SB1603sam002 96TH GENERAL ASSEMBLY

Sen. Kimberly A. Lightford

Filed: 3/24/2009

09600SB1603sam002 LRB096 09062 MJR 24365 a

AMENDMENT TO SENATE BILL 1603

AMENDMENT NO. ______. Amend Senate Bill 1603, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The Public Utilities Act is amended by adding Sections 16-111.7, 16-111.9, 19-140, and 19-150 and by changing the heading of Article XIX and Section 19-100 as follows:

(220 ILCS 5/16-111.7 new)

Sec. 16-111.7. Financial assistance; payment plans.

(a) Notwithstanding any other provision of this Act, an electric utility may offer programs that are approved by the Commission specifically designed to provide bill payment assistance to low-income customers; provided, however, that each electric utility shall implement a plan as described in subsection (b) of this Section. The plans may be designed in a number of ways, including, but not limited to, flat grants, forgiveness of past due amounts in exchange for regular payments, percentage of income payments, energy efficiency and demand-response measures, and education. After receiving a request from an electric utility for the approval of a proposed plan pursuant to this Section, the Commission shall render its decision within 120 days. If no decision is rendered within 120 days, then the request shall be deemed to be approved.

(b) Each Percentage of Income Payment Plan (PIP Plan) shall contain all of the following components:

(1) The electric utility shall coordinate with the Department of Commerce and Economic Opportunity (Department) to identify eligible participants, which shall be based on the same criteria established by the Department 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 less than 125% of the poverty level and, subject to availability of funds, reasonable efforts shall be made to include a minimum income of no less than 150% of the poverty level.

(2) The Department shall establish the percentage of income formula that will be applied to PIP Plan participants' electric utility bills to determine the portion of the bill that is the responsibility of the participant provided that, and consistent with Section 19-140 of this Act, the percentage shall be a total of no less than 6% and no more than 10% of the relevant income for gas and electric utility bills combined, which amount shall be allocated 60% to the utility, gas or electric, that provides the participant's primary energy supply for heating and 40% to the other utility.

(3) The Department shall remit to the electric utility that portion of the PIP Plan participant's bill that is not the responsibility of the participant; in the event that the Department fails to remit payment to the electric utility as required by this Section, the utility shall be entitled to recover all costs related to nonpayment through the automatic adjustment clause tariff established pursuant to Section 16-111.9 of this Act, and the limitations of subsection (c) of this Section shall not apply.

(4) For each month that a PIP Plan participant timely pays his or her electric utility bill, the electric utility shall apply a credit to a portion of the participant's arrearage, if any, equal to no less than one-twelfth of that arrearage, which costs shall be recoverable by the utility pursuant to subsection (c) of this Section, provided that the total amount of arrearage credits shall ratably equal no more than $1,000 for each participant. The remaining amount of arrearage, if any, shall be placed on a deferred payment plan.

(5) The timeliness of a PIP Plan participant's monthly payment of its utility bill may be considered in determining the participant's continued eligibility under the PIP Plan.

(6) The PIP Plan, including, but not limited to the number of participants and the percentage of income formula, shall be adjusted, or, if necessary, the PIP Plan may be suspended, based on the availability of funds from LIHEAP provided that, notwithstanding the limitation in subsection (c) of this Section, a utility may supplement LIHEAP funding for the PIP Plan up to $3 million annually if the Commission finds that such funding is to the benefit of customers, which costs shall be recoverable under subsection (c) of this Section.

(7) Following the first full year of a PIP Plan, and subject to Commission approval, the electric utility may terminate or reduce arrearages credits in order to add additional programs under this Section.

(8) Of the total funds authorized under this Section, each electric utility shall spend at least the lesser of (i) 3% of the total amount it spends under this Section or (ii) $200,000 on programs to education PIP Plan participants and other low-income customers about low-cost energy efficiency and conservation.

(c) An electric utility shall recover all of the costs it incurs in offering programs approved by the Commission pursuant to this Section, including all start-up and administrative costs, provided that the costs do not exceed $10 million annually. All costs incurred under this Section shall be recovered from the electric utility's retail customers through an automatic adjustment clause tariff filed with and approved by the Commission.

(d) In the event an electric utility offering programs under this Section elects to discontinue a program, it shall provide 60 days notice both (i) to program participants through a bill insert and (ii) to the Commission through an informational filing.

(e) To ensure that there are sufficient funds to provide a variety of programs to meet varying needs, a utility need not devote more than $3 million of the total funds authorized under this Section to credit arrearages for PIP Plan participants.

(220 ILCS 5/16-111.9 new)

Sec. 16-111.9. Automatic adjustment clause tariff; uncollectibles. An electric utility that has filed a request with the Commission for approval of a Percentage of Income Payment Plan pursuant to Section 16-111.7 of this Act shall be permitted to recover through an automatic adjustment clause tariff the incremental difference between the uncollectible expense included in the utility's rates and its actual uncollectible expense as set forth in Account 904 in the utility's most recent annual FERC Form 1 filing. This difference may either be a charge or a credit to customers depending on whether the amount of uncollectible expense is more or less than the amount of uncollectible expense then included in the utility's rates. The tariff shall be established outside the context of a general rate case. An electric utility may file a compliant tariff together with or at any time after filing its requests with the Commission for approval of its Percentage of Income Payment Plan. The Commission shall conclude any investigation of the tariff within 45 days after the date on which it is filed, and shall appropriately allocate uncollectible costs between delivery services customers and supply customers. An approved tariff shall be applicable beginning with the utility's next monthly billing period commencing at least 15 days after the date of approval. Thereafter, the Commission shall annually initiate, no later than March 30th of each year, a review to reconcile all amounts collected with actual uncollectible expense in the prior annual period, to determine any required adjustment to account for any difference in those amounts, and to review the reasonableness of the costs incurred and prudence of the utility's actions associated with such costs. As part of its review, the Commission shall verify that the utility collects no more and no less than its actual uncollectible expense as reported in its FERC Form 1 in the previous year. The Commission shall complete its annual review and issue an order within 90 days and may include in the order suggestions for prospective changes in current practices. Nothing in this Section or the implementing tariffs shall affect or alter the electric utility's existing obligation to pursue collection of uncollectibles or the electric utility's right to disconnect service. Except in response to a reduction in uncollectibles or with the approval of the Commission, a utility that has in effect a tariff authorized by this Section shall not curtail the following activities to pursue minimization and collection of uncollectibles:

(1) identification of customers with late payments;

(2) contacting the customers in an effort to obtain payment;

(3) providing delinquent customers with information about possible options, including payment plans and assistance programs;

(4) serving disconnection notices;

(5) implementing disconnections based on the level of uncollectibles; or

(6) pursuing collection activities based on the level of uncollectibles.

Nothing in this Section shall be construed to necessarily require a utility to immediately disconnect service for nonpayment.

(220 ILCS 5/Art. XIX heading)

ARTICLE XIX. ALTERNATIVE GAS SUPPLIER AND CUSTOMER ASSISTANCE

PROGRAMS LAW

(220 ILCS 5/19-100)

Sec. 19-100. Short title. This Article may be cited as the Alternative Gas Supplier and Customer Assistance Programs Law.

(Source: P.A. 92-529, eff. 2-8-02.)

(220 ILCS 5/19-140 new)

Sec. 19-140. Financial assistance; payment plans; gas utilities.

(a) Notwithstanding any other provision of this Act, a gas utility may offer programs that are approved by the Commission specifically designed to provide bill payment assistance to low-income customers; provided, however, that each gas utility shall implement a plan as described in subsection (b) of this Section. The plans may be designed in a number of ways, including, but not limited to, flat grants, forgiveness of past due amounts in exchange for regular payments, percentage of income payments, energy efficiency and demand-response measures, and education. After receiving a request from a gas utility for the approval of a proposed plan pursuant to this Section, the Commission shall render its decision within 120 days. If no decision is rendered within 120 days, then the request shall be deemed to be approved.

(b) Each Percentage of Income Payment Plan (PIP Plan) shall contain all of the following components:

(1) The gas utility shall coordinate with the Department of Commerce and Economic Opportunity (Department) to identify eligible participants, which shall be based on the same criteria established by the Department 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 less than 125% of the poverty level and, subject to availability of funds, reasonable efforts shall be made to include a minimum income of no less than 150% of the poverty level.

(2) The Department shall establish the percentage of income formula that will be applied to PIP Plan participants' gas utility bills to determine the portion of the bill that is the responsibility of the participant provided that, and consistent with Section 16-111.7 of this Act, the percentage shall be a total of no less than 6% and no more than 10% of the relevant income for gas and electric utility bills combined, which amount shall be allocated 60% to the utility, gas or electric, that provides the participant's primary energy supply for heating and 40% to the other utility.

(3) The Department shall remit to the gas utility that portion of the PIP Plan participant's bill that is not the responsibility of the participant; in the event that the Department fails to timely remit payment to the gas utility as required by this Section, the utility shall be entitled to recover all costs related to nonpayment through the automatic adjustment clause tariff established pursuant to Section 19-150 of this Act, and the limitations of subsection (c) of this Section shall not apply.

(4) For each month that a PIP Plan participant timely pays his or her gas utility bill, the gas utility shall apply a credit to a portion of the participant's arrearage, if any, equal to no less than one-twelfth of such arrearage, which costs shall be recoverable by the utility pursuant to subsection (c) of this Section, provided that the total amount of arrearage credits shall ratably equal no more than $1,000 for each participant. The remaining amount of arrearage, if any, shall be placed on a deferred payment plan.

(5) The timeliness of a PIP Plan participant's monthly payment of its utility bill may be considered in determining such participant's continued eligibility under the PIP Plan.

(6) The PIP Plan, including, but not limited to the number of participants and the percentage of income formula, shall be adjusted, or, if necessary, the PIP Plan may be suspended, based on the availability of funds from LIHEAP provided that, notwithstanding the limitation in subsection (c) of this Section, a utility may supplement LIHEAP funding for the PIP Plan up to $3 million annually if the Commission finds that such funding is to the benefit of customers, which costs shall be recoverable under subsection (c) of this Section.

(7) Following the first full year of a PIP Plan, and subject to Commission approval, the gas utility may terminate or reduce arrearages credits in order to add additional programs under this Section.

(8) Of the total funds authorized hereunder, each gas utility shall spend at least the lesser of (i) 3% of the total amount it spends under this Section or (ii) $200,000 on programs to education PIP Plan participants and other low-income customers about low-cost energy efficiency and conservation.

(9) Each alternative gas supplier shall elect whether it will participate in the PIP Plan, and each alternative gas supplier electing not to participate shall so notify each residential customer that it serves.

(c) A gas utility shall recover all of the costs it incurs in offering programs approved by the Commission pursuant to this Section, including all start-up and administrative costs, provided that, except as authorized under this Section, the costs do not exceed $10 million annually. All costs incurred under this Section shall be recovered from the gas utility's retail customers through an automatic adjustment clause tariff filed with and approved by the Commission.

(d) Except as provided in subsection (b) of this Section, in the event a gas utility offering programs under this Section elects to discontinue a program, it shall provide 60 days notice both (i) to program participants through a bill insert and (ii) to the Commission through an informational filing.

(e) To ensure that there are sufficient funds to provide a variety of programs to meet varying needs, a utility need not devote more than $3 million of the total funds authorized under this Section to credit arrearages for PIP Plan participants.

(220 ILCS 5/19-150 new)

Sec. 19-150. Automatic adjustment clause tariff; uncollectibles; gas utilities. A gas utility that has filed a request with the Commission for approval of a Percentage of Income Payment Plan pursuant to Section 19-140 of this Act shall be permitted to recover through an automatic adjustment clause tariff the incremental difference between the uncollectible expense included in the utility's rates and its actual uncollectible expense as set forth in Account 904 in the utility's most recent annual FERC Form 2 filing. The difference may either be a charge or a credit to customers depending on whether the amount of uncollectible expense is more or less than the amount of uncollectible expense then included in the utility's rates. The tariff shall be established outside the context of a general rate case. A gas utility may file a compliant tariff together with or at any time after filing its request with the Commission for approval of its Percentage of Income Payment Plan. The Commission shall conclude any investigation of the tariff within 45 days after the date on which it is filed, and shall appropriately allocate uncollectible costs between delivery services customers and supply customers. An approved tariff shall be applicable beginning with the utility's next monthly billing period commencing at least 15 days after the date of approval. Thereafter, the Commission shall annually initiate, no later than March 30th of each year, a review to reconcile all amounts collected with actual uncollectible expense in the prior annual period, to determine any required adjustment to account for any difference in those amounts and to review the reasonableness of the cost incurred and prudence of the utility's actions associated with such costs. As part of its review, the Commission shall verify that the utility collects no more and no less than its actual uncollectible expense as reported in its FERC Form 2, or, if none is filed, the amount reflected in ICC Form 21, in the previous year. The Commission shall complete its annual review and issue an order within 90 days and may include in the order suggestions for prospective changes in current practices. Nothing in this Section or the implementing tariffs shall affect or alter the gas utility's existing obligation to pursue collection of uncollectibles or the gas utility's right to disconnect service. Except in response to a reduction in uncollectibles or with the approval of the Commission, a utility that has in effect a tariff authorized by this Section shall not curtail the following activities to pursue minimization and collection of uncollectibles:

(1) identification of customers with late payments;

(2) contacting the customers in an effort to obtain payment;

(3) providing delinquent customers with information about possible options, including payment plans and assistance programs;

(4) serving disconnection notices;

(5) implementing disconnections based on the level of uncollectibles; or

(6) pursuing collection activities based on the level of uncollectibles.

Nothing in this Section shall be construed to necessarily require a utility to immediately disconnect service for nonpayment.

Section 99. Effective date. This Act takes effect upon becoming law.".