220 ILCS 5/18-105
2021 Illinois Compiled Statutes|Chapter 220 - UTILITIES|220 ILCS 5/ - Public Utilities Act.|Article XVIII - Electric Utility Transitional Funding Law

Sec. 18-105.     Intangible transition property.(a) Notwithstanding any other provision of this Act or  other law, the Commission is hereby authorized, in accordance  with the application for a transitional funding order, to  create, establish and grant rights in, to and under intangible  transition property in and to any grantee, electric utility,  issuer or assignee, and such party shall be granted the power  to levy general tariffs on retail customers of an electric  utility or any other person required to pay an instrument  funding charge in order to collect the instrument funding  charges related to the intangible transition property in which  such party has been granted rights and in order to facilitate  the issuance of transitional funding instruments and grantee  instruments, if any, to, by or on behalf of electric  utilities, grantees, issuers or assignees.  The Commission  shall be authorized to create, establish and grant such rights  hereunder in and to such party with or without receiving  consideration from such party.(b) The State pledges to and agrees with the holders of  any transitional funding instruments who may enter into  contracts with an electric utility, grantee, assignee or  issuer pursuant to this Article XVIII that the State will not  in any way limit, alter, impair or reduce the value of  intangible transition property created by, or instrument  funding charges approved by, a transitional funding order so  as to impair the terms of any contract made by such electric  utility, grantee, assignee or issuer with such holders or in  any way impair the rights and remedies of such holders until  the pertinent grantee instruments or, if the related  transitional funding order does not provide for the issuance  of grantee instruments, the pertinent transitional funding  instruments and interest, premium and other fees, costs and  charges related thereto, as the case may be, are fully paid  and discharged.  Electric utilities, grantees and issuers are  authorized to include these pledges and agreements of the  State in any contract with the holders of transitional funding  instruments or with any assignees pursuant to this Article  XVIII and any assignees are similarly authorized to include  these pledges and agreements of the State in any contract with  any issuer, holder or any other assignee.  Nothing in this Article XVIII shall preclude the State of Illinois from  requiring adjustments as may otherwise be allowed by law to the electric  utility's base rates, transition charges, delivery services charges, or other  charges for tariffed services, so long as any such adjustment does not directly  affect or impair any instrument funding charges previously authorized by a  transitional funding order issued by the Commission.(c) Transitional funding instruments and grantee  instruments, if any, issued under this Article do not  constitute debt or liability of the State or of any political  subdivision thereof, and transitional funding orders  authorizing such issuance do not constitute a pledge of the  full faith and credit of the State or of any of its political  subdivisions.  The issuance of transitional funding  instruments and grantee instruments, if any, under this  Article shall not directly, indirectly or contingently  obligate the State or any political subdivision thereof to  levy or to pledge any form of taxation therefor or to make any  appropriation for their payment, and any such transitional  funding instruments and grantee instruments, if any, shall be  payable solely from the intangible transition property or  grantee instruments, as the case may be, or from such other  proceeds or property as may be pledged therefor.  Nothing in  this Section shall be construed to prevent the State or any  political subdivision thereof from owning any interest in a  grantee, assignee or issuer or to prevent any electric  utility, issuer, grantee or assignee from selling, pledging or  assigning intangible transition property or grantee  instruments, as the case may be, or from providing recourse or  guarantees or any other third-party credit enhancement in  connection with such sale, pledge or assignment.    (Source: P.A. 90-561, eff. 12-16-97.)