Bill Text: IL SB2881 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Public Utilities Act. In provisions concerning the purchase of an alternative retail electric suppliers' receivables, including uncollectible receivables by a purchasing electric utility, provides that the purchasing electric utility shall not purchase receivables that are priced higher than the price obtained for consumers through the procurement process set out in the Public Utilities Act.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2016-04-08 - Rule 3-9(a) / Re-referred to Assignments [SB2881 Detail]

Download: Illinois-2015-SB2881-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 SB2881 Introduced 2/17/2016, by Sen. Daniel Biss SYNOPSIS AS INTRODUCED:
220 ILCS 5/16-118
Amends the Public Utilities Act. In provisions concerning the purchase of an alternative retail electric suppliers' receivables, including uncollectible receivables by a purchasing electric utility, provides that the purchasing electric utility shall not purchase receivables that are priced higher than the price obtained for consumers through the procurement process set out in the Public Utilities Act.
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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 16-118 as follows:
(220 ILCS 5/16-118)
Sec. 16-118. Services provided by electric utilities to
alternative retail electric suppliers.
(a) It is in the best interest of Illinois energy consumers
to promote fair and open competition in the provision of
electric power and energy and to prevent anticompetitive
practices in the provision of electric power and energy.
Therefore, to the extent an electric utility provides electric
power and energy or delivery services to alternative retail
electric suppliers and such services are not subject to the
jurisdiction of the Federal Energy Regulatory Commission, and
are not competitive services, they shall be provided through
tariffs that are filed with the Commission, pursuant to Article
IX of this Act. Each electric utility shall permit alternative
retail electric suppliers to interconnect facilities to those
owned by the utility provided they meet established standards
for such interconnection, and may provide standby or other
services to alternative retail electric suppliers. The

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alternative retail electric supplier shall sign a contract
setting forth the prices, terms and conditions for
interconnection with the electric utility and the prices, terms
and conditions for services provided by the electric utility to
the alternative retail electric supplier in connection with the
delivery by the electric utility of electric power and energy
supplied by the alternative retail electric supplier.
(b) An electric utility shall file a tariff pursuant to
Article IX of the Act that would allow alternative retail
electric suppliers or electric utilities other than the
electric utility in whose service area retail customers are
located to issue single bills to the retail customers for both
the services provided by such alternative retail electric
supplier or other electric utility and the delivery services
provided by the electric utility to such customers. The tariff
filed pursuant to this subsection shall (i) require partial
payments made by retail customers to be credited first to the
electric utility's tariffed services, (ii) impose commercially
reasonable terms with respect to credit and collection,
including requests for deposits, (iii) retain the electric
utility's right to disconnect the retail customers, if it does
not receive payment for its tariffed services, in the same
manner that it would be permitted to if it had billed for the
services itself, and (iv) require the alternative retail
electric supplier or other electric utility that elects the
billing option provided by this tariff to include on each bill

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to retail customers an identification of the electric utility
providing the delivery services and a listing of the charges
applicable to such services. The tariff filed pursuant to this
subsection may also include other just and reasonable terms and
conditions. In addition, an electric utility, an alternative
retail electric supplier or electric utility other than the
electric utility in whose service area the customer is located,
and a customer served by such alternative retail electric
supplier or other electric utility, may enter into an agreement
pursuant to which the alternative retail electric supplier or
other electric utility pays the charges specified in Section
16-108, or other customer-related charges, including taxes and
fees, in lieu of such charges being recovered by the electric
utility directly from the customer.
(c) An electric utility with more than 100,000 customers
shall file a tariff pursuant to Article IX of this Act that
provides alternative retail electric suppliers, and electric
utilities other than the electric utility in whose service area
the retail customers are located, with the option to have the
electric utility purchase their receivables for power and
energy service provided to residential retail customers and
non-residential retail customers with a non-coincident peak
demand of less than 400 kilowatts. An electric utility with
more than 100,000 customers, however, shall not purchase any
receivable priced at a higher price than is obtained for
consumers through the Illinois Power Agency procurement

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process under Section 16-111.5. Only those amounts less than or
equal to the price obtained for consumers through that
procurement process shall be purchased by an electric utility
with more than 100,000 customers. Receivables for power and
energy service of alternative retail electric suppliers or
electric utilities other than the electric utility in whose
service area the retail customers are located shall be
purchased by the electric utility at a just and reasonable
discount rate to be reviewed and approved by the Commission
after notice and hearing. The discount rate shall be based on
the electric utility's historical bad debt and any reasonable
start-up costs and administrative costs associated with the
electric utility's purchase of receivables. The discounted
rate for purchase of receivables shall be included in the
tariff filed pursuant to this subsection (c). The discount rate
filed pursuant to this subsection (c) shall be subject to
periodic Commission review. The electric utility retains the
right to impose the same terms on retail customers with respect
to credit and collection, including requests for deposits, and
retain the electric utility's right to 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 purchased power
and energy from the electric utility. The tariff filed pursuant
to this subsection (c) shall permit the electric utility to
recover from retail customers any uncollected receivables that

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may arise as a result of the purchase of receivables under this
subsection (c) (however, the uncollected receivables shall not
exceed the price obtained for consumers through the Illinois
Power Agency procurement process under Section 16-111.5), may
also include other just and reasonable terms and conditions,
and shall provide for the prudently incurred costs associated
with the provision of this service pursuant to this subsection
(c). Nothing in this subsection (c) permits the double recovery
of bad debt expenses from customers.
(d) An electric utility with more than 100,000 customers
shall file a tariff pursuant to Article IX of this Act that
would provide alternative retail electric suppliers or
electric utilities other than the electric utility in whose
service area retail customers are located with the option to
have the electric utility produce and provide single bills to
the retail customers for both the electric power and energy
service provided by the alternative retail electric supplier or
other electric utility and the delivery services provided by
the electric utility to the customers. The tariffs filed
pursuant to this subsection shall require the electric utility
to collect and remit customer payments for electric power and
energy service provided by alternative retail electric
suppliers or electric utilities other than the electric utility
in whose service area retail customers are located. The tariff
filed pursuant to this subsection shall require the electric
utility to include on each bill to retail customers an

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identification of the alternative retail electric supplier or
other electric utility that elects the billing option. The
tariff filed pursuant to this subsection (d) may also include
other just and reasonable terms and conditions and shall
provide for the recovery of prudently incurred costs associated
with the provision of service pursuant to this subsection (d).
The costs associated with the provision of service pursuant to
this Section shall be subject to periodic Commission review.
(e) An electric utility with more than 100,000 customers in
this State shall file a tariff pursuant to Article IX of this
Act that provides alternative retail electric suppliers, and
electric utilities other than the electric utility in whose
service area the retail customers are located, with the option
to have the electric utility purchase 2 billing cycles worth of
uncollectible receivables for power and energy service
provided to residential retail customers and to
non-residential retail customers with a non-coincident peak
demand of less than 400 kilowatts upon returning that customer
to that electric utility for delivery and energy service after
that alternative retail electric supplier, or an electric
utility other than the electric utility in whose service area
the retail customer is located, has made reasonable collection
efforts on that account. However, the uncollected receivable
shall not exceed the price obtained for consumers through the
procurement process under Section 16-111.5. Uncollectible
receivables for power and energy service of alternative retail

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electric suppliers, or electric utilities other than the
electric utility in whose service area the retail customers are
located, shall be purchased by the electric utility at a just
and reasonable discount rate to be reviewed and approved by the
Commission, after notice and hearing. The discount rate shall
be based on the electric utility's historical bad debt for
receivables that are outstanding for a similar length of time
and any reasonable start-up costs and administrative costs
associated with the electric utility's purchase of
receivables. The discounted rate for purchase of uncollectible
receivables shall be included in the tariff filed pursuant to
this subsection (e). The electric utility retains the right to
impose the same terms on these retail customers with respect to
credit and collection, including requests for deposits, and
retains the right to disconnect these 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 power and energy from the
electric utility. The tariff filed pursuant to this subsection
(e) shall permit the electric utility to recover from retail
customers any uncollectable receivables that may arise as a
result of the purchase of uncollectible receivables under this
subsection (e) (however, the uncollectible receivable shall
not exceed the price obtained for consumers through the
Illinois Power Agency procurement process under Section
16-111.5), may also include other just and reasonable terms and

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conditions, and shall provide for the prudently incurred costs
associated with the provision of this service pursuant to this
subsection (e). Nothing in this subsection (e) permits the
double recovery of utility bad debt expenses from customers.
The electric utility may file a joint tariff for this
subsection (e) and subsection (c) of this Section.
(Source: P.A. 95-700, eff. 11-9-07.)