Bill Text: IL HB3038 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Public Utilities Act. Provides that an electric utility with more than 100,000 customers shall not purchase any receivable priced at a higher price than is obtained for consumers through the power procurement process provided under specified provisions of the Act. Provides that only those amounts equal to and less than the price obtained for consumers in the Illinois Power Agency procurement process shall be purchased by an electric utility with more than 100,000 customers and that any costs to the utility associated with this requirement shall be recovered from participating alternative retail electric suppliers. Makes conforming changes. Effective immediately.

Spectrum: Strong Partisan Bill (Democrat 19-2)

Status: (Introduced) 2017-03-31 - Rule 19(a) / Re-referred to Rules Committee [HB3038 Detail]

Download: Illinois-2017-HB3038-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3038

Introduced , by Rep. Theresa Mah

SYNOPSIS AS INTRODUCED:
220 ILCS 5/16-118

Amends the Public Utilities Act. Provides that an electric utility with more than 100,000 customers shall not purchase any receivable priced at a higher price than is obtained for consumers through the power procurement process provided under specified provisions of the Act. Provides that only those amounts equal to and less than the price obtained for consumers in the Illinois Power Agency procurement process shall be purchased by an electric utility with more than 100,000 customers and that any costs to the utility associated with this requirement shall be recovered from participating alternative retail electric suppliers. Makes conforming changes. Effective immediately.
LRB100 10219 RJF 20401 b

A BILL FOR

HB3038LRB100 10219 RJF 20401 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Public Utilities Act is amended by changing
5Section 16-118 as follows:
6 (220 ILCS 5/16-118)
7 Sec. 16-118. Services provided by electric utilities to
8alternative retail electric suppliers.
9 (a) It is in the best interest of Illinois energy consumers
10to promote fair and open competition in the provision of
11electric power and energy and to prevent anticompetitive
12practices in the provision of electric power and energy.
13Therefore, to the extent an electric utility provides electric
14power and energy or delivery services to alternative retail
15electric suppliers and such services are not subject to the
16jurisdiction of the Federal Energy Regulatory Commission, and
17are not competitive services, they shall be provided through
18tariffs that are filed with the Commission, pursuant to Article
19IX of this Act. Each electric utility shall permit alternative
20retail electric suppliers to interconnect facilities to those
21owned by the utility provided they meet established standards
22for such interconnection, and may provide standby or other
23services to alternative retail electric suppliers. The

HB3038- 2 -LRB100 10219 RJF 20401 b
1alternative retail electric supplier shall sign a contract
2setting forth the prices, terms and conditions for
3interconnection with the electric utility and the prices, terms
4and conditions for services provided by the electric utility to
5the alternative retail electric supplier in connection with the
6delivery by the electric utility of electric power and energy
7supplied by the alternative retail electric supplier.
8 (b) An electric utility shall file a tariff pursuant to
9Article IX of the Act that would allow alternative retail
10electric suppliers or electric utilities other than the
11electric utility in whose service area retail customers are
12located to issue single bills to the retail customers for both
13the services provided by such alternative retail electric
14supplier or other electric utility and the delivery services
15provided by the electric utility to such customers. The tariff
16filed pursuant to this subsection shall (i) require partial
17payments made by retail customers to be credited first to the
18electric utility's tariffed services, (ii) impose commercially
19reasonable terms with respect to credit and collection,
20including requests for deposits, (iii) retain the electric
21utility's right to disconnect the retail customers, if it does
22not receive payment for its tariffed services, in the same
23manner that it would be permitted to if it had billed for the
24services itself, and (iv) require the alternative retail
25electric supplier or other electric utility that elects the
26billing option provided by this tariff to include on each bill

HB3038- 3 -LRB100 10219 RJF 20401 b
1to retail customers an identification of the electric utility
2providing the delivery services and a listing of the charges
3applicable to such services. The tariff filed pursuant to this
4subsection may also include other just and reasonable terms and
5conditions. In addition, an electric utility, an alternative
6retail electric supplier or electric utility other than the
7electric utility in whose service area the customer is located,
8and a customer served by such alternative retail electric
9supplier or other electric utility, may enter into an agreement
10pursuant to which the alternative retail electric supplier or
11other electric utility pays the charges specified in Section
1216-108, or other customer-related charges, including taxes and
13fees, in lieu of such charges being recovered by the electric
14utility directly from the customer.
15 (c) An electric utility with more than 100,000 customers
16shall file a tariff pursuant to Article IX of this Act that
17provides alternative retail electric suppliers, and electric
18utilities other than the electric utility in whose service area
19the retail customers are located, with the option to have the
20electric utility purchase their receivables for power and
21energy service provided to residential retail customers and
22non-residential retail customers with a non-coincident peak
23demand of less than 400 kilowatts. However, an electric utility
24with more than 100,000 customers shall not purchase any
25receivable priced at a higher price than is obtained for
26consumers through the power procurement process provided under

HB3038- 4 -LRB100 10219 RJF 20401 b
1Section 16-111.5 of this Act. Only those amounts equal to and
2less than the price obtained for consumers in the Illinois
3Power Agency procurement process provided under Section
416-111.5 shall be purchased by an electric utility with more
5than 100,000 customers. Any costs to the utility associated
6with this requirement shall be recovered from participating
7alternative retail electric suppliers. Receivables for power
8and energy service of alternative retail electric suppliers or
9electric utilities other than the electric utility in whose
10service area the retail customers are located shall be
11purchased by the electric utility at a just and reasonable
12discount rate to be reviewed and approved by the Commission
13after notice and hearing. The discount rate shall be based on
14the electric utility's historical bad debt and any reasonable
15start-up costs and administrative costs associated with the
16electric utility's purchase of receivables. The discounted
17rate for purchase of receivables shall be included in the
18tariff filed pursuant to this subsection (c). The discount rate
19filed pursuant to this subsection (c) shall be subject to
20periodic Commission review. The electric utility retains the
21right to impose the same terms on retail customers with respect
22to credit and collection, including requests for deposits, and
23retain the electric utility's right to disconnect the retail
24customers, if it does not receive payment for its tariffed
25services or purchased receivables, in the same manner that it
26would be permitted to if the retail customers purchased power

HB3038- 5 -LRB100 10219 RJF 20401 b
1and energy from the electric utility. The tariff filed pursuant
2to this subsection (c) shall permit the electric utility to
3recover from retail customers any uncollected receivables that
4may arise as a result of the purchase of receivables under this
5subsection (c); however, the uncollected receivables shall not
6exceed the price obtained for consumers through the Illinois
7Power Agency procurement process provided under Section
816-111.5 of this Act, and , may also include other just and
9reasonable terms and conditions, and shall provide for the
10prudently incurred costs associated with the provision of this
11service pursuant to this subsection (c). Nothing in this
12subsection (c) permits the double recovery of bad debt expenses
13from customers.
14 (d) An electric utility with more than 100,000 customers
15shall file a tariff pursuant to Article IX of this Act that
16would provide alternative retail electric suppliers or
17electric utilities other than the electric utility in whose
18service area retail customers are located with the option to
19have the electric utility produce and provide single bills to
20the retail customers for both the electric power and energy
21service provided by the alternative retail electric supplier or
22other electric utility and the delivery services provided by
23the electric utility to the customers. The tariffs filed
24pursuant to this subsection shall require the electric utility
25to collect and remit customer payments for electric power and
26energy service provided by alternative retail electric

HB3038- 6 -LRB100 10219 RJF 20401 b
1suppliers or electric utilities other than the electric utility
2in whose service area retail customers are located. The tariff
3filed pursuant to this subsection shall require the electric
4utility to include on each bill to retail customers an
5identification of the alternative retail electric supplier or
6other electric utility that elects the billing option. The
7tariff filed pursuant to this subsection (d) may also include
8other just and reasonable terms and conditions and shall
9provide for the recovery of prudently incurred costs associated
10with the provision of service pursuant to this subsection (d).
11The costs associated with the provision of service pursuant to
12this Section shall be subject to periodic Commission review.
13 (e) An electric utility with more than 100,000 customers in
14this State shall file a tariff pursuant to Article IX of this
15Act that provides alternative retail electric suppliers, and
16electric utilities other than the electric utility in whose
17service area the retail customers are located, with the option
18to have the electric utility purchase 2 billing cycles worth of
19uncollectible receivables for power and energy service
20provided to residential retail customers and to
21non-residential retail customers with a non-coincident peak
22demand of less than 400 kilowatts upon returning that customer
23to that electric utility for delivery and energy service after
24that alternative retail electric supplier, or an electric
25utility other than the electric utility in whose service area
26the retail customer is located, has made reasonable collection

HB3038- 7 -LRB100 10219 RJF 20401 b
1efforts on that account. However, uncollectible receivables
2shall not exceed the price obtained for consumers through the
3Illinois Power Agency procurement process provided under
4Section 16-111.5 of this Act, and uncollectible Uncollectible
5receivables for power and energy service of alternative retail
6electric suppliers, or electric utilities other than the
7electric utility in whose service area the retail customers are
8located, shall be purchased by the electric utility at a just
9and reasonable discount rate to be reviewed and approved by the
10Commission, after notice and hearing. The discount rate shall
11be based on the electric utility's historical bad debt for
12receivables that are outstanding for a similar length of time
13and any reasonable start-up costs and administrative costs
14associated with the electric utility's purchase of
15receivables. The discounted rate for purchase of uncollectible
16receivables shall be included in the tariff filed pursuant to
17this subsection (e). The electric utility retains the right to
18impose the same terms on these retail customers with respect to
19credit and collection, including requests for deposits, and
20retains the right to disconnect these retail customers, if it
21does not receive payment for its tariffed services or purchased
22receivables, in the same manner that it would be permitted to
23if the retail customers had purchased power and energy from the
24electric utility. The tariff filed pursuant to this subsection
25(e) shall permit the electric utility to recover from retail
26customers any uncollectible uncollectable receivables that may

HB3038- 8 -LRB100 10219 RJF 20401 b
1arise as a result of the purchase of uncollectible receivables
2under this subsection (e); however, the uncollectible
3receivables shall not exceed the price obtained for consumers
4through the Illinois Power Agency procurement process provided
5under Section 16-111.5 of this Act, and , may also include other
6just and reasonable terms and conditions, and shall provide for
7the prudently incurred costs associated with the provision of
8this service pursuant to this subsection (e). Nothing in this
9subsection (e) permits the double recovery of utility bad debt
10expenses from customers. The electric utility may file a joint
11tariff for this subsection (e) and subsection (c) of this
12Section.
13(Source: P.A. 95-700, eff. 11-9-07.)
14 Section 99. Effective date. This Act takes effect upon
15becoming law.
feedback