Sen. Don Harmon
Filed: 4/14/2010
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| 1 | AMENDMENT TO HOUSE BILL 5378
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| 2 | AMENDMENT NO. ______. Amend House Bill 5378, on page 1, | ||||||
| 3 | line 5, immediately before "as follows", by inserting "and by | ||||||
| 4 | adding Section 19-150"; and | ||||||
| 5 | on page 7, immediately above line 26, by inserting the | ||||||
| 6 | following:
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| 7 | "(220 ILCS 5/19-150 new) | ||||||
| 8 | Sec. 19-150. Purchase of receivables. A gas utility with | ||||||
| 9 | more than 100,000 customers that offers transportation service | ||||||
| 10 | to residential and small commercial customers shall file a | ||||||
| 11 | tariff pursuant to Article IX of this Act within 6 months after | ||||||
| 12 | the effective date of this amendatory Act of the 96th General | ||||||
| 13 | Assembly that provides alternative gas suppliers with the | ||||||
| 14 | option to have the gas utility purchase their receivables for | ||||||
| 15 | gas supply service provided to residential retail customers and | ||||||
| 16 | small commercial customers as those terms are defined in | ||||||
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| 1 | Section 19-105 of this Act. Receivables for gas supply service | ||||||
| 2 | of alternative gas suppliers shall be purchased by the gas | ||||||
| 3 | utility at a just and reasonable discount rate to be reviewed | ||||||
| 4 | and approved by the Commission after notice and hearing. In | ||||||
| 5 | making a just and reasonable determination on the discount | ||||||
| 6 | rate, the Commission shall consider the gas utility's | ||||||
| 7 | historical bad debt experience, reasonable start up costs and | ||||||
| 8 | administrative costs associated with the gas utility's | ||||||
| 9 | purchase of receivables, the impact if used by the gas utility | ||||||
| 10 | of an automatic adjustment clause tariff pursuant to Section | ||||||
| 11 | 19-140 of this Act to recover uncollectible expense, and | ||||||
| 12 | whether the gas utility recovers uncollectible expense from | ||||||
| 13 | customers of alternative gas suppliers through any of its | ||||||
| 14 | existing rates or charges. The tariff filed pursuant to this | ||||||
| 15 | Section shall include the formula used to derive the discount | ||||||
| 16 | rate as well as the actual discount rate for the initial | ||||||
| 17 | period. The discount rate filed pursuant to this Section shall | ||||||
| 18 | be subject to periodic Commission review. The gas utility | ||||||
| 19 | retains the right to impose the same terms on retail customers | ||||||
| 20 | supplied by alternative gas suppliers with respect to credit | ||||||
| 21 | and collection, including requests for deposits, and retain the | ||||||
| 22 | gas utility's right to disconnect the retail customers, if it | ||||||
| 23 | does not receive payment for its tariffed services or purchased | ||||||
| 24 | receivables, in the same manner that it would be permitted to | ||||||
| 25 | if the retail customers purchased gas supply service from the | ||||||
| 26 | gas utility. The tariff filed pursuant to this Section shall | ||||||
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| 1 | permit the gas utility to recover from retail customers any | ||||||
| 2 | uncollected receivables that may arise as a result of the | ||||||
| 3 | purchase of receivables under this Section, may also include | ||||||
| 4 | other just and reasonable terms and conditions, and shall | ||||||
| 5 | provide for recovery of the prudently incurred costs associated | ||||||
| 6 | with the provision of this service pursuant to this Section. | ||||||
| 7 | Nothing in this Section permits the double recovery of bad debt | ||||||
| 8 | expenses from customers.".
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