Full Text of HB0575 98th General Assembly
HB0575ham002 98TH GENERAL ASSEMBLY | Rep. Christian L Mitchell Filed: 4/12/2013
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| 1 | | AMENDMENT TO HOUSE BILL 575
| 2 | | AMENDMENT NO. ______. Amend House Bill 575 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Public Utilities Act is amended by changing | 5 | | Sections 16-111.7 and 19-140 as follows: | 6 | | (220 ILCS 5/16-111.7)
| 7 | | Sec. 16-111.7. On-bill financing program; electric | 8 | | utilities. | 9 | | (a) The Illinois General Assembly finds that Illinois homes | 10 | | and businesses have the potential to save energy through | 11 | | conservation and cost-effective energy efficiency measures. | 12 | | Programs created pursuant to this Section will allow utility | 13 | | customers to purchase cost-effective energy efficiency | 14 | | measures, including measures set forth in a | 15 | | Commission-approved energy efficiency and demand-response plan | 16 | | under Section 8-103 of this Act and that are cost-effective as |
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| 1 | | that term is defined by that Section , with no required initial | 2 | | upfront payment, and to pay the cost of those products and | 3 | | services over time on their utility bill. | 4 | | (b) Notwithstanding any other provision of this Act, an | 5 | | electric utility serving more than 100,000 customers on January | 6 | | 1, 2009 shall offer a Commission-approved on-bill financing | 7 | | program ("program") that allows its eligible retail customers, | 8 | | as that term is defined in Section 16-111.5 of this Act, who | 9 | | own a residential single family home, duplex, or other | 10 | | residential building with 4 or less units, or condominium at | 11 | | which the electric service is being provided (i) to borrow | 12 | | funds from a third party lender in order to purchase electric | 13 | | energy efficiency measures approved under the program for | 14 | | installation in such home or condominium without any required | 15 | | upfront payment and (ii) to pay back such funds over time | 16 | | through the electric utility's bill. Based upon the process | 17 | | described in subsection (b-5) of this Section, small commercial | 18 | | retail customers , as that term is defined in Section 16-102 of | 19 | | this Act, who own the premises at which electric service is | 20 | | being provided may be included in such program. After receiving | 21 | | a request from an electric utility for approval of a proposed | 22 | | program and tariffs pursuant to this Section, the Commission | 23 | | shall render its decision within 120 days. If no decision is | 24 | | rendered within 120 days, then the request shall be deemed to | 25 | | be approved. | 26 | | Notwithstanding the provisions of the preceding paragraph, |
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| 1 | | an electric utility serving more than 100,000 customers on or | 2 | | after January 1, 2013 shall offer a Commission-approved, | 3 | | on-bill financing program to owners of multifamily residential | 4 | | or mixed-use buildings with 5 or more residential units no | 5 | | later than December 31, 2013 under the processes described in | 6 | | subsection (c-5) of this Section. Owners of such buildings may | 7 | | not use the program in such a way that repayment of the cost of | 8 | | energy efficiency measures is made on the tenant's utility | 9 | | bills. | 10 | | (b-5) Within 30 days after the effective date of this | 11 | | amendatory Act of the 96th General Assembly, the Commission | 12 | | shall convene a workshop process during which interested | 13 | | participants may discuss issues related to the program, | 14 | | including program design, eligible electric energy efficiency | 15 | | measures, vendor qualifications, and a methodology for | 16 | | ensuring ongoing compliance with such qualifications, | 17 | | financing, sample documents such as request for proposals, | 18 | | contracts and agreements, dispute resolution, pre-installment | 19 | | and post-installment verification, and evaluation. The | 20 | | workshop process shall be completed within 150 days after the | 21 | | effective date of this amendatory Act of the 96th General | 22 | | Assembly. | 23 | | (c) Not later than 60 days following completion of the | 24 | | workshop process described in subsection (b-5) of this Section, | 25 | | each electric utility subject to subsection (b) of this Section | 26 | | shall submit a proposed program to the Commission that contains |
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| 1 | | the following components: | 2 | | (1) A list of recommended electric energy efficiency | 3 | | measures that will be eligible for on-bill financing. An | 4 | | eligible electric energy efficiency measure ("measure") | 5 | | shall be a product or service for which one or more of the | 6 | | following is true defined by the following : | 7 | | (A) (blank); the measure would be applied to or | 8 | | replace electric energy-using equipment; and either | 9 | | (B) the projected application of the measure to | 10 | | equipment and systems will have estimated electricity | 11 | | savings (determined by rates in effect at the time of | 12 | | purchase) , that are sufficient to cover the costs of | 13 | | implementing the measures, including finance charges | 14 | | and any program fees not recovered pursuant to | 15 | | subsection (f) of this Section ; to assist the electric | 16 | | utility in identifying or approving measures, the | 17 | | utility may consult with the Department of Commerce and | 18 | | Economic Opportunity, as well as with retailers, | 19 | | technicians, and installers of electric energy | 20 | | efficiency measures and energy auditors (collectively | 21 | | "vendors") ; or | 22 | | (C) the product or service measure is included in a | 23 | | Commission-approved energy efficiency and | 24 | | demand-response plan under Section 8-103 of this Act | 25 | | and is cost-effective as that term is defined by that | 26 | | Section . |
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| 1 | | (2) The electric utility shall issue a request for | 2 | | proposals ("RFP") to lenders for purposes of providing | 3 | | financing to participants to pay for approved measures. The | 4 | | RFP criteria shall include, but not be limited to, the | 5 | | interest rate, origination fees, and credit terms. The | 6 | | utility shall select the winning bidders based on its | 7 | | evaluation of these criteria, with a preference for those | 8 | | bids containing the rates, fees, and terms most favorable | 9 | | to participants; | 10 | | (3) The utility shall work with the lenders selected | 11 | | pursuant to the RFP process, and with vendors, to establish | 12 | | the terms and processes pursuant to which a participant can | 13 | | purchase eligible electric energy efficiency measures | 14 | | using the financing obtained from the lender. The vendor | 15 | | shall explain and offer the approved financing packaging to | 16 | | those customers identified in subsection (b) of this | 17 | | Section and shall assist customers in applying for | 18 | | financing. As part of the process, vendors shall also | 19 | | provide to participants information about any other | 20 | | incentives that may be available for the measures. | 21 | | (4) The lender shall conduct credit checks or undertake | 22 | | other appropriate measures to limit credit risk, and shall | 23 | | review and approve or deny financing applications | 24 | | submitted by customers identified in subsection (b) of this | 25 | | Section. Following the lender's approval of financing and | 26 | | the participant's purchase of the measure or measures, the |
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| 1 | | lender shall forward payment information to the electric | 2 | | utility, and the utility shall add as a separate line item | 3 | | on the participant's utility bill a charge showing the | 4 | | amount due under the program each month. | 5 | | (5) A loan issued to a participant pursuant to the | 6 | | program shall be the sole responsibility of the | 7 | | participant, and any dispute that may arise concerning the | 8 | | loan's terms, conditions, or charges shall be resolved | 9 | | between the participant and lender. Upon transfer of the | 10 | | property title for the premises at which the participant | 11 | | receives electric service from the utility or the | 12 | | participant's request to terminate service at such | 13 | | premises, the participant shall pay in full its electric | 14 | | utility bill, including all amounts due under the program, | 15 | | provided that this obligation may be modified as provided | 16 | | in subsection (g) of this Section. Amounts due under the | 17 | | program shall be deemed amounts owed for residential and, | 18 | | as appropriate, small commercial electric service. | 19 | | (6) The electric utility shall remit payment in full to | 20 | | the lender each month on behalf of the participant. In the | 21 | | event a participant defaults on payment of its electric | 22 | | utility bill, the electric utility shall continue to remit | 23 | | all payments due under the program to the lender, and the | 24 | | utility shall be entitled to recover all costs related to a | 25 | | participant's nonpayment through the automatic adjustment | 26 | | clause tariff established pursuant to Section 16-111.8 of |
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| 1 | | this Act. In addition, the electric utility shall retain a | 2 | | security interest in the measure or measures purchased | 3 | | under the program to the extent those measures are not | 4 | | integral to the shell of a building , and the utility | 5 | | retains its right to disconnect a participant that defaults | 6 | | on the payment of its utility bill. | 7 | | (7) The total outstanding amount financed under the | 8 | | programs in this subsection and subsection (c-5) of this | 9 | | Section program shall not exceed $2.5 million for an | 10 | | electric utility or electric utilities under a single | 11 | | holding company, provided that the electric utility or | 12 | | electric utilities may petition the Commission for an | 13 | | increase in such amount. | 14 | | (c-5) Within 60 days after the effective date of this | 15 | | amendatory Act of the 98th General Assembly, each covered | 16 | | electric utility shall submit a proposed program to the | 17 | | Commission that fully comports with the provisions of | 18 | | subsection (c) of this Section, with the following additional | 19 | | provision: an electric utility subject to this Section shall | 20 | | fully coordinate its program with any gas utility or utilities | 21 | | that provide gas service to buildings within the electric | 22 | | utility's service territory so that it is practical and | 23 | | feasible for the owner of a multifamily building to make a | 24 | | single application to access loans for both gas and electric | 25 | | energy efficiency measures in any individual building. | 26 | | (d) A program approved by the Commission shall also include |
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| 1 | | the following criteria and guidelines for such program: | 2 | | (1) guidelines for financing of measures installed | 3 | | under a program, including, but not limited to, RFP | 4 | | criteria and limits on both individual loan amounts and the | 5 | | duration of the loans; | 6 | | (2) criteria and standards for identifying and | 7 | | approving measures; | 8 | | (3) qualifications of vendors that will market or | 9 | | install measures, as well as a methodology for ensuring | 10 | | ongoing compliance with such qualifications; | 11 | | (4) sample contracts and agreements necessary to | 12 | | implement the measures and program; and | 13 | | (5) the types of data and information that utilities | 14 | | and vendors participating in the program shall collect for | 15 | | purposes of preparing the reports required under | 16 | | subsection (g) of this Section. | 17 | | (e) The proposed program submitted by each electric utility | 18 | | shall be consistent with the provisions of this Section that | 19 | | define operational, financial and billing arrangements between | 20 | | and among program participants, vendors, lenders, and the | 21 | | electric utility. | 22 | | (f) An electric utility shall recover all of the prudently | 23 | | incurred costs of offering a program approved by the Commission | 24 | | pursuant to this Section, including, but not limited to, all | 25 | | start-up and administrative costs and the costs for program | 26 | | evaluation. All prudently incurred costs under this Section |
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| 1 | | shall be recovered from the residential and small commercial | 2 | | retail customer classes eligible to participate in the program | 3 | | through the automatic adjustment clause tariff established | 4 | | pursuant to Section 8-103 of this Act. | 5 | | (g) An independent evaluation of a program shall be | 6 | | conducted after 3 years of the program's operation. The | 7 | | electric utility shall retain an independent evaluator who | 8 | | shall evaluate the effects of the measures installed under the | 9 | | program and the overall operation of the program, including , | 10 | | but not limited to , customer eligibility criteria and whether | 11 | | the payment obligation for permanent electric energy | 12 | | efficiency measures that will continue to provide benefits of | 13 | | energy savings should attach to the meter location. As part of | 14 | | the evaluation process, the evaluator shall also solicit | 15 | | feedback from participants and interested stakeholders. The | 16 | | evaluator shall issue a report to the Commission on its | 17 | | findings no later than 4 years after the date on which the | 18 | | program commenced, and the Commission shall issue a report to | 19 | | the Governor and General Assembly including a summary of the | 20 | | information described in this Section as well as its | 21 | | recommendations as to whether the program should be | 22 | | discontinued, continued with modification or modifications or | 23 | | continued without modification, provided that any recommended | 24 | | modifications shall only apply prospectively and to measures | 25 | | not yet installed or financed. | 26 | | (h) An electric utility offering a Commission-approved |
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| 1 | | program pursuant to this Section shall not be required to | 2 | | comply with any other statute, order, rule, or regulation of | 3 | | this State that may relate to the offering of such program, | 4 | | provided that nothing in this Section is intended to limit the | 5 | | electric utility's obligation to comply with this Act and the | 6 | | Commission's orders, rules, and regulations, including Part | 7 | | 280 of Title 83 of the Illinois Administrative Code. | 8 | | (i) The source of a utility customer's electric supply | 9 | | shall not disqualify a customer from participation in the | 10 | | utility's on-bill financing program. Customers of alternative | 11 | | retail electric suppliers may participate in the program under | 12 | | the same terms and conditions applicable to the utility's | 13 | | supply customers.
| 14 | | (Source: P.A. 96-33, eff. 7-10-09; 97-616, eff. 10-26-11.) | 15 | | (220 ILCS 5/19-140)
| 16 | | Sec. 19-140. On-bill financing program; gas utilities. | 17 | | (a) The Illinois General Assembly finds that Illinois homes | 18 | | and businesses have the potential to save energy through | 19 | | conservation and cost-effective energy efficiency measures. | 20 | | Programs created pursuant to this Section will allow utility | 21 | | customers to purchase cost-effective energy efficiency | 22 | | measures , including measures set forth in a | 23 | | Commission-approved energy efficiency and demand-response plan | 24 | | under Section 8-103 of this Act, with no required initial | 25 | | upfront payment, and to pay the cost of those products and |
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| 1 | | services over time on their utility bill. | 2 | | (b) Notwithstanding any other provision of this Act, a gas | 3 | | utility serving more than 100,000 customers on January 1, 2009 | 4 | | shall offer a Commission-approved on-bill financing program | 5 | | ("program") that allows its retail customers who own a | 6 | | residential single family home, duplex, or other residential | 7 | | building with 4 or less units, or condominium at which the gas | 8 | | service is being provided (i) to borrow funds from a third | 9 | | party lender in order to purchase gas energy efficiency | 10 | | measures approved under the program for installation in such | 11 | | home or condominium without any required upfront payment and | 12 | | (ii) to pay back such funds over time through the gas utility's | 13 | | bill. Based upon the process described in subsection (b-5) of | 14 | | this Section, small commercial retail customers , as that term | 15 | | is defined in Section 19-105 of this Act, who own the premises | 16 | | at which gas service is being provided may be included in such | 17 | | program. After receiving a request from a gas utility for | 18 | | approval of a proposed program and tariffs pursuant to this | 19 | | Section, the Commission shall render its decision within 120 | 20 | | days. If no decision is rendered within 120 days, then the | 21 | | request shall be deemed to be approved. | 22 | | Notwithstanding the provisions of the preceding paragraph, | 23 | | a gas utility serving more than 100,000 customers on or after | 24 | | January 1, 2013 shall offer a Commission-approved on-bill | 25 | | financing program to owners of multifamily residential or | 26 | | mixed-use buildings with 5 or more residential units no later |
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| 1 | | than December 31, 2013 under the processes described in | 2 | | subsection (c-5) of this Section. Owners of such buildings may | 3 | | not use the program in such a way that repayment of the cost of | 4 | | energy efficiency measures is made on the tenant's utility | 5 | | bills. | 6 | | (b-5) Within 30 days after the effective date of this | 7 | | amendatory Act of the 96th General Assembly, the Commission | 8 | | shall convene a workshop process during which interested | 9 | | participants may discuss issues related to the program, | 10 | | including program design, eligible gas energy efficiency | 11 | | measures, vendor qualifications, and a methodology for | 12 | | ensuring ongoing compliance with such qualifications, | 13 | | financing, sample documents such as request for proposals, | 14 | | contracts and agreements, dispute resolution, pre-installment | 15 | | and post-installment verification, and evaluation. The | 16 | | workshop process shall be completed within 150 days after the | 17 | | effective date of this amendatory Act of the 96th General | 18 | | Assembly. | 19 | | (c) Not later than 60 days following completion of the | 20 | | workshop process described in subsection (b-5) of this Section, | 21 | | each gas utility subject to subsection (b) of this Section | 22 | | shall submit a proposed program to the Commission that contains | 23 | | the following components: | 24 | | (1) A list of recommended gas energy efficiency | 25 | | measures that will be eligible for on-bill financing. An | 26 | | eligible gas energy efficiency measure ("measure") shall |
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| 1 | | be a product or service for which one or more of the | 2 | | following is true defined by the following : | 3 | | (A) (blank); The measure would be applied to or | 4 | | replace gas energy-using equipment; and | 5 | | (B) the projected Application of the measure to | 6 | | equipment and systems will have estimated gas savings | 7 | | (determined by rates in effect at the time of | 8 | | purchase) , that are sufficient to cover the costs of | 9 | | implementing the measures, including finance charges | 10 | | and any program fees not recovered pursuant to | 11 | | subsection (f) of this Section ; or . To assist the gas | 12 | | utility in identifying or approving measures, the | 13 | | utility may consult with the Department of Commerce and | 14 | | Economic Opportunity, as well as with retailers, | 15 | | technicians and installers of gas energy efficiency | 16 | | measures and energy auditors (collectively "vendors"). | 17 | | (C) the product or service is included in a
| 18 | | Commission-approved energy efficiency and | 19 | | demand-response plan under Section 8-104 of this Act. | 20 | | (2) The gas utility shall issue a request for proposals | 21 | | ("RFP") to lenders for purposes of providing financing to | 22 | | participants to pay for approved measures. The RFP criteria | 23 | | shall include, but not be limited to, the interest rate, | 24 | | origination fees, and credit terms. The utility shall | 25 | | select the winning bidders based on its evaluation of these | 26 | | criteria, with a preference for those bids containing the |
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| 1 | | rates, fees, and terms most favorable to participants. | 2 | | (3) The utility shall work with the lenders selected | 3 | | pursuant to the RFP process, and with vendors, to establish | 4 | | the terms and processes pursuant to which a participant can | 5 | | purchase eligible gas energy efficiency measures using the | 6 | | financing obtained from the lender. The vendor shall | 7 | | explain and offer the approved financing packaging to those | 8 | | customers identified in subsection (b) of this Section and | 9 | | shall assist customers in applying for financing. As part | 10 | | of such process, vendors shall also provide to participants | 11 | | information about any other incentives that may be | 12 | | available for the measures. | 13 | | (4) The lender shall conduct credit checks or undertake | 14 | | other appropriate measures to limit credit risk, and shall | 15 | | review and approve or deny financing applications | 16 | | submitted by customers identified in subsection (b) of this | 17 | | Section. Following the lender's approval of financing and | 18 | | the participant's purchase of the measure or measures, the | 19 | | lender shall forward payment information to the gas | 20 | | utility, and the utility shall add as a separate line item | 21 | | on the participant's utility bill a charge showing the | 22 | | amount due under the program each month. | 23 | | (5) A loan issued to a participant pursuant to the | 24 | | program shall be the sole responsibility of the | 25 | | participant, and any dispute that may arise concerning the | 26 | | loan's terms, conditions, or charges shall be resolved |
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| 1 | | between the participant and lender. Upon transfer of the | 2 | | property title for the premises at which the participant | 3 | | receives gas service from the utility or the participant's | 4 | | request to terminate service at such premises, the | 5 | | participant shall pay in full its gas utility bill, | 6 | | including all amounts due under the program, provided that | 7 | | this obligation may be modified as provided in subsection | 8 | | (g) of this Section. Amounts due under the program shall be | 9 | | deemed amounts owed for residential and, as appropriate, | 10 | | small commercial gas service. | 11 | | (6) The gas utility shall remit payment in full to the | 12 | | lender each month on behalf of the participant. In the | 13 | | event a participant defaults on payment of its gas utility | 14 | | bill, the gas utility shall continue to remit all payments | 15 | | due under the program to the lender, and the utility shall | 16 | | be entitled to recover all costs related to a participant's | 17 | | nonpayment through the automatic adjustment clause tariff | 18 | | established pursuant to Section 19-145 of this Act. In | 19 | | addition, the gas utility shall retain a security interest | 20 | | in the measure or measures purchased under the program to | 21 | | the extent those measures are not integral to the shell of | 22 | | the building , and the utility retains its right to | 23 | | disconnect a participant that defaults on the payment of | 24 | | its utility bill. | 25 | | (7) The total outstanding amount financed under the | 26 | | programs in this subsection and subsection (c-5) of this |
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| 1 | | Section program shall not exceed $2.5 million for a gas | 2 | | utility or gas utilities under a single holding company, | 3 | | provided that the gas utility or gas utilities may petition | 4 | | the Commission for an increase in such amount. | 5 | | (c-5) Within 60 days after the effective date of this | 6 | | amendatory Act of the 98th General Assembly, each covered gas | 7 | | utility shall submit a proposed program to the Commission that | 8 | | fully comports with the provisions of subsection (c) of this | 9 | | Section, with the following additional provision:
a gas utility | 10 | | subject to this Section shall fully coordinate its program with | 11 | | any electric utility or utilities that provide electric service | 12 | | to buildings within the gas utility's service territory so that | 13 | | is practical and feasible for the owner of a multifamily | 14 | | building to make a single application to access loans for both | 15 | | gas and electric energy efficiency measures in any individual | 16 | | building. | 17 | | (d) A program approved by the Commission shall also include | 18 | | the following criteria and guidelines for such program: | 19 | | (1) guidelines for financing of measures installed | 20 | | under a program, including, but not limited to, RFP | 21 | | criteria and limits on both individual loan amounts and the | 22 | | duration of the loans; | 23 | | (2) criteria and standards for identifying and | 24 | | approving measures; | 25 | | (3) qualifications of vendors that will market or | 26 | | install measures, as well as a methodology for ensuring |
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| 1 | | ongoing compliance with such qualifications; | 2 | | (4) sample contracts and agreements necessary to | 3 | | implement the measures and program; and | 4 | | (5) the types of data and information that utilities | 5 | | and vendors participating in the program shall collect for | 6 | | purposes of preparing the reports required under | 7 | | subsection (g) of this Section. | 8 | | (e) The proposed program submitted by each gas utility | 9 | | shall be consistent with the provisions of this Section that | 10 | | define operational, financial, and billing arrangements | 11 | | between and among program participants, vendors, lenders, and | 12 | | the gas utility. | 13 | | (f) A gas utility shall recover all of the prudently | 14 | | incurred costs of offering a program approved by the Commission | 15 | | pursuant to this Section, including, but not limited to, all | 16 | | start-up and administrative costs and the costs for program | 17 | | evaluation. All prudently incurred costs under this Section | 18 | | shall be recovered from the residential and small commercial | 19 | | retail customer classes eligible to participate in the program | 20 | | through the automatic adjustment clause tariff established | 21 | | pursuant to Section 8-104 of this Act. | 22 | | (g) An independent evaluation of a program shall be | 23 | | conducted after 3 years of the program's operation. The gas | 24 | | utility shall retain an independent evaluator who shall | 25 | | evaluate the effects of the measures installed under the | 26 | | program and the overall operation of the program, including, |
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| 1 | | but not limited to, customer eligibility criteria and whether | 2 | | the payment obligation for permanent gas energy efficiency | 3 | | measures that will continue to provide benefits of energy | 4 | | savings should attach to the meter location. As part of the | 5 | | evaluation process, the evaluator shall also solicit feedback | 6 | | from participants and interested stakeholders. The evaluator | 7 | | shall issue a report to the Commission on its findings no later | 8 | | than 4 years after the date on which the program commenced, and | 9 | | the Commission shall issue a report to the Governor and General | 10 | | Assembly including a summary of the information described in | 11 | | this Section as well as its recommendations as to whether the | 12 | | program should be discontinued, continued with modification or | 13 | | modifications or continued without modification, provided that | 14 | | any recommended modifications shall only apply prospectively | 15 | | and to measures not yet installed or financed. | 16 | | (h) A gas utility offering a Commission-approved program | 17 | | pursuant to this Section shall not be required to comply with | 18 | | any other statute, order, rule, or regulation of this State | 19 | | that may relate to the offering of such program, provided that | 20 | | nothing in this Section is intended to limit the gas utility's | 21 | | obligation to comply with this Act and the Commission's orders, | 22 | | rules, and regulations, including Part 280 of Title 83 of the | 23 | | Illinois Administrative Code. | 24 | | (i) The source of a utility customer's gas supply shall not | 25 | | disqualify a customer from participation in the utility's | 26 | | on-bill financing program. Customers of alternative gas |
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| 1 | | suppliers may participate in the program under the same terms | 2 | | and conditions applicable to the utility's supply customers.
| 3 | | (Source: P.A. 96-33, eff. 7-10-09.)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.".
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