Bill Text: IL SB1842 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Energy Assistance Act. Authorizes the Department of Commerce and Economic Opportunity to institute a year-round program (rather than program) to ensure the availability and affordability of heating and electric service to low income utility customers. Requires the Department to take all actions necessary to ensure year-round access to energy assistance by no later than July 1, 2024. Provides that, in setting the annual eligibility level for assistance under the Act, the Department shall not set a limit higher than 200% (rather than 150%) of the federal nonfarm poverty level as established by the federal Office of Management and Budget or 60% of the State median income for the current State fiscal year as established by the U.S. Department of Health and Human Services. Provides that the Department shall ensure that persons applying for energy assistance shall have the ability to establish eligibility through proof of enrollment in other State and federal assistance programs. Makes changes to provisions concerning the monthly Energy Assistance Charge assessed on customer accounts by public utilities, electric cooperatives, and municipal utilities. Provides that, beginning January 1, 2024 and for the next 10 years thereafter, electric and gas utilities shall annually contribute to the Supplemental Low-Income Energy Assistance Fund 5% net operating income based on their most recent rate order approved by the Illinois Commerce Commission. Makes changes concerning the Percentage of Income Payment Plan and other matters. Provides that an energy provider that receives payments from the Department from the Supplemental Low-Income Energy Assistance Fund, that provides confirmation to an administering agency that an applicant is a customer, shall ensure that the applicant customer is not disconnected from energy service while an application is pending.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-05-03 - Rule 3-9(a) / Re-referred to Assignments [SB1842 Detail]

Download: Illinois-2023-SB1842-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1842 Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED:
305 ILCS 20/2 from Ch. 111 2/3, par. 1402
305 ILCS 20/4 from Ch. 111 2/3, par. 1404
305 ILCS 20/5 from Ch. 111 2/3, par. 1405
305 ILCS 20/6 from Ch. 111 2/3, par. 1406
305 ILCS 20/13
305 ILCS 20/18
Amends the Energy Assistance Act. Authorizes the Department of Commerce and Economic Opportunity to institute a year-round program (rather than program) to ensure the availability and affordability of heating and electric service to low income utility customers. Requires the Department to take all actions necessary to ensure year-round access to energy assistance by no later than July 1, 2024. Provides that, in setting the annual eligibility level for assistance under the Act, the Department shall not set a limit higher than 200% (rather than 150%) of the federal nonfarm poverty level as established by the federal Office of Management and Budget or 60% of the State median income for the current State fiscal year as established by the U.S. Department of Health and Human Services. Provides that the Department shall ensure that persons applying for energy assistance shall have the ability to establish eligibility through proof of enrollment in other State and federal assistance programs. Makes changes to provisions concerning the monthly Energy Assistance Charge assessed on customer accounts by public utilities, electric cooperatives, and municipal utilities. Provides that, beginning January 1, 2024 and for the next 10 years thereafter, electric and gas utilities shall annually contribute to the Supplemental Low-Income Energy Assistance Fund 5% net operating income based on their most recent rate order approved by the Illinois Commerce Commission. Makes changes concerning the Percentage of Income Payment Plan and other matters. Provides that an energy provider that receives payments from the Department from the Supplemental Low-Income Energy Assistance Fund, that provides confirmation to an administering agency that an applicant is a customer, shall ensure that the applicant customer is not disconnected from energy service while an application is pending.
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A BILL FOR
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AN ACT concerning public aid.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Energy Assistance Act is amended by
changing Sections 2, 4, 5, 6, 13, and 18 as follows:
(305 ILCS 20/2) (from Ch. 111 2/3, par. 1402)
Sec. 2. Findings and Intent.
(a) The General Assembly finds that:
(1) the health, welfare, and prosperity of the people
of the State of Illinois require that all utility
customers citizens receive essential levels of heat and
electric service regardless of economic circumstance;
(2) public utilities and other entities providing such
services are entitled to receive proper payment for
services actually rendered;
(3) variability of Federal low income energy
assistance funding necessitates a State response to ensure
the continuity and the further development of energy
assistance and related policies and programs within
Illinois;
(4) energy assistance policies and programs in effect
in Illinois have benefited all Illinois utility customers
citizens, and should therefore be continued with the

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modifications provided herein; and
(5) low-income households are unable to afford
essential utility services and other necessities, such as
food, shelter, and medical care; the health and safety of
those who are unable to afford essential utility services
suffer when monthly payments for these services exceed a
reasonable percentage of the customer's household income;
costs of collecting past due bills and uncollectible
balances are reflected in rates paid by all ratepayers;
society benefits if essential utility services are
affordable and arrearages and disconnections are minimized
for those most in need.
(b) Consistent with its findings, the General Assembly
declares that it is the policy of the State that:
(1) a comprehensive low income energy assistance
policy and program should be established which
incorporates income assistance, home weatherization, and
other measures to ensure that utility customers citizens
have access to affordable energy services;
(2) the ability of public utilities and other entities
to receive just compensation for providing services should
not be jeopardized by this policy;
(3) resources applied in achieving this policy should
be coordinated and efficiently utilized through the
integration of public programs and through the targeting
of assistance; and

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(4) the State should utilize all appropriate and
available means to fund this program and, to the extent
possible, should identify and utilize sources of funding
which complement State tax revenues.
(Source: P.A. 96-33, eff. 7-10-09.)
(305 ILCS 20/4) (from Ch. 111 2/3, par. 1404)
Sec. 4. Energy Assistance Program.
(a) The Department of Commerce and Economic Opportunity is
hereby authorized to institute a year-round program to ensure
the availability and affordability of heating and electric
service to low income utility customers citizens. The
Department shall implement the program by rule promulgated
pursuant to the Illinois Administrative Procedure Act. The
program shall be consistent with the purposes and objectives
of this Act and with all other specific requirements provided
herein. The Department may enter into such contracts and other
agreements with local agencies as may be necessary for the
purpose of administering the energy assistance program. The
Department shall take all actions necessary to ensure
year-round access to energy assistance provided under this
Section by no later than July 1, 2024.
(b) Nothing in this Act shall be construed as altering or
limiting the authority conferred on the Illinois Commerce
Commission by the Public Utilities Act to regulate all aspects
of the provision of public utility service, including but not

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limited to the authority to make rules and adjudicate disputes
between utilities and customers related to eligibility for
utility service, deposits, payment practices, discontinuance
of service, and the treatment of arrearages owing for
previously rendered utility service.
(c) The Department of Commerce and Economic Opportunity is
authorized to institute an outreach program directed at
low-income minority heads of households and heads of
households age 60 or older. The Department shall implement the
program through rules adopted pursuant to the Illinois
Administrative Procedure Act. The program shall be consistent
with the purposes and objectives of this Act and with all other
specific requirements set forth in this subsection (c).
(Source: P.A. 95-331, eff. 8-21-07; 95-532, eff. 8-28-07;
96-154, eff. 1-1-10.)
(305 ILCS 20/5) (from Ch. 111 2/3, par. 1405)
Sec. 5. Policy Advisory Council.
(a) Within the Department of Commerce and Economic
Opportunity is created a Low Income Energy Assistance Policy
Advisory Council.
(b) The Council shall be chaired by the Director of
Commerce and Economic Opportunity or his or her designee. The
There shall be 19 members of the Low Income Energy Assistance
Policy Advisory Council shall include , including the
chairperson and the following members:

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(1) one member designated by the Illinois Commerce
Commission;
(2) (blank);
(2.5) one member designated by the Office of the
Attorney General;
(3) one member designated by the Illinois Energy
Association to represent electric public utilities serving
in excess of 1 million customers in this State;
(4) one member agreed upon by gas public utilities
that serve more than 500,000 and fewer than 1,500,000
customers in this State;
(5) one member agreed upon by gas public utilities
that serve 1,500,000 or more customers in this State;
(6) one member designated by the Illinois Energy
Association to represent combination gas and electric
public utilities;
(7) one member agreed upon by the Illinois Municipal
Electric Agency and the Association of Illinois Electric
Cooperatives;
(8) one member agreed upon by the Illinois Industrial
Energy Consumers;
(9) three members designated by the Department to
represent low income energy consumers;
(10) two members designated by the Illinois Community
Action Association to represent local agencies that assist
in the administration of this Act;

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(11) one member designated by the Citizens Utility
Board to represent residential energy consumers;
(12) one member designated by the Illinois Retail
Merchants Association to represent commercial energy
customers;
(13) one member designated by the Department to
represent independent energy providers; and
(14) three members designated by the Mayor of the City
of Chicago.
(c) Designated and appointed members shall serve 2 year
terms and until their successors are appointed and qualified.
The designating organization shall notify the chairperson of
any changes or substitutions of a designee within 10 business
days of a change or substitution. Members shall serve without
compensation, but may receive reimbursement for actual costs
incurred in fulfilling their duties as members of the Council.
(d) The Council shall have the following duties:
(1) to monitor the administration of this Act to
ensure effective, efficient, and coordinated program
development and implementation;
(2) to assist the Department in developing and
administering rules and regulations required to be
promulgated pursuant to this Act in a manner consistent
with the purpose and objectives of this Act;
(3) to facilitate and coordinate the collection and
exchange of all program data and other information needed

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by the Department and others in fulfilling their duties
pursuant to this Act;
(4) to advise the Department on the proper level of
support required for effective administration of the Act;
(5) to provide a written opinion concerning any
regulation proposed pursuant to this Act, and to review
and comment on any energy assistance or related plan
required to be prepared by the Department;
(6) to advise the Department on the use of funds
collected pursuant to Section 11 of this Act, and on any
changes to existing low income energy assistance programs
to make effective use of such funds, so long as such uses
and changes are consistent with the requirements of the
Act.
(Source: P.A. 97-916, eff. 8-9-12.)
(305 ILCS 20/6) (from Ch. 111 2/3, par. 1406)
Sec. 6. Eligibility, conditions of participation, and
energy assistance.
(a) Any person who is a resident of the State of Illinois
and whose household income is not greater than an amount
determined annually by the Department, in consultation with
the Policy Advisory Council, may apply for assistance pursuant
to this Act in accordance with regulations promulgated by the
Department. In setting the annual eligibility level, the
Department shall consider the amount of available funding and

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may not set a limit higher than 200% 150% of the federal
nonfarm poverty level as established by the federal Office of
Management and Budget or 60% of the State median income for the
current State fiscal year as established by the U.S.
Department of Health and Human Services; except that for the
period from the effective date of this amendatory Act of the
101st General Assembly through June 30, 2021, the Department
may establish limits not higher than 200% of that poverty
level. The Department, in consultation with the Policy
Advisory Council, may adjust the percentage of poverty level
annually in accordance with federal guidelines and based on
funding availability.
(b) Applicants who qualify for assistance pursuant to
subsection (a) of this Section shall, subject to appropriation
from the General Assembly and subject to availability of funds
to the Department, receive energy assistance as provided by
this Act. The Department, upon receipt of monies authorized
pursuant to this Act for energy assistance, shall commit funds
for each qualified applicant in an amount determined by the
Department. In determining the amounts of assistance to be
provided to or on behalf of a qualified applicant, the
Department shall ensure that the highest amounts of assistance
go to households with the greatest energy costs in relation to
household income. The Department shall include factors such as
energy costs, household size, household income, and region of
the State when determining individual household benefits. In

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setting assistance levels, the Department shall attempt to
provide assistance to approximately the same number of
households who participated in the 1991 Residential Energy
Assistance Partnership Program. Such assistance levels shall
be adjusted annually on the basis of funding availability and
energy costs. In promulgating rules for the administration of
this Section the Department shall assure that a minimum of 1/3
of funds available for benefits to eligible households with
the lowest incomes and that elderly households, households
with children under the age of 6 years old, and households with
persons with disabilities are offered a priority application
period.
(c) If the applicant is not a customer of record of an
energy provider for energy services or an applicant for such
service, such applicant shall receive a direct energy
assistance payment in an amount established by the Department
for all such applicants under this Act; provided, however,
that such an applicant must have rental expenses for housing
greater than 30% of household income.
(c-1) This subsection shall apply only in cases where: (1)
the applicant is not a customer of record of an energy provider
because energy services are provided by the owner of the unit
as a portion of the rent; (2) the applicant resides in housing
subsidized or developed with funds provided under the Rental
Housing Support Program Act or under a similar locally funded
rent subsidy program, or is the voucher holder who resides in a

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rental unit within the State of Illinois and whose monthly
rent is subsidized by the tenant-based Housing Choice Voucher
Program under Section 8 of the U.S. Housing Act of 1937; and
(3) the rental expenses for housing are no more than 30% of
household income. In such cases, the household may apply for
an energy assistance payment under this Act and the owner of
the housing unit shall cooperate with the applicant by
providing documentation of the energy costs for that unit. Any
compensation paid to the energy provider who supplied energy
services to the household shall be paid on behalf of the owner
of the housing unit providing energy services to the
household. The Department shall report annually to the General
Assembly on the number of households receiving energy
assistance under this subsection and the cost of such
assistance. The provisions of this subsection (c-1), other
than this sentence, are inoperative after August 31, 2012.
(d) If the applicant is a customer of an energy provider,
such applicant shall receive energy assistance in an amount
established by the Department for all such applicants under
this Act, such amount to be paid by the Department to the
energy provider supplying winter energy service to such
applicant. Such applicant shall:
(i) make all reasonable efforts to apply to any other
appropriate source of public energy assistance; and
(ii) sign a waiver permitting the Department to
receive income information from any public or private

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agency providing income or energy assistance and from any
employer, whether public or private.
(e) Any qualified applicant pursuant to this Section may
receive or have paid on such applicant's behalf an emergency
assistance payment to enable such applicant to obtain access
to winter energy services. Any such payments shall be made in
accordance with regulations of the Department.
(f) The Department may, if sufficient funds are available,
provide additional benefits to certain qualified applicants:
(i) for the reduction of past due amounts owed to
energy providers;
(ii) to assist the household in responding to
excessively high summer temperatures or energy costs.
Households containing elderly members, children, a person
with a disability, or a person with a medical need for
conditioned air shall receive priority for receipt of such
benefits; and
(iii) for the installation of energy conservation
measures, health and safety measures, healthy home
measures, home improvement measures to help alleviate
deferrals from weatherization activities, and renewable
energy retrofits.
(g) The Department shall ensure that persons applying for
assistance provided for under this Section shall have the
ability to establish eligibility through proof of enrollment
in other State and federal assistance programs with income

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eligibility requirements that do not exceed 60% of State
median income or 200% the federal nonfarm poverty level,
whichever is greater. The Department shall take all measures
necessary to coordinate State assistance program databases to
minimize applicant proof of eligibility requirements to enable
verification of participation in other means-tested programs
administered by other agencies, and in a manner that protects
the privacy of an individual's personal information provided
to such agencies.
(Source: P.A. 101-636, eff. 6-10-20; 102-16, eff. 6-17-21;
102-176, eff. 6-1-22; 102-699, eff. 4-19-22.)
(305 ILCS 20/13)
(Section scheduled to be repealed on January 1, 2025)
Sec. 13. Supplemental Low-Income Energy Assistance Fund.
(a) The Supplemental Low-Income Energy Assistance Fund is
hereby created as a special fund in the State Treasury. The
Supplemental Low-Income Energy Assistance Fund is authorized
to receive moneys from voluntary donations from individuals,
foundations, corporations, and other sources, moneys received
pursuant to Section 17, and, by statutory deposit, the moneys
collected pursuant to this Section. The Fund is also
authorized to receive voluntary donations from individuals,
foundations, corporations, and other sources. Subject to
appropriation, the Department shall use moneys from the
Supplemental Low-Income Energy Assistance Fund for: (i)

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payments to electric or gas public utilities, municipal
electric or gas utilities, and electric cooperatives on behalf
of their customers who are participants in the program
authorized by Sections 4 and 18 of this Act; (ii) the provision
of weatherization services, including, but not limited to, the
installation of energy conservation measures, health and
safety measures, healthy home measures, home improvement
measures to alleviate the deferrals of certain projects,
including, but not limited to, roofs and foundation repairs,
and renewable energy retrofits; and (iii) administration of
the Supplemental Low-Income Energy Assistance Fund. All other
deposits outside of the Energy Assistance Charge as set forth
in subsection (b) are not subject to the percentage
restrictions related to administrative and weatherization
expenses provided in this subsection. The yearly expenditures
for weatherization may not exceed 10% of the amount collected
during the year pursuant to this Section, except when unspent
funds from the Supplemental Low-Income Energy Assistance Fund
are reallocated from a previous year; any unspent balance of
the 10% weatherization allowance may be utilized for
weatherization expenses in the year they are reallocated. The
yearly administrative expenses of the Supplemental Low-Income
Energy Assistance Fund may not exceed 13% of the amount
collected during that year pursuant to this Section, except
when unspent funds from the Supplemental Low-Income Energy
Assistance Fund are reallocated from a previous year; any

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unspent balance of the 13% administrative allowance may be
utilized for administrative expenses in the year they are
reallocated. Of the 13% administrative allowance, no less than
8% shall be provided to Local Administrative Agencies for
administrative expenses.
(b) Notwithstanding the provisions of Section 16-111 of
the Public Utilities Act but subject to subsection (k) of this
Section, each public utility, electric cooperative, as defined
in Section 3.4 of the Electric Supplier Act, and municipal
utility, as referenced in Section 3-105 of the Public
Utilities Act, that is engaged in the delivery of electricity
or the distribution of natural gas within the State of
Illinois shall, effective January 1, 2021, assess each of its
customer accounts a monthly Energy Assistance Charge for the
Supplemental Low-Income Energy Assistance Fund. The delivering
public utility, municipal electric or gas utility, or electric
or gas cooperative for a self-assessing purchaser remains
subject to the collection of the fee imposed by this Section.
The monthly charge shall be as follows:
(1) Base Energy Assistance Charge per month on each
account for residential electrical service;
(2) Base Energy Assistance Charge per month on each
account for residential gas service;
(3) Ten times the Base Energy Assistance Charge per
month on each account for non-residential electric service
which had less than 10 megawatts of peak demand during the

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previous calendar year;
(4) Ten times the Base Energy Assistance Charge per
month on each account for non-residential gas service
which had distributed to it less than 4,000,000 therms of
gas during the previous calendar year;
(5) Seven hundred and fifty Three hundred and
seventy-five times the Base Energy Assistance Charge per
month on each account for non-residential electric service
which had 10 megawatts or greater of peak demand during
the previous calendar year; and
(6) Seven hundred and fifty Three hundred and
seventy-five times the Base Energy Assistance Charge per
month on each account for non-residential gas service
which had 4,000,000 or more therms of gas distributed to
it during the previous calendar year.
For any utility included in the Percentage of Income
Payment Plan (PIPP) program, the Base Energy Assistance Charge
shall be $0.96 per month beginning July 1, 2023, with $0.16 per
month of that amount being available to the utility for an
Arrearage Reduction Program. For any utility not included in
the PIPP program, the Base Energy Assistance Charge shall be
$0.80 per month beginning July 1, 2023.
The Base Energy Assistance Charge shall be $0.48 per month
for the calendar year beginning January 1, 2022 and shall
increase by $0.16 per month for any calendar year, provided no
less than 80% of the previous State fiscal year's available

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Supplemental Low-Income Energy Assistance Fund funding was
exhausted. The maximum Base Energy Assistance Charge shall not
exceed $0.96 per month for any calendar year.
The incremental change to such charges imposed by Public
Act 99-933 and this amendatory Act of the 102nd General
Assembly shall not (i) be used for any purpose other than to
directly assist customers and (ii) be applicable to utilities
serving less than 100,000 customers in Illinois on January 1,
2021. The incremental change to such charges imposed by this
amendatory Act of the 102nd General Assembly are intended to
increase utilization of the Percentage of Income Payment Plan
(PIPP or PIP Plan) and the Low Income Home Energy Assistance
Program (LIHEAP) and shall be applied such that PIP Plan and
LIHEAP enrollment is at least doubled, as compared to 2020
enrollment, by 2024.
In addition, electric and gas utilities have committed,
and shall contribute, beginning on January 1, 2024 and
continuing for 10 years thereafter, an annual contribution of
5% of net operating income based on their most recent rate
order approved by the Illinois Commerce Commission to the
Supplemental Low-Income Energy Assistance Fund. a one-time
payment of $22 million to the Fund, within 10 days after the
effective date of the tariffs established pursuant to Sections
16-111.8 and 19-145 of the Public Utilities Act to be used for
the Department's cost of implementing the programs described
in Section 18 of this amendatory Act of the 96th General

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Assembly, the Arrearage Reduction Program described in Section
18, and the programs described in Section 8-105 of the Public
Utilities Act. If a utility elects not to file a rider within
90 days after the effective date of this amendatory Act of the
96th General Assembly, then the contribution from such utility
shall be made no later than February 1, 2010.
(c) For purposes of this Section:
(1) "residential electric service" means electric
utility service for household purposes delivered to a
dwelling of 2 or fewer units which is billed under a
residential rate, or electric utility service for
household purposes delivered to a dwelling unit or units
which is billed under a residential rate and is registered
by a separate meter for each dwelling unit;
(2) "residential gas service" means gas utility
service for household purposes distributed to a dwelling
of 2 or fewer units which is billed under a residential
rate, or gas utility service for household purposes
distributed to a dwelling unit or units which is billed
under a residential rate and is registered by a separate
meter for each dwelling unit;
(3) "non-residential electric service" means electric
utility service which is not residential electric service;
and
(4) "non-residential gas service" means gas utility
service which is not residential gas service.

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(d) Within 30 days after the effective date of this
amendatory Act of the 96th General Assembly, each public
utility engaged in the delivery of electricity or the
distribution of natural gas shall file with the Illinois
Commerce Commission tariffs incorporating the Energy
Assistance Charge in other charges stated in such tariffs,
which shall become effective no later than the beginning of
the first billing cycle following such filing.
(e) The Energy Assistance Charge assessed by electric and
gas public utilities shall be considered a charge for public
utility service.
(f) By the 20th day of the month following the month in
which the charges imposed by the Section were collected, each
public utility, municipal utility, and electric cooperative
shall remit to the Department of Revenue all moneys received
as payment of the Energy Assistance Charge on a return
prescribed and furnished by the Department of Revenue showing
such information as the Department of Revenue may reasonably
require; provided, however, that a utility offering an
Arrearage Reduction Program or Supplemental Arrearage
Reduction Program pursuant to Section 18 of this Act shall be
entitled to net those amounts necessary to fund and recover
the costs of such Programs as authorized by that Section that
is no more than the incremental change in such Energy
Assistance Charge authorized by Public Act 96-33. If a
customer makes a partial payment, a public utility, municipal

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utility, or electric cooperative may elect either: (i) to
apply such partial payments first to amounts owed to the
utility or cooperative for its services and then to payment
for the Energy Assistance Charge or (ii) to apply such partial
payments on a pro-rata basis between amounts owed to the
utility or cooperative for its services and to payment for the
Energy Assistance Charge.
If any payment provided for in this Section exceeds the
distributor's liabilities under this Act, as shown on an
original return, the Department may authorize the distributor
to credit such excess payment against liability subsequently
to be remitted to the Department under this Act, in accordance
with reasonable rules adopted by the Department. If the
Department subsequently determines that all or any part of the
credit taken was not actually due to the distributor, the
distributor's discount shall be reduced by an amount equal to
the difference between the discount as applied to the credit
taken and that actually due, and that distributor shall be
liable for penalties and interest on such difference.
(g) The Department of Revenue shall deposit into the
Supplemental Low-Income Energy Assistance Fund all moneys
remitted to it in accordance with subsection (f) of this
Section. The utilities shall coordinate with the Department to
establish an equitable and practical methodology for
implementing this subsection (g) beginning with the 2010
program year.

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(h) On or before December 31, 2002, the Department shall
prepare a report for the General Assembly on the expenditure
of funds appropriated from the Low-Income Energy Assistance
Block Grant Fund for the program authorized under Section 4 of
this Act.
(i) The Department of Revenue may establish such rules as
it deems necessary to implement this Section.
(j) The Department of Commerce and Economic Opportunity
may establish such rules as it deems necessary to implement
this Section.
(k) The charges imposed by this Section shall only apply
to customers of municipal electric or gas utilities and
electric or gas cooperatives if the municipal electric or gas
utility or electric or gas cooperative makes an affirmative
decision to impose the charge. If a municipal electric or gas
utility or an electric cooperative makes an affirmative
decision to impose the charge provided by this Section, the
municipal electric or gas utility or electric cooperative
shall inform the Department of Revenue in writing of such
decision when it begins to impose the charge. If a municipal
electric or gas utility or electric or gas cooperative does
not assess this charge, the Department may not use funds from
the Supplemental Low-Income Energy Assistance Fund to provide
benefits to its customers under the program authorized by
Section 4 of this Act.
In its use of federal funds under this Act, the Department

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may not cause a disproportionate share of those federal funds
to benefit customers of systems which do not assess the charge
provided by this Section.
This Section is repealed on January 1, 2025 unless renewed
by action of the General Assembly.
(Source: P.A. 102-16, eff. 6-17-21; 102-176, eff. 6-1-22;
102-671, eff. 11-30-21; 102-673, eff. 11-30-21; 102-699, eff.
4-19-22.)
(305 ILCS 20/18)
Sec. 18. Financial assistance; payment plans.
(a) The Percentage of Income Payment Plan (PIPP or PIP
Plan) is hereby created as a mandatory bill payment assistance
program for low-income residential customers of utilities
serving more than 100,000 retail customers as of January 1,
2021. The PIP Plan will:
(1) bring participants' gas and electric bills into
the range of affordability;
(2) provide incentives for participants to make timely
payments;
(3) encourage participants to reduce usage and
participate in conservation and energy efficiency measures
that reduce the customer's bill and payment requirements;
(4) identify participants whose homes are most in need
of weatherization; and
(5) endeavor to maximize participation and spend at

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least 80% of the funding available for the year.
(b) For purposes of this Section:
(1) "LIHEAP" means the energy assistance program
established under the Illinois Energy Assistance Act and
the Low-Income Home Energy Assistance Act of 1981.
(2) "Plan participant" is an eligible participant who
is also eligible for the PIPP and who will receive either a
percentage of income payment credit under the PIPP
criteria set forth in this Act or a benefit pursuant to
Section 4 of this Act. Plan participants are a subset of
eligible participants.
(3) "Pre-program arrears" means the amount a plan
participant owes for gas or electric service at the time
the participant is determined to be eligible for the PIPP
or the program set forth in Section 4 of this Act.
(4) "Eligible participant" means any person who has
applied for, been accepted and is receiving residential
service from a gas or electric utility and who is also
eligible for LIHEAP or otherwise satisfies the eligibility
criteria set forth in paragraph (1) of subsection (c).
(c) The PIP Plan shall be administered as follows:
(1) The Department shall coordinate with Local
Administrative Agencies (LAAs), to determine eligibility
for the Illinois Low Income Home Energy Assistance Program
(LIHEAP) pursuant to the Energy Assistance Act, provided
that eligible income shall be no more than 200% 150% of the

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poverty level or 60% of the State median income, except
that for the period from the effective date of this
amendatory Act of the 101st General Assembly through June
30, 2021, eligible income shall be no more than 200% of the
poverty level. Applicants will be screened to determine
whether the applicant's projected payments for electric
service or natural gas service over a 12-month period
exceed the criteria established in this Section. The
Department, in consultation with the Policy Advisory
Council, may adjust the percentage of poverty level
annually to determine income eligibility. To maintain the
financial integrity of the program, the Department may
limit eligibility to households with income below 125% of
the poverty level.
(2) The Department shall establish the percentage of
income formula to determine the amount of a monthly credit
for participants with eligible income based on poverty
level. Credits will be applied to PIP Plan participants'
utility bills based on the portion of the bill that is the
responsibility of the participant provided that the
percentage shall be no more than a total of 6% of the
relevant income for gas and electric utility bills
combined, but in any event no less than $10 per month,
unless the household does not pay directly for heat, in
which case its payment shall be 2.4% of income but in any
event no less than $5 per month. The Department, in

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consultation with the Policy Advisory Council, may adjust
such monthly credit amounts annually and may establish a
minimum credit amount based on the cost of administering
the program and may deny credits to otherwise eligible
participants if the cost of administering the credit
exceeds the actual amount of any monthly credit to a
participant. If the participant takes both gas and
electric service, 50% of the credit shall be allocated to
the entity that provides the participant's primary energy
supply for heating. Each participant shall enter into a
levelized payment plan for, as applicable, gas and
electric service and such plans shall be implemented by
the utility so that a participant's usage and required
payments are reviewed and adjusted regularly, but no more
frequently than quarterly. Nothing in this Section is
intended to prohibit a customer, who is otherwise eligible
for LIHEAP, from participating in the program described in
Section 4 of this Act. Eligible participants who receive
such a benefit shall be considered plan participants and
shall be eligible to participate in the Arrearage
Reduction Program described in item (5) of this subsection
(c).
(3) The Department shall remit, through the LAAs, to
the utility or participating alternative supplier that
portion of the plan participant's bill that is not the
responsibility of the participant. In the event that the

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Department fails to timely remit payment to the utility,
the utility shall be entitled to recover all costs related
to such nonpayment through the automatic adjustment clause
tariffs established pursuant to Section 16-111.8 and
Section 19-145 of the Public Utilities Act. For purposes
of this item (3) of this subsection (c), payment is due on
the date specified on the participant's bill. The
Department, the Department of Revenue and LAAs shall adopt
processes that provide for the timely payment required by
this item (3) of this subsection (c).
(4) A plan participant is responsible for all actual
charges for utility service in excess of the PIPP credit.
Notwithstanding this requirement, any actual charges
incurred by plan participants still owed at the time of a
PIP program annual benefit reconciliation that exceed the
plan benefit cap provided for by the Department shall be
categorized as pre-program arrears in the following
calendar year and not be included in the calculation of
the levelized payment plan. Pre-program arrears that are
included in the Arrearage Reduction Program described in
item (5) of this subsection (c) shall not be included in
the calculation of the levelized payment plan. Emergency
or crisis assistance payments shall not affect the amount
of any PIPP credit to which a participant is entitled.
(5) Electric and gas utilities subject to this Section
shall implement an Arrearage Reduction Program (ARP) for

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plan participants as follows: for each month that a plan
participant timely pays his or her utility bill, the
utility shall apply a credit to a portion of the
participant's pre-program arrears, if any, equal to
one-twelfth of such arrearage provided that the total
amount of arrearage credits shall equal no more than
$1,000 annually for each participant for gas and no more
than $1,000 annually for each participant for electricity.
In the third year of the PIPP, the Department, in
consultation with the Policy Advisory Council established
pursuant to Section 5 of this Act, shall determine by rule
an appropriate per participant total cap on such amounts,
if any. Those plan participants participating in the ARP
shall not be subject to the imposition of any additional
late payment fees on pre-program arrears covered by the
ARP. In all other respects, the utility shall bill and
collect the monthly bill of a plan participant pursuant to
the same rules, regulations, programs and policies as
applicable to residential customers generally.
Participation in the Arrearage Reduction Program shall be
limited to the maximum amount of funds available as set
forth in subsection (f) of Section 13 of this Act. In the
event any donated funds under Section 13 of this Act are
specifically designated for the purpose of funding the
ARP, the Department shall remit such amounts to the
utilities upon verification that such funds are needed to

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fund the ARP. Nothing in this Section shall preclude a
utility from continuing to implement, and apply credits
under, an ARP in the event that the PIPP or LIHEAP is
suspended due to lack of funding such that the plan
participant does not receive a benefit under either the
PIPP or LIHEAP.
(5.5) In addition to the ARP described in paragraph
(5) of this subsection (c), utilities may also implement a
Supplemental Arrearage Reduction Program (SARP) for
eligible participants who are not able to become plan
participants due to PIPP timing or funding constraints. If
a utility elects to implement a SARP, it shall be
administered as follows: for each month that a SARP
participant timely pays his or her utility bill, the
utility shall apply a credit to a portion of the
participant's pre-program arrears, if any, equal to
one-twelfth of such arrearage, provided that the utility
may limit the total amount of arrearage credits to no more
than $1,000 annually for each participant for gas and no
more than $1,000 annually for each participant for
electricity. SARP participants shall not be subject to the
imposition of any additional late payment fees on
pre-program arrears covered by the SARP. In all other
respects, the utility shall bill and collect the monthly
bill of a SARP participant under the same rules,
regulations, programs, and policies as applicable to

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residential customers generally. Participation in the SARP
shall be limited to the maximum amount of funds available
as set forth in subsection (f) of Section 13 of this Act.
In the event any donated funds under Section 13 of this Act
are specifically designated for the purpose of funding the
SARP, the Department shall remit such amounts to the
utilities upon verification that such funds are needed to
fund the SARP.
(6) The Department may terminate a plan participant's
eligibility for the PIP Plan upon notification by the
utility that the participant's monthly utility payment is
more than 75 days past due. One-twelfth of a customer's
arrearage shall be deducted from the total arrearage owed
for each on-time payment made by the customer.
(7) The Department, in consultation with the Policy
Advisory Council, may adjust the number of PIP Plan
participants annually, if necessary, to match the
availability of funds. Any plan participant who qualifies
for a PIPP credit under a utility's PIPP shall be entitled
to participate in and receive a credit under such
utility's ARP for so long as such utility has ARP funds
available, regardless of whether the customer's
participation under another utility's PIPP or ARP has been
curtailed or limited because of a lack of funds.
(8) The Department shall fully implement the PIPP at
the earliest possible date it is able to effectively

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administer the PIPP. Within 90 days of the effective date
of this amendatory Act of the 96th General Assembly, the
Department shall, in consultation with utility companies,
participating alternative suppliers, LAAs and the Illinois
Commerce Commission (Commission), issue a detailed
implementation plan which shall include detailed testing
protocols and analysis of the capacity for implementation
by the LAAs and utilities. Such consultation process also
shall address how to implement the PIPP in the most
cost-effective and timely manner, and shall identify
opportunities for relying on the expertise of utilities,
LAAs and the Commission. Following the implementation of
the testing protocols, the Department shall issue a
written report on the feasibility of full or gradual
implementation. The PIPP shall be fully implemented by
September 1, 2011, but may be phased in prior to that date.
(9) As part of the screening process established under
item (1) of this subsection (c), the Department and LAAs
shall assess whether any energy efficiency or demand
response measures are available to the plan participant at
no cost, and if so, the participant shall enroll in any
such program for which he or she is eligible. The LAAs
shall assist the participant in the applicable enrollment
or application process.
(10) Each alternative retail electric and gas supplier
serving residential customers shall elect whether to

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participate in the PIPP or ARP described in this Section.
Any such supplier electing to participate in the PIPP
shall provide to the Department such information as the
Department may require, including, without limitation,
information sufficient for the Department to determine the
proportionate allocation of credits between the
alternative supplier and the utility. If a utility in
whose service territory an alternative supplier serves
customers contributes money to the ARP fund which is not
recovered from ratepayers, then an alternative supplier
which participates in ARP in that utility's service
territory shall also contribute to the ARP fund in an
amount that is commensurate with the number of alternative
supplier customers who elect to participate in the
program.
(11) The PIPP shall be designed and implemented each
year to maximize participation and spend at least 80% of
the funding available for the year.
(d) The Department, in consultation with the Policy
Advisory Council, shall develop and implement a program to
educate customers about the PIP Plan and about their rights
and responsibilities under the percentage of income component.
The Department, in consultation with the Policy Advisory
Council, shall establish a process that LAAs shall use to
contact customers in jeopardy of losing eligibility due to
late payments. The Department shall ensure that LAAs are

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adequately funded to perform all necessary educational tasks.
(e) The PIPP shall be administered in a manner which
ensures that credits to plan participants will not be counted
as income or as a resource in other means-tested assistance
programs for low-income households or otherwise result in the
loss of federal or State assistance dollars for low-income
households.
(f) In order to ensure that implementation costs are
minimized, the Department and utilities shall work together to
identify cost-effective ways to transfer information
electronically and to employ available protocols that will
minimize their respective administrative costs as follows:
(1) The Commission may require utilities to provide
such information on customer usage and billing and payment
information as required by the Department to implement the
PIP Plan and to provide written notices and communications
to plan participants.
(2) Each utility and participating alternative
supplier shall file annual reports with the Department and
the Commission that cumulatively summarize and update
program information as required by the Commission's rules.
The reports shall track implementation costs and contain
such information as is necessary to evaluate the success
of the PIPP.
(2.5) The Department shall annually prepare and submit
a report to the General Assembly, the Commission, and the

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Policy Advisory Council that identifies the following
amounts for the most recently completed year: total monies
collected under subsection (b) of Section 13 of this Act
for all PIPPs implemented in the State; monies allocated
to each utility for implementation of its PIPP; and monies
allocated to each utility for other purposes, including a
description of each of those purposes. The Commission
shall publish the report on its website.
(3) The Department and the Commission shall have the
authority to promulgate rules and regulations necessary to
execute and administer the provisions of this Section.
(g) Each utility shall be entitled to recover reasonable
administrative and operational costs incurred to comply with
this Section from the Supplemental Low Income Energy
Assistance Fund. The utility may net such costs against monies
it would otherwise remit to the Funds, and each utility shall
include in the annual report required under subsection (f) of
this Section an accounting for the funds collected. An energy
provider that receives payments from the Department from the
Supplemental Low-Income Energy Assistance Fund, that provides
confirmation to an administering agency that an applicant is a
customer, shall ensure that the applicant customer is not
disconnected from energy service while an application is
pending.
(Source: P.A. 101-636, eff. 6-10-20; 102-176, eff. 6-1-22.)