Bill Text: IL HB3037 | 2011-2012 | 97th General Assembly | Amended

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Bill Title: Amends the Public Utilities Act. Provides that an alternative gas supplier may petition the Illinois Commerce Commission to establish a standardized, uniform form of single billing for use throughout the State by all gas utilities. Makes other changes.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Failed) 2013-01-08 - Session Sine Die [HB3037 Detail]

Download: Illinois-2011-HB3037-Amended.html

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Sen. Don Harmon

Filed: 5/20/2011

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AMENDMENT TO HOUSE BILL 3037
AMENDMENT NO. ______. Amend House Bill 3037 by replacing
everything after the enacting clause with the following:
"Section 5. The Public Utilities Act is amended by changing
Section 19-145 and by adding Section 19-150 as follows:
(220 ILCS 5/19-145)
Sec. 19-145. Automatic adjustment clause tariff;
uncollectibles uncollectibles.
(a) A gas utility shall be permitted, at its election, to
recover through an automatic adjustment clause tariff the
incremental difference between its actual uncollectible amount
as set forth in Account 904 in the utility's most recent annual
Form 21 ILCC and the uncollectible amount included in the
utility's rates for the period reported in such annual Form 21
ILCC. The Commission may, in a proceeding to review a general
rate case filed subsequent to the effective date of the tariff

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established under this Section, prospectively switch, from
using the actual uncollectible amount set forth in Account 904
to using net write-offs in such tariff, but only if net
write-offs are also used to determine the utility's
uncollectible amount in rates. In the event the Commission
requires such a change, it shall be made effective at the
beginning of the first full calendar year after the new rates
approved in such proceeding are first placed in effect and an
adjustment shall be made, if necessary, to ensure the change
does not result in double-recovery or unrecovered
uncollectible amounts for any year. For purposes of this
Section, "uncollectible amount" means the expense set forth in
Account 904 of the utility's Form 21 ILCC or cost of net
write-offs as appropriate. In the event the utility's rates
change during the period of time reported in its most recent
annual Form 21 ILCC, the uncollectible amount included in the
utility's rates during such period of time for purposes of this
Section will be a weighted average, based on revenues earned
during such period by the utility under each set of rates, of
the uncollectible amount included in the utility's rates at the
beginning of such period and at the end of such period. This
difference may either be a charge or a credit to customers
depending on whether the uncollectible amount is more or less
than the uncollectible amount then included in the utility's
rates.
(b) The tariff may be established outside the context of a

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general rate case filing, and shall specify the terms of any
applicable audit. The Commission shall review and by order
approve, or approve as modified, the proposed tariff within 180
days after the date on which it is filed. Charges and credits
under the tariff shall be allocated to the appropriate customer
class or classes. In addition, customers who do not purchase
their gas supply from a gas utility and whose receivables are
not included in a purchase of receivable program under Section
19-150 shall not be charged by the utility for uncollectible
amounts associated with gas supply provided by the utility to
the utility's customers. Upon approval of the tariff, the
utility shall, based on the 2008 Form 21 ILCC, apply the
appropriate credit or charge based on the full year 2008
amounts for the remainder of the 2010 calendar year. Starting
with the 2009 Form 21 ILCC reporting period and each subsequent
period, the utility shall apply the appropriate credit or
charge over a 12-month period beginning with the June billing
period and ending with the May billing period, with the first
such billing period beginning June 2010.
(c) The approved tariff shall provide that the utility
shall file a petition with the Commission annually, no later
than August 31st, seeking initiation of an annual review to
reconcile all amounts collected with the actual uncollectible
amount in the prior period. As part of its review, the
Commission shall verify that the utility collects no more and
no less than its actual uncollectible amount in each applicable

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Form 21 ILCC reporting period. The Commission shall review the
prudence and reasonableness of the utility's actions to pursue
minimization and collection of uncollectibles which shall
include, at a minimum, the 6 enumerated criteria set forth in
this Section. The Commission shall determine any required
adjustments and may include suggestions for prospective
changes in current practices. Nothing in this Section or the
implementing tariffs shall affect or alter the gas utility's
existing obligation to pursue collection of uncollectibles or
the gas utility's right to disconnect service. A utility that
has in effect a tariff authorized by this Section shall pursue
minimization of and collection of uncollectibles through the
following activities, including but not limited to:
(1) identifying customers with late payments;
(2) contacting the customers in an effort to obtain
payment;
(3) providing delinquent customers with information
about possible options, including payment plans and
assistance programs;
(4) serving disconnection notices;
(5) implementing disconnections based on the level of
uncollectibles; and
(6) pursuing collection activities based on the level
of uncollectibles.
(d) Nothing in this Section shall be construed to require a
utility to immediately disconnect service for nonpayment.

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(Source: P.A. 96-33, eff. 7-10-09.)
(220 ILCS 5/19-150 new)
Sec. 19-150. Purchase of receivables.
(a) A gas utility with more than 100,000 customers that
offers transportation service to residential and small
commercial customers shall file a tariff pursuant to Article IX
of this Act within 6 months after the date of this amendatory
Act of the 97th General Assembly that provides qualifying
alternative gas suppliers with the option to have the gas
utility purchase their receivables for gas sales that are (1)
made to residential retail customers and small commercial
customers, as those terms are defined in Section 19-105 of this
Act, and (2) charged on the gas utility's bill. For purposes of
this Section, "qualifying alternative gas supplier" means an
alternative gas supplier that (i) is certified under Section
19-110 of this Act and (ii) includes its charges for gas sales
made in a gas utility's service area on that gas utility's bill
pursuant to Section 19-135 of this Act.
(b) Receivables for gas sales of qualifying alternative gas
suppliers that are charged on the gas utility's bill shall be
purchased by the gas utility at a discount rate of 1%. The rate
shall include 0.5% to be retained by the gas utility for
recovery of deemed intangible costs, and neither this 0.5%
portion of the rate, nor the deemed intangible costs, are
subject to review by the Commission. The remaining 0.5% of the

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1% discount rate shall be retained by the gas utility for
recovery of the utility's administrative costs and is subject
to periodic review by the Commission. Any portion of the 0.5%
intended for recovery of administrative costs that is found by
the Commission, after notice and hearing, to be in excess of
prudent and reasonable costs shall be refunded to all
customers, including customers of qualifying alternative gas
suppliers using purchase of receivables. For purposes of this
Section, "administrative costs" means all of the utility's
costs incurred in its administration of the purchase of
receivables program except for the deemed intangible costs.
(c) In making a just and reasonable determination on the
administrative costs, the Commission shall consider:
(1) the gas utility's reasonable start-up costs and
administrative costs associated with the gas utility's
purchase of receivables;
(2) the impact if used by the gas utility of an
automatic adjustment clause tariff pursuant to Section
19-145 of this Act to recover uncollectible expense; and
(3) whether the gas utility recovers uncollectible
expense from customers of qualifying alternative gas
suppliers through any of its existing rates or charges.
(d) Reasonable start-up costs and administrative costs
associated with the gas utility's purchase of receivables shall
in the first instance be recovered from qualifying alternative
gas suppliers through the utility's discount rate assessed by

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the utility on those qualifying alternative gas suppliers who
have the utility purchase their receivables. In order to
prevent barriers to suppliers' use of a purchase of receivables
program and ensure full cost recovery for the gas utility in a
timely manner, a portion of the gas utility's reasonable
start-up costs, subject to reasonable carrying charges as
determined by the Commission, may be deferred for later
recovery from qualifying alternative gas suppliers who have the
gas utility purchase their receivables through the discount
rate or a monthly per bill fee if such deferral is deemed to be
necessary by the Commission. The gas utility retains the rights
to (1) impose the same terms on retail customers supplied by
qualifying alternative gas suppliers with respect to credit and
collection, including requests for deposits, and (2)
disconnect the retail customers, if it does not receive payment
for its tariffed services or purchased receivables, in the same
manner that it would be permitted to if the retail customers
had purchased gas supply service from the gas utility.
(e) The tariff filed pursuant to this Section shall permit
the gas utility to recover from retail customers any
uncollected receivables that may arise as a result of the
purchase of receivables under this Section. The tariff filed
pursuant to this Section shall provide for recovery of the
prudently incurred costs associated with the provision of this
service pursuant to this Section and may also include other
just and reasonable terms and conditions. Nothing in this

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Section permits the double recovery of uncollectible expenses
from customers.
(f) Amounts collected by the utility attributable to the
0.5% portion of the discount rate under this Section for deemed
intangible costs shall not be used by the Commission to lower
the base rate revenue requirement of the utility in any
subsequent rate case. In order to limit the implications on
short-term debt of the utility, a utility may choose to delay
purchase of unpaid receivables until the bill due date. Other
than for initial implementation of the purchase of receivables
program, when so choosing, a utility shall remit payments to
the alternative gas suppliers no more than 2 business days
following the due date.
Section 99. Effective date. This Act takes effect upon
becoming law.".