220 ILCS 5/16-126
2021 Illinois Compiled Statutes|Chapter 220 - UTILITIES|220 ILCS 5/ - Public Utilities Act.|Article XVI - Electric Service Customer Choice And Rate Relief Law Of 1997

Sec. 16-126.     Membership in an independent system operator.(a) The General Assembly finds that the establishment of one or  more independent system operators or their functional equivalents  is required to facilitate the development of an open and  efficient marketplace for electric power and energy to the  benefit of Illinois consumers. Therefore, each Illinois electric  utility owning or controlling transmission facilities or  providing transmission services in Illinois and that is a member  of the Mid-American Interconnected Network as of the effective  date of this amendatory Act of 1997 shall submit for approval to  the Federal Energy Regulatory Commission an application for  establishing or joining an independent system operator that  shall:(1) independently manage and control transmission     facilities of any electric utility;(2) provide for nondiscriminatory access to and use     of the transmission system for buyers and sellers of electricity;(3) direct the transmission activities of the control     area operators;(4) coordinate, plan, and order the installation of     new transmission facilities;(5) adopt inspection, maintenance, repair, and     replacement standards for the transmission facilities under its control and direct maintenance, repair, and replacement of all facilities under its control; and(6) implement procedures and act to assure the     provision of adequate and reliable service.These standards shall be  consistent with reliability criteria no less stringent than those  established by the Mid-American Interconnected Network and the  North American Electric Reliability Council or their successors.(b) The requirements of this Section may be met by joining or  establishing a regional independent system operator that meets  the criteria enumerated in subsections (a), (c), and (d) of this  Section, as determined by the Commission. To achieve the  objectives set forth in subsection (a), the State of Illinois,  through the appropriate officers, departments, and agencies, shall  work cooperatively with the appropriate officials and agencies of  those States contiguous to this State and the Federal Energy  Regulatory Commission towards the formation of one or more  regional independent system operators.(c) The independent system operator's governance structure must be fair and  nondiscriminatory, and  the independent system operator must be independent of any one market  participant or class of participants. The independent system operator's rules  of  governance must prevent control, or the appearance of control, of  decision-making by any class of participants.(d) Participants in the independent system operator shall make available to  the independent system operator all  information required by the independent system operator in performance of its  functions  described herein. The independent system operator and the electric utilities  participating in the independent system operator shall make all filings  required by the  Federal Energy Regulatory Commission. The independent system operator shall  ensure that  additional filings at the Federal Energy Regulatory Commission  request confirmation of the relevant provisions of this  amendatory Act of 1997.(e) If a spot market, exchange market, or other market-based  mechanism providing transparent real-time market prices for  electric power has not been developed, the independent system operator or a  closely  cooperating agent of the independent system operator may provide an efficient  competitive  power exchange auction for electric power and energy, open on a  nondiscriminatory basis to all suppliers, which meets the loads  of all auction customers at efficient prices.(f) For those electric utilities referred to in subsection (a)  which have not filed with the Federal Energy Regulatory Commission by June 30,  1998 an  application for establishment or participation in an independent  system operator or if such application has not been approved by  the Federal Energy Regulatory Commission by March 31, 1999, a 5 member  Oversight Board shall  be formed. The Oversight Board shall (1) oversee the creation of  an Illinois independent system operator and (2) determine the composition and  initial  terms of service of, and appoint the initial members of, the  Illinois independent system operator board of directors. The Oversight Board  shall  consist of the following: (1) 3 persons appointed by the  Governor; (2) one person appointed by the Speaker of the House of  Representatives; and (3) one person appointed by the President of  the Senate. The Oversight Board shall take the steps that are  necessary to ensure the earliest possible incorporation of an  Illinois independent system operator under the Business Corporation Act of  1983, and  shall serve until the Illinois independent system operator is incorporated.(g) After notice and hearing, the Commission shall require each  electric utility referred to in subsection (a), that is not  participating in an independent system operator meeting the requirements of  subsections  (a) and (c), to seek authority from the Federal Energy Regulatory Commission to  transfer  functional control of transmission facilities to the Illinois independent  system operator  for control by the Illinois independent system operator consistent with the  requirements  of subsection (a). Upon approval by the Federal Energy Regulatory Commission,  electric utilities  may also elect to transfer ownership of transmission facilities  to the Illinois independent system operator. Nothing in this Act shall be  deemed to  preclude the  Illinois independent system operator from (1) seeking authority,  as  necessary, to merge with or otherwise combine its operations with  those of one or more other entities authorized to provide  transmission services, (2) purchasing or leasing transmission  assets from transmission-owning entities not required by this  Section to lease transmission facilities to the Illinois independent system  operator, or  (3) operating as a transmission public utility under the Federal  Power Act.(h) Any other owner of transmission facilities in Illinois not  required by this Section to participate in an independent system operator shall  be  permitted, but not required, to become a member of the Illinois  independent system operator.(i) The Illinois independent system operator created under this Section, and  any other  independent system operator authorized by the Federal Energy Regulatory  Commission to provide  transmission services as a  public utility under the Federal Power Act within the State of  Illinois, shall be deemed to be a public utility for purposes of  Section 8-503 and 8-509 of this Act.  An independent system operator or regional transmission organization that is  the subject  of an order entered by the Commission under Section 8-503 need not possess a  certificate  of service authority under Section 8-406 in order to be authorized to take the  actions set  forth in Section 8-509.(j) Electric utilities referred to in subsection (a) may withdraw  from the Illinois independent system operator upon becoming a member of an  independent  system operator or operators conforming with the criteria in  subsections (a) and (c) and whose formation and operation has  been approved by the Federal Energy Regulatory Commission. This  subsection does not relieve any electric utility of any  obligations under Federal law.(k) Nothing in this Section shall be construed as imposing any  requirements or obligations that are in conflict with federal  law.(l) A regional transmission organization created under the rules of the  Federal  Energy Regulatory Commission shall be considered to be the functional  equivalent of an  independent system operator for purposes of this Section, and an electric  utility shall be  deemed to meet its obligations under this Section through membership in a  regional  transmission organization that fulfills the requirements of an independent  system operator  under this Section.    (Source: P.A. 92-12, eff. 7-1-01.)