093_HB2380 LRB093 09192 JLS 09424 b 1 AN ACT concerning public utilities. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Finance Act is amended by adding 5 Section 5.595 as follows: 6 (30 ILCS 105/5.595 new) 7 Sec. 5.595. The Universal Service Surcharge Fund. 8 Section 10. The Public Utilities Act is amended by 9 adding Sections 8-207.5 and 9-222.4 as follows: 10 (220 ILCS 5/8-207.5 new) 11 Sec. 8-207.5. Percentage of Income Payment Plan. 12 (a) An electric or gas public utility that provides 13 service to consumers in Illinois shall participate in the 14 Percentage of Income Payment Plan established under the 15 Energy Assistance Act of 1989. 16 (b) As a part of the percentage of income payment plan, 17 an electric or gas public utility shall establish and 18 implement an arrearage forgiveness program for consumers who 19 are participating in the plan. The arrearage forgiveness 20 program shall provide that one-twelfth of a participant's 21 arrearage shall be forgiven for every 3 months of 22 participation in the plan. 23 (c) Notwithstanding any other provision of this Act, an 24 electric or gas public utility may not disconnect service to 25 any residential customer who is a participant in the 26 Percentage of Income Payment Plan. 27 (220 ILCS 5/9-222.4 new) 28 Sec. 9-222.4. Universal Service Fund Surcharge. -2- LRB093 09192 JLS 09424 b 1 (a) The Commission shall establish a surcharge 2 (universal service rider) to be imposed by a public utility 3 upon gas and electricity service provided to consumers in 4 this State. The amount that may be recovered under the 5 universal service rider for a given year shall be limited to 6 the amount by which the cost of gas or electricity provided 7 to consumers participating in the Percentage of Income 8 Payment Plan exceeds the amount paid by those consumers for 9 gas or electricity. The amount of the surcharge shall be 10 adjusted each year to reflect the actual costs incurred 11 during the previous year. 12 (b) Moneys received under the universal service rider 13 shall be paid to the Commission and deposited into the 14 Universal Service Surcharge Fund, a special fund hereby 15 created in the State Treasury. Subject to appropriation, the 16 moneys in the Universal Service Surcharge Fund shall be used 17 to pay providers of gas or electricity the amount by which 18 the cost of gas or electricity provided to consumers 19 participating in the Percentage of Income Payment Plan 20 exceeded the amount paid by those consumers to the provider 21 for that gas or electricity. 22 Section 15. The Energy Assistance Act of 1989 is amended 23 by adding Section 4.5 as follows: 24 (305 ILCS 20/4.5 new) 25 Sec. 4.5. Percentage of Income Payment Plan. 26 (a) In addition to the energy assistance program 27 established under Section 4, the Department shall institute a 28 Percentage of Income Payment Plan to further ensure the 29 availability of heating and electric service to low income 30 citizens. The Department shall implement the plan by rule. 31 The plan shall be consistent with the objectives of this 32 Section. The Department shall ensure that the plan is in -3- LRB093 09192 JLS 09424 b 1 operation by November 1, 2004, and may enter into such 2 contracts and other agreements with local agencies as may be 3 necessary for the purpose of administering the plan. 4 (b) The plan shall be coordinated with the energy 5 assistance program. Application for benefits shall be made 6 jointly for both the Percentage of Income Payment Plan and 7 the energy assistance program. An applicant for the 8 Percentage of Income Payment Plan must also apply for the 9 energy assistance program. In determining benefit 10 distribution under the energy assistance program and the 11 Percentage of Income Payment Plan, the Department shall 12 consider utility prices, household size, income, and 13 geographic location. The amounts distributed under the energy 14 assistance program shall not exceed 40% of energy costs for 15 the lowest income level of eligible households nor 15% of 16 energy costs for the highest income level of eligible 17 households. 18 (c) In order to be eligible for the Percentage of Income 19 Payment Plan, an applicant must have a household income that 20 is at or below 150% of the federal poverty level. A resident 21 eligible to participate in the plan shall be required to pay 22 no more than 6% of his or her annual income for gas and 23 electric service. A resident whose household income is at or 24 below 50% of the federal poverty level shall be required to 25 pay no more than 3% of his or her annual income for gas and 26 electric service. For purposes of this subsection, a 27 consumer's annual gas and electric costs shall be determined 28 after deducting any amounts the consumer receives under the 29 energy assistance program and all other energy assistance 30 programs.