UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

May 23, 2007
Date of Report (Date of earliest event reported)

Commission File		Exact Name of Registrant as Specified in Its Charter; State of Incorporation;		IRS Employer
Number		Address of Principal Executive Offices; and Telephone Number		Identification Number
1-16169		EXELON CORPORATION		23-2990190
		(a Pennsylvania corporation) 10 South Dearborn Street P.O. Box 805379 Chicago, Illinois 60680-5379 (312) 394-7398
333-85496		EXELON GENERATION COMPANY, LLC		23-3064219
		(a Pennsylvania limited liability company) 300 Exelon Way Kennett Square, Pennsylvania 19348 (610) 765-5959
1-1839		COMMONWEALTH EDISON COMPANY		36-0938600
		(an Illinois corporation) 440 South LaSalle Street Chicago, Illinois 60605-1028 (312) 394-4321

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Section 8 — Other Events
Item 8.01 Other Events.

In the Current Report on Form 8-K filed on May 24, 2007, Exelon Corporation (Exelon) disclosed that Floor Amendment No. 3 to Senate Bill 1592 was posted in the Illinois House of Representatives (House) and the bill was assigned to the House Electric Utility Oversight Committee. On May 24, 2007, the House Electric Utility Oversight Committee approved the amendment by a vote of 5 to 4, and the bill may go to the House for a vote at any time. The text of the amended bill is attached as Exhibit 99.1 to this Current Report on Form 8-K.

* * * * *

This combined Form 8-K is being furnished separately by Exelon, Exelon Generation Company, LLC (Generation) and Commonwealth Edison Company (ComEd) (Registrants). Information contained herein relating to any individual registrant has been furnished by such registrant on its own behalf. No registrant makes any representation as to information relating to any other registrant.

This Current Report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from these forward-looking statements include those discussed herein as well as those discussed in (1) Exelon’s, Generation’s and ComEd’s 2006 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation and (c) ITEM 8, Financial Statements and Supplementary Data: Note 18; (2) Exelon’s First Quarter 2007 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors and (b) Part I, Financial Information, ITEM 1. Financial Statements: Note 13; and (3) other factors discussed in filings with the SEC by Exelon, Generation and ComEd. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Current Report. Exelon, Generation and ComEd do not undertake any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Current Report.

Section 9 — Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
99.1		Floor Amendment No. 3 to Senate Bill 1592

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

May 25, 2007

EXHIBIT INDEX

Exhibit No.		Description
99.1		Floor Amendment No. 3 to Senate Bill 1592

09500SB1592ham003		LRB095 11114 BDD 36924 a

1		FLOOR AMENDMENT TO SENATE BILL 1592
2		AMENDMENT NO. 3. Amend Senate Bill 1592 by inserting
3		immediately above the enacting clause the following:
4		“WHEREAS, This Act shall be known as the Electricity Rate
5		Relief Act of 2007; therefore,”; and
6		by replacing everything after the enacting clause with the
7		following:
8		“ARTICLE 1. LEGISLATIVE INTENT
9		Section 1-5. Legislative intent. In the Electric Service
10		Customer Choice and Rate Relief Law of 1997, the General
11		Assembly authorized market-based electric rates only if retail
12		and wholesale competition developed in Illinois and if the
13		Illinois Commerce Commission declared electric service to be
14		“competitive”.
15		In 2006, however, the Illinois Commerce Commission

09500SB1592ham003		-2-		LRB095 11114 BDD 36924 a

1		authorized market-based rates for electric service that had
2		not, and still has not, been declared competitive.
3		As a result, the General Assembly finds it necessary to
4		take the steps set forth in this amendatory Act to provide
5		immediate relief to consumers, who have been harmed by the
6		Illinois Commerce Commission’s approval of market-based rates
7		in the absence of a competitive declaration.
8		ARTICLE 3. AMENDATORY PROVISIONS
9		Section 3-5. The Public Utilities Act is amended by
10		changing Sections 16-102, 16-103, 16-111, and 16-113 and by
11		adding Sections 8-205.5 and 16-135 as follows:
12		(220 ILCS 5/8-205.5 new)
13		Sec. 8-205.5. Termination of utility service prior to March
14		31, 2008. Notwithstanding any other provision of this Act or
15		any other law to the contrary, a public utility that, on
16		December 31, 2005, served at least 100,000 electric customers
17		in Illinois may not terminate electric service to a residential
18		customer for nonpayment prior to March 31, 2008.
19		(220 ILCS 5/16-102)
20		Sec. 16-102. Definitions. For the purposes of this Article
21		the following terms shall be defined as set forth in this
22		Section.

09500SB1592ham003		-3-		LRB095 11114 BDD 36924 a

1		“Alternative retail electric supplier” means every person,
2		cooperative, corporation, municipal corporation, company,
3		association, joint stock company or association, firm,
4		partnership, individual, or other entity, their lessees,
5		trustees, or receivers appointed by any court whatsoever, that
6		offers electric power or energy for sale, lease or in exchange
7		for other value received to one or more retail customers, or
8		that engages in the delivery or furnishing of electric power or
9		energy to such retail customers, and shall include, without
10		limitation, resellers, aggregators and power marketers, but
11		shall not include (i) electric utilities (or any agent of the
12		electric utility to the extent the electric utility provides
13		tariffed services to retail customers through that agent), (ii)
14		any electric cooperative or municipal system as defined in
15		Section 17-100 to the extent that the electric cooperative or
16		municipal system is serving retail customers within any area in
17		which it is or would be entitled to provide service under the
18		law in effect immediately prior to the effective date of this
19		amendatory Act of 1997, (iii) a public utility that is owned
20		and operated by any public institution of higher education of
21		this State, or a public utility that is owned by such public
22		institution of higher education and operated by any of its
23		lessees or operating agents, within any area in which it is or
24		would be entitled to provide service under the law in effect
25		immediately prior to the effective date of this amendatory Act
26		of 1997, (iv) a retail customer to the extent that customer

09500SB1592ham003		-4-		LRB095 11114 BDD 36924 a

1		obtains its electric power and energy from that customer’s own
2		cogeneration or self-generation facilities, (v) an entity that
3		owns, operates, sells, or arranges for the installation of a
4		customer’s own cogeneration or self-generation facilities, but
5		only to the extent the entity is engaged in owning, selling or
6		arranging for the installation of such facility, or operating
7		the facility on behalf of such customer, provided however that
8		any such third party owner or operator of a facility built
9		after January 1, 1999, complies with the labor provisions of
10		Section 16-128(a) as though such third party were an
11		alternative retail electric supplier, or (vi) an industrial or
12		manufacturing customer that owns its own distribution
13		facilities, to the extent that the customer provides service
14		from that distribution system to a third-party contractor
15		located on the customer’s premises that is integrally and
16		predominantly engaged in the customer’s industrial or
17		manufacturing process; provided, that if the industrial or
18		manufacturing customer has elected delivery services, the
19		customer shall pay transition charges applicable to the
20		electric power and energy consumed by the third-party
21		contractor unless such charges are otherwise paid by the third
22		party contractor, which shall be calculated based on the usage
23		of, and the base rates or the contract rates applicable to, the
24		third-party contractor in accordance with Section 16-102.
25		“Base rates” means the rates for those tariffed services
26		that the electric utility is required to offer pursuant to

09500SB1592ham003		-5-		LRB095 11114 BDD 36924 a

1		subsection (a) of Section 16-103 and that were identified in a
2		rate order for collection of the electric utility’s base rate
3		revenue requirement, excluding (i) separate automatic rate
4		adjustment riders then in effect, (ii) special or negotiated
5		contract rates, (iii) delivery services tariffs filed pursuant
6		to Section 16-108, (iv) real-time pricing, or (v) tariffs that
7		were in effect prior to October 1, 1996 and that based charges
8		for services on an index or average of other utilities’
9		charges, but including (vi) any subsequent redesign of such
10		rates for tariffed services that is authorized by the
11		Commission after notice and hearing.
12		“Competitive service” includes (i) any service that has
13		been declared to be competitive pursuant to Section 16-113 of
14		this Act, (ii) contract service, and (iii) services, other than
15		tariffed services, that are related to, but not necessary for,
16		the provision of electric power and energy or delivery
17		services.
18		“Contract service” means (1) services, including the
19		provision of electric power and energy or other services, that
20		are provided by mutual agreement between an electric utility
21		and a retail customer that is located in the electric utility’s
22		service area, provided that, delivery services shall not be a
23		contract service until such services are declared competitive
24		pursuant to Section 16-113; and also means (2) the provision of
25		electric power and energy by an electric utility to retail
26		customers outside the electric utility’s service area pursuant

09500SB1592ham003		-6-		LRB095 11114 BDD 36924 a

1		to Section 16-116. Provided, however, contract service does not
2		include electric utility services provided pursuant to (i)
3		contracts that retail customers are required to execute as a
4		condition of receiving tariffed services, or (ii) special or
5		negotiated rate contracts for electric utility services that
6		were entered into between an electric utility and a retail
7		customer prior to the effective date of this amendatory Act of
8		1997 and filed with the Commission.
9		“Delivery services” means those services provided by the
10		electric utility that are necessary in order for the
11		transmission and distribution systems to function so that
12		retail customers located in the electric utility’s service area
13		can receive electric power and energy from suppliers other than
14		the electric utility, and shall include, without limitation,
15		standard metering and billing services.
16		“Electric utility” means a public utility, as defined in
17		Section 3-105 of this Act, that has a franchise, license,
18		permit or right to furnish or sell electricity to retail
19		customers within a service area.
20		“Mandatory transition period” means the period from the
21		effective date of Public Act 90-561 this amendatory Act of 1997
22		through January 1, 2007 and from the effective date of this
23		amendatory Act of the 95th General Assembly through the date on
24		which the Commission has approved declarations of competitive
25		service, pursuant to Section 16-113, for all classes of service
26		offered in the service areas of all electric utilities that, on

09500SB1592ham003		-7-		LRB095 11114 BDD 36924 a

1		December 31, 2005, served at least 100,000 residential
2		customers.
3		“Municipal system” shall have the meaning set forth in
4		Section 17-100.
5		“Real-time pricing” means tariffed retail charges for
6		delivered electric power and energy that vary hour-to-hour and
7		are determined from wholesale market prices using a methodology
8		approved by the Illinois Commerce Commission.
9		“Residential customer” means those retail customers of an
10		electric utility that receive (i) electric utility service for
11		household purposes distributed to a dwelling of 2 or fewer
12		units that is billed under a residential rate or (ii) electric
13		utility service for household purposes distributed to a
14		dwelling unit or units that is billed under a residential rate
15		and is registered by a separate meter for each dwelling unit.
16		“Retail customer” means a single entity using electric
17		power or energy at a single premises and that (A) either (i) is
18		receiving or is eligible to receive tariffed services from an
19		electric utility, or (ii) that is served by a municipal system
20		or electric cooperative within any area in which the municipal
21		system or electric cooperative is or would be entitled to
22		provide service under the law in effect immediately prior to
23		the effective date of this amendatory Act of 1997, or (B) an
24		entity which on the effective date of this Act was receiving
25		electric service from a public utility and (i) was engaged in
26		the practice of resale and redistribution of such electricity

09500SB1592ham003		-8-		LRB095 11114 BDD 36924 a

1		within a building prior to January 2, 1957, or (ii) was
2		providing lighting services to tenants in a multi-occupancy
3		building, but only to the extent such resale, redistribution or
4		lighting service is authorized by the electric utility’s
5		tariffs that were on file with the Commission on the effective
6		date of this Act.
7		“Service area” means (i) the geographic area within which
8		an electric utility was lawfully entitled to provide electric
9		power and energy to retail customers as of the effective date
10		of this amendatory Act of 1997, and includes (ii) the location
11		of any retail customer to which the electric utility was
12		lawfully providing electric utility services on such effective
13		date.
14		“Small commercial retail customer” means those
15		nonresidential retail customers of an electric utility
16		consuming 15,000 kilowatt-hours or less of electricity
17		annually in its service area.
18		“Tariffed service” means services provided to retail
19		customers by an electric utility as defined by its rates on
20		file with the Commission pursuant to the provisions of Article
21		IX of this Act, but shall not include competitive services.
22		“Transition charge” means a charge expressed in cents per
23		kilowatt-hour that is calculated for a customer or class of
24		customers as follows for each year in which an electric utility
25		is entitled to recover transition charges as provided in
26		Section 16-108:

09500SB1592ham003		-9-		LRB095 11114 BDD 36924 a

1		(1) the amount of revenue that an electric utility
2		would receive from the retail customer or customers if it
3		were serving such customers’ electric power and energy
4		requirements as a tariffed service based on (A) all of the
5		customers’ actual usage during the 3 years ending 90 days
6		prior to the date on which such customers were first
7		eligible for delivery services pursuant to Section 16-104,
8		and (B) on (i) the base rates in effect on October 1, 1996
9		(adjusted for the reductions required by subsection (b) of
10		Section 16-111, for any reduction resulting from a rate
11		decrease under Section 16-101(b), for any restatement of
12		base rates made in conjunction with an elimination of the
13		fuel adjustment clause pursuant to subsection (b), (d), or
14		(f) of Section 9-220 and for any removal of decommissioning
15		costs from base rates pursuant to Section 16-114) and any
16		separate automatic rate adjustment riders (other than a
17		decommissioning rate as defined in Section 16-114) under
18		which the customers were receiving or, had they been
19		customers, would have received electric power and energy
20		from the electric utility during the year immediately
21		preceding the date on which such customers were first
22		eligible for delivery service pursuant to Section 16-104,
23		or (ii) to the extent applicable, any contract rates,
24		including contracts or rates for consolidated or
25		aggregated billing, under which such customers were
26		receiving electric power and energy from the electric

09500SB1592ham003		-10-		LRB095 11114 BDD 36924 a

1		utility during such year;
2		(2) less the amount of revenue, other than revenue from
3		transition charges and decommissioning rates, that the
4		electric utility would receive from such retail customers
5		for delivery services provided by the electric utility,
6		assuming such customers were taking delivery services for
7		all of their usage, based on the delivery services tariffs
8		in effect during the year for which the transition charge
9		is being calculated and on the usage identified in
10		paragraph (1);
11		(3) less the market value for the electric power and
12		energy that the electric utility would have used to supply
13		all of such customers’ electric power and energy
14		requirements, as a tariffed service, based on the usage
15		identified in paragraph (1), with such market value
16		determined in accordance with Section 16-112 of this Act;
17		(4) less the following amount which represents the
18		amount to be attributed to new revenue sources and cost
19		reductions by the electric utility through the end of the
20		period for which transition costs are recovered pursuant to
21		Section 16-108, referred to in this Article XVI as a
22		“mitigation factor”:
23		(A) for nonresidential retail customers, an amount
24		equal to the greater of (i) 0.5 cents per kilowatt-hour
25		during the period October 1, 1999 through December 31,
26		2004, 0.6 cents per kilowatt-hour in calendar year

09500SB1592ham003		-11-		LRB095 11114 BDD 36924 a

1		2005, and 0.9 cents per kilowatt-hour in calendar year
2		2006, multiplied in each year by the usage identified
3		in paragraph (1), or (ii) an amount equal to the
4		following percentages of the amount produced by
5		applying the applicable base rates (adjusted as
6		described in subparagraph (1)(B)) or contract rate to
7		the usage identified in paragraph (1): 8% for the
8		period October 1, 1999 through December 31, 2002, 10%
9		in calendar years 2003 and 2004, 11% in calendar year
10		2005 and 12% in calendar year 2006; and
11		(B) for residential retail customers, an amount
12		equal to the following percentages of the amount
13		produced by applying the base rates in effect on
14		October 1, 1996 (adjusted as described in subparagraph
15		(1) (B)) to the usage identified in paragraph (1): (i)
16		6% from May 1, 2002 through December 31, 2002, (ii) 7%
17		in calendar years 2003 and 2004, (iii) 8% in calendar
18		year 2005, and (iv) 10% in calendar year 2006;
19		(5) divided by the usage of such customers identified
20		in paragraph (1),
21		provided that the transition charge shall never be less than
22		zero.
23		“Unbundled service” means a component or constituent part
24		of a tariffed service which the electric utility subsequently
25		offers separately to its customers.
26		(Source: P.A. 94-977, eff. 6-30-06.)

09500SB1592ham003		-12-		LRB095 11114 BDD 36924 a

1		(220 ILCS 5/16-103)
2		Sec. 16-103. Service obligations of electric utilities.
3		(a) An electric utility shall continue offering to retail
4		customers each tariffed service that it offered as a distinct
5		and identifiable service on the effective date of this
6		amendatory Act of 1997 until the service is (i) declared
7		competitive pursuant to Section 16-113, or (ii) abandoned
8		pursuant to Section 8-508. Nothing in this subsection shall be
9		construed as limiting an electric utility’s right to propose,
10		or the Commission’s power to approve, allow or order
11		modifications in the rates, terms and conditions for such
12		services pursuant to Article IX or Section 16-111 of this Act.
13		(b) An electric utility shall also offer, as tariffed
14		services, delivery services in accordance with this Article,
15		the power purchase options described in Section 16-110 and
16		real-time pricing as provided in Section 16-107.
17		(c) Notwithstanding any other provision of this Article,
18		each electric utility shall continue offering to all
19		residential customers and to all small commercial retail
20		customers in its service area, as a tariffed service, bundled
21		electric power and energy delivered to the customer’s premises
22		consistent with the bundled utility service provided by the
23		electric utility on the effective date of this amendatory Act
24		of 1997. Upon declaration of the provision of electric power
25		and energy as competitive, the electric utility shall continue

09500SB1592ham003		-13-		LRB095 11114 BDD 36924 a

1		to offer to such customers, as a tariffed service, bundled
2		service options at rates which reflect recovery of all cost
3		components for providing the service. For those components of
4		the service which have been declared competitive, cost shall be
5		the market based prices. Market based prices as referred to
6		herein shall mean, for electric power and energy, either (i)
7		those prices for electric power and energy determined as
8		provided in Section 16-112, or (ii) the electric utility’s cost
9		of obtaining the electric power and energy at wholesale through
10		a competitive bidding or other arms-length acquisition
11		process.
12		(c-1) Electric utilities that serve at least 1,000,000
13		customers must provide tariffed service to Unit Owners’
14		Associations, as defined by Section 2 of the Condominium
15		Property Act, for condominium properties that are not
16		restricted to nonresidential use at rates that do not exceed
17		the rates offered to residential customers. Within 10 days
18		after the effective date of this amendatory Act of the 95th
19		General Assembly, each electric utility shall provide the
20		tariffed service to Unit Owners’ Associations required by this
21		subsection and shall reinstate any all-electric discount
22		applicable to any Unit Owners’ Association that received such a
23		discount on December 31, 2006.
24		(d) Any residential or small commercial retail customer
25		which elects delivery services is entitled to return to the
26		electric utility’s bundled utility tariffed service offering

09500SB1592ham003		-14-		LRB095 11114 BDD 36924 a

1		provided in accordance with subsection (c) of this Section upon
2		payment of a reasonable administrative fee which shall be set
3		forth in the tariff, provided, however, that the electric
4		utility shall be entitled to impose the condition that such
5		customer may not elect delivery services for up to 24 months
6		thereafter.
7		(e) (Blank). The Commission shall not require an electric
8		utility to offer any tariffed service other than the services
9		required by this Section, and shall not require an electric
10		utility to offer any competitive service.
11		(Source: P.A. 90-561, eff. 12-16-97.)
12		(220 ILCS 5/16-111)
13		Sec. 16-111. Rates and restructuring transactions during
14		mandatory transition period.
15		(a) During the mandatory transition period,
16		notwithstanding any provision of Article IX of this Act, and
17		except as provided in subsections (b) , (d) , (e) , and (f) of
18		this Section, the Commission shall order each electric utility
19		that, on December 31, 2005, served at least 100,000 customers
20		in this State to file and implement tariffs: (A) to reinstate,
21		within 10 days after the effective date of this amendatory Act
22		of the 95th General Assembly, all rates charged to the electric
23		utility’s customers on December 31, 2006, except that the
24		utility may charge any rate under any delivery services tariff
25		of the utility that became effective on or after January 2,

09500SB1592ham003		-15-		LRB095 11114 BDD 36924 a

1		2007; and (B) to refund to the utility’s customers any amounts
2		charged to those customers, from January 2, 2007 until 10 days
3		after the effective date of this amendatory Act of the 95th
4		General Assembly, that exceed the rates charged to the electric
5		utility’s customers on December 31, 2006, not including any
6		rate charged under any delivery services tariff of the utility
7		that became effective on or after January 2, 2007. This refund:
8		(1) must be issued no later than December 1, 2007;
9		(2) must be made by a negotiable check of the utility
10		to be paid to the order of the customer;
11		(3) must include interest on the full amount of the
12		refund, beginning January 2, 2007, at the same interest
13		rate the Commission requires utilities to pay on customer
14		deposits; and
15		(4) must be accompanied by a notice that states, in at
16		least 14-point bold type, “THIS REFUND IS MADE IN
17		ACCORDANCE WITH A MANDATE OF THE GENERAL ASSEMBLY OF THE
18		STATE OF ILLINOIS.” No other communication may be contained
19		in the envelope with the refund check and no other
20		communication concerning the refund may be contained on the
21		notice, check, or envelope.
22		After electric rates are reinstated in accordance with this
23		subsection (a), the Commission shall not, prior to July 1,
24		2008, (i) initiate, authorize or order any change by way of
25		increase to those components of the reinstated rates that
26		reflect the cost of electric energy (other than in connection

09500SB1592ham003		-16-		LRB095 11114 BDD 36924 a

1		with a request for rate increase which was filed after
2		September 1, 1997 but prior to October 15, 1997, by an electric
3		utility serving less than 12,500 customers in this State) or
4		(ii), (ii) initiate or, unless requested by the electric
5		utility, authorize or order any change by way of decrease,
6		restructuring or unbundling (except as provided in Section
7		16-109A), in the rates of any electric utility that were in
8		effect on October 1, 1996, or (iii) in any order approving any
9		application for a merger pursuant to Section 7-204 that was
10		pending as of May 16, 1997, impose any condition requiring any
11		filing for an increase, decrease, or change in, or other review
12		of, an electric utility’s rates or enforce any such condition
13		of any such order. However,; provided, however, that this
14		subsection shall not prohibit the Commission from:
15		(1) (blank); approving the application of an electric
16		utility to implement an alternative to rate of return
17		regulation or a regulatory mechanism that rewards or
18		penalizes the electric utility through adjustment of rates
19		based on utility performance, pursuant to Section 9 244;
20		(2) authorizing an electric utility to eliminate its
21		fuel adjustment clause and adjust its base rate tariffs in
22		accordance with subsection (b), (d), or (f) of Section
23		9-220 of this Act, to fix its fuel adjustment factor in
24		accordance with subsection (c) of Section 9-220 of this
25		Act, or to eliminate its fuel adjustment clause in
26		accordance with subsection (e) of Section 9-220 of this

09500SB1592ham003		-17-		LRB095 11114 BDD 36924 a

1		Act;
2		(3) ordering into effect tariffs for delivery services
3		and transition charges in accordance with Sections 16-104
4		and 16-108, for real-time pricing in accordance with
5		Section 16-107, or the options required by Section 16-110
6		and subsection (n) of 16-112, allowing a billing experiment
7		in accordance with Section 16-106, or modifying delivery
8		services tariffs in accordance with Section 16-109; or
9		(4) ordering or allowing into effect any tariff to
10		recover charges pursuant to Sections 9-201.5, 9-220.1,
11		9-221, 9-222 (except as provided in Section 9-222.1),
12		16-108, and 16-114 of this Act, Section 5-5 of the
13		Electricity Infrastructure Maintenance Fee Law, Section
14		6-5 of the Renewable Energy, Energy Efficiency, and Coal
15		Resources Development Law of 1997, and Section 13 of the
16		Energy Assistance Act.
17		After December 31, 2004, the provisions of this subsection
18		(a) shall not apply to an electric utility whose average
19		residential retail rate was less than or equal to 90% of the
20		average residential retail rate for the “Midwest Utilities”, as
21		that term is defined in subsection (b) of this Section, based
22		on data reported on Form 1 to the Federal Energy Regulatory
23		Commission for calendar year 1995, and which served between
24		150,000 and 250,000 retail customers in this State on January
25		1, 1995 unless the electric utility or its holding company has
26		been acquired by or merged with an affiliate of another

09500SB1592ham003		-18-		LRB095 11114 BDD 36924 a

1		electric utility subsequent to January 1, 2002. This exemption
2		shall be limited to this subsection (a) and shall not extend to
3		any other provisions of this Act.
4		(a-5) During the remainder of the mandatory transition
5		period, if any, the Commission may modify rates only in
6		accordance with Article IX of this Act.
7		(b) Notwithstanding the provisions of subsection (a), each
8		Illinois electric utility serving more than 12,500 customers in
9		Illinois shall file tariffs (i) reducing, effective August 1,
10		1998, each component of its base rates to residential retail
11		customers by 15% from the base rates in effect immediately
12		prior to January 1, 1998 and (ii) if the public utility
13		provides electric service to (A) more than 500,000 customers
14		but less than 1,000,000 customers in this State on January 1,
15		1999, reducing, effective May 1, 2002, each component of its
16		base rates to residential retail customers by an additional 5%
17		from the base rates in effect immediately prior to January 1,
18		1998, or (B) at least 1,000,000 customers in this State on
19		January 1, 1999, reducing, effective October 1, 2001, each
20		component of its base rates to residential retail customers by
21		an additional 5% from the base rates in effect immediately
22		prior to January 1, 1998. Provided, however, that (A) if an
23		electric utility’s average residential retail rate is less than
24		or equal to the average residential retail rate for a group of
25		Midwest Utilities (consisting of all investor-owned electric
26		utilities with annual system peaks in excess of 1000 megawatts

09500SB1592ham003		-19-		LRB095 11114 BDD 36924 a

1		in the States of Illinois, Indiana, Iowa, Kentucky, Michigan,
2		Missouri, Ohio, and Wisconsin), based on data reported on Form
3		1 to the Federal Energy Regulatory Commission for calendar year
4		1995, then it shall only be required to file tariffs (i)
5		reducing, effective August 1, 1998, each component of its base
6		rates to residential retail customers by 5% from the base rates
7		in effect immediately prior to January 1, 1998, (ii) reducing,
8		effective October 1, 2000, each component of its base rates to
9		residential retail customers by the lesser of 5% of the base
10		rates in effect immediately prior to January 1, 1998 or the
11		percentage by which the electric utility’s average residential
12		retail rate exceeds the average residential retail rate of the
13		Midwest Utilities, based on data reported on Form 1 to the
14		Federal Energy Regulatory Commission for calendar year 1999,
15		and (iii) reducing, effective October 1, 2002, each component
16		of its base rates to residential retail customers by an
17		additional amount equal to the lesser of 5% of the base rates
18		in effect immediately prior to January 1, 1998 or the
19		percentage by which the electric utility’s average residential
20		retail rate exceeds the average residential retail rate of the
21		Midwest Utilities, based on data reported on Form 1 to the
22		Federal Energy Regulatory Commission for calendar year 2001;
23		and (B) if the average residential retail rate of an electric
24		utility serving between 150,000 and 250,000 retail customers in
25		this State on January 1, 1995 is less than or equal to 90% of
26		the average residential retail rate for the Midwest Utilities,

09500SB1592ham003		-20-		LRB095 11114 BDD 36924 a

1		based on data reported on Form 1 to the Federal Energy
2		Regulatory Commission for calendar year 1995, then it shall
3		only be required to file tariffs (i) reducing, effective August
4		1, 1998, each component of its base rates to residential retail
5		customers by 2% from the base rates in effect immediately prior
6		to January 1, 1998; (ii) reducing, effective October 1, 2000,
7		each component of its base rates to residential retail
8		customers by 2% from the base rate in effect immediately prior
9		to January 1, 1998; and (iii) reducing, effective October 1,
10		2002, each component of its base rates to residential retail
11		customers by 1% from the base rates in effect immediately prior
12		to January 1, 1998. Provided, further, that any electric
13		utility for which a decrease in base rates has been or is
14		placed into effect between October 1, 1996 and the dates
15		specified in the preceding sentences of this subsection, other
16		than pursuant to the requirements of this subsection, shall be
17		entitled to reduce the amount of any reduction or reductions in
18		its base rates required by this subsection by the amount of
19		such other decrease. The tariffs required under this subsection
20		shall be filed 45 days in advance of the effective date.
21		Notwithstanding anything to the contrary in Section 9-220 of
22		this Act, no restatement of base rates in conjunction with the
23		elimination of a fuel adjustment clause under that Section
24		shall result in a lesser decrease in base rates than customers
25		would otherwise receive under this subsection had the electric
26		utility’s fuel adjustment clause not been eliminated.

09500SB1592ham003		-21-		LRB095 11114 BDD 36924 a

1		(c) Any utility reducing its base rates by 15% on August 1,
2		1998 pursuant to subsection (b) shall include the following
3		statement on its bills for residential customers from August 1
4		through December 31, 1998: “Effective August 1, 1998, your
5		rates have been reduced by 15% by the Electric Service Customer
6		Choice and Rate Relief Law of 1997 passed by the Illinois
7		General Assembly.”. Any utility reducing its base rates by 5%
8		on August 1, 1998, pursuant to subsection (b) shall include the
9		following statement on its bills for residential customers from
10		August 1 through December 31, 1998: “Effective August 1, 1998,
11		your rates have been reduced by 5% by the Electric Service
12		Customer Choice and Rate Relief Law of 1997 passed by the
13		Illinois General Assembly.”.
14		Any utility reducing its base rates by 2% on August 1, 1998
15		pursuant to subsection (b) shall include the following
16		statement on its bills for residential customers from August 1
17		through December 31, 1998: “Effective August 1, 1998, your
18		rates have been reduced by 2% by the Electric Service Customer
19		Choice and Rate Relief Law of 1997 passed by the Illinois
20		General Assembly.”.
21		(d) (Blank). During the mandatory transition period, but
22		not before January 1, 2000, and notwithstanding the provisions
23		of subsection (a), an electric utility may request an increase
24		in its base rates if the electric utility demonstrates that the
25		2 year average of its earned rate of return on common equity,
26		calculated as its net income applicable to common stock divided

09500SB1592ham003		-22-		LRB095 11114 BDD 36924 a

1		by the average of its beginning and ending balances of common
2		equity using data reported in the electric utility’s Form 1
3		report to the Federal Energy Regulatory Commission but adjusted
4		to remove the effects of accelerated depreciation or
5		amortization or other transition or mitigation measures
6		implemented by the electric utility pursuant to subsection (g)
7		of this Section and the effect of any refund paid pursuant to
8		subsection (e) of this Section, is below the 2 year average for
9		the same 2 years of the monthly average yields of 30 year U.S.
10		Treasury bonds published by the Board of Governors of the
11		Federal Reserve System in its weekly H.15 Statistical Release
12		or successor publication. The Commission shall review the
13		electric utility’s request, and may review the justness and
14		reasonableness of all rates for tariffed services, in
15		accordance with the provisions of Article IX of this Act,
16		provided that the Commission shall consider any special or
17		negotiated adjustments to the revenue requirement agreed to
18		between the electric utility and the other parties to the
19		proceeding. In setting rates under this Section, the Commission
20		shall exclude the costs and revenues that are associated with
21		competitive services and any billing or pricing experiments
22		conducted under Section 16 106.
23		(e) (Blank). For the purposes of this subsection (e) all
24		calculations and comparisons shall be performed for the
25		Illinois operations of multijurisdictional utilities. During
26		the mandatory transition period, notwithstanding the

09500SB1592ham003		-23-		LRB095 11114 BDD 36924 a

1		provisions of subsection (a), if the 2 year average of an
2		electric utility’s earned rate of return on common equity,
3		calculated as its net income applicable to common stock divided
4		by the average of its beginning and ending balances of common
5		equity using data reported in the electric utility’s Form 1
6		report to the Federal Energy Regulatory Commission but adjusted
7		to remove the effect of any refund paid under this subsection
8		(e), and further adjusted to include the annual amortization of
9		any difference between the consideration received by an
10		affiliated interest of the electric utility in the sale of an
11		asset which had been sold or transferred by the electric
12		utility to the affiliated interest subsequent to the effective
13		date of this amendatory Act of 1997 and the consideration for
14		which such asset had been sold or transferred to the affiliated
15		interest, with such difference to be amortized ratably from the
16		date of the sale by the affiliated interest to December 31,
17		2006, exceeds the 2 year average of the Index for the same 2
18		years by 1.5 or more percentage points, the electric utility
19		shall make refunds to customers beginning the first billing day
20		of April in the following year in the manner described in
21		paragraph (3) of this subsection. For purposes of this
22		subsection (c), the “Index” shall be the sum of (A) the average
23		for the 12 months ended September 30 of the monthly average
24		yields of 30 year U.S. Treasury bonds published by the Board of
25		Governors of the Federal Reserve System in its weekly H.15
26		Statistical Release or successor publication for each year 1998

09500SB1592ham003		-24-		LRB095 11114 BDD 36924 a

1		through 2006, and (B) (i) 4.00 percentage points for each of
2		the 12 month periods ending September 30, 1998 through
3		September 30, 1999 or 8.00 percentage points if the electric
4		utility’s average residential retail rate is less than or equal
5		to 90% of the average residential retail rate for the “Midwest
6		Utilities”, as that term is defined in subsection (b) of this
7		Section, based on data reported on Form 1 to the Federal Energy
8		Regulatory Commission for calendar year 1995, and the electric
9		utility served between 150,000 and 250,000 retail customers on
10		January 1, 1995, (ii) 7.00 percentage points for each of the
11		12 month periods ending September 30, 2000 through September
12		30, 2006 if the electric utility was providing service to at
13		least 1,000,000 customers in this State on January 1, 1999, or
14		9.00 percentage points if the electric utility’s average
15		residential retail rate is less than or equal to 90% of the
16		average residential retail rate for the “Midwest Utilities”, as
17		that term is defined in subsection (b) of this Section, based
18		on data reported on Form 1 to the Federal Energy Regulatory
19		Commission for calendar year 1995 and the electric utility
20		served between 150,000 and 250,000 retail customers in this
21		State on January 1, 1995, (iii) 11.00 percentage points for
22		each of the 12 month periods ending September 30, 2000 through
23		September 30, 2006, but only if the electric utility’s average
24		residential retail rate is less than or equal to 90% of the
25		average residential retail rate for the “Midwest Utilities”, as
26		that term is defined in subsection (b) of this Section, based

09500SB1592ham003		-25-		LRB095 11114 BDD 36924 a

1		on data reported on Form 1 to the Federal Energy Regulatory
2		Commission for calendar year 1995, the electric utility served
3		between 150,000 and 250,000 retail customers in this State on
4		January 1, 1995, and the electric utility offers delivery
5		services on or before June 1, 2000 to retail customers whose
6		annual electric energy use comprises 33% of the kilowatt hour
7		sales to that group of retail customers that are classified
8		under Division D, Groups 20 through 39 of the Standard
9		Industrial Classifications set forth in the Standard
10		Industrial Classification Manual published by the United
11		States Office of Management and Budget, excluding the kilowatt
12		hour sales to those customers that are eligible for delivery
13		services pursuant to Section 16-104(a)(1)(i), and offers
14		delivery services to its remaining retail customers classified
15		under Division D, Groups 20 through 39 on or before October 1,
16		2000, and, provided further, that the electric utility commits
17		not to petition pursuant to Section 16-108(f) for entry of an
18		order by the Commission authorizing the electric utility to
19		implement transition charges for an additional period after
20		December 31, 2006, or (iv) 5.00 percentage points for each of
21		the 12 month periods ending September 30, 2000 through
22		September 30, 2006 for all other electric utilities or 7.00
23		percentage points for such utilities for each of the 12 month
24		periods ending September 30, 2000 through September 30, 2006
25		for any such utility that commits not to petition pursuant to
26		Section 16-108(f) for entry of an order by the Commission

09500SB1592ham003		-26-		LRB095 11114 BDD 36924 a

1		authorizing the electric utility to implement transition
2		charges for an additional period after December 31, 2006 or
3		11.00 percentage points for each of the 12 month periods ending
4		September 30, 2005 and September 30, 2006 for each electric
5		utility providing service to fewer than 6,500, or between
6		75,000 and 150,000, electric retail customers in this State on
7		January 1, 1995 if such utility commits not to petition
8		pursuant to Section 16-108(f) for entry of an order by the
9		Commission authorizing the electric utility to implement
10		transition charges for an additional period after December 31,
11		2006.
12		(1) For purposes of this subsection (e), “excess
13		earnings” means the difference between (A) the 2 year
14		average of the electric utility’s earned rate of return on
15		common equity, less (B) the 2 year average of the sum of
16		(i) the Index applicable to each of the 2 years and (ii)
17		1.5 percentage points; provided, that “excess earnings”
18		shall never be less than zero.
19		(2) On or before March 31 of each year 2000 through
20		2007 each electric utility shall file a report with the
21		Commission showing its earned rate of return on common
22		equity, calculated in accordance with this subsection, for
23		the preceding calendar year and the average for the
24		preceding 2 calendar years.
25		(3) If an electric utility has excess earnings,
26		determined in accordance with paragraphs (1) and (2) of

09500SB1592ham003		-27-		LRB095 11114 BDD 36924 a

1		this subsection, the refunds which the electric utility
2		shall pay to its customers beginning the first billing day
3		of April in the following year shall be calculated and
4		applied as follows:
5		(i) The electric utility’s excess earnings shall
6		be multiplied by the average of the beginning and
7		ending balances of the electric utility’s common
8		equity for the 2 year period in which excess earnings
9		occurred.
10		(ii) The result of the calculation in (i) shall be
11		multiplied by 0.50 and then divided by a number equal
12		to 1 minus the electric utility’s composite federal and
13		State income tax rate.
14		(iii) The result of the calculation in (ii) shall
15		be divided by the sum of the electric utility’s
16		projected total kilowatt hour sales to retail
17		customers plus projected kilowatt hours to be
18		delivered to delivery services customers over a one
19		year period beginning with the first billing date in
20		April in the succeeding year to determine a cents per
21		kilowatt hour refund factor.
22		(iv) The cents per kilowatt hour refund factor
23		calculated in (iii) shall be credited to the electric
24		utility’s customers by applying the factor on the
25		customer’s monthly bills to each kilowatt hour sold or
26		delivered until the total amount calculated in (ii) has

09500SB1592ham003		-28-		LRB095 11114 BDD 36924 a

1		been paid to customers.
2		(f) During the mandatory transition period, an electric
3		utility may file revised tariffs reducing the price of any
4		tariffed service offered by the electric utility for all
5		customers taking that tariffed service, which shall be
6		effective 7 days after filing.
7		(g) During the mandatory transition period, an electric
8		utility may, without obtaining any approval of the Commission
9		other than that provided for in this subsection and
10		notwithstanding any other provision of this Act or any rule or
11		regulation of the Commission that would require such approval:
12		(1) implement a reorganization, other than a merger of
13		2 or more public utilities as defined in Section 3-105 or
14		their holding companies;
15		(2) retire generating plants from service;
16		(3) sell, assign, lease or otherwise transfer assets to
17		an affiliated or unaffiliated entity and as part of such
18		transaction enter into service agreements, power purchase
19		agreements, or other agreements with the transferee;
20		provided, however, that the prices, terms and conditions of
21		any power purchase agreement must be approved or allowed
22		into effect by the Federal Energy Regulatory Commission; or
23		(4) use any accelerated cost recovery method including
24		accelerated depreciation, accelerated amortization or
25		other capital recovery methods, or record reductions to the
26		original cost of its assets.

09500SB1592ham003		-29-		LRB095 11114 BDD 36924 a

1		In order to implement a reorganization, retire generating
2		plants from service, or sell, assign, lease or otherwise
3		transfer assets pursuant to this Section, the electric utility
4		shall comply with subsections (c) and (d) of Section 16-128, if
5		applicable, and subsection (k) of this Section, if applicable,
6		and provide the Commission with at least 30 days notice of the
7		proposed reorganization or transaction, which notice shall
8		include the following information:
9		(i) a complete statement of the entries that the
10		electric utility will make on its books and records of
11		account to implement the proposed reorganization or
12		transaction together with a certification from an
13		independent certified public accountant that such
14		entries are in accord with generally accepted
15		accounting principles and, if the Commission has
16		previously approved guidelines for cost allocations
17		between the utility and its affiliates, a
18		certification from the chief accounting officer of the
19		utility that such entries are in accord with those cost
20		allocation guidelines;
21		(ii) a description of how the electric utility will
22		use proceeds of any sale, assignment, lease or transfer
23		to retire debt or otherwise reduce or recover the costs
24		of services provided by such electric utility;
25		(iii) a list of all federal approvals or approvals
26		required from departments and agencies of this State,

09500SBl592ham003		-30-		LRB095 11114 BDD 36924 a

1		other than the Commission, that the electric utility
2		has or will obtain before implementing the
3		reorganization or transaction;
4		(iv) an irrevocable commitment by the electric
5		utility that it will not, as a result of the
6		transaction, impose any stranded cost charges that it
7		might otherwise be allowed to charge retail customers
8		under federal law or increase the transition charges
9		that it is otherwise entitled to collect under this
10		Article XVI; and
11		(v) if the electric utility proposes to sell,
12		assign, lease or otherwise transfer a generating plant
13		that brings the amount of net dependable generating
14		capacity transferred pursuant to this subsection to an
15		amount equal to or greater than 15% of the electric
16		utility’s net dependable capacity as of the effective
17		date of this amendatory Act of 1997, and enters into a
18		power purchase agreement with the entity to which such
19		generating plant is sold, assigned, leased, or
20		otherwise transferred, the electric utility also
21		agrees, if its fuel adjustment clause has not already
22		been eliminated, to eliminate its fuel adjustment
23		clause in accordance with subsection (b) of Section
24		9-220 for a period of time equal to the length of any
25		such power purchase agreement or successor agreement,
26		or until January 1, 2005, whichever is longer; if the

09500SB1592ham003		-31-		LRB095 11114 BDD 36924 a

1		capacity of the generating plant so transferred and
2		related power purchase agreement does not result in the
3		elimination of the fuel adjustment clause under this
4		subsection, and the fuel adjustment clause has not
5		already been eliminated, the electric utility shall
6		agree that the costs associated with the transferred
7		plant that are included in the calculation of the rate
8		per kilowatt-hour to be applied pursuant to the
9		electric utility’s fuel adjustment clause during such
10		period shall not exceed the per kilowatt-hour cost
11		associated with such generating plant included in the
12		electric utility’s fuel adjustment clause during the
13		full calendar year preceding the transfer, with such
14		limit to be adjusted each year thereafter by the Gross
15		Domestic Product Implicit Price Deflator.
16		(vi) In addition, if the electric utility proposes
17		to sell, assign, or lease, (A) either (1) an amount of
18		generating plant that brings the amount of net
19		dependable generating capacity transferred pursuant to
20		this subsection to an amount equal to or greater than
21		15% of its net dependable capacity on the effective
22		date of this amendatory Act of 1997, or (2) one or more
23		generating plants with a total net dependable capacity
24		of 1100 megawatts, or (B) transmission and
25		distribution facilities that either (1) bring the
26		amount of transmission and distribution facilities

09500SB1592ham003		-32-		LRB095 11114 BDD 36924 a

1		transferred pursuant to this subsection to an amount
2		equal to or greater than 15% of the electric utility’s
3		total depreciated original cost investment in such
4		facilities, or (2) represent an investment of
5		$25,000,000 in terms of total depreciated original
6		cost, the electric utility shall provide, in addition
7		to the information listed in subparagraphs (i) through
8		(v) , the following information: (A) a description of
9		how the electric utility will meet its service
10		obligations under this Act in a safe and reliable
11		manner and (B) the electric utility’s projected earned
12		rate of return on common equity, calculated in
13		accordance with subsection (d) of this Section, for
14		each year from the date of the notice through December
15		31, 2006 both with and without the proposed
16		transaction. If the Commission has not issued an order
17		initiating a hearing on the proposed transaction
18		within 30 days after the date the electric utility’s
19		notice is filed, the transaction shall be deemed
20		approved. The Commission may, after notice and
21		hearing, prohibit the proposed transaction if it makes
22		either or both of the following findings: (1) that the
23		proposed transaction will render the electric utility
24		unable to provide its tariffed services in a safe and
25		reliable manner, or (2) that there is a strong
26		likelihood that consummation of the proposed

09500SB1592ham003		-33-		LRB095 11114 BDD 36924 a

1		transaction will result in the electric utility being
2		entitled to request an increase in its base rates
3		during the mandatory transition period pursuant to
4		subsection (d) of this Section. Any hearing initiated
5		by the Commission into the proposed transaction shall
6		be completed, and the Commission’s final order
7		approving or prohibiting the proposed transaction
8		shall be entered, within 90 days after the date the
9		electric utility’s notice was filed. Provided,
10		however, that a sale, assignment, or lease of
11		transmission facilities to an independent system
12		operator that meets the requirements of Section 16-126
13		shall not be subject to Commission approval under this
14		Section.
15		In any proceeding conducted by the Commission
16		pursuant to this subparagraph (vi), intervention shall
17		be limited to parties with a direct interest in the
18		transaction which is the subject of the hearing and any
19		statutory consumer protection agency as defined in
20		subsection (d) of Section 9-102.1. Notwithstanding the
21		provisions of Section 10-113 of this Act, any
22		application seeking rehearing of an order issued under
23		this subparagraph (vi), whether filed by the electric
24		utility or by an intervening party, shall be filed
25		within 10 days after service of the order.
26		The Commission shall not in any subsequent proceeding or

09500SB1592ham003		-34-		LRB095 11114 BDD 36924 a

1		otherwise, review such a reorganization or other transaction
2		authorized by this Section, but shall retain the authority to
3		allocate costs as stated in Section 16-111 (i). An entity to
4		which an electric utility sells, assigns, leases or transfers
5		assets pursuant to this subsection (g) shall not, as a result
6		of the transactions specified in this subsection (g) , be deemed
7		a public utility as defined in Section 3-105. Nothing in this
8		subsection (g) shall change any requirement under the
9		jurisdiction of the Illinois Department of Nuclear Safety
10		including, but not limited to, the payment of fees. Nothing in
11		this subsection (g) shall exempt a utility from obtaining a
12		certificate pursuant to Section 8-406 of this Act for the
13		construction of a new electric generating facility. Nothing in
14		this subsection (g) is intended to exempt the transactions
15		hereunder from the operation of the federal or State antitrust
16		laws. Nothing in this subsection (g) shall require an electric
17		utility to use the procedures specified in this subsection for
18		any of the transactions specified herein. Any other procedure
19		available under this Act may, at the electric utility’s
20		election, be used for any such transaction.
21		(h) During the mandatory transition period, the Commission
22		shall not establish or use any rates of depreciation, which for
23		purposes of this subsection shall include amortization, for any
24		electric utility other than those established pursuant to
25		subsection (c) of Section 5-104 of this Act or utilized
26		pursuant to subsection (g) of this Section. Provided, however,

09500SB1592ham003		-35-		LRB095 11114 BDD 36924 a

1		that in any proceeding to review an electric utility’s rates
2		for tariffed services pursuant to Section 9-201, 9-202, 9-250
3		or 16-111 (d) of this Act, the Commission may establish new
4		rates of depreciation for the electric utility in the same
5		manner provided in subsection (d) of Section 5-104 of this Act.
6		An electric utility implementing an accelerated cost recovery
7		method including accelerated depreciation, accelerated
8		amortization or other capital recovery methods, or recording
9		reductions to the original cost of its assets, pursuant to
10		subsection (g) of this Section, shall file a statement with the
11		Commission describing the accelerated cost recovery method to
12		be implemented or the reduction in the original cost of its
13		assets to be recorded. Upon the filing of such statement, the
14		accelerated cost recovery method or the reduction in the
15		original cost of assets shall be deemed to be approved by the
16		Commission as though an order had been entered by the
17		Commission.
18		(i) Subsequent to the mandatory transition period, the
19		Commission, in any proceeding to establish rates and charges
20		for tariffed services offered by an electric utility, may shall
21		consider, among other factors, only (1) the then current or
22		projected revenues, costs, investments and cost of capital
23		directly or indirectly associated with the provision of such
24		tariffed services; (2) collection of transition charges in
25		accordance with Sections 16-102 and 16-108 of this Act; (3)
26		recovery of any employee transition costs as described in

09500SB1592ham003		-36-		LRB095 11114 BDD 36924 a

1		Section 16-128 which the electric utility is continuing to
2		incur, including recovery of any unamortized portion of such
3		costs previously incurred or committed, with such costs to be
4		equitably allocated among bundled services, delivery services,
5		and contracts with alternative retail electric suppliers; and
6		(4) recovery of the costs associated with the electric
7		utility’s compliance with decommissioning funding
8		requirements; and shall not consider any other revenues, costs,
9		investments or cost of capital of either the electric utility
10		or of any affiliate of the electric utility that are not
11		associated with the provision of tariffed services. In setting
12		rates for tariffed services, the Commission shall equitably
13		allocate joint and common costs and investments between the
14		electric utility’s competitive and tariffed services. In
15		determining the justness and reasonableness of the electric
16		power and energy component of an electric utility’s rates for
17		tariffed services subsequent to the mandatory transition
18		period and prior to the time that the provision of such
19		electric power and energy is declared competitive, the
20		Commission shall consider the extent to which the electric
21		utility’s tariffed rates for such component for each customer
22		class exceed the market value determined pursuant to Section
23		16-112, and, if the electric power and energy component of such
24		tariffed rate exceeds the market value by more than 10% for any
25		customer class, may establish such electric power and energy
26		component at a rate equal to the market value plus 10%. In any

09500SB1592ham003		-37-		LRB095 11114 BDD 36924 a

1		such case, the Commission may also elect to extend the
2		provisions of Section 16-111(e) for any period in which the
3		electric utility is collecting transition charges, using
4		information applicable to such period.
5		(j) During the mandatory transition period, an electric
6		utility may elect to transfer to a non-operating income account
7		under the Commission’s Uniform System of Accounts either or
8		both of (i) an amount of unamortized investment tax credit that
9		is in addition to the ratable amount which is credited to the
10		electric utility’s operating income account for the year in
11		accordance with Section 46(f)(2) of the federal Internal
12		Revenue Code of 1986, as in effect prior to P.L. 101-508, or
13		(ii) “excess tax reserves”, as that term is defined in Section
14		203(e)(2)(A) of the federal Tax Reform Act of 1986, provided
15		that (A) the amount transferred may not exceed the amount of
16		the electric utility’s assets that were created pursuant to
17		Statement of Financial Accounting Standards No. 71 which the
18		electric utility has written off during the mandatory
19		transition period, and (B) the transfer shall not be effective
20		until approved by the Internal Revenue Service. An electric
21		utility electing to make such a transfer shall file a statement
22		with the Commission stating the amount and timing of the
23		transfer for which it intends to request approval of the
24		Internal Revenue Service, along with a copy of its proposed
25		request to the Internal Revenue Service for a ruling. The
26		Commission shall issue an order within 14 days after the

09500SB1592ham003		-38-		LRB095 11114 BDD 36924 a

1		electric utility’s filing approving, subject to receipt of
2		approval from the Internal Revenue Service, the proposed
3		transfer.
4		(k) If an electric utility is selling or transferring to a
5		single buyer 5 or more generating plants located in this State
6		with a total net dependable capacity of 5000 megawatts or more
7		pursuant to subsection (g) of this Section and has obtained a
8		sale price or consideration that exceeds 200% of the book value
9		of such plants, the electric utility must provide to the
10		Governor, the President of the Illinois Senate, the Minority
11		Leader of the Illinois Senate, the Speaker of the Illinois
12		House of Representatives, and the Minority Leader of the
13		Illinois House of Representatives no later than 15 days after
14		filing its notice under subsection (g) of this Section or 5
15		days after the date on which this subsection (k) becomes law,
16		whichever is later, a written commitment in which such electric
17		utility agrees to expend $2 billion outside the corporate
18		limits of any municipality with 1,000,000 or more inhabitants
19		within such electric utility’s service area, over a 6-year
20		period beginning with the calendar year in which the notice is
21		filed, on projects, programs, and improvements within its
22		service area relating to transmission and distribution
23		including, without limitation, infrastructure expansion,
24		repair and replacement, capital investments, operations and
25		maintenance, and vegetation management.
26		(l) The provisions of this amendatory Act of the 95th

09500SB1592ham003		-39-		LRB095 11114 BDD 36924 a

1		General Assembly relating to (i) the reinstatement of rates and
2		(ii) refunds to customers are separate issues and severable. If
3		either of those provisions or its application to any person or
4		circumstance is held invalid, then the invalidity of that
5		provision or application does not affect the other provision or
6		its application. This subsection (1) does not in any way limit
7		the general severability clause of Section 99-97 of this
8		amendatory Act of the 95th General Assembly.
9		(Source: P.A. 91-50, eff. 6-30-99; 92-537, eff. 6-6-02; 92-690,
10		eff. 7-18-02; revised 9-10-02.)
11		(220 ILCS 5/16-113)
12		Sec. 16-113. Declaration of service as a competitive
13		service.
14		(a) An electric utility may, by petition, request the
15		Commission to declare a tariffed service provided by the
16		electric utility to be a competitive service. The electric
17		utility shall give notice of its petition to the public in the
18		same manner that public notice is provided for proposed general
19		increases in rates for tariffed services, in accordance with
20		rules and regulations prescribed by the Commission. The
21		Commission shall hold a hearing and on the petition if a
22		hearing is deemed necessary by the Commission. The Commission
23		shall declare the class of tariffed service to be a competitive
24		service for some identifiable customer segment or group of
25		customers, or some clearly defined geographical area within the

09500SB1592ham003		-40-		LRB095 11114 BDD 36924 a

1		electric utility’s service area, only after the electric
2		utility demonstrates that at least 33% of the customers in the
3		electric utility’s service area that are eligible to take the
4		class of tariffed service instead take service from alternative
5		retail electric suppliers, as defined in Section 16-102, and
6		that at least 3 alternative retail electric suppliers provide
7		service that is comparable to the class of tariffed service to
8		those customers in the utility’s service area that do not take
9		service from the electric utility; if the service or a
10		reasonably equivalent substitute service is reasonably
11		available to the customer segment or group or in the defined
12		geographical area at a comparable price from one or more
13		providers other than the electric utility or an affiliate of
14		the electric utility, and the electric utility has lost or
15		there is a reasonable likelihood that the electric utility will
16		lose business for the service to the other provider or
17		providers; provided, that the Commission may not declare the
18		provision of electric power and energy to be competitive
19		pursuant to this subsection with respect to (i) any retail
20		customer or group of retail customers that is not eligible
21		pursuant to Section 16-104 to take delivery services provided
22		by the electric utility and (ii) any residential and small
23		commercial retail customers prior to the last date on which
24		such customers are required to pay transition charges. In
25		determining whether to grant or deny a petition to declare the
26		provision of electric power and energy competitive, the

09500SB1592ham003		-41-		LRB095 11114 BDD 36924 a

1		Commission shall consider, in applying the above criteria,
2		whether there is adequate transmission capacity into the
3		service area of the petitioning electric utility to make
4		electric power and energy reasonably available to the customer
5		segment or group or in the defined geographical area from one
6		or more providers other than the electric utility or an
7		affiliate of the electric utility, in accordance with this
8		subsection. The Commission shall make its determination and
9		issue its final order declaring or refusing to declare the
10		service to be a competitive service within 180 120 days
11		following the date that the petition is filed, or otherwise the
12		petition shall be deemed to be granted; provided, that if the
13		petition is deemed to be granted by operation of law, the
14		Commission shall not thereby be precluded from finding and
15		ordering, in a subsequent proceeding initiated by the
16		Commission, and after notice and hearing, that the service is
17		not competitive based on the criteria set forth in this
18		subsection.
19		(b) Any customer except a customer identified in subsection
20		(c) of Section 16-103 who is taking a tariffed service that is
21		declared to be a competitive service pursuant to subsection (a)
22		of this Section shall be entitled to continue to take the
23		service from the electric utility on a tariffed basis for a
24		period of 3 years following the date that the service is
25		declared competitive, or such other period as is stated in the
26		electric utility’s tariff pursuant to Section 16-110. This

09500SB1592ham003		-42-		LRB095 11114 BDD 36924 a

1		subsection shall not require the electric utility to offer or
2		provide on a tariffed basis any service to any customer (except
3		those customers identified in subsection (c) of Section 16-103)
4		that was not taking such service on a tariffed basis on the
5		date the service was declared to be competitive.
6		(c) If the Commission denies a petition to declare a
7		service to be a competitive service, or determines in a
8		separate proceeding that a service is not competitive based on
9		the criteria set forth in subsection (a), the electric utility
10		may file a new petition no earlier than 6 months following the
11		date of the Commission’s order, requesting, on the basis of
12		additional or different facts and circumstances, that the
13		service be declared to be a competitive service.
14		(d) The Commission shall not deny a petition to declare a
15		service to be a competitive service, and shall not find that a
16		service is not a competitive service, on the grounds that it
17		has previously denied the petition of another electric utility
18		to declare the same or a similar service to be a competitive
19		service or has previously determined that the same or a similar
20		service provided by another electric utility is not a
21		competitive service.
22		(e) An electric utility may declare a service, other than
23		delivery services or the provision of electric power or energy,
24		to be competitive by filing with the Commission at least 14
25		days prior to the date on which the service is to become
26		competitive a notice describing the service that is being

09500SBl592ham003		-43-		LRB095 11114 BDD 36924 a

1		declared competitive and the date on which it will become
2		competitive; provided, that any customer who is taking a
3		tariffed service that is declared to be a competitive service
4		pursuant to this subsection (e) shall be entitled to continue
5		to take the service from the electric utility on a tariffed
6		basis until the electric utility files, and the Commission
7		grants, a petition to declare the service competitive in
8		accordance with subsection (a) of this Section. The Commission
9		shall be authorized to find and order, after notice and hearing
10		in a subsequent proceeding initiated by the Commission, that
11		any service declared to be competitive pursuant to this
12		subsection (e) is not competitive in accordance with the
13		criteria set forth in subsection (a) of this Section.
14		(Source: P.A. 90-561, eff. 12-16-97.)
15		(220 ILCS 5/16-135 new)
16		Sec. 16-135. The Consumers Overbilled and Reimbursed for
17		Electricity Fund.
18		(a) The Consumers Overbilled and Reimbursed for
19		Electricity Fund is created as a special fund in the State
20		treasury. Subject to appropriation, moneys in the Fund shall be
21		distributed and paid or credited as provided in this Section.
22		Income earned on amounts in the Fund shall be deposited into
23		the Fund.
24		(b) In January 2008, or as soon thereafter as practical,
25		the Department of Revenue shall make payments from the Fund to

09500SB1592ham003		-44-		LRB095 11114 BDD 36924 a

1		each utility that has made refunds under item (B) in subsection
2		(a) of Section 16-111 in the amount of those refunds made by
3		the utility together with interest that is reasonably incurred
4		from the date that the refunds were made to the date of payment
5		to the utility under this subsection.
6		(c) Beginning 10 days after the effective date of this
7		amendatory Act of the 95th General Assembly and through the end
8		of the calendar month in which that date occurs constitutes the
9		first rate-reduction month. Thereafter, each calendar month
10		constitutes a rate-reduction month.
11		(d) For each rate-reduction month, the Department of
12		Revenue shall make a payment from the Fund to each utility that
13		is subject to subsection (a) of Section 16-111. Payments shall
14		be made each calendar month beginning February 2008. The
15		payment to each such utility for a rate-reduction month shall
16		be in an amount equal to (i) the number of total kilowatt hours
17		used by the utility’s customers during the billing periods
18		ending in the rate-reduction month, multiplied by (ii) a rate
19		determined by subtracting the rate charged to the utility’s
20		customers on December 31, 2006 from the rate charged to the
21		utility’s customers on January 2, 2007 for each rate-reduction
22		month through the rate-reduction month of December 2008; 90% of
23		that amount for each rate-reduction month in 2009; 80% of that
24		amount for each rate-reduction month in 2010; 70% of that
25		amount for each rate-reduction month in 2011; 60% of that
26		amount for each rate-reduction month in 2012; and 50% of that

09500SB1592ham003		-45-		LRB095 11114 BDD 36924 a

1		amount for each rate-reduction month beginning on or after
2		January 1, 2013. For the purpose of calculating the payment
3		under this subsection, the rate charged to the utility’s
4		customers on January 2, 2007 does not include the portion of
5		the rate charged under any delivery services tariff of the
6		utility that became effective on January 2, 2007.
7		Payments under this subsection (d) shall include interest
8		that is reasonably incurred; interest shall be calculated on
9		the remaining balance beginning 10 days after the end of the
10		rate-reduction month through the date of payment. If there is
11		not a sufficient balance in the Fund to make the payment
12		required under this subsection (d), then the Department of
13		Revenue shall pay each utility a pro-rata share of the balance
14		of the Fund (less any amount necessary to make refunds under
15		Section 5-65 of the Electricity Generator Tax Act) based on the
16		amount of the payment owing to that utility compared to the
17		total of payments owing to all such utilities. Payments shall
18		be made first with respect to the earliest rate-reduction month
19		for which payment has not been made in full.
20		(e) For each rate-reduction month through and including
21		June 2008, if, during the entire rate-reduction month, the
22		utility charged its customers the same rates charged to its
23		customers on December 31, 2006 (plus any rate charged under any
24		of the utility’s delivery services tariffs that became
25		effective on or after January 2, 2007), then the amount paid to
26		the utility for that rate-reduction month shall be retained by