HB5683 Summary

• Amends the Public Utilities Act to establish infrastructure investment and performance-based formula rate provisions for participating utilities (electric utilities and combination utilities serving over 1 million customers in Illinois).

• Requires participating utilities to invest estimated $1.3 billion over 5-10 years in electric system upgrades, modernization projects, and training facilities, plus contribute $10 million annually (non-recoverable) to energy low-income support programs.

• Establishes performance-based formula rate tariff allowing utilities to recover delivery services costs through annual updates, with cost of equity calculated as average 30-year U.S. Treasury bond yields plus 580 basis points.

• Creates performance metrics for 10-year period including service reliability improvements, reduced estimated bills, and reduced uncollectible expenses, with financial penalties (up to 38 basis points reduction in return on equity) for failing to achieve annual goals.

• Terminates performance-based formula rate eligibility if average residential rates exceed 2.5% annual increase through May 31, 2014, or automatically after December 31, 2017 unless extended; combination utilities losing any annual performance goal become ineligible to update the tariff.