HB5633 98TH GENERAL ASSEMBLY

LRB098 18448 RPS 53585 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5633

Introduced , by Rep. Kelly Burke

SYNOPSIS AS INTRODUCED:

220 ILCS 5/Art. XX heading
220 ILCS 5/20-101
220 ILCS 5/20-102
220 ILCS 5/20-110
220 ILCS 5/20-125 new
220 ILCS 5/20-135 new

Amends the Retail Electric Competition Article of the Public Utilities Act. Retitles the Article as the Consumer Retail Competition Act. Extends the scope of the Article to apply to natural gas markets. Makes a legislative finding that retail consumers of natural gas would benefit from market opening solutions and competitive choices. Directs the Office of Retail Market Development to promote retail competition for safe, reliable, and affordable natural gas service. Authorizes the Commerce Commission to establish retail choice and referral programs providing incentives for residential and small commercial customers to switch natural gas suppliers.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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 the heading of Article XX and Sections 20-101, 20-102, and 20-110 and by adding Sections 20-125 and 20-135 as follows:

(220 ILCS 5/Art. XX heading)

ARTICLE XX. CONSUMER RETAIL ELECTRIC COMPETITION

(Source: P.A. 94-1095, eff. 2-2-07.)

(220 ILCS 5/20-101)

Sec. 20-101. This Article may be cited as the Consumer Retail Electric Competition Act of 2006.

(Source: P.A. 94-1095, eff. 2-2-07.)

(220 ILCS 5/20-102)

Sec. 20-102. Findings and intent.

(a) Competitive A competitive wholesale electricity and natural gas markets market alone will not deliver the full benefits of competition to Illinois consumers. For Illinois consumers to receive products, prices, and terms tailored to meet their needs, a competitive wholesale markets electricity market must be closely linked to a competitive retail electric and competitive retail natural gas markets market.

(b) To date, as a result of the Electric Service Customer Choice and Rate Relief Law of 1997, thousands of large Illinois commercial and industrial consumers have experienced the benefits of a competitive retail electricity market. Alternative electric retail suppliers actively compete to supply electricity to large Illinois commercial and industrial consumers with attractive prices, terms, and conditions.

(c) A competitive retail electric market does not yet exist for residential and small commercial consumers. As a result, millions of residential and small commercial consumers in Illinois are faced with escalating heating and power bills and are unable to shop for alternatives to the rates demanded by the State's incumbent electric utilities.

(d) The General Assembly reiterates its findings from the Electric Service Customer Choice and Rate Relief Law of 1997 that the Illinois Commerce Commission should promote the development of an effectively competitive retail electricity market that operates efficiently and benefits all Illinois consumers.

(e) The General Assembly also finds that consumers of retail natural gas would benefit from market opening solutions and competitive choices.

(Source: P.A. 94-1095, eff. 2-2-07.)

(220 ILCS 5/20-110)

Sec. 20-110. Office of Retail Market Development. Within 90 days after February 2, 2007 (the effective date of Public Act 94-1095) this amendatory Act of the 94th General Assembly, subject to appropriation, the Commission shall establish an Office of Retail Market Development and employ on its staff a Director of Retail Market Development to oversee the Office. The Director shall have authority to employ or otherwise retain at least 2 professionals dedicated to the task of actively seeking out ways to promote retail competition in Illinois to benefit all Illinois consumers.

The Office shall actively seek input from all interested parties and shall develop a thorough understanding and critical analyses of the tools and techniques used to promote retail competition in other states.

The Office shall monitor existing competitive conditions in Illinois, identify barriers to retail competition for all customer classes, and actively explore and propose to the Commission and to the General Assembly solutions to overcome identified barriers. The Director may include municipal aggregation of customers and creating and designing customer choice programs as tools for retail market development. Solutions proposed by the Office to promote retail competition must also promote safe, reliable, and affordable electric and natural gas service.

On or before June 30 of each year, the Director shall submit a report to the Commission, the General Assembly, and the Governor, that details specific accomplishments achieved by the Office in the prior 12 months in promoting retail electric and retail natural gas competition and that suggests administrative and legislative action necessary to promote further improvements in retail electric competition.

(Source: P.A. 94-1095, eff. 2-2-07.)

(220 ILCS 5/20-125 new)

Sec. 20-125. Residential and small commercial retail natural gas competition. Within 12 months after the effective date of this amendatory Act of the 98th General Assembly, the Director shall conduct research, gather input from all interested parties, and develop and present to the Commission, the General Assembly, and the Governor a detailed plan designed to promote, in the most expeditious manner possible, retail natural gas competition for residential and small commercial consumers while maintaining safe, reliable, and affordable service. Interested parties shall be given the opportunity to review the plan and provide written comments regarding the plan prior to its submission to the Commission, the General Assembly, and the Governor. Written comments received by the Office shall be posted on the Commission's web site. The final plan submitted to the Commission, the General Assembly, and the Governor must include summaries of any written comments and must also be posted on the Commission's web site.

To the extent the plan calls for Commission action, the Commission shall initiate any proceeding or proceedings called for in the final plan within 60 days after receipt of the final plan and complete those proceedings within 11 months after their initiation.

Nothing in this Section shall prevent the Commission from acting earlier to remove identified barriers to retail natural gas competition for residential and small commercial consumers.

(220 ILCS 5/20-135 new)

Sec. 20-135. Retail choice and referral programs for natural gas consumers. The Commission shall have the authority to establish retail choice and referral programs to be administered by a natural gas utility or the State in which residential and small commercial customers receive incentives, including, but not limited to, discounted rate introductory offers for switching to participating natural gas suppliers.

The Office of Retail Market Development shall serve as the clearinghouse for the development of retail choice programs and shall work with natural gas utilities and interested parties on a continuous basis to implement and improve upon the programs. Nothing in this Section shall prevent a natural gas utility from implementing retail choice programs on its own accord.

Nothing in this Section shall prevent the Office of Retail Market Development or the Commission from considering retail choice programs.