Bill Text: IL HB5539 | 2023-2024 | 103rd General Assembly | Enrolled
Bill Title: Amends the Public Utilities Act. Adds public institutions of higher education to the list of organizations from which cost-effective energy efficiency measures may be procured for purposes of the Act. Effective immediately.
Spectrum: Bipartisan Bill
Status: (Enrolled) 2024-05-16 - Passed Both Houses [HB5539 Detail]
Download: Illinois-2023-HB5539-Enrolled.html
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1 | AN ACT concerning utilities.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Public Utilities Act is amended by changing | ||||||
5 | Sections 8-103, 8-103B, and 8-104 as follows:
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6 | (220 ILCS 5/8-103) | ||||||
7 | Sec. 8-103. Energy efficiency and demand-response | ||||||
8 | measures. | ||||||
9 | (a) It is the policy of the State that electric utilities | ||||||
10 | are required to use cost-effective energy efficiency and | ||||||
11 | demand-response measures to reduce delivery load. Requiring | ||||||
12 | investment in cost-effective energy efficiency and | ||||||
13 | demand-response measures will reduce direct and indirect costs | ||||||
14 | to consumers by decreasing environmental impacts and by | ||||||
15 | avoiding or delaying the need for new generation, | ||||||
16 | transmission, and distribution infrastructure. It serves the | ||||||
17 | public interest to allow electric utilities to recover costs | ||||||
18 | for reasonably and prudently incurred expenses for energy | ||||||
19 | efficiency and demand-response measures. As used in this | ||||||
20 | Section, "cost-effective" means that the measures satisfy the | ||||||
21 | total resource cost test. The low-income measures described in | ||||||
22 | subsection (f)(4) of this Section shall not be required to | ||||||
23 | meet the total resource cost test. For purposes of this |
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1 | Section, the terms "energy-efficiency", "demand-response", | ||||||
2 | "electric utility", and "total resource cost test" shall have | ||||||
3 | the meanings set forth in the Illinois Power Agency Act. For | ||||||
4 | purposes of this Section, the amount per kilowatthour means | ||||||
5 | the total amount paid for electric service expressed on a per | ||||||
6 | kilowatthour basis. For purposes of this Section, the total | ||||||
7 | amount paid for electric service includes without limitation | ||||||
8 | estimated amounts paid for supply, transmission, distribution, | ||||||
9 | surcharges, and add-on-taxes. | ||||||
10 | (a-5) This Section applies to electric utilities serving | ||||||
11 | 500,000 or less but more than 200,000 retail customers in this | ||||||
12 | State. Through December 31, 2017, this Section also applies to | ||||||
13 | electric utilities serving more than 500,000 retail customers | ||||||
14 | in the State. | ||||||
15 | (b) Electric utilities shall implement cost-effective | ||||||
16 | energy efficiency measures to meet the following incremental | ||||||
17 | annual energy savings goals: | ||||||
18 | (1) 0.2% of energy delivered in the year commencing | ||||||
19 | June 1, 2008; | ||||||
20 | (2) 0.4% of energy delivered in the year commencing | ||||||
21 | June 1, 2009; | ||||||
22 | (3) 0.6% of energy delivered in the year commencing | ||||||
23 | June 1, 2010; | ||||||
24 | (4) 0.8% of energy delivered in the year commencing | ||||||
25 | June 1, 2011; | ||||||
26 | (5) 1% of energy delivered in the year commencing June |
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1 | 1, 2012; | ||||||
2 | (6) 1.4% of energy delivered in the year commencing | ||||||
3 | June 1, 2013; | ||||||
4 | (7) 1.8% of energy delivered in the year commencing | ||||||
5 | June 1, 2014; and | ||||||
6 | (8) 2% of energy delivered in the year commencing June | ||||||
7 | 1, 2015 and each year thereafter. | ||||||
8 | Electric utilities may comply with this subsection (b) by | ||||||
9 | meeting the annual incremental savings goal in the applicable | ||||||
10 | year or by showing that the total cumulative annual savings | ||||||
11 | within a 3-year planning period associated with measures | ||||||
12 | implemented after May 31, 2014 was equal to the sum of each | ||||||
13 | annual incremental savings requirement from May 31, 2014 | ||||||
14 | through the end of the applicable year. | ||||||
15 | (c) Electric utilities shall implement cost-effective | ||||||
16 | demand-response measures to reduce peak demand by 0.1% over | ||||||
17 | the prior year for eligible retail customers, as defined in | ||||||
18 | Section 16-111.5 of this Act, and for customers that elect | ||||||
19 | hourly service from the utility pursuant to Section 16-107 of | ||||||
20 | this Act, provided those customers have not been declared | ||||||
21 | competitive. This requirement commences June 1, 2008 and | ||||||
22 | continues for 10 years. | ||||||
23 | (d) Notwithstanding the requirements of subsections (b) | ||||||
24 | and (c) of this Section, an electric utility shall reduce the | ||||||
25 | amount of energy efficiency and demand-response measures | ||||||
26 | implemented over a 3-year planning period by an amount |
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1 | necessary to limit the estimated average annual increase in | ||||||
2 | the amounts paid by retail customers in connection with | ||||||
3 | electric service due to the cost of those measures to: | ||||||
4 | (1) in 2008, no more than 0.5% of the amount paid per | ||||||
5 | kilowatthour by those customers during the year ending May | ||||||
6 | 31, 2007; | ||||||
7 | (2) in 2009, the greater of an additional 0.5% of the | ||||||
8 | amount paid per kilowatthour by those customers during the | ||||||
9 | year ending May 31, 2008 or 1% of the amount paid per | ||||||
10 | kilowatthour by those customers during the year ending May | ||||||
11 | 31, 2007; | ||||||
12 | (3) in 2010, the greater of an additional 0.5% of the | ||||||
13 | amount paid per kilowatthour by those customers during the | ||||||
14 | year ending May 31, 2009 or 1.5% of the amount paid per | ||||||
15 | kilowatthour by those customers during the year ending May | ||||||
16 | 31, 2007; | ||||||
17 | (4) in 2011, the greater of an additional 0.5% of the | ||||||
18 | amount paid per kilowatthour by those customers during the | ||||||
19 | year ending May 31, 2010 or 2% of the amount paid per | ||||||
20 | kilowatthour by those customers during the year ending May | ||||||
21 | 31, 2007; and | ||||||
22 | (5) thereafter, the amount of energy efficiency and | ||||||
23 | demand-response measures implemented for any single year | ||||||
24 | shall be reduced by an amount necessary to limit the | ||||||
25 | estimated average net increase due to the cost of these | ||||||
26 | measures included in the amounts paid by eligible retail |
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1 | customers in connection with electric service to no more | ||||||
2 | than the greater of 2.015% of the amount paid per | ||||||
3 | kilowatthour by those customers during the year ending May | ||||||
4 | 31, 2007 or the incremental amount per kilowatthour paid | ||||||
5 | for these measures in 2011. | ||||||
6 | No later than June 30, 2011, the Commission shall review | ||||||
7 | the limitation on the amount of energy efficiency and | ||||||
8 | demand-response measures implemented pursuant to this Section | ||||||
9 | and report to the General Assembly its findings as to whether | ||||||
10 | that limitation unduly constrains the procurement of energy | ||||||
11 | efficiency and demand-response measures. | ||||||
12 | (e) Electric utilities shall be responsible for overseeing | ||||||
13 | the design, development, and filing of energy efficiency and | ||||||
14 | demand-response plans with the Commission. Electric utilities | ||||||
15 | shall implement 100% of the demand-response measures in the | ||||||
16 | plans. Electric utilities shall implement 75% of the energy | ||||||
17 | efficiency measures approved by the Commission, and may, as | ||||||
18 | part of that implementation, outsource various aspects of | ||||||
19 | program development and implementation. The remaining 25% of | ||||||
20 | those energy efficiency measures approved by the Commission | ||||||
21 | shall be implemented by the Department of Commerce and | ||||||
22 | Economic Opportunity, and must be designed in conjunction with | ||||||
23 | the utility and the filing process. The Department may | ||||||
24 | outsource development and implementation of energy efficiency | ||||||
25 | measures. A minimum of 10% of the entire portfolio of | ||||||
26 | cost-effective energy efficiency measures shall be procured |
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1 | from units of local government, municipal corporations, school | ||||||
2 | districts, public institutions of higher education, and | ||||||
3 | community college districts. The Department shall coordinate | ||||||
4 | the implementation of these measures. | ||||||
5 | The apportionment of the dollars to cover the costs to | ||||||
6 | implement the Department's share of the portfolio of energy | ||||||
7 | efficiency measures shall be made to the Department once the | ||||||
8 | Department has executed rebate agreements, grants, or | ||||||
9 | contracts for energy efficiency measures and provided | ||||||
10 | supporting documentation for those rebate agreements, grants, | ||||||
11 | and contracts to the utility. The Department is authorized to | ||||||
12 | adopt any rules necessary and prescribe procedures in order to | ||||||
13 | ensure compliance by applicants in carrying out the purposes | ||||||
14 | of rebate agreements for energy efficiency measures | ||||||
15 | implemented by the Department made under this Section. | ||||||
16 | The details of the measures implemented by the Department | ||||||
17 | shall be submitted by the Department to the Commission in | ||||||
18 | connection with the utility's filing regarding the energy | ||||||
19 | efficiency and demand-response measures that the utility | ||||||
20 | implements. | ||||||
21 | A utility providing approved energy efficiency and | ||||||
22 | demand-response measures in the State shall be permitted to | ||||||
23 | recover costs of those measures through an automatic | ||||||
24 | adjustment clause tariff filed with and approved by the | ||||||
25 | Commission. The tariff shall be established outside the | ||||||
26 | context of a general rate case. Each year the Commission shall |
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1 | initiate a review to reconcile any amounts collected with the | ||||||
2 | actual costs and to determine the required adjustment to the | ||||||
3 | annual tariff factor to match annual expenditures. | ||||||
4 | Each utility shall include, in its recovery of costs, the | ||||||
5 | costs estimated for both the utility's and the Department's | ||||||
6 | implementation of energy efficiency and demand-response | ||||||
7 | measures. Costs collected by the utility for measures | ||||||
8 | implemented by the Department shall be submitted to the | ||||||
9 | Department pursuant to Section 605-323 of the Civil | ||||||
10 | Administrative Code of Illinois, shall be deposited into the | ||||||
11 | Energy Efficiency Portfolio Standards Fund, and shall be used | ||||||
12 | by the Department solely for the purpose of implementing these | ||||||
13 | measures. A utility shall not be required to advance any | ||||||
14 | moneys to the Department but only to forward such funds as it | ||||||
15 | has collected. The Department shall report to the Commission | ||||||
16 | on an annual basis regarding the costs actually incurred by | ||||||
17 | the Department in the implementation of the measures. Any | ||||||
18 | changes to the costs of energy efficiency measures as a result | ||||||
19 | of plan modifications shall be appropriately reflected in | ||||||
20 | amounts recovered by the utility and turned over to the | ||||||
21 | Department. | ||||||
22 | The portfolio of measures, administered by both the | ||||||
23 | utilities and the Department, shall, in combination, be | ||||||
24 | designed to achieve the annual savings targets described in | ||||||
25 | subsections (b) and (c) of this Section, as modified by | ||||||
26 | subsection (d) of this Section. |
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1 | The utility and the Department shall agree upon a | ||||||
2 | reasonable portfolio of measures and determine the measurable | ||||||
3 | corresponding percentage of the savings goals associated with | ||||||
4 | measures implemented by the utility or Department. | ||||||
5 | No utility shall be assessed a penalty under subsection | ||||||
6 | (f) of this Section for failure to make a timely filing if that | ||||||
7 | failure is the result of a lack of agreement with the | ||||||
8 | Department with respect to the allocation of responsibilities | ||||||
9 | or related costs or target assignments. In that case, the | ||||||
10 | Department and the utility shall file their respective plans | ||||||
11 | with the Commission and the Commission shall determine an | ||||||
12 | appropriate division of measures and programs that meets the | ||||||
13 | requirements of this Section. | ||||||
14 | If the Department is unable to meet incremental annual | ||||||
15 | performance goals for the portion of the portfolio implemented | ||||||
16 | by the Department, then the utility and the Department shall | ||||||
17 | jointly submit a modified filing to the Commission explaining | ||||||
18 | the performance shortfall and recommending an appropriate | ||||||
19 | course going forward, including any program modifications that | ||||||
20 | may be appropriate in light of the evaluations conducted under | ||||||
21 | item (7) of subsection (f) of this Section. In this case, the | ||||||
22 | utility obligation to collect the Department's costs and turn | ||||||
23 | over those funds to the Department under this subsection (e) | ||||||
24 | shall continue only if the Commission approves the | ||||||
25 | modifications to the plan proposed by the Department. | ||||||
26 | (f) No later than November 15, 2007, each electric utility |
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1 | shall file an energy efficiency and demand-response plan with | ||||||
2 | the Commission to meet the energy efficiency and | ||||||
3 | demand-response standards for 2008 through 2010. No later than | ||||||
4 | October 1, 2010, each electric utility shall file an energy | ||||||
5 | efficiency and demand-response plan with the Commission to | ||||||
6 | meet the energy efficiency and demand-response standards for | ||||||
7 | 2011 through 2013. Every 3 years thereafter, each electric | ||||||
8 | utility shall file, no later than September 1, an energy | ||||||
9 | efficiency and demand-response plan with the Commission. If a | ||||||
10 | utility does not file such a plan by September 1 of an | ||||||
11 | applicable year, it shall face a penalty of $100,000 per day | ||||||
12 | until the plan is filed. Each utility's plan shall set forth | ||||||
13 | the utility's proposals to meet the utility's portion of the | ||||||
14 | energy efficiency standards identified in subsection (b) and | ||||||
15 | the demand-response standards identified in subsection (c) of | ||||||
16 | this Section as modified by subsections (d) and (e), taking | ||||||
17 | into account the unique circumstances of the utility's service | ||||||
18 | territory. The Commission shall seek public comment on the | ||||||
19 | utility's plan and shall issue an order approving or | ||||||
20 | disapproving each plan within 5 months after its submission. | ||||||
21 | If the Commission disapproves a plan, the Commission shall, | ||||||
22 | within 30 days, describe in detail the reasons for the | ||||||
23 | disapproval and describe a path by which the utility may file a | ||||||
24 | revised draft of the plan to address the Commission's concerns | ||||||
25 | satisfactorily. If the utility does not refile with the | ||||||
26 | Commission within 60 days, the utility shall be subject to |
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1 | penalties at a rate of $100,000 per day until the plan is | ||||||
2 | filed. This process shall continue, and penalties shall | ||||||
3 | accrue, until the utility has successfully filed a portfolio | ||||||
4 | of energy efficiency and demand-response measures. Penalties | ||||||
5 | shall be deposited into the Energy Efficiency Trust Fund. In | ||||||
6 | submitting proposed energy efficiency and demand-response | ||||||
7 | plans and funding levels to meet the savings goals adopted by | ||||||
8 | this Act the utility shall: | ||||||
9 | (1) Demonstrate that its proposed energy efficiency | ||||||
10 | and demand-response measures will achieve the requirements | ||||||
11 | that are identified in subsections (b) and (c) of this | ||||||
12 | Section, as modified by subsections (d) and (e). | ||||||
13 | (2) Present specific proposals to implement new | ||||||
14 | building and appliance standards that have been placed | ||||||
15 | into effect. | ||||||
16 | (3) Present estimates of the total amount paid for | ||||||
17 | electric service expressed on a per kilowatthour basis | ||||||
18 | associated with the proposed portfolio of measures | ||||||
19 | designed to meet the requirements that are identified in | ||||||
20 | subsections (b) and (c) of this Section, as modified by | ||||||
21 | subsections (d) and (e). | ||||||
22 | (4) Coordinate with the Department to present a | ||||||
23 | portfolio of energy efficiency measures proportionate to | ||||||
24 | the share of total annual utility revenues in Illinois | ||||||
25 | from households at or below 150% of the poverty level. The | ||||||
26 | energy efficiency programs shall be targeted to households |
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1 | with incomes at or below 80% of area median income. | ||||||
2 | (5) Demonstrate that its overall portfolio of energy | ||||||
3 | efficiency and demand-response measures, not including | ||||||
4 | programs covered by item (4) of this subsection (f), are | ||||||
5 | cost-effective using the total resource cost test and | ||||||
6 | represent a diverse cross-section of opportunities for | ||||||
7 | customers of all rate classes to participate in the | ||||||
8 | programs. | ||||||
9 | (6) Include a proposed cost-recovery tariff mechanism | ||||||
10 | to fund the proposed energy efficiency and demand-response | ||||||
11 | measures and to ensure the recovery of the prudently and | ||||||
12 | reasonably incurred costs of Commission-approved programs. | ||||||
13 | (7) Provide for an annual independent evaluation of | ||||||
14 | the performance of the cost-effectiveness of the utility's | ||||||
15 | portfolio of measures and the Department's portfolio of | ||||||
16 | measures, as well as a full review of the 3-year results of | ||||||
17 | the broader net program impacts and, to the extent | ||||||
18 | practical, for adjustment of the measures on a | ||||||
19 | going-forward basis as a result of the evaluations. The | ||||||
20 | resources dedicated to evaluation shall not exceed 3% of | ||||||
21 | portfolio resources in any given year. | ||||||
22 | (g) No more than 3% of energy efficiency and | ||||||
23 | demand-response program revenue may be allocated for | ||||||
24 | demonstration of breakthrough equipment and devices. | ||||||
25 | (h) This Section does not apply to an electric utility | ||||||
26 | that on December 31, 2005 provided electric service to fewer |
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1 | than 100,000 customers in Illinois. | ||||||
2 | (i) If, after 2 years, an electric utility fails to meet | ||||||
3 | the efficiency standard specified in subsection (b) of this | ||||||
4 | Section, as modified by subsections (d) and (e), it shall make | ||||||
5 | a contribution to the Low-Income Home Energy Assistance | ||||||
6 | Program. The combined total liability for failure to meet the | ||||||
7 | goal shall be $1,000,000, which shall be assessed as follows: | ||||||
8 | a large electric utility shall pay $665,000, and a medium | ||||||
9 | electric utility shall pay $335,000. If, after 3 years, an | ||||||
10 | electric utility fails to meet the efficiency standard | ||||||
11 | specified in subsection (b) of this Section, as modified by | ||||||
12 | subsections (d) and (e), it shall make a contribution to the | ||||||
13 | Low-Income Home Energy Assistance Program. The combined total | ||||||
14 | liability for failure to meet the goal shall be $1,000,000, | ||||||
15 | which shall be assessed as follows: a large electric utility | ||||||
16 | shall pay $665,000, and a medium electric utility shall pay | ||||||
17 | $335,000. In addition, the responsibility for implementing the | ||||||
18 | energy efficiency measures of the utility making the payment | ||||||
19 | shall be transferred to the Illinois Power Agency if, after 3 | ||||||
20 | years, or in any subsequent 3-year period, the utility fails | ||||||
21 | to meet the efficiency standard specified in subsection (b) of | ||||||
22 | this Section, as modified by subsections (d) and (e). The | ||||||
23 | Agency shall implement a competitive procurement program to | ||||||
24 | procure resources necessary to meet the standards specified in | ||||||
25 | this Section as modified by subsections (d) and (e), with | ||||||
26 | costs for those resources to be recovered in the same manner as |
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1 | products purchased through the procurement plan as provided in | ||||||
2 | Section 16-111.5. The Director shall implement this | ||||||
3 | requirement in connection with the procurement plan as | ||||||
4 | provided in Section 16-111.5. | ||||||
5 | For purposes of this Section, (i) a "large electric | ||||||
6 | utility" is an electric utility that, on December 31, 2005, | ||||||
7 | served more than 2,000,000 electric customers in Illinois; | ||||||
8 | (ii) a "medium electric utility" is an electric utility that, | ||||||
9 | on December 31, 2005, served 2,000,000 or fewer but more than | ||||||
10 | 100,000 electric customers in Illinois; and (iii) Illinois | ||||||
11 | electric utilities that are affiliated by virtue of a common | ||||||
12 | parent company are considered a single electric utility. | ||||||
13 | (j) If, after 3 years, or any subsequent 3-year period, | ||||||
14 | the Department fails to implement the Department's share of | ||||||
15 | energy efficiency measures required by the standards in | ||||||
16 | subsection (b), then the Illinois Power Agency may assume | ||||||
17 | responsibility for and control of the Department's share of | ||||||
18 | the required energy efficiency measures. The Agency shall | ||||||
19 | implement a competitive procurement program to procure | ||||||
20 | resources necessary to meet the standards specified in this | ||||||
21 | Section, with the costs of these resources to be recovered in | ||||||
22 | the same manner as provided for the Department in this | ||||||
23 | Section. | ||||||
24 | (k) No electric utility shall be deemed to have failed to | ||||||
25 | meet the energy efficiency standards to the extent any such | ||||||
26 | failure is due to a failure of the Department or the Agency. |
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1 | (l)(1) The energy efficiency and demand-response plans of | ||||||
2 | electric utilities serving more than 500,000 retail customers | ||||||
3 | in the State that were approved by the Commission on or before | ||||||
4 | the effective date of this amendatory Act of the 99th General | ||||||
5 | Assembly for the period June 1, 2014 through May 31, 2017 shall | ||||||
6 | continue to be in force and effect through December 31, 2017 so | ||||||
7 | that the energy efficiency programs set forth in those plans | ||||||
8 | continue to be offered during the period June 1, 2017 through | ||||||
9 | December 31, 2017. Each such utility is authorized to | ||||||
10 | increase, on a pro rata basis, the energy savings goals and | ||||||
11 | budgets approved in its plan to reflect the additional 7 | ||||||
12 | months of the plan's operation, provided that such increase | ||||||
13 | shall also incorporate reductions to goals and budgets to | ||||||
14 | reflect the proportion of the utility's load attributable to | ||||||
15 | customers who are exempt from this Section under subsection | ||||||
16 | (m) of this Section. | ||||||
17 | (2) If an electric utility serving more than 500,000 | ||||||
18 | retail customers in the State filed with the Commission, under | ||||||
19 | subsection (f) of this Section, its proposed energy efficiency | ||||||
20 | and demand-response plan for the period June 1, 2017 through | ||||||
21 | May 31, 2020, and the Commission has not yet entered its final | ||||||
22 | order approving such plan on or before the effective date of | ||||||
23 | this amendatory Act of the 99th General Assembly, then the | ||||||
24 | utility shall file a notice of withdrawal with the Commission, | ||||||
25 | following such effective date, to withdraw the proposed energy | ||||||
26 | efficiency and demand-response plan. Upon receipt of such |
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1 | notice, the Commission shall dismiss with prejudice any docket | ||||||
2 | that had been initiated to investigate such plan, and the plan | ||||||
3 | and the record related thereto shall not be the subject of any | ||||||
4 | further hearing, investigation, or proceeding of any kind. | ||||||
5 | (3) For those electric utilities that serve more than | ||||||
6 | 500,000 retail customers in the State, this amendatory Act of | ||||||
7 | the 99th General Assembly preempts and supersedes any orders | ||||||
8 | entered by the Commission that approved such utilities' energy | ||||||
9 | efficiency and demand response plans for the period commencing | ||||||
10 | June 1, 2017 and ending May 31, 2020. Any such orders shall be | ||||||
11 | void, and the provisions of paragraph (1) of this subsection | ||||||
12 | (l) shall apply. | ||||||
13 | (m) Notwithstanding anything to the contrary, after May | ||||||
14 | 31, 2017, this Section does not apply to any retail customers | ||||||
15 | of an electric utility that serves more than 3,000,000 retail | ||||||
16 | customers in the State and whose total highest 30 minute | ||||||
17 | demand was more than 10,000 kilowatts, or any retail customers | ||||||
18 | of an electric utility that serves less than 3,000,000 retail | ||||||
19 | customers but more than 500,000 retail customers in the State | ||||||
20 | and whose total highest 15 minute demand was more than 10,000 | ||||||
21 | kilowatts. For purposes of this subsection (m), "retail | ||||||
22 | customer" has the meaning set forth in Section 16-102 of this | ||||||
23 | Act. The criteria for determining whether this subsection (m) | ||||||
24 | is applicable to a retail customer shall be based on the 12 | ||||||
25 | consecutive billing periods prior to the start of the first | ||||||
26 | year of each such multi-year plan. |
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1 | (Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17 .)
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2 | (220 ILCS 5/8-103B) | ||||||
3 | Sec. 8-103B. Energy efficiency and demand-response | ||||||
4 | measures. | ||||||
5 | (a) It is the policy of the State that electric utilities | ||||||
6 | are required to use cost-effective energy efficiency and | ||||||
7 | demand-response measures to reduce delivery load. Requiring | ||||||
8 | investment in cost-effective energy efficiency and | ||||||
9 | demand-response measures will reduce direct and indirect costs | ||||||
10 | to consumers by decreasing environmental impacts and by | ||||||
11 | avoiding or delaying the need for new generation, | ||||||
12 | transmission, and distribution infrastructure. It serves the | ||||||
13 | public interest to allow electric utilities to recover costs | ||||||
14 | for reasonably and prudently incurred expenditures for energy | ||||||
15 | efficiency and demand-response measures. As used in this | ||||||
16 | Section, "cost-effective" means that the measures satisfy the | ||||||
17 | total resource cost test. The low-income measures described in | ||||||
18 | subsection (c) of this Section shall not be required to meet | ||||||
19 | the total resource cost test. For purposes of this Section, | ||||||
20 | the terms "energy-efficiency", "demand-response", "electric | ||||||
21 | utility", and "total resource cost test" have the meanings set | ||||||
22 | forth in the Illinois Power Agency Act. "Black, indigenous, | ||||||
23 | and people of color" and "BIPOC" means people who are members | ||||||
24 | of the groups described in subparagraphs (a) through (e) of | ||||||
25 | paragraph (A) of subsection (1) of Section 2 of the Business |
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1 | Enterprise for Minorities, Women, and Persons with | ||||||
2 | Disabilities Act. | ||||||
3 | (a-5) This Section applies to electric utilities serving | ||||||
4 | more than 500,000 retail customers in the State for those | ||||||
5 | multi-year plans commencing after December 31, 2017. | ||||||
6 | (b) For purposes of this Section, electric utilities | ||||||
7 | subject to this Section that serve more than 3,000,000 retail | ||||||
8 | customers in the State shall be deemed to have achieved a | ||||||
9 | cumulative persisting annual savings of 6.6% from energy | ||||||
10 | efficiency measures and programs implemented during the period | ||||||
11 | beginning January 1, 2012 and ending December 31, 2017, which | ||||||
12 | percent is based on the deemed average weather normalized | ||||||
13 | sales of electric power and energy during calendar years 2014, | ||||||
14 | 2015, and 2016 of 88,000,000 MWhs. For the purposes of this | ||||||
15 | subsection (b) and subsection (b-5), the 88,000,000 MWhs of | ||||||
16 | deemed electric power and energy sales shall be reduced by the | ||||||
17 | number of MWhs equal to the sum of the annual consumption of | ||||||
18 | customers that have opted out of subsections (a) through (j) | ||||||
19 | of this Section under paragraph (1) of subsection (l) of this | ||||||
20 | Section, as averaged across the calendar years 2014, 2015, and | ||||||
21 | 2016. After 2017, the deemed value of cumulative persisting | ||||||
22 | annual savings from energy efficiency measures and programs | ||||||
23 | implemented during the period beginning January 1, 2012 and | ||||||
24 | ending December 31, 2017, shall be reduced each year, as | ||||||
25 | follows, and the applicable value shall be applied to and | ||||||
26 | count toward the utility's achievement of the cumulative |
| |||||||
| |||||||
1 | persisting annual savings goals set forth in subsection (b-5): | ||||||
2 | (1) 5.8% deemed cumulative persisting annual savings | ||||||
3 | for the year ending December 31, 2018; | ||||||
4 | (2) 5.2% deemed cumulative persisting annual savings | ||||||
5 | for the year ending December 31, 2019; | ||||||
6 | (3) 4.5% deemed cumulative persisting annual savings | ||||||
7 | for the year ending December 31, 2020; | ||||||
8 | (4) 4.0% deemed cumulative persisting annual savings | ||||||
9 | for the year ending December 31, 2021; | ||||||
10 | (5) 3.5% deemed cumulative persisting annual savings | ||||||
11 | for the year ending December 31, 2022; | ||||||
12 | (6) 3.1% deemed cumulative persisting annual savings | ||||||
13 | for the year ending December 31, 2023; | ||||||
14 | (7) 2.8% deemed cumulative persisting annual savings | ||||||
15 | for the year ending December 31, 2024; | ||||||
16 | (8) 2.5% deemed cumulative persisting annual savings | ||||||
17 | for the year ending December 31, 2025; | ||||||
18 | (9) 2.3% deemed cumulative persisting annual savings | ||||||
19 | for the year ending December 31, 2026; | ||||||
20 | (10) 2.1% deemed cumulative persisting annual savings | ||||||
21 | for the year ending December 31, 2027; | ||||||
22 | (11) 1.8% deemed cumulative persisting annual savings | ||||||
23 | for the year ending December 31, 2028; | ||||||
24 | (12) 1.7% deemed cumulative persisting annual savings | ||||||
25 | for the year ending December 31, 2029; | ||||||
26 | (13) 1.5% deemed cumulative persisting annual savings |
| |||||||
| |||||||
1 | for the year ending December 31, 2030; | ||||||
2 | (14) 1.3% deemed cumulative persisting annual savings | ||||||
3 | for the year ending December 31, 2031; | ||||||
4 | (15) 1.1% deemed cumulative persisting annual savings | ||||||
5 | for the year ending December 31, 2032; | ||||||
6 | (16) 0.9% deemed cumulative persisting annual savings | ||||||
7 | for the year ending December 31, 2033; | ||||||
8 | (17) 0.7% deemed cumulative persisting annual savings | ||||||
9 | for the year ending December 31, 2034; | ||||||
10 | (18) 0.5% deemed cumulative persisting annual savings | ||||||
11 | for the year ending December 31, 2035; | ||||||
12 | (19) 0.4% deemed cumulative persisting annual savings | ||||||
13 | for the year ending December 31, 2036; | ||||||
14 | (20) 0.3% deemed cumulative persisting annual savings | ||||||
15 | for the year ending December 31, 2037; | ||||||
16 | (21) 0.2% deemed cumulative persisting annual savings | ||||||
17 | for the year ending December 31, 2038; | ||||||
18 | (22) 0.1% deemed cumulative persisting annual savings | ||||||
19 | for the year ending December 31, 2039; and | ||||||
20 | (23) 0.0% deemed cumulative persisting annual savings | ||||||
21 | for the year ending December 31, 2040 and all subsequent | ||||||
22 | years. | ||||||
23 | For purposes of this Section, "cumulative persisting | ||||||
24 | annual savings" means the total electric energy savings in a | ||||||
25 | given year from measures installed in that year or in previous | ||||||
26 | years, but no earlier than January 1, 2012, that are still |
| |||||||
| |||||||
1 | operational and providing savings in that year because the | ||||||
2 | measures have not yet reached the end of their useful lives. | ||||||
3 | (b-5) Beginning in 2018, electric utilities subject to | ||||||
4 | this Section that serve more than 3,000,000 retail customers | ||||||
5 | in the State shall achieve the following cumulative persisting | ||||||
6 | annual savings goals, as modified by subsection (f) of this | ||||||
7 | Section and as compared to the deemed baseline of 88,000,000 | ||||||
8 | MWhs of electric power and energy sales set forth in | ||||||
9 | subsection (b), as reduced by the number of MWhs equal to the | ||||||
10 | sum of the annual consumption of customers that have opted out | ||||||
11 | of subsections (a) through (j) of this Section under paragraph | ||||||
12 | (1) of subsection (l) of this Section as averaged across the | ||||||
13 | calendar years 2014, 2015, and 2016, through the | ||||||
14 | implementation of energy efficiency measures during the | ||||||
15 | applicable year and in prior years, but no earlier than | ||||||
16 | January 1, 2012: | ||||||
17 | (1) 7.8% cumulative persisting annual savings for the | ||||||
18 | year ending December 31, 2018; | ||||||
19 | (2) 9.1% cumulative persisting annual savings for the | ||||||
20 | year ending December 31, 2019; | ||||||
21 | (3) 10.4% cumulative persisting annual savings for the | ||||||
22 | year ending December 31, 2020; | ||||||
23 | (4) 11.8% cumulative persisting annual savings for the | ||||||
24 | year ending December 31, 2021; | ||||||
25 | (5) 13.1% cumulative persisting annual savings for the | ||||||
26 | year ending December 31, 2022; |
| |||||||
| |||||||
1 | (6) 14.4% cumulative persisting annual savings for the | ||||||
2 | year ending December 31, 2023; | ||||||
3 | (7) 15.7% cumulative persisting annual savings for the | ||||||
4 | year ending December 31, 2024; | ||||||
5 | (8) 17% cumulative persisting annual savings for the | ||||||
6 | year ending December 31, 2025; | ||||||
7 | (9) 17.9% cumulative persisting annual savings for the | ||||||
8 | year ending December 31, 2026; | ||||||
9 | (10) 18.8% cumulative persisting annual savings for | ||||||
10 | the year ending December 31, 2027; | ||||||
11 | (11) 19.7% cumulative persisting annual savings for | ||||||
12 | the year ending December 31, 2028; | ||||||
13 | (12) 20.6% cumulative persisting annual savings for | ||||||
14 | the year ending December 31, 2029; and | ||||||
15 | (13) 21.5% cumulative persisting annual savings for | ||||||
16 | the year ending December 31, 2030. | ||||||
17 | No later than December 31, 2021, the Illinois Commerce | ||||||
18 | Commission shall establish additional cumulative persisting | ||||||
19 | annual savings goals for the years 2031 through 2035. No later | ||||||
20 | than December 31, 2024, the Illinois Commerce Commission shall | ||||||
21 | establish additional cumulative persisting annual savings | ||||||
22 | goals for the years 2036 through 2040. The Commission shall | ||||||
23 | also establish additional cumulative persisting annual savings | ||||||
24 | goals every 5 years thereafter to ensure that utilities always | ||||||
25 | have goals that extend at least 11 years into the future. The | ||||||
26 | cumulative persisting annual savings goals beyond the year |
| |||||||
| |||||||
1 | 2030 shall increase by 0.9 percentage points per year, absent | ||||||
2 | a Commission decision to initiate a proceeding to consider | ||||||
3 | establishing goals that increase by more or less than that | ||||||
4 | amount. Such a proceeding must be conducted in accordance with | ||||||
5 | the procedures described in subsection (f) of this Section. If | ||||||
6 | such a proceeding is initiated, the cumulative persisting | ||||||
7 | annual savings goals established by the Commission through | ||||||
8 | that proceeding shall reflect the Commission's best estimate | ||||||
9 | of the maximum amount of additional savings that are forecast | ||||||
10 | to be cost-effectively achievable unless such best estimates | ||||||
11 | would result in goals that represent less than 0.5 percentage | ||||||
12 | point annual increases in total cumulative persisting annual | ||||||
13 | savings. The Commission may only establish goals that | ||||||
14 | represent less than 0.5 percentage point annual increases in | ||||||
15 | cumulative persisting annual savings if it can demonstrate, | ||||||
16 | based on clear and convincing evidence and through independent | ||||||
17 | analysis, that 0.5 percentage point increases are not | ||||||
18 | cost-effectively achievable. The Commission shall inform its | ||||||
19 | decision based on an energy efficiency potential study that | ||||||
20 | conforms to the requirements of this Section. | ||||||
21 | (b-10) For purposes of this Section, electric utilities | ||||||
22 | subject to this Section that serve less than 3,000,000 retail | ||||||
23 | customers but more than 500,000 retail customers in the State | ||||||
24 | shall be deemed to have achieved a cumulative persisting | ||||||
25 | annual savings of 6.6% from energy efficiency measures and | ||||||
26 | programs implemented during the period beginning January 1, |
| |||||||
| |||||||
1 | 2012 and ending December 31, 2017, which is based on the deemed | ||||||
2 | average weather normalized sales of electric power and energy | ||||||
3 | during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs. | ||||||
4 | For the purposes of this subsection (b-10) and subsection | ||||||
5 | (b-15), the 36,900,000 MWhs of deemed electric power and | ||||||
6 | energy sales shall be reduced by the number of MWhs equal to | ||||||
7 | the sum of the annual consumption of customers that have opted | ||||||
8 | out of subsections (a) through (j) of this Section under | ||||||
9 | paragraph (1) of subsection (l) of this Section, as averaged | ||||||
10 | across the calendar years 2014, 2015, and 2016. After 2017, | ||||||
11 | the deemed value of cumulative persisting annual savings from | ||||||
12 | energy efficiency measures and programs implemented during the | ||||||
13 | period beginning January 1, 2012 and ending December 31, 2017, | ||||||
14 | shall be reduced each year, as follows, and the applicable | ||||||
15 | value shall be applied to and count toward the utility's | ||||||
16 | achievement of the cumulative persisting annual savings goals | ||||||
17 | set forth in subsection (b-15): | ||||||
18 | (1) 5.8% deemed cumulative persisting annual savings | ||||||
19 | for the year ending December 31, 2018; | ||||||
20 | (2) 5.2% deemed cumulative persisting annual savings | ||||||
21 | for the year ending December 31, 2019; | ||||||
22 | (3) 4.5% deemed cumulative persisting annual savings | ||||||
23 | for the year ending December 31, 2020; | ||||||
24 | (4) 4.0% deemed cumulative persisting annual savings | ||||||
25 | for the year ending December 31, 2021; | ||||||
26 | (5) 3.5% deemed cumulative persisting annual savings |
| |||||||
| |||||||
1 | for the year ending December 31, 2022; | ||||||
2 | (6) 3.1% deemed cumulative persisting annual savings | ||||||
3 | for the year ending December 31, 2023; | ||||||
4 | (7) 2.8% deemed cumulative persisting annual savings | ||||||
5 | for the year ending December 31, 2024; | ||||||
6 | (8) 2.5% deemed cumulative persisting annual savings | ||||||
7 | for the year ending December 31, 2025; | ||||||
8 | (9) 2.3% deemed cumulative persisting annual savings | ||||||
9 | for the year ending December 31, 2026; | ||||||
10 | (10) 2.1% deemed cumulative persisting annual savings | ||||||
11 | for the year ending December 31, 2027; | ||||||
12 | (11) 1.8% deemed cumulative persisting annual savings | ||||||
13 | for the year ending December 31, 2028; | ||||||
14 | (12) 1.7% deemed cumulative persisting annual savings | ||||||
15 | for the year ending December 31, 2029; | ||||||
16 | (13) 1.5% deemed cumulative persisting annual savings | ||||||
17 | for the year ending December 31, 2030; | ||||||
18 | (14) 1.3% deemed cumulative persisting annual savings | ||||||
19 | for the year ending December 31, 2031; | ||||||
20 | (15) 1.1% deemed cumulative persisting annual savings | ||||||
21 | for the year ending December 31, 2032; | ||||||
22 | (16) 0.9% deemed cumulative persisting annual savings | ||||||
23 | for the year ending December 31, 2033; | ||||||
24 | (17) 0.7% deemed cumulative persisting annual savings | ||||||
25 | for the year ending December 31, 2034; | ||||||
26 | (18) 0.5% deemed cumulative persisting annual savings |
| |||||||
| |||||||
1 | for the year ending December 31, 2035; | ||||||
2 | (19) 0.4% deemed cumulative persisting annual savings | ||||||
3 | for the year ending December 31, 2036; | ||||||
4 | (20) 0.3% deemed cumulative persisting annual savings | ||||||
5 | for the year ending December 31, 2037; | ||||||
6 | (21) 0.2% deemed cumulative persisting annual savings | ||||||
7 | for the year ending December 31, 2038; | ||||||
8 | (22) 0.1% deemed cumulative persisting annual savings | ||||||
9 | for the year ending December 31, 2039; and | ||||||
10 | (23) 0.0% deemed cumulative persisting annual savings | ||||||
11 | for the year ending December 31, 2040 and all subsequent | ||||||
12 | years. | ||||||
13 | (b-15) Beginning in 2018, electric utilities subject to | ||||||
14 | this Section that serve less than 3,000,000 retail customers | ||||||
15 | but more than 500,000 retail customers in the State shall | ||||||
16 | achieve the following cumulative persisting annual savings | ||||||
17 | goals, as modified by subsection (b-20) and subsection (f) of | ||||||
18 | this Section and as compared to the deemed baseline as reduced | ||||||
19 | by the number of MWhs equal to the sum of the annual | ||||||
20 | consumption of customers that have opted out of subsections | ||||||
21 | (a) through (j) of this Section under paragraph (1) of | ||||||
22 | subsection (l) of this Section as averaged across the calendar | ||||||
23 | years 2014, 2015, and 2016, through the implementation of | ||||||
24 | energy efficiency measures during the applicable year and in | ||||||
25 | prior years, but no earlier than January 1, 2012: | ||||||
26 | (1) 7.4% cumulative persisting annual savings for the |
| |||||||
| |||||||
1 | year ending December 31, 2018; | ||||||
2 | (2) 8.2% cumulative persisting annual savings for the | ||||||
3 | year ending December 31, 2019; | ||||||
4 | (3) 9.0% cumulative persisting annual savings for the | ||||||
5 | year ending December 31, 2020; | ||||||
6 | (4) 9.8% cumulative persisting annual savings for the | ||||||
7 | year ending December 31, 2021; | ||||||
8 | (5) 10.6% cumulative persisting annual savings for the | ||||||
9 | year ending December 31, 2022; | ||||||
10 | (6) 11.4% cumulative persisting annual savings for the | ||||||
11 | year ending December 31, 2023; | ||||||
12 | (7) 12.2% cumulative persisting annual savings for the | ||||||
13 | year ending December 31, 2024; | ||||||
14 | (8) 13% cumulative persisting annual savings for the | ||||||
15 | year ending December 31, 2025; | ||||||
16 | (9) 13.6% cumulative persisting annual savings for the | ||||||
17 | year ending December 31, 2026; | ||||||
18 | (10) 14.2% cumulative persisting annual savings for | ||||||
19 | the year ending December 31, 2027; | ||||||
20 | (11) 14.8% cumulative persisting annual savings for | ||||||
21 | the year ending December 31, 2028; | ||||||
22 | (12) 15.4% cumulative persisting annual savings for | ||||||
23 | the year ending December 31, 2029; and | ||||||
24 | (13) 16% cumulative persisting annual savings for the | ||||||
25 | year ending December 31, 2030. | ||||||
26 | No later than December 31, 2021, the Illinois Commerce |
| |||||||
| |||||||
1 | Commission shall establish additional cumulative persisting | ||||||
2 | annual savings goals for the years 2031 through 2035. No later | ||||||
3 | than December 31, 2024, the Illinois Commerce Commission shall | ||||||
4 | establish additional cumulative persisting annual savings | ||||||
5 | goals for the years 2036 through 2040. The Commission shall | ||||||
6 | also establish additional cumulative persisting annual savings | ||||||
7 | goals every 5 years thereafter to ensure that utilities always | ||||||
8 | have goals that extend at least 11 years into the future. The | ||||||
9 | cumulative persisting annual savings goals beyond the year | ||||||
10 | 2030 shall increase by 0.6 percentage points per year, absent | ||||||
11 | a Commission decision to initiate a proceeding to consider | ||||||
12 | establishing goals that increase by more or less than that | ||||||
13 | amount. Such a proceeding must be conducted in accordance with | ||||||
14 | the procedures described in subsection (f) of this Section. If | ||||||
15 | such a proceeding is initiated, the cumulative persisting | ||||||
16 | annual savings goals established by the Commission through | ||||||
17 | that proceeding shall reflect the Commission's best estimate | ||||||
18 | of the maximum amount of additional savings that are forecast | ||||||
19 | to be cost-effectively achievable unless such best estimates | ||||||
20 | would result in goals that represent less than 0.4 percentage | ||||||
21 | point annual increases in total cumulative persisting annual | ||||||
22 | savings. The Commission may only establish goals that | ||||||
23 | represent less than 0.4 percentage point annual increases in | ||||||
24 | cumulative persisting annual savings if it can demonstrate, | ||||||
25 | based on clear and convincing evidence and through independent | ||||||
26 | analysis, that 0.4 percentage point increases are not |
| |||||||
| |||||||
1 | cost-effectively achievable. The Commission shall inform its | ||||||
2 | decision based on an energy efficiency potential study that | ||||||
3 | conforms to the requirements of this Section. | ||||||
4 | (b-20) Each electric utility subject to this Section may | ||||||
5 | include cost-effective voltage optimization measures in its | ||||||
6 | plans submitted under subsections (f) and (g) of this Section, | ||||||
7 | and the costs incurred by a utility to implement the measures | ||||||
8 | under a Commission-approved plan shall be recovered under the | ||||||
9 | provisions of Article IX or Section 16-108.5 of this Act. For | ||||||
10 | purposes of this Section, the measure life of voltage | ||||||
11 | optimization measures shall be 15 years. The measure life | ||||||
12 | period is independent of the depreciation rate of the voltage | ||||||
13 | optimization assets deployed. Utilities may claim savings from | ||||||
14 | voltage optimization on circuits for more than 15 years if | ||||||
15 | they can demonstrate that they have made additional | ||||||
16 | investments necessary to enable voltage optimization savings | ||||||
17 | to continue beyond 15 years. Such demonstrations must be | ||||||
18 | subject to the review of independent evaluation. | ||||||
19 | Within 270 days after June 1, 2017 (the effective date of | ||||||
20 | Public Act 99-906), an electric utility that serves less than | ||||||
21 | 3,000,000 retail customers but more than 500,000 retail | ||||||
22 | customers in the State shall file a plan with the Commission | ||||||
23 | that identifies the cost-effective voltage optimization | ||||||
24 | investment the electric utility plans to undertake through | ||||||
25 | December 31, 2024. The Commission, after notice and hearing, | ||||||
26 | shall approve or approve with modification the plan within 120 |
| |||||||
| |||||||
1 | days after the plan's filing and, in the order approving or | ||||||
2 | approving with modification the plan, the Commission shall | ||||||
3 | adjust the applicable cumulative persisting annual savings | ||||||
4 | goals set forth in subsection (b-15) to reflect any amount of | ||||||
5 | cost-effective energy savings approved by the Commission that | ||||||
6 | is greater than or less than the following cumulative | ||||||
7 | persisting annual savings values attributable to voltage | ||||||
8 | optimization for the applicable year: | ||||||
9 | (1) 0.0% of cumulative persisting annual savings for | ||||||
10 | the year ending December 31, 2018; | ||||||
11 | (2) 0.17% of cumulative persisting annual savings for | ||||||
12 | the year ending December 31, 2019; | ||||||
13 | (3) 0.17% of cumulative persisting annual savings for | ||||||
14 | the year ending December 31, 2020; | ||||||
15 | (4) 0.33% of cumulative persisting annual savings for | ||||||
16 | the year ending December 31, 2021; | ||||||
17 | (5) 0.5% of cumulative persisting annual savings for | ||||||
18 | the year ending December 31, 2022; | ||||||
19 | (6) 0.67% of cumulative persisting annual savings for | ||||||
20 | the year ending December 31, 2023; | ||||||
21 | (7) 0.83% of cumulative persisting annual savings for | ||||||
22 | the year ending December 31, 2024; and | ||||||
23 | (8) 1.0% of cumulative persisting annual savings for | ||||||
24 | the year ending December 31, 2025 and all subsequent | ||||||
25 | years. | ||||||
26 | (b-25) In the event an electric utility jointly offers an |
| |||||||
| |||||||
1 | energy efficiency measure or program with a gas utility under | ||||||
2 | plans approved under this Section and Section 8-104 of this | ||||||
3 | Act, the electric utility may continue offering the program, | ||||||
4 | including the gas energy efficiency measures, in the event the | ||||||
5 | gas utility discontinues funding the program. In that event, | ||||||
6 | the energy savings value associated with such other fuels | ||||||
7 | shall be converted to electric energy savings on an equivalent | ||||||
8 | Btu basis for the premises. However, the electric utility | ||||||
9 | shall prioritize programs for low-income residential customers | ||||||
10 | to the extent practicable. An electric utility may recover the | ||||||
11 | costs of offering the gas energy efficiency measures under | ||||||
12 | this subsection (b-25). | ||||||
13 | For those energy efficiency measures or programs that save | ||||||
14 | both electricity and other fuels but are not jointly offered | ||||||
15 | with a gas utility under plans approved under this Section and | ||||||
16 | Section 8-104 or not offered with an affiliated gas utility | ||||||
17 | under paragraph (6) of subsection (f) of Section 8-104 of this | ||||||
18 | Act, the electric utility may count savings of fuels other | ||||||
19 | than electricity toward the achievement of its annual savings | ||||||
20 | goal, and the energy savings value associated with such other | ||||||
21 | fuels shall be converted to electric energy savings on an | ||||||
22 | equivalent Btu basis at the premises. | ||||||
23 | In no event shall more than 10% of each year's applicable | ||||||
24 | annual total savings requirement as defined in paragraph (7.5) | ||||||
25 | of subsection (g) of this Section be met through savings of | ||||||
26 | fuels other than electricity. |
| |||||||
| |||||||
1 | (b-27) Beginning in 2022, an electric utility may offer | ||||||
2 | and promote measures that electrify space heating, water | ||||||
3 | heating, cooling, drying, cooking, industrial processes, and | ||||||
4 | other building and industrial end uses that would otherwise be | ||||||
5 | served by combustion of fossil fuel at the premises, provided | ||||||
6 | that the electrification measures reduce total energy | ||||||
7 | consumption at the premises. The electric utility may count | ||||||
8 | the reduction in energy consumption at the premises toward | ||||||
9 | achievement of its annual savings goals. The reduction in | ||||||
10 | energy consumption at the premises shall be calculated as the | ||||||
11 | difference between: (A) the reduction in Btu consumption of | ||||||
12 | fossil fuels as a result of electrification, converted to | ||||||
13 | kilowatt-hour equivalents by dividing by 3,412 Btus per | ||||||
14 | kilowatt hour; and (B) the increase in kilowatt hours of | ||||||
15 | electricity consumption resulting from the displacement of | ||||||
16 | fossil fuel consumption as a result of electrification. An | ||||||
17 | electric utility may recover the costs of offering and | ||||||
18 | promoting electrification measures under this subsection | ||||||
19 | (b-27). | ||||||
20 | In no event shall electrification savings counted toward | ||||||
21 | each year's applicable annual total savings requirement, as | ||||||
22 | defined in paragraph (7.5) of subsection (g) of this Section, | ||||||
23 | be greater than: | ||||||
24 | (1) 5% per year for each year from 2022 through 2025; | ||||||
25 | (2) 10% per year for each year from 2026 through 2029; | ||||||
26 | and |
| |||||||
| |||||||
1 | (3) 15% per year for 2030 and all subsequent years. | ||||||
2 | In addition, a minimum of 25% of all electrification savings | ||||||
3 | counted toward a utility's applicable annual total savings | ||||||
4 | requirement must be from electrification of end uses in | ||||||
5 | low-income housing. The limitations on electrification savings | ||||||
6 | that may be counted toward a utility's annual savings goals | ||||||
7 | are separate from and in addition to the subsection (b-25) | ||||||
8 | limitations governing the counting of the other fuel savings | ||||||
9 | resulting from efficiency measures and programs. | ||||||
10 | As part of the annual informational filing to the | ||||||
11 | Commission that is required under paragraph (9) of subsection | ||||||
12 | (g) of this Section, each utility shall identify the specific | ||||||
13 | electrification measures offered under this subsection (b-27); | ||||||
14 | the quantity of each electrification measure that was | ||||||
15 | installed by its customers; the average total cost, average | ||||||
16 | utility cost, average reduction in fossil fuel consumption, | ||||||
17 | and average increase in electricity consumption associated | ||||||
18 | with each electrification measure; the portion of | ||||||
19 | installations of each electrification measure that were in | ||||||
20 | low-income single-family housing, low-income multifamily | ||||||
21 | housing, non-low-income single-family housing, non-low-income | ||||||
22 | multifamily housing, commercial buildings, and industrial | ||||||
23 | facilities; and the quantity of savings associated with each | ||||||
24 | measure category in each customer category that are being | ||||||
25 | counted toward the utility's applicable annual total savings | ||||||
26 | requirement. Prior to installing an electrification measure, |
| |||||||
| |||||||
1 | the utility shall provide a customer with an estimate of the | ||||||
2 | impact of the new measure on the customer's average monthly | ||||||
3 | electric bill and total annual energy expenses. | ||||||
4 | (c) Electric utilities shall be responsible for overseeing | ||||||
5 | the design, development, and filing of energy efficiency plans | ||||||
6 | with the Commission and may, as part of that implementation, | ||||||
7 | outsource various aspects of program development and | ||||||
8 | implementation. A minimum of 10%, for electric utilities that | ||||||
9 | serve more than 3,000,000 retail customers in the State, and a | ||||||
10 | minimum of 7%, for electric utilities that serve less than | ||||||
11 | 3,000,000 retail customers but more than 500,000 retail | ||||||
12 | customers in the State, of the utility's entire portfolio | ||||||
13 | funding level for a given year shall be used to procure | ||||||
14 | cost-effective energy efficiency measures from units of local | ||||||
15 | government, municipal corporations, school districts, public | ||||||
16 | housing, public institutions of higher education, and | ||||||
17 | community college districts, provided that a minimum | ||||||
18 | percentage of available funds shall be used to procure energy | ||||||
19 | efficiency from public housing, which percentage shall be | ||||||
20 | equal to public housing's share of public building energy | ||||||
21 | consumption. | ||||||
22 | The utilities shall also implement energy efficiency | ||||||
23 | measures targeted at low-income households, which, for | ||||||
24 | purposes of this Section, shall be defined as households at or | ||||||
25 | below 80% of area median income, and expenditures to implement | ||||||
26 | the measures shall be no less than $40,000,000 per year for |
| |||||||
| |||||||
1 | electric utilities that serve more than 3,000,000 retail | ||||||
2 | customers in the State and no less than $13,000,000 per year | ||||||
3 | for electric utilities that serve less than 3,000,000 retail | ||||||
4 | customers but more than 500,000 retail customers in the State. | ||||||
5 | The ratio of spending on efficiency programs targeted at | ||||||
6 | low-income multifamily buildings to spending on efficiency | ||||||
7 | programs targeted at low-income single-family buildings shall | ||||||
8 | be designed to achieve levels of savings from each building | ||||||
9 | type that are approximately proportional to the magnitude of | ||||||
10 | cost-effective lifetime savings potential in each building | ||||||
11 | type. Investment in low-income whole-building weatherization | ||||||
12 | programs shall constitute a minimum of 80% of a utility's | ||||||
13 | total budget specifically dedicated to serving low-income | ||||||
14 | customers. | ||||||
15 | The utilities shall work to bundle low-income energy | ||||||
16 | efficiency offerings with other programs that serve low-income | ||||||
17 | households to maximize the benefits going to these households. | ||||||
18 | The utilities shall market and implement low-income energy | ||||||
19 | efficiency programs in coordination with low-income assistance | ||||||
20 | programs, the Illinois Solar for All Program, and | ||||||
21 | weatherization whenever practicable. The program implementer | ||||||
22 | shall walk the customer through the enrollment process for any | ||||||
23 | programs for which the customer is eligible. The utilities | ||||||
24 | shall also pilot targeting customers with high arrearages, | ||||||
25 | high energy intensity (ratio of energy usage divided by home | ||||||
26 | or unit square footage), or energy assistance programs with |
| |||||||
| |||||||
1 | energy efficiency offerings, and then track reduction in | ||||||
2 | arrearages as a result of the targeting. This targeting and | ||||||
3 | bundling of low-income energy programs shall be offered to | ||||||
4 | both low-income single-family and multifamily customers | ||||||
5 | (owners and residents). | ||||||
6 | The utilities shall invest in health and safety measures | ||||||
7 | appropriate and necessary for comprehensively weatherizing a | ||||||
8 | home or multifamily building, and shall implement a health and | ||||||
9 | safety fund of at least 15% of the total income-qualified | ||||||
10 | weatherization budget that shall be used for the purpose of | ||||||
11 | making grants for technical assistance, construction, | ||||||
12 | reconstruction, improvement, or repair of buildings to | ||||||
13 | facilitate their participation in the energy efficiency | ||||||
14 | programs targeted at low-income single-family and multifamily | ||||||
15 | households. These funds may also be used for the purpose of | ||||||
16 | making grants for technical assistance, construction, | ||||||
17 | reconstruction, improvement, or repair of the following | ||||||
18 | buildings to facilitate their participation in the energy | ||||||
19 | efficiency programs created by this Section: (1) buildings | ||||||
20 | that are owned or operated by registered 501(c)(3) public | ||||||
21 | charities; and (2) day care centers, day care homes, or group | ||||||
22 | day care homes, as defined under 89 Ill. Adm. Code Part 406, | ||||||
23 | 407, or 408, respectively. | ||||||
24 | Each electric utility shall assess opportunities to | ||||||
25 | implement cost-effective energy efficiency measures and | ||||||
26 | programs through a public housing authority or authorities |
| |||||||
| |||||||
1 | located in its service territory. If such opportunities are | ||||||
2 | identified, the utility shall propose such measures and | ||||||
3 | programs to address the opportunities. Expenditures to address | ||||||
4 | such opportunities shall be credited toward the minimum | ||||||
5 | procurement and expenditure requirements set forth in this | ||||||
6 | subsection (c). | ||||||
7 | Implementation of energy efficiency measures and programs | ||||||
8 | targeted at low-income households should be contracted, when | ||||||
9 | it is practicable, to independent third parties that have | ||||||
10 | demonstrated capabilities to serve such households, with a | ||||||
11 | preference for not-for-profit entities and government agencies | ||||||
12 | that have existing relationships with or experience serving | ||||||
13 | low-income communities in the State. | ||||||
14 | Each electric utility shall develop and implement | ||||||
15 | reporting procedures that address and assist in determining | ||||||
16 | the amount of energy savings that can be applied to the | ||||||
17 | low-income procurement and expenditure requirements set forth | ||||||
18 | in this subsection (c). Each electric utility shall also track | ||||||
19 | the types and quantities or volumes of insulation and air | ||||||
20 | sealing materials, and their associated energy saving | ||||||
21 | benefits, installed in energy efficiency programs targeted at | ||||||
22 | low-income single-family and multifamily households. | ||||||
23 | The electric utilities shall participate in a low-income | ||||||
24 | energy efficiency accountability committee ("the committee"), | ||||||
25 | which will directly inform the design, implementation, and | ||||||
26 | evaluation of the low-income and public-housing energy |
| |||||||
| |||||||
1 | efficiency programs. The committee shall be comprised of the | ||||||
2 | electric utilities subject to the requirements of this | ||||||
3 | Section, the gas utilities subject to the requirements of | ||||||
4 | Section 8-104 of this Act, the utilities' low-income energy | ||||||
5 | efficiency implementation contractors, nonprofit | ||||||
6 | organizations, community action agencies, advocacy groups, | ||||||
7 | State and local governmental agencies, public-housing | ||||||
8 | organizations, and representatives of community-based | ||||||
9 | organizations, especially those living in or working with | ||||||
10 | environmental justice communities and BIPOC communities. The | ||||||
11 | committee shall be composed of 2 geographically differentiated | ||||||
12 | subcommittees: one for stakeholders in northern Illinois and | ||||||
13 | one for stakeholders in central and southern Illinois. The | ||||||
14 | subcommittees shall meet together at least twice per year. | ||||||
15 | There shall be one statewide leadership committee led by | ||||||
16 | and composed of community-based organizations that are | ||||||
17 | representative of BIPOC and environmental justice communities | ||||||
18 | and that includes equitable representation from BIPOC | ||||||
19 | communities. The leadership committee shall be composed of an | ||||||
20 | equal number of representatives from the 2 subcommittees. The | ||||||
21 | subcommittees shall address specific programs and issues, with | ||||||
22 | the leadership committee convening targeted workgroups as | ||||||
23 | needed. The leadership committee may elect to work with an | ||||||
24 | independent facilitator to solicit and organize feedback, | ||||||
25 | recommendations and meeting participation from a wide variety | ||||||
26 | of community-based stakeholders. If a facilitator is used, |
| |||||||
| |||||||
1 | they shall be fair and responsive to the needs of all | ||||||
2 | stakeholders involved in the committee. | ||||||
3 | All committee meetings must be accessible, with rotating | ||||||
4 | locations if meetings are held in-person, virtual | ||||||
5 | participation options, and materials and agendas circulated in | ||||||
6 | advance. | ||||||
7 | There shall also be opportunities for direct input by | ||||||
8 | committee members outside of committee meetings, such as via | ||||||
9 | individual meetings, surveys, emails and calls, to ensure | ||||||
10 | robust participation by stakeholders with limited capacity and | ||||||
11 | ability to attend committee meetings. Committee meetings shall | ||||||
12 | emphasize opportunities to bundle and coordinate delivery of | ||||||
13 | low-income energy efficiency with other programs that serve | ||||||
14 | low-income communities, such as the Illinois Solar for All | ||||||
15 | Program and bill payment assistance programs. Meetings shall | ||||||
16 | include educational opportunities for stakeholders to learn | ||||||
17 | more about these additional offerings, and the committee shall | ||||||
18 | assist in figuring out the best methods for coordinated | ||||||
19 | delivery and implementation of offerings when serving | ||||||
20 | low-income communities. The committee shall directly and | ||||||
21 | equitably influence and inform utility low-income and | ||||||
22 | public-housing energy efficiency programs and priorities. | ||||||
23 | Participating utilities shall implement recommendations from | ||||||
24 | the committee whenever possible. | ||||||
25 | Participating utilities shall track and report how input | ||||||
26 | from the committee has led to new approaches and changes in |
| |||||||
| |||||||
1 | their energy efficiency portfolios. This reporting shall occur | ||||||
2 | at committee meetings and in quarterly energy efficiency | ||||||
3 | reports to the Stakeholder Advisory Group and Illinois | ||||||
4 | Commerce Commission, and other relevant reporting mechanisms. | ||||||
5 | Participating utilities shall also report on relevant equity | ||||||
6 | data and metrics requested by the committee, such as energy | ||||||
7 | burden data, geographic, racial, and other relevant | ||||||
8 | demographic data on where programs are being delivered and | ||||||
9 | what populations programs are serving. | ||||||
10 | The Illinois Commerce Commission shall oversee and have | ||||||
11 | relevant staff participate in the committee. The committee | ||||||
12 | shall have a budget of 0.25% of each utility's entire | ||||||
13 | efficiency portfolio funding for a given year. The budget | ||||||
14 | shall be overseen by the Commission. The budget shall be used | ||||||
15 | to provide grants for community-based organizations serving on | ||||||
16 | the leadership committee, stipends for community-based | ||||||
17 | organizations participating in the committee, grants for | ||||||
18 | community-based organizations to do energy efficiency outreach | ||||||
19 | and education, and relevant meeting needs as determined by the | ||||||
20 | leadership committee. The education and outreach shall | ||||||
21 | include, but is not limited to, basic energy efficiency | ||||||
22 | education, information about low-income energy efficiency | ||||||
23 | programs, and information on the committee's purpose, | ||||||
24 | structure, and activities. | ||||||
25 | (d) Notwithstanding any other provision of law to the | ||||||
26 | contrary, a utility providing approved energy efficiency |
| |||||||
| |||||||
1 | measures and, if applicable, demand-response measures in the | ||||||
2 | State shall be permitted to recover all reasonable and | ||||||
3 | prudently incurred costs of those measures from all retail | ||||||
4 | customers, except as provided in subsection (l) of this | ||||||
5 | Section, as follows, provided that nothing in this subsection | ||||||
6 | (d) permits the double recovery of such costs from customers: | ||||||
7 | (1) The utility may recover its costs through an | ||||||
8 | automatic adjustment clause tariff filed with and approved | ||||||
9 | by the Commission. The tariff shall be established outside | ||||||
10 | the context of a general rate case. Each year the | ||||||
11 | Commission shall initiate a review to reconcile any | ||||||
12 | amounts collected with the actual costs and to determine | ||||||
13 | the required adjustment to the annual tariff factor to | ||||||
14 | match annual expenditures. To enable the financing of the | ||||||
15 | incremental capital expenditures, including regulatory | ||||||
16 | assets, for electric utilities that serve less than | ||||||
17 | 3,000,000 retail customers but more than 500,000 retail | ||||||
18 | customers in the State, the utility's actual year-end | ||||||
19 | capital structure that includes a common equity ratio, | ||||||
20 | excluding goodwill, of up to and including 50% of the | ||||||
21 | total capital structure shall be deemed reasonable and | ||||||
22 | used to set rates. | ||||||
23 | (2) A utility may recover its costs through an energy | ||||||
24 | efficiency formula rate approved by the Commission under a | ||||||
25 | filing under subsections (f) and (g) of this Section, | ||||||
26 | which shall specify the cost components that form the |
| |||||||
| |||||||
1 | basis of the rate charged to customers with sufficient | ||||||
2 | specificity to operate in a standardized manner and be | ||||||
3 | updated annually with transparent information that | ||||||
4 | reflects the utility's actual costs to be recovered during | ||||||
5 | the applicable rate year, which is the period beginning | ||||||
6 | with the first billing day of January and extending | ||||||
7 | through the last billing day of the following December. | ||||||
8 | The energy efficiency formula rate shall be implemented | ||||||
9 | through a tariff filed with the Commission under | ||||||
10 | subsections (f) and (g) of this Section that is consistent | ||||||
11 | with the provisions of this paragraph (2) and that shall | ||||||
12 | be applicable to all delivery services customers. The | ||||||
13 | Commission shall conduct an investigation of the tariff in | ||||||
14 | a manner consistent with the provisions of this paragraph | ||||||
15 | (2), subsections (f) and (g) of this Section, and the | ||||||
16 | provisions of Article IX of this Act to the extent they do | ||||||
17 | not conflict with this paragraph (2). The energy | ||||||
18 | efficiency formula rate approved by the Commission shall | ||||||
19 | remain in effect at the discretion of the utility and | ||||||
20 | shall do the following: | ||||||
21 | (A) Provide for the recovery of the utility's | ||||||
22 | actual costs incurred under this Section that are | ||||||
23 | prudently incurred and reasonable in amount consistent | ||||||
24 | with Commission practice and law. The sole fact that a | ||||||
25 | cost differs from that incurred in a prior calendar | ||||||
26 | year or that an investment is different from that made |
| |||||||
| |||||||
1 | in a prior calendar year shall not imply the | ||||||
2 | imprudence or unreasonableness of that cost or | ||||||
3 | investment. | ||||||
4 | (B) Reflect the utility's actual year-end capital | ||||||
5 | structure for the applicable calendar year, excluding | ||||||
6 | goodwill, subject to a determination of prudence and | ||||||
7 | reasonableness consistent with Commission practice and | ||||||
8 | law. To enable the financing of the incremental | ||||||
9 | capital expenditures, including regulatory assets, for | ||||||
10 | electric utilities that serve less than 3,000,000 | ||||||
11 | retail customers but more than 500,000 retail | ||||||
12 | customers in the State, a participating electric | ||||||
13 | utility's actual year-end capital structure that | ||||||
14 | includes a common equity ratio, excluding goodwill, of | ||||||
15 | up to and including 50% of the total capital structure | ||||||
16 | shall be deemed reasonable and used to set rates. | ||||||
17 | (C) Include a cost of equity, which shall be | ||||||
18 | calculated as the sum of the following: | ||||||
19 | (i) the average for the applicable calendar | ||||||
20 | year of the monthly average yields of 30-year U.S. | ||||||
21 | Treasury bonds published by the Board of Governors | ||||||
22 | of the Federal Reserve System in its weekly H.15 | ||||||
23 | Statistical Release or successor publication; and | ||||||
24 | (ii) 580 basis points. | ||||||
25 | At such time as the Board of Governors of the | ||||||
26 | Federal Reserve System ceases to include the monthly |
| |||||||
| |||||||
1 | average yields of 30-year U.S. Treasury bonds in its | ||||||
2 | weekly H.15 Statistical Release or successor | ||||||
3 | publication, the monthly average yields of the U.S. | ||||||
4 | Treasury bonds then having the longest duration | ||||||
5 | published by the Board of Governors in its weekly H.15 | ||||||
6 | Statistical Release or successor publication shall | ||||||
7 | instead be used for purposes of this paragraph (2). | ||||||
8 | (D) Permit and set forth protocols, subject to a | ||||||
9 | determination of prudence and reasonableness | ||||||
10 | consistent with Commission practice and law, for the | ||||||
11 | following: | ||||||
12 | (i) recovery of incentive compensation expense | ||||||
13 | that is based on the achievement of operational | ||||||
14 | metrics, including metrics related to budget | ||||||
15 | controls, outage duration and frequency, safety, | ||||||
16 | customer service, efficiency and productivity, and | ||||||
17 | environmental compliance; however, this protocol | ||||||
18 | shall not apply if such expense related to costs | ||||||
19 | incurred under this Section is recovered under | ||||||
20 | Article IX or Section 16-108.5 of this Act; | ||||||
21 | incentive compensation expense that is based on | ||||||
22 | net income or an affiliate's earnings per share | ||||||
23 | shall not be recoverable under the energy | ||||||
24 | efficiency formula rate; | ||||||
25 | (ii) recovery of pension and other | ||||||
26 | post-employment benefits expense, provided that |
| |||||||
| |||||||
1 | such costs are supported by an actuarial study; | ||||||
2 | however, this protocol shall not apply if such | ||||||
3 | expense related to costs incurred under this | ||||||
4 | Section is recovered under Article IX or Section | ||||||
5 | 16-108.5 of this Act; | ||||||
6 | (iii) recovery of existing regulatory assets | ||||||
7 | over the periods previously authorized by the | ||||||
8 | Commission; | ||||||
9 | (iv) as described in subsection (e), | ||||||
10 | amortization of costs incurred under this Section; | ||||||
11 | and | ||||||
12 | (v) projected, weather normalized billing | ||||||
13 | determinants for the applicable rate year. | ||||||
14 | (E) Provide for an annual reconciliation, as | ||||||
15 | described in paragraph (3) of this subsection (d), | ||||||
16 | less any deferred taxes related to the reconciliation, | ||||||
17 | with interest at an annual rate of return equal to the | ||||||
18 | utility's weighted average cost of capital, including | ||||||
19 | a revenue conversion factor calculated to recover or | ||||||
20 | refund all additional income taxes that may be payable | ||||||
21 | or receivable as a result of that return, of the energy | ||||||
22 | efficiency revenue requirement reflected in rates for | ||||||
23 | each calendar year, beginning with the calendar year | ||||||
24 | in which the utility files its energy efficiency | ||||||
25 | formula rate tariff under this paragraph (2), with | ||||||
26 | what the revenue requirement would have been had the |
| |||||||
| |||||||
1 | actual cost information for the applicable calendar | ||||||
2 | year been available at the filing date. | ||||||
3 | The utility shall file, together with its tariff, the | ||||||
4 | projected costs to be incurred by the utility during the | ||||||
5 | rate year under the utility's multi-year plan approved | ||||||
6 | under subsections (f) and (g) of this Section, including, | ||||||
7 | but not limited to, the projected capital investment costs | ||||||
8 | and projected regulatory asset balances with | ||||||
9 | correspondingly updated depreciation and amortization | ||||||
10 | reserves and expense, that shall populate the energy | ||||||
11 | efficiency formula rate and set the initial rates under | ||||||
12 | the formula. | ||||||
13 | The Commission shall review the proposed tariff in | ||||||
14 | conjunction with its review of a proposed multi-year plan, | ||||||
15 | as specified in paragraph (5) of subsection (g) of this | ||||||
16 | Section. The review shall be based on the same evidentiary | ||||||
17 | standards, including, but not limited to, those concerning | ||||||
18 | the prudence and reasonableness of the costs incurred by | ||||||
19 | the utility, the Commission applies in a hearing to review | ||||||
20 | a filing for a general increase in rates under Article IX | ||||||
21 | of this Act. The initial rates shall take effect beginning | ||||||
22 | with the January monthly billing period following the | ||||||
23 | Commission's approval. | ||||||
24 | The tariff's rate design and cost allocation across | ||||||
25 | customer classes shall be consistent with the utility's | ||||||
26 | automatic adjustment clause tariff in effect on June 1, |
| |||||||
| |||||||
1 | 2017 (the effective date of Public Act 99-906); however, | ||||||
2 | the Commission may revise the tariff's rate design and | ||||||
3 | cost allocation in subsequent proceedings under paragraph | ||||||
4 | (3) of this subsection (d). | ||||||
5 | If the energy efficiency formula rate is terminated, | ||||||
6 | the then current rates shall remain in effect until such | ||||||
7 | time as the energy efficiency costs are incorporated into | ||||||
8 | new rates that are set under this subsection (d) or | ||||||
9 | Article IX of this Act, subject to retroactive rate | ||||||
10 | adjustment, with interest, to reconcile rates charged with | ||||||
11 | actual costs. | ||||||
12 | (3) The provisions of this paragraph (3) shall only | ||||||
13 | apply to an electric utility that has elected to file an | ||||||
14 | energy efficiency formula rate under paragraph (2) of this | ||||||
15 | subsection (d). Subsequent to the Commission's issuance of | ||||||
16 | an order approving the utility's energy efficiency formula | ||||||
17 | rate structure and protocols, and initial rates under | ||||||
18 | paragraph (2) of this subsection (d), the utility shall | ||||||
19 | file, on or before June 1 of each year, with the Chief | ||||||
20 | Clerk of the Commission its updated cost inputs to the | ||||||
21 | energy efficiency formula rate for the applicable rate | ||||||
22 | year and the corresponding new charges, as well as the | ||||||
23 | information described in paragraph (9) of subsection (g) | ||||||
24 | of this Section. Each such filing shall conform to the | ||||||
25 | following requirements and include the following | ||||||
26 | information: |
| |||||||
| |||||||
1 | (A) The inputs to the energy efficiency formula | ||||||
2 | rate for the applicable rate year shall be based on the | ||||||
3 | projected costs to be incurred by the utility during | ||||||
4 | the rate year under the utility's multi-year plan | ||||||
5 | approved under subsections (f) and (g) of this | ||||||
6 | Section, including, but not limited to, projected | ||||||
7 | capital investment costs and projected regulatory | ||||||
8 | asset balances with correspondingly updated | ||||||
9 | depreciation and amortization reserves and expense. | ||||||
10 | The filing shall also include a reconciliation of the | ||||||
11 | energy efficiency revenue requirement that was in | ||||||
12 | effect for the prior rate year (as set by the cost | ||||||
13 | inputs for the prior rate year) with the actual | ||||||
14 | revenue requirement for the prior rate year | ||||||
15 | (determined using a year-end rate base) that uses | ||||||
16 | amounts reflected in the applicable FERC Form 1 that | ||||||
17 | reports the actual costs for the prior rate year. Any | ||||||
18 | over-collection or under-collection indicated by such | ||||||
19 | reconciliation shall be reflected as a credit against, | ||||||
20 | or recovered as an additional charge to, respectively, | ||||||
21 | with interest calculated at a rate equal to the | ||||||
22 | utility's weighted average cost of capital approved by | ||||||
23 | the Commission for the prior rate year, the charges | ||||||
24 | for the applicable rate year. Such over-collection or | ||||||
25 | under-collection shall be adjusted to remove any | ||||||
26 | deferred taxes related to the reconciliation, for |
| |||||||
| |||||||
1 | purposes of calculating interest at an annual rate of | ||||||
2 | return equal to the utility's weighted average cost of | ||||||
3 | capital approved by the Commission for the prior rate | ||||||
4 | year, including a revenue conversion factor calculated | ||||||
5 | to recover or refund all additional income taxes that | ||||||
6 | may be payable or receivable as a result of that | ||||||
7 | return. Each reconciliation shall be certified by the | ||||||
8 | participating utility in the same manner that FERC | ||||||
9 | Form 1 is certified. The filing shall also include the | ||||||
10 | charge or credit, if any, resulting from the | ||||||
11 | calculation required by subparagraph (E) of paragraph | ||||||
12 | (2) of this subsection (d). | ||||||
13 | Notwithstanding any other provision of law to the | ||||||
14 | contrary, the intent of the reconciliation is to | ||||||
15 | ultimately reconcile both the revenue requirement | ||||||
16 | reflected in rates for each calendar year, beginning | ||||||
17 | with the calendar year in which the utility files its | ||||||
18 | energy efficiency formula rate tariff under paragraph | ||||||
19 | (2) of this subsection (d), with what the revenue | ||||||
20 | requirement determined using a year-end rate base for | ||||||
21 | the applicable calendar year would have been had the | ||||||
22 | actual cost information for the applicable calendar | ||||||
23 | year been available at the filing date. | ||||||
24 | For purposes of this Section, "FERC Form 1" means | ||||||
25 | the Annual Report of Major Electric Utilities, | ||||||
26 | Licensees and Others that electric utilities are |
| |||||||
| |||||||
1 | required to file with the Federal Energy Regulatory | ||||||
2 | Commission under the Federal Power Act, Sections 3, | ||||||
3 | 4(a), 304 and 209, modified as necessary to be | ||||||
4 | consistent with 83 Ill. Adm. Code Part 415 as of May 1, | ||||||
5 | 2011. Nothing in this Section is intended to allow | ||||||
6 | costs that are not otherwise recoverable to be | ||||||
7 | recoverable by virtue of inclusion in FERC Form 1. | ||||||
8 | (B) The new charges shall take effect beginning on | ||||||
9 | the first billing day of the following January billing | ||||||
10 | period and remain in effect through the last billing | ||||||
11 | day of the next December billing period regardless of | ||||||
12 | whether the Commission enters upon a hearing under | ||||||
13 | this paragraph (3). | ||||||
14 | (C) The filing shall include relevant and | ||||||
15 | necessary data and documentation for the applicable | ||||||
16 | rate year. Normalization adjustments shall not be | ||||||
17 | required. | ||||||
18 | Within 45 days after the utility files its annual | ||||||
19 | update of cost inputs to the energy efficiency formula | ||||||
20 | rate, the Commission shall with reasonable notice, | ||||||
21 | initiate a proceeding concerning whether the projected | ||||||
22 | costs to be incurred by the utility and recovered during | ||||||
23 | the applicable rate year, and that are reflected in the | ||||||
24 | inputs to the energy efficiency formula rate, are | ||||||
25 | consistent with the utility's approved multi-year plan | ||||||
26 | under subsections (f) and (g) of this Section and whether |
| |||||||
| |||||||
1 | the costs incurred by the utility during the prior rate | ||||||
2 | year were prudent and reasonable. The Commission shall | ||||||
3 | also have the authority to investigate the information and | ||||||
4 | data described in paragraph (9) of subsection (g) of this | ||||||
5 | Section, including the proposed adjustment to the | ||||||
6 | utility's return on equity component of its weighted | ||||||
7 | average cost of capital. During the course of the | ||||||
8 | proceeding, each objection shall be stated with | ||||||
9 | particularity and evidence provided in support thereof, | ||||||
10 | after which the utility shall have the opportunity to | ||||||
11 | rebut the evidence. Discovery shall be allowed consistent | ||||||
12 | with the Commission's Rules of Practice, which Rules of | ||||||
13 | Practice shall be enforced by the Commission or the | ||||||
14 | assigned administrative law judge. The Commission shall | ||||||
15 | apply the same evidentiary standards, including, but not | ||||||
16 | limited to, those concerning the prudence and | ||||||
17 | reasonableness of the costs incurred by the utility, | ||||||
18 | during the proceeding as it would apply in a proceeding to | ||||||
19 | review a filing for a general increase in rates under | ||||||
20 | Article IX of this Act. The Commission shall not, however, | ||||||
21 | have the authority in a proceeding under this paragraph | ||||||
22 | (3) to consider or order any changes to the structure or | ||||||
23 | protocols of the energy efficiency formula rate approved | ||||||
24 | under paragraph (2) of this subsection (d). In a | ||||||
25 | proceeding under this paragraph (3), the Commission shall | ||||||
26 | enter its order no later than the earlier of 195 days after |
| |||||||
| |||||||
1 | the utility's filing of its annual update of cost inputs | ||||||
2 | to the energy efficiency formula rate or December 15. The | ||||||
3 | utility's proposed return on equity calculation, as | ||||||
4 | described in paragraphs (7) through (9) of subsection (g) | ||||||
5 | of this Section, shall be deemed the final, approved | ||||||
6 | calculation on December 15 of the year in which it is filed | ||||||
7 | unless the Commission enters an order on or before | ||||||
8 | December 15, after notice and hearing, that modifies such | ||||||
9 | calculation consistent with this Section. The Commission's | ||||||
10 | determinations of the prudence and reasonableness of the | ||||||
11 | costs incurred, and determination of such return on equity | ||||||
12 | calculation, for the applicable calendar year shall be | ||||||
13 | final upon entry of the Commission's order and shall not | ||||||
14 | be subject to reopening, reexamination, or collateral | ||||||
15 | attack in any other Commission proceeding, case, docket, | ||||||
16 | order, rule, or regulation; however, nothing in this | ||||||
17 | paragraph (3) shall prohibit a party from petitioning the | ||||||
18 | Commission to rehear or appeal to the courts the order | ||||||
19 | under the provisions of this Act. | ||||||
20 | (e) Beginning on June 1, 2017 (the effective date of | ||||||
21 | Public Act 99-906), a utility subject to the requirements of | ||||||
22 | this Section may elect to defer, as a regulatory asset, up to | ||||||
23 | the full amount of its expenditures incurred under this | ||||||
24 | Section for each annual period, including, but not limited to, | ||||||
25 | any expenditures incurred above the funding level set by | ||||||
26 | subsection (f) of this Section for a given year. The total |
| |||||||
| |||||||
1 | expenditures deferred as a regulatory asset in a given year | ||||||
2 | shall be amortized and recovered over a period that is equal to | ||||||
3 | the weighted average of the energy efficiency measure lives | ||||||
4 | implemented for that year that are reflected in the regulatory | ||||||
5 | asset. The unamortized balance shall be recognized as of | ||||||
6 | December 31 for a given year. The utility shall also earn a | ||||||
7 | return on the total of the unamortized balances of all of the | ||||||
8 | energy efficiency regulatory assets, less any deferred taxes | ||||||
9 | related to those unamortized balances, at an annual rate equal | ||||||
10 | to the utility's weighted average cost of capital that | ||||||
11 | includes, based on a year-end capital structure, the utility's | ||||||
12 | actual cost of debt for the applicable calendar year and a cost | ||||||
13 | of equity, which shall be calculated as the sum of the (i) the | ||||||
14 | average for the applicable calendar year of the monthly | ||||||
15 | average yields of 30-year U.S. Treasury bonds published by the | ||||||
16 | Board of Governors of the Federal Reserve System in its weekly | ||||||
17 | H.15 Statistical Release or successor publication; and (ii) | ||||||
18 | 580 basis points, including a revenue conversion factor | ||||||
19 | calculated to recover or refund all additional income taxes | ||||||
20 | that may be payable or receivable as a result of that return. | ||||||
21 | Capital investment costs shall be depreciated and recovered | ||||||
22 | over their useful lives consistent with generally accepted | ||||||
23 | accounting principles. The weighted average cost of capital | ||||||
24 | shall be applied to the capital investment cost balance, less | ||||||
25 | any accumulated depreciation and accumulated deferred income | ||||||
26 | taxes, as of December 31 for a given year. |
| |||||||
| |||||||
1 | When an electric utility creates a regulatory asset under | ||||||
2 | the provisions of this Section, the costs are recovered over a | ||||||
3 | period during which customers also receive a benefit which is | ||||||
4 | in the public interest. Accordingly, it is the intent of the | ||||||
5 | General Assembly that an electric utility that elects to | ||||||
6 | create a regulatory asset under the provisions of this Section | ||||||
7 | shall recover all of the associated costs as set forth in this | ||||||
8 | Section. After the Commission has approved the prudence and | ||||||
9 | reasonableness of the costs that comprise the regulatory | ||||||
10 | asset, the electric utility shall be permitted to recover all | ||||||
11 | such costs, and the value and recoverability through rates of | ||||||
12 | the associated regulatory asset shall not be limited, altered, | ||||||
13 | impaired, or reduced. | ||||||
14 | (f) Beginning in 2017, each electric utility shall file an | ||||||
15 | energy efficiency plan with the Commission to meet the energy | ||||||
16 | efficiency standards for the next applicable multi-year period | ||||||
17 | beginning January 1 of the year following the filing, | ||||||
18 | according to the schedule set forth in paragraphs (1) through | ||||||
19 | (3) of this subsection (f). If a utility does not file such a | ||||||
20 | plan on or before the applicable filing deadline for the plan, | ||||||
21 | it shall face a penalty of $100,000 per day until the plan is | ||||||
22 | filed. | ||||||
23 | (1) No later than 30 days after June 1, 2017 (the | ||||||
24 | effective date of Public Act 99-906), each electric | ||||||
25 | utility shall file a 4-year energy efficiency plan | ||||||
26 | commencing on January 1, 2018 that is designed to achieve |
| |||||||
| |||||||
1 | the cumulative persisting annual savings goals specified | ||||||
2 | in paragraphs (1) through (4) of subsection (b-5) of this | ||||||
3 | Section or in paragraphs (1) through (4) of subsection | ||||||
4 | (b-15) of this Section, as applicable, through | ||||||
5 | implementation of energy efficiency measures; however, the | ||||||
6 | goals may be reduced if the utility's expenditures are | ||||||
7 | limited pursuant to subsection (m) of this Section or, for | ||||||
8 | a utility that serves less than 3,000,000 retail | ||||||
9 | customers, if each of the following conditions are met: | ||||||
10 | (A) the plan's analysis and forecasts of the utility's | ||||||
11 | ability to acquire energy savings demonstrate that | ||||||
12 | achievement of such goals is not cost effective; and (B) | ||||||
13 | the amount of energy savings achieved by the utility as | ||||||
14 | determined by the independent evaluator for the most | ||||||
15 | recent year for which savings have been evaluated | ||||||
16 | preceding the plan filing was less than the average annual | ||||||
17 | amount of savings required to achieve the goals for the | ||||||
18 | applicable 4-year plan period. Except as provided in | ||||||
19 | subsection (m) of this Section, annual increases in | ||||||
20 | cumulative persisting annual savings goals during the | ||||||
21 | applicable 4-year plan period shall not be reduced to | ||||||
22 | amounts that are less than the maximum amount of | ||||||
23 | cumulative persisting annual savings that is forecast to | ||||||
24 | be cost-effectively achievable during the 4-year plan | ||||||
25 | period. The Commission shall review any proposed goal | ||||||
26 | reduction as part of its review and approval of the |
| |||||||
| |||||||
1 | utility's proposed plan. | ||||||
2 | (2) No later than March 1, 2021, each electric utility | ||||||
3 | shall file a 4-year energy efficiency plan commencing on | ||||||
4 | January 1, 2022 that is designed to achieve the cumulative | ||||||
5 | persisting annual savings goals specified in paragraphs | ||||||
6 | (5) through (8) of subsection (b-5) of this Section or in | ||||||
7 | paragraphs (5) through (8) of subsection (b-15) of this | ||||||
8 | Section, as applicable, through implementation of energy | ||||||
9 | efficiency measures; however, the goals may be reduced if | ||||||
10 | either (1) clear and convincing evidence demonstrates, | ||||||
11 | through independent analysis, that the expenditure limits | ||||||
12 | in subsection (m) of this Section preclude full | ||||||
13 | achievement of the goals or (2) each of the following | ||||||
14 | conditions are met: (A) the plan's analysis and forecasts | ||||||
15 | of the utility's ability to acquire energy savings | ||||||
16 | demonstrate by clear and convincing evidence and through | ||||||
17 | independent analysis that achievement of such goals is not | ||||||
18 | cost effective; and (B) the amount of energy savings | ||||||
19 | achieved by the utility as determined by the independent | ||||||
20 | evaluator for the most recent year for which savings have | ||||||
21 | been evaluated preceding the plan filing was less than the | ||||||
22 | average annual amount of savings required to achieve the | ||||||
23 | goals for the applicable 4-year plan period. If there is | ||||||
24 | not clear and convincing evidence that achieving the | ||||||
25 | savings goals specified in paragraph (b-5) or (b-15) of | ||||||
26 | this Section is possible both cost-effectively and within |
| |||||||
| |||||||
1 | the expenditure limits in subsection (m), such savings | ||||||
2 | goals shall not be reduced. Except as provided in | ||||||
3 | subsection (m) of this Section, annual increases in | ||||||
4 | cumulative persisting annual savings goals during the | ||||||
5 | applicable 4-year plan period shall not be reduced to | ||||||
6 | amounts that are less than the maximum amount of | ||||||
7 | cumulative persisting annual savings that is forecast to | ||||||
8 | be cost-effectively achievable during the 4-year plan | ||||||
9 | period. The Commission shall review any proposed goal | ||||||
10 | reduction as part of its review and approval of the | ||||||
11 | utility's proposed plan. | ||||||
12 | (3) No later than March 1, 2025, each electric utility | ||||||
13 | shall file a 4-year energy efficiency plan commencing on | ||||||
14 | January 1, 2026 that is designed to achieve the cumulative | ||||||
15 | persisting annual savings goals specified in paragraphs | ||||||
16 | (9) through (12) of subsection (b-5) of this Section or in | ||||||
17 | paragraphs (9) through (12) of subsection (b-15) of this | ||||||
18 | Section, as applicable, through implementation of energy | ||||||
19 | efficiency measures; however, the goals may be reduced if | ||||||
20 | either (1) clear and convincing evidence demonstrates, | ||||||
21 | through independent analysis, that the expenditure limits | ||||||
22 | in subsection (m) of this Section preclude full | ||||||
23 | achievement of the goals or (2) each of the following | ||||||
24 | conditions are met: (A) the plan's analysis and forecasts | ||||||
25 | of the utility's ability to acquire energy savings | ||||||
26 | demonstrate by clear and convincing evidence and through |
| |||||||
| |||||||
1 | independent analysis that achievement of such goals is not | ||||||
2 | cost effective; and (B) the amount of energy savings | ||||||
3 | achieved by the utility as determined by the independent | ||||||
4 | evaluator for the most recent year for which savings have | ||||||
5 | been evaluated preceding the plan filing was less than the | ||||||
6 | average annual amount of savings required to achieve the | ||||||
7 | goals for the applicable 4-year plan period. If there is | ||||||
8 | not clear and convincing evidence that achieving the | ||||||
9 | savings goals specified in paragraphs (b-5) or (b-15) of | ||||||
10 | this Section is possible both cost-effectively and within | ||||||
11 | the expenditure limits in subsection (m), such savings | ||||||
12 | goals shall not be reduced. Except as provided in | ||||||
13 | subsection (m) of this Section, annual increases in | ||||||
14 | cumulative persisting annual savings goals during the | ||||||
15 | applicable 4-year plan period shall not be reduced to | ||||||
16 | amounts that are less than the maximum amount of | ||||||
17 | cumulative persisting annual savings that is forecast to | ||||||
18 | be cost-effectively achievable during the 4-year plan | ||||||
19 | period. The Commission shall review any proposed goal | ||||||
20 | reduction as part of its review and approval of the | ||||||
21 | utility's proposed plan. | ||||||
22 | (4) No later than March 1, 2029, and every 4 years | ||||||
23 | thereafter, each electric utility shall file a 4-year | ||||||
24 | energy efficiency plan commencing on January 1, 2030, and | ||||||
25 | every 4 years thereafter, respectively, that is designed | ||||||
26 | to achieve the cumulative persisting annual savings goals |
| |||||||
| |||||||
1 | established by the Illinois Commerce Commission pursuant | ||||||
2 | to direction of subsections (b-5) and (b-15) of this | ||||||
3 | Section, as applicable, through implementation of energy | ||||||
4 | efficiency measures; however, the goals may be reduced if | ||||||
5 | either (1) clear and convincing evidence and independent | ||||||
6 | analysis demonstrates that the expenditure limits in | ||||||
7 | subsection (m) of this Section preclude full achievement | ||||||
8 | of the goals or (2) each of the following conditions are | ||||||
9 | met: (A) the plan's analysis and forecasts of the | ||||||
10 | utility's ability to acquire energy savings demonstrate by | ||||||
11 | clear and convincing evidence and through independent | ||||||
12 | analysis that achievement of such goals is not | ||||||
13 | cost-effective; and (B) the amount of energy savings | ||||||
14 | achieved by the utility as determined by the independent | ||||||
15 | evaluator for the most recent year for which savings have | ||||||
16 | been evaluated preceding the plan filing was less than the | ||||||
17 | average annual amount of savings required to achieve the | ||||||
18 | goals for the applicable 4-year plan period. If there is | ||||||
19 | not clear and convincing evidence that achieving the | ||||||
20 | savings goals specified in paragraphs (b-5) or (b-15) of | ||||||
21 | this Section is possible both cost-effectively and within | ||||||
22 | the expenditure limits in subsection (m), such savings | ||||||
23 | goals shall not be reduced. Except as provided in | ||||||
24 | subsection (m) of this Section, annual increases in | ||||||
25 | cumulative persisting annual savings goals during the | ||||||
26 | applicable 4-year plan period shall not be reduced to |
| |||||||
| |||||||
1 | amounts that are less than the maximum amount of | ||||||
2 | cumulative persisting annual savings that is forecast to | ||||||
3 | be cost-effectively achievable during the 4-year plan | ||||||
4 | period. The Commission shall review any proposed goal | ||||||
5 | reduction as part of its review and approval of the | ||||||
6 | utility's proposed plan. | ||||||
7 | Each utility's plan shall set forth the utility's | ||||||
8 | proposals to meet the energy efficiency standards identified | ||||||
9 | in subsection (b-5) or (b-15), as applicable and as such | ||||||
10 | standards may have been modified under this subsection (f), | ||||||
11 | taking into account the unique circumstances of the utility's | ||||||
12 | service territory. For those plans commencing on January 1, | ||||||
13 | 2018, the Commission shall seek public comment on the | ||||||
14 | utility's plan and shall issue an order approving or | ||||||
15 | disapproving each plan no later than 105 days after June 1, | ||||||
16 | 2017 (the effective date of Public Act 99-906). For those | ||||||
17 | plans commencing after December 31, 2021, the Commission shall | ||||||
18 | seek public comment on the utility's plan and shall issue an | ||||||
19 | order approving or disapproving each plan within 6 months | ||||||
20 | after its submission. If the Commission disapproves a plan, | ||||||
21 | the Commission shall, within 30 days, describe in detail the | ||||||
22 | reasons for the disapproval and describe a path by which the | ||||||
23 | utility may file a revised draft of the plan to address the | ||||||
24 | Commission's concerns satisfactorily. If the utility does not | ||||||
25 | refile with the Commission within 60 days, the utility shall | ||||||
26 | be subject to penalties at a rate of $100,000 per day until the |
| |||||||
| |||||||
1 | plan is filed. This process shall continue, and penalties | ||||||
2 | shall accrue, until the utility has successfully filed a | ||||||
3 | portfolio of energy efficiency and demand-response measures. | ||||||
4 | Penalties shall be deposited into the Energy Efficiency Trust | ||||||
5 | Fund. | ||||||
6 | (g) In submitting proposed plans and funding levels under | ||||||
7 | subsection (f) of this Section to meet the savings goals | ||||||
8 | identified in subsection (b-5) or (b-15) of this Section, as | ||||||
9 | applicable, the utility shall: | ||||||
10 | (1) Demonstrate that its proposed energy efficiency | ||||||
11 | measures will achieve the applicable requirements that are | ||||||
12 | identified in subsection (b-5) or (b-15) of this Section, | ||||||
13 | as modified by subsection (f) of this Section. | ||||||
14 | (2) (Blank). | ||||||
15 | (2.5) Demonstrate consideration of program options for | ||||||
16 | (A) advancing new building codes, appliance standards, and | ||||||
17 | municipal regulations governing existing and new building | ||||||
18 | efficiency improvements and (B) supporting efforts to | ||||||
19 | improve compliance with new building codes, appliance | ||||||
20 | standards and municipal regulations, as potentially | ||||||
21 | cost-effective means of acquiring energy savings to count | ||||||
22 | toward savings goals. | ||||||
23 | (3) Demonstrate that its overall portfolio of | ||||||
24 | measures, not including low-income programs described in | ||||||
25 | subsection (c) of this Section, is cost-effective using | ||||||
26 | the total resource cost test or complies with paragraphs |
| |||||||
| |||||||
1 | (1) through (3) of subsection (f) of this Section and | ||||||
2 | represents a diverse cross-section of opportunities for | ||||||
3 | customers of all rate classes, other than those customers | ||||||
4 | described in subsection (l) of this Section, to | ||||||
5 | participate in the programs. Individual measures need not | ||||||
6 | be cost effective. | ||||||
7 | (3.5) Demonstrate that the utility's plan integrates | ||||||
8 | the delivery of energy efficiency programs with natural | ||||||
9 | gas efficiency programs, programs promoting distributed | ||||||
10 | solar, programs promoting demand response and other | ||||||
11 | efforts to address bill payment issues, including, but not | ||||||
12 | limited to, LIHEAP and the Percentage of Income Payment | ||||||
13 | Plan, to the extent such integration is practical and has | ||||||
14 | the potential to enhance customer engagement, minimize | ||||||
15 | market confusion, or reduce administrative costs. | ||||||
16 | (4) Present a third-party energy efficiency | ||||||
17 | implementation program subject to the following | ||||||
18 | requirements: | ||||||
19 | (A) beginning with the year commencing January 1, | ||||||
20 | 2019, electric utilities that serve more than | ||||||
21 | 3,000,000 retail customers in the State shall fund | ||||||
22 | third-party energy efficiency programs in an amount | ||||||
23 | that is no less than $25,000,000 per year, and | ||||||
24 | electric utilities that serve less than 3,000,000 | ||||||
25 | retail customers but more than 500,000 retail | ||||||
26 | customers in the State shall fund third-party energy |
| |||||||
| |||||||
1 | efficiency programs in an amount that is no less than | ||||||
2 | $8,350,000 per year; | ||||||
3 | (B) during 2018, the utility shall conduct a | ||||||
4 | solicitation process for purposes of requesting | ||||||
5 | proposals from third-party vendors for those | ||||||
6 | third-party energy efficiency programs to be offered | ||||||
7 | during one or more of the years commencing January 1, | ||||||
8 | 2019, January 1, 2020, and January 1, 2021; for those | ||||||
9 | multi-year plans commencing on January 1, 2022 and | ||||||
10 | January 1, 2026, the utility shall conduct a | ||||||
11 | solicitation process during 2021 and 2025, | ||||||
12 | respectively, for purposes of requesting proposals | ||||||
13 | from third-party vendors for those third-party energy | ||||||
14 | efficiency programs to be offered during one or more | ||||||
15 | years of the respective multi-year plan period; for | ||||||
16 | each solicitation process, the utility shall identify | ||||||
17 | the sector, technology, or geographical area for which | ||||||
18 | it is seeking requests for proposals; the solicitation | ||||||
19 | process must be either for programs that fill gaps in | ||||||
20 | the utility's program portfolio and for programs that | ||||||
21 | target low-income customers, business sectors, | ||||||
22 | building types, geographies, or other specific parts | ||||||
23 | of its customer base with initiatives that would be | ||||||
24 | more effective at reaching these customer segments | ||||||
25 | than the utilities' programs filed in its energy | ||||||
26 | efficiency plans; |
| |||||||
| |||||||
1 | (C) the utility shall propose the bidder | ||||||
2 | qualifications, performance measurement process, and | ||||||
3 | contract structure, which must include a performance | ||||||
4 | payment mechanism and general terms and conditions; | ||||||
5 | the proposed qualifications, process, and structure | ||||||
6 | shall be subject to Commission approval; and | ||||||
7 | (D) the utility shall retain an independent third | ||||||
8 | party to score the proposals received through the | ||||||
9 | solicitation process described in this paragraph (4), | ||||||
10 | rank them according to their cost per lifetime | ||||||
11 | kilowatt-hours saved, and assemble the portfolio of | ||||||
12 | third-party programs. | ||||||
13 | The electric utility shall recover all costs | ||||||
14 | associated with Commission-approved, third-party | ||||||
15 | administered programs regardless of the success of those | ||||||
16 | programs. | ||||||
17 | (4.5) Implement cost-effective demand-response | ||||||
18 | measures to reduce peak demand by 0.1% over the prior year | ||||||
19 | for eligible retail customers, as defined in Section | ||||||
20 | 16-111.5 of this Act, and for customers that elect hourly | ||||||
21 | service from the utility pursuant to Section 16-107 of | ||||||
22 | this Act, provided those customers have not been declared | ||||||
23 | competitive. This requirement continues until December 31, | ||||||
24 | 2026. | ||||||
25 | (5) Include a proposed or revised cost-recovery tariff | ||||||
26 | mechanism, as provided for under subsection (d) of this |
| |||||||
| |||||||
1 | Section, to fund the proposed energy efficiency and | ||||||
2 | demand-response measures and to ensure the recovery of the | ||||||
3 | prudently and reasonably incurred costs of | ||||||
4 | Commission-approved programs. | ||||||
5 | (6) Provide for an annual independent evaluation of | ||||||
6 | the performance of the cost-effectiveness of the utility's | ||||||
7 | portfolio of measures, as well as a full review of the | ||||||
8 | multi-year plan results of the broader net program impacts | ||||||
9 | and, to the extent practical, for adjustment of the | ||||||
10 | measures on a going-forward basis as a result of the | ||||||
11 | evaluations. The resources dedicated to evaluation shall | ||||||
12 | not exceed 3% of portfolio resources in any given year. | ||||||
13 | (7) For electric utilities that serve more than | ||||||
14 | 3,000,000 retail customers in the State: | ||||||
15 | (A) Through December 31, 2025, provide for an | ||||||
16 | adjustment to the return on equity component of the | ||||||
17 | utility's weighted average cost of capital calculated | ||||||
18 | under subsection (d) of this Section: | ||||||
19 | (i) If the independent evaluator determines | ||||||
20 | that the utility achieved a cumulative persisting | ||||||
21 | annual savings that is less than the applicable | ||||||
22 | annual incremental goal, then the return on equity | ||||||
23 | component shall be reduced by a maximum of 200 | ||||||
24 | basis points in the event that the utility | ||||||
25 | achieved no more than 75% of such goal. If the | ||||||
26 | utility achieved more than 75% of the applicable |
| |||||||
| |||||||
1 | annual incremental goal but less than 100% of such | ||||||
2 | goal, then the return on equity component shall be | ||||||
3 | reduced by 8 basis points for each percent by | ||||||
4 | which the utility failed to achieve the goal. | ||||||
5 | (ii) If the independent evaluator determines | ||||||
6 | that the utility achieved a cumulative persisting | ||||||
7 | annual savings that is more than the applicable | ||||||
8 | annual incremental goal, then the return on equity | ||||||
9 | component shall be increased by a maximum of 200 | ||||||
10 | basis points in the event that the utility | ||||||
11 | achieved at least 125% of such goal. If the | ||||||
12 | utility achieved more than 100% of the applicable | ||||||
13 | annual incremental goal but less than 125% of such | ||||||
14 | goal, then the return on equity component shall be | ||||||
15 | increased by 8 basis points for each percent by | ||||||
16 | which the utility achieved above the goal. If the | ||||||
17 | applicable annual incremental goal was reduced | ||||||
18 | under paragraph (1) or (2) of subsection (f) of | ||||||
19 | this Section, then the following adjustments shall | ||||||
20 | be made to the calculations described in this item | ||||||
21 | (ii): | ||||||
22 | (aa) the calculation for determining | ||||||
23 | achievement that is at least 125% of the | ||||||
24 | applicable annual incremental goal shall use | ||||||
25 | the unreduced applicable annual incremental | ||||||
26 | goal to set the value; and |
| |||||||
| |||||||
1 | (bb) the calculation for determining | ||||||
2 | achievement that is less than 125% but more | ||||||
3 | than 100% of the applicable annual incremental | ||||||
4 | goal shall use the reduced applicable annual | ||||||
5 | incremental goal to set the value for 100% | ||||||
6 | achievement of the goal and shall use the | ||||||
7 | unreduced goal to set the value for 125% | ||||||
8 | achievement. The 8 basis point value shall | ||||||
9 | also be modified, as necessary, so that the | ||||||
10 | 200 basis points are evenly apportioned among | ||||||
11 | each percentage point value between 100% and | ||||||
12 | 125% achievement. | ||||||
13 | (B) For the period January 1, 2026 through | ||||||
14 | December 31, 2029 and in all subsequent 4-year | ||||||
15 | periods, provide for an adjustment to the return on | ||||||
16 | equity component of the utility's weighted average | ||||||
17 | cost of capital calculated under subsection (d) of | ||||||
18 | this Section: | ||||||
19 | (i) If the independent evaluator determines | ||||||
20 | that the utility achieved a cumulative persisting | ||||||
21 | annual savings that is less than the applicable | ||||||
22 | annual incremental goal, then the return on equity | ||||||
23 | component shall be reduced by a maximum of 200 | ||||||
24 | basis points in the event that the utility | ||||||
25 | achieved no more than 66% of such goal. If the | ||||||
26 | utility achieved more than 66% of the applicable |
| |||||||
| |||||||
1 | annual incremental goal but less than 100% of such | ||||||
2 | goal, then the return on equity component shall be | ||||||
3 | reduced by 6 basis points for each percent by | ||||||
4 | which the utility failed to achieve the goal. | ||||||
5 | (ii) If the independent evaluator determines | ||||||
6 | that the utility achieved a cumulative persisting | ||||||
7 | annual savings that is more than the applicable | ||||||
8 | annual incremental goal, then the return on equity | ||||||
9 | component shall be increased by a maximum of 200 | ||||||
10 | basis points in the event that the utility | ||||||
11 | achieved at least 134% of such goal. If the | ||||||
12 | utility achieved more than 100% of the applicable | ||||||
13 | annual incremental goal but less than 134% of such | ||||||
14 | goal, then the return on equity component shall be | ||||||
15 | increased by 6 basis points for each percent by | ||||||
16 | which the utility achieved above the goal. If the | ||||||
17 | applicable annual incremental goal was reduced | ||||||
18 | under paragraph (3) of subsection (f) of this | ||||||
19 | Section, then the following adjustments shall be | ||||||
20 | made to the calculations described in this item | ||||||
21 | (ii): | ||||||
22 | (aa) the calculation for determining | ||||||
23 | achievement that is at least 134% of the | ||||||
24 | applicable annual incremental goal shall use | ||||||
25 | the unreduced applicable annual incremental | ||||||
26 | goal to set the value; and |
| |||||||
| |||||||
1 | (bb) the calculation for determining | ||||||
2 | achievement that is less than 134% but more | ||||||
3 | than 100% of the applicable annual incremental | ||||||
4 | goal shall use the reduced applicable annual | ||||||
5 | incremental goal to set the value for 100% | ||||||
6 | achievement of the goal and shall use the | ||||||
7 | unreduced goal to set the value for 134% | ||||||
8 | achievement. The 6 basis point value shall | ||||||
9 | also be modified, as necessary, so that the | ||||||
10 | 200 basis points are evenly apportioned among | ||||||
11 | each percentage point value between 100% and | ||||||
12 | 134% achievement. | ||||||
13 | (C) Notwithstanding the provisions of | ||||||
14 | subparagraphs (A) and (B) of this paragraph (7), if | ||||||
15 | the applicable annual incremental goal for an electric | ||||||
16 | utility is ever less than 0.6% of deemed average | ||||||
17 | weather normalized sales of electric power and energy | ||||||
18 | during calendar years 2014, 2015, and 2016, an | ||||||
19 | adjustment to the return on equity component of the | ||||||
20 | utility's weighted average cost of capital calculated | ||||||
21 | under subsection (d) of this Section shall be made as | ||||||
22 | follows: | ||||||
23 | (i) If the independent evaluator determines | ||||||
24 | that the utility achieved a cumulative persisting | ||||||
25 | annual savings that is less than would have been | ||||||
26 | achieved had the applicable annual incremental |
| |||||||
| |||||||
1 | goal been achieved, then the return on equity | ||||||
2 | component shall be reduced by a maximum of 200 | ||||||
3 | basis points if the utility achieved no more than | ||||||
4 | 75% of its applicable annual total savings | ||||||
5 | requirement as defined in paragraph (7.5) of this | ||||||
6 | subsection. If the utility achieved more than 75% | ||||||
7 | of the applicable annual total savings requirement | ||||||
8 | but less than 100% of such goal, then the return on | ||||||
9 | equity component shall be reduced by 8 basis | ||||||
10 | points for each percent by which the utility | ||||||
11 | failed to achieve the goal. | ||||||
12 | (ii) If the independent evaluator determines | ||||||
13 | that the utility achieved a cumulative persisting | ||||||
14 | annual savings that is more than would have been | ||||||
15 | achieved had the applicable annual incremental | ||||||
16 | goal been achieved, then the return on equity | ||||||
17 | component shall be increased by a maximum of 200 | ||||||
18 | basis points if the utility achieved at least 125% | ||||||
19 | of its applicable annual total savings | ||||||
20 | requirement. If the utility achieved more than | ||||||
21 | 100% of the applicable annual total savings | ||||||
22 | requirement but less than 125% of such goal, then | ||||||
23 | the return on equity component shall be increased | ||||||
24 | by 8 basis points for each percent by which the | ||||||
25 | utility achieved above the applicable annual total | ||||||
26 | savings requirement. If the applicable annual |
| |||||||
| |||||||
1 | incremental goal was reduced under paragraph (1) | ||||||
2 | or (2) of subsection (f) of this Section, then the | ||||||
3 | following adjustments shall be made to the | ||||||
4 | calculations described in this item (ii): | ||||||
5 | (aa) the calculation for determining | ||||||
6 | achievement that is at least 125% of the | ||||||
7 | applicable annual total savings requirement | ||||||
8 | shall use the unreduced applicable annual | ||||||
9 | incremental goal to set the value; and | ||||||
10 | (bb) the calculation for determining | ||||||
11 | achievement that is less than 125% but more | ||||||
12 | than 100% of the applicable annual total | ||||||
13 | savings requirement shall use the reduced | ||||||
14 | applicable annual incremental goal to set the | ||||||
15 | value for 100% achievement of the goal and | ||||||
16 | shall use the unreduced goal to set the value | ||||||
17 | for 125% achievement. The 8 basis point value | ||||||
18 | shall also be modified, as necessary, so that | ||||||
19 | the 200 basis points are evenly apportioned | ||||||
20 | among each percentage point value between 100% | ||||||
21 | and 125% achievement. | ||||||
22 | (7.5) For purposes of this Section, the term | ||||||
23 | "applicable annual incremental goal" means the difference | ||||||
24 | between the cumulative persisting annual savings goal for | ||||||
25 | the calendar year that is the subject of the independent | ||||||
26 | evaluator's determination and the cumulative persisting |
| |||||||
| |||||||
1 | annual savings goal for the immediately preceding calendar | ||||||
2 | year, as such goals are defined in subsections (b-5) and | ||||||
3 | (b-15) of this Section and as these goals may have been | ||||||
4 | modified as provided for under subsection (b-20) and | ||||||
5 | paragraphs (1) through (3) of subsection (f) of this | ||||||
6 | Section. Under subsections (b), (b-5), (b-10), and (b-15) | ||||||
7 | of this Section, a utility must first replace energy | ||||||
8 | savings from measures that have expired before any | ||||||
9 | progress towards achievement of its applicable annual | ||||||
10 | incremental goal may be counted. Savings may expire | ||||||
11 | because measures installed in previous years have reached | ||||||
12 | the end of their lives, because measures installed in | ||||||
13 | previous years are producing lower savings in the current | ||||||
14 | year than in the previous year, or for other reasons | ||||||
15 | identified by independent evaluators. Notwithstanding | ||||||
16 | anything else set forth in this Section, the difference | ||||||
17 | between the actual annual incremental savings achieved in | ||||||
18 | any given year, including the replacement of energy | ||||||
19 | savings that have expired, and the applicable annual | ||||||
20 | incremental goal shall not affect adjustments to the | ||||||
21 | return on equity for subsequent calendar years under this | ||||||
22 | subsection (g). | ||||||
23 | In this Section, "applicable annual total savings | ||||||
24 | requirement" means the total amount of new annual savings | ||||||
25 | that the utility must achieve in any given year to achieve | ||||||
26 | the applicable annual incremental goal. This is equal to |
| |||||||
| |||||||
1 | the applicable annual incremental goal plus the total new | ||||||
2 | annual savings that are required to replace savings that | ||||||
3 | expired in or at the end of the previous year. | ||||||
4 | (8) For electric utilities that serve less than | ||||||
5 | 3,000,000 retail customers but more than 500,000 retail | ||||||
6 | customers in the State: | ||||||
7 | (A) Through December 31, 2025, the applicable | ||||||
8 | annual incremental goal shall be compared to the | ||||||
9 | annual incremental savings as determined by the | ||||||
10 | independent evaluator. | ||||||
11 | (i) The return on equity component shall be | ||||||
12 | reduced by 8 basis points for each percent by | ||||||
13 | which the utility did not achieve 84.4% of the | ||||||
14 | applicable annual incremental goal. | ||||||
15 | (ii) The return on equity component shall be | ||||||
16 | increased by 8 basis points for each percent by | ||||||
17 | which the utility exceeded 100% of the applicable | ||||||
18 | annual incremental goal. | ||||||
19 | (iii) The return on equity component shall not | ||||||
20 | be increased or decreased if the annual | ||||||
21 | incremental savings as determined by the | ||||||
22 | independent evaluator is greater than 84.4% of the | ||||||
23 | applicable annual incremental goal and less than | ||||||
24 | 100% of the applicable annual incremental goal. | ||||||
25 | (iv) The return on equity component shall not | ||||||
26 | be increased or decreased by an amount greater |
| |||||||
| |||||||
1 | than 200 basis points pursuant to this | ||||||
2 | subparagraph (A). | ||||||
3 | (B) For the period of January 1, 2026 through | ||||||
4 | December 31, 2029 and in all subsequent 4-year | ||||||
5 | periods, the applicable annual incremental goal shall | ||||||
6 | be compared to the annual incremental savings as | ||||||
7 | determined by the independent evaluator. | ||||||
8 | (i) The return on equity component shall be | ||||||
9 | reduced by 6 basis points for each percent by | ||||||
10 | which the utility did not achieve 100% of the | ||||||
11 | applicable annual incremental goal. | ||||||
12 | (ii) The return on equity component shall be | ||||||
13 | increased by 6 basis points for each percent by | ||||||
14 | which the utility exceeded 100% of the applicable | ||||||
15 | annual incremental goal. | ||||||
16 | (iii) The return on equity component shall not | ||||||
17 | be increased or decreased by an amount greater | ||||||
18 | than 200 basis points pursuant to this | ||||||
19 | subparagraph (B). | ||||||
20 | (C) Notwithstanding provisions in subparagraphs | ||||||
21 | (A) and (B) of paragraph (7) of this subsection, if the | ||||||
22 | applicable annual incremental goal for an electric | ||||||
23 | utility is ever less than 0.6% of deemed average | ||||||
24 | weather normalized sales of electric power and energy | ||||||
25 | during calendar years 2014, 2015 and 2016, an | ||||||
26 | adjustment to the return on equity component of the |
| |||||||
| |||||||
1 | utility's weighted average cost of capital calculated | ||||||
2 | under subsection (d) of this Section shall be made as | ||||||
3 | follows: | ||||||
4 | (i) The return on equity component shall be | ||||||
5 | reduced by 8 basis points for each percent by | ||||||
6 | which the utility did not achieve 100% of the | ||||||
7 | applicable annual total savings requirement. | ||||||
8 | (ii) The return on equity component shall be | ||||||
9 | increased by 8 basis points for each percent by | ||||||
10 | which the utility exceeded 100% of the applicable | ||||||
11 | annual total savings requirement. | ||||||
12 | (iii) The return on equity component shall not | ||||||
13 | be increased or decreased by an amount greater | ||||||
14 | than 200 basis points pursuant to this | ||||||
15 | subparagraph (C). | ||||||
16 | (D) If the applicable annual incremental goal was | ||||||
17 | reduced under paragraph (1), (2), (3), or (4) of | ||||||
18 | subsection (f) of this Section, then the following | ||||||
19 | adjustments shall be made to the calculations | ||||||
20 | described in subparagraphs (A), (B), and (C) of this | ||||||
21 | paragraph (8): | ||||||
22 | (i) The calculation for determining | ||||||
23 | achievement that is at least 125% or 134%, as | ||||||
24 | applicable, of the applicable annual incremental | ||||||
25 | goal or the applicable annual total savings | ||||||
26 | requirement, as applicable, shall use the |
| |||||||
| |||||||
1 | unreduced applicable annual incremental goal to | ||||||
2 | set the value. | ||||||
3 | (ii) For the period through December 31, 2025, | ||||||
4 | the calculation for determining achievement that | ||||||
5 | is less than 125% but more than 100% of the | ||||||
6 | applicable annual incremental goal or the | ||||||
7 | applicable annual total savings requirement, as | ||||||
8 | applicable, shall use the reduced applicable | ||||||
9 | annual incremental goal to set the value for 100% | ||||||
10 | achievement of the goal and shall use the | ||||||
11 | unreduced goal to set the value for 125% | ||||||
12 | achievement. The 8 basis point value shall also be | ||||||
13 | modified, as necessary, so that the 200 basis | ||||||
14 | points are evenly apportioned among each | ||||||
15 | percentage point value between 100% and 125% | ||||||
16 | achievement. | ||||||
17 | (iii) For the period of January 1, 2026 | ||||||
18 | through December 31, 2029 and all subsequent | ||||||
19 | 4-year periods, the calculation for determining | ||||||
20 | achievement that is less than 125% or 134%, as | ||||||
21 | applicable, but more than 100% of the applicable | ||||||
22 | annual incremental goal or the applicable annual | ||||||
23 | total savings requirement, as applicable, shall | ||||||
24 | use the reduced applicable annual incremental goal | ||||||
25 | to set the value for 100% achievement of the goal | ||||||
26 | and shall use the unreduced goal to set the value |
| |||||||
| |||||||
1 | for 125% achievement. The 6 basis-point value or 8 | ||||||
2 | basis-point value, as applicable, shall also be | ||||||
3 | modified, as necessary, so that the 200 basis | ||||||
4 | points are evenly apportioned among each | ||||||
5 | percentage point value between 100% and 125% or | ||||||
6 | between 100% and 134% achievement, as applicable. | ||||||
7 | (9) The utility shall submit the energy savings data | ||||||
8 | to the independent evaluator no later than 30 days after | ||||||
9 | the close of the plan year. The independent evaluator | ||||||
10 | shall determine the cumulative persisting annual savings | ||||||
11 | for a given plan year, as well as an estimate of job | ||||||
12 | impacts and other macroeconomic impacts of the efficiency | ||||||
13 | programs for that year, no later than 120 days after the | ||||||
14 | close of the plan year. The utility shall submit an | ||||||
15 | informational filing to the Commission no later than 160 | ||||||
16 | days after the close of the plan year that attaches the | ||||||
17 | independent evaluator's final report identifying the | ||||||
18 | cumulative persisting annual savings for the year and | ||||||
19 | calculates, under paragraph (7) or (8) of this subsection | ||||||
20 | (g), as applicable, any resulting change to the utility's | ||||||
21 | return on equity component of the weighted average cost of | ||||||
22 | capital applicable to the next plan year beginning with | ||||||
23 | the January monthly billing period and extending through | ||||||
24 | the December monthly billing period. However, if the | ||||||
25 | utility recovers the costs incurred under this Section | ||||||
26 | under paragraphs (2) and (3) of subsection (d) of this |
| |||||||
| |||||||
1 | Section, then the utility shall not be required to submit | ||||||
2 | such informational filing, and shall instead submit the | ||||||
3 | information that would otherwise be included in the | ||||||
4 | informational filing as part of its filing under paragraph | ||||||
5 | (3) of such subsection (d) that is due on or before June 1 | ||||||
6 | of each year. | ||||||
7 | For those utilities that must submit the informational | ||||||
8 | filing, the Commission may, on its own motion or by | ||||||
9 | petition, initiate an investigation of such filing, | ||||||
10 | provided, however, that the utility's proposed return on | ||||||
11 | equity calculation shall be deemed the final, approved | ||||||
12 | calculation on December 15 of the year in which it is filed | ||||||
13 | unless the Commission enters an order on or before | ||||||
14 | December 15, after notice and hearing, that modifies such | ||||||
15 | calculation consistent with this Section. | ||||||
16 | The adjustments to the return on equity component | ||||||
17 | described in paragraphs (7) and (8) of this subsection (g) | ||||||
18 | shall be applied as described in such paragraphs through a | ||||||
19 | separate tariff mechanism, which shall be filed by the | ||||||
20 | utility under subsections (f) and (g) of this Section. | ||||||
21 | (9.5) The utility must demonstrate how it will ensure | ||||||
22 | that program implementation contractors and energy | ||||||
23 | efficiency installation vendors will promote workforce | ||||||
24 | equity and quality jobs. | ||||||
25 | (9.6) Utilities shall collect data necessary to ensure | ||||||
26 | compliance with paragraph (9.5) no less than quarterly and |
| |||||||
| |||||||
1 | shall communicate progress toward compliance with | ||||||
2 | paragraph (9.5) to program implementation contractors and | ||||||
3 | energy efficiency installation vendors no less than | ||||||
4 | quarterly. Utilities shall work with relevant vendors, | ||||||
5 | providing education, training, and other resources needed | ||||||
6 | to ensure compliance and, where necessary, adjusting or | ||||||
7 | terminating work with vendors that cannot assist with | ||||||
8 | compliance. | ||||||
9 | (10) Utilities required to implement efficiency | ||||||
10 | programs under subsections (b-5) and (b-10) shall report | ||||||
11 | annually to the Illinois Commerce Commission and the | ||||||
12 | General Assembly on how hiring, contracting, job training, | ||||||
13 | and other practices related to its energy efficiency | ||||||
14 | programs enhance the diversity of vendors working on such | ||||||
15 | programs. These reports must include data on vendor and | ||||||
16 | employee diversity, including data on the implementation | ||||||
17 | of paragraphs (9.5) and (9.6). If the utility is not | ||||||
18 | meeting the requirements of paragraphs (9.5) and (9.6), | ||||||
19 | the utility shall submit a plan to adjust their activities | ||||||
20 | so that they meet the requirements of paragraphs (9.5) and | ||||||
21 | (9.6) within the following year. | ||||||
22 | (h) No more than 4% of energy efficiency and | ||||||
23 | demand-response program revenue may be allocated for research, | ||||||
24 | development, or pilot deployment of new equipment or measures. | ||||||
25 | Electric utilities shall work with interested stakeholders to | ||||||
26 | formulate a plan for how these funds should be spent, |
| |||||||
| |||||||
1 | incorporate statewide approaches for these allocations, and | ||||||
2 | file a 4-year plan that demonstrates that collaboration. If a | ||||||
3 | utility files a request for modified annual energy savings | ||||||
4 | goals with the Commission, then a utility shall forgo spending | ||||||
5 | portfolio dollars on research and development proposals. | ||||||
6 | (i) When practicable, electric utilities shall incorporate | ||||||
7 | advanced metering infrastructure data into the planning, | ||||||
8 | implementation, and evaluation of energy efficiency measures | ||||||
9 | and programs, subject to the data privacy and confidentiality | ||||||
10 | protections of applicable law. | ||||||
11 | (j) The independent evaluator shall follow the guidelines | ||||||
12 | and use the savings set forth in Commission-approved energy | ||||||
13 | efficiency policy manuals and technical reference manuals, as | ||||||
14 | each may be updated from time to time. Until such time as | ||||||
15 | measure life values for energy efficiency measures implemented | ||||||
16 | for low-income households under subsection (c) of this Section | ||||||
17 | are incorporated into such Commission-approved manuals, the | ||||||
18 | low-income measures shall have the same measure life values | ||||||
19 | that are established for same measures implemented in | ||||||
20 | households that are not low-income households. | ||||||
21 | (k) Notwithstanding any provision of law to the contrary, | ||||||
22 | an electric utility subject to the requirements of this | ||||||
23 | Section may file a tariff cancelling an automatic adjustment | ||||||
24 | clause tariff in effect under this Section or Section 8-103, | ||||||
25 | which shall take effect no later than one business day after | ||||||
26 | the date such tariff is filed. Thereafter, the utility shall |
| |||||||
| |||||||
1 | be authorized to defer and recover its expenditures incurred | ||||||
2 | under this Section through a new tariff authorized under | ||||||
3 | subsection (d) of this Section or in the utility's next rate | ||||||
4 | case under Article IX or Section 16-108.5 of this Act, with | ||||||
5 | interest at an annual rate equal to the utility's weighted | ||||||
6 | average cost of capital as approved by the Commission in such | ||||||
7 | case. If the utility elects to file a new tariff under | ||||||
8 | subsection (d) of this Section, the utility may file the | ||||||
9 | tariff within 10 days after June 1, 2017 (the effective date of | ||||||
10 | Public Act 99-906), and the cost inputs to such tariff shall be | ||||||
11 | based on the projected costs to be incurred by the utility | ||||||
12 | during the calendar year in which the new tariff is filed and | ||||||
13 | that were not recovered under the tariff that was cancelled as | ||||||
14 | provided for in this subsection. Such costs shall include | ||||||
15 | those incurred or to be incurred by the utility under its | ||||||
16 | multi-year plan approved under subsections (f) and (g) of this | ||||||
17 | Section, including, but not limited to, projected capital | ||||||
18 | investment costs and projected regulatory asset balances with | ||||||
19 | correspondingly updated depreciation and amortization reserves | ||||||
20 | and expense. The Commission shall, after notice and hearing, | ||||||
21 | approve, or approve with modification, such tariff and cost | ||||||
22 | inputs no later than 75 days after the utility filed the | ||||||
23 | tariff, provided that such approval, or approval with | ||||||
24 | modification, shall be consistent with the provisions of this | ||||||
25 | Section to the extent they do not conflict with this | ||||||
26 | subsection (k). The tariff approved by the Commission shall |
| |||||||
| |||||||
1 | take effect no later than 5 days after the Commission enters | ||||||
2 | its order approving the tariff. | ||||||
3 | No later than 60 days after the effective date of the | ||||||
4 | tariff cancelling the utility's automatic adjustment clause | ||||||
5 | tariff, the utility shall file a reconciliation that | ||||||
6 | reconciles the moneys collected under its automatic adjustment | ||||||
7 | clause tariff with the costs incurred during the period | ||||||
8 | beginning June 1, 2016 and ending on the date that the electric | ||||||
9 | utility's automatic adjustment clause tariff was cancelled. In | ||||||
10 | the event the reconciliation reflects an under-collection, the | ||||||
11 | utility shall recover the costs as specified in this | ||||||
12 | subsection (k). If the reconciliation reflects an | ||||||
13 | over-collection, the utility shall apply the amount of such | ||||||
14 | over-collection as a one-time credit to retail customers' | ||||||
15 | bills. | ||||||
16 | (l) For the calendar years covered by a multi-year plan | ||||||
17 | commencing after December 31, 2017, subsections (a) through | ||||||
18 | (j) of this Section do not apply to eligible large private | ||||||
19 | energy customers that have chosen to opt out of multi-year | ||||||
20 | plans consistent with this subsection (1). | ||||||
21 | (1) For purposes of this subsection (l), "eligible | ||||||
22 | large private energy customer" means any retail customers, | ||||||
23 | except for federal, State, municipal, and other public | ||||||
24 | customers, of an electric utility that serves more than | ||||||
25 | 3,000,000 retail customers, except for federal, State, | ||||||
26 | municipal and other public customers, in the State and |
| |||||||
| |||||||
1 | whose total highest 30 minute demand was more than 10,000 | ||||||
2 | kilowatts, or any retail customers of an electric utility | ||||||
3 | that serves less than 3,000,000 retail customers but more | ||||||
4 | than 500,000 retail customers in the State and whose total | ||||||
5 | highest 15 minute demand was more than 10,000 kilowatts. | ||||||
6 | For purposes of this subsection (l), "retail customer" has | ||||||
7 | the meaning set forth in Section 16-102 of this Act. | ||||||
8 | However, for a business entity with multiple sites located | ||||||
9 | in the State, where at least one of those sites qualifies | ||||||
10 | as an eligible large private energy customer, then any of | ||||||
11 | that business entity's sites, properly identified on a | ||||||
12 | form for notice, shall be considered eligible large | ||||||
13 | private energy customers for the purposes of this | ||||||
14 | subsection (l). A determination of whether this subsection | ||||||
15 | is applicable to a customer shall be made for each | ||||||
16 | multi-year plan beginning after December 31, 2017. The | ||||||
17 | criteria for determining whether this subsection (l) is | ||||||
18 | applicable to a retail customer shall be based on the 12 | ||||||
19 | consecutive billing periods prior to the start of the | ||||||
20 | first year of each such multi-year plan. | ||||||
21 | (2) Within 45 days after September 15, 2021 (the | ||||||
22 | effective date of Public Act 102-662), the Commission | ||||||
23 | shall prescribe the form for notice required for opting | ||||||
24 | out of energy efficiency programs. The notice must be | ||||||
25 | submitted to the retail electric utility 12 months before | ||||||
26 | the next energy efficiency planning cycle. However, within |
| |||||||
| |||||||
1 | 120 days after the Commission's initial issuance of the | ||||||
2 | form for notice, eligible large private energy customers | ||||||
3 | may submit a form for notice to an electric utility. The | ||||||
4 | form for notice for opting out of energy efficiency | ||||||
5 | programs shall include all of the following: | ||||||
6 | (A) a statement indicating that the customer has | ||||||
7 | elected to opt out; | ||||||
8 | (B) the account numbers for the customer accounts | ||||||
9 | to which the opt out shall apply; | ||||||
10 | (C) the mailing address associated with the | ||||||
11 | customer accounts identified under subparagraph (B); | ||||||
12 | (D) an American Society of Heating, Refrigerating, | ||||||
13 | and Air-Conditioning Engineers (ASHRAE) level 2 or | ||||||
14 | higher audit report conducted by an independent | ||||||
15 | third-party expert identifying cost-effective energy | ||||||
16 | efficiency project opportunities that could be | ||||||
17 | invested in over the next 10 years. A retail customer | ||||||
18 | with specialized processes may utilize a self-audit | ||||||
19 | process in lieu of the ASHRAE audit; | ||||||
20 | (E) a description of the customer's plans to | ||||||
21 | reallocate the funds toward internal energy efficiency | ||||||
22 | efforts identified in the subparagraph (D) report, | ||||||
23 | including, but not limited to: (i) strategic energy | ||||||
24 | management or other programs, including descriptions | ||||||
25 | of targeted buildings, equipment and operations; (ii) | ||||||
26 | eligible energy efficiency measures; and (iii) |
| |||||||
| |||||||
1 | expected energy savings, itemized by technology. If | ||||||
2 | the subparagraph (D) audit report identifies that the | ||||||
3 | customer currently utilizes the best available energy | ||||||
4 | efficient technology, equipment, programs, and | ||||||
5 | operations, the customer may provide a statement that | ||||||
6 | more efficient technology, equipment, programs, and | ||||||
7 | operations are not reasonably available as a means of | ||||||
8 | satisfying this subparagraph (E); and | ||||||
9 | (F) the effective date of the opt out, which will | ||||||
10 | be the next January 1 following notice of the opt out. | ||||||
11 | (3) Upon receipt of a properly and timely noticed | ||||||
12 | request for opt out submitted by an eligible large private | ||||||
13 | energy customer, the retail electric utility shall grant | ||||||
14 | the request, file the request with the Commission and, | ||||||
15 | beginning January 1 of the following year, the opted out | ||||||
16 | customer shall no longer be assessed the costs of the plan | ||||||
17 | and shall be prohibited from participating in that 4-year | ||||||
18 | plan cycle to give the retail utility the certainty to | ||||||
19 | design program plan proposals. | ||||||
20 | (4) Upon a customer's election to opt out under | ||||||
21 | paragraphs (1) and (2) of this subsection (l) and | ||||||
22 | commencing on the effective date of said opt out, the | ||||||
23 | account properly identified in the customer's notice under | ||||||
24 | paragraph (2) shall not be subject to any cost recovery | ||||||
25 | and shall not be eligible to participate in, or directly | ||||||
26 | benefit from, compliance with energy efficiency cumulative |
| |||||||
| |||||||
1 | persisting savings requirements under subsections (a) | ||||||
2 | through (j). | ||||||
3 | (5) A utility's cumulative persisting annual savings | ||||||
4 | targets will exclude any opted out load. | ||||||
5 | (6) The request to opt out is only valid for the | ||||||
6 | requested plan cycle. An eligible large private energy | ||||||
7 | customer must also request to opt out for future energy | ||||||
8 | plan cycles, otherwise the customer will be included in | ||||||
9 | the future energy plan cycle. | ||||||
10 | (m) Notwithstanding the requirements of this Section, as | ||||||
11 | part of a proceeding to approve a multi-year plan under | ||||||
12 | subsections (f) and (g) of this Section if the multi-year plan | ||||||
13 | has been designed to maximize savings, but does not meet the | ||||||
14 | cost cap limitations of this Section, the Commission shall | ||||||
15 | reduce the amount of energy efficiency measures implemented | ||||||
16 | for any single year, and whose costs are recovered under | ||||||
17 | subsection (d) of this Section, by an amount necessary to | ||||||
18 | limit the estimated average net increase due to the cost of the | ||||||
19 | measures to no more than | ||||||
20 | (1) 3.5% for each of the 4 years beginning January 1, | ||||||
21 | 2018, | ||||||
22 | (2) (blank), | ||||||
23 | (3) 4% for each of the 4 years beginning January 1, | ||||||
24 | 2022, | ||||||
25 | (4) 4.25% for the 4 years beginning January 1, 2026, | ||||||
26 | and |
| |||||||
| |||||||
1 | (5) 4.25% plus an increase sufficient to account for | ||||||
2 | the rate of inflation between January 1, 2026 and January | ||||||
3 | 1 of the first year of each subsequent 4-year plan cycle, | ||||||
4 | of the average amount paid per kilowatthour by residential | ||||||
5 | eligible retail customers during calendar year 2015. An | ||||||
6 | electric utility may plan to spend up to 10% more in any year | ||||||
7 | during an applicable multi-year plan period to | ||||||
8 | cost-effectively achieve additional savings so long as the | ||||||
9 | average over the applicable multi-year plan period does not | ||||||
10 | exceed the percentages defined in items (1) through (5). To | ||||||
11 | determine the total amount that may be spent by an electric | ||||||
12 | utility in any single year, the applicable percentage of the | ||||||
13 | average amount paid per kilowatthour shall be multiplied by | ||||||
14 | the total amount of energy delivered by such electric utility | ||||||
15 | in the calendar year 2015, adjusted to reflect the proportion | ||||||
16 | of the utility's load attributable to customers that have | ||||||
17 | opted out of subsections (a) through (j) of this Section under | ||||||
18 | subsection (l) of this Section. For purposes of this | ||||||
19 | subsection (m), the amount paid per kilowatthour includes, | ||||||
20 | without limitation, estimated amounts paid for supply, | ||||||
21 | transmission, distribution, surcharges, and add-on taxes. For | ||||||
22 | purposes of this Section, "eligible retail customers" shall | ||||||
23 | have the meaning set forth in Section 16-111.5 of this Act. | ||||||
24 | Once the Commission has approved a plan under subsections (f) | ||||||
25 | and (g) of this Section, no subsequent rate impact | ||||||
26 | determinations shall be made. |
| |||||||
| |||||||
1 | (n) A utility shall take advantage of the efficiencies | ||||||
2 | available through existing Illinois Home Weatherization | ||||||
3 | Assistance Program infrastructure and services, such as | ||||||
4 | enrollment, marketing, quality assurance and implementation, | ||||||
5 | which can reduce the need for similar services at a lower cost | ||||||
6 | than utility-only programs, subject to capacity constraints at | ||||||
7 | community action agencies, for both single-family and | ||||||
8 | multifamily weatherization services, to the extent Illinois | ||||||
9 | Home Weatherization Assistance Program community action | ||||||
10 | agencies provide multifamily services. A utility's plan shall | ||||||
11 | demonstrate that in formulating annual weatherization budgets, | ||||||
12 | it has sought input and coordination with community action | ||||||
13 | agencies regarding agencies' capacity to expand and maximize | ||||||
14 | Illinois Home Weatherization Assistance Program delivery using | ||||||
15 | the ratepayer dollars collected under this Section. | ||||||
16 | (Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-30-23.)
| ||||||
17 | (220 ILCS 5/8-104) | ||||||
18 | Sec. 8-104. Natural gas energy efficiency programs. | ||||||
19 | (a) It is the policy of the State that natural gas | ||||||
20 | utilities and the Department of Commerce and Economic | ||||||
21 | Opportunity are required to use cost-effective energy | ||||||
22 | efficiency to reduce direct and indirect costs to consumers. | ||||||
23 | It serves the public interest to allow natural gas utilities | ||||||
24 | to recover costs for reasonably and prudently incurred | ||||||
25 | expenses for cost-effective energy efficiency measures. |
| |||||||
| |||||||
1 | (b) For purposes of this Section, "energy efficiency" | ||||||
2 | means measures that reduce the amount of energy required to | ||||||
3 | achieve a given end use. "Energy efficiency" also includes | ||||||
4 | measures that reduce the total Btus of electricity and natural | ||||||
5 | gas needed to meet the end use or uses. "Cost-effective" means | ||||||
6 | that the measures satisfy the total resource cost test which, | ||||||
7 | for purposes of this Section, means a standard that is met if, | ||||||
8 | for an investment in energy efficiency, the benefit-cost ratio | ||||||
9 | is greater than one. The benefit-cost ratio is the ratio of the | ||||||
10 | net present value of the total benefits of the measures to the | ||||||
11 | net present value of the total costs as calculated over the | ||||||
12 | lifetime of the measures. The total resource cost test | ||||||
13 | compares the sum of avoided natural gas utility costs, | ||||||
14 | representing the benefits that accrue to the system and the | ||||||
15 | participant in the delivery of those efficiency measures, as | ||||||
16 | well as other quantifiable societal benefits, including | ||||||
17 | avoided electric utility costs, to the sum of all incremental | ||||||
18 | costs of end use measures (including both utility and | ||||||
19 | participant contributions), plus costs to administer, deliver, | ||||||
20 | and evaluate each demand-side measure, to quantify the net | ||||||
21 | savings obtained by substituting demand-side measures for | ||||||
22 | supply resources. In calculating avoided costs, reasonable | ||||||
23 | estimates shall be included for financial costs likely to be | ||||||
24 | imposed by future regulation of emissions of greenhouse gases. | ||||||
25 | The low-income programs described in item (4) of subsection | ||||||
26 | (f) of this Section shall not be required to meet the total |
| |||||||
| |||||||
1 | resource cost test. | ||||||
2 | (c) Natural gas utilities shall implement cost-effective | ||||||
3 | energy efficiency measures to meet at least the following | ||||||
4 | natural gas savings requirements, which shall be based upon | ||||||
5 | the total amount of gas delivered to retail customers, other | ||||||
6 | than the customers described in subsection (m) of this | ||||||
7 | Section, during calendar year 2009 multiplied by the | ||||||
8 | applicable percentage. Natural gas utilities may comply with | ||||||
9 | this Section by meeting the annual incremental savings goal in | ||||||
10 | the applicable year or by showing that total cumulative annual | ||||||
11 | savings within a multi-year planning period associated with | ||||||
12 | measures implemented after May 31, 2011 were equal to the sum | ||||||
13 | of each annual incremental savings requirement from the first | ||||||
14 | day of the multi-year planning period through the last day of | ||||||
15 | the multi-year planning period: | ||||||
16 | (1) 0.2% by May 31, 2012; | ||||||
17 | (2) an additional 0.4% by May 31, 2013, increasing | ||||||
18 | total savings to .6%; | ||||||
19 | (3) an additional 0.6% by May 31, 2014, increasing | ||||||
20 | total savings to 1.2%; | ||||||
21 | (4) an additional 0.8% by May 31, 2015, increasing | ||||||
22 | total savings to 2.0%; | ||||||
23 | (5) an additional 1% by May 31, 2016, increasing total | ||||||
24 | savings to 3.0%; | ||||||
25 | (6) an additional 1.2% by May 31, 2017, increasing | ||||||
26 | total savings to 4.2%; |
| |||||||
| |||||||
1 | (7) an additional 1.4% in the year commencing January | ||||||
2 | 1, 2018; | ||||||
3 | (8) an additional 1.5% in the year commencing January | ||||||
4 | 1, 2019; and | ||||||
5 | (9) an additional 1.5% in each 12-month period | ||||||
6 | thereafter. | ||||||
7 | (d) Notwithstanding the requirements of subsection (c) of | ||||||
8 | this Section, a natural gas utility shall limit the amount of | ||||||
9 | energy efficiency implemented in any multi-year reporting | ||||||
10 | period established by subsection (f) of Section 8-104 of this | ||||||
11 | Act, by an amount necessary to limit the estimated average | ||||||
12 | increase in the amounts paid by retail customers in connection | ||||||
13 | with natural gas service to no more than 2% in the applicable | ||||||
14 | multi-year reporting period. The energy savings requirements | ||||||
15 | in subsection (c) of this Section may be reduced by the | ||||||
16 | Commission for the subject plan, if the utility demonstrates | ||||||
17 | by substantial evidence that it is highly unlikely that the | ||||||
18 | requirements could be achieved without exceeding the | ||||||
19 | applicable spending limits in any multi-year reporting period. | ||||||
20 | No later than September 1, 2013, the Commission shall review | ||||||
21 | the limitation on the amount of energy efficiency measures | ||||||
22 | implemented pursuant to this Section and report to the General | ||||||
23 | Assembly, in the report required by subsection (k) of this | ||||||
24 | Section, its findings as to whether that limitation unduly | ||||||
25 | constrains the procurement of energy efficiency measures. | ||||||
26 | (e) The provisions of this subsection (e) apply to those |
| |||||||
| |||||||
1 | multi-year plans that commence prior to January 1, 2018. The | ||||||
2 | utility shall utilize 75% of the available funding associated | ||||||
3 | with energy efficiency programs approved by the Commission, | ||||||
4 | and may outsource various aspects of program development and | ||||||
5 | implementation. The remaining 25% of available funding shall | ||||||
6 | be used by the Department of Commerce and Economic Opportunity | ||||||
7 | to implement energy efficiency measures that achieve no less | ||||||
8 | than 20% of the requirements of subsection (c) of this | ||||||
9 | Section. Such measures shall be designed in conjunction with | ||||||
10 | the utility and approved by the Commission. The Department may | ||||||
11 | outsource development and implementation of energy efficiency | ||||||
12 | measures. A minimum of 10% of the entire portfolio of | ||||||
13 | cost-effective energy efficiency measures shall be procured | ||||||
14 | from local government, municipal corporations, school | ||||||
15 | districts, public institutions of higher education, and | ||||||
16 | community college districts. Five percent of the entire | ||||||
17 | portfolio of cost-effective energy efficiency measures may be | ||||||
18 | granted to local government and municipal corporations for | ||||||
19 | market transformation initiatives. The Department shall | ||||||
20 | coordinate the implementation of these measures and shall | ||||||
21 | integrate delivery of natural gas efficiency programs with | ||||||
22 | electric efficiency programs delivered pursuant to Section | ||||||
23 | 8-103 of this Act, unless the Department can show that | ||||||
24 | integration is not feasible. | ||||||
25 | The apportionment of the dollars to cover the costs to | ||||||
26 | implement the Department's share of the portfolio of energy |
| |||||||
| |||||||
1 | efficiency measures shall be made to the Department once the | ||||||
2 | Department has executed rebate agreements, grants, or | ||||||
3 | contracts for energy efficiency measures and provided | ||||||
4 | supporting documentation for those rebate agreements, grants, | ||||||
5 | and contracts to the utility. The Department is authorized to | ||||||
6 | adopt any rules necessary and prescribe procedures in order to | ||||||
7 | ensure compliance by applicants in carrying out the purposes | ||||||
8 | of rebate agreements for energy efficiency measures | ||||||
9 | implemented by the Department made under this Section. | ||||||
10 | The details of the measures implemented by the Department | ||||||
11 | shall be submitted by the Department to the Commission in | ||||||
12 | connection with the utility's filing regarding the energy | ||||||
13 | efficiency measures that the utility implements. | ||||||
14 | The portfolio of measures, administered by both the | ||||||
15 | utilities and the Department, shall, in combination, be | ||||||
16 | designed to achieve the annual energy savings requirements set | ||||||
17 | forth in subsection (c) of this Section, as modified by | ||||||
18 | subsection (d) of this Section. | ||||||
19 | The utility and the Department shall agree upon a | ||||||
20 | reasonable portfolio of measures and determine the measurable | ||||||
21 | corresponding percentage of the savings goals associated with | ||||||
22 | measures implemented by the Department. | ||||||
23 | No utility shall be assessed a penalty under subsection | ||||||
24 | (f) of this Section for failure to make a timely filing if that | ||||||
25 | failure is the result of a lack of agreement with the | ||||||
26 | Department with respect to the allocation of responsibilities |
| |||||||
| |||||||
1 | or related costs or target assignments. In that case, the | ||||||
2 | Department and the utility shall file their respective plans | ||||||
3 | with the Commission and the Commission shall determine an | ||||||
4 | appropriate division of measures and programs that meets the | ||||||
5 | requirements of this Section. | ||||||
6 | (e-5) The provisions of this subsection (e-5) shall be | ||||||
7 | applicable to those multi-year plans that commence after | ||||||
8 | December 31, 2017. Natural gas utilities shall be responsible | ||||||
9 | for overseeing the design, development, and filing of their | ||||||
10 | efficiency plans with the Commission and may outsource | ||||||
11 | development and implementation of energy efficiency measures. | ||||||
12 | A minimum of 10% of the entire portfolio of cost-effective | ||||||
13 | energy efficiency measures shall be procured from local | ||||||
14 | government, municipal corporations, school districts, public | ||||||
15 | institutions of higher education, and community college | ||||||
16 | districts. Five percent of the entire portfolio of | ||||||
17 | cost-effective energy efficiency measures may be granted to | ||||||
18 | local government and municipal corporations for market | ||||||
19 | transformation initiatives. | ||||||
20 | The utilities shall also present a portfolio of energy | ||||||
21 | efficiency measures proportionate to the share of total annual | ||||||
22 | utility revenues in Illinois from households at or below 150% | ||||||
23 | of the poverty level. Such programs shall be targeted to | ||||||
24 | households with incomes at or below 80% of area median income. | ||||||
25 | (e-10) A utility providing approved energy efficiency | ||||||
26 | measures in this State shall be permitted to recover costs of |
| |||||||
| |||||||
1 | those measures through an automatic adjustment clause tariff | ||||||
2 | filed with and approved by the Commission. The tariff shall be | ||||||
3 | established outside the context of a general rate case and | ||||||
4 | shall be applicable to the utility's customers other than the | ||||||
5 | customers described in subsection (m) of this Section. Each | ||||||
6 | year the Commission shall initiate a review to reconcile any | ||||||
7 | amounts collected with the actual costs and to determine the | ||||||
8 | required adjustment to the annual tariff factor to match | ||||||
9 | annual expenditures. | ||||||
10 | (e-15) For those multi-year plans that commence prior to | ||||||
11 | January 1, 2018, each utility shall include, in its recovery | ||||||
12 | of costs, the costs estimated for both the utility's and the | ||||||
13 | Department's implementation of energy efficiency measures. | ||||||
14 | Costs collected by the utility for measures implemented by the | ||||||
15 | Department shall be submitted to the Department pursuant to | ||||||
16 | Section 605-323 of the Civil Administrative Code of Illinois, | ||||||
17 | shall be deposited into the Energy Efficiency Portfolio | ||||||
18 | Standards Fund, and shall be used by the Department solely for | ||||||
19 | the purpose of implementing these measures. A utility shall | ||||||
20 | not be required to advance any moneys to the Department but | ||||||
21 | only to forward such funds as it has collected. The Department | ||||||
22 | shall report to the Commission on an annual basis regarding | ||||||
23 | the costs actually incurred by the Department in the | ||||||
24 | implementation of the measures. Any changes to the costs of | ||||||
25 | energy efficiency measures as a result of plan modifications | ||||||
26 | shall be appropriately reflected in amounts recovered by the |
| |||||||
| |||||||
1 | utility and turned over to the Department. | ||||||
2 | (f) No later than October 1, 2010, each gas utility shall | ||||||
3 | file an energy efficiency plan with the Commission to meet the | ||||||
4 | energy efficiency standards through May 31, 2014. No later | ||||||
5 | than October 1, 2013, each gas utility shall file an energy | ||||||
6 | efficiency plan with the Commission to meet the energy | ||||||
7 | efficiency standards through May 31, 2017. Beginning in 2017 | ||||||
8 | and every 4 years thereafter, each utility shall file an | ||||||
9 | energy efficiency plan with the Commission to meet the energy | ||||||
10 | efficiency standards for the next applicable 4-year period | ||||||
11 | beginning January 1 of the year following the filing. For | ||||||
12 | those multi-year plans commencing on January 1, 2018, each | ||||||
13 | utility shall file its proposed energy efficiency plan no | ||||||
14 | later than 30 days after the effective date of this amendatory | ||||||
15 | Act of the 99th General Assembly or May 1, 2017, whichever is | ||||||
16 | later. Beginning in 2021 and every 4 years thereafter, each | ||||||
17 | utility shall file its energy efficiency plan no later than | ||||||
18 | March 1. If a utility does not file such a plan on or before | ||||||
19 | the applicable filing deadline for the plan, then it shall | ||||||
20 | face a penalty of $100,000 per day until the plan is filed. | ||||||
21 | Each utility's plan shall set forth the utility's | ||||||
22 | proposals to meet the utility's portion of the energy | ||||||
23 | efficiency standards identified in subsection (c) of this | ||||||
24 | Section, as modified by subsection (d) of this Section, taking | ||||||
25 | into account the unique circumstances of the utility's service | ||||||
26 | territory. For those plans commencing after December 31, 2021, |
| |||||||
| |||||||
1 | the Commission shall seek public comment on the utility's plan | ||||||
2 | and shall issue an order approving or disapproving each plan | ||||||
3 | within 6 months after its submission. For those plans | ||||||
4 | commencing on January 1, 2018, the Commission shall seek | ||||||
5 | public comment on the utility's plan and shall issue an order | ||||||
6 | approving or disapproving each plan no later than August 31, | ||||||
7 | 2017, or 105 days after the effective date of this amendatory | ||||||
8 | Act of the 99th General Assembly, whichever is later. If the | ||||||
9 | Commission disapproves a plan, the Commission shall, within 30 | ||||||
10 | days, describe in detail the reasons for the disapproval and | ||||||
11 | describe a path by which the utility may file a revised draft | ||||||
12 | of the plan to address the Commission's concerns | ||||||
13 | satisfactorily. If the utility does not refile with the | ||||||
14 | Commission within 60 days after the disapproval, the utility | ||||||
15 | shall be subject to penalties at a rate of $100,000 per day | ||||||
16 | until the plan is filed. This process shall continue, and | ||||||
17 | penalties shall accrue, until the utility has successfully | ||||||
18 | filed a portfolio of energy efficiency measures. Penalties | ||||||
19 | shall be deposited into the Energy Efficiency Trust Fund and | ||||||
20 | the cost of any such penalties may not be recovered from | ||||||
21 | ratepayers. In submitting proposed energy efficiency plans and | ||||||
22 | funding levels to meet the savings goals adopted by this Act | ||||||
23 | the utility shall: | ||||||
24 | (1) Demonstrate that its proposed energy efficiency | ||||||
25 | measures will achieve the requirements that are identified | ||||||
26 | in subsection (c) of this Section, as modified by |
| |||||||
| |||||||
1 | subsection (d) of this Section. | ||||||
2 | (2) Present specific proposals to implement new | ||||||
3 | building and appliance standards that have been placed | ||||||
4 | into effect. | ||||||
5 | (3) Present estimates of the total amount paid for gas | ||||||
6 | service expressed on a per therm basis associated with the | ||||||
7 | proposed portfolio of measures designed to meet the | ||||||
8 | requirements that are identified in subsection (c) of this | ||||||
9 | Section, as modified by subsection (d) of this Section. | ||||||
10 | (4) For those multi-year plans that commence prior to | ||||||
11 | January 1, 2018, coordinate with the Department to present | ||||||
12 | a portfolio of energy efficiency measures proportionate to | ||||||
13 | the share of total annual utility revenues in Illinois | ||||||
14 | from households at or below 150% of the poverty level. | ||||||
15 | Such programs shall be targeted to households with incomes | ||||||
16 | at or below 80% of area median income. | ||||||
17 | (5) Demonstrate that its overall portfolio of energy | ||||||
18 | efficiency measures, not including low-income programs | ||||||
19 | described in item (4) of this subsection (f) and | ||||||
20 | subsection (e-5) of this Section, are cost-effective using | ||||||
21 | the total resource cost test and represent a diverse cross | ||||||
22 | section of opportunities for customers of all rate classes | ||||||
23 | to participate in the programs. | ||||||
24 | (6) Demonstrate that a gas utility affiliated with an | ||||||
25 | electric utility that is required to comply with Section | ||||||
26 | 8-103 or 8-103B of this Act has integrated gas and |
| |||||||
| |||||||
1 | electric efficiency measures into a single program that | ||||||
2 | reduces program or participant costs and appropriately | ||||||
3 | allocates costs to gas and electric ratepayers. For those | ||||||
4 | multi-year plans that commence prior to January 1, 2018, | ||||||
5 | the Department shall integrate all gas and electric | ||||||
6 | programs it delivers in any such utilities' service | ||||||
7 | territories, unless the Department can show that | ||||||
8 | integration is not feasible or appropriate. | ||||||
9 | (7) Include a proposed cost recovery tariff mechanism | ||||||
10 | to fund the proposed energy efficiency measures and to | ||||||
11 | ensure the recovery of the prudently and reasonably | ||||||
12 | incurred costs of Commission-approved programs. | ||||||
13 | (8) Provide for quarterly status reports tracking | ||||||
14 | implementation of and expenditures for the utility's | ||||||
15 | portfolio of measures and, if applicable, the Department's | ||||||
16 | portfolio of measures, an annual independent review, and a | ||||||
17 | full independent evaluation of the multi-year results of | ||||||
18 | the performance and the cost-effectiveness of the | ||||||
19 | utility's and, if applicable, Department's portfolios of | ||||||
20 | measures and broader net program impacts and, to the | ||||||
21 | extent practical, for adjustment of the measures on a | ||||||
22 | going forward basis as a result of the evaluations. The | ||||||
23 | resources dedicated to evaluation shall not exceed 3% of | ||||||
24 | portfolio resources in any given multi-year period. | ||||||
25 | (g) No more than 3% of expenditures on energy efficiency | ||||||
26 | measures may be allocated for demonstration of breakthrough |
| |||||||
| |||||||
1 | equipment and devices. | ||||||
2 | (h) Illinois natural gas utilities that are affiliated by | ||||||
3 | virtue of a common parent company may, at the utilities' | ||||||
4 | request, be considered a single natural gas utility for | ||||||
5 | purposes of complying with this Section. | ||||||
6 | (i) If, after 3 years, a gas utility fails to meet the | ||||||
7 | efficiency standard specified in subsection (c) of this | ||||||
8 | Section as modified by subsection (d), then it shall make a | ||||||
9 | contribution to the Low-Income Home Energy Assistance Program. | ||||||
10 | The total liability for failure to meet the goal shall be | ||||||
11 | assessed as follows: | ||||||
12 | (1) a large gas utility shall pay $600,000; | ||||||
13 | (2) a medium gas utility shall pay $400,000; and | ||||||
14 | (3) a small gas utility shall pay $200,000. | ||||||
15 | For purposes of this Section, (i) a "large gas utility" is | ||||||
16 | a gas utility that on December 31, 2008, served more than | ||||||
17 | 1,500,000 gas customers in Illinois; (ii) a "medium gas | ||||||
18 | utility" is a gas utility that on December 31, 2008, served | ||||||
19 | fewer than 1,500,000, but more than 500,000 gas customers in | ||||||
20 | Illinois; and (iii) a "small gas utility" is a gas utility that | ||||||
21 | on December 31, 2008, served fewer than 500,000 and more than | ||||||
22 | 100,000 gas customers in Illinois. The costs of this | ||||||
23 | contribution may not be recovered from ratepayers. | ||||||
24 | If a gas utility fails to meet the efficiency standard | ||||||
25 | specified in subsection (c) of this Section, as modified by | ||||||
26 | subsection (d) of this Section, in any 2 consecutive |
| |||||||
| |||||||
1 | multi-year planning periods, then the responsibility for | ||||||
2 | implementing the utility's energy efficiency measures shall be | ||||||
3 | transferred to an independent program administrator selected | ||||||
4 | by the Commission. Reasonable and prudent costs incurred by | ||||||
5 | the independent program administrator to meet the efficiency | ||||||
6 | standard specified in subsection (c) of this Section, as | ||||||
7 | modified by subsection (d) of this Section, may be recovered | ||||||
8 | from the customers of the affected gas utilities, other than | ||||||
9 | customers described in subsection (m) of this Section. The | ||||||
10 | utility shall provide the independent program administrator | ||||||
11 | with all information and assistance necessary to perform the | ||||||
12 | program administrator's duties including but not limited to | ||||||
13 | customer, account, and energy usage data, and shall allow the | ||||||
14 | program administrator to include inserts in customer bills. | ||||||
15 | The utility may recover reasonable costs associated with any | ||||||
16 | such assistance. | ||||||
17 | (j) No utility shall be deemed to have failed to meet the | ||||||
18 | energy efficiency standards to the extent any such failure is | ||||||
19 | due to a failure of the Department. | ||||||
20 | (k) Not later than January 1, 2012, the Commission shall | ||||||
21 | develop and solicit public comment on a plan to foster | ||||||
22 | statewide coordination and consistency between statutorily | ||||||
23 | mandated natural gas and electric energy efficiency programs | ||||||
24 | to reduce program or participant costs or to improve program | ||||||
25 | performance. Not later than September 1, 2013, the Commission | ||||||
26 | shall issue a report to the General Assembly containing its |
| |||||||
| |||||||
1 | findings and recommendations. | ||||||
2 | (l) This Section does not apply to a gas utility that on | ||||||
3 | January 1, 2009, provided gas service to fewer than 100,000 | ||||||
4 | customers in Illinois. | ||||||
5 | (m) Subsections (a) through (k) of this Section do not | ||||||
6 | apply to customers of a natural gas utility that have a North | ||||||
7 | American Industry Classification System code number that is | ||||||
8 | 22111 or any such code number beginning with the digits 31, 32, | ||||||
9 | or 33 and (i) annual usage in the aggregate of 4 million therms | ||||||
10 | or more within the service territory of the affected gas | ||||||
11 | utility or with aggregate usage of 8 million therms or more in | ||||||
12 | this State and complying with the provisions of item (l) of | ||||||
13 | this subsection (m); or (ii) using natural gas as feedstock | ||||||
14 | and meeting the usage requirements described in item (i) of | ||||||
15 | this subsection (m), to the extent such annual feedstock usage | ||||||
16 | is greater than 60% of the customer's total annual usage of | ||||||
17 | natural gas. | ||||||
18 | (1) Customers described in this subsection (m) of this | ||||||
19 | Section shall apply, on a form approved on or before | ||||||
20 | October 1, 2009 by the Department, to the Department to be | ||||||
21 | designated as a self-directing customer ("SDC") or as an | ||||||
22 | exempt customer using natural gas as a feedstock from | ||||||
23 | which other products are made, including, but not limited | ||||||
24 | to, feedstock for a hydrogen plant, on or before the 1st | ||||||
25 | day of February, 2010. Thereafter, application may be made | ||||||
26 | not less than 6 months before the filing date of the gas |
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1 | utility energy efficiency plan described in subsection (f) | ||||||
2 | of this Section; however, a new customer that commences | ||||||
3 | taking service from a natural gas utility after February | ||||||
4 | 1, 2010 may apply to become a SDC or exempt customer up to | ||||||
5 | 30 days after beginning service. Customers described in | ||||||
6 | this subsection (m) that have not already been approved by | ||||||
7 | the Department may apply to be designated a self-directing | ||||||
8 | customer or exempt customer, on a form approved by the | ||||||
9 | Department, between September 1, 2013 and September 30, | ||||||
10 | 2013. Customer applications that are approved by the | ||||||
11 | Department under this amendatory Act of the 98th General | ||||||
12 | Assembly shall be considered to be a self-directing | ||||||
13 | customer or exempt customer, as applicable, for the | ||||||
14 | current 3-year planning period effective December 1, 2013. | ||||||
15 | Such application shall contain the following: | ||||||
16 | (A) the customer's certification that, at the time | ||||||
17 | of its application, it qualifies to be a SDC or exempt | ||||||
18 | customer described in this subsection (m) of this | ||||||
19 | Section; | ||||||
20 | (B) in the case of a SDC, the customer's | ||||||
21 | certification that it has established or will | ||||||
22 | establish by the beginning of the utility's multi-year | ||||||
23 | planning period commencing subsequent to the | ||||||
24 | application, and will maintain for accounting | ||||||
25 | purposes, an energy efficiency reserve account and | ||||||
26 | that the customer will accrue funds in said account to |
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1 | be held for the purpose of funding, in whole or in | ||||||
2 | part, energy efficiency measures of the customer's | ||||||
3 | choosing, which may include, but are not limited to, | ||||||
4 | projects involving combined heat and power systems | ||||||
5 | that use the same energy source both for the | ||||||
6 | generation of electrical or mechanical power and the | ||||||
7 | production of steam or another form of useful thermal | ||||||
8 | energy or the use of combustible gas produced from | ||||||
9 | biomass, or both; | ||||||
10 | (C) in the case of a SDC, the customer's | ||||||
11 | certification that annual funding levels for the | ||||||
12 | energy efficiency reserve account will be equal to 2% | ||||||
13 | of the customer's cost of natural gas, composed of the | ||||||
14 | customer's commodity cost and the delivery service | ||||||
15 | charges paid to the gas utility, or $150,000, | ||||||
16 | whichever is less; | ||||||
17 | (D) in the case of a SDC, the customer's | ||||||
18 | certification that the required reserve account | ||||||
19 | balance will be capped at 3 years' worth of accruals | ||||||
20 | and that the customer may, at its option, make further | ||||||
21 | deposits to the account to the extent such deposit | ||||||
22 | would increase the reserve account balance above the | ||||||
23 | designated cap level; | ||||||
24 | (E) in the case of a SDC, the customer's | ||||||
25 | certification that by October 1 of each year, | ||||||
26 | beginning no sooner than October 1, 2012, the customer |
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1 | will report to the Department information, for the | ||||||
2 | 12-month period ending May 31 of the same year, on all | ||||||
3 | deposits and reductions, if any, to the reserve | ||||||
4 | account during the reporting year, and to the extent | ||||||
5 | deposits to the reserve account in any year are in an | ||||||
6 | amount less than $150,000, the basis for such reduced | ||||||
7 | deposits; reserve account balances by month; a | ||||||
8 | description of energy efficiency measures undertaken | ||||||
9 | by the customer and paid for in whole or in part with | ||||||
10 | funds from the reserve account; an estimate of the | ||||||
11 | energy saved, or to be saved, by the measure; and that | ||||||
12 | the report shall include a verification by an officer | ||||||
13 | or plant manager of the customer or by a registered | ||||||
14 | professional engineer or certified energy efficiency | ||||||
15 | trade professional that the funds withdrawn from the | ||||||
16 | reserve account were used for the energy efficiency | ||||||
17 | measures; | ||||||
18 | (F) in the case of an exempt customer, the | ||||||
19 | customer's certification of the level of gas usage as | ||||||
20 | feedstock in the customer's operation in a typical | ||||||
21 | year and that it will provide information establishing | ||||||
22 | this level, upon request of the Department; | ||||||
23 | (G) in the case of either an exempt customer or a | ||||||
24 | SDC, the customer's certification that it has provided | ||||||
25 | the gas utility or utilities serving the customer with | ||||||
26 | a copy of the application as filed with the |
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1 | Department; | ||||||
2 | (H) in the case of either an exempt customer or a | ||||||
3 | SDC, certification of the natural gas utility or | ||||||
4 | utilities serving the customer in Illinois including | ||||||
5 | the natural gas utility accounts that are the subject | ||||||
6 | of the application; and | ||||||
7 | (I) in the case of either an exempt customer or a | ||||||
8 | SDC, a verification signed by a plant manager or an | ||||||
9 | authorized corporate officer attesting to the | ||||||
10 | truthfulness and accuracy of the information contained | ||||||
11 | in the application. | ||||||
12 | (2) The Department shall review the application to | ||||||
13 | determine that it contains the information described in | ||||||
14 | provisions (A) through (I) of item (1) of this subsection | ||||||
15 | (m), as applicable. The review shall be completed within | ||||||
16 | 30 days after the date the application is filed with the | ||||||
17 | Department. Absent a determination by the Department | ||||||
18 | within the 30-day period, the applicant shall be | ||||||
19 | considered to be a SDC or exempt customer, as applicable, | ||||||
20 | for all subsequent multi-year planning periods, as of the | ||||||
21 | date of filing the application described in this | ||||||
22 | subsection (m). If the Department determines that the | ||||||
23 | application does not contain the applicable information | ||||||
24 | described in provisions (A) through (I) of item (1) of | ||||||
25 | this subsection (m), it shall notify the customer, in | ||||||
26 | writing, of its determination that the application does |
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1 | not contain the required information and identify the | ||||||
2 | information that is missing, and the customer shall | ||||||
3 | provide the missing information within 15 working days | ||||||
4 | after the date of receipt of the Department's | ||||||
5 | notification. | ||||||
6 | (3) The Department shall have the right to audit the | ||||||
7 | information provided in the customer's application and | ||||||
8 | annual reports to ensure continued compliance with the | ||||||
9 | requirements of this subsection. Based on the audit, if | ||||||
10 | the Department determines the customer is no longer in | ||||||
11 | compliance with the requirements of items (A) through (I) | ||||||
12 | of item (1) of this subsection (m), as applicable, the | ||||||
13 | Department shall notify the customer in writing of the | ||||||
14 | noncompliance. The customer shall have 30 days to | ||||||
15 | establish its compliance, and failing to do so, may have | ||||||
16 | its status as a SDC or exempt customer revoked by the | ||||||
17 | Department. The Department shall treat all information | ||||||
18 | provided by any customer seeking SDC status or exemption | ||||||
19 | from the provisions of this Section as strictly | ||||||
20 | confidential. | ||||||
21 | (4) Upon request, or on its own motion, the Commission | ||||||
22 | may open an investigation, no more than once every 3 years | ||||||
23 | and not before October 1, 2014, to evaluate the | ||||||
24 | effectiveness of the self-directing program described in | ||||||
25 | this subsection (m). | ||||||
26 | Customers described in this subsection (m) that applied to |
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| |||||||
1 | the Department on January 3, 2013, were approved by the | ||||||
2 | Department on February 13, 2013 to be a self-directing | ||||||
3 | customer or exempt customer, and receive natural gas from a | ||||||
4 | utility that provides gas service to at least 500,000 retail | ||||||
5 | customers in Illinois and electric service to at least | ||||||
6 | 1,000,000 retail customers in Illinois shall be considered to | ||||||
7 | be a self-directing customer or exempt customer, as | ||||||
8 | applicable, for the current 3-year planning period effective | ||||||
9 | December 1, 2013. | ||||||
10 | (n) The applicability of this Section to customers | ||||||
11 | described in subsection (m) of this Section is conditioned on | ||||||
12 | the existence of the SDC program. In no event will any | ||||||
13 | provision of this Section apply to such customers after | ||||||
14 | January 1, 2020. | ||||||
15 | (o) Utilities' 3-year energy efficiency plans approved by | ||||||
16 | the Commission on or before the effective date of this | ||||||
17 | amendatory Act of the 99th General Assembly for the period | ||||||
18 | June 1, 2014 through May 31, 2017 shall continue to be in force | ||||||
19 | and effect through December 31, 2017 so that the energy | ||||||
20 | efficiency programs set forth in those plans continue to be | ||||||
21 | offered during the period June 1, 2017 through December 31, | ||||||
22 | 2017. Each utility is authorized to increase, on a pro rata | ||||||
23 | basis, the energy savings goals and budgets approved in its | ||||||
24 | plan to reflect the additional 7 months of the plan's | ||||||
25 | operation. | ||||||
26 | (Source: P.A. 98-90, eff. 7-15-13; 98-225, eff. 8-9-13; |
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1 | 98-604, eff. 12-17-13; 99-906, eff. 6-1-17 .)
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