HB4649 96TH GENERAL ASSEMBLY

LRB096 14943 MJR 29836 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4649

Introduced 10/14/2009, by Rep. Dan Reitz

SYNOPSIS AS INTRODUCED:

220 ILCS 5/8-406	from Ch. 111 2/3, par. 8-406
220 ILCS 5/8-406.1 new
220 ILCS 5/8-509	from Ch. 111 2/3, par. 8-509
220 ILCS 5/8-510	from Ch. 111 2/3, par. 8-510

Amends the Public Utilities Act. Provides that specified provisions concerning a certificate of public convenience and necessity do not apply to an electric utility providing transmission service connections located within its certified or service territory in the usual course of business or transmission system extensions approved pursuant to a specific provision. Adds a provision concerning an alternative procedure for obtaining a certificate of public convenience and necessity for specified transmission line extensions not in the usual course of business. Includes land use studies as an activity requiring a certificate of public convenience and necessity. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning utilities.

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

Section 5. The Public Utilities Act is amended by changing Sections 8-406, 8-509, and 8-510 and by adding Section 8-406.1 as follows:

(220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)

Sec. 8-406. Certificate of public convenience and necessity.

(a) No public utility not owning any city or village franchise nor engaged in performing any public service or in furnishing any product or commodity within this State as of July 1, 1921 and not possessing a certificate of public convenience and necessity from the Illinois Commerce Commission, the State Public Utilities Commission or the Public Utilities Commission, at the time this amendatory Act of 1985 goes into effect, shall transact any business in this State until it shall have obtained a certificate from the Commission that public convenience and necessity require the transaction of such business.

(b) No public utility shall begin the construction of any new plant, equipment, property or facility which is not in substitution of any existing plant, equipment, property or facility or any extension or alteration thereof or in addition thereto, unless and until it shall have obtained from the Commission a certificate that public convenience and necessity require such construction. Whenever after a hearing the Commission determines that any new construction or the transaction of any business by a public utility will promote the public convenience and is necessary thereto, it shall have the power to issue certificates of public convenience and necessity. The Commission shall determine that proposed construction will promote the public convenience and necessity only if the utility demonstrates: (1) that the proposed construction is necessary to provide adequate, reliable, and efficient service to its customers and is the least-cost means of satisfying the service needs of its customers or that the proposed construction will promote the development of an effectively competitive electricity market that operates efficiently, is equitable to all customers, and is the least cost means of satisfying those objectives; (2) that the utility is capable of efficiently managing and supervising the construction process and has taken sufficient action to ensure adequate and efficient construction and supervision thereof; and (3) that the utility is capable of financing the proposed construction without significant adverse financial consequences for the utility or its customers.

This Section does not apply to an electric utility providing transmission service connections located within its certified or service territory in the usual course of business or transmission system extensions approved under Section 8-406.1. Transmission service connections made in the usual course of business include any of the following:

(i) the replacement or upgrading of existing electric transmission line, notwithstanding its voltage level, capacity, or length;

(ii) the relocation of existing electric transmission line, notwithstanding its voltage level, capacity, or length, to accommodate construction or expansion of a roadway or other transportation infrastructure;

(iii) an electric transmission line that is constructed solely to serve a single customer's premises and that will pass under or over the premises owned by the customer to be served or under or over premises for which the customer has secured the necessary right of way; or

(iv) the construction of an electric transmission line having a capacity of 100 kilovolts or more and a length of not more than 5,280 feet.

(c) After the effective date of this amendatory Act of 1987, no construction shall commence on any new nuclear power plant to be located within this State, and no certificate of public convenience and necessity or other authorization shall be issued therefor by the Commission, until the Director of the Illinois Environmental Protection Agency finds that the United States Government, through its authorized agency, has identified and approved a demonstrable technology or means for the disposal of high level nuclear waste, or until such construction has been specifically approved by a statute enacted by the General Assembly.

As used in this Section, "high level nuclear waste" means those aqueous wastes resulting from the operation of the first cycle of the solvent extraction system or equivalent and the concentrated wastes of the subsequent extraction cycles or equivalent in a facility for reprocessing irradiated reactor fuel and shall include spent fuel assemblies prior to fuel reprocessing.

(d) In making its determination, the Commission shall attach primary weight to the overall cost, cost of materials, or cost savings to the customers of the utility. The Commission may consider any or all factors which will or may affect such overall cost, cost of materials, or cost savings.

(e) The Commission may issue a temporary certificate which shall remain in force not to exceed one year in cases of emergency, to assure maintenance of adequate service or to serve particular customers, without notice or hearing, pending the determination of an application for a certificate, and may by regulation exempt from the requirements of this Section temporary acts or operations for which the issuance of a certificate will not be required in the public interest.

A public utility shall not be required to obtain but may apply for and obtain a certificate of public convenience and necessity pursuant to this Section with respect to any matter as to which it has received the authorization or order of the Commission under the Electric Supplier Act, and any such authorization or order granted a public utility by the Commission under that Act shall as between public utilities be deemed to be, and shall have except as provided in that Act the same force and effect as, a certificate of public convenience and necessity issued pursuant to this Section.

No electric cooperative shall be made or shall become a party to or shall be entitled to be heard or to otherwise appear or participate in any proceeding initiated under this Section for authorization of power plant construction and as to matters as to which a remedy is available under The Electric Supplier Act.

(f) Such certificates may be altered or modified by the Commission, upon its own motion or upon application by the person or corporation affected. Unless exercised within a period of 2 years from the grant thereof authority conferred by a certificate of convenience and necessity issued by the Commission shall be null and void.

No certificate of public convenience and necessity shall be construed as granting a monopoly or an exclusive privilege, immunity or franchise.

(Source: P.A. 95-700, eff. 11-9-07.)

(220 ILCS 5/8-406.1 new)

Sec. 8-406.1. Certificate of public convenience and necessity; alternative procedure for specified transmission line extensions not in the usual course of business.

(a) An electric utility may seek an alternative certificate of public convenience and necessity for the construction of any new electric transmission lines having a capacity of 100 kilovolts or more and a continuous length of more than 5,280 feet.

(b) An application for a certificate of public convenience and necessity under this Section shall include all information related to the manner and time of construction and other information in support of the alternative treatment afforded by this Section. The application shall also provide information required under paragraphs (c), (e), (g), and (j) of 18 CFR 50.7, as now in effect and as amended from time to time, and the application shall include an application fee of $100,000 to be paid into the Public Utility Fund at the time the Chief Clerk of the Commission deems the application complete and accepts the filing. The electric utility shall publish notice of its application in the official State newspaper within 10 days after the date of the application's filing.

(c) The Commission shall grant the application for a certificate of public convenience and necessity pursuant to this Section if, based upon the application filed with the Commission, it finds all of the following:

(i) That the transmission line is the least cost means of satisfying the service needs of the electric utility's customers or that the electric utility's proposed construction of the line will promote the development of an effectively competitive electricity market that operates efficiently and is equitable to all customers.

(ii) That the electric utility is capable of efficiently managing and supervising the construction process and has taken sufficient action to ensure adequate and efficient construction and supervision.

(iii) That the electric utility is capable of financing the proposed construction without significant adverse financial consequences for the utility or its customers.

(d) The Commission shall issue its decision with findings of fact and conclusions of law granting or denying the application no later than 120 days after the application is filed.

(e) The electric utility shall pay a one-time construction fee to each county in which the transmission line is constructed pursuant to a certificate granted under this Section. The construction fee shall be $20,000 per mile of transmission line constructed in that county, or proportionate fraction thereof, and it shall be paid to the county treasurer 30 days after completion of the construction of the transmission line constructed in that county pursuant to the certificate of public convenience and necessity granted under this Section. Counties receiving a payment under this Section from an electric utility may distribute all or portions of the fee to local taxing districts in that county who are contiguous to the transmission line.

(f) A decision denying the application under this Section shall not act as a bar to the electric utility's seeking a certificate pursuant to the provisions of Section 8-406 of this Act.

(g) Notwithstanding any other provisions of this Act, a decision granting a certificate under this Section shall include an order pursuant to Section 8-503 of this Act authorizing or directing the construction of the electric transmission line as approved by the Commission, in the manner and within the time specified in the order.

(220 ILCS 5/8-509) (from Ch. 111 2/3, par. 8-509)

Sec. 8-509. When necessary for the construction of any alterations, additions, extensions or improvements ordered or authorized under Section 8-406.1, 8-503, or 12-218 of this Act, any public utility may enter upon, take or damage private property in the manner provided for by the law of eminent domain.

This Section applies to the exercise of eminent domain powers by telephone companies or telecommunications carriers only when the facilities to be constructed are intended to be used in whole or in part for providing one or more intrastate telecommunications services classified as "noncompetitive" under Section 13-502 in a tariff filed by the condemnor. The exercise of eminent domain powers by telephone companies or telecommunications carriers in all other cases shall be governed solely by "An Act relating to the powers, duties and property of telephone companies", approved May 16, 1903, as now or hereafter amended.

(Source: P.A. 86-221.)

(220 ILCS 5/8-510) (from Ch. 111 2/3, par. 8-510)

Sec. 8-510. Land surveys and land use studies. For the purpose of making land surveys and land use studies, any public utility that has been granted a certificate of public convenience and necessity by, or received an order under Section 8-503 or 8-406.1 of this Act from, the Commission may, 30 days after providing written notice to the owner thereof by registered mail, enter upon the property of any owner who has refused permission for entrance upon that property, but subject to responsibility for all damages which may be inflicted thereby.

(Source: P.A. 90-561, eff. 12-16-97.)

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