Full Text of HB2426 96th General Assembly
HB2426 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB2426
Introduced 2/19/2009, by Rep. Thomas Holbrook SYNOPSIS AS INTRODUCED: |
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Amends the Electric Service Customer Choice and Rate Relief Law of 1997 in the Public Utilities Act. Provides that an electric utility with more than 100,000 customers in the State shall file a tariff pursuant to specified provisions 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 (instead of 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. Makes a technical correction. Effective immediately.
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A BILL FOR
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HB2426 |
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LRB096 10315 MJR 20485 b |
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| AN ACT concerning utilities.
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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 | 5 |
| Section 16-118 as follows:
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| (220 ILCS 5/16-118)
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| Sec. 16-118. Services provided by electric utilities to
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| alternative retail electric suppliers.
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| (a) It is in the best interest of Illinois energy
consumers | 10 |
| to promote fair and open competition in the
provision of | 11 |
| electric power and energy and to prevent
anticompetitive | 12 |
| practices in the provision of electric power
and energy.
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| Therefore, to the extent an electric utility provides electric | 14 |
| power and energy
or delivery services to alternative retail | 15 |
| electric suppliers and such services
are not subject to the | 16 |
| jurisdiction of the Federal Energy
Regulatory Commission, and | 17 |
| are not competitive services, they
shall be provided through | 18 |
| tariffs that are filed with the
Commission, pursuant to Article | 19 |
| IX of this Act.
Each electric utility shall permit alternative
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| retail electric suppliers to interconnect facilities to those
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| owned by the utility provided they meet established standards
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| for such interconnection, and may provide standby or other
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| services to alternative retail electric suppliers. The
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HB2426 |
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LRB096 10315 MJR 20485 b |
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| alternative retail electric supplier shall sign a contract
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| setting forth the prices, terms and conditions for
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| interconnection with the electric utility and the prices,
terms | 4 |
| and conditions for services provided by the electric
utility to | 5 |
| the alternative retail electric supplier in
connection with the | 6 |
| delivery by the electric utility of
electric power and energy | 7 |
| supplied by the alternative retail
electric supplier.
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| (b) An electric utility shall file a tariff pursuant to | 9 |
| Article IX of the
Act that would allow alternative retail | 10 |
| electric suppliers or electric
utilities other than the | 11 |
| electric utility in whose service area retail
customers are
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| located to issue single bills to the retail customers for both | 13 |
| the services
provided by such alternative retail electric | 14 |
| supplier or other electric utility
and the delivery services | 15 |
| provided by the electric utility to such customers.
The tariff | 16 |
| filed pursuant to this subsection shall (i) require partial | 17 |
| payments
made by retail customers to be credited first to the | 18 |
| electric utility's
tariffed services, (ii) impose commercially | 19 |
| reasonable terms with respect to
credit and collection, | 20 |
| including requests for deposits, (iii) retain the
electric | 21 |
| utility's right to disconnect the retail customers, if it does | 22 |
| not
receive payment for its tariffed services, in the same | 23 |
| manner that it would be
permitted to if it had billed for the | 24 |
| services itself, and (iv) require the
alternative retail | 25 |
| electric supplier or other electric utility that elects the
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| billing option provided by this tariff to include on each bill |
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HB2426 |
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LRB096 10315 MJR 20485 b |
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| to retail
customers an identification of the electric utility | 2 |
| providing the delivery
services and a listing of the charges | 3 |
| applicable to such services. The tariff
filed pursuant to this | 4 |
| subsection may also include other just and reasonable
terms and | 5 |
| conditions. In addition,
an electric utility, an alternative | 6 |
| retail electric
supplier or electric utility other than the | 7 |
| electric utility
in whose service area the customer is located, | 8 |
| and a customer
served by such alternative retail electric | 9 |
| supplier or other
electric utility, may enter into an agreement | 10 |
| pursuant to
which the alternative retail electric supplier or | 11 |
| other
electric utility pays the charges specified in Section | 12 |
| 16-108,
or other customer-related charges, including taxes and | 13 |
| fees,
in lieu of such charges being recovered by the electric
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| utility directly from the customer. | 15 |
| (c) An electric utility with more than 100,000 customers | 16 |
| shall file a tariff pursuant to Article IX of this Act that | 17 |
| provides alternative retail electric suppliers, and electric | 18 |
| utilities other than the electric utility in whose service area | 19 |
| the retail customers are located, with the option to have the | 20 |
| electric utility purchase their receivables for power and | 21 |
| energy service provided to residential retail customers and | 22 |
| non-residential retail customers with a non-coincident peak | 23 |
| demand of less than 400 kilowatts. Receivables for power and | 24 |
| energy service of alternative retail electric suppliers or | 25 |
| electric utilities other than the electric utility in whose | 26 |
| service area the retail customers are located shall be |
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HB2426 |
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LRB096 10315 MJR 20485 b |
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| purchased by the electric utility at a just and reasonable | 2 |
| discount rate to be reviewed and approved by the Commission | 3 |
| after notice and hearing. The discount rate shall be based on | 4 |
| the electric utility's historical bad debt and any reasonable | 5 |
| start-up costs and administrative costs associated with the | 6 |
| electric utility's purchase of receivables. The discounted | 7 |
| rate for purchase of receivables shall be included in the | 8 |
| tariff filed pursuant to this subsection (c). The discount rate | 9 |
| filed pursuant to this subsection (c) shall be subject to | 10 |
| periodic Commission review. The electric utility retains the | 11 |
| right to impose the same terms on retail customers with respect | 12 |
| to credit and collection, including requests for deposits, and | 13 |
| retain the electric utility's right to disconnect the retail | 14 |
| customers, if it does not receive payment for its tariffed | 15 |
| services or purchased receivables, in the same manner that it | 16 |
| would be permitted to if the retail customers purchased power | 17 |
| and energy from the electric utility. The tariff filed pursuant | 18 |
| to this subsection (c) shall permit the electric utility to | 19 |
| recover from retail customers any uncollected receivables that | 20 |
| may arise as a result of the purchase of receivables under this | 21 |
| subsection (c), may also include other just and reasonable | 22 |
| terms and conditions, and shall provide for the prudently | 23 |
| incurred costs associated with the provision of this service | 24 |
| pursuant to this subsection (c). Nothing in this subsection (c) | 25 |
| permits the double recovery of bad debt expenses from | 26 |
| customers. |
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LRB096 10315 MJR 20485 b |
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| (d) An electric utility with more than 100,000 customers | 2 |
| shall file a tariff pursuant to Article IX of this Act that | 3 |
| would provide alternative retail electric suppliers or | 4 |
| electric utilities other than the electric utility in whose | 5 |
| service area retail customers are located with the option to | 6 |
| have the electric utility produce and provide single bills to | 7 |
| the retail customers for both the electric power and energy | 8 |
| service provided by the alternative retail electric supplier or | 9 |
| other electric utility and the delivery services provided by | 10 |
| the electric utility to the customers. The tariffs filed | 11 |
| pursuant to this subsection shall require the electric utility | 12 |
| to collect and remit customer payments for electric power and | 13 |
| energy service provided by alternative retail electric | 14 |
| suppliers or electric utilities other than the electric utility | 15 |
| in whose service area retail customers are located. The tariff | 16 |
| filed pursuant to this subsection shall require the electric | 17 |
| utility to include on each bill to retail customers an | 18 |
| identification of the alternative retail electric supplier or | 19 |
| other electric utility that elects the billing option. The | 20 |
| tariff filed pursuant to this subsection (d) may also include | 21 |
| other just and reasonable terms and conditions and shall | 22 |
| provide for the recovery of prudently incurred costs associated | 23 |
| with the provision of service pursuant to this subsection (d). | 24 |
| The costs associated with the provision of service pursuant to | 25 |
| this Section shall be subject to periodic Commission review.
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| (e) An electric utility with more than 100,000 customers in |
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HB2426 |
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LRB096 10315 MJR 20485 b |
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| this State shall file a tariff pursuant to Article IX of this | 2 |
| Act that provides alternative retail electric suppliers, and | 3 |
| electric utilities other than the electric utility in whose | 4 |
| service area the retail customers are located, with the option | 5 |
| to have the electric utility purchase 2 billing cycles worth of | 6 |
| uncollectible receivables for power and energy service | 7 |
| provided to residential retail customers and to | 8 |
| non-residential retail customers with a non-coincident peak | 9 |
| demand of less than 400 kilowatts upon returning that customer | 10 |
| to that electric utility for delivery and energy service after | 11 |
| that alternative retail electric supplier, or an electric | 12 |
| utility other than the electric utility in whose service area | 13 |
| the retail customer is located, has made reasonable collection | 14 |
| efforts on that account. Uncollectible receivables for power | 15 |
| and energy service of alternative retail electric suppliers, or | 16 |
| electric utilities other than the electric utility in whose | 17 |
| service area the retail customers are located, shall be | 18 |
| purchased by the electric utility at a just and reasonable | 19 |
| discount rate to be reviewed and approved by the Commission, | 20 |
| after notice and hearing. The discount rate shall be based on | 21 |
| the electric utility's historical bad debt for receivables that | 22 |
| are outstanding for a similar length of time and any reasonable | 23 |
| start-up costs and administrative costs associated with the | 24 |
| electric utility's purchase of receivables. The discounted | 25 |
| rate for purchase of uncollectible receivables shall be | 26 |
| included in the tariff filed pursuant to this subsection (e). |
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HB2426 |
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LRB096 10315 MJR 20485 b |
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| The electric utility retains the right to impose the same terms | 2 |
| on these retail customers with respect to credit and | 3 |
| collection, including requests for deposits, and retains the | 4 |
| right to disconnect these retail customers, if it does not | 5 |
| receive payment for its tariffed services or purchased | 6 |
| receivables, in the same manner that it would be permitted to | 7 |
| if the retail customers had purchased power and energy from the | 8 |
| electric utility. The tariff filed pursuant to this subsection | 9 |
| (e) shall permit the electric utility to recover from retail | 10 |
| customers any uncollectible uncollectable receivables that may | 11 |
| arise as a result of the purchase of uncollectible receivables | 12 |
| under this subsection (e), may also include other just and | 13 |
| reasonable terms and conditions, and shall provide for the | 14 |
| prudently incurred costs associated with the provision of this | 15 |
| service pursuant to this subsection (e). Nothing in this | 16 |
| subsection (e) permits the double recovery of utility bad debt | 17 |
| expenses from customers. The electric utility may file a joint | 18 |
| tariff for this subsection (e) and subsection (c) of this | 19 |
| Section.
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| (Source: P.A. 95-700, eff. 11-9-07.)
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| Section 99. Effective date. This Act takes effect upon | 22 |
| becoming law.
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