SB1603 96TH GENERAL ASSEMBLY

LRB096 09062 MJR 19203 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB1603

Introduced 2/19/2009, by Sen. Kimberly A. Lightford

SYNOPSIS AS INTRODUCED:

220 ILCS 5/16-111.7 new
220 ILCS 5/16-111.9 new

Amends the Public Utilities Act. Contains provisions concerning financial assistance and payment plans that are approved by the Commission for low-income customers. Specifies the requirements for the financial assistance and payment plans. Provides that an electric utility shall be permitted to recover all of its uncollectibles through an automatic adjustment clause tariff. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning utilities.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Public Utilities Act is amended by adding Sections 16-111.7 and 16-111.9 as follows:

(220 ILCS 5/16-111.7 new)

Sec. 16-111.7. Financial assistance; payment plans.

(a) Notwithstanding any other provision of this Act, an electric utility may offer programs that are approved by the Commission specifically designed to provide bill payment assistance to low-income customers. The programs may be designed in a number of ways, including, but not limited to, flat grants, forgiveness of past due amounts in exchange for regular payments, percentage of income payments, energy efficiency and demand-response measures, and education. After receiving a request from an electric utility for the approval of a proposed program pursuant to this Section, the Commission shall render its decision within 120 days. If no decision is rendered within 120 days, then the request shall be deemed to be approved.

(b) If an electric utility elects to offer programs under this Section, the utility must first offer a Percentage of Income Payment Plan (PIP Plan) that has been approved by the Commission and that contains the following components:

(1) The electric utility shall coordinate with the Department of Healthcare and Family Services (Department) to identify eligible participants, which shall be based on the same criteria established by the Department to determine eligibility for the Illinois Low Income Home Energy Assistance Program (LIHEAP) pursuant to the Energy Assistance Act.

(2) The electric utility, in conjunction with the Department, shall establish the percentage of income formula that will be applied to PIP Plan participants' electric utility bills to determine the portion of the bill that is the responsibility of the participant.

(3) The Department shall remit to the electric utility that portion of the PIP Plan participant's bill that is not the responsibility of the participant; in the event that the Department fails to remit payment to the electric utility as required by this Section, the utility shall be entitled to recover all costs related to nonpayment through the automatic adjustment clause tariff established pursuant to Section 16-111.9 of this Act, and the limitations of subsection (c) of this Section shall not apply.

(4) For each month that a PIP Plan participant pays its electric utility bill on time, the electric utility shall apply a credit to a portion of the participant's arrearage, if any, and costs shall be recoverable by the utility pursuant to subsection (c) of this Section.

(5) A PIP Plan participant shall no longer be eligible for the PIP Plan if the participant fails to make an on time payment in any given month.

(6) Subsequent to Commission approval, the electric utility shall have the discretion to adjust the number of program participants, the percentage of income formula, and the amount of arrearages credits in order to add additional programs or control annual expenditures under this Section.

(c) An electric utility shall recover all of the costs it incurs in offering programs approved by the Commission pursuant to this Section, including all start-up and administrative costs, provided that the costs do not exceed $10 million annually. All costs incurred under this Section shall be recovered from the electric utility's retail customers through an automatic adjustment clause tariff filed with and approved by the Commission.

(d) In the event an electric utility offering programs under this Section elects to discontinue a program, it shall provide 60 days notice both (i) to program participants through a bill insert and (ii) to the Commission through an informational filing.

(220 ILCS 5/16-111.9 new)

Sec. 16-111.9. Automatic adjustment clause tariff; uncollectibles. An electric utility shall be permitted to recover all of its uncollectibles through an automatic adjustment clause tariff. The tariff shall be established outside the context of a general rate case. An electric utility may file a compliant tariff within 45 days after the effective date of this amendatory Act of the 96th General Assembly. The Commission shall conclude any investigation of the tariff within 45 days after the date on which it is filed. An approved tariff shall be applicable beginning with the utility's next monthly billing period commencing at least 15 days after the date of approval. Thereafter, the Commission shall annually initiate a review to reconcile any amounts collected with actual uncollectibles in the prior annual period and to determine any required adjustment to account for any difference in those amounts. Nothing in this Section or the implementing tariffs shall affect or alter the electric utility's existing obligation to pursue collection of uncollectibles or the electric utility's right to disconnect service.

Section 99. Effective date. This Act takes effect upon becoming law.