220 ILCS 5/9-244
2021 Illinois Compiled Statutes|Chapter 220 - UTILITIES|220 ILCS 5/ - Public Utilities Act.|Article IX - Rates

 (from Ch. 111 2/3, par. 9-244)Sec. 9-244.     Alternative rate regulation.(a) Notwithstanding any of the ratemaking provisions of  this Article IX or other Sections of this Act, or the  Commission's rules that are deemed to require rate of return  regulation, and except as provided in Article XVI, the  Commission, upon petition by an electric or gas public utility, and after  notice and hearing, may authorize for some or all of the  regulated services of that utility, the implementation of one  or more programs consisting of (i) alternatives to rate of  return regulation, including but not limited to earnings  sharing, rate moratoria, price caps or flexible rate options,  or (ii) other regulatory mechanisms that reward or penalize  the utility through the adjustment of rates based on utility  performance.  In the case of other regulatory mechanisms that  reward or penalize utilities through the adjustment of rates  based on utility performance, the utility's performance shall  be compared to standards established in the Commission order  authorizing the implementation of other regulatory mechanisms.   The Commission is specifically authorized to approve in  response to such petitions different forms of alternatives to  rate of return regulation or other regulatory mechanisms to  fit the particular characteristics and requirements of  different utilities and their service territories.(b) The Commission shall approve the program if it  finds, based on the record, that:(1) the program is likely to result in rates lower     than otherwise would have been in effect under traditional rate of return regulation for the services covered by the program and that are consistent with the provisions of Section 9-241 of the Act; and(2) the program is likely to result in other     substantial and identifiable benefits that would be realized by customers served under the program and that would not be realized in the absence of the program; and(3) the utility is in compliance with applicable     Commission standards for reliability and implementation of the program is not likely to adversely affect service reliability; and(4) implementation of the program is not likely to     result in deterioration of the utility's financial condition; and(5) implementation of the program is not likely to     adversely affect the development of competitive markets; and(6) the electric utility is in compliance with its     obligation to offer delivery services pursuant to Article XVI; and(7) the program includes annual  reporting     requirements and other provisions that will enable the Commission to adequately monitor its implementation of the program; and(8) the program includes provisions for an equitable     sharing of any net economic benefits between the utility and its customers to the extent the program is likely to result in such benefits.The Commission shall issue its order approving or denying the  program no later than 270 days from the date of filing of the  petition.  Any program approved under this Section shall  continue in effect until revised, modified or terminated by  order of the Commission as provided in this Section.   If the  Commission cannot make the above findings, it shall  specifically identify in its order the reason or reasons why  the proposed program does not meet the above criteria, and  shall identify any modifications supported in the record, if  any, that would cause the program to satisfy the above  criteria.  In the event the order identifies any such  modifications it shall not become a final order subject to  petitions for rehearing until 15 days after service of same by  the Commission.  The utility shall have 14 days following the  date of service of the order to notify the Commission in  writing whether it will accept any modifications so identified  in the order or whether it has elected not to proceed with the  program.  If the utility notifies the Commission that it will  accept such modifications, the Commission shall issue an  amended order, without further hearing, within 14 days  following such notification, approving the program as modified  and such order shall be considered to be a final order of the  Commission subject to petitions for rehearing and appellate  procedures.(c) The Commission shall open a proceeding to review any  program approved under subsection (b) 2 years after the  program is first implemented to determine whether the program  is meeting its objectives, and may make such revisions, no  later than 270 days after the proceeding is opened, as are  necessary to result in the program meeting its objectives.  A  utility may elect to discontinue any program so revised.  The  Commission shall not otherwise direct a utility to revise,  modify or cancel a program during its term of operation,  except as found necessary, after notice and hearing, to ensure  system reliability.(d) Upon its own motion or complaint, the Commission may  investigate whether the utility is implementing an approved  program in accordance with the Commission order approving the  program.  If the Commission finds after notice and hearing,  that the utility is not implementing the program in accordance  with such order, the Commission shall order the utility to  comply with the terms of the order.  Complaints relating to  the program filed under Section 9-250 of this Act, alleging  that the program does not comply with that Section or the  requirements of subsection (b) shall not be filed sooner than  one year after the review provided for in subsection (c).  The  complainant shall bear the burden of proving the allegations  in the complaint.(e) The Commission shall not be authorized to allow or  order an electric utility to place a program into effect,  pursuant to this Section, applicable to delivery services  provided by a utility, unless the utility already has in  effect a delivery services tariff conforming to the  requirements of Section 16-108 of this Act.(f) The Commission may, upon subsequent petition by the  utility, after notice and hearing, authorize the extension of  a program that was previously approved pursuant to this  Section or approve revisions or modifications of such a  program to be effective, after the initially approved program  has been in effect.  Any such petition seeking an extension,  revision, or modification of such a program must be  accompanied by an evaluation of the program addressing the  criteria set forth in subsection (b) hereof.  The utility's  petition may, but is not required to, specify a termination  date for the extended, revised or modified program.  The  Commission may require a review of the extended, revised, or  modified program at such intervals as may be ordered by the  Commission, for the purpose of determining whether the program  should be revised, modified, or terminated.    (Source: P.A. 89-194, eff. 1-1-96; 90-561, eff. 12-16-97.)