UTILITY-INTERCONNECTION RULES

Illinois General Assembly - Full Text of SB4028

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB4028

Introduced 2/6/2026, by Sen. Donald P. DeWitte

SYNOPSIS AS INTRODUCED:

220 ILCS 5/16-108

Amends the Public Utilities Act. In provisions concerning the
recovery of costs associated with the provision of delivery and other
services, provide that the Illinois Commerce Commission shall, within 180
days after the effective date of the amendatory Act, initiate and complete
a rulemaking proceeding to revise 83 Ill. Adm. Code 466 and 83 Ill. Adm.
Code 467 to address barriers to timely and cost-effective interconnections
for distributed generation facilities with a nameplate capacity of at
least 40 kilowatts but no greater than 2 megawatts, including stand-alone
solar photovoltaic systems, battery energy storage, hybrid gas-electric
systems, and renewable natural gas integrations. Requires the revisions to
include certain factors. Provides that the Commission shall coordinate the
revisions with a Future of Gas proceeding pursuant to the final Order of
the Commission in Docket No. 24-0158 to ensure compatibility with gas
decarbonization pathways and to prioritize market-driven distributed
resources that enhance reliability and affordability. Provides that the
revised rules shall take effect no later than July 1, 2026. Effective
immediately.
LRB104 19039 AAS 32484 b

A BILL FOR

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1

AN ACT concerning regulation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Public Utilities Act is amended by changing
5
Section 16-108 as follows:

6

(220 ILCS 5/16-108)
7

(Text of Section before amendment by P.A. 104-458
)
8

Sec. 16-108.
Recovery of costs associated with the
9
provision of delivery and other services.
10

(a) An electric utility shall file a delivery services
11
tariff with the Commission at least 210 days prior to the date
12
that it is required to begin offering such services pursuant
13
to this Act. An electric utility shall provide the components
14
of delivery services that are subject to the jurisdiction of
15
the Federal Energy Regulatory Commission at the same prices,
16
terms and conditions set forth in its applicable tariff as
17
approved or allowed into effect by that Commission. The
18
Commission shall otherwise have the authority pursuant to
19
Article IX to review, approve, and modify the prices, terms
20
and conditions of those components of delivery services not
21
subject to the jurisdiction of the Federal Energy Regulatory
22
Commission, including the authority to determine the extent to
23
which such delivery services should be offered on an unbundled

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basis. In making any such determination the Commission shall
2
consider, at a minimum, the effect of additional unbundling on
3
(i) the objective of just and reasonable rates, (ii) electric
4
utility employees, and (iii) the development of competitive
5
markets for electric energy services in Illinois.
6

(b) The Commission shall enter an order approving, or
7
approving as modified, the delivery services tariff no later
8
than 30 days prior to the date on which the electric utility
9
must commence offering such services. The Commission may
10
subsequently modify such tariff pursuant to this Act.
11

(c) The electric utility's tariffs shall define the
12
classes of its customers for purposes of delivery services
13
charges. Delivery services shall be priced and made available
14
to all retail customers electing delivery services in each
15
such class on a nondiscriminatory basis regardless of whether
16
the retail customer chooses the electric utility, an affiliate
17
of the electric utility, or another entity as its supplier of
18
electric power and energy. Charges for delivery services shall
19
be cost based, and shall allow the electric utility to recover
20
the costs of providing delivery services through its charges
21
to its delivery service customers that use the facilities and
22
services associated with such costs. Such costs shall include
23
the costs of owning, operating and maintaining transmission
24
and distribution facilities. The Commission shall also be
25
authorized to consider whether, and if so to what extent, the
26
following costs are appropriately included in the electric

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utility's delivery services rates: (i) the costs of that
2
portion of generation facilities used for the production and
3
absorption of reactive power in order that retail customers
4
located in the electric utility's service area can receive
5
electric power and energy from suppliers other than the
6
electric utility, and (ii) the costs associated with the use
7
and redispatch of generation facilities to mitigate
8
constraints on the transmission or distribution system in
9
order that retail customers located in the electric utility's
10
service area can receive electric power and energy from
11
suppliers other than the electric utility. Nothing in this
12
subsection shall be construed as directing the Commission to
13
allocate any of the costs described in (i) or (ii) that are
14
found to be appropriately included in the electric utility's
15
delivery services rates to any particular customer group or
16
geographic area in setting delivery services rates.
17

(d) The Commission shall establish charges, terms and
18
conditions for delivery services that are just and reasonable
19
and shall take into account customer impacts when establishing
20
such charges. In establishing charges, terms and conditions
21
for delivery services, the Commission shall take into account
22
voltage level differences. A retail customer shall have the
23
option to request to purchase electric service at any delivery
24
service voltage reasonably and technically feasible from the
25
electric facilities serving that customer's premises provided
26
that there are no significant adverse impacts upon system

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reliability or system efficiency. A retail customer shall also
2
have the option to request to purchase electric service at any
3
point of delivery that is reasonably and technically feasible
4
provided that there are no significant adverse impacts on
5
system reliability or efficiency. Such requests shall not be
6
unreasonably denied.
7

(e) Electric utilities shall recover the costs of
8
installing, operating or maintaining facilities for the
9
particular benefit of one or more delivery services customers,
10
including without limitation any costs incurred in complying
11
with a customer's request to be served at a different voltage
12
level, directly from the retail customer or customers for
13
whose benefit the costs were incurred, to the extent such
14
costs are not recovered through the charges referred to in
15
subsections (c) and (d) of this Section.
16

(f) An electric utility shall be entitled but not required
17
to implement transition charges in conjunction with the
18
offering of delivery services pursuant to Section 16-104. If
19
an electric utility implements transition charges, it shall
20
implement such charges for all delivery services customers and
21
for all customers described in subsection (h), but shall not
22
implement transition charges for power and energy that a
23
retail customer takes from cogeneration or self-generation
24
facilities located on that retail customer's premises, if such
25
facilities meet the following criteria:

26

(i) the cogeneration or self-generation facilities

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serve a single retail customer and are located on that
2

retail customer's premises (for purposes of this
3

subparagraph and subparagraph (ii), an industrial or
4

manufacturing retail customer and a third party contractor
5

that is served by such industrial or manufacturing
6

customer through such retail customer's own electrical
7

distribution facilities under the circumstances described
8

in subsection (vi) of the definition of "alternative
9

retail electric supplier" set forth in Section 16-102,
10

shall be considered a single retail customer);

11

(ii) the cogeneration or self-generation facilities
12

either (A) are sized pursuant to generally accepted
13

engineering standards for the retail customer's electrical
14

load at that premises (taking into account standby or
15

other reliability considerations related to that retail
16

customer's operations at that site) or (B) if the facility
17

is a cogeneration facility located on the retail
18

customer's premises, the retail customer is the thermal
19

host for that facility and the facility has been designed
20

to meet that retail customer's thermal energy requirements
21

resulting in electrical output beyond that retail
22

customer's electrical demand at that premises, comply with
23

the operating and efficiency standards applicable to
24

"qualifying facilities" specified in title 18 Code of
25

Federal Regulations Section 292.205 as in effect on the
26

effective date of this amendatory Act of 1999;

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(iii) the retail customer on whose premises the
2

facilities are located either has an exclusive right to
3

receive, and corresponding obligation to pay for, all of
4

the electrical capacity of the facility, or in the case of
5

a cogeneration facility that has been designed to meet the
6

retail customer's thermal energy requirements at that
7

premises, an identified amount of the electrical capacity
8

of the facility, over a minimum 5-year period; and

9

(iv) if the cogeneration facility is sized for the
10

retail customer's thermal load at that premises but
11

exceeds the electrical load, any sales of excess power or
12

energy are made only at wholesale, are subject to the
13

jurisdiction of the Federal Energy Regulatory Commission,
14

and are not for the purpose of circumventing the
15

provisions of this subsection (f).
16
If a generation facility located at a retail customer's
17
premises does not meet the above criteria, an electric utility
18
implementing transition charges shall implement a transition
19
charge until December 31, 2006 for any power and energy taken
20
by such retail customer from such facility as if such power and
21
energy had been delivered by the electric utility. Provided,
22
however, that an industrial retail customer that is taking
23
power from a generation facility that does not meet the above
24
criteria but that is located on such customer's premises will
25
not be subject to a transition charge for the power and energy
26
taken by such retail customer from such generation facility if

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the facility does not serve any other retail customer and
2
either was installed on behalf of the customer and for its own
3
use prior to January 1, 1997, or is both predominantly fueled
4
by byproducts of such customer's manufacturing process at such
5
premises and sells or offers an average of 300 megawatts or
6
more of electricity produced from such generation facility
7
into the wholesale market. Such charges shall be calculated as
8
provided in Section 16-102, and shall be collected on each
9
kilowatt-hour delivered under a delivery services tariff to a
10
retail customer from the date the customer first takes
11
delivery services until December 31, 2006 except as provided
12
in subsection (h) of this Section. Provided, however, that an
13
electric utility, other than an electric utility providing
14
service to at least 1,000,000 customers in this State on
15
January 1, 1999, shall be entitled to petition for entry of an
16
order by the Commission authorizing the electric utility to
17
implement transition charges for an additional period ending
18
no later than December 31, 2008. The electric utility shall
19
file its petition with supporting evidence no earlier than 16
20
months, and no later than 12 months, prior to December 31,
21
2006. The Commission shall hold a hearing on the electric
22
utility's petition and shall enter its order no later than 8
23
months after the petition is filed. The Commission shall
24
determine whether and to what extent the electric utility
25
shall be authorized to implement transition charges for an
26
additional period. The Commission may authorize the electric

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utility to implement transition charges for some or all of the
2
additional period, and shall determine the mitigation factors
3
to be used in implementing such transition charges; provided,
4
that the Commission shall not authorize mitigation factors
5
less than 110% of those in effect during the 12 months ended
6
December 31, 2006. In making its determination, the Commission
7
shall consider the following factors: the necessity to
8
implement transition charges for an additional period in order
9
to maintain the financial integrity of the electric utility;
10
the prudence of the electric utility's actions in reducing its
11
costs since the effective date of this amendatory Act of 1997;
12
the ability of the electric utility to provide safe, adequate
13
and reliable service to retail customers in its service area;
14
and the impact on competition of allowing the electric utility
15
to implement transition charges for the additional period.
16

(g) The electric utility shall file tariffs that establish
17
the transition charges to be paid by each class of customers to
18
the electric utility in conjunction with the provision of
19
delivery services. The electric utility's tariffs shall define
20
the classes of its customers for purposes of calculating
21
transition charges. The electric utility's tariffs shall
22
provide for the calculation of transition charges on a
23
customer-specific basis for any retail customer whose average
24
monthly maximum electrical demand on the electric utility's
25
system during the 6 months with the customer's highest monthly
26
maximum electrical demands equals or exceeds 3.0 megawatts for

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electric utilities having more than 1,000,000 customers, and
2
for other electric utilities for any customer that has an
3
average monthly maximum electrical demand on the electric
4
utility's system of one megawatt or more, and (A) for which
5
there exists data on the customer's usage during the 3 years
6
preceding the date that the customer became eligible to take
7
delivery services, or (B) for which there does not exist data
8
on the customer's usage during the 3 years preceding the date
9
that the customer became eligible to take delivery services,
10
if in the electric utility's reasonable judgment there exists
11
comparable usage information or a sufficient basis to develop
12
such information, and further provided that the electric
13
utility can require customers for which an individual
14
calculation is made to sign contracts that set forth the
15
transition charges to be paid by the customer to the electric
16
utility pursuant to the tariff.
17

(h) An electric utility shall also be entitled to file
18
tariffs that allow it to collect transition charges from
19
retail customers in the electric utility's service area that
20
do not take delivery services but that take electric power or
21
energy from an alternative retail electric supplier or from an
22
electric utility other than the electric utility in whose
23
service area the customer is located. Such charges shall be
24
calculated, in accordance with the definition of transition
25
charges in Section 16-102, for the period of time that the
26
customer would be obligated to pay transition charges if it

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1
were taking delivery services, except that no deduction for
2
delivery services revenues shall be made in such calculation,
3
and usage data from the customer's class shall be used where
4
historical usage data is not available for the individual
5
customer. The customer shall be obligated to pay such charges
6
on a lump sum basis on or before the date on which the customer
7
commences to take service from the alternative retail electric
8
supplier or other electric utility, provided, that the
9
electric utility in whose service area the customer is located
10
shall offer the customer the option of signing a contract
11
pursuant to which the customer pays such charges ratably over
12
the period in which the charges would otherwise have applied.
13

(i) An electric utility shall be entitled to add to the
14
bills of delivery services customers charges pursuant to
15
Sections 9-221, 9-222 (except as provided in Section 9-222.1),
16
and Section 16-114 of this Act, Section 5-5 of the Electricity
17
Infrastructure Maintenance Fee Law, Section 6-5 of the
18
Renewable Energy, Energy Efficiency, and Coal Resources
19
Development Law of 1997, and Section 13 of the Energy
20
Assistance Act.
21

(i-5) An electric utility required to impose the Coal to
22
Solar and Energy Storage Initiative Charge provided for in
23
subsection (c-5) of Section 1-75 of the Illinois Power Agency
24
Act shall add such charge to the bills of its delivery services
25
customers pursuant to the terms of a tariff conforming to the
26
requirements of subsection (c-5) of Section 1-75 of the

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Illinois Power Agency Act and this subsection (i-5) and filed
2
with and approved by the Commission. The electric utility
3
shall file its proposed tariff with the Commission on or
4
before July 1, 2022 to be effective, after review and approval
5
or modification by the Commission, beginning January 1, 2023.
6
On or before December 1, 2022, the Commission shall review the
7
electric utility's proposed tariff, including by conducting a
8
docketed proceeding if deemed necessary by the Commission, and
9
shall approve the proposed tariff or direct the electric
10
utility to make modifications the Commission finds necessary
11
for the tariff to conform to the requirements of subsection
12
(c-5) of Section 1-75 of the Illinois Power Agency Act and this
13
subsection (i-5). The electric utility's tariff shall provide
14
for imposition of the Coal to Solar and Energy Storage
15
Initiative Charge on a per-kilowatthour basis to all
16
kilowatthours delivered by the electric utility to its
17
delivery services customers. The tariff shall provide for the
18
calculation of the Coal to Solar and Energy Storage Initiative
19
Charge to be in effect for the year beginning January 1, 2023
20
and each year beginning January 1 thereafter, sufficient to
21
collect the electric utility's estimated payment obligations
22
for the delivery year beginning the following June 1 under
23
contracts for purchase of renewable energy credits entered
24
into pursuant to subsection (c-5) of Section 1-75 of the
25
Illinois Power Agency Act and the obligations of the
26
Department of Commerce and Economic Opportunity, or any

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successor department or agency, which for purposes of this
2
subsection (i-5) shall be referred to as the Department, to
3
make grant payments during such delivery year from the Coal to
4
Solar and Energy Storage Initiative Fund pursuant to grant
5
contracts entered into pursuant to subsection (c-5) of Section
6
1-75 of the Illinois Power Agency Act, and using the electric
7
utility's kilowatthour deliveries to its delivery services
8
customers during the delivery year ended May 31 of the
9
preceding calendar year. On or before November 1 of each year
10
beginning November 1, 2022, the Department shall notify the
11
electric utilities of the amount of the Department's estimated
12
obligations for grant payments during the delivery year
13
beginning the following June 1 pursuant to grant contracts
14
entered into pursuant to subsection (c-5) of Section 1-75 of
15
the Illinois Power Agency Act; and each electric utility shall
16
incorporate in the calculation of its Coal to Solar and Energy
17
Storage Initiative Charge the fractional portion of the
18
Department's estimated obligations equal to the electric
19
utility's kilowatthour deliveries to its delivery services
20
customers in the delivery year ended the preceding May 31
21
divided by the aggregate deliveries of both electric utilities
22
to delivery services customers in such delivery year. The
23
electric utility shall remit on a monthly basis to the State
24
Treasurer, for deposit in the Coal to Solar and Energy Storage
25
Initiative Fund provided for in subsection (c-5) of Section
26
1-75 of the Illinois Power Agency Act, the electric utility's

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collections of the Coal to Solar and Energy Storage Initiative
2
Charge estimated to be needed by the Department for grant
3
payments pursuant to grant contracts entered into pursuant to
4
subsection (c-5) of Section 1-75 of the Illinois Power Agency
5
Act. The initial charge under the electric utility's tariff
6
shall be effective for kilowatthours delivered beginning
7
January 1, 2023, and thereafter shall be revised to be
8
effective January 1, 2024 and each January 1 thereafter, based
9
on the payment obligations for the delivery year beginning the
10
following June 1. The tariff shall provide for the electric
11
utility to make an annual filing with the Commission on or
12
before November 15 of each year, beginning in 2023, setting
13
forth the Coal to Solar and Energy Storage Initiative Charge
14
to be in effect for the year beginning the following January 1.
15
The electric utility's tariff shall also provide that the
16
electric utility shall make a filing with the Commission on or
17
before August 1 of each year beginning in 2024 setting forth a
18
reconciliation, for the delivery year ended the preceding May
19
31, of the electric utility's collections of the Coal to Solar
20
and Energy Storage Initiative Charge against actual payments
21
for renewable energy credits pursuant to contracts entered
22
into, and the actual grant payments by the Department pursuant
23
to grant contracts entered into, pursuant to subsection (c-5)
24
of Section 1-75 of the Illinois Power Agency Act. The tariff
25
shall provide that any excess or shortfall of collections to
26
payments shall be deducted from or added to, on a

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LRB104 19039 AAS 32484 b
1
per-kilowatthour basis, the Coal to Solar and Energy Storage
2
Initiative Charge, over the 6-month period beginning October 1
3
of that calendar year.
4

(j) If a retail customer that obtains electric power and
5
energy from cogeneration or self-generation facilities
6
installed for its own use on or before January 1, 1997,
7
subsequently takes service from an alternative retail electric
8
supplier or an electric utility other than the electric
9
utility in whose service area the customer is located for any
10
portion of the customer's electric power and energy
11
requirements formerly obtained from those facilities
12
(including that amount purchased from the utility in lieu of
13
such generation and not as standby power purchases, under a
14
cogeneration displacement tariff in effect as of the effective
15
date of this amendatory Act of 1997), the transition charges
16
otherwise applicable pursuant to subsections (f), (g), or (h)
17
of this Section shall not be applicable in any year to that
18
portion of the customer's electric power and energy
19
requirements formerly obtained from those facilities,
20
provided, that for purposes of this subsection (j), such
21
portion shall not exceed the average number of kilowatt-hours
22
per year obtained from the cogeneration or self-generation
23
facilities during the 3 years prior to the date on which the
24
customer became eligible for delivery services, except as
25
provided in subsection (f) of Section 16-110.
26

(k) The electric utility shall be entitled to recover

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through tariffed charges all of the costs associated with the
2
purchase of zero emission credits from zero emission
3
facilities to meet the requirements of subsection (d-5) of
4
Section 1-75 of the Illinois Power Agency Act and all of the
5
costs associated with the purchase of carbon mitigation
6
credits from carbon-free energy resources to meet the
7
requirements of subsection (d-10) of Section 1-75 of the
8
Illinois Power Agency Act. Such costs shall include the costs
9
of procuring the zero emission credits and carbon mitigation
10
credits from carbon-free energy resources, as well as the
11
reasonable costs that the utility incurs as part of the
12
procurement processes and to implement and comply with plans
13
and processes approved by the Commission under subsections
14
(d-5) and (d-10). The costs shall be allocated across all
15
retail customers through a single, uniform cents per
16
kilowatt-hour charge applicable to all retail customers, which
17
shall appear as a separate line item on each customer's bill.
18
Beginning June 1, 2017, the electric utility shall be entitled
19
to recover through tariffed charges all of the costs
20
associated with the purchase of renewable energy resources to
21
meet the renewable energy resource standards of subsection (c)
22
of Section 1-75 of the Illinois Power Agency Act, under
23
procurement plans as approved in accordance with that Section
24
and Section 16-111.5 of this Act. Such costs shall include the
25
costs of procuring the renewable energy resources, as well as
26
the reasonable costs that the utility incurs as part of the

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1
procurement processes and to implement and comply with plans
2
and processes approved by the Commission under such Sections.
3
The costs associated with the purchase of renewable energy
4
resources shall be allocated across all retail customers in
5
proportion to the amount of renewable energy resources the
6
utility procures for such customers through a single, uniform
7
cents per kilowatt-hour charge applicable to such retail
8
customers, which shall appear as a separate line item on each
9
such customer's bill. The credits, costs, and penalties
10
associated with the self-direct renewable portfolio standard
11
compliance program described in subparagraph (R) of paragraph
12
(1) of subsection (c) of Section 1-75 of the Illinois Power
13
Agency Act shall be allocated to approved eligible self-direct
14
customers by the utility in a cents per kilowatt-hour credit,
15
cost, or penalty, which shall appear as a separate line item on
16
each such customer's bill.
17

Notwithstanding whether the Commission has approved the
18
initial long-term renewable resources procurement plan as of
19
June 1, 2017, an electric utility shall place new tariffed
20
charges into effect beginning with the June 2017 monthly
21
billing period, to the extent practicable, to begin recovering
22
the costs of procuring renewable energy resources, as those
23
charges are calculated under the limitations described in
24
subparagraph (E) of paragraph (1) of subsection (c) of Section
25
1-75 of the Illinois Power Agency Act. Notwithstanding the
26
date on which the utility places such new tariffed charges

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1
into effect, the utility shall be permitted to collect the
2
charges under such tariff as if the tariff had been in effect
3
beginning with the first day of the June 2017 monthly billing
4
period. For the delivery years commencing June 1, 2017, June
5
1, 2018, June 1, 2019, and each delivery year thereafter, the
6
electric utility shall deposit into a separate interest
7
bearing account of a financial institution the monies
8
collected under the tariffed charges. Money collected from
9
customers for the procurement of renewable energy resources in
10
a given delivery year may be spent by the utility for the
11
procurement of renewable resources over any of the following 5
12
delivery years, after which unspent money shall be credited
13
back to retail customers. The electric utility shall spend all
14
money collected in earlier delivery years that has not yet
15
been returned to customers, first, before spending money
16
collected in later delivery years. Any interest earned shall
17
be credited back to retail customers under the reconciliation
18
proceeding provided for in this subsection (k), provided that
19
the electric utility shall first be reimbursed from the
20
interest for the administrative costs that it incurs to
21
administer and manage the account. Any taxes due on the funds
22
in the account, or interest earned on it, will be paid from the
23
account or, if insufficient monies are available in the
24
account, from the monies collected under the tariffed charges
25
to recover the costs of procuring renewable energy resources.
26
Monies deposited in the account shall be subject to the

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review, reconciliation, and true-up process described in this
2
subsection (k) that is applicable to the funds collected and
3
costs incurred for the procurement of renewable energy
4
resources.
5

The electric utility shall be entitled to recover all of
6
the costs identified in this subsection (k) through automatic
7
adjustment clause tariffs applicable to all of the utility's
8
retail customers that allow the electric utility to adjust its
9
tariffed charges consistent with this subsection (k). The
10
determination as to whether any excess funds were collected
11
during a given delivery year for the purchase of renewable
12
energy resources, and the crediting of any excess funds back
13
to retail customers, shall not be made until after the close of
14
the delivery year, which will ensure that the maximum amount
15
of funds is available to implement the approved long-term
16
renewable resources procurement plan during a given delivery
17
year. The amount of excess funds eligible to be credited back
18
to retail customers shall be reduced by an amount equal to the
19
payment obligations required by any contracts entered into by
20
an electric utility under contracts described in subsection
21
(b) of Section 1-56 and subsection (c) of Section 1-75 of the
22
Illinois Power Agency Act, even if such payments have not yet
23
been made and regardless of the delivery year in which those
24
payment obligations were incurred. Notwithstanding anything to
25
the contrary, including in tariffs authorized by this
26
subsection (k) in effect before the effective date of this

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amendatory Act of the 102nd General Assembly, all unspent
2
funds as of May 31, 2021, excluding any funds credited to
3
customers during any utility billing cycle that commences
4
prior to the effective date of this amendatory Act of the 102nd
5
General Assembly, shall remain in the utility account and
6
shall on a first in, first out basis be used toward utility
7
payment obligations under contracts described in subsection
8
(b) of Section 1-56 and subsection (c) of Section 1-75 of the
9
Illinois Power Agency Act. The electric utility's collections
10
under such automatic adjustment clause tariffs to recover the
11
costs of renewable energy resources, zero emission credits
12
from zero emission facilities, and carbon mitigation credits
13
from carbon-free energy resources shall be subject to separate
14
annual review, reconciliation, and true-up against actual
15
costs by the Commission under a procedure that shall be
16
specified in the electric utility's automatic adjustment
17
clause tariffs and that shall be approved by the Commission in
18
connection with its approval of such tariffs. The procedure
19
shall provide that any difference between the electric
20
utility's collections for zero emission credits and carbon
21
mitigation credits under the automatic adjustment charges for
22
an annual period and the electric utility's actual costs of
23
zero emission credits from zero emission facilities and carbon
24
mitigation credits from carbon-free energy resources for that
25
same annual period shall be refunded to or collected from, as
26
applicable, the electric utility's retail customers in

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subsequent periods.
2

Nothing in this subsection (k) is intended to affect,
3
limit, or change the right of the electric utility to recover
4
the costs associated with the procurement of renewable energy
5
resources for periods commencing before, on, or after June 1,
6
2017, as otherwise provided in the Illinois Power Agency Act.
7

The funding available under this subsection (k), if any,
8
for the programs described under subsection (b) of Section
9
1-56 of the Illinois Power Agency Act shall not reduce the
10
amount of funding for the programs described in subparagraph
11
(O) of paragraph (1) of subsection (c) of Section 1-75 of the
12
Illinois Power Agency Act. If funding is available under this
13
subsection (k) for programs described under subsection (b) of
14
Section 1-56 of the Illinois Power Agency Act, then the
15
long-term renewable resources plan shall provide for the
16
Agency to procure contracts in an amount that does not exceed
17
the funding, and the contracts approved by the Commission
18
shall be executed by the applicable utility or utilities.
19

(l) A utility that has terminated any contract executed
20
under subsection (d-5) or (d-10) of Section 1-75 of the
21
Illinois Power Agency Act shall be entitled to recover any
22
remaining balance associated with the purchase of zero
23
emission credits prior to such termination, and such utility
24
shall also apply a credit to its retail customer bills in the
25
event of any over-collection.
26

(m)(1) An electric utility that recovers its costs of

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procuring zero emission credits from zero emission facilities
2
through a cents-per-kilowatthour charge under subsection (k)
3
of this Section shall be subject to the requirements of this
4
subsection (m). Notwithstanding anything to the contrary, such
5
electric utility shall, beginning on April 30, 2018, and each
6
April 30 thereafter until April 30, 2026, calculate whether
7
any reduction must be applied to such cents-per-kilowatthour
8
charge that is paid by retail customers of the electric
9
utility that have opted out of subsections (a) through (j) of
10
Section 8-103B of this Act under subsection (l) of Section
11
8-103B. Such charge shall be reduced for such customers for
12
the next delivery year commencing on June 1 based on the amount
13
necessary, if any, to limit the annual estimated average net
14
increase for the prior calendar year due to the future energy
15
investment costs to no more than 1.3% of 5.98 cents per
16
kilowatt-hour, which is the average amount paid per
17
kilowatthour for electric service during the year ending
18
December 31, 2015 by Illinois industrial retail customers, as
19
reported to the Edison Electric Institute.
20

The calculations required by this subsection (m) shall be
21
made only once for each year, and no subsequent rate impact
22
determinations shall be made.
23

(2) For purposes of this Section, "future energy
24
investment costs" shall be calculated by subtracting the
25
cents-per-kilowatthour charge identified in subparagraph (A)
26
of this paragraph (2) from the sum of the

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cents-per-kilowatthour charges identified in subparagraph (B)
2
of this paragraph (2):
3

(A) The cents-per-kilowatthour charge identified in
4

the electric utility's tariff placed into effect under
5

Section 8-103 of the Public Utilities Act that, on
6

December 1, 2016, was applicable to those retail customers
7

that have opted out of subsections (a) through (j) of
8

Section 8-103B of this Act under subsection (l) of Section
9

8-103B.
10

(B) The sum of the following cents-per-kilowatthour
11

charges applicable to those retail customers that have
12

opted out of subsections (a) through (j) of Section 8-103B
13

of this Act under subsection (l) of Section 8-103B,
14

provided that if one or more of the following charges has
15

been in effect and applied to such customers for more than
16

one calendar year, then each charge shall be equal to the
17

average of the charges applied over a period that
18

commences with the calendar year ending December 31, 2017
19

and ends with the most recently completed calendar year
20

prior to the calculation required by this subsection (m):
21

(i) the cents-per-kilowatthour charge to recover
22

the costs incurred by the utility under subsection
23

(d-5) of Section 1-75 of the Illinois Power Agency
24

Act, adjusted for any reductions required under this
25

subsection (m); and
26

(ii) the cents-per-kilowatthour charge to recover

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the costs incurred by the utility under Section
2

16-107.6 of the Public Utilities Act.
3

If no charge was applied for a given calendar year
4

under item (i) or (ii) of this subparagraph (B), then the
5

value of the charge for that year shall be zero.
6

(3) If a reduction is required by the calculation
7
performed under this subsection (m), then the amount of the
8
reduction shall be multiplied by the number of years reflected
9
in the averages calculated under subparagraph (B) of paragraph
10
(2) of this subsection (m). Such reduction shall be applied to
11
the cents-per-kilowatthour charge that is applicable to those
12
retail customers that have opted out of subsections (a)
13
through (j) of Section 8-103B of this Act under subsection (l)
14
of Section 8-103B beginning with the next delivery year
15
commencing after the date of the calculation required by this
16
subsection (m).
17

(4) The electric utility shall file a notice with the
18
Commission on May 1 of 2018 and each May 1 thereafter until May
19
1, 2026 containing the reduction, if any, which must be
20
applied for the delivery year which begins in the year of the
21
filing. The notice shall contain the calculations made
22
pursuant to this Section. By October 1 of each year beginning
23
in 2018, each electric utility shall notify the Commission if
24
it appears, based on an estimate of the calculation required
25
in this subsection (m), that a reduction will be required in
26
the next year.

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(n)(1) The Commission shall, within 180 days after the
2
effective date of this amendatory Act of the 104th General
3
Assembly, initiate and complete a rulemaking proceeding to
4
revise 83 Ill. Adm. Code 466 and 83 Ill. Adm. Code 467 to
5
address barriers to timely and cost-effective interconnections
6
for distributed generation facilities with a nameplate
7
capacity of at least 40 kilowatts but no greater than 2
8
megawatts, including stand-alone solar photovoltaic systems,
9
battery energy storage, hybrid gas-electric systems, and
10
renewable natural gas integrations. The revisions shall
11
include:
12

(A) capping interconnection study costs at 150% of the
13

initial feasibility estimate or $50,000 per study,
14

whichever is lesser, requiring electric distribution
15

companies to justify estimates in advance, and prohibiting
16

overhead markups on labor or materials;
17

(B) permitting applicants to self-supply
18

interconnection studies or self-build system upgrades if
19

an electric distribution company cannot complete them
20

within 90 days or at capped costs, as long as such studies
21

and upgrades meet the technical standards for electric
22

distribution companies and are subject to Commission
23

review for compliance;
24

(C) enhancing transparency by requiring electric
25

distribution companies to provide anonymized queue data,
26

model assumptions, and progress reports under

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confidentiality agreements, while maintaining system
2

security;
3

(D) updating definitions to explicitly include
4

stand-alone solar photovoltaic systems, battery energy
5

storage, and hybrid gas-electric systems as distributed
6

generation facilities and clarifying that lower-voltage
7

facilities that qualify as transmission facilities under
8

FERC Order 888 shall be treated as transmission
9

facilities;
10

(E) mandating that all interconnection agreements be
11

filed with the Commission within 30 days after the
12

execution of the agreement, with provisions allowing
13

applicants to file unexecuted agreements in initiating a
14

rate case proceeding; and
15

(F) adding a pro forma attachment affirming that
16

interconnecting facilities, including storage, comply with
17

the requirements for non-taxable status under 26 U.S.C.
18

45.
19

(2) The Commission shall coordinate the revisions under
20
this subsection (n) with a Future of Gas proceeding pursuant
21
to the final Order of the Commission in Docket No. 24-0158 to
22
ensure compatibility with gas decarbonization pathways and to
23
prioritize market-driven distributed resources that enhance
24
reliability and affordability. The revised rules shall take
25
effect no later than July 1, 2026.

26
(Source: P.A. 102-662, eff. 9-15-21.)

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1

(Text of Section after amendment by P.A. 104-458
)
2

Sec. 16-108.
Recovery of costs associated with the
3
provision of delivery and other services.
4

(a) An electric utility shall file a delivery services
5
tariff with the Commission at least 210 days prior to the date
6
that it is required to begin offering such services pursuant
7
to this Act. An electric utility shall provide the components
8
of delivery services that are subject to the jurisdiction of
9
the Federal Energy Regulatory Commission at the same prices,
10
terms and conditions set forth in its applicable tariff as
11
approved or allowed into effect by that Commission. The
12
Commission shall otherwise have the authority pursuant to
13
Article IX to review, approve, and modify the prices, terms
14
and conditions of those components of delivery services not
15
subject to the jurisdiction of the Federal Energy Regulatory
16
Commission, including the authority to determine the extent to
17
which such delivery services should be offered on an unbundled
18
basis. In making any such determination the Commission shall
19
consider, at a minimum, the effect of additional unbundling on
20
(i) the objective of just and reasonable rates, (ii) electric
21
utility employees, and (iii) the development of competitive
22
markets for electric energy services in Illinois.
23

(b) The Commission shall enter an order approving, or
24
approving as modified, the delivery services tariff no later
25
than 30 days prior to the date on which the electric utility

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1
must commence offering such services. The Commission may
2
subsequently modify such tariff pursuant to this Act.
3

(c) The electric utility's tariffs shall define the
4
classes of its customers for purposes of delivery services
5
charges. Delivery services shall be priced and made available
6
to all retail customers electing delivery services in each
7
such class on a nondiscriminatory basis regardless of whether
8
the retail customer chooses the electric utility, an affiliate
9
of the electric utility, or another entity as its supplier of
10
electric power and energy. Charges for delivery services shall
11
be cost based, and shall allow the electric utility to recover
12
the costs of providing delivery services through its charges
13
to its delivery service customers that use the facilities and
14
services associated with such costs. Such costs shall include
15
the costs of owning, operating and maintaining transmission
16
and distribution facilities. The Commission shall also be
17
authorized to consider whether, and if so to what extent, the
18
following costs are appropriately included in the electric
19
utility's delivery services rates: (i) the costs of that
20
portion of generation facilities used for the production and
21
absorption of reactive power in order that retail customers
22
located in the electric utility's service area can receive
23
electric power and energy from suppliers other than the
24
electric utility, and (ii) the costs associated with the use
25
and redispatch of generation facilities to mitigate
26
constraints on the transmission or distribution system in

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1
order that retail customers located in the electric utility's
2
service area can receive electric power and energy from
3
suppliers other than the electric utility. Nothing in this
4
subsection shall be construed as directing the Commission to
5
allocate any of the costs described in (i) or (ii) that are
6
found to be appropriately included in the electric utility's
7
delivery services rates to any particular customer group or
8
geographic area in setting delivery services rates.
9

(d) The Commission shall establish charges, terms and
10
conditions for delivery services that are just and reasonable
11
and shall take into account customer impacts when establishing
12
such charges. In establishing charges, terms and conditions
13
for delivery services, the Commission shall take into account
14
voltage level differences. A retail customer shall have the
15
option to request to purchase electric service at any delivery
16
service voltage reasonably and technically feasible from the
17
electric facilities serving that customer's premises provided
18
that there are no significant adverse impacts upon system
19
reliability or system efficiency. A retail customer shall also
20
have the option to request to purchase electric service at any
21
point of delivery that is reasonably and technically feasible
22
provided that there are no significant adverse impacts on
23
system reliability or efficiency. Such requests shall not be
24
unreasonably denied.
25

(e) Electric utilities shall recover the costs of
26
installing, operating or maintaining facilities for the

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1
particular benefit of one or more delivery services customers,
2
including without limitation any costs incurred in complying
3
with a customer's request to be served at a different voltage
4
level, directly from the retail customer or customers for
5
whose benefit the costs were incurred, to the extent such
6
costs are not recovered through the charges referred to in
7
subsections (c) and (d) of this Section.
8

(f) An electric utility shall be entitled but not required
9
to implement transition charges in conjunction with the
10
offering of delivery services pursuant to Section 16-104. If
11
an electric utility implements transition charges, it shall
12
implement such charges for all delivery services customers and
13
for all customers described in subsection (h), but shall not
14
implement transition charges for power and energy that a
15
retail customer takes from cogeneration or self-generation
16
facilities located on that retail customer's premises, if such
17
facilities meet the following criteria:

18

(i) the cogeneration or self-generation facilities
19

serve a single retail customer and are located on that
20

retail customer's premises (for purposes of this
21

subparagraph and subparagraph (ii), an industrial or
22

manufacturing retail customer and a third party contractor
23

that is served by such industrial or manufacturing
24

customer through such retail customer's own electrical
25

distribution facilities under the circumstances described
26

in subsection (vi) of the definition of "alternative

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1

retail electric supplier" set forth in Section 16-102,
2

shall be considered a single retail customer);

3

(ii) the cogeneration or self-generation facilities
4

either (A) are sized pursuant to generally accepted
5

engineering standards for the retail customer's electrical
6

load at that premises (taking into account standby or
7

other reliability considerations related to that retail
8

customer's operations at that site) or (B) if the facility
9

is a cogeneration facility located on the retail
10

customer's premises, the retail customer is the thermal
11

host for that facility and the facility has been designed
12

to meet that retail customer's thermal energy requirements
13

resulting in electrical output beyond that retail
14

customer's electrical demand at that premises, comply with
15

the operating and efficiency standards applicable to
16

"qualifying facilities" specified in title 18 Code of
17

Federal Regulations Section 292.205 as in effect on the
18

effective date of this amendatory Act of 1999;

19

(iii) the retail customer on whose premises the
20

facilities are located either has an exclusive right to
21

receive, and corresponding obligation to pay for, all of
22

the electrical capacity of the facility, or in the case of
23

a cogeneration facility that has been designed to meet the
24

retail customer's thermal energy requirements at that
25

premises, an identified amount of the electrical capacity
26

of the facility, over a minimum 5-year period; and

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(iv) if the cogeneration facility is sized for the
2

retail customer's thermal load at that premises but
3

exceeds the electrical load, any sales of excess power or
4

energy are made only at wholesale, are subject to the
5

jurisdiction of the Federal Energy Regulatory Commission,
6

and are not for the purpose of circumventing the
7

provisions of this subsection (f).
8
If a generation facility located at a retail customer's
9
premises does not meet the above criteria, an electric utility
10
implementing transition charges shall implement a transition
11
charge until December 31, 2006 for any power and energy taken
12
by such retail customer from such facility as if such power and
13
energy had been delivered by the electric utility. Provided,
14
however, that an industrial retail customer that is taking
15
power from a generation facility that does not meet the above
16
criteria but that is located on such customer's premises will
17
not be subject to a transition charge for the power and energy
18
taken by such retail customer from such generation facility if
19
the facility does not serve any other retail customer and
20
either was installed on behalf of the customer and for its own
21
use prior to January 1, 1997, or is both predominantly fueled
22
by byproducts of such customer's manufacturing process at such
23
premises and sells or offers an average of 300 megawatts or
24
more of electricity produced from such generation facility
25
into the wholesale market. Such charges shall be calculated as
26
provided in Section 16-102, and shall be collected on each

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1
kilowatt-hour delivered under a delivery services tariff to a
2
retail customer from the date the customer first takes
3
delivery services until December 31, 2006 except as provided
4
in subsection (h) of this Section. Provided, however, that an
5
electric utility, other than an electric utility providing
6
service to at least 1,000,000 customers in this State on
7
January 1, 1999, shall be entitled to petition for entry of an
8
order by the Commission authorizing the electric utility to
9
implement transition charges for an additional period ending
10
no later than December 31, 2008. The electric utility shall
11
file its petition with supporting evidence no earlier than 16
12
months, and no later than 12 months, prior to December 31,
13
2006. The Commission shall hold a hearing on the electric
14
utility's petition and shall enter its order no later than 8
15
months after the petition is filed. The Commission shall
16
determine whether and to what extent the electric utility
17
shall be authorized to implement transition charges for an
18
additional period. The Commission may authorize the electric
19
utility to implement transition charges for some or all of the
20
additional period, and shall determine the mitigation factors
21
to be used in implementing such transition charges; provided,
22
that the Commission shall not authorize mitigation factors
23
less than 110% of those in effect during the 12 months ended
24
December 31, 2006. In making its determination, the Commission
25
shall consider the following factors: the necessity to
26
implement transition charges for an additional period in order

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1
to maintain the financial integrity of the electric utility;
2
the prudence of the electric utility's actions in reducing its
3
costs since the effective date of this amendatory Act of 1997;
4
the ability of the electric utility to provide safe, adequate
5
and reliable service to retail customers in its service area;
6
and the impact on competition of allowing the electric utility
7
to implement transition charges for the additional period.
8

(g) The electric utility shall file tariffs that establish
9
the transition charges to be paid by each class of customers to
10
the electric utility in conjunction with the provision of
11
delivery services. The electric utility's tariffs shall define
12
the classes of its customers for purposes of calculating
13
transition charges. The electric utility's tariffs shall
14
provide for the calculation of transition charges on a
15
customer-specific basis for any retail customer whose average
16
monthly maximum electrical demand on the electric utility's
17
system during the 6 months with the customer's highest monthly
18
maximum electrical demands equals or exceeds 3.0 megawatts for
19
electric utilities having more than 1,000,000 customers, and
20
for other electric utilities for any customer that has an
21
average monthly maximum electrical demand on the electric
22
utility's system of one megawatt or more, and (A) for which
23
there exists data on the customer's usage during the 3 years
24
preceding the date that the customer became eligible to take
25
delivery services, or (B) for which there does not exist data
26
on the customer's usage during the 3 years preceding the date

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1
that the customer became eligible to take delivery services,
2
if in the electric utility's reasonable judgment there exists
3
comparable usage information or a sufficient basis to develop
4
such information, and further provided that the electric
5
utility can require customers for which an individual
6
calculation is made to sign contracts that set forth the
7
transition charges to be paid by the customer to the electric
8
utility pursuant to the tariff.
9

(h) An electric utility shall also be entitled to file
10
tariffs that allow it to collect transition charges from
11
retail customers in the electric utility's service area that
12
do not take delivery services but that take electric power or
13
energy from an alternative retail electric supplier or from an
14
electric utility other than the electric utility in whose
15
service area the customer is located. Such charges shall be
16
calculated, in accordance with the definition of transition
17
charges in Section 16-102, for the period of time that the
18
customer would be obligated to pay transition charges if it
19
were taking delivery services, except that no deduction for
20
delivery services revenues shall be made in such calculation,
21
and usage data from the customer's class shall be used where
22
historical usage data is not available for the individual
23
customer. The customer shall be obligated to pay such charges
24
on a lump sum basis on or before the date on which the customer
25
commences to take service from the alternative retail electric
26
supplier or other electric utility, provided, that the

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1
electric utility in whose service area the customer is located
2
shall offer the customer the option of signing a contract
3
pursuant to which the customer pays such charges ratably over
4
the period in which the charges would otherwise have applied.
5

(i) An electric utility shall be entitled to add to the
6
bills of delivery services customers charges pursuant to
7
Sections 9-221, 9-222 (except as provided in Section 9-222.1),
8
and Section 16-114 of this Act, Section 5-5 of the Electricity
9
Infrastructure Maintenance Fee Law, Section 6-5 of the
10
Renewable Energy, Energy Efficiency, and Coal Resources
11
Development Law of 1997, and Section 13 of the Energy
12
Assistance Act.
13

(i-5) An electric utility required to impose the Coal to
14
Solar and Energy Storage Initiative Charge provided for in
15
subsection (c-5) of Section 1-75 of the Illinois Power Agency
16
Act shall add such charge to the bills of its delivery services
17
customers pursuant to the terms of a tariff conforming to the
18
requirements of subsection (c-5) of Section 1-75 of the
19
Illinois Power Agency Act and this subsection (i-5) and filed
20
with and approved by the Commission. The electric utility
21
shall file its proposed tariff with the Commission on or
22
before July 1, 2022 to be effective, after review and approval
23
or modification by the Commission, beginning January 1, 2023.
24
On or before December 1, 2022, the Commission shall review the
25
electric utility's proposed tariff, including by conducting a
26
docketed proceeding if deemed necessary by the Commission, and

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shall approve the proposed tariff or direct the electric
2
utility to make modifications the Commission finds necessary
3
for the tariff to conform to the requirements of subsection
4
(c-5) of Section 1-75 of the Illinois Power Agency Act and this
5
subsection (i-5). The electric utility's tariff shall provide
6
for imposition of the Coal to Solar and Energy Storage
7
Initiative Charge on a per-kilowatthour basis to all
8
kilowatthours delivered by the electric utility to its
9
delivery services customers. The tariff shall provide for the
10
calculation of the Coal to Solar and Energy Storage Initiative
11
Charge to be in effect for the year beginning January 1, 2023
12
and each year beginning January 1 thereafter, sufficient to
13
collect the electric utility's estimated payment obligations
14
for the delivery year beginning the following June 1 under
15
contracts for purchase of renewable energy credits entered
16
into pursuant to subsection (c-5) of Section 1-75 of the
17
Illinois Power Agency Act and the obligations of the
18
Department of Commerce and Economic Opportunity, or any
19
successor department or agency, which for purposes of this
20
subsection (i-5) shall be referred to as the Department, to
21
make grant payments during such delivery year from the Coal to
22
Solar and Energy Storage Initiative Fund pursuant to grant
23
contracts entered into pursuant to subsection (c-5) of Section
24
1-75 of the Illinois Power Agency Act, and using the electric
25
utility's kilowatthour deliveries to its delivery services
26
customers during the delivery year ended May 31 of the

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preceding calendar year. On or before November 1 of each year
2
beginning November 1, 2022, the Department shall notify the
3
electric utilities of the amount of the Department's estimated
4
obligations for grant payments during the delivery year
5
beginning the following June 1 pursuant to grant contracts
6
entered into pursuant to subsection (c-5) of Section 1-75 of
7
the Illinois Power Agency Act; and each electric utility shall
8
incorporate in the calculation of its Coal to Solar and Energy
9
Storage Initiative Charge the fractional portion of the
10
Department's estimated obligations equal to the electric
11
utility's kilowatthour deliveries to its delivery services
12
customers in the delivery year ended the preceding May 31
13
divided by the aggregate deliveries of both electric utilities
14
to delivery services customers in such delivery year. The
15
electric utility shall remit on a monthly basis to the State
16
Treasurer, for deposit in the Coal to Solar and Energy Storage
17
Initiative Fund provided for in subsection (c-5) of Section
18
1-75 of the Illinois Power Agency Act, the electric utility's
19
collections of the Coal to Solar and Energy Storage Initiative
20
Charge estimated to be needed by the Department for grant
21
payments pursuant to grant contracts entered into pursuant to
22
subsection (c-5) of Section 1-75 of the Illinois Power Agency
23
Act. The initial charge under the electric utility's tariff
24
shall be effective for kilowatthours delivered beginning
25
January 1, 2023, and thereafter shall be revised to be
26
effective January 1, 2024 and each January 1 thereafter, based

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on the payment obligations for the delivery year beginning the
2
following June 1. The tariff shall provide for the electric
3
utility to make an annual filing with the Commission on or
4
before November 15 of each year, beginning in 2023, setting
5
forth the Coal to Solar and Energy Storage Initiative Charge
6
to be in effect for the year beginning the following January 1.
7
The electric utility's tariff shall also provide that the
8
electric utility shall make a filing with the Commission on or
9
before August 1 of each year beginning in 2024 setting forth a
10
reconciliation, for the delivery year ended the preceding May
11
31, of the electric utility's collections of the Coal to Solar
12
and Energy Storage Initiative Charge against actual payments
13
for renewable energy credits pursuant to contracts entered
14
into, and the actual grant payments by the Department pursuant
15
to grant contracts entered into, pursuant to subsection (c-5)
16
of Section 1-75 of the Illinois Power Agency Act. The tariff
17
shall provide that any excess or shortfall of collections to
18
payments shall be deducted from or added to, on a
19
per-kilowatthour basis, the Coal to Solar and Energy Storage
20
Initiative Charge, over the 6-month period beginning October 1
21
of that calendar year.
22

(j) If a retail customer that obtains electric power and
23
energy from cogeneration or self-generation facilities
24
installed for its own use on or before January 1, 1997,
25
subsequently takes service from an alternative retail electric
26
supplier or an electric utility other than the electric

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1
utility in whose service area the customer is located for any
2
portion of the customer's electric power and energy
3
requirements formerly obtained from those facilities
4
(including that amount purchased from the utility in lieu of
5
such generation and not as standby power purchases, under a
6
cogeneration displacement tariff in effect as of the effective
7
date of this amendatory Act of 1997), the transition charges
8
otherwise applicable pursuant to subsections (f), (g), or (h)
9
of this Section shall not be applicable in any year to that
10
portion of the customer's electric power and energy
11
requirements formerly obtained from those facilities,
12
provided, that for purposes of this subsection (j), such
13
portion shall not exceed the average number of kilowatt-hours
14
per year obtained from the cogeneration or self-generation
15
facilities during the 3 years prior to the date on which the
16
customer became eligible for delivery services, except as
17
provided in subsection (f) of Section 16-110.
18

(k) The electric utility shall be entitled to recover
19
through tariffed charges all of the costs associated with the
20
purchase of zero emission credits from zero emission
21
facilities to meet the requirements of subsection (d-5) of
22
Section 1-75 of the Illinois Power Agency Act and all of the
23
costs associated with the purchase of carbon mitigation
24
credits from carbon-free energy resources to meet the
25
requirements of subsection (d-10) of Section 1-75 of the
26
Illinois Power Agency Act. Such costs shall include the costs

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of procuring the zero emission credits and carbon mitigation
2
credits from carbon-free energy resources, as well as the
3
reasonable costs that the utility incurs as part of the
4
procurement processes and to implement and comply with plans
5
and processes approved by the Commission under subsections
6
(d-5) and (d-10). The costs shall be allocated across all
7
retail customers through a single, uniform cents per
8
kilowatt-hour charge applicable to all retail customers, which
9
shall appear as a separate line item on each customer's bill.
10
The electric utility shall be entitled to recover through
11
tariffed charges approved by the Commission all of the prudent
12
and reasonable costs associated with energy storage resources
13
procurements to meet the energy storage system portfolio
14
standard of subsection (d-20) of Section 1-75 of the Illinois
15
Power Agency Act. Such costs shall include the contract costs
16
for the energy storage system resources and the prudent and
17
reasonable costs that the utility incurs as part of the
18
procurement processes and in implementing and complying with
19
plans and processes approved by the Commission under
20
subsection (d-20). The costs associated with the purchase of
21
energy storage system resources shall be allocated across all
22
retail customers in proportion to the amount of energy storage
23
system resources the utility procures for such customers
24
through a single, uniform cents per kilowatt-hour charge
25
applicable to such retail customers, which shall appear as a
26
separate line item on each customer's bill. Beginning June 1,

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1
2017, the electric utility shall be entitled to recover
2
through tariffed charges all of the costs associated with the
3
purchase of renewable energy resources to meet the renewable
4
energy resource standards of subsection (c) of Section 1-75 of
5
the Illinois Power Agency Act, under procurement plans as
6
approved in accordance with that Section and Section 16-111.5
7
of this Act. Such costs shall include the costs of procuring
8
the renewable energy resources, as well as the reasonable
9
costs that the utility incurs as part of the procurement
10
processes and to implement and comply with plans and processes
11
approved by the Commission under such Sections. The costs
12
associated with the purchase of renewable energy resources
13
shall be allocated across all retail customers in proportion
14
to the amount of renewable energy resources the utility
15
procures for such customers through a single, uniform cents
16
per kilowatt-hour charge applicable to such retail customers,
17
which shall appear as a separate line item on each such
18
customer's bill. The credits, costs, and penalties associated
19
with the self-direct renewable portfolio standard compliance
20
program described in subparagraph (R) of paragraph (1) of
21
subsection (c) of Section 1-75 of the Illinois Power Agency
22
Act shall be allocated to approved eligible self-direct
23
customers by the utility in a cents per kilowatt-hour credit,
24
cost, or penalty, which shall appear as a separate line item on
25
each such customer's bill.
26

Notwithstanding whether the Commission has approved the

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1
initial long-term renewable resources procurement plan as of
2
June 1, 2017, an electric utility shall place new tariffed
3
charges into effect beginning with the June 2017 monthly
4
billing period, to the extent practicable, to begin recovering
5
the costs of procuring renewable energy resources, as those
6
charges are calculated under the limitations described in
7
subparagraph (E) of paragraph (1) of subsection (c) of Section
8
1-75 of the Illinois Power Agency Act. Notwithstanding the
9
date on which the utility places such new tariffed charges
10
into effect, the utility shall be permitted to collect the
11
charges under such tariff as if the tariff had been in effect
12
beginning with the first day of the June 2017 monthly billing
13
period. For the delivery years commencing June 1, 2017, June
14
1, 2018, June 1, 2019, and each delivery year thereafter, the
15
electric utility shall deposit into a separate interest
16
bearing account of a financial institution the monies
17
collected under the tariffed charges. Money collected from
18
customers for the procurement of renewable energy resources in
19
a given delivery year may be spent by the utility for the
20
procurement of renewable resources over any of the following 5
21
delivery years, after which unspent money shall be credited
22
back to retail customers. The electric utility shall spend all
23
money collected in earlier delivery years that has not yet
24
been returned to customers, first, before spending money
25
collected in later delivery years. Any interest earned shall
26
be credited back to retail customers under the reconciliation

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1
proceeding provided for in this subsection (k), provided that
2
the electric utility shall first be reimbursed from the
3
interest for the administrative costs that it incurs to
4
administer and manage the account. Any taxes due on the funds
5
in the account, or interest earned on it, will be paid from the
6
account or, if insufficient monies are available in the
7
account, from the monies collected under the tariffed charges
8
to recover the costs of procuring renewable energy resources.
9
Monies deposited in the account shall be subject to the
10
review, reconciliation, and true-up process described in this
11
subsection (k) that is applicable to the funds collected and
12
costs incurred for the procurement of renewable energy
13
resources.
14

The electric utility shall be entitled to recover all of
15
the costs identified in this subsection (k) through automatic
16
adjustment clause tariffs applicable to all of the utility's
17
retail customers that allow the electric utility to adjust its
18
tariffed charges consistent with this subsection (k). The
19
determination as to whether any excess funds were collected
20
during a given delivery year for the purchase of renewable
21
energy resources, and the crediting of any excess funds back
22
to retail customers, shall not be made until after the close of
23
the delivery year, which will ensure that the maximum amount
24
of funds is available to implement the approved long-term
25
renewable resources procurement plan during a given delivery
26
year. The amount of excess funds eligible to be credited back

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1
to retail customers shall be reduced by an amount equal to the
2
payment obligations required by any contracts entered into by
3
an electric utility under contracts described in subsection
4
(b) of Section 1-56 and subsection (c) of Section 1-75 of the
5
Illinois Power Agency Act, even if such payments have not yet
6
been made and regardless of the delivery year in which those
7
payment obligations were incurred. Notwithstanding anything to
8
the contrary, including in tariffs authorized by this
9
subsection (k) in effect before the effective date of this
10
amendatory Act of the 102nd General Assembly, all unspent
11
funds as of May 31, 2021, excluding any funds credited to
12
customers during any utility billing cycle that commences
13
prior to the effective date of this amendatory Act of the 102nd
14
General Assembly, shall remain in the utility account and
15
shall on a first in, first out basis be used toward utility
16
payment obligations under contracts described in subsection
17
(b) of Section 1-56 and subsection (c) of Section 1-75 of the
18
Illinois Power Agency Act. The electric utility's collections
19
under such automatic adjustment clause tariffs to recover the
20
costs of renewable energy resources, zero emission credits
21
from zero emission facilities, energy storage resources, and
22
carbon mitigation credits from carbon-free energy resources
23
shall be subject to separate annual review, reconciliation,
24
and true-up against actual costs by the Commission under a
25
procedure that shall be specified in the electric utility's
26
automatic adjustment clause tariffs and that shall be approved

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1
by the Commission in connection with its approval of such
2
tariffs. The procedure shall provide that any difference
3
between the electric utility's collections for energy storage
4
resources, zero emission credits, and carbon mitigation
5
credits under the automatic adjustment charges for an annual
6
period and the electric utility's actual costs of energy
7
storage resources, zero emission credits from zero emission
8
facilities, and carbon mitigation credits from carbon-free
9
energy resources for that same annual period shall be refunded
10
to or collected from, as applicable, the electric utility's
11
retail customers in subsequent periods.
12

Nothing in this subsection (k) is intended to affect,
13
limit, or change the right of the electric utility to recover
14
the costs associated with the procurement of renewable energy
15
resources for periods commencing before, on, or after June 1,
16
2017, as otherwise provided in the Illinois Power Agency Act.
17

The funding available under this subsection (k), if any,
18
for the programs described under subsection (b) of Section
19
1-56 of the Illinois Power Agency Act shall not reduce the
20
amount of funding for the programs described in subparagraph
21
(O) of paragraph (1) of subsection (c) of Section 1-75 of the
22
Illinois Power Agency Act. If funding is available under this
23
subsection (k) for programs described under subsection (b) of
24
Section 1-56 of the Illinois Power Agency Act, then the
25
long-term renewable resources plan shall provide for the
26
Agency to procure contracts in an amount that does not exceed

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1
the funding, and the contracts approved by the Commission
2
shall be executed by the applicable utility or utilities.
3

(l) A utility that has terminated any contract executed
4
under subsection (d-5) or (d-10) of Section 1-75 of the
5
Illinois Power Agency Act shall be entitled to recover any
6
remaining balance associated with the purchase of zero
7
emission credits prior to such termination, and such utility
8
shall also apply a credit to its retail customer bills in the
9
event of any over-collection.
10

(m)(1) An electric utility that recovers its costs of
11
procuring zero emission credits from zero emission facilities
12
through a cents-per-kilowatthour charge under subsection (k)
13
of this Section shall be subject to the requirements of this
14
subsection (m). Notwithstanding anything to the contrary, such
15
electric utility shall, beginning on April 30, 2018, and each
16
April 30 thereafter until April 30, 2026, calculate whether
17
any reduction must be applied to such cents-per-kilowatthour
18
charge that is paid by retail customers of the electric
19
utility that have opted out of subsections (a) through (j) of
20
Section 8-103B of this Act under subsection (l) of Section
21
8-103B. Such charge shall be reduced for such customers for
22
the next delivery year commencing on June 1 based on the amount
23
necessary, if any, to limit the annual estimated average net
24
increase for the prior calendar year due to the future energy
25
investment costs to no more than 1.3% of 5.98 cents per
26
kilowatt-hour, which is the average amount paid per

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1
kilowatthour for electric service during the year ending
2
December 31, 2015 by Illinois industrial retail customers, as
3
reported to the Edison Electric Institute.
4

The calculations required by this subsection (m) shall be
5
made only once for each year, and no subsequent rate impact
6
determinations shall be made.
7

(2) For purposes of this Section, "future energy
8
investment costs" shall be calculated by subtracting the
9
cents-per-kilowatthour charge identified in subparagraph (A)
10
of this paragraph (2) from the sum of the
11
cents-per-kilowatthour charges identified in subparagraph (B)
12
of this paragraph (2):
13

(A) The cents-per-kilowatthour charge identified in
14

the electric utility's tariff placed into effect under
15

Section 8-103 of the Public Utilities Act that, on
16

December 1, 2016, was applicable to those retail customers
17

that have opted out of subsections (a) through (j) of
18

Section 8-103B of this Act under subsection (l) of Section
19

8-103B.
20

(B) The sum of the following cents-per-kilowatthour
21

charges applicable to those retail customers that have
22

opted out of subsections (a) through (j) of Section 8-103B
23

of this Act under subsection (l) of Section 8-103B,
24

provided that if one or more of the following charges has
25

been in effect and applied to such customers for more than
26

one calendar year, then each charge shall be equal to the

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1

average of the charges applied over a period that
2

commences with the calendar year ending December 31, 2017
3

and ends with the most recently completed calendar year
4

prior to the calculation required by this subsection (m):
5

(i) the cents-per-kilowatthour charge to recover
6

the costs incurred by the utility under subsection
7

(d-5) of Section 1-75 of the Illinois Power Agency
8

Act, adjusted for any reductions required under this
9

subsection (m); and
10

(ii) the cents-per-kilowatthour charge to recover
11

the costs incurred by the utility under Section
12

16-107.6 of the Public Utilities Act.
13

If no charge was applied for a given calendar year
14

under item (i) or (ii) of this subparagraph (B), then the
15

value of the charge for that year shall be zero.
16

(3) If a reduction is required by the calculation
17
performed under this subsection (m), then the amount of the
18
reduction shall be multiplied by the number of years reflected
19
in the averages calculated under subparagraph (B) of paragraph
20
(2) of this subsection (m). Such reduction shall be applied to
21
the cents-per-kilowatthour charge that is applicable to those
22
retail customers that have opted out of subsections (a)
23
through (j) of Section 8-103B of this Act under subsection (l)
24
of Section 8-103B beginning with the next delivery year
25
commencing after the date of the calculation required by this
26
subsection (m).

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1

(4) The electric utility shall file a notice with the
2
Commission on May 1 of 2018 and each May 1 thereafter until May
3
1, 2026 containing the reduction, if any, which must be
4
applied for the delivery year which begins in the year of the
5
filing. The notice shall contain the calculations made
6
pursuant to this Section. By October 1 of each year beginning
7
in 2018, each electric utility shall notify the Commission if
8
it appears, based on an estimate of the calculation required
9
in this subsection (m), that a reduction will be required in
10
the next year.
11

(n)(1) The Commission shall, within 180 days after the
12
effective date of this amendatory Act of the 104th General
13
Assembly, initiate and complete a rulemaking proceeding to
14
revise 83 Ill. Adm. Code 466 and 83 Ill. Adm. Code 467 to
15
address barriers to timely and cost-effective interconnections
16
for distributed generation facilities with a nameplate
17
capacity of at least 40 kilowatts but no greater than 2
18
megawatts, including stand-alone solar photovoltaic systems,
19
battery energy storage, hybrid gas-electric systems, and
20
renewable natural gas integrations. The revisions shall
21
include:
22

(A) capping interconnection study costs at 150% of the
23

initial feasibility estimate or $50,000 per study,
24

whichever is lesser, requiring electric distribution
25

companies to justify estimates in advance, and prohibiting
26

overhead markups on labor or materials;

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1

(B) permitting applicants to self-supply
2

interconnection studies or self-build system upgrades if
3

an electric distribution company cannot complete them
4

within 90 days or at capped costs, as long as such studies
5

and upgrades meet the technical standards for electric
6

distribution companies and are subject to Commission
7

review for compliance;
8

(C) enhancing transparency by requiring electric
9

distribution companies to provide anonymized queue data,
10

model assumptions, and progress reports under
11

confidentiality agreements, while maintaining system
12

security;
13

(D) updating definitions to explicitly include
14

stand-alone solar photovoltaic systems, battery energy
15

storage, and hybrid gas-electric systems as distributed
16

generation facilities and clarifying that lower-voltage
17

facilities that qualify as transmission facilities under
18

FERC Order 888 shall be treated as transmission
19

facilities;
20

(E) mandating that all interconnection agreements be
21

filed with the Commission within 30 days after the
22

execution of the agreement, with provisions allowing
23

applicants to file unexecuted agreements in initiating a
24

rate case proceeding; and
25

(F) adding a pro forma attachment affirming that
26

interconnecting facilities, including storage, comply with

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1

the requirements for non-taxable status under 26 U.S.C.
2

45.
3

(2) The Commission shall coordinate the revisions under
4
this subsection (n) with a Future of Gas proceeding pursuant
5
to the final Order of the Commission in Docket No. 24-0158 to
6
ensure compatibility with gas decarbonization pathways and to
7
prioritize market-driven distributed resources that enhance
8
reliability and affordability. The revised rules shall take
9
effect no later than July 1, 2026.

10
(Source: P.A. 104-458, eff. 6-1-26.)

11

Section 95.
No acceleration or delay.
Where this Act makes
12
changes in a statute that is represented in this Act by text
13
that is not yet or no longer in effect (for example, a Section
14
represented by multiple versions), the use of that text does
15
not accelerate or delay the taking effect of (i) the changes
16
made by this Act or (ii) provisions derived from any other
17
Public Act.

18

Section 99.
Effective date.
This Act takes effect upon
19
becoming law.

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