HB5363 101ST GENERAL ASSEMBLY

LRB101 18659 SPS 68114 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5363

Introduced , by Rep. Lawrence Walsh, Jr.

SYNOPSIS AS INTRODUCED:

220 ILCS 5/8-406.2 new
220 ILCS 5/9-220.4 new

Amends the Public Utilities Act. Provides that a participating gas utility may elect to recover its natural gas utility service costs through a formula rate approved by the Illinois Commerce Commission. Provides that the Commission shall have the authority to conduct hearings concerning the prudence and reasonableness of the service costs incurred by the utility to be recovered. Provides that a gas public utility may apply for a certificate of public convenience and necessity to increase its gas service territory and extend its gas distribution system to serve a designated hardship area. Provides that the Illinois Commerce Commission shall, after notice and hearing, grant a certificate of public convenience and necessity if, based upon the application filed with the Commission and the evidentiary record, the Commission finds that specified criteria are satisfied. Provides that the Commission shall issue its decision with findings of fact and conclusions of law granting or denying the application no later than 120 days after the application is filed. Defines terms. Effective immediately.

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 adding Sections 8-406.2 and 9-220.4 as follows:

(220 ILCS 5/8-406.2 new)

Sec. 8-406.2. Certificate of public convenience and necessity; extension of utility service area and facilities to serve designated hardship areas.

(a) This Section is intended to provide a mechanism by which a gas public utility may extend its service territory and gas distribution system to provide service to designated low-income areas whose residents do not have access to natural gas service and must purchase more costly alternatives to satisfy their energy needs.

(b) For purposes of this Section:

(1) "Designated hardship area" means a defined geographic area described by the applicant gas utility that meets the following requirements:

(A) the area is designated as a qualified census tract by the U.S. Department of Housing and Urban Development as published in the most current Federal Register; if the U.S. Department of Housing and Urban Development ceases to make this designation, then at least 25% of the households in the area are at or below the poverty level; and

(B) the area is not currently served by a gas utility.

(2) "Hardship area facilities" means all gas distribution system facilities that are proposed to be constructed or extended and used to serve the designated hardship area, through and including retail gas meters. "Hardship area facilities" includes the capacity to address reasonably foreseeable growth in areas adjacent to or in the vicinity of the designated hardship area.

(c) A gas public utility may apply for a certificate of public convenience and necessity pursuant to this Section to increase its gas service territory and extend its gas distribution system to serve a designated hardship area. An application under this Section shall include all of the following:

(1) a description of the designated hardship area and its relationship to the existing gas distribution system of the applicant;

(2) a showing that the designated hardship area meets the criteria of paragraph (1) of subsection (b) of this Section;

(3) a description of the hardship area facilities proposed to serve the designated hardship area;

(4) a projection of the costs to construct and deploy the hardship area facilities;

(5) a statement indicating that the gas distribution utility has received written indications of interest from at least 50% of the customers within the boundaries of the designated hardship area demonstrating an interest shown in obtaining gas service; and

(6) a showing that the estimated cost to construct and deploy the hardship area facilities is equal to or less than 250% of the amount allowed under the gas utilities' then current tariffs to provide standard service to extend main and services.

(d) The Commission shall, after notice and hearing, grant a certificate of public convenience and necessity under this Section if, based upon the application filed with the Commission and the evidentiary record, the Commission finds that all of the following criteria are satisfied:

(1) the area to be served is a designated hardship area;

(2) the proposed hardship area facilities will provide adequate, reliable, and efficient gas delivery service to the customers within the designated hardship area and are the least-cost means of providing such gas delivery service to these customers;

(3) the public utility is capable of efficiently managing and supervising the construction of the hardship area facilities and has taken sufficient action to ensure adequate and efficient construction and supervision of the construction;

(4) the public utility is capable of financing the construction of the hardship area facilities without significant adverse financial consequences for the utility or its customers; and

(5) the estimated cost to construct and deploy the hardship area facilities is equal to or less than 250% of the amount allowed under the gas utilities then current tariffs to provide standard service to extend main and services.

(e) The Commission shall issue its decision with findings of fact and conclusions of law granting or denying the application no later than 120 days after the application is filed.

(220 ILCS 5/9-220.4 new)

Sec. 9-220.4. Natural gas utility formula rate.

(a) As used in this Section:

"Participating gas utility" means a public utility that provides natural gas distribution services to more than 150,000 retail customers in Illinois that voluntarily elects to participate.

"ICC Form 21" means the Annual Report of Electric Utilities and/or Natural Gas Utilities to the Illinois Commerce Commission that natural gas utilities are required to file with the Illinois Commerce Commission under Section 5-109 of the Public Utilities Act.

"FERC Form 1" means the Annual Report of Major Electric Utilities, Licensees and Others that electric utilities are required to file with the Federal Energy Regulatory Commission under the Federal Power Act, Sections 3, 4(a), 304, and 209, modified as necessary to be consistent with 83 Ill. Adm. Code 415 as of May 1, 2011.

"FERC Form 2" means the Annual Report of Major Natural Gas Companies that natural gas utilities are required to file with the Federal Energy Regulatory Commission under the Natural Gas Act, Sections 10(a) and 16, and 18 CFR Parts 260.1 and 260.300, modified as necessary to be consistent with 83 Ill. Adm. Code 505 as of August 1, 2019.

(b) A participating gas utility may elect to recover its natural gas delivery services costs through a formula rate approved by the Commission, which shall specify the cost components that form the basis of the rate charged to customers with sufficient specificity to operate in a standardized manner and be updated annually with transparent information that reflects the utility's actual costs to be recovered during the applicable rate year, which is the period beginning with the first billing day of January and extending through the last billing day of the following December.

If the participating gas utility recovers a portion of its costs through automatic adjustment clause tariffs other than those authorized by Section 9-220.3 of this Act on the effective date of this amendatory Act of the 101st General Assembly, the participating gas utility may elect to continue to recover these costs through such tariffs, but such costs shall not be recovered through the formula rate. Automatic adjustment clause tariffs providing for the recovery of costs that the participating gas utility elects to be included in the formula rate will be suspended by operation of law as of the effective date of the initial formula rate recovering such costs, provided that neither such suspension nor the formula rate shall alter or affect reconciling charges or credits under such automatic adjustment clause tariffs that arise from periods prior to the beginning of the first calendar year to be reconciled under subsection (c). Such suspended automatic adjustment clause tariffs shall again become effective, by operation of law and without any further order of the Commission, as of the date when a formula rate recovering such costs is no longer effective. If the participating gas utility, prior to the effective date of this amendatory Act of the 101st General Assembly, filed natural gas delivery services tariffs with the Commission pursuant to Section 9-201 of this Act that are still pending on the effective date of this amendatory Act of the 101st General Assembly, the participating gas utility shall, at the time it files its formula rate tariff with the Commission, also file a notice of withdrawal with the Commission to withdraw the natural gas delivery services tariffs previously filed in accordance with Section 9-201 of this Act. Upon receipt of such notice, the Commission shall dismiss with prejudice any docket that had been initiated to investigate the natural gas delivery services tariffs filed in accordance with Section 9-201, and such tariffs and the record related thereto shall not be the subject of any further hearing, investigation, or proceeding of any kind related to rates for natural gas delivery services.

The formula rate shall be implemented through a tariff filed with the Commission consistent with the provisions of this subsection (b) that shall be applicable to all natural gas delivery services customers. The Commission shall initiate and conduct an investigation of the tariff in a manner consistent with the provisions of this subsection (b) and the provisions of Article IX of this Act to the extent they do not conflict with this subsection (b). The formula rate shall remain in effect at the discretion of the utility.

The formula rate approved by the Commission shall do the following:

(1) Provide for the recovery of the utility's actual costs of natural gas delivery services that are prudently incurred and reasonable in amount consistent with Commission practice and law. The sole fact that a cost differs from that incurred in a prior calendar year or that an investment is different from that made in a prior calendar year shall not imply the imprudence or unreasonableness of that cost or investment.

(2) Reflect the utility's actual year-end capital structure for the applicable calendar year, excluding goodwill, unless that capital structure is shown to be imprudent and unreasonable consistent with Commission practice and law.

(3) Include a cost of equity, which shall be calculated as the sum of the following:

(A) the average for the applicable calendar year of the monthly average yields of 30-year U.S. Treasury bonds published by the Board of Governors of the Federal Reserve System in its weekly H.15 Statistical Release or successor publication multiplied by 0.59491; and

(B) 771.20 basis points.

At such time as the Board of Governors of the Federal Reserve System ceases to include the monthly average yields of 30-year U.S. Treasury bonds in its weekly H.15 Statistical Release or successor publication, the monthly average yields of the U.S. Treasury bonds then having the longest duration published by the Board of Governors in its weekly H.15 Statistical Release or successor publication shall instead be used for purposes of this paragraph (3).

(4) Permit and set forth protocols, subject to a determination of prudence and reasonableness consistent with Commission practice and law, for the following:

(A) irrespective of the form of the award, recovery of the expense of incentive compensation that is awarded based on non-financial criteria such as the achievement of operational metrics, including metrics related to budget controls, safety, customer service, efficiency and productivity, and environmental compliance. The expense of incentive compensation that is awarded based on net income or an affiliate's earnings per share shall not be recoverable under the formula rate;

(B) recovery of pension and other post-employment benefits expense, provided that such costs are supported by an actuarial study;

(C) recovery of severance costs, provided that if the amount is over $3,700,000, then the full amount shall be amortized consistent with subparagraph (F) of this paragraph (4);

(D) investment return at a rate equal to the participating gas utility's weighted average cost of long-term debt, on the pension assets as, and in the amount, reported in Account 182.3 and 186 (or in such other Account or Accounts as such asset may subsequently be recorded) of the utility's most recently filed ICC Form 21, FERC Form 2, or FERC Form 1 (to the extent applicable to gas delivery or common costs a portion of which are allocable to gas delivery), as applicable, net of deferred tax benefits;

(E) recovery of the expenses related to the Commission proceeding under this subsection (b) to approve this formula rate and initial rates or to subsequent proceedings related to the formula, provided that the recovery shall be amortized over a 3-year period; recovery of expenses related to the annual Commission proceedings under subsection (c) of this Section to review the inputs to the formula rate shall be expensed and recovered through the formula rate;

(F) amortization over a 5-year period of the full amount of each charge or credit that exceeds $3,700,000 and that relates to a workforce reduction program's severance costs, changes in accounting rules, changes in law, compliance with any Commission-initiated audit, or other similar expense, provided that any unamortized balance shall be reflected in rate base. For purposes of this subparagraph (F), changes in law includes any enactment, repeal, or amendment in a law, ordinance, rule, regulation, interpretation, permit, license, consent, or order, including those relating to taxes, accounting, or to environmental matters, or in the interpretation or application thereof by any governmental authority occurring after the effective date of this amendatory Act of the 101st General Assembly;

(G) recovery of existing regulatory assets over the periods previously authorized by the Commission;

(H) historical weather normalized billing determinants; and

(I) allocation methods for common costs.

(5) Provide for recovery of certain adjustments or additions to amounts included in the utility's ICC Form 21 as directed in the participating utility's most recent final Commission rate order relating to the following:

(A) additions to rate base that reflect an allocated portion of the plant assets on the books and records of an affiliated shared service company, subject to adjustments for associated accumulated depreciation and accumulated deferred income taxes, that are used to support the operations of the utility and represent assets that would otherwise be required if the utility were not receiving services from the shared service company;

(B) removal from rate base of any asset created to adjust the basis of the utility's natural gas inventory resulting from a decrement in inventory for tax purposes not reflected for the utility's book basis; and

(C) recovery of existing regulatory assets over the periods previously authorized by the Commission, including without limitation any regulatory asset created to amortize an allocable portion of the utility's shared service company's unrecognized gain or loss on pension and other post-employment benefits assets and prior service costs.

(6) Provide that if the participating gas utility's earned rate of return on common equity related to the provision of natural gas delivery services for the prior rate year (calculated using costs and capital structure approved by the Commission as provided in paragraphs (2) and (3) of this subsection (b), consistent with this Section, in accordance with Commission rules and orders, including, but not limited to, adjustments for goodwill, and after any Commission-ordered disallowances and taxes) is higher than the rate of return on common equity calculated pursuant to paragraph (3) of this subsection (b) then the participating utility shall apply a credit through the formula rate that reflects an amount equal to the value of that portion of the earned rate of return on common equity that is higher than the rate of return on common equity calculated pursuant to paragraph (3) of this subsection (b) for the prior rate year, adjusted for taxes. If the participating utility's earned rate of return on common equity related to the provision of natural gas delivery services for the prior rate year (calculated using costs and capital structure approved by the Commission as provided in paragraphs (2) and (3) of this subsection (b), consistent with this Section, in accordance with Commission rules and orders, including, but not limited to, adjustments for goodwill, and after any Commission-ordered disallowances and taxes) is less than the return on common equity calculated pursuant to paragraph (3) of this subsection (b), then the participating utility shall apply a charge through the formula rate that reflects an amount equal to the value of that portion of the earned rate of return on common equity that is less than the rate of return on common equity calculated pursuant to paragraph (3) of this subsection (b) for the prior rate year, adjusted for taxes.

(7) Provide for an annual reconciliation, as described in subsections (c) and (e) of this Section, with interest, of the revenue requirement reflected in rates for each calendar year, beginning with the calendar year in which the utility files its formula rate tariff pursuant to subsection (b) of this Section, with what the revenue requirement would have been had the actual cost information for the applicable calendar year been available at the filing date.

The participating gas utility shall file, together with its tariff, final data based on its most recently filed ICC Form 21 FERC Form 2, or FERC Form 1 (to the extent applicable to gas delivery or common costs a portion of which are allocable to gas delivery), as applicable, subject to the adjustments specified in subsection (b), plus projected plant additions and correspondingly updated depreciation reserve and expense for the calendar year in which the tariff and data are filed, that shall populate the formula rate and set the initial natural gas delivery services rates under the formula. The participating gas utility may also file revisions to other tariffs then in effect that refer to a base rate or base rate case to conform those references to the applicable formula rates or rate setting process. Any changes taking effect after December 31, 2019 to the manner in which costs, revenues, assets, and liabilities are classified, characterized, or allocated for the purposes of reporting on ICC Form 21 shall be incorporated into the formula rate only if those changes are consistent with the manner in which those costs, revenues, assets, and liabilities be classified, characterized, or allocated for the purposes of reporting on FERC Form 2 or FERC Form 1 (to the extent applicable to gas delivery or common costs a portion of which are allocable to gas delivery). Nothing in this Section is intended to allow costs that are not otherwise recoverable to be recoverable by virtue of inclusion in ICC Form 21, FERC Form 2, or FERC Form 1 (to the extent applicable to gas delivery or common costs a portion of which are allocable to gas delivery), as applicable.

After the participating gas utility files its proposed formula rate structure and protocols and initial rates, the Commission shall initiate a docket to review the filing. The Commission shall enter an order approving, or approving as modified, the formula rate structure and protocols, the initial rates, and any conforming revisions to other tariffs as just and reasonable within 270 days after the date on which the tariff was filed. Such review shall be based on the same evidentiary standards, including, but not limited to, those concerning the prudence and reasonableness of the costs incurred by the utility, the Commission applies in a hearing to review a filing for a general increase in rates under Article IX of this Act. The formula rate structure and protocols, initial rates, and any conforming revisions to other tariffs shall take effect within 30 days after the Commission's order approving the formula rate tariff.

Until the Commission approves a different rate design and cost allocation pursuant to subsection (d) of this Section, rate design and cost allocation across customer classes shall be consistent with the Commission's most recent order regarding the participating utility's request for a general increase in its delivery services rates.

Subsequent changes to the formula rate structure or protocols shall be made as set forth in Section 9-201 of this Act, but nothing in this subsection (b) is intended to limit the Commission's authority under Article IX and other provisions of this Act to initiate an investigation of a participating gas utility's formula rate tariff, provided that any such changes shall be consistent with paragraphs (1) through (7) of this subsection (b). Any change ordered by the Commission shall be made at the same time new rates take effect following the Commission's next order in accordance with subsection (c) of this Section, provided that the new rates take effect no less than 30 days after the date on which the Commission issues an order adopting the change.

If the formula rate is terminated, the then current rates shall remain in effect until new rates are set in accordance with Article IX of this Act, subject to retroactive rate adjustment, with interest, to reconcile rates charged with actual costs.

(c) Subsequent to the Commission's issuance of an order approving the participating gas utility's formula rate structure and protocols, and initial rates under subsection (b) of this Section, the participating gas utility shall file, on or before May 1 of each year, with the Chief Clerk of the Commission its updated cost inputs to the formula rate for the applicable rate year and the corresponding new charges. Each such filing shall conform to the following requirements and include the following information:

(1) The inputs to the formula rate for the applicable rate year shall be based on final historical data reflected in the participating gas utility's most recently filed annual ICC Form 21, FERC Form 2, or FERC Form 1 (to the extent applicable to gas delivery or common costs a portion of which are allocable to gas delivery), as applicable, subject to adjustments specified in subsection (b) of this Act, plus projected plant additions and correspondingly updated depreciation reserve and expense for the calendar year in which the inputs are filed. The filing shall also include a reconciliation of the revenue requirement that was in effect for the prior rate year (as set by the cost inputs for the prior rate year) with the actual revenue requirement for the prior rate year (determined using a year-end rate base) that uses amounts reflected in the applicable ICC Form 21, FERC Form 2, or FERC Form 1 (to the extent applicable to gas delivery or common costs a portion of which are allocable to gas delivery), as applicable, subject to adjustments specified in subsection (b) of this Act, that reports the actual costs for the prior rate year. Any over-collection or under-collection indicated by such reconciliation shall be reflected as a credit against, or recovered as an additional charge to, respectively, with interest calculated at a rate equal to the participating gas utility's weighted average cost of capital approved by the Commission for the prior rate year, the charges for the applicable rate year. Provided, however, that the reconciliations of the revenue requirement that was in effect for a calendar year in which the participating gas utility did not have a formula rate tariff approved in accordance with subsection (b) of this Section effective throughout the calendar year shall reconcile (i) the sum of (x) the base rate revenue requirement or requirements established by the rate order or orders in effect from time to time during such calendar year (weighted, as applicable), (y) the amount collected by the participating gas utility via a surcharge tariff in accordance with Section 9-220.3 of the Act during such calendar year on account of qualifying infrastructure investment (as that term is defined in subsection (b) of Section 9-220.3) that occurred during such calendar year, and (z) the total amount collected under other automatic adjustment clause tariffs that the participating gas utility elects to be included in the formula rate excluding any reconciliation charges or credits applicable to periods prior to the beginning of the first calendar year to be reconciled under subsection (c); with (ii) the revenue requirement determined using a year-end rate base for that calendar year calculated pursuant to the formula rate using actual costs for that year as reflected in the applicable ICC Form 21, FERC Form 2, or FERC Form 1 (to the extent applicable to gas delivery or common costs a portion of which are allocable to gas delivery), as applicable, subject to adjustments specified in subsection (b). Such reconciliations are not intended to provide for the recovery of costs previously excluded from rates based on a prior Commission order finding of imprudence or unreasonableness. Each reconciliation shall be certified by the participating gas utility in the same manner that ICC Form 21, FERC Form 2, or FERC Form 1 (to the extent applicable to gas delivery or common costs a portion of which are allocable to gas delivery), as applicable, is certified. The filing shall also include the charge or credit, if any, resulting from the calculation required by paragraph (7) of subsection (b) of this Section. Notwithstanding anything that may be to the contrary, the intent of the reconciliation is to ultimately reconcile the revenue requirement reflected in base rates, revenues collected under surcharge tariffs in accordance with Section 9-220.3 of this Act to the extent related to investment in the plant that occurred during such calendar year, and revenues collected under other automatic adjustment tariffs that the utility elects to include in formula rates (excluding reconciling charges or credits arising from prior years) beginning with the calendar year in which the participating gas utility files its formula rate tariff in accordance with subsection (b) of this Section, with what the revenue requirement determined using a year-end rate base for the applicable calendar year would have been had the actual cost information for the applicable calendar year been available at the filing date.

(2) The new charges shall take effect beginning on the first billing day of the following January billing period and remain in effect through the last billing day of the next December billing period regardless of whether the Commission enters upon a hearing in accordance with this subsection (c).

(3) The filing shall include relevant and necessary data and documentation for the applicable rate year that is consistent with the Commission's rules applicable to a filing for a general increase in rates or any rules adopted by the Commission to implement this Section. Normalization adjustments shall not be required. Notwithstanding any other provision of this Section or Act or any rule or other requirement adopted by the Commission, a participating gas utility with more than one rate zone shall not be required to file a separate set of such data and documentation for each rate zone and may combine such data and documentation into a single set of schedules.

Within 45 days after the participating gas utility files its annual update of cost inputs to the formula rate, the Commission shall have the authority, either upon complaint or its own initiative, but with reasonable notice, to enter upon a hearing concerning the prudence and reasonableness of the costs incurred by the utility to be recovered during the applicable rate year that are reflected in the inputs to the formula rate derived from the utility's ICC Form 21, FERC Form 2, or FERC Form 1 (to the extent applicable to gas delivery or common costs a portion of which are allocable to gas delivery), as applicable, subject to adjustments specified in subsection (b) of this Act. During the course of the hearing, each objection shall be stated with particularity and evidence provided in support thereof, after which the utility shall have the opportunity to rebut the evidence. Discovery shall be allowed consistent with the Commission's Rules of Practice, which Rules shall be enforced by the Commission or the assigned administrative law judge. The Commission shall apply the same evidentiary standards, including, but not limited to, those concerning the prudence and reasonableness of the costs incurred by the participating gas utility, in the hearing as it would apply in a hearing to review a filing for a general increase in rates under Article IX of this Act. The Commission shall not, however, have the authority in a proceeding under this subsection (c) to consider or order any changes to the structure or protocols of the formula rate approved in accordance with subsection (b) of this Section. In a proceeding under this subsection (c), the Commission shall enter its order no later than the earlier of 240 days after the utility's filing of its annual update of cost inputs to the formula rate or December 31. The Commission's determinations of the prudence and reasonableness of the costs incurred for the applicable calendar year shall be final upon entry of the Commission's order and shall not be subject to reopening, reexamination, or collateral attack in any other Commission proceeding, case, docket, order, rule or regulation, provided, however, that nothing in this subsection (c) shall prohibit a party from petitioning the Commission to rehear or appeal to the courts the order pursuant to the provisions of this Act.

If the Commission does not, either upon complaint or its own initiative, enter upon a hearing within 45 days after the utility files the annual update of cost inputs to its formula rate, then the costs incurred for the applicable calendar year shall be deemed prudent and reasonable, and the filed charges shall not be subject to reopening, reexamination, or collateral attack in any other proceeding, case, docket, order, rule, or regulation.

A participating gas utility's first filing of the updated cost inputs, and any Commission investigation of such inputs in accordance with this subsection (c) shall proceed notwithstanding the fact that the Commission's investigation under subsection (b) of this Section is still pending and notwithstanding any other law, order, rule, or Commission practice to the contrary.

(d) Nothing in subsections (b) and (c) shall prohibit the Commission from investigating, or a participating gas utility from filing, revenue-neutral tariff changes related to rate design of a formula rate that has been placed into effect for the utility. Following approval of a participating gas utility's formula rate tariff in accordance with subsection (b), the utility shall make a filing with the Commission within one year after the effective date of the formula rate tariff that proposes changes to the tariff to incorporate the findings of any final rate design orders of the Commission applicable to the participating gas utility and entered subsequent to the Commission's approval of the tariff. The Commission shall, after notice and hearing, enter its order approving, or approving with modification, the proposed changes to the formula rate tariff within 240 days after the utility's filing. Following such approval, the utility shall make a filing with the Commission during each subsequent 3-year period that either proposes revenue-neutral tariff changes or re-files the existing tariffs without change, which shall present the Commission with an opportunity to suspend the tariffs and consider revenue-neutral tariff changes related to rate design.

(e) Any surcharge tariff of a participating gas utility authorized by paragraph (3) of subsection (a) of Section 9-220.3 which is in effect as of the effective date of the formula rate tariff approved by the Commission for that utility in accordance with the provisions of this Section will be suspended by operation of law as of the effective date of that formula rate tariff. Notwithstanding anything in paragraph (4) of subsection (a) of Section 9-220.3 and paragraph (2) of subsection (e) of Section 9-220.3, a participating gas utility shall not file a petition to initiate a final reconciliation of amounts collected under such a surcharge tariff on account of qualifying infrastructure investment (as that term is defined in subsection (b) of Section 9-220.3) that occurred during any calendar year for which a reconciliation will be made under subsection (c), and no adjustment to the participating gas utility's initial rates as calculated under paragraph (1) of subsection (c) shall be made based on the fact that the utility had such a tariff in effect or recovered any portion of its revenue requirement through such a tariff.

(f) The provisions of this Section are severable under Section 1.31 of the Statute on Statutes.

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