Bill Text: IL HB2956 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Public Utilities Act. Removes language exempting retail customers of an electric utility that serves more than 3,000,000 retail customers in the State and whose total highest 30-minute demand was more than 10,000 kilowatts and retail customers of an electric utility that serves less than 3,000,000 retail customers but more than 500,000 retail customers in the State and whose total highest 15-minute demand was more than 10,000 kilowatts from certain provisions concerning energy efficiency and demand-response measures. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2019-04-02 - Added Co-Sponsor Rep. Elizabeth Hernandez [HB2956 Detail]

Download: Illinois-2019-HB2956-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB2956 Introduced , by Rep. William Davis SYNOPSIS AS INTRODUCED:
220 ILCS 5/8-103B
Amends the Public Utilities Act. Removes language exempting retail customers of an electric utility that serves more than 3,000,000 retail customers in the State and whose total highest 30-minute demand was more than 10,000 kilowatts and retail customers of an electric utility that serves less than 3,000,000 retail customers but more than 500,000 retail customers in the State and whose total highest 15-minute demand was more than 10,000 kilowatts from certain provisions concerning energy efficiency and demand-response measures. Makes other changes. Effective immediately.
LRB101 09743 JRG 54844 b
A BILL FOR
HB2956 LRB101 09743 JRG 54844 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
Section 8-103B as follows:
(220 ILCS 5/8-103B)
Sec. 8-103B. Energy efficiency and demand-response
measures.
(a) It is the policy of the State that electric utilities
are required to use cost-effective energy efficiency and
demand-response measures to reduce delivery load. Requiring
investment in cost-effective energy efficiency and
demand-response measures will reduce direct and indirect costs
to consumers by decreasing environmental impacts and by
avoiding or delaying the need for new generation, transmission,
and distribution infrastructure. It serves the public interest
to allow electric utilities to recover costs for reasonably and
prudently incurred expenditures for energy efficiency and
demand-response measures. As used in this Section,
"cost-effective" means that the measures satisfy the total
resource cost test. The low-income measures described in
subsection (c) of this Section shall not be required to meet
the total resource cost test. For purposes of this Section, the

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terms "energy-efficiency", "demand-response", "electric
utility", and "total resource cost test" have the meanings set
forth in the Illinois Power Agency Act.
(a-5) This Section applies to electric utilities serving
more than 500,000 retail customers in the State for those
multi-year plans commencing after December 31, 2017.
(b) For purposes of this Section, electric utilities
subject to this Section that serve more than 3,000,000 retail
customers in the State shall be deemed to have achieved a
cumulative persisting annual savings of 6.6% from energy
efficiency measures and programs implemented during the period
beginning January 1, 2012 and ending December 31, 2017, which
percent is based on the deemed average weather normalized sales
of electric power and energy during calendar years 2014, 2015,
and 2016 of 88,000,000 MWhs. For the purposes of this
subsection (b) and subsection (b-5), the 88,000,000 MWhs of
deemed electric power and energy sales shall be reduced by the
number of MWhs equal to the sum of the annual consumption of
customers that are exempt from subsections (a) through (j) of
this Section under subsection (l) of this Section, as averaged
across the calendar years 2014, 2015, and 2016. After 2017, the
deemed value of cumulative persisting annual savings from
energy efficiency measures and programs implemented during the
period beginning January 1, 2012 and ending December 31, 2017,
shall be reduced each year, as follows, and the applicable
value shall be applied to and count toward the utility's

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achievement of the cumulative persisting annual savings goals
set forth in subsection (b-5):
(1) 5.8% deemed cumulative persisting annual savings
for the year ending December 31, 2018;
(2) 5.2% deemed cumulative persisting annual savings
for the year ending December 31, 2019;
(3) 4.5% deemed cumulative persisting annual savings
for the year ending December 31, 2020;
(4) 4.0% deemed cumulative persisting annual savings
for the year ending December 31, 2021;
(5) 3.5% deemed cumulative persisting annual savings
for the year ending December 31, 2022;
(6) 3.1% deemed cumulative persisting annual savings
for the year ending December 31, 2023;
(7) 2.8% deemed cumulative persisting annual savings
for the year ending December 31, 2024;
(8) 2.5% deemed cumulative persisting annual savings
for the year ending December 31, 2025;
(9) 2.3% deemed cumulative persisting annual savings
for the year ending December 31, 2026;
(10) 2.1% deemed cumulative persisting annual savings
for the year ending December 31, 2027;
(11) 1.8% deemed cumulative persisting annual savings
for the year ending December 31, 2028;
(12) 1.7% deemed cumulative persisting annual savings
for the year ending December 31, 2029; and

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(13) 1.5% deemed cumulative persisting annual savings
for the year ending December 31, 2030.
For purposes of this Section, "cumulative persisting
annual savings" means the total electric energy savings in a
given year from measures installed in that year or in previous
years, but no earlier than January 1, 2012, that are still
operational and providing savings in that year because the
measures have not yet reached the end of their useful lives.
(b-5) Beginning in 2018, electric utilities subject to this
Section that serve more than 3,000,000 retail customers in the
State shall achieve the following cumulative persisting annual
savings goals, as modified by subsection (f) of this Section
and as compared to the deemed baseline of 88,000,000 MWhs of
electric power and energy sales set forth in subsection (b), as
reduced by the number of MWhs equal to the sum of the annual
consumption of customers that are exempt from subsections (a)
through (j) of this Section under subsection (l) of this
Section as averaged across the calendar years 2014, 2015, and
2016, through the implementation of energy efficiency measures
during the applicable year and in prior years, but no earlier
than January 1, 2012:
(1) 7.8% cumulative persisting annual savings for the
year ending December 31, 2018;
(2) 9.1% cumulative persisting annual savings for the
year ending December 31, 2019;
(3) 10.4% cumulative persisting annual savings for the

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year ending December 31, 2020;
(4) 11.8% cumulative persisting annual savings for the
year ending December 31, 2021;
(5) 13.1% cumulative persisting annual savings for the
year ending December 31, 2022;
(6) 14.4% cumulative persisting annual savings for the
year ending December 31, 2023;
(7) 15.7% cumulative persisting annual savings for the
year ending December 31, 2024;
(8) 17% cumulative persisting annual savings for the
year ending December 31, 2025;
(9) 17.9% cumulative persisting annual savings for the
year ending December 31, 2026;
(10) 18.8% cumulative persisting annual savings for
the year ending December 31, 2027;
(11) 19.7% cumulative persisting annual savings for
the year ending December 31, 2028;
(12) 20.6% cumulative persisting annual savings for
the year ending December 31, 2029; and
(13) 21.5% cumulative persisting annual savings for
the year ending December 31, 2030.
(b-10) For purposes of this Section, electric utilities
subject to this Section that serve less than 3,000,000 retail
customers but more than 500,000 retail customers in the State
shall be deemed to have achieved a cumulative persisting annual
savings of 6.6% from energy efficiency measures and programs

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implemented during the period beginning January 1, 2012 and
ending December 31, 2017, which is based on the deemed average
weather normalized sales of electric power and energy during
calendar years 2014, 2015, and 2016 of 36,900,000 MWhs. For the
purposes of this subsection (b-10) and subsection (b-15), the
36,900,000 MWhs of deemed electric power and energy sales shall
be reduced by the number of MWhs equal to the sum of the annual
consumption of customers that are exempt from subsections (a)
through (j) of this Section under subsection (l) of this
Section, as averaged across the calendar years 2014, 2015, and
2016. After 2017, the deemed value of cumulative persisting
annual savings from energy efficiency measures and programs
implemented during the period beginning January 1, 2012 and
ending December 31, 2017, shall be reduced each year, as
follows, and the applicable value shall be applied to and count
toward the utility's achievement of the cumulative persisting
annual savings goals set forth in subsection (b-15):
(1) 5.8% deemed cumulative persisting annual savings
for the year ending December 31, 2018;
(2) 5.2% deemed cumulative persisting annual savings
for the year ending December 31, 2019;
(3) 4.5% deemed cumulative persisting annual savings
for the year ending December 31, 2020;
(4) 4.0% deemed cumulative persisting annual savings
for the year ending December 31, 2021;
(5) 3.5% deemed cumulative persisting annual savings

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for the year ending December 31, 2022;
(6) 3.1% deemed cumulative persisting annual savings
for the year ending December 31, 2023;
(7) 2.8% deemed cumulative persisting annual savings
for the year ending December 31, 2024;
(8) 2.5% deemed cumulative persisting annual savings
for the year ending December 31, 2025;
(9) 2.3% deemed cumulative persisting annual savings
for the year ending December 31, 2026;
(10) 2.1% deemed cumulative persisting annual savings
for the year ending December 31, 2027;
(11) 1.8% deemed cumulative persisting annual savings
for the year ending December 31, 2028;
(12) 1.7% deemed cumulative persisting annual savings
for the year ending December 31, 2029; and
(13) 1.5% deemed cumulative persisting annual savings
for the year ending December 31, 2030.
(b-15) Beginning in 2018, electric utilities subject to
this Section that serve less than 3,000,000 retail customers
but more than 500,000 retail customers in the State shall
achieve the following cumulative persisting annual savings
goals, as modified by subsection (b-20) and subsection (f) of
this Section and as compared to the deemed baseline as reduced
by the number of MWhs equal to the sum of the annual
consumption of customers that are exempt from subsections (a)
through (j) of this Section under subsection (l) of this

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Section as averaged across the calendar years 2014, 2015, and
2016, through the implementation of energy efficiency measures
during the applicable year and in prior years, but no earlier
than January 1, 2012:
(1) 7.4% cumulative persisting annual savings for the
year ending December 31, 2018;
(2) 8.2% cumulative persisting annual savings for the
year ending December 31, 2019;
(3) 9.0% cumulative persisting annual savings for the
year ending December 31, 2020;
(4) 9.8% cumulative persisting annual savings for the
year ending December 31, 2021;
(5) 10.6% cumulative persisting annual savings for the
year ending December 31, 2022;
(6) 11.4% cumulative persisting annual savings for the
year ending December 31, 2023;
(7) 12.2% cumulative persisting annual savings for the
year ending December 31, 2024;
(8) 13% cumulative persisting annual savings for the
year ending December 31, 2025;
(9) 13.6% cumulative persisting annual savings for the
year ending December 31, 2026;
(10) 14.2% cumulative persisting annual savings for
the year ending December 31, 2027;
(11) 14.8% cumulative persisting annual savings for
the year ending December 31, 2028;

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(12) 15.4% cumulative persisting annual savings for
the year ending December 31, 2029; and
(13) 16% cumulative persisting annual savings for the
year ending December 31, 2030.
The difference between the cumulative persisting annual
savings goal for the applicable calendar year and the
cumulative persisting annual savings goal for the immediately
preceding calendar year is 0.8% for the period of January 1,
2018 through December 31, 2025 and 0.6% for the period of
January 1, 2026 through December 31, 2030.
(b-20) Each electric utility subject to this Section may
include cost-effective voltage optimization measures in its
plans submitted under subsections (f) and (g) of this Section,
and the costs incurred by a utility to implement the measures
under a Commission-approved plan shall be recovered under the
provisions of Article IX or Section 16-108.5 of this Act. For
purposes of this Section, the measure life of voltage
optimization measures shall be 15 years. The measure life
period is independent of the depreciation rate of the voltage
optimization assets deployed.
Within 270 days after June 1, 2017 (the effective date of
Public Act 99-906) this amendatory Act of the 99th General
Assembly, an electric utility that serves less than 3,000,000
retail customers but more than 500,000 retail customers in the
State shall file a plan with the Commission that identifies the
cost-effective voltage optimization investment the electric

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utility plans to undertake through December 31, 2024. The
Commission, after notice and hearing, shall approve or approve
with modification the plan within 120 days after the plan's
filing and, in the order approving or approving with
modification the plan, the Commission shall adjust the
applicable cumulative persisting annual savings goals set
forth in subsection (b-15) to reflect any amount of
cost-effective energy savings approved by the Commission that
is greater than or less than the following cumulative
persisting annual savings values attributable to voltage
optimization for the applicable year:
(1) 0.0% of cumulative persisting annual savings for
the year ending December 31, 2018;
(2) 0.17% of cumulative persisting annual savings for
the year ending December 31, 2019;
(3) 0.17% of cumulative persisting annual savings for
the year ending December 31, 2020;
(4) 0.33% of cumulative persisting annual savings for
the year ending December 31, 2021;
(5) 0.5% of cumulative persisting annual savings for
the year ending December 31, 2022;
(6) 0.67% of cumulative persisting annual savings for
the year ending December 31, 2023;
(7) 0.83% of cumulative persisting annual savings for
the year ending December 31, 2024; and
(8) 1.0% of cumulative persisting annual savings for

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the year ending December 31, 2025.
(b-25) In the event an electric utility jointly offers an
energy efficiency measure or program with a gas utility under
plans approved under this Section and Section 8-104 of this
Act, the electric utility may continue offering the program,
including the gas energy efficiency measures, in the event the
gas utility discontinues funding the program. In that event,
the energy savings value associated with such other fuels shall
be converted to electric energy savings on an equivalent Btu
basis for the premises. However, the electric utility shall
prioritize programs for low-income residential customers to
the extent practicable. An electric utility may recover the
costs of offering the gas energy efficiency measures under this
subsection (b-25).
For those energy efficiency measures or programs that save
both electricity and other fuels but are not jointly offered
with a gas utility under plans approved under this Section and
Section 8-104 or not offered with an affiliated gas utility
under paragraph (6) of subsection (f) of Section 8-104 of this
Act, the electric utility may count savings of fuels other than
electricity toward the achievement of its annual savings goal,
and the energy savings value associated with such other fuels
shall be converted to electric energy savings on an equivalent
Btu basis at the premises.
In no event shall more than 10% of each year's applicable
annual incremental goal as defined in paragraph (7) of

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subsection (g) of this Section be met through savings of fuels
other than electricity.
(c) Electric utilities shall be responsible for overseeing
the design, development, and filing of energy efficiency plans
with the Commission and may, as part of that implementation,
outsource various aspects of program development and
implementation. A minimum of 10%, for electric utilities that
serve more than 3,000,000 retail customers in the State, and a
minimum of 7%, for electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State, of the utility's entire portfolio
funding level for a given year shall be used to procure
cost-effective energy efficiency measures from units of local
government, municipal corporations, school districts, public
housing, and community college districts, provided that a
minimum percentage of available funds shall be used to procure
energy efficiency from public housing, which percentage shall
be equal to public housing's share of public building energy
consumption.
The utilities shall also implement energy efficiency
measures targeted at low-income households, which, for
purposes of this Section, shall be defined as households at or
below 80% of area median income, and expenditures to implement
the measures shall be no less than $25,000,000 per year for
electric utilities that serve more than 3,000,000 retail
customers in the State and no less than $8,350,000 per year for

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electric utilities that serve less than 3,000,000 retail
customers but more than 500,000 retail customers in the State.
Each electric utility shall assess opportunities to
implement cost-effective energy efficiency measures and
programs through a public housing authority or authorities
located in its service territory. If such opportunities are
identified, the utility shall propose such measures and
programs to address the opportunities. Expenditures to address
such opportunities shall be credited toward the minimum
procurement and expenditure requirements set forth in this
subsection (c).
Implementation of energy efficiency measures and programs
targeted at low-income households should be contracted, when it
is practicable, to independent third parties that have
demonstrated capabilities to serve such households, with a
preference for not-for-profit entities and government agencies
that have existing relationships with or experience serving
low-income communities in the State.
Each electric utility shall develop and implement
reporting procedures that address and assist in determining the
amount of energy savings that can be applied to the low-income
procurement and expenditure requirements set forth in this
subsection (c).
The electric utilities shall also convene a low-income
energy efficiency advisory committee to assist in the design
and evaluation of the low-income energy efficiency programs.

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The committee shall be comprised of the electric utilities
subject to the requirements of this Section, the gas utilities
subject to the requirements of Section 8-104 of this Act, the
utilities' low-income energy efficiency implementation
contractors, and representatives of community-based
organizations.
(d) Notwithstanding any other provision of law to the
contrary, a utility providing approved energy efficiency
measures and, if applicable, demand-response measures in the
State shall be permitted to recover all reasonable and
prudently incurred costs of those measures from all retail
customers, except as provided in subsection (l) of this
Section, as follows, provided that nothing in this subsection
(d) permits the double recovery of such costs from customers:
(1) The utility may recover its costs through an
automatic adjustment clause tariff filed with and approved
by the Commission. The tariff shall be established outside
the context of a general rate case. Each year the
Commission shall initiate a review to reconcile any amounts
collected with the actual costs and to determine the
required adjustment to the annual tariff factor to match
annual expenditures. To enable the financing of the
incremental capital expenditures, including regulatory
assets, for electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State, the utility's actual year-end

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capital structure that includes a common equity ratio,
excluding goodwill, of up to and including 50% of the total
capital structure shall be deemed reasonable and used to
set rates.
(2) A utility may recover its costs through an energy
efficiency formula rate approved by the Commission under a
filing under subsections (f) and (g) of this Section, which
shall specify the cost components that form the basis of
the rate charged to customers with sufficient specificity
to operate in a standardized manner and be updated annually
with transparent information that reflects the utility's
actual costs to be recovered during the applicable rate
year, which is the period beginning with the first billing
day of January and extending through the last billing day
of the following December. The energy efficiency formula
rate shall be implemented through a tariff filed with the
Commission under subsections (f) and (g) of this Section
that is consistent with the provisions of this paragraph
(2) and that shall be applicable to all delivery services
customers. The Commission shall conduct an investigation
of the tariff in a manner consistent with the provisions of
this paragraph (2), subsections (f) and (g) of this
Section, and the provisions of Article IX of this Act to
the extent they do not conflict with this paragraph (2).
The energy efficiency formula rate approved by the
Commission shall remain in effect at the discretion of the

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utility and shall do the following:
(A) Provide for the recovery of the utility's
actual costs incurred under this Section that are
prudently incurred and reasonable in amount consistent
with Commission practice and law. The sole fact that a
cost differs from that incurred in a prior calendar
year or that an investment is different from that made
in a prior calendar year shall not imply the imprudence
or unreasonableness of that cost or investment.
(B) Reflect the utility's actual year-end capital
structure for the applicable calendar year, excluding
goodwill, subject to a determination of prudence and
reasonableness consistent with Commission practice and
law. To enable the financing of the incremental capital
expenditures, including regulatory assets, for
electric utilities that serve less than 3,000,000
retail customers but more than 500,000 retail
customers in the State, a participating electric
utility's actual year-end capital structure that
includes a common equity ratio, excluding goodwill, of
up to and including 50% of the total capital structure
shall be deemed reasonable and used to set rates.
(C) Include a cost of equity, which shall be
calculated as the sum of the following:
(i) the average for the applicable calendar
year of the monthly average yields of 30-year U.S.

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Treasury bonds published by the Board of Governors
of the Federal Reserve System in its weekly H.15
Statistical Release or successor publication; and
(ii) 580 basis points.
At such time as the Board of Governors of the
Federal Reserve System ceases to include the monthly
average yields of 30-year U.S. Treasury bonds in its
weekly H.15 Statistical Release or successor
publication, the monthly average yields of the U.S.
Treasury bonds then having the longest duration
published by the Board of Governors in its weekly H.15
Statistical Release or successor publication shall
instead be used for purposes of this paragraph (2).
(D) Permit and set forth protocols, subject to a
determination of prudence and reasonableness
consistent with Commission practice and law, for the
following:
(i) recovery of incentive compensation expense
that is based on the achievement of operational
metrics, including metrics related to budget
controls, outage duration and frequency, safety,
customer service, efficiency and productivity, and
environmental compliance; however, this protocol
shall not apply if such expense related to costs
incurred under this Section is recovered under
Article IX or Section 16-108.5 of this Act;

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incentive compensation expense that is based on
net income or an affiliate's earnings per share
shall not be recoverable under the energy
efficiency formula rate;
(ii) recovery of pension and other
post-employment benefits expense, provided that
such costs are supported by an actuarial study;
however, this protocol shall not apply if such
expense related to costs incurred under this
Section is recovered under Article IX or Section
16-108.5 of this Act;
(iii) recovery of existing regulatory assets
over the periods previously authorized by the
Commission;
(iv) as described in subsection (e),
amortization of costs incurred under this Section;
and
(v) projected, weather normalized billing
determinants for the applicable rate year.
(E) Provide for an annual reconciliation, as
described in paragraph (3) of this subsection (d), less
any deferred taxes related to the reconciliation, with
interest at an annual rate of return equal to the
utility's weighted average cost of capital, including
a revenue conversion factor calculated to recover or
refund all additional income taxes that may be payable

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or receivable as a result of that return, of the energy
efficiency revenue requirement reflected in rates for
each calendar year, beginning with the calendar year in
which the utility files its energy efficiency formula
rate tariff under this paragraph (2), with what the
revenue requirement would have been had the actual cost
information for the applicable calendar year been
available at the filing date.
The utility shall file, together with its tariff, the
projected costs to be incurred by the utility during the
rate year under the utility's multi-year plan approved
under subsections (f) and (g) of this Section, including,
but not limited to, the projected capital investment costs
and projected regulatory asset balances with
correspondingly updated depreciation and amortization
reserves and expense, that shall populate the energy
efficiency formula rate and set the initial rates under the
formula.
The Commission shall review the proposed tariff in
conjunction with its review of a proposed multi-year plan,
as specified in paragraph (5) of subsection (g) of this
Section. The review shall be based on the same evidentiary
standards, including, but not limited to, those concerning
the prudence and reasonableness of the costs incurred by
the utility, the Commission applies in a hearing to review
a filing for a general increase in rates under Article IX

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of this Act. The initial rates shall take effect beginning
with the January monthly billing period following the
Commission's approval.
The tariff's rate design and cost allocation across
customer classes shall be consistent with the utility's
automatic adjustment clause tariff in effect on June 1,
2017 (the effective date of Public Act 99-906) this
amendatory Act of the 99th General Assembly; however, the
Commission may revise the tariff's rate design and cost
allocation in subsequent proceedings under paragraph (3)
of this subsection (d).
If the energy efficiency formula rate is terminated,
the then current rates shall remain in effect until such
time as the energy efficiency costs are incorporated into
new rates that are set under this subsection (d) or Article
IX of this Act, subject to retroactive rate adjustment,
with interest, to reconcile rates charged with actual
costs.
(3) The provisions of this paragraph (3) shall only
apply to an electric utility that has elected to file an
energy efficiency formula rate under paragraph (2) of this
subsection (d). Subsequent to the Commission's issuance of
an order approving the utility's energy efficiency formula
rate structure and protocols, and initial rates under
paragraph (2) of this subsection (d), the utility shall
file, on or before June 1 of each year, with the Chief

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Clerk of the Commission its updated cost inputs to the
energy efficiency formula rate for the applicable rate year
and the corresponding new charges, as well as the
information described in paragraph (9) of subsection (g) of
this Section. Each such filing shall conform to the
following requirements and include the following
information:
(A) The inputs to the energy efficiency formula
rate for the applicable rate year shall be based on the
projected costs to be incurred by the utility during
the rate year under the utility's multi-year plan
approved under subsections (f) and (g) of this Section,
including, but not limited to, projected capital
investment costs and projected regulatory asset
balances with correspondingly updated depreciation and
amortization reserves and expense. The filing shall
also include a reconciliation of the energy efficiency
revenue requirement that was in effect for the prior
rate year (as set by the cost inputs for the prior rate
year) with the actual revenue requirement for the prior
rate year (determined using a year-end rate base) that
uses amounts reflected in the applicable FERC Form 1
that reports the actual costs for the prior rate year.
Any over-collection or under-collection indicated by
such reconciliation shall be reflected as a credit
against, or recovered as an additional charge to,

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respectively, with interest calculated at a rate equal
to the utility's weighted average cost of capital
approved by the Commission for the prior rate year, the
charges for the applicable rate year. Such
over-collection or under-collection shall be adjusted
to remove any deferred taxes related to the
reconciliation, for purposes of calculating interest
at an annual rate of return equal to the utility's
weighted average cost of capital approved by the
Commission for the prior rate year, including a revenue
conversion factor calculated to recover or refund all
additional income taxes that may be payable or
receivable as a result of that return. Each
reconciliation shall be certified by the participating
utility in the same manner that FERC Form 1 is
certified. The filing shall also include the charge or
credit, if any, resulting from the calculation
required by subparagraph (E) of paragraph (2) of this
subsection (d).
Notwithstanding any other provision of law to the
contrary, the intent of the reconciliation is to
ultimately reconcile both the revenue requirement
reflected in rates for each calendar year, beginning
with the calendar year in which the utility files its
energy efficiency formula rate tariff under paragraph
(2) of this subsection (d), with what the revenue

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requirement determined using a year-end rate base for
the applicable calendar year would have been had the
actual cost information for the applicable calendar
year been available at the filing date.
For purposes of this Section, "FERC Form 1" means
the Annual Report of Major Electric Utilities,
Licensees and Others that electric utilities are
required to file with the Federal Energy Regulatory
Commission under the Federal Power Act, Sections 3,
4(a), 304 and 209, modified as necessary to be
consistent with 83 Ill. Admin. Code Part 415 as of May
1, 2011. Nothing in this Section is intended to allow
costs that are not otherwise recoverable to be
recoverable by virtue of inclusion in FERC Form 1.
(B) The new charges shall take effect beginning on
the first billing day of the following January billing
period and remain in effect through the last billing
day of the next December billing period regardless of
whether the Commission enters upon a hearing under this
paragraph (3).
(C) The filing shall include relevant and
necessary data and documentation for the applicable
rate year. Normalization adjustments shall not be
required.
Within 45 days after the utility files its annual
update of cost inputs to the energy efficiency formula

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rate, the Commission shall with reasonable notice,
initiate a proceeding concerning whether the projected
costs to be incurred by the utility and recovered during
the applicable rate year, and that are reflected in the
inputs to the energy efficiency formula rate, are
consistent with the utility's approved multi-year plan
under subsections (f) and (g) of this Section and whether
the costs incurred by the utility during the prior rate
year were prudent and reasonable. The Commission shall also
have the authority to investigate the information and data
described in paragraph (9) of subsection (g) of this
Section, including the proposed adjustment to the
utility's return on equity component of its weighted
average cost of capital. During the course of the
proceeding, each objection shall be stated with
particularity and evidence provided in support thereof,
after which the utility shall have the opportunity to rebut
the evidence. Discovery shall be allowed consistent with
the Commission's Rules of Practice, which Rules of Practice
shall be enforced by the Commission or the assigned
administrative law judge. The Commission shall apply the
same evidentiary standards, including, but not limited to,
those concerning the prudence and reasonableness of the
costs incurred by the utility, during the proceeding as it
would apply in a proceeding to review a filing for a
general increase in rates under Article IX of this Act. The

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Commission shall not, however, have the authority in a
proceeding under this paragraph (3) to consider or order
any changes to the structure or protocols of the energy
efficiency formula rate approved under paragraph (2) of
this subsection (d). In a proceeding under this paragraph
(3), the Commission shall enter its order no later than the
earlier of 195 days after the utility's filing of its
annual update of cost inputs to the energy efficiency
formula rate or December 15. The utility's proposed return
on equity calculation, as described in paragraphs (7)
through (9) of subsection (g) of this Section, shall be
deemed the final, approved calculation on December 15 of
the year in which it is filed unless the Commission enters
an order on or before December 15, after notice and
hearing, that modifies such calculation consistent with
this Section. The Commission's determinations of the
prudence and reasonableness of the costs incurred, and
determination of such return on equity calculation, for the
applicable calendar year shall be final upon entry of the
Commission's order and shall not be subject to reopening,
reexamination, or collateral attack in any other
Commission proceeding, case, docket, order, rule, or
regulation; however, nothing in this paragraph (3) shall
prohibit a party from petitioning the Commission to rehear
or appeal to the courts the order under the provisions of
this Act.

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(e) Beginning on June 1, 2017 (the effective date of Public
Act 99-906) this amendatory Act of the 99th General Assembly, a
utility subject to the requirements of this Section may elect
to defer, as a regulatory asset, up to the full amount of its
expenditures incurred under this Section for each annual
period, including, but not limited to, any expenditures
incurred above the funding level set by subsection (f) of this
Section for a given year. The total expenditures deferred as a
regulatory asset in a given year shall be amortized and
recovered over a period that is equal to the weighted average
of the energy efficiency measure lives implemented for that
year that are reflected in the regulatory asset. The
unamortized balance shall be recognized as of December 31 for a
given year. The utility shall also earn a return on the total
of the unamortized balances of all of the energy efficiency
regulatory assets, less any deferred taxes related to those
unamortized balances, at an annual rate equal to the utility's
weighted average cost of capital that includes, based on a
year-end capital structure, the utility's actual cost of debt
for the applicable calendar year and a cost of equity, which
shall be calculated as the sum of the (i) the average for the
applicable calendar year of the monthly average yields of
30-year U.S. Treasury bonds published by the Board of Governors
of the Federal Reserve System in its weekly H.15 Statistical
Release or successor publication; and (ii) 580 basis points,
including a revenue conversion factor calculated to recover or

HB2956 - 27 - LRB101 09743 JRG 54844 b
refund all additional income taxes that may be payable or
receivable as a result of that return. Capital investment costs
shall be depreciated and recovered over their useful lives
consistent with generally accepted accounting principles. The
weighted average cost of capital shall be applied to the
capital investment cost balance, less any accumulated
depreciation and accumulated deferred income taxes, as of
December 31 for a given year.
When an electric utility creates a regulatory asset under
the provisions of this Section, the costs are recovered over a
period during which customers also receive a benefit which is
in the public interest. Accordingly, it is the intent of the
General Assembly that an electric utility that elects to create
a regulatory asset under the provisions of this Section shall
recover all of the associated costs as set forth in this
Section. After the Commission has approved the prudence and
reasonableness of the costs that comprise the regulatory asset,
the electric utility shall be permitted to recover all such
costs, and the value and recoverability through rates of the
associated regulatory asset shall not be limited, altered,
impaired, or reduced.
(f) Beginning in 2017, each electric utility shall file an
energy efficiency plan with the Commission to meet the energy
efficiency standards for the next applicable multi-year period
beginning January 1 of the year following the filing, according
to the schedule set forth in paragraphs (1) through (3) of this

HB2956 - 28 - LRB101 09743 JRG 54844 b
subsection (f). If a utility does not file such a plan on or
before the applicable filing deadline for the plan, it shall
face a penalty of $100,000 per day until the plan is filed.
(1) No later than 30 days after June 1, 2017 (the
effective date of Public Act 99-906) this amendatory Act of
the 99th General Assembly or May 1, 2017, whichever is
later, each electric utility shall file a 4-year energy
efficiency plan commencing on January 1, 2018 that is
designed to achieve the cumulative persisting annual
savings goals specified in paragraphs (1) through (4) of
subsection (b-5) of this Section or in paragraphs (1)
through (4) of subsection (b-15) of this Section, as
applicable, through implementation of energy efficiency
measures; however, the goals may be reduced if the
utility's expenditures are limited pursuant to subsection
(m) of this Section or, for a utility that serves less than
3,000,000 retail customers, if each of the following
conditions are met: (A) the plan's analysis and forecasts
of the utility's ability to acquire energy savings
demonstrate that achievement of such goals is not cost
effective; and (B) the amount of energy savings achieved by
the utility as determined by the independent evaluator for
the most recent year for which savings have been evaluated
preceding the plan filing was less than the average annual
amount of savings required to achieve the goals for the
applicable 4-year plan period. Except as provided in

HB2956 - 29 - LRB101 09743 JRG 54844 b
subsection (m) of this Section, annual increases in
cumulative persisting annual savings goals during the
applicable 4-year plan period shall not be reduced to
amounts that are less than the maximum amount of cumulative
persisting annual savings that is forecast to be
cost-effectively achievable during the 4-year plan period.
The Commission shall review any proposed goal reduction as
part of its review and approval of the utility's proposed
plan.
(2) No later than March 1, 2021, each electric utility
shall file a 4-year energy efficiency plan commencing on
January 1, 2022 that is designed to achieve the cumulative
persisting annual savings goals specified in paragraphs
(5) through (8) of subsection (b-5) of this Section or in
paragraphs (5) through (8) of subsection (b-15) of this
Section, as applicable, through implementation of energy
efficiency measures; however, the goals may be reduced if
the utility's expenditures are limited pursuant to
subsection (m) of this Section or, each of the following
conditions are met: (A) the plan's analysis and forecasts
of the utility's ability to acquire energy savings
demonstrate that achievement of such goals is not cost
effective; and (B) the amount of energy savings achieved by
the utility as determined by the independent evaluator for
the most recent year for which savings have been evaluated
preceding the plan filing was less than the average annual

HB2956 - 30 - LRB101 09743 JRG 54844 b
amount of savings required to achieve the goals for the
applicable 4-year plan period. Except as provided in
subsection (m) of this Section, annual increases in
cumulative persisting annual savings goals during the
applicable 4-year plan period shall not be reduced to
amounts that are less than the maximum amount of cumulative
persisting annual savings that is forecast to be
cost-effectively achievable during the 4-year plan period.
The Commission shall review any proposed goal reduction as
part of its review and approval of the utility's proposed
plan.
(3) No later than March 1, 2025, each electric utility
shall file a 5-year energy efficiency plan commencing on
January 1, 2026 that is designed to achieve the cumulative
persisting annual savings goals specified in paragraphs
(9) through (13) of subsection (b-5) of this Section or in
paragraphs (9) through (13) of subsection (b-15) of this
Section, as applicable, through implementation of energy
efficiency measures; however, the goals may be reduced if
the utility's expenditures are limited pursuant to
subsection (m) of this Section or, each of the following
conditions are met: (A) the plan's analysis and forecasts
of the utility's ability to acquire energy savings
demonstrate that achievement of such goals is not cost
effective; and (B) the amount of energy savings achieved by
the utility as determined by the independent evaluator for

HB2956 - 31 - LRB101 09743 JRG 54844 b
the most recent year for which savings have been evaluated
preceding the plan filing was less than the average annual
amount of savings required to achieve the goals for the
applicable 5-year plan period. Except as provided in
subsection (m) of this Section, annual increases in
cumulative persisting annual savings goals during the
applicable 5-year plan period shall not be reduced to
amounts that are less than the maximum amount of cumulative
persisting annual savings that is forecast to be
cost-effectively achievable during the 5-year plan period.
The Commission shall review any proposed goal reduction as
part of its review and approval of the utility's proposed
plan.
Each utility's plan shall set forth the utility's proposals
to meet the energy efficiency standards identified in
subsection (b-5) or (b-15), as applicable and as such standards
may have been modified under this subsection (f), taking into
account the unique circumstances of the utility's service
territory. For those plans commencing on January 1, 2018, the
Commission shall seek public comment on the utility's plan and
shall issue an order approving or disapproving each plan no
later than August 31, 2017, or 105 days after June 1, 2017 (the
effective date of Public Act 99-906) this amendatory Act of the
99th General Assembly, whichever is later. For those plans
commencing after December 31, 2021, the Commission shall seek
public comment on the utility's plan and shall issue an order

HB2956 - 32 - LRB101 09743 JRG 54844 b
approving or disapproving each plan within 6 months after its
submission. If the Commission disapproves a plan, the
Commission shall, within 30 days, describe in detail the
reasons for the disapproval and describe a path by which the
utility may file a revised draft of the plan to address the
Commission's concerns satisfactorily. If the utility does not
refile with the Commission within 60 days, the utility shall be
subject to penalties at a rate of $100,000 per day until the
plan is filed. This process shall continue, and penalties shall
accrue, until the utility has successfully filed a portfolio of
energy efficiency and demand-response measures. Penalties
shall be deposited into the Energy Efficiency Trust Fund.
(g) In submitting proposed plans and funding levels under
subsection (f) of this Section to meet the savings goals
identified in subsection (b-5) or (b-15) of this Section, as
applicable, the utility shall:
(1) Demonstrate that its proposed energy efficiency
measures will achieve the applicable requirements that are
identified in subsection (b-5) or (b-15) of this Section,
as modified by subsection (f) of this Section.
(2) Present specific proposals to implement new
building and appliance standards that have been placed into
effect.
(3) Demonstrate that its overall portfolio of
measures, not including low-income programs described in
subsection (c) of this Section, is cost-effective using the

HB2956 - 33 - LRB101 09743 JRG 54844 b
total resource cost test or complies with paragraphs (1)
through (3) of subsection (f) of this Section and
represents a diverse cross-section of opportunities for
customers of all rate classes, other than those customers
described in subsection (l) of this Section, to participate
in the programs. Individual measures need not be cost
effective.
(4) Present a third-party energy efficiency
implementation program subject to the following
requirements:
(A) beginning with the year commencing January 1,
2019, electric utilities that serve more than
3,000,000 retail customers in the State shall fund
third-party energy efficiency programs in an amount
that is no less than $25,000,000 per year, and electric
utilities that serve less than 3,000,000 retail
customers but more than 500,000 retail customers in the
State shall fund third-party energy efficiency
programs in an amount that is no less than $8,350,000
per year;
(B) during 2018, the utility shall conduct a
solicitation process for purposes of requesting
proposals from third-party vendors for those
third-party energy efficiency programs to be offered
during one or more of the years commencing January 1,
2019, January 1, 2020, and January 1, 2021; for those

HB2956 - 34 - LRB101 09743 JRG 54844 b
multi-year plans commencing on January 1, 2022 and
January 1, 2026, the utility shall conduct a
solicitation process during 2021 and 2025,
respectively, for purposes of requesting proposals
from third-party vendors for those third-party energy
efficiency programs to be offered during one or more
years of the respective multi-year plan period; for
each solicitation process, the utility shall identify
the sector, technology, or geographical area for which
it is seeking requests for proposals;
(C) the utility shall propose the bidder
qualifications, performance measurement process, and
contract structure, which must include a performance
payment mechanism and general terms and conditions;
the proposed qualifications, process, and structure
shall be subject to Commission approval; and
(D) the utility shall retain an independent third
party to score the proposals received through the
solicitation process described in this paragraph (4),
rank them according to their cost per lifetime
kilowatt-hours saved, and assemble the portfolio of
third-party programs.
The electric utility shall recover all costs
associated with Commission-approved, third-party
administered programs regardless of the success of those
programs.

HB2956 - 35 - LRB101 09743 JRG 54844 b
(4.5) Implement cost-effective demand-response
measures to reduce peak demand by 0.1% over the prior year
for eligible retail customers, as defined in Section
16-111.5 of this Act, and for customers that elect hourly
service from the utility pursuant to Section 16-107 of this
Act, provided those customers have not been declared
competitive. This requirement continues until December 31,
2026.
(5) Include a proposed or revised cost-recovery tariff
mechanism, as provided for under subsection (d) of this
Section, to fund the proposed energy efficiency and
demand-response measures and to ensure the recovery of the
prudently and reasonably incurred costs of
Commission-approved programs.
(6) Provide for an annual independent evaluation of the
performance of the cost-effectiveness of the utility's
portfolio of measures, as well as a full review of the
multi-year plan results of the broader net program impacts
and, to the extent practical, for adjustment of the
measures on a going-forward basis as a result of the
evaluations. The resources dedicated to evaluation shall
not exceed 3% of portfolio resources in any given year.
(7) For electric utilities that serve more than
3,000,000 retail customers in the State:
(A) Through December 31, 2025, provide for an
adjustment to the return on equity component of the

HB2956 - 36 - LRB101 09743 JRG 54844 b
utility's weighted average cost of capital calculated
under subsection (d) of this Section:
(i) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is less than the applicable
annual incremental goal, then the return on equity
component shall be reduced by a maximum of 200
basis points in the event that the utility achieved
no more than 75% of such goal. If the utility
achieved more than 75% of the applicable annual
incremental goal but less than 100% of such goal,
then the return on equity component shall be
reduced by 8 basis points for each percent by which
the utility failed to achieve the goal.
(ii) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is more than the applicable
annual incremental goal, then the return on equity
component shall be increased by a maximum of 200
basis points in the event that the utility achieved
at least 125% of such goal. If the utility achieved
more than 100% of the applicable annual
incremental goal but less than 125% of such goal,
then the return on equity component shall be
increased by 8 basis points for each percent by
which the utility achieved above the goal. If the

HB2956 - 37 - LRB101 09743 JRG 54844 b
applicable annual incremental goal was reduced
under paragraphs (1) or (2) of subsection (f) of
this Section, then the following adjustments shall
be made to the calculations described in this item
(ii):
(aa) the calculation for determining
achievement that is at least 125% of the
applicable annual incremental goal shall use
the unreduced applicable annual incremental
goal to set the value; and
(bb) the calculation for determining
achievement that is less than 125% but more
than 100% of the applicable annual incremental
goal shall use the reduced applicable annual
incremental goal to set the value for 100%
achievement of the goal and shall use the
unreduced goal to set the value for 125%
achievement. The 8 basis point value shall also
be modified, as necessary, so that the 200
basis points are evenly apportioned among each
percentage point value between 100% and 125%
achievement.
(B) For the period January 1, 2026 through December
31, 2030, provide for an adjustment to the return on
equity component of the utility's weighted average
cost of capital calculated under subsection (d) of this

HB2956 - 38 - LRB101 09743 JRG 54844 b
Section:
(i) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is less than the applicable
annual incremental goal, then the return on equity
component shall be reduced by a maximum of 200
basis points in the event that the utility achieved
no more than 66% of such goal. If the utility
achieved more than 66% of the applicable annual
incremental goal but less than 100% of such goal,
then the return on equity component shall be
reduced by 6 basis points for each percent by which
the utility failed to achieve the goal.
(ii) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is more than the applicable
annual incremental goal, then the return on equity
component shall be increased by a maximum of 200
basis points in the event that the utility achieved
at least 134% of such goal. If the utility achieved
more than 100% of the applicable annual
incremental goal but less than 134% of such goal,
then the return on equity component shall be
increased by 6 basis points for each percent by
which the utility achieved above the goal. If the
applicable annual incremental goal was reduced

HB2956 - 39 - LRB101 09743 JRG 54844 b
under paragraph (3) of subsection (f) of this
Section, then the following adjustments shall be
made to the calculations described in this item
(ii):
(aa) the calculation for determining
achievement that is at least 134% of the
applicable annual incremental goal shall use
the unreduced applicable annual incremental
goal to set the value; and
(bb) the calculation for determining
achievement that is less than 134% but more
than 100% of the applicable annual incremental
goal shall use the reduced applicable annual
incremental goal to set the value for 100%
achievement of the goal and shall use the
unreduced goal to set the value for 134%
achievement. The 6 basis point value shall also
be modified, as necessary, so that the 200
basis points are evenly apportioned among each
percentage point value between 100% and 134%
achievement.
(7.5) For purposes of this Section, the term
"applicable annual incremental goal" means the difference
between the cumulative persisting annual savings goal for
the calendar year that is the subject of the independent
evaluator's determination and the cumulative persisting

HB2956 - 40 - LRB101 09743 JRG 54844 b
annual savings goal for the immediately preceding calendar
year, as such goals are defined in subsections (b-5) and
(b-15) of this Section and as these goals may have been
modified as provided for under subsection (b-20) and
paragraphs (1) through (3) of subsection (f) of this
Section. Under subsections (b), (b-5), (b-10), and (b-15)
of this Section, a utility must first replace energy
savings from measures that have reached the end of their
measure lives and would otherwise have to be replaced to
meet the applicable savings goals identified in subsection
(b-5) or (b-15) of this Section before any progress towards
achievement of its applicable annual incremental goal may
be counted. Notwithstanding anything else set forth in this
Section, the difference between the actual annual
incremental savings achieved in any given year, including
the replacement of energy savings from measures that have
expired, and the applicable annual incremental goal shall
not affect adjustments to the return on equity for
subsequent calendar years under this subsection (g).
(8) For electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State:
(A) Through December 31, 2025, the applicable
annual incremental goal shall be compared to the annual
incremental savings as determined by the independent
evaluator.

HB2956 - 41 - LRB101 09743 JRG 54844 b
(i) The return on equity component shall be
reduced by 8 basis points for each percent by which
the utility did not achieve 84.4% of the applicable
annual incremental goal.
(ii) The return on equity component shall be
increased by 8 basis points for each percent by
which the utility exceeded 100% of the applicable
annual incremental goal.
(iii) The return on equity component shall not
be increased or decreased if the annual
incremental savings as determined by the
independent evaluator is greater than 84.4% of the
applicable annual incremental goal and less than
100% of the applicable annual incremental goal.
(iv) The return on equity component shall not
be increased or decreased by an amount greater than
200 basis points pursuant to this subparagraph
(A).
(B) For the period of January 1, 2026 through
December 31, 2030, the applicable annual incremental
goal shall be compared to the annual incremental
savings as determined by the independent evaluator.
(i) The return on equity component shall be
reduced by 6 basis points for each percent by which
the utility did not achieve 100% of the applicable
annual incremental goal.

HB2956 - 42 - LRB101 09743 JRG 54844 b
(ii) The return on equity component shall be
increased by 6 basis points for each percent by
which the utility exceeded 100% of the applicable
annual incremental goal.
(iii) The return on equity component shall not
be increased or decreased by an amount greater than
200 basis points pursuant to this subparagraph
(B).
(C) If the applicable annual incremental goal was
reduced under paragraphs (1), (2) or (3) of subsection
(f) of this Section, then the following adjustments
shall be made to the calculations described in
subparagraphs (A) and (B) of this paragraph (8):
(i) The calculation for determining
achievement that is at least 125% or 134%, as
applicable, of the applicable annual incremental
goal shall use the unreduced applicable annual
incremental goal to set the value.
(ii) For the period through December 31, 2025,
the calculation for determining achievement that
is less than 125% but more than 100% of the
applicable annual incremental goal shall use the
reduced applicable annual incremental goal to set
the value for 100% achievement of the goal and
shall use the unreduced goal to set the value for
125% achievement. The 8 basis point value shall

HB2956 - 43 - LRB101 09743 JRG 54844 b
also be modified, as necessary, so that the 200
basis points are evenly apportioned among each
percentage point value between 100% and 125%
achievement.
(iii) For the period of January 1, 2026 through
December 31, 2030, the calculation for determining
achievement that is less than 134% but more than
100% of the applicable annual incremental goal
shall use the reduced applicable annual
incremental goal to set the value for 100%
achievement of the goal and shall use the unreduced
goal to set the value for 125% achievement. The 6
basis point value shall also be modified, as
necessary, so that the 200 basis points are evenly
apportioned among each percentage point value
between 100% and 134% achievement.
(9) The utility shall submit the energy savings data to
the independent evaluator no later than 30 days after the
close of the plan year. The independent evaluator shall
determine the cumulative persisting annual savings for a
given plan year no later than 120 days after the close of
the plan year. The utility shall submit an informational
filing to the Commission no later than 160 days after the
close of the plan year that attaches the independent
evaluator's final report identifying the cumulative
persisting annual savings for the year and calculates,

HB2956 - 44 - LRB101 09743 JRG 54844 b
under paragraph (7) or (8) of this subsection (g), as
applicable, any resulting change to the utility's return on
equity component of the weighted average cost of capital
applicable to the next plan year beginning with the January
monthly billing period and extending through the December
monthly billing period. However, if the utility recovers
the costs incurred under this Section under paragraphs (2)
and (3) of subsection (d) of this Section, then the utility
shall not be required to submit such informational filing,
and shall instead submit the information that would
otherwise be included in the informational filing as part
of its filing under paragraph (3) of such subsection (d)
that is due on or before June 1 of each year.
For those utilities that must submit the informational
filing, the Commission may, on its own motion or by
petition, initiate an investigation of such filing,
provided, however, that the utility's proposed return on
equity calculation shall be deemed the final, approved
calculation on December 15 of the year in which it is filed
unless the Commission enters an order on or before December
15, after notice and hearing, that modifies such
calculation consistent with this Section.
The adjustments to the return on equity component
described in paragraphs (7) and (8) of this subsection (g)
shall be applied as described in such paragraphs through a
separate tariff mechanism, which shall be filed by the

HB2956 - 45 - LRB101 09743 JRG 54844 b
utility under subsections (f) and (g) of this Section.
(h) No more than 6% of energy efficiency and
demand-response program revenue may be allocated for research,
development, or pilot deployment of new equipment or measures.
(i) When practicable, electric utilities shall incorporate
advanced metering infrastructure data into the planning,
implementation, and evaluation of energy efficiency measures
and programs, subject to the data privacy and confidentiality
protections of applicable law.
(j) The independent evaluator shall follow the guidelines
and use the savings set forth in Commission-approved energy
efficiency policy manuals and technical reference manuals, as
each may be updated from time to time. Until such time as
measure life values for energy efficiency measures implemented
for low-income households under subsection (c) of this Section
are incorporated into such Commission-approved manuals, the
low-income measures shall have the same measure life values
that are established for same measures implemented in
households that are not low-income households.
(k) Notwithstanding any provision of law to the contrary,
an electric utility subject to the requirements of this Section
may file a tariff cancelling an automatic adjustment clause
tariff in effect under this Section or Section 8-103, which
shall take effect no later than one business day after the date
such tariff is filed. Thereafter, the utility shall be
authorized to defer and recover its expenditures incurred under

HB2956 - 46 - LRB101 09743 JRG 54844 b
this Section through a new tariff authorized under subsection
(d) of this Section or in the utility's next rate case under
Article IX or Section 16-108.5 of this Act, with interest at an
annual rate equal to the utility's weighted average cost of
capital as approved by the Commission in such case. If the
utility elects to file a new tariff under subsection (d) of
this Section, the utility may file the tariff within 10 days
after June 1, 2017 (the effective date of Public Act 99-906)
this amendatory Act of the 99th General Assembly, and the cost
inputs to such tariff shall be based on the projected costs to
be incurred by the utility during the calendar year in which
the new tariff is filed and that were not recovered under the
tariff that was cancelled as provided for in this subsection.
Such costs shall include those incurred or to be incurred by
the utility under its multi-year plan approved under
subsections (f) and (g) of this Section, including, but not
limited to, projected capital investment costs and projected
regulatory asset balances with correspondingly updated
depreciation and amortization reserves and expense. The
Commission shall, after notice and hearing, approve, or approve
with modification, such tariff and cost inputs no later than 75
days after the utility filed the tariff, provided that such
approval, or approval with modification, shall be consistent
with the provisions of this Section to the extent they do not
conflict with this subsection (k). The tariff approved by the
Commission shall take effect no later than 5 days after the

HB2956 - 47 - LRB101 09743 JRG 54844 b
Commission enters its order approving the tariff.
No later than 60 days after the effective date of the
tariff cancelling the utility's automatic adjustment clause
tariff, the utility shall file a reconciliation that reconciles
the moneys collected under its automatic adjustment clause
tariff with the costs incurred during the period beginning June
1, 2016 and ending on the date that the electric utility's
automatic adjustment clause tariff was cancelled. In the event
the reconciliation reflects an under-collection, the utility
shall recover the costs as specified in this subsection (k). If
the reconciliation reflects an over-collection, the utility
shall apply the amount of such over-collection as a one-time
credit to retail customers' bills.
(l) (Blank). For the calendar years covered by a multi-year
plan commencing after December 31, 2017, subsections (a)
through (j) of this Section do not apply to any retail
customers of an electric utility that serves more than
3,000,000 retail customers in the State and whose total highest
30 minute demand was more than 10,000 kilowatts, or any retail
customers of an electric utility that serves less than
3,000,000 retail customers but more than 500,000 retail
customers in the State and whose total highest 15 minute demand
was more than 10,000 kilowatts. For purposes of this subsection
(l), "retail customer" has the meaning set forth in Section
16-102 of this Act. A determination of whether this subsection
is applicable to a customer shall be made for each multi-year

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plan beginning after December 31, 2017. The criteria for
determining whether this subsection (l) is applicable to a
retail customer shall be based on the 12 consecutive billing
periods prior to the start of the first year of each such
multi-year plan.
(m) Notwithstanding the requirements of this Section, as
part of a proceeding to approve a multi-year plan under
subsections (f) and (g) of this Section, the Commission shall
reduce the amount of energy efficiency measures implemented for
any single year, and whose costs are recovered under subsection
(d) of this Section, by an amount necessary to limit the
estimated average net increase due to the cost of the measures
to no more than
(1) 3.5% for the each of the 4 years beginning January
1, 2018,
(2) 3.75% for each of the 4 years beginning January 1,
2022, and
(3) 4% for each of the 5 years beginning January 1,
2026,
of the average amount paid per kilowatthour by residential
eligible retail customers during calendar year 2015. To
determine the total amount that may be spent by an electric
utility in any single year, the applicable percentage of the
average amount paid per kilowatthour shall be multiplied by the
total amount of energy delivered by such electric utility in
the calendar year 2015, adjusted to reflect the proportion of

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the utility's load attributable to customers who are exempt
from subsections (a) through (j) of this Section under
subsection (l) of this Section. For purposes of this subsection
(m), the amount paid per kilowatthour includes, without
limitation, estimated amounts paid for supply, transmission,
distribution, surcharges, and add-on taxes. For purposes of
this Section, "eligible retail customers" shall have the
meaning set forth in Section 16-111.5 of this Act. Once the
Commission has approved a plan under subsections (f) and (g) of
this Section, no subsequent rate impact determinations shall be
made.
(Source: P.A. 99-906, eff. 6-1-17; 100-840, eff. 8-13-18;
revised 10-19-18.)
Section 99. Effective date. This Act takes effect upon
becoming law.