(a) It is in the public interest to decouple electric utility sales and revenues, to mitigate the impact on utilities of energy savings goals, to mitigate a utility’s disincentive to promote energy efficiency, and to recognize changes in sales attributable to weather, electric vehicles and other electrification, adoption of distributed energy resources, and other volatile or uncontrollable factors without adversely affecting utility customers.
     (b) For the purposes of this Section, “reconciliation period” means a period beginning with the January monthly billing period and extending through the December monthly billing period of the same calendar year.
     (c) As set forth in subsection (d) of this Section, the Commission shall approve a tariff by which distribution revenues shall be compared annually to the revenue requirement or requirements approved by the Commission on which the rates giving rise to those revenues were based to prevent undercollections or overcollections. An electric utility shall submit an annual revenue balancing reconciliation report to the Commission reflecting the difference between the actual delivery service revenue and multi-year rate case revenue requirement for the applicable reconciliation and identifying the charges or credits to be applied thereafter. Such reconciliation and calculation of associated charges or credits shall be conducted on a customer class basis. The annual revenue balancing reconciliation report shall be filed with the Commission no later than March 20 of the year following a reconciliation period. The Commission may initiate a review of the revenue balancing reconciliation report each year to determine if any subsequent adjustment is necessary to align actual delivery service revenue and rate case revenue requirement. If the Commission elects to initiate such review, the Commission shall, after notice and hearing, enter an order approving, or approving as modified, such revenue balancing reconciliation report no later than 120 days after the utility files its report with the Commission. If the Commission does not initiate such a review, the revenue balancing reconciliation report and the identified charges or credits shall be deemed accepted and approved 120 days after the utility files the report and shall not be subject to review in any other proceeding. Any balancing adjustment shall take effect during the following January monthly billing period.
     (d) Each electric utility shall file a tariff in compliance with the provisions of this Section within 120 days after the effective date of this amendatory Act of the 102nd General Assembly. The Commission shall approve the tariff if it finds that it is consistent with the provisions of the Section. If the Commission does not so find, it shall approve the tariff with modification to conform it to the requirements of this Section or otherwise reject the tariff and explain how the utility can modify the tariff and refile to comply with the requirements of this Section.