Bill Text: IL SB3811 | 2011-2012 | 97th General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Public Utilities Act. In provisions concerning net metering, makes changes concerning devices used to measure the flow of electricity; the methods for measuring and charging or crediting for the net electricity supplied; and the rates charged to net metering customers. Effective immediately. [Track Bill]

Status: 2012-07-18 - Public Act . . . . . . . . . 97-0824 [SB3811 Detail]

Download: Illinois-2011-SB3811-Enrolled.html

---

SB3811 Enrolled LRB097 19963 CEL 65260 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Utilities Act is amended by changing
Sections 16-107.5 and 16-111.5B as follows:
(220 ILCS 5/16-107.5)
Sec. 16-107.5. Net electricity metering.
(a) The Legislature finds and declares that a program to
provide net electricity metering, as defined in this Section,
for eligible customers can encourage private investment in
renewable energy resources, stimulate economic growth, enhance
the continued diversification of Illinois' energy resource
mix, and protect the Illinois environment.
(b) As used in this Section, (i) "eligible customer" means
a retail customer that owns or operates a solar, wind, or other
eligible renewable electrical generating facility with a rated
capacity of not more than 2,000 kilowatts that is located on
the customer's premises and is intended primarily to offset the
customer's own electrical requirements; (ii) "electricity
provider" means an electric utility or alternative retail
electric supplier; (iii) "eligible renewable electrical
generating facility" means a generator powered by solar
electric energy, wind, dedicated crops grown for electricity

SB3811 Enrolled - 2 - LRB097 19963 CEL 65260 b
generation, agricultural residues, untreated and unadulterated
wood waste, landscape trimmings, livestock manure, anaerobic
digestion of livestock or food processing waste, fuel cells or
microturbines powered by renewable fuels, or hydroelectric
energy; and (iv) "net electricity metering" (or "net metering")
means the measurement, during the billing period applicable to
an eligible customer, of the net amount of electricity supplied
by an electricity provider to the customer's premises or
provided to the electricity provider by the customer.
(c) A net metering facility shall be equipped with metering
equipment that can measure the flow of electricity in both
directions at the same rate.
(1) For eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113 of
this Act as of July 1, 2011 and whose electric delivery
service is provided and measured on a kilowatt-hour basis
and electric supply service is not provided based on hourly
pricing, this shall typically be accomplished through use
of a single, bi-directional meter. If the eligible
customer's existing electric revenue meter does not meet
this requirement, the electricity provider shall arrange
for the local electric utility or a meter service provider
to install and maintain a new revenue meter at the
electricity provider's expense.
(2) For eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113 of

SB3811 Enrolled - 3 - LRB097 19963 CEL 65260 b
this Act as of July 1, 2011 and whose electric delivery
service is provided and measured on a kilowatt demand basis
and electric supply service is not provided based on hourly
pricing, this shall typically be accomplished through use
of a dual channel meter capable of measuring the flow of
electricity both into and out of the customer's facility at
the same rate and ratio. If such customer's existing
electric revenue meter does not meet this requirement, then
the electricity provider shall arrange for the local
electric utility or a meter service provider to install and
maintain a new revenue meter at the electricity provider's
expense.
(3) For all other eligible customers, the electricity
provider may arrange for the local electric utility or a
meter service provider to install and maintain metering
equipment capable of measuring the flow of electricity both
into and out of the customer's facility at the same rate
and ratio, typically through the use of a dual channel
meter. If the eligible customer's existing electric
revenue meter does not meet this requirement, then the
costs of installing such equipment shall be paid for by the
customer.
(d) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
or provided by eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113 of the

SB3811 Enrolled - 4 - LRB097 19963 CEL 65260 b
Act as of July 1, 2011 and whose electric delivery service is
provided and measured on a kilowatt-hour basis and electric
supply service is not provided based on hourly pricing in the
following manner:
(1) If the amount of electricity used by the customer
during the billing period exceeds the amount of electricity
produced by the customer, the electricity provider shall
charge the customer for the net electricity supplied to and
used by the customer as provided in subsection (e-5) of
this Section.
(2) If the amount of electricity produced by a customer
during the billing period exceeds the amount of electricity
used by the customer during that billing period, the
electricity provider supplying that customer shall apply a
1:1 kilowatt-hour credit to a subsequent bill for service
to the customer for the net electricity supplied to the
electricity provider. The electricity provider shall
continue to carry over any excess kilowatt-hour credits
earned and apply those credits to subsequent billing
periods to offset any customer-generator consumption in
those billing periods until all credits are used or until
the end of the annualized period.
(3) At the end of the year or annualized over the
period that service is supplied by means of net metering,
or in the event that the retail customer terminates service
with the electricity provider prior to the end of the year

SB3811 Enrolled - 5 - LRB097 19963 CEL 65260 b
or the annualized period, any remaining credits in the
customer's account shall expire.
(d-5) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
or provided by eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113 of
this Act as of July 1, 2011 and whose electric delivery service
is provided and measured on a kilowatt-hour basis and electric
supply service is provided based on hourly pricing in the
following manner:
(1) If the amount of electricity used by the customer
during any hourly period exceeds the amount of electricity
produced by the customer, the electricity provider shall
charge the customer for the net electricity supplied to and
used by the customer according to the terms of the contract
or tariff to which the same customer would be assigned to
or be eligible for if the customer was not a net metering
customer.
(2) If the amount of electricity produced by a customer
during any hourly period exceeds the amount of electricity
used by the customer during that hourly period, the energy
provider shall apply a credit for the net kilowatt-hours
produced in such period. The credit shall consist of an
energy credit and a delivery service credit. The energy
credit shall be valued at the same price per kilowatt-hour
as the electric service provider would charge for

SB3811 Enrolled - 6 - LRB097 19963 CEL 65260 b
kilowatt-hour energy sales during that same hourly period.
The delivery credit shall be equal to the net
kilowatt-hours produced in such hourly period times a
credit that reflects all kilowatt-hour based charges in the
customer's electric service rate, excluding energy
charges.
(e) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
whose electric service has not been declared competitive
pursuant to Section 16-113 of this Act as of July 1, 2011 and
whose electric delivery service is provided and measured on a
kilowatt demand basis and electric supply service is not
provided based on hourly pricing in the following manner:
(1) If the amount of electricity used by the customer
during the billing period exceeds the amount of electricity
produced by the customer, then the electricity provider
shall charge the customer for the net electricity supplied
to and used by the customer as provided in subsection (e-5)
of this Section. The , provided that the electricity
provider shall assess and the customer shall remain remains
responsible for all taxes, fees, and utility delivery
charges that would otherwise be applicable to the net gross
amount of electricity used by kilowatt-hours supplied to
the eligible customer by the electricity provider.
(2) If the amount of electricity produced by a customer
during the billing period exceeds the amount of electricity

SB3811 Enrolled - 7 - LRB097 19963 CEL 65260 b
used by the customer during that billing period, then the
electricity provider supplying that customer shall apply a
1:1 kilowatt-hour credit that reflects the kilowatt-hour
based charges in the customer's electric service rate to a
subsequent bill for service to the customer for the net
electricity supplied to the electricity provider. The
electricity provider shall continue to carry over any
excess kilowatt-hour credits earned and apply those
credits to subsequent billing periods to offset any
customer-generator consumption in those billing periods
until all credits are used or until the end of the
annualized period.
(3) At the end of the year or annualized over the
period that service is supplied by means of net metering,
or in the event that the retail customer terminates service
with the electricity provider prior to the end of the year
or the annualized period, any remaining credits in the
customer's account shall expire.
(e-5) An electricity provider shall provide electric
service to eligible customers whose electric service has not
been declared competitive pursuant to Section 16-113 of this
Act and whose electric supply service is not provided based on
hourly pricing who utilize net metering at non-discriminatory
rates that are identical, with respect to rate structure,
retail rate components, and any monthly charges, to the rates
that the customer would be charged if not a net metering

SB3811 Enrolled - 8 - LRB097 19963 CEL 65260 b
customer. An electricity provider shall not charge net metering
customers any fee or charge or require additional equipment,
insurance, or any other requirements not specifically
authorized by interconnection standards authorized by the
Commission, unless the fee, charge, or other requirement would
apply to other similarly situated customers who are not net
metering customers. The customer will remain responsible for
all taxes, fees, and utility delivery charges that would
otherwise be applicable to the net amount of electricity used
by the customer. Subsections (c) through (e) of this Section
shall not be construed to prevent an arms-length agreement
between an electricity provider and an eligible customer that
sets forth different prices, terms, and conditions for the
provision of net metering service, including, but not limited
to, the provision of the appropriate metering equipment for
non-residential customers.
(f) Notwithstanding the requirements of subsections (c)
through (e-5) of this Section, an electricity provider must
require dual-channel metering for customers operating eligible
renewable electrical generating facilities with a nameplate
rating up to 2,000 kilowatts and to whom the provisions of
neither subsection (d), (d-5), nor (e) of this Section apply.
In such cases, electricity charges and credits shall be
determined as follows:
(1) The electricity provider shall assess and the
customer remains responsible for all taxes, fees, and

SB3811 Enrolled - 9 - LRB097 19963 CEL 65260 b
utility delivery charges that would otherwise be
applicable to the gross amount of kilowatt-hours supplied
to the eligible customer by the electricity provider.
(2) Each month that service is supplied by means of
dual-channel metering, the electricity provider shall
compensate the eligible customer for any excess
kilowatt-hour credits at the electricity provider's
avoided cost of electricity supply over the monthly period
or as otherwise specified by the terms of a power-purchase
agreement negotiated between the customer and electricity
provider.
(3) For all eligible net metering customers taking
service from an electricity provider under contracts or
tariffs employing time of use rates, any monthly
consumption of electricity shall be calculated according
to the terms of the contract or tariff to which the same
customer would be assigned to or be eligible for if the
customer was not a net metering customer. When those same
customer-generators are net generators during any discrete
time of use period, the net kilowatt-hours produced shall
be valued at the same price per kilowatt-hour as the
electric service provider would charge for retail
kilowatt-hour sales during that same time of use period.
(g) For purposes of federal and State laws providing
renewable energy credits or greenhouse gas credits, the
eligible customer shall be treated as owning and having title

SB3811 Enrolled - 10 - LRB097 19963 CEL 65260 b
to the renewable energy attributes, renewable energy credits,
and greenhouse gas emission credits related to any electricity
produced by the qualified generating unit. The electricity
provider may not condition participation in a net metering
program on the signing over of a customer's renewable energy
credits; provided, however, this subsection (g) shall not be
construed to prevent an arms-length agreement between an
electricity provider and an eligible customer that sets forth
the ownership or title of the credits.
(h) Within 120 days after the effective date of this
amendatory Act of the 95th General Assembly, the Commission
shall establish standards for net metering and, if the
Commission has not already acted on its own initiative,
standards for the interconnection of eligible renewable
generating equipment to the utility system. The
interconnection standards shall address any procedural
barriers, delays, and administrative costs associated with the
interconnection of customer-generation while ensuring the
safety and reliability of the units and the electric utility
system. The Commission shall consider the Institute of
Electrical and Electronics Engineers (IEEE) Standard 1547 and
the issues of (i) reasonable and fair fees and costs, (ii)
clear timelines for major milestones in the interconnection
process, (iii) nondiscriminatory terms of agreement, and (iv)
any best practices for interconnection of distributed
generation.

SB3811 Enrolled - 11 - LRB097 19963 CEL 65260 b
(i) All electricity providers shall begin to offer net
metering no later than April 1, 2008.
(j) An electricity provider shall provide net metering to
eligible customers until the load of its net metering customers
equals 5% of the total peak demand supplied by that electricity
provider during the previous year. Electricity providers are
authorized to offer net metering beyond the 5% level if they so
choose.
(k) Each electricity provider shall maintain records and
report annually to the Commission the total number of net
metering customers served by the provider, as well as the type,
capacity, and energy sources of the generating systems used by
the net metering customers. Nothing in this Section shall limit
the ability of an electricity provider to request the redaction
of information deemed by the Commission to be confidential
business information. Each electricity provider shall notify
the Commission when the total generating capacity of its net
metering customers is equal to or in excess of the 5% cap
specified in subsection (j) of this Section.
(l) Notwithstanding the definition of "eligible customer"
in item (i) of subsection (b) of this Section, each electricity
provider shall consider whether to allow meter aggregation for
the purposes of net metering on:
(1) properties owned or leased by multiple customers
that contribute to the operation of an eligible renewable
electrical generating facility, such as a community-owned

SB3811 Enrolled - 12 - LRB097 19963 CEL 65260 b
wind project, a community-owned biomass project, a
community-owned solar project, or a community methane
digester processing livestock waste from multiple sources;
and
(2) individual units, apartments, or properties owned
or leased by multiple customers and collectively served by
a common eligible renewable electrical generating
facility, such as an apartment building served by
photovoltaic panels on the roof.
For the purposes of this subsection (l), "meter
aggregation" means the combination of reading and billing on a
pro rata basis for the types of eligible customers described in
this Section.
(m) Nothing in this Section shall affect the right of an
electricity provider to continue to provide, or the right of a
retail customer to continue to receive service pursuant to a
contract for electric service between the electricity provider
and the retail customer in accordance with the prices, terms,
and conditions provided for in that contract. Either the
electricity provider or the customer may require compliance
with the prices, terms, and conditions of the contract.
(Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11.)
(220 ILCS 5/16-111.5B)
Sec. 16-111.5B. Provisions relating to energy efficiency
procurement.

SB3811 Enrolled - 13 - LRB097 19963 CEL 65260 b
(a) Beginning in 2012, procurement plans prepared pursuant
to Section 16-111.5 of this Act shall be subject to the
following additional requirements:
(1) The analysis included pursuant to paragraph (2) of
subsection (b) of Section 16-111.5 shall also include the
impact of energy efficiency building codes or appliance
standards, both current and projected.
(2) The procurement plan components described in
subsection (b) of Section 16-111.5 shall also include an
assessment of opportunities to expand the programs
promoting energy efficiency measures that have been
offered under plans approved pursuant to Section 8-103 of
this Act or to implement additional cost-effective energy
efficiency programs or measures.
(3) In addition to the information provided pursuant to
paragraph (1) of subsection (d) of Section 16-111.5 of this
Act, each Illinois utility procuring power pursuant to that
Section shall annually provide to the Illinois Power Agency
by July 15 of each year, or such other date as may be
required by the Commission or Agency, an assessment of
cost-effective energy efficiency programs or measures that
could be included in the procurement plan. The assessment
shall include the following:
(A) A comprehensive energy efficiency potential
study for the utility's service territory that was
completed within the past 3 years.

SB3811 Enrolled - 14 - LRB097 19963 CEL 65260 b
(B) Beginning in 2014, the most recent analysis
submitted pursuant to Section 8-103A of this Act and
approved by the Commission under subsection (f) of
Section 8-103 of this Act.
(C) Identification of new or expanded
cost-effective energy efficiency programs or measures
that are incremental to those included in energy
efficiency and demand-response plans approved by the
Commission pursuant to Section 8-103 of this Act and
that would be offered to all retail customers whose
electric service has not been declared competitive
under Section 16-113 of this Act and who are eligible
to purchase power and energy from the utility under
fixed-price bundled service tariffs, regardless of
whether such customers actually do purchase such power
and energy from the utility eligible retail customers.
(D) Analysis showing that the new or expanded
cost-effective energy efficiency programs or measures
would lead to a reduction in the overall cost of
electric service.
(E) Analysis of how the cost of procuring
additional cost-effective energy efficiency measures
compares over the life of the measures to the
prevailing cost of comparable supply.
(F) An energy savings goal, expressed in
megawatt-hours, for the year in which the measures will

SB3811 Enrolled - 15 - LRB097 19963 CEL 65260 b
be implemented.
(G) For each expanded or new program, the estimated
amount that the program may reduce the agency's need to
procure supply.
In preparing such assessments, a utility shall conduct
an annual solicitation process for purposes of requesting
proposals from third-party vendors, the results of which
shall be provided to the Agency as part of the assessment,
including documentation of all bids received. The utility
shall develop requests for proposals consistent with the
manner in which it develops requests for proposals under
plans approved pursuant to Section 8-103 of this Act, which
considers input from the Agency and interested
stakeholders.
(4) The Illinois Power Agency shall include in the
procurement plan prepared pursuant to paragraph (2) of
subsection (d) of Section 16-111.5 of this Act energy
efficiency programs and measures it determines are
cost-effective and the associated annual energy savings
goal included in the annual solicitation process and
assessment submitted pursuant to paragraph (3) of this
subsection (a).
(5) Pursuant to paragraph (4) of subsection (d) of
Section 16-111.5 of this Act, the Commission shall also
approve the energy efficiency programs and measures
included in the procurement plan, including the annual

SB3811 Enrolled - 16 - LRB097 19963 CEL 65260 b
energy savings goal, if the Commission determines they
fully capture the potential for all achievable
cost-effective savings, to the extent practicable, and
otherwise satisfy the requirements of Section 8-103 of this
Act.
In the event the Commission approves the procurement of
additional energy efficiency, it shall reduce the amount of
power to be procured under the procurement plan to reflect
the additional energy efficiency and shall direct the
utility to undertake the procurement of such energy
efficiency, which shall not be subject to the requirements
of subsection (e) of Section 16-111.5 of this Act. The
utility shall consider input from the Agency and interested
stakeholders on the procurement and administration
process.
(6) An electric utility shall recover its costs
incurred under this Section related to the implementation
of energy efficiency programs and measures approved by the
Commission in its order approving the procurement plan
under Section 16-111.5 of this Act, including, but not
limited to, all costs associated with complying with this
Section and all start-up and administrative costs and the
costs for any evaluation, measurement, and verification of
the measures, from all retail customers whose electric
service has not been declared competitive under Section
16-113 of this Act and who are eligible to purchase power

SB3811 Enrolled - 17 - LRB097 19963 CEL 65260 b
and energy from the utility under fixed-price bundled
service tariffs, regardless of whether such customers
actually do purchase such power and energy from the utility
eligible retail customers through the automatic adjustment
clause tariff established pursuant to Section 8-103 of this
Act, provided, however, that the limitations described in
subsection (d) of that Section shall not apply to the costs
incurred pursuant to this Section or Section 16-111.7 of
this Act.
(b) For purposes of this Section, the term "energy
efficiency" shall have the meaning set forth in Section 1-10 of
the Illinois Power Agency Act, and the term "cost-effective"
shall have the meaning set forth in subsection (a) of Section
8-103 of this Act. In addition, the estimated costs to acquire
an additional energy efficiency measure, when divided by the
number of kilowatt-hours expected to be saved over the life of
the measure, shall be less than or equal to the electricity
costs that would be avoided as a result of the energy
efficiency measure.
(Source: P.A. 97-616, eff. 10-26-11.)
Section 99. Effective date. This Act takes effect upon
becoming law.