Bill Text: IL HB4300 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Public Utilities Act. Provides that the Illinois Commerce Commission, upon petition by a public utility (rather than an electric or gas public utility), and after notice and hearing, may authorize for some or all of the regulated services of that utility, the implementation of one or more alternative rate programs. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-02-18 - Rule 19(a) / Re-referred to Rules Committee [HB4300 Detail]

Download: Illinois-2021-HB4300-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB4300 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
220 ILCS 5/9-244 from Ch. 111 2/3, par. 9-244
Amends the Public Utilities Act. Provides that the Illinois Commerce Commission, upon petition by a public utility (rather than an electric or gas public utility), and after notice and hearing, may authorize for some or all of the regulated services of that utility, the implementation of one or more alternative rate programs. Effective immediately.
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A BILL FOR
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AN ACT concerning regulation.
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 changing
Section 9-244 as follows:
(220 ILCS 5/9-244) (from Ch. 111 2/3, par. 9-244)
Sec. 9-244. Alternative rate regulation.
(a) Notwithstanding any of the ratemaking provisions of
this Article IX or other Sections of this Act, or the
Commission's rules that are deemed to require rate of return
regulation, and except as provided in Article XVI, the
Commission, upon petition by a an electric or gas public
utility, and after notice and hearing, may authorize for some
or all of the regulated services of that utility, the
implementation of one or more programs consisting of (i)
alternatives to rate of return regulation, including but not
limited to earnings sharing, rate moratoria, price caps or
flexible rate options, or (ii) other regulatory mechanisms
that reward or penalize the utility through the adjustment of
rates based on utility performance. In the case of other
regulatory mechanisms that reward or penalize utilities
through the adjustment of rates based on utility performance,
the utility's performance shall be compared to standards

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established in the Commission order authorizing the
implementation of other regulatory mechanisms. The Commission
is specifically authorized to approve in response to such
petitions different forms of alternatives to rate of return
regulation or other regulatory mechanisms to fit the
particular characteristics and requirements of different
utilities and their service territories.
(b) The Commission shall approve the program if it finds,
based on the record, that:
(1) the program is likely to result in rates lower
than otherwise would have been in effect under traditional
rate of return regulation for the services covered by the
program and that are consistent with the provisions of
Section 9-241 of the Act; and
(2) the program is likely to result in other
substantial and identifiable benefits that would be
realized by customers served under the program and that
would not be realized in the absence of the program; and
(3) the utility is in compliance with applicable
Commission standards for reliability and implementation of
the program is not likely to adversely affect service
reliability; and
(4) implementation of the program is not likely to
result in deterioration of the utility's financial
condition; and
(5) implementation of the program is not likely to

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adversely affect the development of competitive markets;
and
(6) the electric utility is in compliance with its
obligation to offer delivery services pursuant to Article
XVI; and
(7) the program includes annual reporting requirements
and other provisions that will enable the Commission to
adequately monitor its implementation of the program; and
(8) the program includes provisions for an equitable
sharing of any net economic benefits between the utility
and its customers to the extent the program is likely to
result in such benefits.
The Commission shall issue its order approving or denying
the program no later than 270 days from the date of filing of
the petition. Any program approved under this Section shall
continue in effect until revised, modified or terminated by
order of the Commission as provided in this Section. If the
Commission cannot make the above findings, it shall
specifically identify in its order the reason or reasons why
the proposed program does not meet the above criteria, and
shall identify any modifications supported in the record, if
any, that would cause the program to satisfy the above
criteria. In the event the order identifies any such
modifications it shall not become a final order subject to
petitions for rehearing until 15 days after service of same by
the Commission. The utility shall have 14 days following the

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date of service of the order to notify the Commission in
writing whether it will accept any modifications so identified
in the order or whether it has elected not to proceed with the
program. If the utility notifies the Commission that it will
accept such modifications, the Commission shall issue an
amended order, without further hearing, within 14 days
following such notification, approving the program as modified
and such order shall be considered to be a final order of the
Commission subject to petitions for rehearing and appellate
procedures.
(c) The Commission shall open a proceeding to review any
program approved under subsection (b) 2 years after the
program is first implemented to determine whether the program
is meeting its objectives, and may make such revisions, no
later than 270 days after the proceeding is opened, as are
necessary to result in the program meeting its objectives. A
utility may elect to discontinue any program so revised. The
Commission shall not otherwise direct a utility to revise,
modify or cancel a program during its term of operation,
except as found necessary, after notice and hearing, to ensure
system reliability.
(d) Upon its own motion or complaint, the Commission may
investigate whether the utility is implementing an approved
program in accordance with the Commission order approving the
program. If the Commission finds after notice and hearing,
that the utility is not implementing the program in accordance

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with such order, the Commission shall order the utility to
comply with the terms of the order. Complaints relating to the
program filed under Section 9-250 of this Act, alleging that
the program does not comply with that Section or the
requirements of subsection (b) shall not be filed sooner than
one year after the review provided for in subsection (c). The
complainant shall bear the burden of proving the allegations
in the complaint.
(e) The Commission shall not be authorized to allow or
order an electric utility to place a program into effect,
pursuant to this Section, applicable to delivery services
provided by a utility, unless the utility already has in
effect a delivery services tariff conforming to the
requirements of Section 16-108 of this Act.
(f) The Commission may, upon subsequent petition by the
utility, after notice and hearing, authorize the extension of
a program that was previously approved pursuant to this
Section or approve revisions or modifications of such a
program to be effective, after the initially approved program
has been in effect. Any such petition seeking an extension,
revision, or modification of such a program must be
accompanied by an evaluation of the program addressing the
criteria set forth in subsection (b) hereof. The utility's
petition may, but is not required to, specify a termination
date for the extended, revised or modified program. The
Commission may require a review of the extended, revised, or

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modified program at such intervals as may be ordered by the
Commission, for the purpose of determining whether the program
should be revised, modified, or terminated.
(Source: P.A. 89-194, eff. 1-1-96; 90-561, eff. 12-16-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.