96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB1741


 
Introduced 2/18/2009, by Rep. Michael J. Madigan - Barbara Flynn Currie - George Scully, Jr.
 
SYNOPSIS AS INTRODUCED:
 		














220 ILCS 5/8-304
  from Ch. 111 2/3, par. 8-304







    Amends the Public Utilities Act. Makes a technical change in a Section concerning estimated billing practices.
















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A BILL FOR









 











HB1741

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    AN ACT concerning regulation.

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

 
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    Section 5. The Public Utilities Act is amended by changing 
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Section 8-304 as follows:
 



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    (220 ILCS 5/8-304)  (from Ch. 111 2/3, par. 8-304)



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    Sec. 8-304. 
The
The Commission shall conduct a 
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comprehensive study of the
estimated billing practices and 
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policies of each major public utility
providing gas or electric 
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service. The study shall include, but not be limited to:
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    (a) an analysis of the extent to which estimated billing 
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has occurred in
each of the past 10 years and the extent to 
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which it currently occurs and is
expected to occur in the 
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foreseeable future. Such analysis shall, to the
fullest extent 
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possible, include an examination of the circumstances in
which 
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estimated billing most frequently occurs, by time of year,

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geographical location, and customer class or group. Such 
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analysis shall
also specifically identify the frequency of 
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consecutively estimated bills;

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    (b) an analysis of the reasons for estimated billing in 
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general, the
reasons for any change over time in the frequency 
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of estimated billing, and
the reason for any higher than 
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average frequency of estimated billing
during certain times of 
 


 






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year, in certain geographical areas, or for
particular customer 
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classes or groups;

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    (c) an analysis of the method used to establish the amount 
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of an
estimated bill and the extent to which such method 
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reflects changes in
usage due to weather and customer 
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conservation efforts;

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    (d) an analysis of the extent to which the method used to 
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establish the
amount of an estimated bill accurately 
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approximates actual usage and the
extent to which estimated 
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bills differ from actual usage and bills;

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    (e) an analysis of the extent to which the frequency of 
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estimated
billing and any inaccuracies resulting from the 
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method of establishing the
amount of an estimated bill, 
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including make-up billing, contribute to
customers' 
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unwillingness or inability to pay utility bills and the 
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utility's
inability to collect actual amounts due and owing;

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    (f) identification of any and all means currently used to 
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minimize the
frequency of estimated bills and any inaccuracies 
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in estimation methods,
and a critical assessment of the 
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adequacy and effectiveness of such means;

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    (g) identification of any incentives which exist and which 
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tend to
encourage or discourage the use of estimated billing by 
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utilities;

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    (h) identification and critical assessment of all 
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alternative incentives
and means by which the frequency of 
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estimated billing and the inaccuracies
of estimation

 


 






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procedures can be minimized, and estimation procedures 
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improved, giving
consideration to the cost to the utilities, 
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including, but not limited to,

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    (i) requiring the use of outside meters;

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    (ii) requiring utilities to read meters monthly;

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    (iii) requiring utilities to pay interest on the difference 
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between an
estimated bill and the actual amount due, where the 
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customer pays the
estimated bill, and the estimated bill 
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exceeds the actual amount due for
such period of time.

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    The completed study shall be subject to hearing and 
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comment. Thereafter,
the Commission shall initiate rulemaking 
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proceedings to promulgate such
rules as it believes reasonable 
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and necessary to ensure the minimization of
the frequency of 
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estimated billing and the increased accuracy of estimation

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procedures. The study shall also be provided to the General 
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Assembly
together with any specific recommendations for 
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legislation which the
Commission believes necessary or 
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beneficial.

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(Source: P.A. 84-617.)