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 30, 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 30, 2007, Exelon Corporation (Exelon) disclosed that Floor Amendment No. 4 to Senate Bill 1592 was posted in the Illinois House of Representatives and was assigned to the House Electric Utility Oversight Committee, which approved the amendment by a vote of 5 to 4. The text of the amended bill is attached as Exhibit 99.1 to this Current Report on Form 8-K.

As previously disclosed, on March 6, 2007, the Illinois House of Representatives approved legislation, known as House Bill 1750, that, if enacted into law, would roll back the current electricity rates of Commonwealth Edison Company (ComEd) and other Illinois utilities to rates that were in effect on December 29, 2006, would provide for a refund, with interest, of the charges collected from residential customers in excess of those rolled-back rates since January 2, 2007, and would generally limit rate increases for the electric energy component of rates for all bundled service customers until 2010. On May 30, 2007 the Illinois Senate Executive Committee voted to approve House Bill 1750 by a vote of 7 yes, 3 no, and three members voting “present”. The full Illinois Senate did not vote on the bill during the regular session. In order for the bill to become effective immediately upon becoming law, it must now pass the Illinois Senate by a supermajority of 60%. Otherwise, it can be amended to change the effective date to 2008 and be approved by a simple majority, but in that case the Illinois House would also need to approve the change to the bill. If the same version of the bill were approved by both chambers by the requisite majority, the bill would then go to the Governor for signature. The Governor has previously expressed support for rate freeze legislation. Exelon, ComEd and Exelon Generation Company, LLC (Generation) (collectively, the Registrants) believe the proposed legislation is unconstitutional, and if enacted, the Registrants would pursue all available legal remedies.

ComEd, Generation and other interested parties have been actively engaged in discussions with Illinois legislative leaders to explore alternatives to rate freeze and other legislation that would provide rate relief for Illinois electric customers, including financial assistance for Illinois electric customers with unusually high electric bills and other customers in need of financial assistance. ComEd and Generation are unable to predict the outcome of the discussions of alternatives to rate freeze and other legislation or the ultimate outcome of the legislative process or the coverage or content of any legislation that may be adopted.

* * * * *

This combined Form 8-K is being furnished separately by each of the 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. 4 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.

June 1, 2007

EXHIBIT INDEX

Exhibit No.		Description
99.1		Floor Amendment No. 4 to Senate Bill 1592

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1		AMENDMENT TO SENATE BILL 1592
2		AMENDMENT NO.___. 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

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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.

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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

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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

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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

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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 90-561this 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

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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

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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:

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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

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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

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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.)

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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

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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

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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) Notwithstanding any other provision of this Section or
8		this Act, on and after the effective date of this amendatory
9		Act of the 95th General Assembly, the Illinois Power Authority
10		has sole authority to implement and execute the process of
11		procuring electricity for electric utilities that on January 2,
12		2007 served over 100,00 customers. The Commission shall not
13		require an electric utility to offer any tariffed service other
14		Than the services required by this Section, and shall not
15		Reqire an electric utility to offer any competitive service.
16		(Source: P. A. 90-561, eff. 12-16-97.)
17				(220 ILCS 5/16-111)
18				Sec. 16-111. Rates and restructuring transactions during
19		mandatory transition period.
20				(a) During the mandatory transition period,
21		notwithstanding any provision of Article IX of this Act, and
22		except as provided in subsections (b) , (d) , (e) , and (f) of
23		this Section, the Commission shall order each electric utility
24		that, on December 31, 2005, served at least 100,000 customers
25		in this State to file and implement tariffs: (A) to reinstate,

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

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1		After electric rates are reinstated in accordance with this
2		subsection (a), the Commission shall not , prior to July 1,
3		2008, (i) initiate, authorize or order any change by way of
4		increase to those components of the reinstated rates that
5		reflect the cost of electric energy (other than in connection
6		with a request for rate increase which was filed after
7		September 1, 1997 but prior to October 15, 1997, by an electric
8		utility serving less than 12,500 customers in this State) or
9		(ii), (ii) initiate or, unless requested by the electric
10		utility, authorize or order any change by way of decrease,
11		restructuring or unbundling (except as provided in Section
12		16-109A), in the rates of any electric utility that were in
13		effect on October 1, 1996, or (iii) in any order approving any
14		application for a merger pursuant to Section 7-204 that was
15		pending as of May 16, 1997, impose any condition requiring any
16		filing for an increase, decrease, or change in, or other review
17		of, an electric utility’s rates or enforce any such condition
18		of any such order. However, ; provided, however, that this
19		subsection shall not prohibit the Commission from:
20						(1) (blank); approving the application of an electric
21				utility to implement an alternative to rate of return
22				regulation or a regulatory mechanism that rewards or
23				penalizes the electric utility through adjustment of rates
24				based on utility performance, pursuant to Section 9-244;
25						(2 ) authorizing an electric utility to eliminate its
26				fuel adjustment clause and adjust its base rate tariffs in

09500SB1592ham004		-17-		LRB095 11114 RCE 37318 a

1				accordance with subsection (b) , (d) , or (f) of Section
2				9-220 of this Act, to fix its fuel adjustment factor in
3				accordance with subsection (c) of Section 9-220 of this
4				Act, or to eliminate its fuel adjustment clause in
5				accordance with subsection (e) of Section 9-220 of this
6				Act;
7						(3) ordering into effect tariffs for delivery services
8				and transition charges in accordance with Sections 16-104
9				and 16-108, for real-time pricing in accordance with
10				Section 16-107, or the options required by Section 16-110
11				and subsection (n) of 16-112, allowing a billing experiment
12				in accordance with Section 16-106, or modifying delivery
13				services tariffs in accordance with Section 16-109; or
14						(4) ordering or allowing into effect any tariff to
15				recover charges pursuant to Sections 9-201.5, 9-220.1,
16				9-221, 9-222 (except as provided in Section 9-222.1),
17				16-108, and 16-114 of this Act, Section 5-5 of the
18				Electricity Infrastructure Maintenance Fee Law, Section
19				6-5 of the Renewable Energy, Energy Efficiency, and Coal
20				Resources Development Law of 1997, and Section 13 of the
21				Energy Assistance Act.
22				After December 31, 2004, the provisions of this subsection
23		(a) shall not apply to an electric utility whose average
24		residential retail rate was 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

09500SB1592ham004		-18-		LRB095 11114 RCE 37318 a

1		on data reported on Form 1 to the Federal Energy Regulatory
2		Commission for calendar year 1995, and which served between
3		150,000 and 250,000 retail customers in this State on January
4		1, 1995 unless the electric utility or its holding company has
5		been acquired by or merged with an affiliate of another
6		electric utility subsequent to January 1, 2002. This exemption
7		shall be limited to this subsection (a) and shall not extend to
8		any other provisions of this Act.
9				(a-5) During the remainder of the mandatory transition
10		period, if any, the Commission may modify rates only in
11		accordance with Article IX of this Act.
12				(b) Notwithstanding the provisions of subsection (a) , each
13		Illinois electric utility serving more than 12,500 customers in
14		Illinois shall file tariffs (i) reducing, effective August 1,
15		1998, each component of its base rates to residential retail
16		customers by 15% from the base rates in effect immediately
17		prior to January 1, 1998 and (ii) if the public utility
18		provides electric service to (A) more than 500,000 customers
19		but less than 1,000,000 customers in this State on January 1,
20		1999, reducing, effective May 1, 2002, each component of its
21		base rates to residential retail customers by an additional 5%
22		from the base rates in effect immediately prior to January 1,
23		1998, or (B) at least 1,000,000 customers in this State on
24		January 1, 1999, reducing, effective October 1, 2001, each
25		component of its base rates to residential retail customers by
26		an additional 5% from the base rates in effect immediately

09500SB1592ham004		-19-		LRB095 11114 RCE 37318 a

1		prior to January 1, 1998. Provided, however, that (A) if an
2		electric utility’s average residential retail rate is less than
3		or equal to the average residential retail rate for a group of
4		Midwest Utilities (consisting of all investor-owned electric
5		utilities with annual system peaks in excess of 1000 megawatts
6		in the States of Illinois, Indiana, Iowa, Kentucky, Michigan,
7		Missouri, Ohio, and Wisconsin) , based on data reported on Form
8		1 to the Federal Energy Regulatory Commission for calendar year
9		1995, then it shall only be required to file tariffs (i)
10		reducing, effective August 1, 1998, each component of its base
11		rates to residential retail customers by 5% from the base rates
12		in effect immediately prior to January 1, 1998, (ii) reducing,
13		effective October 1, 2000, each component of its base rates to
14		residential retail customers by the lesser of 5% of the base
15		rates in effect immediately prior to January 1, 1998 or the
16		percentage by which the electric utility’s average residential
17		retail rate exceeds the average residential retail rate of the
18		Midwest Utilities, based on data reported on Form 1 to the
19		Federal Energy Regulatory Commission for calendar year 1999,
20		and (iii) reducing, effective October 1, 2002, each component
21		of its base rates to residential retail customers by an
22		additional amount equal to the lesser of 5% of the base rates
23		in effect immediately prior to January 1, 1998 or the
24		percentage by which the electric utility’s average residential
25		retail rate exceeds the average residential retail rate of the
26		Midwest Utilities, based on data reported on Form 1 to the

09500SB1592ham004		-20-		LRB095 11114 RCE 37318 a

1		Federal Energy Regulatory Commission for calendar year 2001;
2		and (B) if the average residential retail rate of an electric
3		utility serving between 150,000 and 250,000 retail customers in
4		this State on January 1, 1995 is less than or equal to 90% of
5		the average residential retail rate for the Midwest Utilities,
6		based on data reported on Form 1 to the Federal Energy
7		Regulatory Commission for calendar year 1995, then it shall
8		only be required to file tariffs (i) reducing, effective August
9		1, 1998, each component of its base rates to residential retail
10		customers by 2% from the base rates in effect immediately prior
11		to January 1, 1998; (ii) reducing, effective October 1, 2000,
12		each component of its base rates to residential retail
13		customers by 2% from the base rate in effect immediately prior
14		to January 1, 1998; and (iii) reducing, effective October 1,
15		2002, each component of its base rates to residential retail
16		customers by 1% from the base rates in effect immediately prior
17		to January 1, 1998. Provided, further, that any electric
18		utility for which a decrease in base rates has been or is
19		placed into effect between October 1, 1996 and the dates
20		specified in the preceding sentences of this subsection, other
21		than pursuant to the requirements of this subsection, shall be
22		entitled to reduce the amount of any reduction or reductions in
23		its base rates required by this subsection by the amount of
24		such other decrease. The tariffs required under this subsection
25		shall be filed 45 days in advance of the effective date.
26		Notwithstanding anything to the contrary in Section 9-220 of

09500SB1592ham004		-21-		LRB095 11114 RCE 37318 a

1		this Act, no restatement of base rates in conjunction with the
2		elimination of a fuel adjustment clause under that Section
3		shall result in a lesser decrease in base rates than customers
4		would otherwise receive under this subsection had the electric
5		utility’s fuel adjustment clause not been eliminated.
6		(c) Any utility reducing its base rates by 15% on August 1,
7		1998 pursuant to subsection (b) shall include the following
8		statement on its bills for residential customers from August 1
9		through December 31, 1998: “Effective August 1, 1998, your
10		rates have been reduced by 15% by the Electric Service Customer
11		Choice and Rate Relief Law of 1997 passed by the Illinois
12		General Assembly.”. Any utility reducing its base rates by 5%
13		on August 1, 1998, pursuant to subsection (b) shall include the
14		following statement on its bills for residential customers from
15		August 1 through December 31, 1998: “Effective August 1, 1998,
16		your rates have been reduced by 5% by the Electric Service
17		Customer Choice and Rate Relief Law of 1997 passed by the
18		Illinois General Assembly.”.
19		Any utility reducing its base rates by 2% on August 1, 1998
20		pursuant to subsection (b) shall include the following
21		statement on its bills for residential customers from August 1
22		through December 31, 1998: “Effective August 1, 1998, your
23		rates have been reduced by 2% by the Electric Service Customer
24		Choice and Rate Relief Law of 1997 passed by the Illinois
25		General Assembly.”.
26		(d) (Blank). During the mandatory transition period, but

09500SB1592ham004		-22-		LRB095 11114 RCE 37318 a

1		not before January 1, 2000, and notwithstanding the provisions
2		of subsection (a), an electric utility may request an increase
3		in its base rates if the electric utility demonstrates that the
4		2-year average of its earned rate of return on common equity,
5		calculated as its net income applicable to common stock divided
6		by the average of its beginning and ending balances of common
7		equity using data reported in the electric utility’s Form 1
8		report to the Federal Energy Regulatory Commission but adjusted
9		to remove the effects of accelerated depreciation or
10		amortization or other transition or mitigation measures
11		implemented by the electric utility pursuant to subsection (g)
12		of this Section and the effect of any refund paid pursuant to
13		subsection (e) of this Section, is below the 2-year average for
14		the same 2 years of the monthly average yields of 30-year U.S.
15		Treasury bonds published by the Board of Governors of the
16		Federal Reserve System in its weekly H.15 Statistical Release
17		or successor publication. The Commission shall review the
18		electric utility’s request, and may review the justness and
19		reasonableness of all rates for tariffed services, in
20		accordance with the provisions of Article IX of this Act,
21		provided that the Commission shall consider any special or
22		negotiated adjustments to the revenue requirement agreed to
23		between the electric utility and the other parties to the
24		proceeding. In setting rates under this Section, the Commission
25		shall exclude the costs and revenues that are associated with
26		competitive services and any billing or pricing experiments

09500SB1592ham004		-23-		LRB095 11114 RCE 37318 a

1		conducted under Section 16-106.
2		(e) (Blank). For the purposes of this subsection (e) all
3		calculations and comparisons shall be performed for the
4		Illinois operations of multijurisdictional utilities. During
5		the mandatory transition period, notwithstanding the
6		provisions of subsection (a), if the 2-year average of an
7		electric utility’s earned rate of return on common equity,
8		calculated as its net income applicable to common stock divided
9		by the average of its beginning and ending balances of common
10		equity using data reported in the electric utility’s Form 1
11		report to the Federal Energy Regulatory Commission but adjusted
12		to remove the effect of any refund paid under this subsection
13		(e), and further adjusted to include the annual amortization of
14		any difference between the consideration received by an
15		affiliated interest of the electric utility in the sale of an
16		asset which had been sold or transferred by the electric
17		utility to the affiliated interest subsequent to the effective
18		date of this amendatory Act of 1997 and the consideration for
19		which such asset had been sold or transferred to the affiliated
20		interest, with such difference to be amortized ratably from the
21		date of the sale by the affiliated interest to December 31,
22		2006, exceeds the 2-year average of the Index for the same 2
23		years by 1.5 or more percentage points, the electric utility
24		shall make refunds to customers beginning the first billing day
25		of April in the following year in the manner described in
26		paragraph (3) of this subsection. For purposes of this

09500SB1592ham004		-24-		LRB095 11114 RCE 37318 a

1		subsection (e), the “Index” shall be the sum of (A) the average
2		for the 12 months ended September 30 of the monthly average
3		yields of 30-year U.S. Treasury bonds published by the Board of
4		Governors of the Federal Reserve System in its weekly H.15
5		Statistical Release or successor publication for each year 1998
6		through 2006, and (B) (i) 4.00 percentage points for each of
7		the 12-month periods ending September 30, 1998 through
8		September 30, 1999 or 8.00 percentage points if the electric
9		utility’s average residential retail rate is less than or equal
10		to 90% of the average residential retail rate for the “Midwest
11		Utilities”, as that term is defined in subsection (b) of this
12		Section, based on data reported on Form 1 to the Federal Energy
13		Regulatory Commission for calendar year 1995, and the electric
14		utility served between 150,000 and 250,000 retail customers on
15		January 1, 1995, (ii) 7.00 percentage points for each of the
16		12-month periods ending September 30, 2000 through September
17		30, 2006 if the electric utility was providing service to at
18		least 1,000,000 customers in this State on January 1, 1999, or
19		9.00 percentage points if the electric utility’s average
20		residential retail rate is less than or equal to 90% of the
21		average residential retail rate for the “Midwest Utilities”, as
22		that term is defined in subsection (b) of this Section, based
23		on data reported on Form 1 to the Federal Energy Regulatory
24		Commission for calendar year 1995 and the electric utility
25		served between 150,000 and 250,000 retail customers in this
26		State on January 1, 1995, (iii) 11.00 percentage points for

09500SB1592ham004		-25-		LRB095 11114 RCE 37318 a

1		each of the 12-month periods ending September 30, 2000 through
2		September 30, 2006, but only if the electric utility’s average
3		residential retail rate is less than or equal to 90% of the
4		average residential retail rate for the “Midwest Utilities”, as
5		that term is defined in subsection (b) of this Section, based
6		on data reported on Form 1 to the Federal Energy Regulatory
7		Commission for calendar year 1995, the electric utility served
8		between 150,000 and 250,000 retail customers in this State on
9		January 1, 1995, and the electric utility offers delivery
10		services on or before June 1, 2000 to retail customers whose
11		annual electric energy use comprises 33% of the kilowatt hour
12		sales to that group of retail customers that are classified
13		under Division D, Groups 20 through 39 of the Standard
14		Industrial Classifications set forth in the Standard
15		Industrial Classification Manual published by the United
16		States Office of Management and Budget, excluding the kilowatt
17		hour sales to those customers that are eligible for delivery
18		services pursuant to Section 16-104(a)(1)(i), and offers
19		delivery services to its remaining retail customers classified
20		under Division D, Groups 20 through 39 on or before October 1,
21		2000, and, provided further, that the electric utility commits
22		not to petition pursuant to Section 16-108(f) for entry of an
23		order by the Commission authorizing the electric utility to
24		implement transition charges for an additional period after
25		December 31, 2006, or (iv) 5.00 percentage points for each of
26		the 12-month periods ending September 30, 2000 through

09500SB1592ham004		-26-		LRB095 11114 RCE 37318 a

1		September 30, 2006 for all other electric utilities or 7.00
2		percentage points for such utilities for each of the 12-month
3		periods ending September 30, 2000 through September 30, 2006
4		for any such utility that commits not to petition pursuant to
5		Section 16-108(f) for entry of an order by the Commission
6		authorizing the electric utility to implement transition
7		charges for an additional period after December 31, 2006 or
8		11.00 percentage points for each of the 12-month periods ending
9		September 30, 2005 and September 30, 2006 for each electric
10		utility providing service to fewer than 6,500, or between
11		75,000 and 150,000, electric retail customers in this State on
12		January 1, 1995 if such utility commits not to petition
13		pursuant to Section 16-108(f) for entry of an order by the
14		Commission authorizing the electric utility to implement
15		transition charges for an additional period after December 31,
16		2006.
17		(1) For purposes of this subsection (e), “excess
18		earnings” means the difference between (A) the 2-year
19		average of the electric utility’s earned rate of return on
20		common equity, less (B) the 2-year average of the sum of
21		(i) the Index applicable to each of the 2 years and (ii)
22		1.5 percentage points; provided, that “excess earnings”
23		shall never be less than zero.
24		(2) On or before March 31 of each year 2000 through
25		2007 each electric utility shall file a report with the
26		Commission showing its earned rate of return on common

09500SB1592ham004		-27-		LRB095 11114 RCE 37318 a

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

09500SB1592ham004		-28-		LRB095 11114 RCE 37318 a

1		(iv) The cents per kilowatt-hour refund factor
2		calculated in (iii) shall be credited to the electric
3		utility’s customers by applying the factor on the
4		customer’s monthly bills to each kilowatt-hour sold or
5		delivered until the total amount calculated in (ii) has
6		been paid to customers.
7		(f) During the mandatory transition period, an electric
8		utility may file revised tariffs reducing the price of any
9		tariffed service offered by the electric utility for all
10		customers taking that tariffed service, which shall be
11		effective 7 days after filing.
12		(g) During the mandatory transition period, an electric
13		utility may, without obtaining any approval of the Commission
14		other than that provided for in this subsection and
15		notwithstanding any other provision of this Act or any rule or
16		regulation of the Commission that would require such approval:
17		(1) implement a reorganization, other than a merger of
18		2 or more public utilities as defined in Section 3-105 or
19		their holding companies;
20		(2) retire generating plants from service;
21		(3) sell, assign, lease or otherwise transfer assets to
22		an affiliated or unaffiliated entity and as part of such
23		transaction enter into service agreements, power purchase
24		agreements, or other agreements with the transferee;
25		provided, however, that the prices, terms and conditions of
26		any power purchase agreement must be approved or allowed

09500SB1592ham004		-29-		LRB095 11114 RCE 37318 a

1		into effect by the Federal Energy Regulatory Commission; or
2		(4) use any accelerated cost recovery method including
3		accelerated depreciation, accelerated amortization or
4		other capital recovery methods, or record reductions to the
5		original cost of its assets.
6		In order to implement a reorganization, retire generating
7		plants from service, or sell, assign, lease or otherwise
8		transfer assets pursuant to this Section, the electric utility
9		shall comply with subsections (c) and (d) of Section 16-128, if
10		applicable, and subsection (k) of this Section, if applicable,
11		and provide the Commission with at least 30 days notice of the
12		proposed reorganization or transaction, which notice shall
13		include the following information:
14		(i) a complete statement of the entries that the
15		electric utility will make on its books and records of
16		account to implement the proposed reorganization or
17		transaction together with a certification from an
18		independent certified public accountant that such
19		entries are in accord with generally accepted
20		accounting principles and, if the Commission has
21		previously approved guidelines for cost allocations
22		between the utility and its affiliates, a
23		certification from the chief accounting officer of the
24		utility that such entries are in accord with those cost
25		allocation guidelines;
26		(ii) a description of how the electric utility will

09500SB1592ham004		-30-		LRB095 11114 RCE 37318 a

1		use proceeds of any sale, assignment, lease or transfer
2		to retire debt or otherwise reduce or recover the costs
3		of services provided by such electric utility;
4		(iii) a list of all federal approvals or approvals
5		required from departments and agencies of this State,
6		other than the Commission, that the electric utility
7		has or will obtain before implementing the
8		reorganization or transaction;
9		(iv) an irrevocable commitment by the electric
10		utility that it will not, as a result of the
11		transaction, impose any stranded cost charges that it
12		might otherwise be allowed to charge retail customers
13		under federal law or increase the transition charges
14		that it is otherwise entitled to collect under this
15		Article XVI; and
16		(v) if the electric utility proposes to sell,
17		assign, lease or otherwise transfer a generating plant
18		that brings the amount of net dependable generating
19		capacity transferred pursuant to this subsection to an
20		amount equal to or greater than 15% of the electric
21		utility’s net dependable capacity as of the effective
22		date of this amendatory Act of 1997, and enters into a
23		power purchase agreement with the entity to which such
24		generating plant is sold, assigned, leased, or
25		otherwise transferred, the electric utility also
26		agrees, if its fuel adjustment clause has not already

09500SB1592ham004		-31-		LRB095 11114 RCE 37318 a

1		been eliminated, to eliminate its fuel adjustment
2		clause in accordance with subsection (b) of Section
3		9-220 for a period of time equal to the length of any
4		such power purchase agreement or successor agreement,
5		or until January 1, 2005, whichever is longer; if the
6		capacity of the generating plant so transferred and
7		related power purchase agreement does not result in the
8		elimination of the fuel adjustment clause under this
9		subsection, and the fuel adjustment clause has not
10		already been eliminated, the electric utility shall
11		agree that the costs associated with the transferred
12		plant that are included in the calculation of the rate
13		per kilowatt-hour to be applied pursuant to the
14		electric utility’s fuel adjustment clause during such
15		period shall not exceed the per kilowatt-hour cost
16		associated with such generating plant included in the
17		electric utility’s fuel adjustment clause during the
18		full calendar year preceding the transfer, with such
19		limit to be adjusted each year thereafter by the Gross
20		Domestic Product Implicit Price Deflator.
21		(vi) In addition, if the electric utility proposes
22		to sell, assign, or lease, (A) either (1) an amount of
23		generating plant that brings the amount of net
24		dependable generating capacity transferred pursuant to
25		this subsection to an amount equal to or greater than
26		15% of its net dependable capacity on the effective

09500SB1592ham004		-32-		LRB095 11114 RCE 37318 a

1		date of this amendatory Act of 1997, or (2) one or more
2		generating plants with a total net dependable capacity
3		of 1100 megawatts, or (B) transmission and
4		distribution facilities that either (1) bring the
5		amount of transmission and distribution facilities
6		transferred pursuant to this subsection to an amount
7		equal to or greater than 15% of the electric utility’s
8		total depreciated original cost investment in such
9		facilities, or (2) represent an investment of
10		$25,000,000 in terms of total depreciated original
11		cost, the electric utility shall provide, in addition
12		to the information listed in subparagraphs (i) through
13		(v), the following information: (A) a description of
14		how the electric utility will meet its service
15		obligations under this Act in a safe and reliable
16		manner and (B) the electric utility’s projected earned
17		rate of return on common equity, calculated in
18		accordance with subsection (d) of this Section, for
19		each year from the date of the notice through December
20		31, 2006 both with and without the proposed
21		transaction. If the Commission has not issued an order
22		initiating a hearing on the proposed transaction
23		within 30 days after the date the electric utility’s
24		notice is filed, the transaction shall be deemed
25		approved. The Commission may, after notice and
26		hearing, prohibit the proposed transaction if it makes

09500SB1592ham004		-33-		LRB095 11114 RCE 37318 a

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

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

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1		shall not establish or use any rates of depreciation, which for
2		purposes of this subsection shall include amortization, for any
3		electric utility other than those established pursuant to
4		subsection (c) of Section 5-104 of this Act or utilized
5		pursuant to subsection (g) of this Section. Provided, however,
6		that in any proceeding to review an electric utility’s rates
7		for tariffed services pursuant to Section 9-201, 9-202, 9-250
8		or 16-111(d) of this Act, the Commission may establish new
9		rates of depreciation for the electric utility in the same
10		manner provided in subsection (d) of Section 5-104 of this Act.
11		An electric utility implementing an accelerated cost recovery
12		method including accelerated depreciation, accelerated
13		amortization or other capital recovery methods, or recording
14		reductions to the original cost of its assets, pursuant to
15		subsection (g) of this Section, shall file a statement with the
16		Commission describing the accelerated cost recovery method to
17		be implemented or the reduction in the original cost of its
18		assets to be recorded. Upon the filing of such statement, the
19		accelerated cost recovery method or the reduction in the
20		original cost of assets shall be deemed to be approved by the
21		Commission as though an order had been entered by the
22		Commission.
23		(i) Subsequent to the mandatory transition period, the
24		Commission, in any proceeding to establish rates and charges
25		for tariffed services offered by an electric utility, may shall
26		consider, among other factors, only (1) the then current or

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1		projected revenues, costs, investments and cost of capital
2		directly or indirectly associated with the provision of such
3		tariffed services; (2) collection of transition charges in
4		accordance with Sections 16-102 and 16-108 of this Act; (3)
5		recovery of any employee transition costs as described in
6		Section 16-128 which the electric utility is continuing to
7		incur, including recovery of any unamortized portion of such
8		costs previously incurred or committed, with such costs to be
9		equitably allocated among bundled services, delivery services,
10		and contracts with alternative retail electric suppliers; and
11		(4) recovery of the costs associated with the electric
12		utility’s compliance with decommissioning funding
13		requirements; and shall not consider any other revenues, costs,
14		investments or cost of capital of either the electric utility
15		or of any affiliate of the electric utility that are not
16		associated with the provision of tariffed services. In setting
17		rates for tariffed services, the Commission shall equitably
18		allocate joint and common costs and investments between the
19		electric utility’s competitive and tariffed services. In
20		determining the justness and reasonableness of the electric
21		power and energy component of an electric utility’s rates for
22		tariffed services subsequent to the mandatory transition
23		period and prior to the time that the provision of such
24		electric power and energy is declared competitive, the
25		Commission shall consider the extent to which the electric
26		utility’s tariffed rates for such component for each customer

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1		class exceed the market value determined pursuant to Section
2		16-112, and, if the electric power and energy component of such
3		tariffed rate exceeds the market value by more than 10% for any
4		customer class, may establish such electric power and energy
5		component at a rate equal to the market value plus 10%. In any
6		such case, the Commission may also elect to extend the
7		provisions of Section 16-111(e) for any period in which the
8		electric utility is collecting transition charges, using
9		information applicable to such period.
10		(j) During the mandatory transition period, an electric
11		utility may elect to transfer to a non-operating income account
12		under the Commission’s Uniform System of Accounts either or
13		both of (i) an amount of unamortized investment tax credit that
14		is in addition to the ratable amount which is credited to the
15		electric utility’s operating income account for the year in
16		accordance with Section 46(f)(2) of the federal Internal
17		Revenue Code of 1986, as in effect prior to P.L. 101-508, or
18		(ii) “excess tax reserves”, as that term is defined in Section
19		203(e)(2)(A) of the federal Tax Reform Act of 1986, provided
20		that (A) the amount transferred may not exceed the amount of
21		the electric utility’s assets that were created pursuant to
22		Statement of Financial Accounting Standards No. 71 which the
23		electric utility has written off during the mandatory
24		transition period, and (B) the transfer shall not be effective
25		until approved by the Internal Revenue Service. An electric
26		utility electing to make such a transfer shall file a statement

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1		with the Commission stating the amount and timing of the
2		transfer for which it intends to request approval of the
3		Internal Revenue Service, along with a copy of its proposed
4		request to the Internal Revenue Service for a ruling. The
5		Commission shall issue an order within 14 days after the
6		electric utility’s filing approving, subject to receipt of
7		approval from the Internal Revenue Service, the proposed
8		transfer.
9		(k) If an electric utility is selling or transferring to a
10		single buyer 5 or more generating plants located in this State
11		with a total net dependable capacity of 5000 megawatts or more
12		pursuant to subsection (g) of this Section and has obtained a
13		sale price or consideration that exceeds 200% of the book value
14		of such plants, the electric utility must provide to the
15		Governor, the President of the Illinois Senate, the Minority
16		Leader of the Illinois Senate, the Speaker of the Illinois
17		House of Representatives, and the Minority Leader of the
18		Illinois House of Representatives no later than 15 days after
19		filing its notice under subsection (g) of this Section or 5
20		days after the date on which this subsection (k) becomes law,
21		whichever is later, a written commitment in which such electric
22		utility agrees to expend $2 billion outside the corporate
23		limits of any municipality with 1,000,000 or more inhabitants
24		within such electric utility’s service area, over a 6-year
25		period beginning with the calendar year in which the notice is
26		filed, on projects, programs, and improvements within its

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1		service area relating to transmission and distribution
2		including, without limitation, infrastructure expansion,
3		repair and replacement, capital investments, operations and
4		maintenance, and vegetation management.
5		(l) The provisions of this amendatory Act of the 95th
6		General Assembly relating to (i) the reinstatement of rates and
7		(ii) refunds to customers are separate issues and severable. If
8		either of those provisions or its application to any person or
9		circumstance is held invalid, then the invalidity of that
10		provision or application does not affect the other provision or
11		its application. This subsection (l) does not in any way limit
12		the general severability clause of Section 99-97 of this
13		amendatory Act of the 95th General Assembly.
14		(Source: P.A. 91-50, eff. 6-30-99; 92-537, eff. 6-6-02; 92-690,
15		eff. 7-18-02; revised 9-10-02.)
16		(220 ILCS 5/16-113)
17		Sec. 16-113. Declaration of service as a competitive
18		service.
19		(a) An electric utility may, by petition, request the
20		Commission to declare a tariffed service provided by the
21		electric utility to be a competitive service. The electric
22		utility shall give notice of its petition to the public in the
23		same manner that public notice is provided for proposed general
24		increases in rates for tariffed services, in accordance with
25		rules and regulations prescribed by the Commission. The

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

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1		by the electric utility and (ii) any residential and small
2		commercial retail customers prior to the last date on which
3		such customers are required to pay transition charges. In
4		determining whether to grant or deny a petition to declare the
5		provision of electric power and energy competitive, the
6		Commission shall consider, in applying the above criteria,
7		whether there is adequate transmission capacity into the
8		service area of the petitioning electric utility to make
9		electric power and energy reasonably available to the customer
10		segment or group or in the defined geographical area from one
11		or more providers other than the electric utility or an
12		affiliate of the electric utility, in accordance with this
13		subsection. The Commission shall make its determination and
14		issue its final order declaring or refusing to declare the
15		service to be a competitive service within 180 120 days
16		following the date that the petition is filed, or otherwise the
17		petition shall be deemed to be granted; provided, that if the
18		petition is deemed to be granted by operation of law, the
19		Commission shall not thereby be precluded from finding and
20		ordering, in a subsequent proceeding initiated by the
21		Commission, and after notice and hearing, that the service is
22		not competitive based on the criteria set forth in this
23		subsection.
24		(b) Any customer except a customer identified in subsection
25		(c) of Section 16-103 who is taking a tariffed service that is
26		declared to be a competitive service pursuant to subsection (a)

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1		of this Section shall be entitled to continue to take the
2		service from the electric utility on a tariffed basis for a
3		period of 3 years following the date that the service is
4		declared competitive, or such other period as is stated in the
5		electric utility’s tariff pursuant to Section 16-110. This
6		subsection shall not require the electric utility to offer or
7		provide on a tariffed basis any service to any customer (except
8		those customers identified in subsection (c) of Section 16-103)
9		that was not taking such service on a tariffed basis on the
10		date the service was declared to be competitive.
11		(c) If the Commission denies a petition to declare a
12		service to be a competitive service, or determines in a
13		separate proceeding that a service is not competitive based on
14		the criteria set forth in subsection (a), the electric utility
15		may file a new petition no earlier than 6 months following the
16		date of the Commission’s order, requesting, on the basis of
17		additional or different facts and circumstances, that the
18		service be declared to be a competitive service.
19		(d) The Commission shall not deny a petition to declare a
20		service to be a competitive service, and shall not find that a
21		service is not a competitive service, on the grounds that it
22		has previously denied the petition of another electric utility
23		to declare the same or a similar service to be a competitive
24		service or has previously determined that the same or a similar
25		service provided by another electric utility is not a
26		competitive service.

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1		(e) An electric utility may declare a service, other than
2		delivery services or the provision of electric power or energy,
3		to be competitive by filing with the Commission at least 14
4		days prior to the date on which the service is to become
5		competitive a notice describing the service that is being
6		declared competitive and the date on which it will become
7		competitive; provided, that any customer who is taking a
8		tariffed service that is declared to be a competitive service
9		pursuant to this subsection (e) shall be entitled to continue
10		to take the service from the electric utility on a tariffed
11		basis until the electric utility files, and the Commission
12		grants, a petition to declare the service competitive in
13		accordance with subsection (a) of this Section. The Commission
14		shall be authorized to find and order, after notice and hearing
15		in a subsequent proceeding initiated by the Commission, that
16		any service declared to be competitive pursuant to this
17		subsection (e) is not competitive in accordance with the
18		criteria set forth in subsection (a) of this Section.
19		(Source: P.A. 90-561, eff. 12-16-97.)
20		(220 ILCS 5/16-135 new)
21		Sec. 16-135. The Consumers Overbilled and Reimbursed for
22		Electricity Fund.
23		(a) The Consumers Overbilled and Reimbursed for
24		Electricity Fund is created as a special fund in the State
25		treasury. Subject to appropriation, moneys in the Fund shall be

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