utility
409+16 shall pay $665,000, and a medium electric utility shall pay
410+17 $335,000. In addition, the responsibility for implementing the
411+18 energy efficiency measures of the utility making the payment
412+19 shall be transferred to the Illinois Power Agency if, after 3
413+20 years, or in any subsequent 3-year period, the utility fails
414+21 to meet the efficiency standard specified in subsection (b) of
415+22 this Section, as modified by subsections (d) and (e). The
416+23 Agency shall implement a competitive procurement program to
417+24 procure resources necessary to meet the standards specified in
418+25 this Section as modified by subsections (d) and (e), with
419+26 costs for those resources to be recovered in the same manner as
420+
421+
422+
423+
424+
425+ HB5539 Enrolled - 12 - LRB103 38494 CES 68630 b
426+
427+
428+HB5539 Enrolled- 13 -LRB103 38494 CES 68630 b HB5539 Enrolled - 13 - LRB103 38494 CES 68630 b
429+ HB5539 Enrolled - 13 - LRB103 38494 CES 68630 b
430+1 products purchased through the procurement plan as provided in
431+2 Section 16-111.5. The Director shall implement this
432+3 requirement in connection with the procurement plan as
433+4 provided in Section 16-111.5.
434+5 For purposes of this Section, (i) a "large electric
435+6 utility" is an electric utility that, on December 31, 2005,
436+7 served more than 2,000,000 electric customers in Illinois;
437+8 (ii) a "medium electric utility" is an electric utility that,
438+9 on December 31, 2005, served 2,000,000 or fewer but more than
439+10 100,000 electric customers in Illinois; and (iii) Illinois
440+11 electric utilities that are affiliated by virtue of a common
441+12 parent company are considered a single electric utility.
442+13 (j) If, after 3 years, or any subsequent 3-year period,
443+14 the Department fails to implement the Department's share of
444+15 energy efficiency measures required by the standards in
445+16 subsection (b), then the Illinois Power Agency may assume
446+17 responsibility for and control of the Department's share of
447+18 the required energy efficiency measures. The Agency shall
448+19 implement a competitive procurement program to procure
449+20 resources necessary to meet the standards specified in this
450+21 Section, with the costs of these resources to be recovered in
451+22 the same manner as provided for the Department in this
452+23 Section.
453+24 (k) No electric utility shall be deemed to have failed to
454+25 meet the energy efficiency standards to the extent any such
455+26 failure is due to a failure of the Department or the Agency.
456+
457+
458+
459+
460+
461+ HB5539 Enrolled - 13 - LRB103 38494 CES 68630 b
462+
463+
464+HB5539 Enrolled- 14 -LRB103 38494 CES 68630 b HB5539 Enrolled - 14 - LRB103 38494 CES 68630 b
465+ HB5539 Enrolled - 14 - LRB103 38494 CES 68630 b
466+1 (l)(1) The energy efficiency and demand-response plans of
467+2 electric utilities serving more than 500,000 retail customers
468+3 in the State that were approved by the Commission on or before
469+4 the effective date of this amendatory Act of the 99th General
470+5 Assembly for the period June 1, 2014 through May 31, 2017 shall
471+6 continue to be in force and effect through December 31, 2017 so
472+7 that the energy efficiency programs set forth in those plans
473+8 continue to be offered during the period June 1, 2017 through
474+9 December 31, 2017. Each such utility is authorized to
475+10 increase, on a pro rata basis, the energy savings goals and
476+11 budgets approved in its plan to reflect the additional 7
477+12 months of the plan's operation, provided that such increase
478+13 shall also incorporate reductions to goals and budgets to
479+14 reflect the proportion of the utility's load attributable to
480+15 customers who are exempt from this Section under subsection
481+16 (m) of this Section.
482+17 (2) If an electric utility serving more than 500,000
483+18 retail customers in the State filed with the Commission, under
484+19 subsection (f) of this Section, its proposed energy efficiency
485+20 and demand-response plan for the period June 1, 2017 through
486+21 May 31, 2020, and the Commission has not yet entered its final
487+22 order approving such plan on or before the effective date of
488+23 this amendatory Act of the 99th General Assembly, then the
489+24 utility shall file a notice of withdrawal with the Commission,
490+25 following such effective date, to withdraw the proposed energy
491+26 efficiency and demand-response plan. Upon receipt of such
492+
493+
494+
495+
496+
497+ HB5539 Enrolled - 14 - LRB103 38494 CES 68630 b
498+
499+
500+HB5539 Enrolled- 15 -LRB103 38494 CES 68630 b HB5539 Enrolled - 15 - LRB103 38494 CES 68630 b
501+ HB5539 Enrolled - 15 - LRB103 38494 CES 68630 b
502+1 notice, the Commission shall dismiss with prejudice any docket
503+2 that had been initiated to investigate such plan, and the plan
504+3 and the record related thereto shall not be the subject of any
505+4 further hearing, investigation, or proceeding of any kind.
506+5 (3) For those electric utilities that serve more than
507+6 500,000 retail customers in the State, this amendatory Act of
508+7 the 99th General Assembly preempts and supersedes any orders
509+8 entered by the Commission that approved such utilities' energy
510+9 efficiency and demand response plans for the period commencing
511+10 June 1, 2017 and ending May 31, 2020. Any such orders shall be
512+11 void, and the provisions of paragraph (1) of this subsection
513+12 (l) shall apply.
514+13 (m) Notwithstanding anything to the contrary, after May
515+14 31, 2017, this Section does not apply to any retail customers
516+15 of an electric utility that serves more than 3,000,000 retail
517+16 customers in the State and whose total highest 30 minute
518+17 demand was more than 10,000 kilowatts, or any retail customers
519+18 of an electric utility that serves less than 3,000,000 retail
520+19 customers but more than 500,000 retail customers in the State
521+20 and whose total highest 15 minute demand was more than 10,000
522+21 kilowatts. For purposes of this subsection (m), "retail
523+22 customer" has the meaning set forth in Section 16-102 of this
524+23 Act. The criteria for determining whether this subsection (m)
525+24 is applicable to a retail customer shall be based on the 12
526+25 consecutive billing periods prior to the start of the first
527+26 year of each such multi-year plan.
528+
529+
530+
531+
532+
533+ HB5539 Enrolled - 15 - LRB103 38494 CES 68630 b
534+
535+
536+HB5539 Enrolled- 16 -LRB103 38494 CES 68630 b HB5539 Enrolled - 16 - LRB103 38494 CES 68630 b
537+ HB5539 Enrolled - 16 - LRB103 38494 CES 68630 b
538+1 (Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17.)
539+2 (220 ILCS 5/8-103B)
540+3 Sec. 8-103B. Energy efficiency and demand-response
541+4 measures.
542+5 (a) It is the policy of the State that electric utilities
543+6 are required to use cost-effective energy efficiency and
544+7 demand-response measures to reduce delivery load. Requiring
545+8 investment in cost-effective energy efficiency and
546+9 demand-response measures will reduce direct and indirect costs
547+10 to consumers by decreasing environmental impacts and by
548+11 avoiding or delaying the need for new generation,
549+12 transmission, and distribution infrastructure. It serves the
550+13 public interest to allow electric utilities to recover costs
551+14 for reasonably and prudently incurred expenditures for energy
552+15 efficiency and demand-response measures. As used in this
553+16 Section, "cost-effective" means that the measures satisfy the
554+17 total resource cost test. The low-income measures described in
555+18 subsection (c) of this Section shall not be required to meet
556+19 the total resource cost test. For purposes of this Section,
557+20 the terms "energy-efficiency", "demand-response", "electric
558+21 utility", and "total resource cost test" have the meanings set
559+22 forth in the Illinois Power Agency Act. "Black, indigenous,
560+23 and people of color" and "BIPOC" means people who are members
561+24 of the groups described in subparagraphs (a) through (e) of
562+25 paragraph (A) of subsection (1) of Section 2 of the Business
563+
564+
565+
566+
567+
568+ HB5539 Enrolled - 16 - LRB103 38494 CES 68630 b
569+
570+
571+HB5539 Enrolled- 17 -LRB103 38494 CES 68630 b HB5539 Enrolled - 17 - LRB103 38494 CES 68630 b
572+ HB5539 Enrolled - 17 - LRB103 38494 CES 68630 b
573+1 Enterprise for Minorities, Women, and Persons with
574+2 Disabilities Act.
575+3 (a-5) This Section applies to electric utilities serving
576+4 more than 500,000 retail customers in the State for those
577+5 multi-year plans commencing after December 31, 2017.
578+6 (b) For purposes of this Section, electric utilities
579+7 subject to this Section that serve more than 3,000,000 retail
580+8 customers in the State shall be deemed to have achieved a
581+9 cumulative persisting annual savings of 6.6% from energy
582+10 efficiency measures and programs implemented during the period
583+11 beginning January 1, 2012 and ending December 31, 2017, which
584+12 percent is based on the deemed average weather normalized
585+13 sales of electric power and energy during calendar years 2014,
586+14 2015, and 2016 of 88,000,000 MWhs. For the purposes of this
587+15 subsection (b) and subsection (b-5), the 88,000,000 MWhs of
588+16 deemed electric power and energy sales shall be reduced by the
589+17 number of MWhs equal to the sum of the annual consumption of
590+18 customers that have opted out of subsections (a) through (j)
591+19 of this Section under paragraph (1) of subsection (l) of this
592+20 Section, as averaged across the calendar years 2014, 2015, and
593+21 2016. After 2017, the deemed value of cumulative persisting
594+22 annual savings from energy efficiency measures and programs
595+23 implemented during the period beginning January 1, 2012 and
596+24 ending December 31, 2017, shall be reduced each year, as
597+25 follows, and the applicable value shall be applied to and
598+26 count toward the utility's achievement of the cumulative
599+
600+
601+
602+
603+
604+ HB5539 Enrolled - 17 - LRB103 38494 CES 68630 b
605+
606+
607+HB5539 Enrolled- 18 -LRB103 38494 CES 68630 b HB5539 Enrolled - 18 - LRB103 38494 CES 68630 b
608+ HB5539 Enrolled - 18 - LRB103 38494 CES 68630 b
609+1 persisting annual savings goals set forth in subsection (b-5):
610+2 (1) 5.8% deemed cumulative persisting annual savings
611+3 for the year ending December 31, 2018;
612+4 (2) 5.2% deemed cumulative persisting annual savings
613+5 for the year ending December 31, 2019;
614+6 (3) 4.5% deemed cumulative persisting annual savings
615+7 for the year ending December 31, 2020;
616+8 (4) 4.0% deemed cumulative persisting annual savings
617+9 for the year ending December 31, 2021;
618+10 (5) 3.5% deemed cumulative persisting annual savings
619+11 for the year ending December 31, 2022;
620+12 (6) 3.1% deemed cumulative persisting annual savings
621+13 for the year ending December 31, 2023;
622+14 (7) 2.8% deemed cumulative persisting annual savings
623+15 for the year ending December 31, 2024;
624+16 (8) 2.5% deemed cumulative persisting annual savings
625+17 for the year ending December 31, 2025;
626+18 (9) 2.3% deemed cumulative persisting annual savings
627+19 for the year ending December 31, 2026;
628+20 (10) 2.1% deemed cumulative persisting annual savings
629+21 for the year ending December 31, 2027;
630+22 (11) 1.8% deemed cumulative persisting annual savings
631+23 for the year ending December 31, 2028;
632+24 (12) 1.7% deemed cumulative persisting annual savings
633+25 for the year ending December 31, 2029;
634+26 (13) 1.5% deemed cumulative persisting annual savings
635+
636+
637+
638+
639+
640+ HB5539 Enrolled - 18 - LRB103 38494 CES 68630 b
641+
642+
643+HB5539 Enrolled- 19 -LRB103 38494 CES 68630 b HB5539 Enrolled - 19 - LRB103 38494 CES 68630 b
644+ HB5539 Enrolled - 19 - LRB103 38494 CES 68630 b
645+1 for the year ending December 31, 2030;
646+2 (14) 1.3% deemed cumulative persisting annual savings
647+3 for the year ending December 31, 2031;
648+4 (15) 1.1% deemed cumulative persisting annual savings
649+5 for the year ending December 31, 2032;
650+6 (16) 0.9% deemed cumulative persisting annual savings
651+7 for the year ending December 31, 2033;
652+8 (17) 0.7% deemed cumulative persisting annual savings
653+9 for the year ending December 31, 2034;
654+10 (18) 0.5% deemed cumulative persisting annual savings
655+11 for the year ending December 31, 2035;
656+12 (19) 0.4% deemed cumulative persisting annual savings
657+13 for the year ending December 31, 2036;
658+14 (20) 0.3% deemed cumulative persisting annual savings
659+15 for the year ending December 31, 2037;
660+16 (21) 0.2% deemed cumulative persisting annual savings
661+17 for the year ending December 31, 2038;
662+18 (22) 0.1% deemed cumulative persisting annual savings
663+19 for the year ending December 31, 2039; and
664+20 (23) 0.0% deemed cumulative persisting annual savings
665+21 for the year ending December 31, 2040 and all subsequent
666+22 years.
667+23 For purposes of this Section, "cumulative persisting
668+24 annual savings" means the total electric energy savings in a
669+25 given year from measures installed in that year or in previous
670+26 years, but no earlier than January 1, 2012, that are still
671+
672+
673+
674+
675+
676+ HB5539 Enrolled - 19 - LRB103 38494 CES 68630 b
677+
678+
679+HB5539 Enrolled- 20 -LRB103 38494 CES 68630 b HB5539 Enrolled - 20 - LRB103 38494 CES 68630 b
680+ HB5539 Enrolled - 20 - LRB103 38494 CES 68630 b
681+1 operational and providing savings in that year because the
682+2 measures have not yet reached the end of their useful lives.
683+3 (b-5) Beginning in 2018, electric utilities subject to
684+4 this Section that serve more than 3,000,000 retail customers
685+5 in the State shall achieve the following cumulative persisting
686+6 annual savings goals, as modified by subsection (f) of this
687+7 Section and as compared to the deemed baseline of 88,000,000
688+8 MWhs of electric power and energy sales set forth in
689+9 subsection (b), as reduced by the number of MWhs equal to the
690+10 sum of the annual consumption of customers that have opted out
691+11 of subsections (a) through (j) of this Section under paragraph
692+12 (1) of subsection (l) of this Section as averaged across the
693+13 calendar years 2014, 2015, and 2016, through the
694+14 implementation of energy efficiency measures during the
695+15 applicable year and in prior years, but no earlier than
696+16 January 1, 2012:
697+17 (1) 7.8% cumulative persisting annual savings for the
698+18 year ending December 31, 2018;
699+19 (2) 9.1% cumulative persisting annual savings for the
700+20 year ending December 31, 2019;
701+21 (3) 10.4% cumulative persisting annual savings for the
702+22 year ending December 31, 2020;
703+23 (4) 11.8% cumulative persisting annual savings for the
704+24 year ending December 31, 2021;
705+25 (5) 13.1% cumulative persisting annual savings for the
706+26 year ending December 31, 2022;
707+
708+
709+
710+
711+
712+ HB5539 Enrolled - 20 - LRB103 38494 CES 68630 b
713+
714+
715+HB5539 Enrolled- 21 -LRB103 38494 CES 68630 b HB5539 Enrolled - 21 - LRB103 38494 CES 68630 b
716+ HB5539 Enrolled - 21 - LRB103 38494 CES 68630 b
717+1 (6) 14.4% cumulative persisting annual savings for the
718+2 year ending December 31, 2023;
719+3 (7) 15.7% cumulative persisting annual savings for the
720+4 year ending December 31, 2024;
721+5 (8) 17% cumulative persisting annual savings for the
722+6 year ending December 31, 2025;
723+7 (9) 17.9% cumulative persisting annual savings for the
724+8 year ending December 31, 2026;
725+9 (10) 18.8% cumulative persisting annual savings for
726+10 the year ending December 31, 2027;
727+11 (11) 19.7% cumulative persisting annual savings for
728+12 the year ending December 31, 2028;
729+13 (12) 20.6% cumulative persisting annual savings for
730+14 the year ending December 31, 2029; and
731+15 (13) 21.5% cumulative persisting annual savings for
732+16 the year ending December 31, 2030.
733+17 No later than December 31, 2021, the Illinois Commerce
734+18 Commission shall establish additional cumulative persisting
735+19 annual savings goals for the years 2031 through 2035. No later
736+20 than December 31, 2024, the Illinois Commerce Commission shall
737+21 establish additional cumulative persisting annual savings
738+22 goals for the years 2036 through 2040. The Commission shall
739+23 also establish additional cumulative persisting annual savings
740+24 goals every 5 years thereafter to ensure that utilities always
741+25 have goals that extend at least 11 years into the future. The
742+26 cumulative persisting annual savings goals beyond the year
743+
744+
745+
746+
747+
748+ HB5539 Enrolled - 21 - LRB103 38494 CES 68630 b
749+
750+
751+HB5539 Enrolled- 22 -LRB103 38494 CES 68630 b HB5539 Enrolled - 22 - LRB103 38494 CES 68630 b
752+ HB5539 Enrolled - 22 - LRB103 38494 CES 68630 b
753+1 2030 shall increase by 0.9 percentage points per year, absent
754+2 a Commission decision to initiate a proceeding to consider
755+3 establishing goals that increase by more or less than that
756+4 amount. Such a proceeding must be conducted in accordance with
757+5 the procedures described in subsection (f) of this Section. If
758+6 such a proceeding is initiated, the cumulative persisting
759+7 annual savings goals established by the Commission through
760+8 that proceeding shall reflect the Commission's best estimate
761+9 of the maximum amount of additional savings that are forecast
762+10 to be cost-effectively achievable unless such best estimates
763+11 would result in goals that represent less than 0.5 percentage
764+12 point annual increases in total cumulative persisting annual
765+13 savings. The Commission may only establish goals that
766+14 represent less than 0.5 percentage point annual increases in
767+15 cumulative persisting annual savings if it can demonstrate,
768+16 based on clear and convincing evidence and through independent
769+17 analysis, that 0.5 percentage point increases are not
770+18 cost-effectively achievable. The Commission shall inform its
771+19 decision based on an energy efficiency potential study that
772+20 conforms to the requirements of this Section.
773+21 (b-10) For purposes of this Section, electric utilities
774+22 subject to this Section that serve less than 3,000,000 retail
775+23 customers but more than 500,000 retail customers in the State
776+24 shall be deemed to have achieved a cumulative persisting
777+25 annual savings of 6.6% from energy efficiency measures and
778+26 programs implemented during the period beginning January 1,
779+
780+
781+
782+
783+
784+ HB5539 Enrolled - 22 - LRB103 38494 CES 68630 b
785+
786+
787+HB5539 Enrolled- 23 -LRB103 38494 CES 68630 b HB5539 Enrolled - 23 - LRB103 38494 CES 68630 b
788+ HB5539 Enrolled - 23 - LRB103 38494 CES 68630 b
789+1 2012 and ending December 31, 2017, which is based on the deemed
790+2 average weather normalized sales of electric power and energy
791+3 during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
792+4 For the purposes of this subsection (b-10) and subsection
793+5 (b-15), the 36,900,000 MWhs of deemed electric power and
794+6 energy sales shall be reduced by the number of MWhs equal to
795+7 the sum of the annual consumption of customers that have opted
796+8 out of subsections (a) through (j) of this Section under
797+9 paragraph (1) of subsection (l) of this Section, as averaged
798+10 across the calendar years 2014, 2015, and 2016. After 2017,
799+11 the deemed value of cumulative persisting annual savings from
800+12 energy efficiency measures and programs implemented during the
801+13 period beginning January 1, 2012 and ending December 31, 2017,
802+14 shall be reduced each year, as follows, and the applicable
803+15 value shall be applied to and count toward the utility's
804+16 achievement of the cumulative persisting annual savings goals
805+17 set forth in subsection (b-15):
806+18 (1) 5.8% deemed cumulative persisting annual savings
807+19 for the year ending December 31, 2018;
808+20 (2) 5.2% deemed cumulative persisting annual savings
809+21 for the year ending December 31, 2019;
810+22 (3) 4.5% deemed cumulative persisting annual savings
811+23 for the year ending December 31, 2020;
812+24 (4) 4.0% deemed cumulative persisting annual savings
813+25 for the year ending December 31, 2021;
814+26 (5) 3.5% deemed cumulative persisting annual savings
815+
816+
817+
818+
819+
820+ HB5539 Enrolled - 23 - LRB103 38494 CES 68630 b
821+
822+
823+HB5539 Enrolled- 24 -LRB103 38494 CES 68630 b HB5539 Enrolled - 24 - LRB103 38494 CES 68630 b
824+ HB5539 Enrolled - 24 - LRB103 38494 CES 68630 b
825+1 for the year ending December 31, 2022;
826+2 (6) 3.1% deemed cumulative persisting annual savings
827+3 for the year ending December 31, 2023;
828+4 (7) 2.8% deemed cumulative persisting annual savings
829+5 for the year ending December 31, 2024;
830+6 (8) 2.5% deemed cumulative persisting annual savings
831+7 for the year ending December 31, 2025;
832+8 (9) 2.3% deemed cumulative persisting annual savings
833+9 for the year ending December 31, 2026;
834+10 (10) 2.1% deemed cumulative persisting annual savings
835+11 for the year ending December 31, 2027;
836+12 (11) 1.8% deemed cumulative persisting annual savings
837+13 for the year ending December 31, 2028;
838+14 (12) 1.7% deemed cumulative persisting annual savings
839+15 for the year ending December 31, 2029;
840+16 (13) 1.5% deemed cumulative persisting annual savings
841+17 for the year ending December 31, 2030;
842+18 (14) 1.3% deemed cumulative persisting annual savings
843+19 for the year ending December 31, 2031;
844+20 (15) 1.1% deemed cumulative persisting annual savings
845+21 for the year ending December 31, 2032;
846+22 (16) 0.9% deemed cumulative persisting annual savings
847+23 for the year ending December 31, 2033;
848+24 (17) 0.7% deemed cumulative persisting annual savings
849+25 for the year ending December 31, 2034;
850+26 (18) 0.5% deemed cumulative persisting annual savings
851+
852+
853+
854+
855+
856+ HB5539 Enrolled - 24 - LRB103 38494 CES 68630 b
857+
858+
859+HB5539 Enrolled- 25 -LRB103 38494 CES 68630 b HB5539 Enrolled - 25 - LRB103 38494 CES 68630 b
860+ HB5539 Enrolled - 25 - LRB103 38494 CES 68630 b
861+1 for the year ending December 31, 2035;
862+2 (19) 0.4% deemed cumulative persisting annual savings
863+3 for the year ending December 31, 2036;
864+4 (20) 0.3% deemed cumulative persisting annual savings
865+5 for the year ending December 31, 2037;
866+6 (21) 0.2% deemed cumulative persisting annual savings
867+7 for the year ending December 31, 2038;
868+8 (22) 0.1% deemed cumulative persisting annual savings
869+9 for the year ending December 31, 2039; and
870+10 (23) 0.0% deemed cumulative persisting annual savings
871+11 for the year ending December 31, 2040 and all subsequent
872+12 years.
873+13 (b-15) Beginning in 2018, electric utilities subject to
874+14 this Section that serve less than 3,000,000 retail customers
875+15 but more than 500,000 retail customers in the State shall
876+16 achieve the following cumulative persisting annual savings
877+17 goals, as modified by subsection (b-20) and subsection (f) of
878+18 this Section and as compared to the deemed baseline as reduced
879+19 by the number of MWhs equal to the sum of the annual
880+20 consumption of customers that have opted out of subsections
881+21 (a) through (j) of this Section under paragraph (1) of
882+22 subsection (l) of this Section as averaged across the calendar
883+23 years 2014, 2015, and 2016, through the implementation of
884+24 energy efficiency measures during the applicable year and in
885+25 prior years, but no earlier than January 1, 2012:
886+26 (1) 7.4% cumulative persisting annual savings for the
887+
888+
889+
890+
891+
892+ HB5539 Enrolled - 25 - LRB103 38494 CES 68630 b
893+
894+
895+HB5539 Enrolled- 26 -LRB103 38494 CES 68630 b HB5539 Enrolled - 26 - LRB103 38494 CES 68630 b
896+ HB5539 Enrolled - 26 - LRB103 38494 CES 68630 b
897+1 year ending December 31, 2018;
898+2 (2) 8.2% cumulative persisting annual savings for the
899+3 year ending December 31, 2019;
900+4 (3) 9.0% cumulative persisting annual savings for the
901+5 year ending December 31, 2020;
902+6 (4) 9.8% cumulative persisting annual savings for the
903+7 year ending December 31, 2021;
904+8 (5) 10.6% cumulative persisting annual savings for the
905+9 year ending December 31, 2022;
906+10 (6) 11.4% cumulative persisting annual savings for the
907+11 year ending December 31, 2023;
908+12 (7) 12.2% cumulative persisting annual savings for the
909+13 year ending December 31, 2024;
910+14 (8) 13% cumulative persisting annual savings for the
911+15 year ending December 31, 2025;
912+16 (9) 13.6% cumulative persisting annual savings for the
913+17 year ending December 31, 2026;
914+18 (10) 14.2% cumulative persisting annual savings for
915+19 the year ending December 31, 2027;
916+20 (11) 14.8% cumulative persisting annual savings for
917+21 the year ending December 31, 2028;
918+22 (12) 15.4% cumulative persisting annual savings for
919+23 the year ending December 31, 2029; and
920+24 (13) 16% cumulative persisting annual savings for the
921+25 year ending December 31, 2030.
922+26 No later than December 31, 2021, the Illinois Commerce
923+
924+
925+
926+
927+
928+ HB5539 Enrolled - 26 - LRB103 38494 CES 68630 b
929+
930+
931+HB5539 Enrolled- 27 -LRB103 38494 CES 68630 b HB5539 Enrolled - 27 - LRB103 38494 CES 68630 b
932+ HB5539 Enrolled - 27 - LRB103 38494 CES 68630 b
933+1 Commission shall establish additional cumulative persisting
934+2 annual savings goals for the years 2031 through 2035. No later
935+3 than December 31, 2024, the Illinois Commerce Commission shall
936+4 establish additional cumulative persisting annual savings
937+5 goals for the years 2036 through 2040. The Commission shall
938+6 also establish additional cumulative persisting annual savings
939+7 goals every 5 years thereafter to ensure that utilities always
940+8 have goals that extend at least 11 years into the future. The
941+9 cumulative persisting annual savings goals beyond the year
942+10 2030 shall increase by 0.6 percentage points per year, absent
943+11 a Commission decision to initiate a proceeding to consider
944+12 establishing goals that increase by more or less than that
945+13 amount. Such a proceeding must be conducted in accordance with
946+14 the procedures described in subsection (f) of this Section. If
947+15 such a proceeding is initiated, the cumulative persisting
948+16 annual savings goals established by the Commission through
949+17 that proceeding shall reflect the Commission's best estimate
950+18 of the maximum amount of additional savings that are forecast
951+19 to be cost-effectively achievable unless such best estimates
952+20 would result in goals that represent less than 0.4 percentage
953+21 point annual increases in total cumulative persisting annual
954+22 savings. The Commission may only establish goals that
955+23 represent less than 0.4 percentage point annual increases in
956+24 cumulative persisting annual savings if it can demonstrate,
957+25 based on clear and convincing evidence and through independent
958+26 analysis, that 0.4 percentage point increases are not
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969+1 cost-effectively achievable. The Commission shall inform its
970+2 decision based on an energy efficiency potential study that
971+3 conforms to the requirements of this Section.
972+4 (b-20) Each electric utility subject to this Section may
973+5 include cost-effective voltage optimization measures in its
974+6 plans submitted under subsections (f) and (g) of this Section,
975+7 and the costs incurred by a utility to implement the measures
976+8 under a Commission-approved plan shall be recovered under the
977+9 provisions of Article IX or Section 16-108.5 of this Act. For
978+10 purposes of this Section, the measure life of voltage
979+11 optimization measures shall be 15 years. The measure life
980+12 period is independent of the depreciation rate of the voltage
981+13 optimization assets deployed. Utilities may claim savings from
982+14 voltage optimization on circuits for more than 15 years if
983+15 they can demonstrate that they have made additional
984+16 investments necessary to enable voltage optimization savings
985+17 to continue beyond 15 years. Such demonstrations must be
986+18 subject to the review of independent evaluation.
987+19 Within 270 days after June 1, 2017 (the effective date of
988+20 Public Act 99-906), an electric utility that serves less than
989+21 3,000,000 retail customers but more than 500,000 retail
990+22 customers in the State shall file a plan with the Commission
991+23 that identifies the cost-effective voltage optimization
992+24 investment the electric utility plans to undertake through
993+25 December 31, 2024. The Commission, after notice and hearing,
994+26 shall approve or approve with modification the plan within 120
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1005+1 days after the plan's filing and, in the order approving or
1006+2 approving with modification the plan, the Commission shall
1007+3 adjust the applicable cumulative persisting annual savings
1008+4 goals set forth in subsection (b-15) to reflect any amount of
1009+5 cost-effective energy savings approved by the Commission that
1010+6 is greater than or less than the following cumulative
1011+7 persisting annual savings values attributable to voltage
1012+8 optimization for the applicable year:
1013+9 (1) 0.0% of cumulative persisting annual savings for
1014+10 the year ending December 31, 2018;
1015+11 (2) 0.17% of cumulative persisting annual savings for
1016+12 the year ending December 31, 2019;
1017+13 (3) 0.17% of cumulative persisting annual savings for
1018+14 the year ending December 31, 2020;
1019+15 (4) 0.33% of cumulative persisting annual savings for
1020+16 the year ending December 31, 2021;
1021+17 (5) 0.5% of cumulative persisting annual savings for
1022+18 the year ending December 31, 2022;
1023+19 (6) 0.67% of cumulative persisting annual savings for
1024+20 the year ending December 31, 2023;
1025+21 (7) 0.83% of cumulative persisting annual savings for
1026+22 the year ending December 31, 2024; and
1027+23 (8) 1.0% of cumulative persisting annual savings for
1028+24 the year ending December 31, 2025 and all subsequent
1029+25 years.
1030+26 (b-25) In the event an electric utility jointly offers an
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1041+1 energy efficiency measure or program with a gas utility under
1042+2 plans approved under this Section and Section 8-104 of this
1043+3 Act, the electric utility may continue offering the program,
1044+4 including the gas energy efficiency measures, in the event the
1045+5 gas utility discontinues funding the program. In that event,
1046+6 the energy savings value associated with such other fuels
1047+7 shall be converted to electric energy savings on an equivalent
1048+8 Btu basis for the premises. However, the electric utility
1049+9 shall prioritize programs for low-income residential customers
1050+10 to the extent practicable. An electric utility may recover the
1051+11 costs of offering the gas energy efficiency measures under
1052+12 this subsection (b-25).
1053+13 For those energy efficiency measures or programs that save
1054+14 both electricity and other fuels but are not jointly offered
1055+15 with a gas utility under plans approved under this Section and
1056+16 Section 8-104 or not offered with an affiliated gas utility
1057+17 under paragraph (6) of subsection (f) of Section 8-104 of this
1058+18 Act, the electric utility may count savings of fuels other
1059+19 than electricity toward the achievement of its annual savings
1060+20 goal, and the energy savings value associated with such other
1061+21 fuels shall be converted to electric energy savings on an
1062+22 equivalent Btu basis at the premises.
1063+23 In no event shall more than 10% of each year's applicable
1064+24 annual total savings requirement as defined in paragraph (7.5)
1065+25 of subsection (g) of this Section be met through savings of
1066+26 fuels other than electricity.
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1077+1 (b-27) Beginning in 2022, an electric utility may offer
1078+2 and promote measures that electrify space heating, water
1079+3 heating, cooling, drying, cooking, industrial processes, and
1080+4 other building and industrial end uses that would otherwise be
1081+5 served by combustion of fossil fuel at the premises, provided
1082+6 that the electrification measures reduce total energy
1083+7 consumption at the premises. The electric utility may count
1084+8 the reduction in energy consumption at the premises toward
1085+9 achievement of its annual savings goals. The reduction in
1086+10 energy consumption at the premises shall be calculated as the
1087+11 difference between: (A) the reduction in Btu consumption of
1088+12 fossil fuels as a result of electrification, converted to
1089+13 kilowatt-hour equivalents by dividing by 3,412 Btus per
1090+14 kilowatt hour; and (B) the increase in kilowatt hours of
1091+15 electricity consumption resulting from the displacement of
1092+16 fossil fuel consumption as a result of electrification. An
1093+17 electric utility may recover the costs of offering and
1094+18 promoting electrification measures under this subsection
1095+19 (b-27).
1096+20 In no event shall electrification savings counted toward
1097+21 each year's applicable annual total savings requirement, as
1098+22 defined in paragraph (7.5) of subsection (g) of this Section,
1099+23 be greater than:
1100+24 (1) 5% per year for each year from 2022 through 2025;
1101+25 (2) 10% per year for each year from 2026 through 2029;
1102+26 and
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1113+1 (3) 15% per year for 2030 and all subsequent years.
1114+2 In addition, a minimum of 25% of all electrification savings
1115+3 counted toward a utility's applicable annual total savings
1116+4 requirement must be from electrification of end uses in
1117+5 low-income housing. The limitations on electrification savings
1118+6 that may be counted toward a utility's annual savings goals
1119+7 are separate from and in addition to the subsection (b-25)
1120+8 limitations governing the counting of the other fuel savings
1121+9 resulting from efficiency measures and programs.
1122+10 As part of the annual informational filing to the
1123+11 Commission that is required under paragraph (9) of subsection
1124+12 (g) of this Section, each utility shall identify the specific
1125+13 electrification measures offered under this subsection (b-27);
1126+14 the quantity of each electrification measure that was
1127+15 installed by its customers; the average total cost, average
1128+16 utility cost, average reduction in fossil fuel consumption,
1129+17 and average increase in electricity consumption associated
1130+18 with each electrification measure; the portion of
1131+19 installations of each electrification measure that were in
1132+20 low-income single-family housing, low-income multifamily
1133+21 housing, non-low-income single-family housing, non-low-income
1134+22 multifamily housing, commercial buildings, and industrial
1135+23 facilities; and the quantity of savings associated with each
1136+24 measure category in each customer category that are being
1137+25 counted toward the utility's applicable annual total savings
1138+26 requirement. Prior to installing an electrification measure,
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1149+1 the utility shall provide a customer with an estimate of the
1150+2 impact of the new measure on the customer's average monthly
1151+3 electric bill and total annual energy expenses.
1152+4 (c) Electric utilities shall be responsible for overseeing
1153+5 the design, development, and filing of energy efficiency plans
1154+6 with the Commission and may, as part of that implementation,
1155+7 outsource various aspects of program development and
1156+8 implementation. A minimum of 10%, for electric utilities that
1157+9 serve more than 3,000,000 retail customers in the State, and a
1158+10 minimum of 7%, for electric utilities that serve less than
1159+11 3,000,000 retail customers but more than 500,000 retail
1160+12 customers in the State, of the utility's entire portfolio
1161+13 funding level for a given year shall be used to procure
1162+14 cost-effective energy efficiency measures from units of local
1163+15 government, municipal corporations, school districts, public
1164+16 housing, public institutions of higher education, and
1165+17 community college districts, provided that a minimum
1166+18 percentage of available funds shall be used to procure energy
1167+19 efficiency from public housing, which percentage shall be
1168+20 equal to public housing's share of public building energy
1169+21 consumption.
1170+22 The utilities shall also implement energy efficiency
1171+23 measures targeted at low-income households, which, for
1172+24 purposes of this Section, shall be defined as households at or
1173+25 below 80% of area median income, and expenditures to implement
1174+26 the measures shall be no less than $40,000,000 per year for
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1185+1 electric utilities that serve more than 3,000,000 retail
1186+2 customers in the State and no less than $13,000,000 per year
1187+3 for electric utilities that serve less than 3,000,000 retail
1188+4 customers but more than 500,000 retail customers in the State.
1189+5 The ratio of spending on efficiency programs targeted at
1190+6 low-income multifamily buildings to spending on efficiency
1191+7 programs targeted at low-income single-family buildings shall
1192+8 be designed to achieve levels of savings from each building
1193+9 type that are approximately proportional to the magnitude of
1194+10 cost-effective lifetime savings potential in each building
1195+11 type. Investment in low-income whole-building weatherization
1196+12 programs shall constitute a minimum of 80% of a utility's
1197+13 total budget specifically dedicated to serving low-income
1198+14 customers.
1199+15 The utilities shall work to bundle low-income energy
1200+16 efficiency offerings with other programs that serve low-income
1201+17 households to maximize the benefits going to these households.
1202+18 The utilities shall market and implement low-income energy
1203+19 efficiency programs in coordination with low-income assistance
1204+20 programs, the Illinois Solar for All Program, and
1205+21 weatherization whenever practicable. The program implementer
1206+22 shall walk the customer through the enrollment process for any
1207+23 programs for which the customer is eligible. The utilities
1208+24 shall also pilot targeting customers with high arrearages,
1209+25 high energy intensity (ratio of energy usage divided by home
1210+26 or unit square footage), or energy assistance programs with
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1221+1 energy efficiency offerings, and then track reduction in
1222+2 arrearages as a result of the targeting. This targeting and
1223+3 bundling of low-income energy programs shall be offered to
1224+4 both low-income single-family and multifamily customers
1225+5 (owners and residents).
1226+6 The utilities shall invest in health and safety measures
1227+7 appropriate and necessary for comprehensively weatherizing a
1228+8 home or multifamily building, and shall implement a health and
1229+9 safety fund of at least 15% of the total income-qualified
1230+10 weatherization budget that shall be used for the purpose of
1231+11 making grants for technical assistance, construction,
1232+12 reconstruction, improvement, or repair of buildings to
1233+13 facilitate their participation in the energy efficiency
1234+14 programs targeted at low-income single-family and multifamily
1235+15 households. These funds may also be used for the purpose of
1236+16 making grants for technical assistance, construction,
1237+17 reconstruction, improvement, or repair of the following
1238+18 buildings to facilitate their participation in the energy
1239+19 efficiency programs created by this Section: (1) buildings
1240+20 that are owned or operated by registered 501(c)(3) public
1241+21 charities; and (2) day care centers, day care homes, or group
1242+22 day care homes, as defined under 89 Ill. Adm. Code Part 406,
1243+23 407, or 408, respectively.
1244+24 Each electric utility shall assess opportunities to
1245+25 implement cost-effective energy efficiency measures and
1246+26 programs through a public housing authority or authorities
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1257+1 located in its service territory. If such opportunities are
1258+2 identified, the utility shall propose such measures and
1259+3 programs to address the opportunities. Expenditures to address
1260+4 such opportunities shall be credited toward the minimum
1261+5 procurement and expenditure requirements set forth in this
1262+6 subsection (c).
1263+7 Implementation of energy efficiency measures and programs
1264+8 targeted at low-income households should be contracted, when
1265+9 it is practicable, to independent third parties that have
1266+10 demonstrated capabilities to serve such households, with a
1267+11 preference for not-for-profit entities and government agencies
1268+12 that have existing relationships with or experience serving
1269+13 low-income communities in the State.
1270+14 Each electric utility shall develop and implement
1271+15 reporting procedures that address and assist in determining
1272+16 the amount of energy savings that can be applied to the
1273+17 low-income procurement and expenditure requirements set forth
1274+18 in this subsection (c). Each electric utility shall also track
1275+19 the types and quantities or volumes of insulation and air
1276+20 sealing materials, and their associated energy saving
1277+21 benefits, installed in energy efficiency programs targeted at
1278+22 low-income single-family and multifamily households.
1279+23 The electric utilities shall participate in a low-income
1280+24 energy efficiency accountability committee ("the committee"),
1281+25 which will directly inform the design, implementation, and
1282+26 evaluation of the low-income and public-housing energy
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1293+1 efficiency programs. The committee shall be comprised of the
1294+2 electric utilities subject to the requirements of this
1295+3 Section, the gas utilities subject to the requirements of
1296+4 Section 8-104 of this Act, the utilities' low-income energy
1297+5 efficiency implementation contractors, nonprofit
1298+6 organizations, community action agencies, advocacy groups,
1299+7 State and local governmental agencies, public-housing
1300+8 organizations, and representatives of community-based
1301+9 organizations, especially those living in or working with
1302+10 environmental justice communities and BIPOC communities. The
1303+11 committee shall be composed of 2 geographically differentiated
1304+12 subcommittees: one for stakeholders in northern Illinois and
1305+13 one for stakeholders in central and southern Illinois. The
1306+14 subcommittees shall meet together at least twice per year.
1307+15 There shall be one statewide leadership committee led by
1308+16 and composed of community-based organizations that are
1309+17 representative of BIPOC and environmental justice communities
1310+18 and that includes equitable representation from BIPOC
1311+19 communities. The leadership committee shall be composed of an
1312+20 equal number of representatives from the 2 subcommittees. The
1313+21 subcommittees shall address specific programs and issues, with
1314+22 the leadership committee convening targeted workgroups as
1315+23 needed. The leadership committee may elect to work with an
1316+24 independent facilitator to solicit and organize feedback,
1317+25 recommendations and meeting participation from a wide variety
1318+26 of community-based stakeholders. If a facilitator is used,
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1329+1 they shall be fair and responsive to the needs of all
1330+2 stakeholders involved in the committee.
1331+3 All committee meetings must be accessible, with rotating
1332+4 locations if meetings are held in-person, virtual
1333+5 participation options, and materials and agendas circulated in
1334+6 advance.
1335+7 There shall also be opportunities for direct input by
1336+8 committee members outside of committee meetings, such as via
1337+9 individual meetings, surveys, emails and calls, to ensure
1338+10 robust participation by stakeholders with limited capacity and
1339+11 ability to attend committee meetings. Committee meetings shall
1340+12 emphasize opportunities to bundle and coordinate delivery of
1341+13 low-income energy efficiency with other programs that serve
1342+14 low-income communities, such as the Illinois Solar for All
1343+15 Program and bill payment assistance programs. Meetings shall
1344+16 include educational opportunities for stakeholders to learn
1345+17 more about these additional offerings, and the committee shall
1346+18 assist in figuring out the best methods for coordinated
1347+19 delivery and implementation of offerings when serving
1348+20 low-income communities. The committee shall directly and
1349+21 equitably influence and inform utility low-income and
1350+22 public-housing energy efficiency programs and priorities.
1351+23 Participating utilities shall implement recommendations from
1352+24 the committee whenever possible.
1353+25 Participating utilities shall track and report how input
1354+26 from the committee has led to new approaches and changes in
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1365+1 their energy efficiency portfolios. This reporting shall occur
1366+2 at committee meetings and in quarterly energy efficiency
1367+3 reports to the Stakeholder Advisory Group and Illinois
1368+4 Commerce Commission, and other relevant reporting mechanisms.
1369+5 Participating utilities shall also report on relevant equity
1370+6 data and metrics requested by the committee, such as energy
1371+7 burden data, geographic, racial, and other relevant
1372+8 demographic data on where programs are being delivered and
1373+9 what populations programs are serving.
1374+10 The Illinois Commerce Commission shall oversee and have
1375+11 relevant staff participate in the committee. The committee
1376+12 shall have a budget of 0.25% of each utility's entire
1377+13 efficiency portfolio funding for a given year. The budget
1378+14 shall be overseen by the Commission. The budget shall be used
1379+15 to provide grants for community-based organizations serving on
1380+16 the leadership committee, stipends for community-based
1381+17 organizations participating in the committee, grants for
1382+18 community-based organizations to do energy efficiency outreach
1383+19 and education, and relevant meeting needs as determined by the
1384+20 leadership committee. The education and outreach shall
1385+21 include, but is not limited to, basic energy efficiency
1386+22 education, information about low-income energy efficiency
1387+23 programs, and information on the committee's purpose,
1388+24 structure, and activities.
1389+25 (d) Notwithstanding any other provision of law to the
1390+26 contrary, a utility providing approved energy efficiency
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1401+1 measures and, if applicable, demand-response measures in the
1402+2 State shall be permitted to recover all reasonable and
1403+3 prudently incurred costs of those measures from all retail
1404+4 customers, except as provided in subsection (l) of this
1405+5 Section, as follows, provided that nothing in this subsection
1406+6 (d) permits the double recovery of such costs from customers:
1407+7 (1) The utility may recover its costs through an
1408+8 automatic adjustment clause tariff filed with and approved
1409+9 by the Commission. The tariff shall be established outside
1410+10 the context of a general rate case. Each year the
1411+11 Commission shall initiate a review to reconcile any
1412+12 amounts collected with the actual costs and to determine
1413+13 the required adjustment to the annual tariff factor to
1414+14 match annual expenditures. To enable the financing of the
1415+15 incremental capital expenditures, including regulatory
1416+16 assets, for electric utilities that serve less than
1417+17 3,000,000 retail customers but more than 500,000 retail
1418+18 customers in the State, the utility's actual year-end
1419+19 capital structure that includes a common equity ratio,
1420+20 excluding goodwill, of up to and including 50% of the
1421+21 total capital structure shall be deemed reasonable and
1422+22 used to set rates.
1423+23 (2) A utility may recover its costs through an energy
1424+24 efficiency formula rate approved by the Commission under a
1425+25 filing under subsections (f) and (g) of this Section,
1426+26 which shall specify the cost components that form the
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1437+1 basis of the rate charged to customers with sufficient
1438+2 specificity to operate in a standardized manner and be
1439+3 updated annually with transparent information that
1440+4 reflects the utility's actual costs to be recovered during
1441+5 the applicable rate year, which is the period beginning
1442+6 with the first billing day of January and extending
1443+7 through the last billing day of the following December.
1444+8 The energy efficiency formula rate shall be implemented
1445+9 through a tariff filed with the Commission under
1446+10 subsections (f) and (g) of this Section that is consistent
1447+11 with the provisions of this paragraph (2) and that shall
1448+12 be applicable to all delivery services customers. The
1449+13 Commission shall conduct an investigation of the tariff in
1450+14 a manner consistent with the provisions of this paragraph
1451+15 (2), subsections (f) and (g) of this Section, and the
1452+16 provisions of Article IX of this Act to the extent they do
1453+17 not conflict with this paragraph (2). The energy
1454+18 efficiency formula rate approved by the Commission shall
1455+19 remain in effect at the discretion of the utility and
1456+20 shall do the following:
1457+21 (A) Provide for the recovery of the utility's
1458+22 actual costs incurred under this Section that are
1459+23 prudently incurred and reasonable in amount consistent
1460+24 with Commission practice and law. The sole fact that a
1461+25 cost differs from that incurred in a prior calendar
1462+26 year or that an investment is different from that made
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1473+1 in a prior calendar year shall not imply the
1474+2 imprudence or unreasonableness of that cost or
1475+3 investment.
1476+4 (B) Reflect the utility's actual year-end capital
1477+5 structure for the applicable calendar year, excluding
1478+6 goodwill, subject to a determination of prudence and
1479+7 reasonableness consistent with Commission practice and
1480+8 law. To enable the financing of the incremental
1481+9 capital expenditures, including regulatory assets, for
1482+10 electric utilities that serve less than 3,000,000
1483+11 retail customers but more than 500,000 retail
1484+12 customers in the State, a participating electric
1485+13 utility's actual year-end capital structure that
1486+14 includes a common equity ratio, excluding goodwill, of
1487+15 up to and including 50% of the total capital structure
1488+16 shall be deemed reasonable and used to set rates.
1489+17 (C) Include a cost of equity, which shall be
1490+18 calculated as the sum of the following:
1491+19 (i) the average for the applicable calendar
1492+20 year of the monthly average yields of 30-year U.S.
1493+21 Treasury bonds published by the Board of Governors
1494+22 of the Federal Reserve System in its weekly H.15
1495+23 Statistical Release or successor publication; and
1496+24 (ii) 580 basis points.
1497+25 At such time as the Board of Governors of the
1498+26 Federal Reserve System ceases to include the monthly
1499+
1500+
1501+
1502+
1503+
1504+ HB5539 Enrolled - 42 - LRB103 38494 CES 68630 b
1505+
1506+
1507+HB5539 Enrolled- 43 -LRB103 38494 CES 68630 b HB5539 Enrolled - 43 - LRB103 38494 CES 68630 b
1508+ HB5539 Enrolled - 43 - LRB103 38494 CES 68630 b
1509+1 average yields of 30-year U.S. Treasury bonds in its
1510+2 weekly H.15 Statistical Release or successor
1511+3 publication, the monthly average yields of the U.S.
1512+4 Treasury bonds then having the longest duration
1513+5 published by the Board of Governors in its weekly H.15
1514+6 Statistical Release or successor publication shall
1515+7 instead be used for purposes of this paragraph (2).
1516+8 (D) Permit and set forth protocols, subject to a
1517+9 determination of prudence and reasonableness
1518+10 consistent with Commission practice and law, for the
1519+11 following:
1520+12 (i) recovery of incentive compensation expense
1521+13 that is based on the achievement of operational
1522+14 metrics, including metrics related to budget
1523+15 controls, outage duration and frequency, safety,
1524+16 customer service, efficiency and productivity, and
1525+17 environmental compliance; however, this protocol
1526+18 shall not apply if such expense related to costs
1527+19 incurred under this Section is recovered under
1528+20 Article IX or Section 16-108.5 of this Act;
1529+21 incentive compensation expense that is based on
1530+22 net income or an affiliate's earnings per share
1531+23 shall not be recoverable under the energy
1532+24 efficiency formula rate;
1533+25 (ii) recovery of pension and other
1534+26 post-employment benefits expense, provided that
1535+
1536+
1537+
1538+
1539+
1540+ HB5539 Enrolled - 43 - LRB103 38494 CES 68630 b
1541+
1542+
1543+HB5539 Enrolled- 44 -LRB103 38494 CES 68630 b HB5539 Enrolled - 44 - LRB103 38494 CES 68630 b
1544+ HB5539 Enrolled - 44 - LRB103 38494 CES 68630 b
1545+1 such costs are supported by an actuarial study;
1546+2 however, this protocol shall not apply if such
1547+3 expense related to costs incurred under this
1548+4 Section is recovered under Article IX or Section
1549+5 16-108.5 of this Act;
1550+6 (iii) recovery of existing regulatory assets
1551+7 over the periods previously authorized by the
1552+8 Commission;
1553+9 (iv) as described in subsection (e),
1554+10 amortization of costs incurred under this Section;
1555+11 and
1556+12 (v) projected, weather normalized billing
1557+13 determinants for the applicable rate year.
1558+14 (E) Provide for an annual reconciliation, as
1559+15 described in paragraph (3) of this subsection (d),
1560+16 less any deferred taxes related to the reconciliation,
1561+17 with interest at an annual rate of return equal to the
1562+18 utility's weighted average cost of capital, including
1563+19 a revenue conversion factor calculated to recover or
1564+20 refund all additional income taxes that may be payable
1565+21 or receivable as a result of that return, of the energy
1566+22 efficiency revenue requirement reflected in rates for
1567+23 each calendar year, beginning with the calendar year
1568+24 in which the utility files its energy efficiency
1569+25 formula rate tariff under this paragraph (2), with
1570+26 what the revenue requirement would have been had the
1571+
1572+
1573+
1574+
1575+
1576+ HB5539 Enrolled - 44 - LRB103 38494 CES 68630 b
1577+
1578+
1579+HB5539 Enrolled- 45 -LRB103 38494 CES 68630 b HB5539 Enrolled - 45 - LRB103 38494 CES 68630 b
1580+ HB5539 Enrolled - 45 - LRB103 38494 CES 68630 b
1581+1 actual cost information for the applicable calendar
1582+2 year been available at the filing date.
1583+3 The utility shall file, together with its tariff, the
1584+4 projected costs to be incurred by the utility during the
1585+5 rate year under the utility's multi-year plan approved
1586+6 under subsections (f) and (g) of this Section, including,
1587+7 but not limited to, the projected capital investment costs
1588+8 and projected regulatory asset balances with
1589+9 correspondingly updated depreciation and amortization
1590+10 reserves and expense, that shall populate the energy
1591+11 efficiency formula rate and set the initial rates under
1592+12 the formula.
1593+13 The Commission shall review the proposed tariff in
1594+14 conjunction with its review of a proposed multi-year plan,
1595+15 as specified in paragraph (5) of subsection (g) of this
1596+16 Section. The review shall be based on the same evidentiary
1597+17 standards, including, but not limited to, those concerning
1598+18 the prudence and reasonableness of the costs incurred by
1599+19 the utility, the Commission applies in a hearing to review
1600+20 a filing for a general increase in rates under Article IX
1601+21 of this Act. The initial rates shall take effect beginning
1602+22 with the January monthly billing period following the
1603+23 Commission's approval.
1604+24 The tariff's rate design and cost allocation across
1605+25 customer classes shall be consistent with the utility's
1606+26 automatic adjustment clause tariff in effect on June 1,
1607+
1608+
1609+
1610+
1611+
1612+ HB5539 Enrolled - 45 - LRB103 38494 CES 68630 b
1613+
1614+
1615+HB5539 Enrolled- 46 -LRB103 38494 CES 68630 b HB5539 Enrolled - 46 - LRB103 38494 CES 68630 b
1616+ HB5539 Enrolled - 46 - LRB103 38494 CES 68630 b
1617+1 2017 (the effective date of Public Act 99-906); however,
1618+2 the Commission may revise the tariff's rate design and
1619+3 cost allocation in subsequent proceedings under paragraph
1620+4 (3) of this subsection (d).
1621+5 If the energy efficiency formula rate is terminated,
1622+6 the then current rates shall remain in effect until such
1623+7 time as the energy efficiency costs are incorporated into
1624+8 new rates that are set under this subsection (d) or
1625+9 Article IX of this Act, subject to retroactive rate
1626+10 adjustment, with interest, to reconcile rates charged with
1627+11 actual costs.
1628+12 (3) The provisions of this paragraph (3) shall only
1629+13 apply to an electric utility that has elected to file an
1630+14 energy efficiency formula rate under paragraph (2) of this
1631+15 subsection (d). Subsequent to the Commission's issuance of
1632+16 an order approving the utility's energy efficiency formula
1633+17 rate structure and protocols, and initial rates under
1634+18 paragraph (2) of this subsection (d), the utility shall
1635+19 file, on or before June 1 of each year, with the Chief
1636+20 Clerk of the Commission its updated cost inputs to the
1637+21 energy efficiency formula rate for the applicable rate
1638+22 year and the corresponding new charges, as well as the
1639+23 information described in paragraph (9) of subsection (g)
1640+24 of this Section. Each such filing shall conform to the
1641+25 following requirements and include the following
1642+26 information:
1643+
1644+
1645+
1646+
1647+
1648+ HB5539 Enrolled - 46 - LRB103 38494 CES 68630 b
1649+
1650+
1651+HB5539 Enrolled- 47 -LRB103 38494 CES 68630 b HB5539 Enrolled - 47 - LRB103 38494 CES 68630 b
1652+ HB5539 Enrolled - 47 - LRB103 38494 CES 68630 b
1653+1 (A) The inputs to the energy efficiency formula
1654+2 rate for the applicable rate year shall be based on the
1655+3 projected costs to be incurred by the utility during
1656+4 the rate year under the utility's multi-year plan
1657+5 approved under subsections (f) and (g) of this
1658+6 Section, including, but not limited to, projected
1659+7 capital investment costs and projected regulatory
1660+8 asset balances with correspondingly updated
1661+9 depreciation and amortization reserves and expense.
1662+10 The filing shall also include a reconciliation of the
1663+11 energy efficiency revenue requirement that was in
1664+12 effect for the prior rate year (as set by the cost
1665+13 inputs for the prior rate year) with the actual
1666+14 revenue requirement for the prior rate year
1667+15 (determined using a year-end rate base) that uses
1668+16 amounts reflected in the applicable FERC Form 1 that
1669+17 reports the actual costs for the prior rate year. Any
1670+18 over-collection or under-collection indicated by such
1671+19 reconciliation shall be reflected as a credit against,
1672+20 or recovered as an additional charge to, respectively,
1673+21 with interest calculated at a rate equal to the
1674+22 utility's weighted average cost of capital approved by
1675+23 the Commission for the prior rate year, the charges
1676+24 for the applicable rate year. Such over-collection or
1677+25 under-collection shall be adjusted to remove any
1678+26 deferred taxes related to the reconciliation, for
1679+
1680+
1681+
1682+
1683+
1684+ HB5539 Enrolled - 47 - LRB103 38494 CES 68630 b
1685+
1686+
1687+HB5539 Enrolled- 48 -LRB103 38494 CES 68630 b HB5539 Enrolled - 48 - LRB103 38494 CES 68630 b
1688+ HB5539 Enrolled - 48 - LRB103 38494 CES 68630 b
1689+1 purposes of calculating interest at an annual rate of
1690+2 return equal to the utility's weighted average cost of
1691+3 capital approved by the Commission for the prior rate
1692+4 year, including a revenue conversion factor calculated
1693+5 to recover or refund all additional income taxes that
1694+6 may be payable or receivable as a result of that
1695+7 return. Each reconciliation shall be certified by the
1696+8 participating utility in the same manner that FERC
1697+9 Form 1 is certified. The filing shall also include the
1698+10 charge or credit, if any, resulting from the
1699+11 calculation required by subparagraph (E) of paragraph
1700+12 (2) of this subsection (d).
1701+13 Notwithstanding any other provision of law to the
1702+14 contrary, the intent of the reconciliation is to
1703+15 ultimately reconcile both the revenue requirement
1704+16 reflected in rates for each calendar year, beginning
1705+17 with the calendar year in which the utility files its
1706+18 energy efficiency formula rate tariff under paragraph
1707+19 (2) of this subsection (d), with what the revenue
1708+20 requirement determined using a year-end rate base for
1709+21 the applicable calendar year would have been had the
1710+22 actual cost information for the applicable calendar
1711+23 year been available at the filing date.
1712+24 For purposes of this Section, "FERC Form 1" means
1713+25 the Annual Report of Major Electric Utilities,
1714+26 Licensees and Others that electric utilities are
1715+
1716+
1717+
1718+
1719+
1720+ HB5539 Enrolled - 48 - LRB103 38494 CES 68630 b
1721+
1722+
1723+HB5539 Enrolled- 49 -LRB103 38494 CES 68630 b HB5539 Enrolled - 49 - LRB103 38494 CES 68630 b
1724+ HB5539 Enrolled - 49 - LRB103 38494 CES 68630 b
1725+1 required to file with the Federal Energy Regulatory
1726+2 Commission under the Federal Power Act, Sections 3,
1727+3 4(a), 304 and 209, modified as necessary to be
1728+4 consistent with 83 Ill. Adm. Code Part 415 as of May 1,
1729+5 2011. Nothing in this Section is intended to allow
1730+6 costs that are not otherwise recoverable to be
1731+7 recoverable by virtue of inclusion in FERC Form 1.
1732+8 (B) The new charges shall take effect beginning on
1733+9 the first billing day of the following January billing
1734+10 period and remain in effect through the last billing
1735+11 day of the next December billing period regardless of
1736+12 whether the Commission enters upon a hearing under
1737+13 this paragraph (3).
1738+14 (C) The filing shall include relevant and
1739+15 necessary data and documentation for the applicable
1740+16 rate year. Normalization adjustments shall not be
1741+17 required.
1742+18 Within 45 days after the utility files its annual
1743+19 update of cost inputs to the energy efficiency formula
1744+20 rate, the Commission shall with reasonable notice,
1745+21 initiate a proceeding concerning whether the projected
1746+22 costs to be incurred by the utility and recovered during
1747+23 the applicable rate year, and that are reflected in the
1748+24 inputs to the energy efficiency formula rate, are
1749+25 consistent with the utility's approved multi-year plan
1750+26 under subsections (f) and (g) of this Section and whether
1751+
1752+
1753+
1754+
1755+
1756+ HB5539 Enrolled - 49 - LRB103 38494 CES 68630 b
1757+
1758+
1759+HB5539 Enrolled- 50 -LRB103 38494 CES 68630 b HB5539 Enrolled - 50 - LRB103 38494 CES 68630 b
1760+ HB5539 Enrolled - 50 - LRB103 38494 CES 68630 b
1761+1 the costs incurred by the utility during the prior rate
1762+2 year were prudent and reasonable. The Commission shall
1763+3 also have the authority to investigate the information and
1764+4 data described in paragraph (9) of subsection (g) of this
1765+5 Section, including the proposed adjustment to the
1766+6 utility's return on equity component of its weighted
1767+7 average cost of capital. During the course of the
1768+8 proceeding, each objection shall be stated with
1769+9 particularity and evidence provided in support thereof,
1770+10 after which the utility shall have the opportunity to
1771+11 rebut the evidence. Discovery shall be allowed consistent
1772+12 with the Commission's Rules of Practice, which Rules of
1773+13 Practice shall be enforced by the Commission or the
1774+14 assigned administrative law judge. The Commission shall
1775+15 apply the same evidentiary standards, including, but not
1776+16 limited to, those concerning the prudence and
1777+17 reasonableness of the costs incurred by the utility,
1778+18 during the proceeding as it would apply in a proceeding to
1779+19 review a filing for a general increase in rates under
1780+20 Article IX of this Act. The Commission shall not, however,
1781+21 have the authority in a proceeding under this paragraph
1782+22 (3) to consider or order any changes to the structure or
1783+23 protocols of the energy efficiency formula rate approved
1784+24 under paragraph (2) of this subsection (d). In a
1785+25 proceeding under this paragraph (3), the Commission shall
1786+26 enter its order no later than the earlier of 195 days after
1787+
1788+
1789+
1790+
1791+
1792+ HB5539 Enrolled - 50 - LRB103 38494 CES 68630 b
1793+
1794+
1795+HB5539 Enrolled- 51 -LRB103 38494 CES 68630 b HB5539 Enrolled - 51 - LRB103 38494 CES 68630 b
1796+ HB5539 Enrolled - 51 - LRB103 38494 CES 68630 b
1797+1 the utility's filing of its annual update of cost inputs
1798+2 to the energy efficiency formula rate or December 15. The
1799+3 utility's proposed return on equity calculation, as
1800+4 described in paragraphs (7) through (9) of subsection (g)
1801+5 of this Section, shall be deemed the final, approved
1802+6 calculation on December 15 of the year in which it is filed
1803+7 unless the Commission enters an order on or before
1804+8 December 15, after notice and hearing, that modifies such
1805+9 calculation consistent with this Section. The Commission's
1806+10 determinations of the prudence and reasonableness of the
1807+11 costs incurred, and determination of such return on equity
1808+12 calculation, for the applicable calendar year shall be
1809+13 final upon entry of the Commission's order and shall not
1810+14 be subject to reopening, reexamination, or collateral
1811+15 attack in any other Commission proceeding, case, docket,
1812+16 order, rule, or regulation; however, nothing in this
1813+17 paragraph (3) shall prohibit a party from petitioning the
1814+18 Commission to rehear or appeal to the courts the order
1815+19 under the provisions of this Act.
1816+20 (e) Beginning on June 1, 2017 (the effective date of
1817+21 Public Act 99-906), a utility subject to the requirements of
1818+22 this Section may elect to defer, as a regulatory asset, up to
1819+23 the full amount of its expenditures incurred under this
1820+24 Section for each annual period, including, but not limited to,
1821+25 any expenditures incurred above the funding level set by
1822+26 subsection (f) of this Section for a given year. The total
1823+
1824+
1825+
1826+
1827+
1828+ HB5539 Enrolled - 51 - LRB103 38494 CES 68630 b
1829+
1830+
1831+HB5539 Enrolled- 52 -LRB103 38494 CES 68630 b HB5539 Enrolled - 52 - LRB103 38494 CES 68630 b
1832+ HB5539 Enrolled - 52 - LRB103 38494 CES 68630 b
1833+1 expenditures deferred as a regulatory asset in a given year
1834+2 shall be amortized and recovered over a period that is equal to
1835+3 the weighted average of the energy efficiency measure lives
1836+4 implemented for that year that are reflected in the regulatory
1837+5 asset. The unamortized balance shall be recognized as of
1838+6 December 31 for a given year. The utility shall also earn a
1839+7 return on the total of the unamortized balances of all of the
1840+8 energy efficiency regulatory assets, less any deferred taxes
1841+9 related to those unamortized balances, at an annual rate equal
1842+10 to the utility's weighted average cost of capital that
1843+11 includes, based on a year-end capital structure, the utility's
1844+12 actual cost of debt for the applicable calendar year and a cost
1845+13 of equity, which shall be calculated as the sum of the (i) the
1846+14 average for the applicable calendar year of the monthly
1847+15 average yields of 30-year U.S. Treasury bonds published by the
1848+16 Board of Governors of the Federal Reserve System in its weekly
1849+17 H.15 Statistical Release or successor publication; and (ii)
1850+18 580 basis points, including a revenue conversion factor
1851+19 calculated to recover or refund all additional income taxes
1852+20 that may be payable or receivable as a result of that return.
1853+21 Capital investment costs shall be depreciated and recovered
1854+22 over their useful lives consistent with generally accepted
1855+23 accounting principles. The weighted average cost of capital
1856+24 shall be applied to the capital investment cost balance, less
1857+25 any accumulated depreciation and accumulated deferred income
1858+26 taxes, as of December 31 for a given year.
1859+
1860+
1861+
1862+
1863+
1864+ HB5539 Enrolled - 52 - LRB103 38494 CES 68630 b
1865+
1866+
1867+HB5539 Enrolled- 53 -LRB103 38494 CES 68630 b HB5539 Enrolled - 53 - LRB103 38494 CES 68630 b
1868+ HB5539 Enrolled - 53 - LRB103 38494 CES 68630 b
1869+1 When an electric utility creates a regulatory asset under
1870+2 the provisions of this Section, the costs are recovered over a
1871+3 period during which customers also receive a benefit which is
1872+4 in the public interest. Accordingly, it is the intent of the
1873+5 General Assembly that an electric utility that elects to
1874+6 create a regulatory asset under the provisions of this Section
1875+7 shall recover all of the associated costs as set forth in this
1876+8 Section. After the Commission has approved the prudence and
1877+9 reasonableness of the costs that comprise the regulatory
1878+10 asset, the electric utility shall be permitted to recover all
1879+11 such costs, and the value and recoverability through rates of
1880+12 the associated regulatory asset shall not be limited, altered,
1881+13 impaired, or reduced.
1882+14 (f) Beginning in 2017, each electric utility shall file an
1883+15 energy efficiency plan with the Commission to meet the energy
1884+16 efficiency standards for the next applicable multi-year period
1885+17 beginning January 1 of the year following the filing,
1886+18 according to the schedule set forth in paragraphs (1) through
1887+19 (3) of this subsection (f). If a utility does not file such a
1888+20 plan on or before the applicable filing deadline for the plan,
1889+21 it shall face a penalty of $100,000 per day until the plan is
1890+22 filed.
1891+23 (1) No later than 30 days after June 1, 2017 (the
1892+24 effective date of Public Act 99-906), each electric
1893+25 utility shall file a 4-year energy efficiency plan
1894+26 commencing on January 1, 2018 that is designed to achieve
1895+
1896+
1897+
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1899+
1900+ HB5539 Enrolled - 53 - LRB103 38494 CES 68630 b
1901+
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1903+HB5539 Enrolled- 54 -LRB103 38494 CES 68630 b HB5539 Enrolled - 54 - LRB103 38494 CES 68630 b
1904+ HB5539 Enrolled - 54 - LRB103 38494 CES 68630 b
1905+1 the cumulative persisting annual savings goals specified
1906+2 in paragraphs (1) through (4) of subsection (b-5) of this
1907+3 Section or in paragraphs (1) through (4) of subsection
1908+4 (b-15) of this Section, as applicable, through
1909+5 implementation of energy efficiency measures; however, the
1910+6 goals may be reduced if the utility's expenditures are
1911+7 limited pursuant to subsection (m) of this Section or, for
1912+8 a utility that serves less than 3,000,000 retail
1913+9 customers, if each of the following conditions are met:
1914+10 (A) the plan's analysis and forecasts of the utility's
1915+11 ability to acquire energy savings demonstrate that
1916+12 achievement of such goals is not cost effective; and (B)
1917+13 the amount of energy savings achieved by the utility as
1918+14 determined by the independent evaluator for the most
1919+15 recent year for which savings have been evaluated
1920+16 preceding the plan filing was less than the average annual
1921+17 amount of savings required to achieve the goals for the
1922+18 applicable 4-year plan period. Except as provided in
1923+19 subsection (m) of this Section, annual increases in
1924+20 cumulative persisting annual savings goals during the
1925+21 applicable 4-year plan period shall not be reduced to
1926+22 amounts that are less than the maximum amount of
1927+23 cumulative persisting annual savings that is forecast to
1928+24 be cost-effectively achievable during the 4-year plan
1929+25 period. The Commission shall review any proposed goal
1930+26 reduction as part of its review and approval of the
1931+
1932+
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1934+
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1936+ HB5539 Enrolled - 54 - LRB103 38494 CES 68630 b
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1939+HB5539 Enrolled- 55 -LRB103 38494 CES 68630 b HB5539 Enrolled - 55 - LRB103 38494 CES 68630 b
1940+ HB5539 Enrolled - 55 - LRB103 38494 CES 68630 b
1941+1 utility's proposed plan.
1942+2 (2) No later than March 1, 2021, each electric utility
1943+3 shall file a 4-year energy efficiency plan commencing on
1944+4 January 1, 2022 that is designed to achieve the cumulative
1945+5 persisting annual savings goals specified in paragraphs
1946+6 (5) through (8) of subsection (b-5) of this Section or in
1947+7 paragraphs (5) through (8) of subsection (b-15) of this
1948+8 Section, as applicable, through implementation of energy
1949+9 efficiency measures; however, the goals may be reduced if
1950+10 either (1) clear and convincing evidence demonstrates,
1951+11 through independent analysis, that the expenditure limits
1952+12 in subsection (m) of this Section preclude full
1953+13 achievement of the goals or (2) each of the following
1954+14 conditions are met: (A) the plan's analysis and forecasts
1955+15 of the utility's ability to acquire energy savings
1956+16 demonstrate by clear and convincing evidence and through
1957+17 independent analysis that achievement of such goals is not
1958+18 cost effective; and (B) the amount of energy savings
1959+19 achieved by the utility as determined by the independent
1960+20 evaluator for the most recent year for which savings have
1961+21 been evaluated preceding the plan filing was less than the
1962+22 average annual amount of savings required to achieve the
1963+23 goals for the applicable 4-year plan period. If there is
1964+24 not clear and convincing evidence that achieving the
1965+25 savings goals specified in paragraph (b-5) or (b-15) of
1966+26 this Section is possible both cost-effectively and within
1967+
1968+
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1973+
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1976+ HB5539 Enrolled - 56 - LRB103 38494 CES 68630 b
1977+1 the expenditure limits in subsection (m), such savings
1978+2 goals shall not be reduced. Except as provided in
1979+3 subsection (m) of this Section, annual increases in
1980+4 cumulative persisting annual savings goals during the
1981+5 applicable 4-year plan period shall not be reduced to
1982+6 amounts that are less than the maximum amount of
1983+7 cumulative persisting annual savings that is forecast to
1984+8 be cost-effectively achievable during the 4-year plan
1985+9 period. The Commission shall review any proposed goal
1986+10 reduction as part of its review and approval of the
1987+11 utility's proposed plan.
1988+12 (3) No later than March 1, 2025, each electric utility
1989+13 shall file a 4-year energy efficiency plan commencing on
1990+14 January 1, 2026 that is designed to achieve the cumulative
1991+15 persisting annual savings goals specified in paragraphs
1992+16 (9) through (12) of subsection (b-5) of this Section or in
1993+17 paragraphs (9) through (12) of subsection (b-15) of this
1994+18 Section, as applicable, through implementation of energy
1995+19 efficiency measures; however, the goals may be reduced if
1996+20 either (1) clear and convincing evidence demonstrates,
1997+21 through independent analysis, that the expenditure limits
1998+22 in subsection (m) of this Section preclude full
1999+23 achievement of the goals or (2) each of the following
2000+24 conditions are met: (A) the plan's analysis and forecasts
2001+25 of the utility's ability to acquire energy savings
2002+26 demonstrate by clear and convincing evidence and through
2003+
2004+
2005+
2006+
2007+
2008+ HB5539 Enrolled - 56 - LRB103 38494 CES 68630 b
2009+
2010+
2011+HB5539 Enrolled- 57 -LRB103 38494 CES 68630 b HB5539 Enrolled - 57 - LRB103 38494 CES 68630 b
2012+ HB5539 Enrolled - 57 - LRB103 38494 CES 68630 b
2013+1 independent analysis that achievement of such goals is not
2014+2 cost effective; and (B) the amount of energy savings
2015+3 achieved by the utility as determined by the independent
2016+4 evaluator for the most recent year for which savings have
2017+5 been evaluated preceding the plan filing was less than the
2018+6 average annual amount of savings required to achieve the
2019+7 goals for the applicable 4-year plan period. If there is
2020+8 not clear and convincing evidence that achieving the
2021+9 savings goals specified in paragraphs (b-5) or (b-15) of
2022+10 this Section is possible both cost-effectively and within
2023+11 the expenditure limits in subsection (m), such savings
2024+12 goals shall not be reduced. Except as provided in
2025+13 subsection (m) of this Section, annual increases in
2026+14 cumulative persisting annual savings goals during the
2027+15 applicable 4-year plan period shall not be reduced to
2028+16 amounts that are less than the maximum amount of
2029+17 cumulative persisting annual savings that is forecast to
2030+18 be cost-effectively achievable during the 4-year plan
2031+19 period. The Commission shall review any proposed goal
2032+20 reduction as part of its review and approval of the
2033+21 utility's proposed plan.
2034+22 (4) No later than March 1, 2029, and every 4 years
2035+23 thereafter, each electric utility shall file a 4-year
2036+24 energy efficiency plan commencing on January 1, 2030, and
2037+25 every 4 years thereafter, respectively, that is designed
2038+26 to achieve the cumulative persisting annual savings goals
2039+
2040+
2041+
2042+
2043+
2044+ HB5539 Enrolled - 57 - LRB103 38494 CES 68630 b
2045+
2046+
2047+HB5539 Enrolled- 58 -LRB103 38494 CES 68630 b HB5539 Enrolled - 58 - LRB103 38494 CES 68630 b
2048+ HB5539 Enrolled - 58 - LRB103 38494 CES 68630 b
2049+1 established by the Illinois Commerce Commission pursuant
2050+2 to direction of subsections (b-5) and (b-15) of this
2051+3 Section, as applicable, through implementation of energy
2052+4 efficiency measures; however, the goals may be reduced if
2053+5 either (1) clear and convincing evidence and independent
2054+6 analysis demonstrates that the expenditure limits in
2055+7 subsection (m) of this Section preclude full achievement
2056+8 of the goals or (2) each of the following conditions are
2057+9 met: (A) the plan's analysis and forecasts of the
2058+10 utility's ability to acquire energy savings demonstrate by
2059+11 clear and convincing evidence and through independent
2060+12 analysis that achievement of such goals is not
2061+13 cost-effective; and (B) the amount of energy savings
2062+14 achieved by the utility as determined by the independent
2063+15 evaluator for the most recent year for which savings have
2064+16 been evaluated preceding the plan filing was less than the
2065+17 average annual amount of savings required to achieve the
2066+18 goals for the applicable 4-year plan period. If there is
2067+19 not clear and convincing evidence that achieving the
2068+20 savings goals specified in paragraphs (b-5) or (b-15) of
2069+21 this Section is possible both cost-effectively and within
2070+22 the expenditure limits in subsection (m), such savings
2071+23 goals shall not be reduced. Except as provided in
2072+24 subsection (m) of this Section, annual increases in
2073+25 cumulative persisting annual savings goals during the
2074+26 applicable 4-year plan period shall not be reduced to
2075+
2076+
2077+
2078+
2079+
2080+ HB5539 Enrolled - 58 - LRB103 38494 CES 68630 b
2081+
2082+
2083+HB5539 Enrolled- 59 -LRB103 38494 CES 68630 b HB5539 Enrolled - 59 - LRB103 38494 CES 68630 b
2084+ HB5539 Enrolled - 59 - LRB103 38494 CES 68630 b
2085+1 amounts that are less than the maximum amount of
2086+2 cumulative persisting annual savings that is forecast to
2087+3 be cost-effectively achievable during the 4-year plan
2088+4 period. The Commission shall review any proposed goal
2089+5 reduction as part of its review and approval of the
2090+6 utility's proposed plan.
2091+7 Each utility's plan shall set forth the utility's
2092+8 proposals to meet the energy efficiency standards identified
2093+9 in subsection (b-5) or (b-15), as applicable and as such
2094+10 standards may have been modified under this subsection (f),
2095+11 taking into account the unique circumstances of the utility's
2096+12 service territory. For those plans commencing on January 1,
2097+13 2018, the Commission shall seek public comment on the
2098+14 utility's plan and shall issue an order approving or
2099+15 disapproving each plan no later than 105 days after June 1,
2100+16 2017 (the effective date of Public Act 99-906). For those
2101+17 plans commencing after December 31, 2021, the Commission shall
2102+18 seek public comment on the utility's plan and shall issue an
2103+19 order approving or disapproving each plan within 6 months
2104+20 after its submission. If the Commission disapproves a plan,
2105+21 the Commission shall, within 30 days, describe in detail the
2106+22 reasons for the disapproval and describe a path by which the
2107+23 utility may file a revised draft of the plan to address the
2108+24 Commission's concerns satisfactorily. If the utility does not
2109+25 refile with the Commission within 60 days, the utility shall
2110+26 be subject to penalties at a rate of $100,000 per day until the
2111+
2112+
2113+
2114+
2115+
2116+ HB5539 Enrolled - 59 - LRB103 38494 CES 68630 b
2117+
2118+
2119+HB5539 Enrolled- 60 -LRB103 38494 CES 68630 b HB5539 Enrolled - 60 - LRB103 38494 CES 68630 b
2120+ HB5539 Enrolled - 60 - LRB103 38494 CES 68630 b
2121+1 plan is filed. This process shall continue, and penalties
2122+2 shall accrue, until the utility has successfully filed a
2123+3 portfolio of energy efficiency and demand-response measures.
2124+4 Penalties shall be deposited into the Energy Efficiency Trust
2125+5 Fund.
2126+6 (g) In submitting proposed plans and funding levels under
2127+7 subsection (f) of this Section to meet the savings goals
2128+8 identified in subsection (b-5) or (b-15) of this Section, as
2129+9 applicable, the utility shall:
2130+10 (1) Demonstrate that its proposed energy efficiency
2131+11 measures will achieve the applicable requirements that are
2132+12 identified in subsection (b-5) or (b-15) of this Section,
2133+13 as modified by subsection (f) of this Section.
2134+14 (2) (Blank).
2135+15 (2.5) Demonstrate consideration of program options for
2136+16 (A) advancing new building codes, appliance standards, and
2137+17 municipal regulations governing existing and new building
2138+18 efficiency improvements and (B) supporting efforts to
2139+19 improve compliance with new building codes, appliance
2140+20 standards and municipal regulations, as potentially
2141+21 cost-effective means of acquiring energy savings to count
2142+22 toward savings goals.
2143+23 (3) Demonstrate that its overall portfolio of
2144+24 measures, not including low-income programs described in
2145+25 subsection (c) of this Section, is cost-effective using
2146+26 the total resource cost test or complies with paragraphs
2147+
2148+
2149+
2150+
2151+
2152+ HB5539 Enrolled - 60 - LRB103 38494 CES 68630 b
2153+
2154+
2155+HB5539 Enrolled- 61 -LRB103 38494 CES 68630 b HB5539 Enrolled - 61 - LRB103 38494 CES 68630 b
2156+ HB5539 Enrolled - 61 - LRB103 38494 CES 68630 b
2157+1 (1) through (3) of subsection (f) of this Section and
2158+2 represents a diverse cross-section of opportunities for
2159+3 customers of all rate classes, other than those customers
2160+4 described in subsection (l) of this Section, to
2161+5 participate in the programs. Individual measures need not
2162+6 be cost effective.
2163+7 (3.5) Demonstrate that the utility's plan integrates
2164+8 the delivery of energy efficiency programs with natural
2165+9 gas efficiency programs, programs promoting distributed
2166+10 solar, programs promoting demand response and other
2167+11 efforts to address bill payment issues, including, but not
2168+12 limited to, LIHEAP and the Percentage of Income Payment
2169+13 Plan, to the extent such integration is practical and has
2170+14 the potential to enhance customer engagement, minimize
2171+15 market confusion, or reduce administrative costs.
2172+16 (4) Present a third-party energy efficiency
2173+17 implementation program subject to the following
2174+18 requirements:
2175+19 (A) beginning with the year commencing January 1,
2176+20 2019, electric utilities that serve more than
2177+21 3,000,000 retail customers in the State shall fund
2178+22 third-party energy efficiency programs in an amount
2179+23 that is no less than $25,000,000 per year, and
2180+24 electric utilities that serve less than 3,000,000
2181+25 retail customers but more than 500,000 retail
2182+26 customers in the State shall fund third-party energy
2183+
2184+
2185+
2186+
2187+
2188+ HB5539 Enrolled - 61 - LRB103 38494 CES 68630 b
2189+
2190+
2191+HB5539 Enrolled- 62 -LRB103 38494 CES 68630 b HB5539 Enrolled - 62 - LRB103 38494 CES 68630 b
2192+ HB5539 Enrolled - 62 - LRB103 38494 CES 68630 b
2193+1 efficiency programs in an amount that is no less than
2194+2 $8,350,000 per year;
2195+3 (B) during 2018, the utility shall conduct a
2196+4 solicitation process for purposes of requesting
2197+5 proposals from third-party vendors for those
2198+6 third-party energy efficiency programs to be offered
2199+7 during one or more of the years commencing January 1,
2200+8 2019, January 1, 2020, and January 1, 2021; for those
2201+9 multi-year plans commencing on January 1, 2022 and
2202+10 January 1, 2026, the utility shall conduct a
2203+11 solicitation process during 2021 and 2025,
2204+12 respectively, for purposes of requesting proposals
2205+13 from third-party vendors for those third-party energy
2206+14 efficiency programs to be offered during one or more
2207+15 years of the respective multi-year plan period; for
2208+16 each solicitation process, the utility shall identify
2209+17 the sector, technology, or geographical area for which
2210+18 it is seeking requests for proposals; the solicitation
2211+19 process must be either for programs that fill gaps in
2212+20 the utility's program portfolio and for programs that
2213+21 target low-income customers, business sectors,
2214+22 building types, geographies, or other specific parts
2215+23 of its customer base with initiatives that would be
2216+24 more effective at reaching these customer segments
2217+25 than the utilities' programs filed in its energy
2218+26 efficiency plans;
2219+
2220+
2221+
2222+
2223+
2224+ HB5539 Enrolled - 62 - LRB103 38494 CES 68630 b
2225+
2226+
2227+HB5539 Enrolled- 63 -LRB103 38494 CES 68630 b HB5539 Enrolled - 63 - LRB103 38494 CES 68630 b
2228+ HB5539 Enrolled - 63 - LRB103 38494 CES 68630 b
2229+1 (C) the utility shall propose the bidder
2230+2 qualifications, performance measurement process, and
2231+3 contract structure, which must include a performance
2232+4 payment mechanism and general terms and conditions;
2233+5 the proposed qualifications, process, and structure
2234+6 shall be subject to Commission approval; and
2235+7 (D) the utility shall retain an independent third
2236+8 party to score the proposals received through the
2237+9 solicitation process described in this paragraph (4),
2238+10 rank them according to their cost per lifetime
2239+11 kilowatt-hours saved, and assemble the portfolio of
2240+12 third-party programs.
2241+13 The electric utility shall recover all costs
2242+14 associated with Commission-approved, third-party
2243+15 administered programs regardless of the success of those
2244+16 programs.
2245+17 (4.5) Implement cost-effective demand-response
2246+18 measures to reduce peak demand by 0.1% over the prior year
2247+19 for eligible retail customers, as defined in Section
2248+20 16-111.5 of this Act, and for customers that elect hourly
2249+21 service from the utility pursuant to Section 16-107 of
2250+22 this Act, provided those customers have not been declared
2251+23 competitive. This requirement continues until December 31,
2252+24 2026.
2253+25 (5) Include a proposed or revised cost-recovery tariff
2254+26 mechanism, as provided for under subsection (d) of this
2255+
2256+
2257+
2258+
2259+
2260+ HB5539 Enrolled - 63 - LRB103 38494 CES 68630 b
2261+
2262+
2263+HB5539 Enrolled- 64 -LRB103 38494 CES 68630 b HB5539 Enrolled - 64 - LRB103 38494 CES 68630 b
2264+ HB5539 Enrolled - 64 - LRB103 38494 CES 68630 b
2265+1 Section, to fund the proposed energy efficiency and
2266+2 demand-response measures and to ensure the recovery of the
2267+3 prudently and reasonably incurred costs of
2268+4 Commission-approved programs.
2269+5 (6) Provide for an annual independent evaluation of
2270+6 the performance of the cost-effectiveness of the utility's
2271+7 portfolio of measures, as well as a full review of the
2272+8 multi-year plan results of the broader net program impacts
2273+9 and, to the extent practical, for adjustment of the
2274+10 measures on a going-forward basis as a result of the
2275+11 evaluations. The resources dedicated to evaluation shall
2276+12 not exceed 3% of portfolio resources in any given year.
2277+13 (7) For electric utilities that serve more than
2278+14 3,000,000 retail customers in the State:
2279+15 (A) Through December 31, 2025, provide for an
2280+16 adjustment to the return on equity component of the
2281+17 utility's weighted average cost of capital calculated
2282+18 under subsection (d) of this Section:
2283+19 (i) If the independent evaluator determines
2284+20 that the utility achieved a cumulative persisting
2285+21 annual savings that is less than the applicable
2286+22 annual incremental goal, then the return on equity
2287+23 component shall be reduced by a maximum of 200
2288+24 basis points in the event that the utility
2289+25 achieved no more than 75% of such goal. If the
2290+26 utility achieved more than 75% of the applicable
2291+
2292+
2293+
2294+
2295+
2296+ HB5539 Enrolled - 64 - LRB103 38494 CES 68630 b
2297+
2298+
2299+HB5539 Enrolled- 65 -LRB103 38494 CES 68630 b HB5539 Enrolled - 65 - LRB103 38494 CES 68630 b
2300+ HB5539 Enrolled - 65 - LRB103 38494 CES 68630 b
2301+1 annual incremental goal but less than 100% of such
2302+2 goal, then the return on equity component shall be
2303+3 reduced by 8 basis points for each percent by
2304+4 which the utility failed to achieve the goal.
2305+5 (ii) If the independent evaluator determines
2306+6 that the utility achieved a cumulative persisting
2307+7 annual savings that is more than the applicable
2308+8 annual incremental goal, then the return on equity
2309+9 component shall be increased by a maximum of 200
2310+10 basis points in the event that the utility
2311+11 achieved at least 125% of such goal. If the
2312+12 utility achieved more than 100% of the applicable
2313+13 annual incremental goal but less than 125% of such
2314+14 goal, then the return on equity component shall be
2315+15 increased by 8 basis points for each percent by
2316+16 which the utility achieved above the goal. If the
2317+17 applicable annual incremental goal was reduced
2318+18 under paragraph (1) or (2) of subsection (f) of
2319+19 this Section, then the following adjustments shall
2320+20 be made to the calculations described in this item
2321+21 (ii):
2322+22 (aa) the calculation for determining
2323+23 achievement that is at least 125% of the
2324+24 applicable annual incremental goal shall use
2325+25 the unreduced applicable annual incremental
2326+26 goal to set the value; and
2327+
2328+
2329+
2330+
2331+
2332+ HB5539 Enrolled - 65 - LRB103 38494 CES 68630 b
2333+
2334+
2335+HB5539 Enrolled- 66 -LRB103 38494 CES 68630 b HB5539 Enrolled - 66 - LRB103 38494 CES 68630 b
2336+ HB5539 Enrolled - 66 - LRB103 38494 CES 68630 b
2337+1 (bb) the calculation for determining
2338+2 achievement that is less than 125% but more
2339+3 than 100% of the applicable annual incremental
2340+4 goal shall use the reduced applicable annual
2341+5 incremental goal to set the value for 100%
2342+6 achievement of the goal and shall use the
2343+7 unreduced goal to set the value for 125%
2344+8 achievement. The 8 basis point value shall
2345+9 also be modified, as necessary, so that the
2346+10 200 basis points are evenly apportioned among
2347+11 each percentage point value between 100% and
2348+12 125% achievement.
2349+13 (B) For the period January 1, 2026 through
2350+14 December 31, 2029 and in all subsequent 4-year
2351+15 periods, provide for an adjustment to the return on
2352+16 equity component of the utility's weighted average
2353+17 cost of capital calculated under subsection (d) of
2354+18 this Section:
2355+19 (i) If the independent evaluator determines
2356+20 that the utility achieved a cumulative persisting
2357+21 annual savings that is less than the applicable
2358+22 annual incremental goal, then the return on equity
2359+23 component shall be reduced by a maximum of 200
2360+24 basis points in the event that the utility
2361+25 achieved no more than 66% of such goal. If the
2362+26 utility achieved more than 66% of the applicable
2363+
2364+
2365+
2366+
2367+
2368+ HB5539 Enrolled - 66 - LRB103 38494 CES 68630 b
2369+
2370+
2371+HB5539 Enrolled- 67 -LRB103 38494 CES 68630 b HB5539 Enrolled - 67 - LRB103 38494 CES 68630 b
2372+ HB5539 Enrolled - 67 - LRB103 38494 CES 68630 b
2373+1 annual incremental goal but less than 100% of such
2374+2 goal, then the return on equity component shall be
2375+3 reduced by 6 basis points for each percent by
2376+4 which the utility failed to achieve the goal.
2377+5 (ii) If the independent evaluator determines
2378+6 that the utility achieved a cumulative persisting
2379+7 annual savings that is more than the applicable
2380+8 annual incremental goal, then the return on equity
2381+9 component shall be increased by a maximum of 200
2382+10 basis points in the event that the utility
2383+11 achieved at least 134% of such goal. If the
2384+12 utility achieved more than 100% of the applicable
2385+13 annual incremental goal but less than 134% of such
2386+14 goal, then the return on equity component shall be
2387+15 increased by 6 basis points for each percent by
2388+16 which the utility achieved above the goal. If the
2389+17 applicable annual incremental goal was reduced
2390+18 under paragraph (3) of subsection (f) of this
2391+19 Section, then the following adjustments shall be
2392+20 made to the calculations described in this item
2393+21 (ii):
2394+22 (aa) the calculation for determining
2395+23 achievement that is at least 134% of the
2396+24 applicable annual incremental goal shall use
2397+25 the unreduced applicable annual incremental
2398+26 goal to set the value; and
2399+
2400+
2401+
2402+
2403+
2404+ HB5539 Enrolled - 67 - LRB103 38494 CES 68630 b
2405+
2406+
2407+HB5539 Enrolled- 68 -LRB103 38494 CES 68630 b HB5539 Enrolled - 68 - LRB103 38494 CES 68630 b
2408+ HB5539 Enrolled - 68 - LRB103 38494 CES 68630 b
2409+1 (bb) the calculation for determining
2410+2 achievement that is less than 134% but more
2411+3 than 100% of the applicable annual incremental
2412+4 goal shall use the reduced applicable annual
2413+5 incremental goal to set the value for 100%
2414+6 achievement of the goal and shall use the
2415+7 unreduced goal to set the value for 134%
2416+8 achievement. The 6 basis point value shall
2417+9 also be modified, as necessary, so that the
2418+10 200 basis points are evenly apportioned among
2419+11 each percentage point value between 100% and
2420+12 134% achievement.
2421+13 (C) Notwithstanding the provisions of
2422+14 subparagraphs (A) and (B) of this paragraph (7), if
2423+15 the applicable annual incremental goal for an electric
2424+16 utility is ever less than 0.6% of deemed average
2425+17 weather normalized sales of electric power and energy
2426+18 during calendar years 2014, 2015, and 2016, an
2427+19 adjustment to the return on equity component of the
2428+20 utility's weighted average cost of capital calculated
2429+21 under subsection (d) of this Section shall be made as
2430+22 follows:
2431+23 (i) If the independent evaluator determines
2432+24 that the utility achieved a cumulative persisting
2433+25 annual savings that is less than would have been
2434+26 achieved had the applicable annual incremental
2435+
2436+
2437+
2438+
2439+
2440+ HB5539 Enrolled - 68 - LRB103 38494 CES 68630 b
2441+
2442+
2443+HB5539 Enrolled- 69 -LRB103 38494 CES 68630 b HB5539 Enrolled - 69 - LRB103 38494 CES 68630 b
2444+ HB5539 Enrolled - 69 - LRB103 38494 CES 68630 b
2445+1 goal been achieved, then the return on equity
2446+2 component shall be reduced by a maximum of 200
2447+3 basis points if the utility achieved no more than
2448+4 75% of its applicable annual total savings
2449+5 requirement as defined in paragraph (7.5) of this
2450+6 subsection. If the utility achieved more than 75%
2451+7 of the applicable annual total savings requirement
2452+8 but less than 100% of such goal, then the return on
2453+9 equity component shall be reduced by 8 basis
2454+10 points for each percent by which the utility
2455+11 failed to achieve the goal.
2456+12 (ii) If the independent evaluator determines
2457+13 that the utility achieved a cumulative persisting
2458+14 annual savings that is more than would have been
2459+15 achieved had the applicable annual incremental
2460+16 goal been achieved, then the return on equity
2461+17 component shall be increased by a maximum of 200
2462+18 basis points if the utility achieved at least 125%
2463+19 of its applicable annual total savings
2464+20 requirement. If the utility achieved more than
2465+21 100% of the applicable annual total savings
2466+22 requirement but less than 125% of such goal, then
2467+23 the return on equity component shall be increased
2468+24 by 8 basis points for each percent by which the
2469+25 utility achieved above the applicable annual total
2470+26 savings requirement. If the applicable annual
2471+
2472+
2473+
2474+
2475+
2476+ HB5539 Enrolled - 69 - LRB103 38494 CES 68630 b
2477+
2478+
2479+HB5539 Enrolled- 70 -LRB103 38494 CES 68630 b HB5539 Enrolled - 70 - LRB103 38494 CES 68630 b
2480+ HB5539 Enrolled - 70 - LRB103 38494 CES 68630 b
2481+1 incremental goal was reduced under paragraph (1)
2482+2 or (2) of subsection (f) of this Section, then the
2483+3 following adjustments shall be made to the
2484+4 calculations described in this item (ii):
2485+5 (aa) the calculation for determining
2486+6 achievement that is at least 125% of the
2487+7 applicable annual total savings requirement
2488+8 shall use the unreduced applicable annual
2489+9 incremental goal to set the value; and
2490+10 (bb) the calculation for determining
2491+11 achievement that is less than 125% but more
2492+12 than 100% of the applicable annual total
2493+13 savings requirement shall use the reduced
2494+14 applicable annual incremental goal to set the
2495+15 value for 100% achievement of the goal and
2496+16 shall use the unreduced goal to set the value
2497+17 for 125% achievement. The 8 basis point value
2498+18 shall also be modified, as necessary, so that
2499+19 the 200 basis points are evenly apportioned
2500+20 among each percentage point value between 100%
2501+21 and 125% achievement.
2502+22 (7.5) For purposes of this Section, the term
2503+23 "applicable annual incremental goal" means the difference
2504+24 between the cumulative persisting annual savings goal for
2505+25 the calendar year that is the subject of the independent
2506+26 evaluator's determination and the cumulative persisting
2507+
2508+
2509+
2510+
2511+
2512+ HB5539 Enrolled - 70 - LRB103 38494 CES 68630 b
2513+
2514+
2515+HB5539 Enrolled- 71 -LRB103 38494 CES 68630 b HB5539 Enrolled - 71 - LRB103 38494 CES 68630 b
2516+ HB5539 Enrolled - 71 - LRB103 38494 CES 68630 b
2517+1 annual savings goal for the immediately preceding calendar
2518+2 year, as such goals are defined in subsections (b-5) and
2519+3 (b-15) of this Section and as these goals may have been
2520+4 modified as provided for under subsection (b-20) and
2521+5 paragraphs (1) through (3) of subsection (f) of this
2522+6 Section. Under subsections (b), (b-5), (b-10), and (b-15)
2523+7 of this Section, a utility must first replace energy
2524+8 savings from measures that have expired before any
2525+9 progress towards achievement of its applicable annual
2526+10 incremental goal may be counted. Savings may expire
2527+11 because measures installed in previous years have reached
2528+12 the end of their lives, because measures installed in
2529+13 previous years are producing lower savings in the current
2530+14 year than in the previous year, or for other reasons
2531+15 identified by independent evaluators. Notwithstanding
2532+16 anything else set forth in this Section, the difference
2533+17 between the actual annual incremental savings achieved in
2534+18 any given year, including the replacement of energy
2535+19 savings that have expired, and the applicable annual
2536+20 incremental goal shall not affect adjustments to the
2537+21 return on equity for subsequent calendar years under this
2538+22 subsection (g).
2539+23 In this Section, "applicable annual total savings
2540+24 requirement" means the total amount of new annual savings
2541+25 that the utility must achieve in any given year to achieve
2542+26 the applicable annual incremental goal. This is equal to
2543+
2544+
2545+
2546+
2547+
2548+ HB5539 Enrolled - 71 - LRB103 38494 CES 68630 b
2549+
2550+
2551+HB5539 Enrolled- 72 -LRB103 38494 CES 68630 b HB5539 Enrolled - 72 - LRB103 38494 CES 68630 b
2552+ HB5539 Enrolled - 72 - LRB103 38494 CES 68630 b
2553+1 the applicable annual incremental goal plus the total new
2554+2 annual savings that are required to replace savings that
2555+3 expired in or at the end of the previous year.
2556+4 (8) For electric utilities that serve less than
2557+5 3,000,000 retail customers but more than 500,000 retail
2558+6 customers in the State:
2559+7 (A) Through December 31, 2025, the applicable
2560+8 annual incremental goal shall be compared to the
2561+9 annual incremental savings as determined by the
2562+10 independent evaluator.
2563+11 (i) The return on equity component shall be
2564+12 reduced by 8 basis points for each percent by
2565+13 which the utility did not achieve 84.4% of the
2566+14 applicable annual incremental goal.
2567+15 (ii) The return on equity component shall be
2568+16 increased by 8 basis points for each percent by
2569+17 which the utility exceeded 100% of the applicable
2570+18 annual incremental goal.
2571+19 (iii) The return on equity component shall not
2572+20 be increased or decreased if the annual
2573+21 incremental savings as determined by the
2574+22 independent evaluator is greater than 84.4% of the
2575+23 applicable annual incremental goal and less than
2576+24 100% of the applicable annual incremental goal.
2577+25 (iv) The return on equity component shall not
2578+26 be increased or decreased by an amount greater
2579+
2580+
2581+
2582+
2583+
2584+ HB5539 Enrolled - 72 - LRB103 38494 CES 68630 b
2585+
2586+
2587+HB5539 Enrolled- 73 -LRB103 38494 CES 68630 b HB5539 Enrolled - 73 - LRB103 38494 CES 68630 b
2588+ HB5539 Enrolled - 73 - LRB103 38494 CES 68630 b
2589+1 than 200 basis points pursuant to this
2590+2 subparagraph (A).
2591+3 (B) For the period of January 1, 2026 through
2592+4 December 31, 2029 and in all subsequent 4-year
2593+5 periods, the applicable annual incremental goal shall
2594+6 be compared to the annual incremental savings as
2595+7 determined by the independent evaluator.
2596+8 (i) The return on equity component shall be
2597+9 reduced by 6 basis points for each percent by
2598+10 which the utility did not achieve 100% of the
2599+11 applicable annual incremental goal.
2600+12 (ii) The return on equity component shall be
2601+13 increased by 6 basis points for each percent by
2602+14 which the utility exceeded 100% of the applicable
2603+15 annual incremental goal.
2604+16 (iii) The return on equity component shall not
2605+17 be increased or decreased by an amount greater
2606+18 than 200 basis points pursuant to this
2607+19 subparagraph (B).
2608+20 (C) Notwithstanding provisions in subparagraphs
2609+21 (A) and (B) of paragraph (7) of this subsection, if the
2610+22 applicable annual incremental goal for an electric
2611+23 utility is ever less than 0.6% of deemed average
2612+24 weather normalized sales of electric power and energy
2613+25 during calendar years 2014, 2015 and 2016, an
2614+26 adjustment to the return on equity component of the
2615+
2616+
2617+
2618+
2619+
2620+ HB5539 Enrolled - 73 - LRB103 38494 CES 68630 b
2621+
2622+
2623+HB5539 Enrolled- 74 -LRB103 38494 CES 68630 b HB5539 Enrolled - 74 - LRB103 38494 CES 68630 b
2624+ HB5539 Enrolled - 74 - LRB103 38494 CES 68630 b
2625+1 utility's weighted average cost of capital calculated
2626+2 under subsection (d) of this Section shall be made as
2627+3 follows:
2628+4 (i) The return on equity component shall be
2629+5 reduced by 8 basis points for each percent by
2630+6 which the utility did not achieve 100% of the
2631+7 applicable annual total savings requirement.
2632+8 (ii) The return on equity component shall be
2633+9 increased by 8 basis points for each percent by
2634+10 which the utility exceeded 100% of the applicable
2635+11 annual total savings requirement.
2636+12 (iii) The return on equity component shall not
2637+13 be increased or decreased by an amount greater
2638+14 than 200 basis points pursuant to this
2639+15 subparagraph (C).
2640+16 (D) If the applicable annual incremental goal was
2641+17 reduced under paragraph (1), (2), (3), or (4) of
2642+18 subsection (f) of this Section, then the following
2643+19 adjustments shall be made to the calculations
2644+20 described in subparagraphs (A), (B), and (C) of this
2645+21 paragraph (8):
2646+22 (i) The calculation for determining
2647+23 achievement that is at least 125% or 134%, as
2648+24 applicable, of the applicable annual incremental
2649+25 goal or the applicable annual total savings
2650+26 requirement, as applicable, shall use the
2651+
2652+
2653+
2654+
2655+
2656+ HB5539 Enrolled - 74 - LRB103 38494 CES 68630 b
2657+
2658+
2659+HB5539 Enrolled- 75 -LRB103 38494 CES 68630 b HB5539 Enrolled - 75 - LRB103 38494 CES 68630 b
2660+ HB5539 Enrolled - 75 - LRB103 38494 CES 68630 b
2661+1 unreduced applicable annual incremental goal to
2662+2 set the value.
2663+3 (ii) For the period through December 31, 2025,
2664+4 the calculation for determining achievement that
2665+5 is less than 125% but more than 100% of the
2666+6 applicable annual incremental goal or the
2667+7 applicable annual total savings requirement, as
2668+8 applicable, shall use the reduced applicable
2669+9 annual incremental goal to set the value for 100%
2670+10 achievement of the goal and shall use the
2671+11 unreduced goal to set the value for 125%
2672+12 achievement. The 8 basis point value shall also be
2673+13 modified, as necessary, so that the 200 basis
2674+14 points are evenly apportioned among each
2675+15 percentage point value between 100% and 125%
2676+16 achievement.
2677+17 (iii) For the period of January 1, 2026
2678+18 through December 31, 2029 and all subsequent
2679+19 4-year periods, the calculation for determining
2680+20 achievement that is less than 125% or 134%, as
2681+21 applicable, but more than 100% of the applicable
2682+22 annual incremental goal or the applicable annual
2683+23 total savings requirement, as applicable, shall
2684+24 use the reduced applicable annual incremental goal
2685+25 to set the value for 100% achievement of the goal
2686+26 and shall use the unreduced goal to set the value
2687+
2688+
2689+
2690+
2691+
2692+ HB5539 Enrolled - 75 - LRB103 38494 CES 68630 b
2693+
2694+
2695+HB5539 Enrolled- 76 -LRB103 38494 CES 68630 b HB5539 Enrolled - 76 - LRB103 38494 CES 68630 b
2696+ HB5539 Enrolled - 76 - LRB103 38494 CES 68630 b
2697+1 for 125% achievement. The 6 basis-point value or 8
2698+2 basis-point value, as applicable, shall also be
2699+3 modified, as necessary, so that the 200 basis
2700+4 points are evenly apportioned among each
2701+5 percentage point value between 100% and 125% or
2702+6 between 100% and 134% achievement, as applicable.
2703+7 (9) The utility shall submit the energy savings data
2704+8 to the independent evaluator no later than 30 days after
2705+9 the close of the plan year. The independent evaluator
2706+10 shall determine the cumulative persisting annual savings
2707+11 for a given plan year, as well as an estimate of job
2708+12 impacts and other macroeconomic impacts of the efficiency
2709+13 programs for that year, no later than 120 days after the
2710+14 close of the plan year. The utility shall submit an
2711+15 informational filing to the Commission no later than 160
2712+16 days after the close of the plan year that attaches the
2713+17 independent evaluator's final report identifying the
2714+18 cumulative persisting annual savings for the year and
2715+19 calculates, under paragraph (7) or (8) of this subsection
2716+20 (g), as applicable, any resulting change to the utility's
2717+21 return on equity component of the weighted average cost of
2718+22 capital applicable to the next plan year beginning with
2719+23 the January monthly billing period and extending through
2720+24 the December monthly billing period. However, if the
2721+25 utility recovers the costs incurred under this Section
2722+26 under paragraphs (2) and (3) of subsection (d) of this
2723+
2724+
2725+
2726+
2727+
2728+ HB5539 Enrolled - 76 - LRB103 38494 CES 68630 b
2729+
2730+
2731+HB5539 Enrolled- 77 -LRB103 38494 CES 68630 b HB5539 Enrolled - 77 - LRB103 38494 CES 68630 b
2732+ HB5539 Enrolled - 77 - LRB103 38494 CES 68630 b
2733+1 Section, then the utility shall not be required to submit
2734+2 such informational filing, and shall instead submit the
2735+3 information that would otherwise be included in the
2736+4 informational filing as part of its filing under paragraph
2737+5 (3) of such subsection (d) that is due on or before June 1
2738+6 of each year.
2739+7 For those utilities that must submit the informational
2740+8 filing, the Commission may, on its own motion or by
2741+9 petition, initiate an investigation of such filing,
2742+10 provided, however, that the utility's proposed return on
2743+11 equity calculation shall be deemed the final, approved
2744+12 calculation on December 15 of the year in which it is filed
2745+13 unless the Commission enters an order on or before
2746+14 December 15, after notice and hearing, that modifies such
2747+15 calculation consistent with this Section.
2748+16 The adjustments to the return on equity component
2749+17 described in paragraphs (7) and (8) of this subsection (g)
2750+18 shall be applied as described in such paragraphs through a
2751+19 separate tariff mechanism, which shall be filed by the
2752+20 utility under subsections (f) and (g) of this Section.
2753+21 (9.5) The utility must demonstrate how it will ensure
2754+22 that program implementation contractors and energy
2755+23 efficiency installation vendors will promote workforce
2756+24 equity and quality jobs.
2757+25 (9.6) Utilities shall collect data necessary to ensure
2758+26 compliance with paragraph (9.5) no less than quarterly and
2759+
2760+
2761+
2762+
2763+
2764+ HB5539 Enrolled - 77 - LRB103 38494 CES 68630 b
2765+
2766+
2767+HB5539 Enrolled- 78 -LRB103 38494 CES 68630 b HB5539 Enrolled - 78 - LRB103 38494 CES 68630 b
2768+ HB5539 Enrolled - 78 - LRB103 38494 CES 68630 b
2769+1 shall communicate progress toward compliance with
2770+2 paragraph (9.5) to program implementation contractors and
2771+3 energy efficiency installation vendors no less than
2772+4 quarterly. Utilities shall work with relevant vendors,
2773+5 providing education, training, and other resources needed
2774+6 to ensure compliance and, where necessary, adjusting or
2775+7 terminating work with vendors that cannot assist with
2776+8 compliance.
2777+9 (10) Utilities required to implement efficiency
2778+10 programs under subsections (b-5) and (b-10) shall report
2779+11 annually to the Illinois Commerce Commission and the
2780+12 General Assembly on how hiring, contracting, job training,
2781+13 and other practices related to its energy efficiency
2782+14 programs enhance the diversity of vendors working on such
2783+15 programs. These reports must include data on vendor and
2784+16 employee diversity, including data on the implementation
2785+17 of paragraphs (9.5) and (9.6). If the utility is not
2786+18 meeting the requirements of paragraphs (9.5) and (9.6),
2787+19 the utility shall submit a plan to adjust their activities
2788+20 so that they meet the requirements of paragraphs (9.5) and
2789+21 (9.6) within the following year.
2790+22 (h) No more than 4% of energy efficiency and
2791+23 demand-response program revenue may be allocated for research,
2792+24 development, or pilot deployment of new equipment or measures.
2793+25 Electric utilities shall work with interested stakeholders to
2794+26 formulate a plan for how these funds should be spent,
2795+
2796+
2797+
2798+
2799+
2800+ HB5539 Enrolled - 78 - LRB103 38494 CES 68630 b
2801+
2802+
2803+HB5539 Enrolled- 79 -LRB103 38494 CES 68630 b HB5539 Enrolled - 79 - LRB103 38494 CES 68630 b
2804+ HB5539 Enrolled - 79 - LRB103 38494 CES 68630 b
2805+1 incorporate statewide approaches for these allocations, and
2806+2 file a 4-year plan that demonstrates that collaboration. If a
2807+3 utility files a request for modified annual energy savings
2808+4 goals with the Commission, then a utility shall forgo spending
2809+5 portfolio dollars on research and development proposals.
2810+6 (i) When practicable, electric utilities shall incorporate
2811+7 advanced metering infrastructure data into the planning,
2812+8 implementation, and evaluation of energy efficiency measures
2813+9 and programs, subject to the data privacy and confidentiality
2814+10 protections of applicable law.
2815+11 (j) The independent evaluator shall follow the guidelines
2816+12 and use the savings set forth in Commission-approved energy
2817+13 efficiency policy manuals and technical reference manuals, as
2818+14 each may be updated from time to time. Until such time as
2819+15 measure life values for energy efficiency measures implemented
2820+16 for low-income households under subsection (c) of this Section
2821+17 are incorporated into such Commission-approved manuals, the
2822+18 low-income measures shall have the same measure life values
2823+19 that are established for same measures implemented in
2824+20 households that are not low-income households.
2825+21 (k) Notwithstanding any provision of law to the contrary,
2826+22 an electric utility subject to the requirements of this
2827+23 Section may file a tariff cancelling an automatic adjustment
2828+24 clause tariff in effect under this Section or Section 8-103,
2829+25 which shall take effect no later than one business day after
2830+26 the date such tariff is filed. Thereafter, the utility shall
2831+
2832+
2833+
2834+
2835+
2836+ HB5539 Enrolled - 79 - LRB103 38494 CES 68630 b
2837+
2838+
2839+HB5539 Enrolled- 80 -LRB103 38494 CES 68630 b HB5539 Enrolled - 80 - LRB103 38494 CES 68630 b
2840+ HB5539 Enrolled - 80 - LRB103 38494 CES 68630 b
2841+1 be authorized to defer and recover its expenditures incurred
2842+2 under this Section through a new tariff authorized under
2843+3 subsection (d) of this Section or in the utility's next rate
2844+4 case under Article IX or Section 16-108.5 of this Act, with
2845+5 interest at an annual rate equal to the utility's weighted
2846+6 average cost of capital as approved by the Commission in such
2847+7 case. If the utility elects to file a new tariff under
2848+8 subsection (d) of this Section, the utility may file the
2849+9 tariff within 10 days after June 1, 2017 (the effective date of
2850+10 Public Act 99-906), and the cost inputs to such tariff shall be
2851+11 based on the projected costs to be incurred by the utility
2852+12 during the calendar year in which the new tariff is filed and
2853+13 that were not recovered under the tariff that was cancelled as
2854+14 provided for in this subsection. Such costs shall include
2855+15 those incurred or to be incurred by the utility under its
2856+16 multi-year plan approved under subsections (f) and (g) of this
2857+17 Section, including, but not limited to, projected capital
2858+18 investment costs and projected regulatory asset balances with
2859+19 correspondingly updated depreciation and amortization reserves
2860+20 and expense. The Commission shall, after notice and hearing,
2861+21 approve, or approve with modification, such tariff and cost
2862+22 inputs no later than 75 days after the utility filed the
2863+23 tariff, provided that such approval, or approval with
2864+24 modification, shall be consistent with the provisions of this
2865+25 Section to the extent they do not conflict with this
2866+26 subsection (k). The tariff approved by the Commission shall
2867+
2868+
2869+
2870+
2871+
2872+ HB5539 Enrolled - 80 - LRB103 38494 CES 68630 b
2873+
2874+
2875+HB5539 Enrolled- 81 -LRB103 38494 CES 68630 b HB5539 Enrolled - 81 - LRB103 38494 CES 68630 b
2876+ HB5539 Enrolled - 81 - LRB103 38494 CES 68630 b
2877+1 take effect no later than 5 days after the Commission enters
2878+2 its order approving the tariff.
2879+3 No later than 60 days after the effective date of the
2880+4 tariff cancelling the utility's automatic adjustment clause
2881+5 tariff, the utility shall file a reconciliation that
2882+6 reconciles the moneys collected under its automatic adjustment
2883+7 clause tariff with the costs incurred during the period
2884+8 beginning June 1, 2016 and ending on the date that the electric
2885+9 utility's automatic adjustment clause tariff was cancelled. In
2886+10 the event the reconciliation reflects an under-collection, the
2887+11 utility shall recover the costs as specified in this
2888+12 subsection (k). If the reconciliation reflects an
2889+13 over-collection, the utility shall apply the amount of such
2890+14 over-collection as a one-time credit to retail customers'
2891+15 bills.
2892+16 (l) For the calendar years covered by a multi-year plan
2893+17 commencing after December 31, 2017, subsections (a) through
2894+18 (j) of this Section do not apply to eligible large private
2895+19 energy customers that have chosen to opt out of multi-year
2896+20 plans consistent with this subsection (1).
2897+21 (1) For purposes of this subsection (l), "eligible
2898+22 large private energy customer" means any retail customers,
2899+23 except for federal, State, municipal, and other public
2900+24 customers, of an electric utility that serves more than
2901+25 3,000,000 retail customers, except for federal, State,
2902+26 municipal and other public customers, in the State and
2903+
2904+
2905+
2906+
2907+
2908+ HB5539 Enrolled - 81 - LRB103 38494 CES 68630 b
2909+
2910+
2911+HB5539 Enrolled- 82 -LRB103 38494 CES 68630 b HB5539 Enrolled - 82 - LRB103 38494 CES 68630 b
2912+ HB5539 Enrolled - 82 - LRB103 38494 CES 68630 b
2913+1 whose total highest 30 minute demand was more than 10,000
2914+2 kilowatts, or any retail customers of an electric utility
2915+3 that serves less than 3,000,000 retail customers but more
2916+4 than 500,000 retail customers in the State and whose total
2917+5 highest 15 minute demand was more than 10,000 kilowatts.
2918+6 For purposes of this subsection (l), "retail customer" has
2919+7 the meaning set forth in Section 16-102 of this Act.
2920+8 However, for a business entity with multiple sites located
2921+9 in the State, where at least one of those sites qualifies
2922+10 as an eligible large private energy customer, then any of
2923+11 that business entity's sites, properly identified on a
2924+12 form for notice, shall be considered eligible large
2925+13 private energy customers for the purposes of this
2926+14 subsection (l). A determination of whether this subsection
2927+15 is applicable to a customer shall be made for each
2928+16 multi-year plan beginning after December 31, 2017. The
2929+17 criteria for determining whether this subsection (l) is
2930+18 applicable to a retail customer shall be based on the 12
2931+19 consecutive billing periods prior to the start of the
2932+20 first year of each such multi-year plan.
2933+21 (2) Within 45 days after September 15, 2021 (the
2934+22 effective date of Public Act 102-662), the Commission
2935+23 shall prescribe the form for notice required for opting
2936+24 out of energy efficiency programs. The notice must be
2937+25 submitted to the retail electric utility 12 months before
2938+26 the next energy efficiency planning cycle. However, within
2939+
2940+
2941+
2942+
2943+
2944+ HB5539 Enrolled - 82 - LRB103 38494 CES 68630 b
2945+
2946+
2947+HB5539 Enrolled- 83 -LRB103 38494 CES 68630 b HB5539 Enrolled - 83 - LRB103 38494 CES 68630 b
2948+ HB5539 Enrolled - 83 - LRB103 38494 CES 68630 b
2949+1 120 days after the Commission's initial issuance of the
2950+2 form for notice, eligible large private energy customers
2951+3 may submit a form for notice to an electric utility. The
2952+4 form for notice for opting out of energy efficiency
2953+5 programs shall include all of the following:
2954+6 (A) a statement indicating that the customer has
2955+7 elected to opt out;
2956+8 (B) the account numbers for the customer accounts
2957+9 to which the opt out shall apply;
2958+10 (C) the mailing address associated with the
2959+11 customer accounts identified under subparagraph (B);
2960+12 (D) an American Society of Heating, Refrigerating,
2961+13 and Air-Conditioning Engineers (ASHRAE) level 2 or
2962+14 higher audit report conducted by an independent
2963+15 third-party expert identifying cost-effective energy
2964+16 efficiency project opportunities that could be
2965+17 invested in over the next 10 years. A retail customer
2966+18 with specialized processes may utilize a self-audit
2967+19 process in lieu of the ASHRAE audit;
2968+20 (E) a description of the customer's plans to
2969+21 reallocate the funds toward internal energy efficiency
2970+22 efforts identified in the subparagraph (D) report,
2971+23 including, but not limited to: (i) strategic energy
2972+24 management or other programs, including descriptions
2973+25 of targeted buildings, equipment and operations; (ii)
2974+26 eligible energy efficiency measures; and (iii)
2975+
2976+
2977+
2978+
2979+
2980+ HB5539 Enrolled - 83 - LRB103 38494 CES 68630 b
2981+
2982+
2983+HB5539 Enrolled- 84 -LRB103 38494 CES 68630 b HB5539 Enrolled - 84 - LRB103 38494 CES 68630 b
2984+ HB5539 Enrolled - 84 - LRB103 38494 CES 68630 b
2985+1 expected energy savings, itemized by technology. If
2986+2 the subparagraph (D) audit report identifies that the
2987+3 customer currently utilizes the best available energy
2988+4 efficient technology, equipment, programs, and
2989+5 operations, the customer may provide a statement that
2990+6 more efficient technology, equipment, programs, and
2991+7 operations are not reasonably available as a means of
2992+8 satisfying this subparagraph (E); and
2993+9 (F) the effective date of the opt out, which will
2994+10 be the next January 1 following notice of the opt out.
2995+11 (3) Upon receipt of a properly and timely noticed
2996+12 request for opt out submitted by an eligible large private
2997+13 energy customer, the retail electric utility shall grant
2998+14 the request, file the request with the Commission and,
2999+15 beginning January 1 of the following year, the opted out
3000+16 customer shall no longer be assessed the costs of the plan
3001+17 and shall be prohibited from participating in that 4-year
3002+18 plan cycle to give the retail utility the certainty to
3003+19 design program plan proposals.
3004+20 (4) Upon a customer's election to opt out under
3005+21 paragraphs (1) and (2) of this subsection (l) and
3006+22 commencing on the effective date of said opt out, the
3007+23 account properly identified in the customer's notice under
3008+24 paragraph (2) shall not be subject to any cost recovery
3009+25 and shall not be eligible to participate in, or directly
3010+26 benefit from, compliance with energy efficiency cumulative
3011+
3012+
3013+
3014+
3015+
3016+ HB5539 Enrolled - 84 - LRB103 38494 CES 68630 b
3017+
3018+
3019+HB5539 Enrolled- 85 -LRB103 38494 CES 68630 b HB5539 Enrolled - 85 - LRB103 38494 CES 68630 b
3020+ HB5539 Enrolled - 85 - LRB103 38494 CES 68630 b
3021+1 persisting savings requirements under subsections (a)
3022+2 through (j).
3023+3 (5) A utility's cumulative persisting annual savings
3024+4 targets will exclude any opted out load.
3025+5 (6) The request to opt out is only valid for the
3026+6 requested plan cycle. An eligible large private energy
3027+7 customer must also request to opt out for future energy
3028+8 plan cycles, otherwise the customer will be included in
3029+9 the future energy plan cycle.
3030+10 (m) Notwithstanding the requirements of this Section, as
3031+11 part of a proceeding to approve a multi-year plan under
3032+12 subsections (f) and (g) of this Section if the multi-year plan
3033+13 has been designed to maximize savings, but does not meet the
3034+14 cost cap limitations of this Section, the Commission shall
3035+15 reduce the amount of energy efficiency measures implemented
3036+16 for any single year, and whose costs are recovered under
3037+17 subsection (d) of this Section, by an amount necessary to
3038+18 limit the estimated average net increase due to the cost of the
3039+19 measures to no more than
3040+20 (1) 3.5% for each of the 4 years beginning January 1,
3041+21 2018,
3042+22 (2) (blank),
3043+23 (3) 4% for each of the 4 years beginning January 1,
3044+24 2022,
3045+25 (4) 4.25% for the 4 years beginning January 1, 2026,
3046+26 and
3047+
3048+
3049+
3050+
3051+
3052+ HB5539 Enrolled - 85 - LRB103 38494 CES 68630 b
3053+
3054+
3055+HB5539 Enrolled- 86 -LRB103 38494 CES 68630 b HB5539 Enrolled - 86 - LRB103 38494 CES 68630 b
3056+ HB5539 Enrolled - 86 - LRB103 38494 CES 68630 b
3057+1 (5) 4.25% plus an increase sufficient to account for
3058+2 the rate of inflation between January 1, 2026 and January
3059+3 1 of the first year of each subsequent 4-year plan cycle,
3060+4 of the average amount paid per kilowatthour by residential
3061+5 eligible retail customers during calendar year 2015. An
3062+6 electric utility may plan to spend up to 10% more in any year
3063+7 during an applicable multi-year plan period to
3064+8 cost-effectively achieve additional savings so long as the
3065+9 average over the applicable multi-year plan period does not
3066+10 exceed the percentages defined in items (1) through (5). To
3067+11 determine the total amount that may be spent by an electric
3068+12 utility in any single year, the applicable percentage of the
3069+13 average amount paid per kilowatthour shall be multiplied by
3070+14 the total amount of energy delivered by such electric utility
3071+15 in the calendar year 2015, adjusted to reflect the proportion
3072+16 of the utility's load attributable to customers that have
3073+17 opted out of subsections (a) through (j) of this Section under
3074+18 subsection (l) of this Section. For purposes of this
3075+19 subsection (m), the amount paid per kilowatthour includes,
3076+20 without limitation, estimated amounts paid for supply,
3077+21 transmission, distribution, surcharges, and add-on taxes. For
3078+22 purposes of this Section, "eligible retail customers" shall
3079+23 have the meaning set forth in Section 16-111.5 of this Act.
3080+24 Once the Commission has approved a plan under subsections (f)
3081+25 and (g) of this Section, no subsequent rate impact
3082+26 determinations shall be made.
3083+
3084+
3085+
3086+
3087+
3088+ HB5539 Enrolled - 86 - LRB103 38494 CES 68630 b
3089+
3090+
3091+HB5539 Enrolled- 87 -LRB103 38494 CES 68630 b HB5539 Enrolled - 87 - LRB103 38494 CES 68630 b
3092+ HB5539 Enrolled - 87 - LRB103 38494 CES 68630 b
3093+1 (n) A utility shall take advantage of the efficiencies
3094+2 available through existing Illinois Home Weatherization
3095+3 Assistance Program infrastructure and services, such as
3096+4 enrollment, marketing, quality assurance and implementation,
3097+5 which can reduce the need for similar services at a lower cost
3098+6 than utility-only programs, subject to capacity constraints at
3099+7 community action agencies, for both single-family and
3100+8 multifamily weatherization services, to the extent Illinois
3101+9 Home Weatherization Assistance Program community action
3102+10 agencies provide multifamily services. A utility's plan shall
3103+11 demonstrate that in formulating annual weatherization budgets,
3104+12 it has sought input and coordination with community action
3105+13 agencies regarding agencies' capacity to expand and maximize
3106+14 Illinois Home Weatherization Assistance Program delivery using
3107+15 the ratepayer dollars collected under this Section.
3108+16 (Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-30-23.)
3109+17 (220 ILCS 5/8-104)
3110+18 Sec. 8-104. Natural gas energy efficiency programs.
3111+19 (a) It is the policy of the State that natural gas
3112+20 utilities and the Department of Commerce and Economic
3113+21 Opportunity are required to use cost-effective energy
3114+22 efficiency to reduce direct and indirect costs to consumers.
3115+23 It serves the public interest to allow natural gas utilities
3116+24 to recover costs for reasonably and prudently incurred
3117+25 expenses for cost-effective energy efficiency measures.
3118+
3119+
3120+
3121+
3122+
3123+ HB5539 Enrolled - 87 - LRB103 38494 CES 68630 b
3124+
3125+
3126+HB5539 Enrolled- 88 -LRB103 38494 CES 68630 b HB5539 Enrolled - 88 - LRB103 38494 CES 68630 b
3127+ HB5539 Enrolled - 88 - LRB103 38494 CES 68630 b
3128+1 (b) For purposes of this Section, "energy efficiency"
3129+2 means measures that reduce the amount of energy required to
3130+3 achieve a given end use. "Energy efficiency" also includes
3131+4 measures that reduce the total Btus of electricity and natural
3132+5 gas needed to meet the end use or uses. "Cost-effective" means
3133+6 that the measures satisfy the total resource cost test which,
3134+7 for purposes of this Section, means a standard that is met if,
3135+8 for an investment in energy efficiency, the benefit-cost ratio
3136+9 is greater than one. The benefit-cost ratio is the ratio of the
3137+10 net present value of the total benefits of the measures to the
3138+11 net present value of the total costs as calculated over the
3139+12 lifetime of the measures. The total resource cost test
3140+13 compares the sum of avoided natural gas utility costs,
3141+14 representing the benefits that accrue to the system and the
3142+15 participant in the delivery of those efficiency measures, as
3143+16 well as other quantifiable societal benefits, including
3144+17 avoided electric utility costs, to the sum of all incremental
3145+18 costs of end use measures (including both utility and
3146+19 participant contributions), plus costs to administer, deliver,
3147+20 and evaluate each demand-side measure, to quantify the net
3148+21 savings obtained by substituting demand-side measures for
3149+22 supply resources. In calculating avoided costs, reasonable
3150+23 estimates shall be included for financial costs likely to be
3151+24 imposed by future regulation of emissions of greenhouse gases.
3152+25 The low-income programs described in item (4) of subsection
3153+26 (f) of this Section shall not be required to meet the total
3154+
3155+
3156+
3157+
3158+
3159+ HB5539 Enrolled - 88 - LRB103 38494 CES 68630 b
3160+
3161+
3162+HB5539 Enrolled- 89 -LRB103 38494 CES 68630 b HB5539 Enrolled - 89 - LRB103 38494 CES 68630 b
3163+ HB5539 Enrolled - 89 - LRB103 38494 CES 68630 b
3164+1 resource cost test.
3165+2 (c) Natural gas utilities shall implement cost-effective
3166+3 energy efficiency measures to meet at least the following
3167+4 natural gas savings requirements, which shall be based upon
3168+5 the total amount of gas delivered to retail customers, other
3169+6 than the customers described in subsection (m) of this
3170+7 Section, during calendar year 2009 multiplied by the
3171+8 applicable percentage. Natural gas utilities may comply with
3172+9 this Section by meeting the annual incremental savings goal in
3173+10 the applicable year or by showing that total cumulative annual
3174+11 savings within a multi-year planning period associated with
3175+12 measures implemented after May 31, 2011 were equal to the sum
3176+13 of each annual incremental savings requirement from the first
3177+14 day of the multi-year planning period through the last day of
3178+15 the multi-year planning period:
3179+16 (1) 0.2% by May 31, 2012;
3180+17 (2) an additional 0.4% by May 31, 2013, increasing
3181+18 total savings to .6%;
3182+19 (3) an additional 0.6% by May 31, 2014, increasing
3183+20 total savings to 1.2%;
3184+21 (4) an additional 0.8% by May 31, 2015, increasing
3185+22 total savings to 2.0%;
3186+23 (5) an additional 1% by May 31, 2016, increasing total
3187+24 savings to 3.0%;
3188+25 (6) an additional 1.2% by May 31, 2017, increasing
3189+26 total savings to 4.2%;
3190+
3191+
3192+
3193+
3194+
3195+ HB5539 Enrolled - 89 - LRB103 38494 CES 68630 b
3196+
3197+
3198+HB5539 Enrolled- 90 -LRB103 38494 CES 68630 b HB5539 Enrolled - 90 - LRB103 38494 CES 68630 b
3199+ HB5539 Enrolled - 90 - LRB103 38494 CES 68630 b
3200+1 (7) an additional 1.4% in the year commencing January
3201+2 1, 2018;
3202+3 (8) an additional 1.5% in the year commencing January
3203+4 1, 2019; and
3204+5 (9) an additional 1.5% in each 12-month period
3205+6 thereafter.
3206+7 (d) Notwithstanding the requirements of subsection (c) of
3207+8 this Section, a natural gas utility shall limit the amount of
3208+9 energy efficiency implemented in any multi-year reporting
3209+10 period established by subsection (f) of Section 8-104 of this
3210+11 Act, by an amount necessary to limit the estimated average
3211+12 increase in the amounts paid by retail customers in connection
3212+13 with natural gas service to no more than 2% in the applicable
3213+14 multi-year reporting period. The energy savings requirements
3214+15 in subsection (c) of this Section may be reduced by the
3215+16 Commission for the subject plan, if the utility demonstrates
3216+17 by substantial evidence that it is highly unlikely that the
3217+18 requirements could be achieved without exceeding the
3218+19 applicable spending limits in any multi-year reporting period.
3219+20 No later than September 1, 2013, the Commission shall review
3220+21 the limitation on the amount of energy efficiency measures
3221+22 implemented pursuant to this Section and report to the General
3222+23 Assembly, in the report required by subsection (k) of this
3223+24 Section, its findings as to whether that limitation unduly
3224+25 constrains the procurement of energy efficiency measures.
3225+26 (e) The provisions of this subsection (e) apply to those
3226+
3227+
3228+
3229+
3230+
3231+ HB5539 Enrolled - 90 - LRB103 38494 CES 68630 b
3232+
3233+
3234+HB5539 Enrolled- 91 -LRB103 38494 CES 68630 b HB5539 Enrolled - 91 - LRB103 38494 CES 68630 b
3235+ HB5539 Enrolled - 91 - LRB103 38494 CES 68630 b
3236+1 multi-year plans that commence prior to January 1, 2018. The
3237+2 utility shall utilize 75% of the available funding associated
3238+3 with energy efficiency programs approved by the Commission,
3239+4 and may outsource various aspects of program development and
3240+5 implementation. The remaining 25% of available funding shall
3241+6 be used by the Department of Commerce and Economic Opportunity
3242+7 to implement energy efficiency measures that achieve no less
3243+8 than 20% of the requirements of subsection (c) of this
3244+9 Section. Such measures shall be designed in conjunction with
3245+10 the utility and approved by the Commission. The Department may
3246+11 outsource development and implementation of energy efficiency
3247+12 measures. A minimum of 10% of the entire portfolio of
3248+13 cost-effective energy efficiency measures shall be procured
3249+14 from local government, municipal corporations, school
3250+15 districts, public institutions of higher education, and
3251+16 community college districts. Five percent of the entire
3252+17 portfolio of cost-effective energy efficiency measures may be
3253+18 granted to local government and municipal corporations for
3254+19 market transformation initiatives. The Department shall
3255+20 coordinate the implementation of these measures and shall
3256+21 integrate delivery of natural gas efficiency programs with
3257+22 electric efficiency programs delivered pursuant to Section
3258+23 8-103 of this Act, unless the Department can show that
3259+24 integration is not feasible.
3260+25 The apportionment of the dollars to cover the costs to
3261+26 implement the Department's share of the portfolio of energy
3262+
3263+
3264+
3265+
3266+
3267+ HB5539 Enrolled - 91 - LRB103 38494 CES 68630 b
3268+
3269+
3270+HB5539 Enrolled- 92 -LRB103 38494 CES 68630 b HB5539 Enrolled - 92 - LRB103 38494 CES 68630 b
3271+ HB5539 Enrolled - 92 - LRB103 38494 CES 68630 b
3272+1 efficiency measures shall be made to the Department once the
3273+2 Department has executed rebate agreements, grants, or
3274+3 contracts for energy efficiency measures and provided
3275+4 supporting documentation for those rebate agreements, grants,
3276+5 and contracts to the utility. The Department is authorized to
3277+6 adopt any rules necessary and prescribe procedures in order to
3278+7 ensure compliance by applicants in carrying out the purposes
3279+8 of rebate agreements for energy efficiency measures
3280+9 implemented by the Department made under this Section.
3281+10 The details of the measures implemented by the Department
3282+11 shall be submitted by the Department to the Commission in
3283+12 connection with the utility's filing regarding the energy
3284+13 efficiency measures that the utility implements.
3285+14 The portfolio of measures, administered by both the
3286+15 utilities and the Department, shall, in combination, be
3287+16 designed to achieve the annual energy savings requirements set
3288+17 forth in subsection (c) of this Section, as modified by
3289+18 subsection (d) of this Section.
3290+19 The utility and the Department shall agree upon a
3291+20 reasonable portfolio of measures and determine the measurable
3292+21 corresponding percentage of the savings goals associated with
3293+22 measures implemented by the Department.
3294+23 No utility shall be assessed a penalty under subsection
3295+24 (f) of this Section for failure to make a timely filing if that
3296+25 failure is the result of a lack of agreement with the
3297+26 Department with respect to the allocation of responsibilities
3298+
3299+
3300+
3301+
3302+
3303+ HB5539 Enrolled - 92 - LRB103 38494 CES 68630 b
3304+
3305+
3306+HB5539 Enrolled- 93 -LRB103 38494 CES 68630 b HB5539 Enrolled - 93 - LRB103 38494 CES 68630 b
3307+ HB5539 Enrolled - 93 - LRB103 38494 CES 68630 b
3308+1 or related costs or target assignments. In that case, the
3309+2 Department and the utility shall file their respective plans
3310+3 with the Commission and the Commission shall determine an
3311+4 appropriate division of measures and programs that meets the
3312+5 requirements of this Section.
3313+6 (e-5) The provisions of this subsection (e-5) shall be
3314+7 applicable to those multi-year plans that commence after
3315+8 December 31, 2017. Natural gas utilities shall be responsible
3316+9 for overseeing the design, development, and filing of their
3317+10 efficiency plans with the Commission and may outsource
3318+11 development and implementation of energy efficiency measures.
3319+12 A minimum of 10% of the entire portfolio of cost-effective
3320+13 energy efficiency measures shall be procured from local
3321+14 government, municipal corporations, school districts, public
3322+15 institutions of higher education, and community college
3323+16 districts. Five percent of the entire portfolio of
3324+17 cost-effective energy efficiency measures may be granted to
3325+18 local government and municipal corporations for market
3326+19 transformation initiatives.
3327+20 The utilities shall also present a portfolio of energy
3328+21 efficiency measures proportionate to the share of total annual
3329+22 utility revenues in Illinois from households at or below 150%
3330+23 of the poverty level. Such programs shall be targeted to
3331+24 households with incomes at or below 80% of area median income.
3332+25 (e-10) A utility providing approved energy efficiency
3333+26 measures in this State shall be permitted to recover costs of
3334+
3335+
3336+
3337+
3338+
3339+ HB5539 Enrolled - 93 - LRB103 38494 CES 68630 b
3340+
3341+
3342+HB5539 Enrolled- 94 -LRB103 38494 CES 68630 b HB5539 Enrolled - 94 - LRB103 38494 CES 68630 b
3343+ HB5539 Enrolled - 94 - LRB103 38494 CES 68630 b
3344+1 those measures through an automatic adjustment clause tariff
3345+2 filed with and approved by the Commission. The tariff shall be
3346+3 established outside the context of a general rate case and
3347+4 shall be applicable to the utility's customers other than the
3348+5 customers described in subsection (m) of this Section. Each
3349+6 year the Commission shall initiate a review to reconcile any
3350+7 amounts collected with the actual costs and to determine the
3351+8 required adjustment to the annual tariff factor to match
3352+9 annual expenditures.
3353+10 (e-15) For those multi-year plans that commence prior to
3354+11 January 1, 2018, each utility shall include, in its recovery
3355+12 of costs, the costs estimated for both the utility's and the
3356+13 Department's implementation of energy efficiency measures.
3357+14 Costs collected by the utility for measures implemented by the
3358+15 Department shall be submitted to the Department pursuant to
3359+16 Section 605-323 of the Civil Administrative Code of Illinois,
3360+17 shall be deposited into the Energy Efficiency Portfolio
3361+18 Standards Fund, and shall be used by the Department solely for
3362+19 the purpose of implementing these measures. A utility shall
3363+20 not be required to advance any moneys to the Department but
3364+21 only to forward such funds as it has collected. The Department
3365+22 shall report to the Commission on an annual basis regarding
3366+23 the costs actually incurred by the Department in the
3367+24 implementation of the measures. Any changes to the costs of
3368+25 energy efficiency measures as a result of plan modifications
3369+26 shall be appropriately reflected in amounts recovered by the
3370+
3371+
3372+
3373+
3374+
3375+ HB5539 Enrolled - 94 - LRB103 38494 CES 68630 b
3376+
3377+
3378+HB5539 Enrolled- 95 -LRB103 38494 CES 68630 b HB5539 Enrolled - 95 - LRB103 38494 CES 68630 b
3379+ HB5539 Enrolled - 95 - LRB103 38494 CES 68630 b
3380+1 utility and turned over to the Department.
3381+2 (f) No later than October 1, 2010, each gas utility shall
3382+3 file an energy efficiency plan with the Commission to meet the
3383+4 energy efficiency standards through May 31, 2014. No later
3384+5 than October 1, 2013, each gas utility shall file an energy
3385+6 efficiency plan with the Commission to meet the energy
3386+7 efficiency standards through May 31, 2017. Beginning in 2017
3387+8 and every 4 years thereafter, each utility shall file an
3388+9 energy efficiency plan with the Commission to meet the energy
3389+10 efficiency standards for the next applicable 4-year period
3390+11 beginning January 1 of the year following the filing. For
3391+12 those multi-year plans commencing on January 1, 2018, each
3392+13 utility shall file its proposed energy efficiency plan no
3393+14 later than 30 days after the effective date of this amendatory
3394+15 Act of the 99th General Assembly or May 1, 2017, whichever is
3395+16 later. Beginning in 2021 and every 4 years thereafter, each
3396+17 utility shall file its energy efficiency plan no later than
3397+18 March 1. If a utility does not file such a plan on or before
3398+19 the applicable filing deadline for the plan, then it shall
3399+20 face a penalty of $100,000 per day until the plan is filed.
3400+21 Each utility's plan shall set forth the utility's
3401+22 proposals to meet the utility's portion of the energy
3402+23 efficiency standards identified in subsection (c) of this
3403+24 Section, as modified by subsection (d) of this Section, taking
3404+25 into account the unique circumstances of the utility's service
3405+26 territory. For those plans commencing after December 31, 2021,
3406+
3407+
3408+
3409+
3410+
3411+ HB5539 Enrolled - 95 - LRB103 38494 CES 68630 b
3412+
3413+
3414+HB5539 Enrolled- 96 -LRB103 38494 CES 68630 b HB5539 Enrolled - 96 - LRB103 38494 CES 68630 b
3415+ HB5539 Enrolled - 96 - LRB103 38494 CES 68630 b
3416+1 the Commission shall seek public comment on the utility's plan
3417+2 and shall issue an order approving or disapproving each plan
3418+3 within 6 months after its submission. For those plans
3419+4 commencing on January 1, 2018, the Commission shall seek
3420+5 public comment on the utility's plan and shall issue an order
3421+6 approving or disapproving each plan no later than August 31,
3422+7 2017, or 105 days after the effective date of this amendatory
3423+8 Act of the 99th General Assembly, whichever is later. If the
3424+9 Commission disapproves a plan, the Commission shall, within 30
3425+10 days, describe in detail the reasons for the disapproval and
3426+11 describe a path by which the utility may file a revised draft
3427+12 of the plan to address the Commission's concerns
3428+13 satisfactorily. If the utility does not refile with the
3429+14 Commission within 60 days after the disapproval, the utility
3430+15 shall be subject to penalties at a rate of $100,000 per day
3431+16 until the plan is filed. This process shall continue, and
3432+17 penalties shall accrue, until the utility has successfully
3433+18 filed a portfolio of energy efficiency measures. Penalties
3434+19 shall be deposited into the Energy Efficiency Trust Fund and
3435+20 the cost of any such penalties may not be recovered from
3436+21 ratepayers. In submitting proposed energy efficiency plans and
3437+22 funding levels to meet the savings goals adopted by this Act
3438+23 the utility shall:
3439+24 (1) Demonstrate that its proposed energy efficiency
3440+25 measures will achieve the requirements that are identified
3441+26 in subsection (c) of this Section, as modified by
3442+
3443+
3444+
3445+
3446+
3447+ HB5539 Enrolled - 96 - LRB103 38494 CES 68630 b
3448+
3449+
3450+HB5539 Enrolled- 97 -LRB103 38494 CES 68630 b HB5539 Enrolled - 97 - LRB103 38494 CES 68630 b
3451+ HB5539 Enrolled - 97 - LRB103 38494 CES 68630 b
3452+1 subsection (d) of this Section.
3453+2 (2) Present specific proposals to implement new
3454+3 building and appliance standards that have been placed
3455+4 into effect.
3456+5 (3) Present estimates of the total amount paid for gas
3457+6 service expressed on a per therm basis associated with the
3458+7 proposed portfolio of measures designed to meet the
3459+8 requirements that are identified in subsection (c) of this
3460+9 Section, as modified by subsection (d) of this Section.
3461+10 (4) For those multi-year plans that commence prior to
3462+11 January 1, 2018, coordinate with the Department to present
3463+12 a portfolio of energy efficiency measures proportionate to
3464+13 the share of total annual utility revenues in Illinois
3465+14 from households at or below 150% of the poverty level.
3466+15 Such programs shall be targeted to households with incomes
3467+16 at or below 80% of area median income.
3468+17 (5) Demonstrate that its overall portfolio of energy
3469+18 efficiency measures, not including low-income programs
3470+19 described in item (4) of this subsection (f) and
3471+20 subsection (e-5) of this Section, are cost-effective using
3472+21 the total resource cost test and represent a diverse cross
3473+22 section of opportunities for customers of all rate classes
3474+23 to participate in the programs.
3475+24 (6) Demonstrate that a gas utility affiliated with an
3476+25 electric utility that is required to comply with Section
3477+26 8-103 or 8-103B of this Act has integrated gas and
3478+
3479+
3480+
3481+
3482+
3483+ HB5539 Enrolled - 97 - LRB103 38494 CES 68630 b
3484+
3485+
3486+HB5539 Enrolled- 98 -LRB103 38494 CES 68630 b HB5539 Enrolled - 98 - LRB103 38494 CES 68630 b
3487+ HB5539 Enrolled - 98 - LRB103 38494 CES 68630 b
3488+1 electric efficiency measures into a single program that
3489+2 reduces program or participant costs and appropriately
3490+3 allocates costs to gas and electric ratepayers. For those
3491+4 multi-year plans that commence prior to January 1, 2018,
3492+5 the Department shall integrate all gas and electric
3493+6 programs it delivers in any such utilities' service
3494+7 territories, unless the Department can show that
3495+8 integration is not feasible or appropriate.
3496+9 (7) Include a proposed cost recovery tariff mechanism
3497+10 to fund the proposed energy efficiency measures and to
3498+11 ensure the recovery of the prudently and reasonably
3499+12 incurred costs of Commission-approved programs.
3500+13 (8) Provide for quarterly status reports tracking
3501+14 implementation of and expenditures for the utility's
3502+15 portfolio of measures and, if applicable, the Department's
3503+16 portfolio of measures, an annual independent review, and a
3504+17 full independent evaluation of the multi-year results of
3505+18 the performance and the cost-effectiveness of the
3506+19 utility's and, if applicable, Department's portfolios of
3507+20 measures and broader net program impacts and, to the
3508+21 extent practical, for adjustment of the measures on a
3509+22 going forward basis as a result of the evaluations. The
3510+23 resources dedicated to evaluation shall not exceed 3% of
3511+24 portfolio resources in any given multi-year period.
3512+25 (g) No more than 3% of expenditures on energy efficiency
3513+26 measures may be allocated for demonstration of breakthrough
3514+
3515+
3516+
3517+
3518+
3519+ HB5539 Enrolled - 98 - LRB103 38494 CES 68630 b
3520+
3521+
3522+HB5539 Enrolled- 99 -LRB103 38494 CES 68630 b HB5539 Enrolled - 99 - LRB103 38494 CES 68630 b
3523+ HB5539 Enrolled - 99 - LRB103 38494 CES 68630 b
3524+1 equipment and devices.
3525+2 (h) Illinois natural gas utilities that are affiliated by
3526+3 virtue of a common parent company may, at the utilities'
3527+4 request, be considered a single natural gas utility for
3528+5 purposes of complying with this Section.
3529+6 (i) If, after 3 years, a gas utility fails to meet the
3530+7 efficiency standard specified in subsection (c) of this
3531+8 Section as modified by subsection (d), then it shall make a
3532+9 contribution to the Low-Income Home Energy Assistance Program.
3533+10 The total liability for failure to meet the goal shall be
3534+11 assessed as follows:
3535+12 (1) a large gas utility shall pay $600,000;
3536+13 (2) a medium gas utility shall pay $400,000; and
3537+14 (3) a small gas utility shall pay $200,000.
3538+15 For purposes of this Section, (i) a "large gas utility" is
3539+16 a gas utility that on December 31, 2008, served more than
3540+17 1,500,000 gas customers in Illinois; (ii) a "medium gas
3541+18 utility" is a gas utility that on December 31, 2008, served
3542+19 fewer than 1,500,000, but more than 500,000 gas customers in
3543+20 Illinois; and (iii) a "small gas utility" is a gas utility that
3544+21 on December 31, 2008, served fewer than 500,000 and more than
3545+22 100,000 gas customers in Illinois. The costs of this
3546+23 contribution may not be recovered from ratepayers.
3547+24 If a gas utility fails to meet the efficiency standard
3548+25 specified in subsection (c) of this Section, as modified by
3549+26 subsection (d) of this Section, in any 2 consecutive
3550+
3551+
3552+
3553+
3554+
3555+ HB5539 Enrolled - 99 - LRB103 38494 CES 68630 b
3556+
3557+
3558+HB5539 Enrolled- 100 -LRB103 38494 CES 68630 b HB5539 Enrolled - 100 - LRB103 38494 CES 68630 b
3559+ HB5539 Enrolled - 100 - LRB103 38494 CES 68630 b
3560+1 multi-year planning periods, then the responsibility for
3561+2 implementing the utility's energy efficiency measures shall be
3562+3 transferred to an independent program administrator selected
3563+4 by the Commission. Reasonable and prudent costs incurred by
3564+5 the independent program administrator to meet the efficiency
3565+6 standard specified in subsection (c) of this Section, as
3566+7 modified by subsection (d) of this Section, may be recovered
3567+8 from the customers of the affected gas utilities, other than
3568+9 customers described in subsection (m) of this Section. The
3569+10 utility shall provide the independent program administrator
3570+11 with all information and assistance necessary to perform the
3571+12 program administrator's duties including but not limited to
3572+13 customer, account, and energy usage data, and shall allow the
3573+14 program administrator to include inserts in customer bills.
3574+15 The utility may recover reasonable costs associated with any
3575+16 such assistance.
3576+17 (j) No utility shall be deemed to have failed to meet the
3577+18 energy efficiency standards to the extent any such failure is
3578+19 due to a failure of the Department.
3579+20 (k) Not later than January 1, 2012, the Commission shall
3580+21 develop and solicit public comment on a plan to foster
3581+22 statewide coordination and consistency between statutorily
3582+23 mandated natural gas and electric energy efficiency programs
3583+24 to reduce program or participant costs or to improve program
3584+25 performance. Not later than September 1, 2013, the Commission
3585+26 shall issue a report to the General Assembly containing its
3586+
3587+
3588+
3589+
3590+
3591+ HB5539 Enrolled - 100 - LRB103 38494 CES 68630 b
3592+
3593+
3594+HB5539 Enrolled- 101 -LRB103 38494 CES 68630 b HB5539 Enrolled - 101 - LRB103 38494 CES 68630 b
3595+ HB5539 Enrolled - 101 - LRB103 38494 CES 68630 b
3596+1 findings and recommendations.
3597+2 (l) This Section does not apply to a gas utility that on
3598+3 January 1, 2009, provided gas service to fewer than 100,000
3599+4 customers in Illinois.
3600+5 (m) Subsections (a) through (k) of this Section do not
3601+6 apply to customers of a natural gas utility that have a North
3602+7 American Industry Classification System code number that is
3603+8 22111 or any such code number beginning with the digits 31, 32,
3604+9 or 33 and (i) annual usage in the aggregate of 4 million therms
3605+10 or more within the service territory of the affected gas
3606+11 utility or with aggregate usage of 8 million therms or more in
3607+12 this State and complying with the provisions of item (l) of
3608+13 this subsection (m); or (ii) using natural gas as feedstock
3609+14 and meeting the usage requirements described in item (i) of
3610+15 this subsection (m), to the extent such annual feedstock usage
3611+16 is greater than 60% of the customer's total annual usage of
3612+17 natural gas.
3613+18 (1) Customers described in this subsection (m) of this
3614+19 Section shall apply, on a form approved on or before
3615+20 October 1, 2009 by the Department, to the Department to be
3616+21 designated as a self-directing customer ("SDC") or as an
3617+22 exempt customer using natural gas as a feedstock from
3618+23 which other products are made, including, but not limited
3619+24 to, feedstock for a hydrogen plant, on or before the 1st
3620+25 day of February, 2010. Thereafter, application may be made
3621+26 not less than 6 months before the filing date of the gas
3622+
3623+
3624+
3625+
3626+
3627+ HB5539 Enrolled - 101 - LRB103 38494 CES 68630 b
3628+
3629+
3630+HB5539 Enrolled- 102 -LRB103 38494 CES 68630 b HB5539 Enrolled - 102 - LRB103 38494 CES 68630 b
3631+ HB5539 Enrolled - 102 - LRB103 38494 CES 68630 b
3632+1 utility energy efficiency plan described in subsection (f)
3633+2 of this Section; however, a new customer that commences
3634+3 taking service from a natural gas utility after February
3635+4 1, 2010 may apply to become a SDC or exempt customer up to
3636+5 30 days after beginning service. Customers described in
3637+6 this subsection (m) that have not already been approved by
3638+7 the Department may apply to be designated a self-directing
3639+8 customer or exempt customer, on a form approved by the
3640+9 Department, between September 1, 2013 and September 30,
3641+10 2013. Customer applications that are approved by the
3642+11 Department under this amendatory Act of the 98th General
3643+12 Assembly shall be considered to be a self-directing
3644+13 customer or exempt customer, as applicable, for the
3645+14 current 3-year planning period effective December 1, 2013.
3646+15 Such application shall contain the following:
3647+16 (A) the customer's certification that, at the time
3648+17 of its application, it qualifies to be a SDC or exempt
3649+18 customer described in this subsection (m) of this
3650+19 Section;
3651+20 (B) in the case of a SDC, the customer's
3652+21 certification that it has established or will
3653+22 establish by the beginning of the utility's multi-year
3654+23 planning period commencing subsequent to the
3655+24 application, and will maintain for accounting
3656+25 purposes, an energy efficiency reserve account and
3657+26 that the customer will accrue funds in said account to
3658+
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3663+ HB5539 Enrolled - 102 - LRB103 38494 CES 68630 b
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3666+HB5539 Enrolled- 103 -LRB103 38494 CES 68630 b HB5539 Enrolled - 103 - LRB103 38494 CES 68630 b
3667+ HB5539 Enrolled - 103 - LRB103 38494 CES 68630 b
3668+1 be held for the purpose of funding, in whole or in
3669+2 part, energy efficiency measures of the customer's
3670+3 choosing, which may include, but are not limited to,
3671+4 projects involving combined heat and power systems
3672+5 that use the same energy source both for the
3673+6 generation of electrical or mechanical power and the
3674+7 production of steam or another form of useful thermal
3675+8 energy or the use of combustible gas produced from
3676+9 biomass, or both;
3677+10 (C) in the case of a SDC, the customer's
3678+11 certification that annual funding levels for the
3679+12 energy efficiency reserve account will be equal to 2%
3680+13 of the customer's cost of natural gas, composed of the
3681+14 customer's commodity cost and the delivery service
3682+15 charges paid to the gas utility, or $150,000,
3683+16 whichever is less;
3684+17 (D) in the case of a SDC, the customer's
3685+18 certification that the required reserve account
3686+19 balance will be capped at 3 years' worth of accruals
3687+20 and that the customer may, at its option, make further
3688+21 deposits to the account to the extent such deposit
3689+22 would increase the reserve account balance above the
3690+23 designated cap level;
3691+24 (E) in the case of a SDC, the customer's
3692+25 certification that by October 1 of each year,
3693+26 beginning no sooner than October 1, 2012, the customer
3694+
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3696+
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3699+ HB5539 Enrolled - 103 - LRB103 38494 CES 68630 b
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3702+HB5539 Enrolled- 104 -LRB103 38494 CES 68630 b HB5539 Enrolled - 104 - LRB103 38494 CES 68630 b
3703+ HB5539 Enrolled - 104 - LRB103 38494 CES 68630 b
3704+1 will report to the Department information, for the
3705+2 12-month period ending May 31 of the same year, on all
3706+3 deposits and reductions, if any, to the reserve
3707+4 account during the reporting year, and to the extent
3708+5 deposits to the reserve account in any year are in an
3709+6 amount less than $150,000, the basis for such reduced
3710+7 deposits; reserve account balances by month; a
3711+8 description of energy efficiency measures undertaken
3712+9 by the customer and paid for in whole or in part with
3713+10 funds from the reserve account; an estimate of the
3714+11 energy saved, or to be saved, by the measure; and that
3715+12 the report shall include a verification by an officer
3716+13 or plant manager of the customer or by a registered
3717+14 professional engineer or certified energy efficiency
3718+15 trade professional that the funds withdrawn from the
3719+16 reserve account were used for the energy efficiency
3720+17 measures;
3721+18 (F) in the case of an exempt customer, the
3722+19 customer's certification of the level of gas usage as
3723+20 feedstock in the customer's operation in a typical
3724+21 year and that it will provide information establishing
3725+22 this level, upon request of the Department;
3726+23 (G) in the case of either an exempt customer or a
3727+24 SDC, the customer's certification that it has provided
3728+25 the gas utility or utilities serving the customer with
3729+26 a copy of the application as filed with the
3730+
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3735+ HB5539 Enrolled - 104 - LRB103 38494 CES 68630 b
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3739+ HB5539 Enrolled - 105 - LRB103 38494 CES 68630 b
3740+1 Department;
3741+2 (H) in the case of either an exempt customer or a
3742+3 SDC, certification of the natural gas utility or
3743+4 utilities serving the customer in Illinois including
3744+5 the natural gas utility accounts that are the subject
3745+6 of the application; and
3746+7 (I) in the case of either an exempt customer or a
3747+8 SDC, a verification signed by a plant manager or an
3748+9 authorized corporate officer attesting to the
3749+10 truthfulness and accuracy of the information contained
3750+11 in the application.
3751+12 (2) The Department shall review the application to
3752+13 determine that it contains the information described in
3753+14 provisions (A) through (I) of item (1) of this subsection
3754+15 (m), as applicable. The review shall be completed within
3755+16 30 days after the date the application is filed with the
3756+17 Department. Absent a determination by the Department
3757+18 within the 30-day period, the applicant shall be
3758+19 considered to be a SDC or exempt customer, as applicable,
3759+20 for all subsequent multi-year planning periods, as of the
3760+21 date of filing the application described in this
3761+22 subsection (m). If the Department determines that the
3762+23 application does not contain the applicable information
3763+24 described in provisions (A) through (I) of item (1) of
3764+25 this subsection (m), it shall notify the customer, in
3765+26 writing, of its determination that the application does
3766+
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3771+ HB5539 Enrolled - 105 - LRB103 38494 CES 68630 b
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3774+HB5539 Enrolled- 106 -LRB103 38494 CES 68630 b HB5539 Enrolled - 106 - LRB103 38494 CES 68630 b
3775+ HB5539 Enrolled - 106 - LRB103 38494 CES 68630 b
3776+1 not contain the required information and identify the
3777+2 information that is missing, and the customer shall
3778+3 provide the missing information within 15 working days
3779+4 after the date of receipt of the Department's
3780+5 notification.
3781+6 (3) The Department shall have the right to audit the
3782+7 information provided in the customer's application and
3783+8 annual reports to ensure continued compliance with the
3784+9 requirements of this subsection. Based on the audit, if
3785+10 the Department determines the customer is no longer in
3786+11 compliance with the requirements of items (A) through (I)
3787+12 of item (1) of this subsection (m), as applicable, the
3788+13 Department shall notify the customer in writing of the
3789+14 noncompliance. The customer shall have 30 days to
3790+15 establish its compliance, and failing to do so, may have
3791+16 its status as a SDC or exempt customer revoked by the
3792+17 Department. The Department shall treat all information
3793+18 provided by any customer seeking SDC status or exemption
3794+19 from the provisions of this Section as strictly
3795+20 confidential.
3796+21 (4) Upon request, or on its own motion, the Commission
3797+22 may open an investigation, no more than once every 3 years
3798+23 and not before October 1, 2014, to evaluate the
3799+24 effectiveness of the self-directing program described in
3800+25 this subsection (m).
3801+26 Customers described in this subsection (m) that applied to
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3811+ HB5539 Enrolled - 107 - LRB103 38494 CES 68630 b
3812+1 the Department on January 3, 2013, were approved by the
3813+2 Department on February 13, 2013 to be a self-directing
3814+3 customer or exempt customer, and receive natural gas from a
3815+4 utility that provides gas service to at least 500,000 retail
3816+5 customers in Illinois and electric service to at least
3817+6 1,000,000 retail customers in Illinois shall be considered to
3818+7 be a self-directing customer or exempt customer, as
3819+8 applicable, for the current 3-year planning period effective
3820+9 December 1, 2013.
3821+10 (n) The applicability of this Section to customers
3822+11 described in subsection (m) of this Section is conditioned on
3823+12 the existence of the SDC program. In no event will any
3824+13 provision of this Section apply to such customers after
3825+14 January 1, 2020.
3826+15 (o) Utilities' 3-year energy efficiency plans approved by
3827+16 the Commission on or before the effective date of this
3828+17 amendatory Act of the 99th General Assembly for the period
3829+18 June 1, 2014 through May 31, 2017 shall continue to be in force
3830+19 and effect through December 31, 2017 so that the energy
3831+20 efficiency programs set forth in those plans continue to be
3832+21 offered during the period June 1, 2017 through December 31,
3833+22 2017. Each utility is authorized to increase, on a pro rata
3834+23 basis, the energy savings goals and budgets approved in its
3835+24 plan to reflect the additional 7 months of the plan's
3836+25 operation.
3837+26 (Source: P.A. 98-90, eff. 7-15-13; 98-225, eff. 8-9-13;
3838+
3839+
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3847+ HB5539 Enrolled - 108 - LRB103 38494 CES 68630 b
3848+1 98-604, eff. 12-17-13; 99-906, eff. 6-1-17.)
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