Bill Text: IL HB5330 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Public Utilities Act. Provides that no later than December 31, 2020, any utility that has more than 70% Advanced Metering Infrastructure deployment shall file an accelerated switching tariff with the Commission that shall enable a customer to enroll with or switch between an alternative retail electric supplier and the utility. Provides that the utility may include in its accelerated switching tariff a provision to limit the number of suppliers to which a customer can switch within the same billing cycle, but must allow a customer to switch to a minimum of 2 different suppliers servicing the customer within the same billing cycle. Provides that all costs for implementing an accelerated switching tariff shall be recoverable by the utility through an increase to the Smart Grid Advanced Metering Infrastructure cost recovery mechanism. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5330 Detail]

Download: Illinois-2019-HB5330-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5330 Introduced , by Rep. Kelly M. Burke SYNOPSIS AS INTRODUCED:
220 ILCS 5/16-108.6
Amends the Public Utilities Act. Provides that no later than December 31, 2020, any utility that has more than 70% Advanced Metering Infrastructure deployment shall file an accelerated switching tariff with the Commission that shall enable a customer to enroll with or switch between an alternative retail electric supplier and the utility. Provides that the utility may include in its accelerated switching tariff a provision to limit the number of suppliers to which a customer can switch within the same billing cycle, but must allow a customer to switch to a minimum of 2 different suppliers servicing the customer within the same billing cycle. Provides that all costs for implementing an accelerated switching tariff shall be recoverable by the utility through an increase to the Smart Grid Advanced Metering Infrastructure cost recovery mechanism. Effective immediately.
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A BILL FOR
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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 16-108.6 as follows:
(220 ILCS 5/16-108.6)
Sec. 16-108.6. Provisions relating to Smart Grid Advanced
Metering Infrastructure Deployment Plan.
(a) For purposes of this Section and Sections 16-108.7 and
16-108.8 of this Act:
"Advanced Metering Infrastructure" or "AMI" means the
communications hardware and software and associated system
software that enables Smart Grid functions by creating a
network between advanced meters and utility business systems
and allowing collection and distribution of information to
customers and other parties in addition to providing
information to the utility itself.
"Cost-beneficial" means a determination that the benefits
of a participating utility's Smart Grid AMI Deployment Plan
exceed the costs of the Smart Grid AMI Deployment Plan as
initially filed with the Commission or as subsequently modified
by the Commission. This standard is met if the present value of
the total benefits of the Smart Grid AMI Deployment Plan

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exceeds the present value of the total costs of the Smart Grid
AMI Deployment Plan. The total cost shall include all utility
costs reasonably associated with the Smart Grid AMI Deployment
Plan. The total benefits shall include the sum of avoided
electricity costs, including avoided utility operational
costs, avoided consumer power, capacity, and energy costs, and
avoided societal costs associated with the production and
consumption of electricity, as well as other societal benefits,
including the greater integration of renewable and distributed
power resources, reductions in the emissions of harmful
pollutants and associated avoided health-related costs, other
benefits associated with energy efficiency measures,
demand-response activities, and the enabling of greater
penetration of alternative fuel vehicles.
"Participating utility" has the meaning set forth in
Section 16-108.5 of this Act.
"Smart Grid" means investments and policies that together
promote one or more of the following goals:
(1) Increased use of digital information and controls
technology to improve reliability, security, and
efficiency of the electric grid.
(2) Dynamic optimization of grid operations and
resources, with full cyber security.
(3) Deployment and integration of distributed
resources and generation, including renewable resources.
(4) Development and incorporation of demand-response,

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demand-side resources, and energy efficiency resources.
(5) Deployment of "smart" technologies (real-time,
automated, interactive technologies that optimize the
physical operation of appliances and consumer devices) for
metering, communications concerning grid operations and
status, and distribution automation.
(6) Integration of "smart" appliances and consumer
devices.
(7) Deployment and integration of advanced electricity
storage and peak-shaving technologies, including plug-in
electric and hybrid electric vehicles, thermal-storage air
conditioning and renewable energy generation.
(8) Provision to consumers of timely information and
control options.
(9) Development of open access standards for
communication and interoperability of appliances and
equipment connected to the electric grid, including the
infrastructure serving the grid.
(10) Identification and lowering of unreasonable or
unnecessary barriers to adoption of Smart Grid
technologies, practices, services, and business models
that support energy efficiency, demand-response, and
distributed generation.
"Smart Grid Advisory Council" means the group of
stakeholders formed pursuant to subsection (b) of this Section
for the purposes of advising and working with participating

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utilities on the development and implementation of a Smart Grid
Advanced Metering Infrastructure Deployment Plan.
"Smart Grid electric system upgrades" means any of the
following:
(1) metering devices, sensors, control devices, and
other devices integrated with and attached to an electric
utility system that are capable of engaging in Smart Grid
functions;
(2) other monitoring and communications devices that
enable Smart Grid functions, including, but not limited to,
distribution automation;
(3) software that enables devices or computers to
engage in Smart Grid functions;
(4) associated cyber secure data communication
network, including enhancements to cyber-security
technologies and measures;
(5) substation micro-processor relay upgrades;
(6) devices that allow electric or hybrid-electric
vehicles to engage in Smart Grid functions; or
(7) devices that enable individual consumers to
incorporate distributed and micro-generation.
"Smart Grid electric system upgrades" does not include
expenditures for: (1) electricity generation, transmission, or
distribution infrastructure or equipment that does not
directly relate to or support installing, implementing or
enabling Smart Grid functions; (2) physical interconnection of

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generators or other devices to the grid except those that are
directly related to enabling Smart Grid functions; or (3)
ongoing or routine operation, billing, customer relations,
security, and maintenance.
"Smart Grid functions" means:
(1) the ability to develop, store, send, and receive
digital information concerning or enabling grid
operations, electricity use, costs, prices, time of use,
nature of use, storage, or other information relevant to
device, grid, or utility operations, to or from or by means
of the electric utility system through one or a combination
of devices and technologies;
(2) the ability to develop, store, send, and receive
digital information concerning electricity use, costs,
prices, time of use, nature of use, storage, or other
information relevant to device, grid, or utility
operations to or from a computer or other control device;
(3) the ability to measure or monitor electricity use
as a function of time of day, power quality characteristics
such as voltage level, current, cycles per second, or
source or type of generation and to store, synthesize, or
report that information by digital means;
(4) the ability to sense and localize disruptions or
changes in power flows on the grid and communicate such
information instantaneously and automatically for purposes
of enabling automatic protective responses to sustain

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reliability and security of grid operations;
(5) the ability to detect, prevent, communicate with
regard to, respond to, or recover from system security
threats, including cyber-security threats and terrorism,
using digital information, media, and devices;
(6) the ability of any device or machine to respond to
signals, measurements, or communications automatically or
in a manner programmed by its owner or operator without
independent human intervention;
(7) the ability to use digital information to operate
functionalities on the electric utility grid that were
previously electro-mechanical or manual;
(8) the ability to use digital controls to manage and
modify electricity demand, enable congestion management,
assist in voltage control, provide operating reserves, and
provide frequency regulation; or
(9) the ability to integrate electric plug-in
vehicles, distributed generation, and storage in a safe and
cost-effective manner on the electric grid.
(b) Within 30 days after the effective date of this
amendatory Act of the 97th General Assembly, the Smart Grid
Advisory Council shall be established, which shall consist of 9
total voting members with each member possessing either
technical, business or consumer expertise in Smart Grid issues,
5 of whom shall be appointed by the Governor, one of whom shall
be appointed by the Speaker of the House, one of whom shall be

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appointed by the Minority Leader of the House, one of whom
shall be appointed by the President of the Senate, and one of
whom shall be appointed by the Minority Leader of the Senate.
Of the Governor's 5 appointments: (i) at least one must
represent a non-profit membership organization whose mission
is to cultivate innovation and technology-based economic
development in Illinois by fostering public-private
partnerships to develop and execute research and development
projects, advocating for funding for research and development
initiatives, and collaborating with public and private
partners to attract and retain research and development
resources and talent in Illinois; (ii) at least one must
represent a non-profit public body corporate and politic
created by law that has a duty to represent and protect
residential utility consumers in Illinois; (iii) at least one
must represent a membership organization that represents the
interests of individuals and companies that own, operate,
manage, and service commercial buildings in a municipality with
a population of 1,000,000 or more inhabitants; and (iv) at
least one must represent an alternative retail electric
supplier that has obtained a certificate of service authority
pursuant to Section 16-115 of this Act and that is not an
affiliate of a participating utility prior to one year after
the effective date of this amendatory Act of the 97th General
Assembly.
The Governor shall designate one of the members of the

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Council to serve as chairman, and that person shall serve as
the chairman at the pleasure of the Governor. The members shall
not be compensated for serving on the Smart Grid Advisory
Council. The Smart Grid Advisory Council shall have the
following duties:
(1) Serve as an advisor to participating utilities
subject to this Section and in the manner described in this
Section, and the recommendations provided by the Council,
although non-binding, shall be considered by the
utilities.
(2) Serve as trustees of the trust or foundation
established pursuant to Section 16-108.7 of this Act with
the duties enumerated thereunder.
(c) After consultation with the Smart Grid Advisory
Council, each participating utility shall file a Smart Grid
Advanced Metering Infrastructure Deployment Plan ("AMI Plan")
with the Commission within 180 days after the effective date of
this amendatory Act of the 97th General Assembly or by November
1, 2011, whichever is later, or in the case of a combination
utility as defined in Section 16-108.5, by April 1, 2012,
provided that a participating utility shall not file its plan
until the evaluation report on the Pilot Program described in
this subsection (c) is issued. The AMI Plan shall provide for
investment over a 10-year period that is sufficient to
implement the AMI Plan across its entire service territory in a
manner that is consistent with subsection (b) of Section

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16-108.5 of this Act. The AMI Plan shall contain:
(1) the participating utility's Smart Grid AMI vision
statement that is consistent with the goal of developing a
cost-beneficial Smart Grid;
(2) a statement of Smart Grid AMI strategy that
includes a description of how the utility evaluates and
prioritizes technology choices to create customer value,
including a plan to enhance and enable customers' ability
to take advantage of Smart Grid functions beginning at the
time an account has billed successfully on the AMI network;
(3) a deployment schedule and plan that includes
deployment of AMI to all customers for a participating
utility other than a combination utility, and to 62% of all
customers for a participating utility that is a combination
utility;
(4) annual milestones and metrics for the purposes of
measuring the success of the AMI Plan in enabling Smart
Grid functions; and enhancing consumer benefits from Smart
Grid AMI; and
(5) a plan for the consumer education to be implemented
by the participating utility.
The AMI Plan shall be fully consistent with the standards
of the National Institute of Standard and Technology (NIST) for
Smart Grid interoperability that are in effect at the time the
participating utility files its AMI Plan, shall include open
standards and internet protocol to the maximum extent possible

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consistent with cyber security, and shall maximize, to the
extent possible, a flexible smart meter platform that can
accept remote device upgrades and contain sufficient internal
memory capacity for additional storage capabilities, functions
and services without the need for physical access to the meter.
The AMI Plan shall secure the privacy of personal
information and establish the right of consumers to consent to
the disclosure of personal energy information to third parties
through electronic, web-based, and other means in accordance
with State and federal law and regulations regarding consumer
privacy and protection of consumer data.
After notice and hearing, the Commission shall, within 60
days of the filing of an AMI Plan, issue its order approving,
or approving with modification, the AMI Plan if the Commission
finds that the AMI Plan contains the information required in
paragraphs (1) through (5) of this subsection (c) and further
finds that the implementation of the AMI Plan will be
cost-beneficial consistent with the principles established
through the Illinois Smart Grid Collaborative, giving weight to
the results of any Commission-approved pilot designed to
examine the benefits and costs of AMI deployment. A
participating utility's decision to invest pursuant to an AMI
Plan approved by the Commission shall not be subject to
prudence reviews in subsequent Commission proceedings. Nothing
in this subsection (c) is intended to limit the Commission's
ability to review the reasonableness of the costs incurred

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under the AMI Plan. A participating utility shall be allowed to
recover the reasonable costs it incurs in implementing a
Commission-approved AMI Plan, including the costs of retired
meters, and may recover such costs through its tariffs,
including the performance-based formula rate tariff approved
pursuant to subsection (c) of Section 16-108.5 of this Act.
(d) The AMI Plan shall secure the privacy of the customer's
personal information. "Personal information" for this purpose
consists of the customer's name, address, telephone number, and
other personally identifying information, as well as
information about the customer's electric usage. Electric
utilities, their contractors or agents, and any third party who
comes into possession of such personal information by virtue of
working on Smart Grid technology shall not disclose such
personal information to be used in mailing lists or to be used
for other commercial purposes not reasonably related to the
conduct of the utility's business. Electric utilities shall
comply with the consumer privacy requirements of the Personal
Information Protection Act. In the event a participating
utility receives revenues from the sale of information obtained
through Smart Grid technology that is not personal information,
the participating utility shall use such revenues to offset the
revenue requirement.
(e) On April 1 of each year beginning in 2013 and after
consultation with the Smart Grid Advisory Council, each
participating utility shall submit a report regarding the

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progress it has made toward completing implementation of its
AMI Plan. This report shall:
(1) describe the AMI investments made during the prior
12 months and the AMI investments planned to be made in the
following 12 months;
(2) provide sufficient detail to determine the
utility's progress in meeting the metrics and milestones
identified by the utility in its AMI Plan; and
(3) identify any updates to the AMI Plan.
Within 21 days after the utility files its annual report,
the Commission shall have authority, either upon complaint or
its own initiative, but with reasonable notice, to enter upon
an investigation regarding the utility's progress in
implementing the AMI Plan as described in paragraph (1) of this
subsection (e). If the Commission finds, after notice and
hearing, that the participating utility's progress in
implementing the AMI Plan is materially deficient for the given
plan year, then the Commission shall issue an order requiring
the participating utility to devise a corrective action plan,
subject to Commission approval and oversight, to bring
implementation back on schedule consistent with the AMI Plan.
The Commission's order must be entered within 90 days after the
utility files its annual report. If the Commission does not
initiate an investigation within 21 days after the utility
files its annual report, then the filing shall be deemed
accepted by the Commission. The utility shall not be required

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to suspend implementation of its AMI Plan during any Commission
investigation.
The participating utility's annual report regarding AMI
Plan year 10 shall contain a statement verifying that the
implementation of its AMI Plan is complete, provided, however,
that if the utility is subject to a corrective action plan that
extends the implementation period beyond 10 years, the utility
shall include the verification statement in its final annual
report. Following the date of a Commission order approving the
final annual report or the date on which the final report is
deemed accepted by the Commission, the utility's annual
reporting obligations under this subsection (d) shall
terminate, provided, however, that the utility shall have a
continuing obligation to provide information, upon request, to
the Commission and Smart Grid Advisory Council regarding the
AMI Plan.
(f) Each participating utility shall pay a pro rata share,
based on number of customers, of $5,000,000 per year to the
trust or foundation established pursuant to Section 16-108.7 of
this Act for each plan year of the AMI Plan, which shall be
used for purposes of providing customer education regarding
smart meters and related consumer-facing technologies and
services and 70% of which shall be a recoverable expense;
provided that other reasonable amounts expended by the utility
for such consumer education shall not be subject to the 70%
limitation of this subsection.

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(g) Within 60 days after the Commission approves a
participating utility's AMI Plan pursuant to subsection (c) of
this Section, the participating utility, after consultation
with the Smart Grid Advisory Council, shall file a proposed
tariff with the Commission that offers an opt-in market-based
peak time rebate program to all residential retail customers
with smart meters that is designed to provide, in a
competitively neutral manner, rebates to those residential
retail customers that curtail their use of electricity during
specific periods that are identified as peak usage periods. The
total amount of rebates shall be the amount of compensation the
utility obtains through markets or programs at the applicable
regional transmission organization. The utility shall make all
reasonable attempts to secure funding for the peak time rebate
program through markets or programs at the applicable regional
transmission organization. The rules and procedures for
consumers to opt-in to the peak time rebate program shall
include electronic sign-up, be designed to maximize
participation, and be included on the utility's website. The
Commission shall monitor the performance of programs
established pursuant to this subsection (g) and shall order the
termination or modification of a program if it determines that
the program is not, after a reasonable period of time for
development of at least 4 years, resulting in net benefits to
the residential customers of the participating utility.
(h) If Section 16-108.5 of this Act becomes inoperative

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with respect to one or more participating utilities as set
forth in subsection (g) or (h) of that Section, then Sections
16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act shall
become inoperative as to each affected utility and its service
area on the same date as Section 16-108.5 becomes inoperative.
(i) No later than December 31, 2020, any utility that has
more than 70% Advanced Metering Infrastructure deployment
shall file an accelerated switching tariff with the Commission
that shall enable a customer to enroll with or switch between
an alternative retail electric supplier and the utility no
later than 15 days between the utility's receipt of a
customer's switch and the effective date of such switch or
enrollment request. The utility shall implement the tariff
within 30 days after the Commission's approval unless the
Commission approves a longer deadline as necessary to allow the
utility to build back office or technology systems to implement
the tariff requirements. The utility may include in its
accelerated switching tariff a provision to limit the number of
suppliers to which a customer can switch within the same
billing cycle, but must allow a customer to switch to a minimum
of 2 different suppliers servicing the customer within the same
billing cycle. All costs for implementing an accelerated
switching tariff shall be recoverable by the utility through an
increase to the Smart Grid Advanced Metering Infrastructure
cost recovery mechanism.
(Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11.)

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Section 99. Effective date. This Act takes effect upon
becoming law.