Sec. 16-108.20. Cost-effectiveness incentive.

315 words·~1 min read·/il/chapter-220/act-5/16-108-20

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(a)The General Assembly finds that it is critical to maintain this focus on utility bill affordability as the State transitions to a clean energy economy. The General Assembly accordingly finds that it may be in the public interest to incentivize electric utilities to reduce spending where practicable and where such reduction will not have an adverse impact on the State's clean energy goals; this Act's overarching objectives of efficiency, environmental quality, reliability, and equity; or the utility's achievement on its metrics.

(b)In addition to the performance metrics established and approved by the Commission pursuant to Section 16-108.18 of this Act, the Commission may also determine whether each electric utility that serves more than 500,000 retail customers in the State may also be subject to a performance metric that incentivizes the utility to make cost-effective choices and stretch to achieve cost savings for public utility customers where it can do so without adverse impact (on efficiency, environmental quality, reliability or equity).

(c)The Commission shall initiate a docket on the subject of cost-effective shared savings, and shall make a determination if it would be in the public interest and the best interest of electric utility customers to establish a performance metric that incentivizes utilities to reduce their costs while meeting all other performance metrics and addressing state goals as found in this Act.

(d)At the conclusion of the docket, if the Commission determines that such an incentive is in the best interest of consumers, the Commission shall have the authority to set a specific metric as part of the performance metric process pursuant to Section 16-108.18. Such metric shall include a determination of the percentage of the shared savings to be returned to the customers and to the utility. Such percentage shall be set so as to incentivize the utility to make savings, while providing substantial benefits to consumers.