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1 | AN ACT concerning public utilities.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Public Utilities Act is amended by adding | ||||||||||||||||||||||||||||||||||
5 | Sections 5-108.1, 8-207.2, 8-207.5, and 8-306 as follows: | ||||||||||||||||||||||||||||||||||
6 | (220 ILCS 5/5-108.1 new) | ||||||||||||||||||||||||||||||||||
7 | Sec. 5-108.1. Report. Every public utility that provides | ||||||||||||||||||||||||||||||||||
8 | gas or electric service to residential customers as primary or | ||||||||||||||||||||||||||||||||||
9 | secondary sources of heating or cooling must report all of the | ||||||||||||||||||||||||||||||||||
10 | following information annually in writing to the Illinois | ||||||||||||||||||||||||||||||||||
11 | Commerce Commission: | ||||||||||||||||||||||||||||||||||
12 | (1) The number of accounts that are past due each | ||||||||||||||||||||||||||||||||||
13 | month.
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14 | (2) The aggregate amount of past due balances each | ||||||||||||||||||||||||||||||||||
15 | month. | ||||||||||||||||||||||||||||||||||
16 | (3) The number of disconnection notices issued to | ||||||||||||||||||||||||||||||||||
17 | residential customers each month. | ||||||||||||||||||||||||||||||||||
18 | (4) The number of residential customers disconnected | ||||||||||||||||||||||||||||||||||
19 | each month. | ||||||||||||||||||||||||||||||||||
20 | (5) The number of residential customers eligible for | ||||||||||||||||||||||||||||||||||
21 | emergency services under the Energy Assistance Act each | ||||||||||||||||||||||||||||||||||
22 | year. | ||||||||||||||||||||||||||||||||||
23 | (6) The aggregate amount of arrears that are written | ||||||||||||||||||||||||||||||||||
24 | off as bad business debt each year.
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25 | (220 ILCS 5/8-207.2 new)
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26 | Sec. 8-207.2. Reconnection of LIHEAP-eligible households. | ||||||||||||||||||||||||||||||||||
27 | Notwithstanding any other provision of this Act, a utility must | ||||||||||||||||||||||||||||||||||
28 | reconnect service to LIHEAP-eligible households whose service | ||||||||||||||||||||||||||||||||||
29 | was disconnected for nonpayment if the consumer (i) pays 20% of | ||||||||||||||||||||||||||||||||||
30 | the outstanding bill for the household or $250, whichever is | ||||||||||||||||||||||||||||||||||
31 | less or (ii) agrees a payment plan negotiated with the public |
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1 | utility by the local area agency on behalf of the consumer. | ||||||
2 | Before reconnecting service a utility shall not impose any | ||||||
3 | other condition upon a LIHEAP-eligible household except those | ||||||
4 | provided in this subsection. | ||||||
5 | (220 ILCS 5/8-207.5 new) | ||||||
6 | Sec. 8-207.5. Percentage of Income Payment Plan.
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7 | (a) An electric or gas public utility that provides service | ||||||
8 | to consumers in Illinois must participate in the Percentage of | ||||||
9 | Income Payment Plan established under the Energy Assistance | ||||||
10 | Act. | ||||||
11 | (b) As a part of the Percentage of Income Payment Plan, an | ||||||
12 | electric or gas public utility must establish and implement an | ||||||
13 | arrearage reduction program for consumers who are | ||||||
14 | participating in the Plan. The arrearage reduction program | ||||||
15 | shall provide that one-tenth of a participant's arrearage shall | ||||||
16 | be reduced for every 3 months of timely monthly payments under | ||||||
17 | the Plan. | ||||||
18 | (c) Notwithstanding any other provision of this Act, an | ||||||
19 | electric or gas public utility may not disconnect service to | ||||||
20 | any residential customer who is a participant in the Percentage | ||||||
21 | of Income Payment Plan. | ||||||
22 | (220 ILCS 5/8-306 new)
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23 | Sec. 8-306. Bad business debt. If a public utility writes | ||||||
24 | off uncollectable account arrearages as a bad business debt on | ||||||
25 | its State or federal income tax return, the utility shall cease | ||||||
26 | all collection activities for that debt and write the | ||||||
27 | indebtedness off of its books. | ||||||
28 | Section 10. The Energy Assistance Act is amended by | ||||||
29 | changing Section 13 and by adding Section 4.5 as follows: | ||||||
30 | (305 ILCS 20/4.5 new) | ||||||
31 | Sec. 4.5. Percentage of Income Payment Plan.
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32 | (a) As part of the energy assistance program established |
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1 | under Section 4, the Department must institute a Percentage of | ||||||
2 | Income Payment Plan to further ensure the availability of | ||||||
3 | heating, cooling, and electric service to low income citizens. | ||||||
4 | The Department shall implement the Plan by rule. The Plan shall | ||||||
5 | be consistent with the objectives of this Section. The | ||||||
6 | Department shall ensure that the Plan is in operation by | ||||||
7 | November 1, 2005, and may enter into such contracts and other | ||||||
8 | agreements with local agencies as may be necessary for the | ||||||
9 | purpose of administering the Plan. | ||||||
10 | (b) Illinois energy assistance consumers shall have the | ||||||
11 | option of participating in the Percentage of Income Payment | ||||||
12 | Plan. The Percentage of Income Payment Plan shall be a | ||||||
13 | year-round program that requires participants to pay 7% of | ||||||
14 | their income for the primary energy source for heating and | ||||||
15 | cooling and 3% of their income for the secondary energy source | ||||||
16 | for heating and cooling. Households that use electricity as | ||||||
17 | their sole energy source can elect to participate in the | ||||||
18 | Percentage of Income Payment Plan and pay 10% of their income | ||||||
19 | to the utility supplying electricity. All percentage of income | ||||||
20 | payments shall first be applied to the consumer's current | ||||||
21 | monthly payment obligation. For months in which the consumer's | ||||||
22 | payment under the Percentage of Income Payment Plan exceeds his | ||||||
23 | or her current bill, the balance of the payment shall be | ||||||
24 | applied to any default under a deferred payment plan or, if | ||||||
25 | none, to the consumer's arrearage, if any. If there is no | ||||||
26 | default amount or arrearage, the overpayment shall be retained | ||||||
27 | by the utility and treated as a budget plan payment to be | ||||||
28 | credited to the consumer against potential arrearages in the | ||||||
29 | future. For months in which the consumer's payment under the | ||||||
30 | Percentage of Income Payment Plan is less than his or her | ||||||
31 | current bill, the balance of the current bill shall be paid to | ||||||
32 | the utility out of the State LIHEAP fund. Prior to entering | ||||||
33 | into a Percentage of Income Payment Plan, the local area agency | ||||||
34 | shall counsel the consumer as to the possible benefits of the | ||||||
35 | Percentage of Income Payment Plan and will work with the | ||||||
36 | consumer to develop an energy payment plan that meets the needs |
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1 | of the consumer. | ||||||
2 | (c) The amount of a consumer's percentage of income payment | ||||||
3 | shall be based on an annual report on average energy usage | ||||||
4 | issued by the Illinois Department of Natural Resources. Any | ||||||
5 | consumption of energy over the average use amount shall be the | ||||||
6 | responsibility of the consumer. | ||||||
7 | (d) The LIHEAP flat grant direct vendor payment program in | ||||||
8 | existence prior to the effective date of this amendatory Act of | ||||||
9 | the 93rd General Assembly shall continue in effect for eligible | ||||||
10 | consumers that (i) have utility costs included as an | ||||||
11 | undesignated portion of the rent("heat-in-rent" consumers) or | ||||||
12 | (ii) have home-delivered fuel or that purchase fuel in bulk for | ||||||
13 | residential use. However, "heat-in-rent" consumers who pay | ||||||
14 | separately for electricity may participate in a 3% percentage | ||||||
15 | of income payment plan, and "electricity-in rent" consumers who | ||||||
16 | pay separately for gas service may participate in a 7% | ||||||
17 | percentage of income payment plan. | ||||||
18 | (e) A LIHEAP flat grant shall be available to eligible | ||||||
19 | consumers who elect not to participate in the Percentage of | ||||||
20 | Income Payment Program. The amount of the flat grant shall be | ||||||
21 | set by the Department of Commerce and Economic Opportunity in | ||||||
22 | consultation with the Policy Advisory Committee, taking into | ||||||
23 | consideration the amount of available LIHEAP funds. The flat | ||||||
24 | grant amount shall be set at a level that encourages | ||||||
25 | participation in the Percentage of Income Payment Plan. | ||||||
26 | (f) Emergency Services grants under LIHEAP shall be limited | ||||||
27 | to the amount necessary to reconnect service to the household | ||||||
28 | unless another emergency exists such as the need for repairs or | ||||||
29 | service in the dwelling. | ||||||
30 | (g) The General Assembly finds that energy efficiency is an | ||||||
31 | important component of LIHEAP because it helps the State | ||||||
32 | control costs by lowering the heating and cooling bills of | ||||||
33 | eligible consumers. The Department, in consultation with the | ||||||
34 | Policy Advisory Committee, shall establish an energy | ||||||
35 | efficiency and weatherization program targeted, to the extent | ||||||
36 | practicable, to high-cost high-volume use buildings occupied |
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1 | by LIHEAP-eligible consumers with the goal of reducing the | ||||||
2 | energy bills of the occupants. Acceptance of energy efficiency | ||||||
3 | and weatherization services provided under LIHEAP shall be a | ||||||
4 | condition for participation in the Percentage of Income Payment | ||||||
5 | Plan. The energy efficiency component of LIHEAP shall (i) | ||||||
6 | target the highest cost households for weatherization and (ii) | ||||||
7 | provide no-cost or low-cost efficiency strategies for all | ||||||
8 | participants. The Department and the Policy Advisory Committee | ||||||
9 | shall review appropriate data provided by consumers, local area | ||||||
10 | agencies and other appropriate sources in deciding how to | ||||||
11 | target energy efficiency resources. | ||||||
12 | (h) The costs of operating the Percentage of Income Payment | ||||||
13 | Plan as part of LIHEAP shall be paid out of the Supplemental | ||||||
14 | Low-Income Energy Assistance Fund. To meet the anticipated | ||||||
15 | increase in costs, the following portfolio of funding sources | ||||||
16 | for the State LIHEAP fund shall be added to existing funding | ||||||
17 | sources: | ||||||
18 | (1) The Department shall use financial hedging tools to | ||||||
19 | minimize its vulnerability to periodic swings in the cost | ||||||
20 | of natural gas. The Department, in consultation with the | ||||||
21 | Policy Advisory Committee, shall predetermine the annual | ||||||
22 | amount of LIHEAP funding available for hedging strategies. | ||||||
23 | This amount shall be based on projections of the cost of | ||||||
24 | natural gas and the projected natural gas consumption by | ||||||
25 | consumers participating in a Percentage of Income Payment | ||||||
26 | Plan. The Department shall put out for competitive bidding | ||||||
27 | the development and implementation of the hedging | ||||||
28 | strategy. Money saved by the use of hedging strategies in | ||||||
29 | colder-than-normal winters shall be used to pay for the | ||||||
30 | cost of hedging strategies during warmer-than-normal | ||||||
31 | winters. | ||||||
32 | (2) The Department shall apply the savings realized | ||||||
33 | from lower flat grants to LIHEAP-eligible consumers who opt | ||||||
34 | not to participate in the Percentage of Income Payment Plan | ||||||
35 | and lower average emergency services grants to help cover | ||||||
36 | the additional costs of the energy assistance program |
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1 | changes created by this amendatory Act of the 93rd General | ||||||
2 | Assembly. | ||||||
3 | (3) The savings in LIHEAP funds resulting from the | ||||||
4 | alleviation of arrearages for eligible consumers resulting | ||||||
5 | from the program changes created by this amendatory Act of | ||||||
6 | the 93rd General Assembly shall by applied to help cover | ||||||
7 | the additional costs resulting from this amendatory Act of | ||||||
8 | the 93rd General Assembly. | ||||||
9 | (4) Bulk purchasing and other cost-saving practices | ||||||
10 | shall be used to reduce LIHEAP expenditures. These savings | ||||||
11 | shall be applied to the additional costs created by this | ||||||
12 | amendatory Act of the 93rd General Assembly. | ||||||
13 | (5) Interest earned on funds deposited in the LIHEAP | ||||||
14 | funds shall be applied to the cost of the LIHEAP program. | ||||||
15 | (i) The Department may adopt any rules necessary for the | ||||||
16 | implementation of this Section.
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17 | (305 ILCS 20/13)
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18 | Sec. 13. Supplemental Low-Income Energy Assistance Fund.
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19 | (a) The Supplemental Low-Income Energy Assistance
Fund is | ||||||
20 | hereby created as a special fund in the State
Treasury. The | ||||||
21 | Supplemental Low-Income Energy Assistance Fund
is authorized | ||||||
22 | to receive, by statutory deposit, the moneys
collected pursuant | ||||||
23 | to this Section. Subject to appropriation,
the Department shall | ||||||
24 | use
moneys from the Supplemental Low-Income Energy Assistance | ||||||
25 | Fund
for payments to electric or gas public utilities,
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26 | municipal electric or gas utilities, and electric cooperatives
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27 | on behalf of their customers who are participants in the
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28 | program authorized by Section 4 of this Act, for administration | ||||||
29 | of the Percentage of Income Payment Plan under Section 4.5 of | ||||||
30 | this Act, for the provision of
weatherization services and for
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31 | administration of the Supplemental Low-Income Energy
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32 | Assistance Fund. The yearly expenditures for weatherization | ||||||
33 | may not exceed 10%
of the amount collected during the year | ||||||
34 | pursuant to this Section. The yearly administrative expenses of | ||||||
35 | the
Supplemental Low-Income Energy Assistance Fund may not |
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1 | exceed
10% of the amount collected during that year
pursuant to | ||||||
2 | this Section.
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3 | (b) Notwithstanding the provisions of Section 16-111
of the | ||||||
4 | Public Utilities Act but subject to subsection (k) of this | ||||||
5 | Section,
each public utility, electric
cooperative, as defined | ||||||
6 | in Section 3.4 of the Electric Supplier Act,
and municipal | ||||||
7 | utility, as referenced in Section 3-105 of the Public Utilities
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8 | Act, that is engaged in the delivery of electricity or the
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9 | distribution of natural gas within the State of Illinois
shall, | ||||||
10 | effective January 1, 1998,
assess each of
its customer accounts | ||||||
11 | a monthly Energy Assistance Charge for
the Supplemental | ||||||
12 | Low-Income Energy Assistance Fund.
The delivering public | ||||||
13 | utility, municipal electric or gas utility, or electric
or gas
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14 | cooperative for a self-assessing purchaser remains subject to | ||||||
15 | the collection of
the
fee imposed by this Section.
The
monthly | ||||||
16 | charge shall be as follows:
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17 | (1) $0.40 per month on each account for
residential | ||||||
18 | electric service;
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19 | (2) $0.40 per month on each account for
residential gas | ||||||
20 | service;
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21 | (3) $4 per month on each account for non-residential | ||||||
22 | electric service
which had less than 10 megawatts
of peak | ||||||
23 | demand during the previous calendar year;
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24 | (4) $4 per month on each account for non-residential | ||||||
25 | gas service which
had distributed to it less than
4,000,000 | ||||||
26 | therms of gas during the previous calendar year;
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27 | (5) $300 per month on each account for non-residential | ||||||
28 | electric service
which had 10 megawatts or greater
of peak | ||||||
29 | demand during the previous calendar year; and
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30 | (6) $300 per month on each account for non-residential | ||||||
31 | gas service
which had 4,000,000 or more therms of
gas | ||||||
32 | distributed to it during the previous calendar year.
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33 | (c) For purposes of this Section:
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34 | (1) "residential electric service" means
electric | ||||||
35 | utility service for household purposes delivered to a
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36 | dwelling of 2 or fewer units which is billed under a
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1 | residential rate, or electric utility service for | ||||||
2 | household
purposes delivered to a dwelling unit or units | ||||||
3 | which is billed
under a residential rate and is registered | ||||||
4 | by a separate meter
for each dwelling unit;
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5 | (2) "residential gas service" means gas utility
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6 | service for household purposes distributed to a dwelling of
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7 | 2 or fewer units which is billed under a residential rate,
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8 | or gas utility service for household purposes distributed | ||||||
9 | to a
dwelling unit or units which is billed under a | ||||||
10 | residential
rate and is registered by a separate meter for | ||||||
11 | each dwelling
unit;
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12 | (3) "non-residential electric service" means
electric | ||||||
13 | utility service which is not residential electric
service; | ||||||
14 | and
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15 | (4) "non-residential gas service" means gas
utility | ||||||
16 | service which is not residential gas service.
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17 | (d) At least 45 days prior to the date on which it
must | ||||||
18 | begin assessing Energy Assistance Charges, each public
utility | ||||||
19 | engaged in the delivery of electricity or the
distribution of | ||||||
20 | natural gas shall file with the Illinois
Commerce Commission | ||||||
21 | tariffs incorporating the Energy
Assistance Charge in other | ||||||
22 | charges stated in such tariffs.
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23 | (e) The Energy Assistance Charge assessed by
electric and | ||||||
24 | gas public utilities shall be considered a charge
for public | ||||||
25 | utility service.
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26 | (f) By the 20th day of the month following the month in | ||||||
27 | which the charges
imposed by the Section were collected, each | ||||||
28 | public
utility,
municipal utility, and electric cooperative | ||||||
29 | shall remit to the
Department of Revenue all moneys received as | ||||||
30 | payment of the
Energy Assistance Charge on a return prescribed | ||||||
31 | and furnished by the
Department of Revenue showing such | ||||||
32 | information as the Department of Revenue may
reasonably | ||||||
33 | require. If a customer makes a partial payment, a public
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34 | utility, municipal
utility, or electric cooperative may elect | ||||||
35 | either: (i) to apply
such partial payments first to amounts | ||||||
36 | owed to the
utility or cooperative for its services and then to |
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1 | payment
for the Energy Assistance Charge or (ii) to apply such | ||||||
2 | partial payments
on a pro-rata basis between amounts owed to | ||||||
3 | the
utility or cooperative for its services and to payment for | ||||||
4 | the
Energy Assistance Charge.
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5 | (g) The Department of Revenue shall deposit into the
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6 | Supplemental Low-Income Energy Assistance Fund all moneys
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7 | remitted to it in accordance with subsection (f) of this
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8 | Section.
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9 | (h) (Blank).
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10 | On or before December 31, 2002, the Department shall
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11 | prepare a report for the General Assembly on the expenditure of | ||||||
12 | funds
appropriated from the Low-Income Energy Assistance Block | ||||||
13 | Grant Fund for the
program authorized under Section 4 of this | ||||||
14 | Act.
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15 | (i) The Department of Revenue may establish such
rules as | ||||||
16 | it deems necessary to implement this Section.
| ||||||
17 | (j) The Department of Commerce and Economic Opportunity
| ||||||
18 | Community Affairs
may establish such rules as it deems | ||||||
19 | necessary to implement
this Section.
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20 | (k) The charges imposed by this Section shall only apply to | ||||||
21 | customers of
municipal electric or gas utilities and electric | ||||||
22 | or gas cooperatives if
the municipal
electric or gas
utility or | ||||||
23 | electric or gas cooperative makes an affirmative decision to
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24 | impose the
charge. If a municipal electric or gas utility or an | ||||||
25 | electric
cooperative makes an affirmative decision to impose | ||||||
26 | the charge provided by
this
Section, the municipal electric or | ||||||
27 | gas utility or electric cooperative shall
inform the
Department | ||||||
28 | of Revenue in writing of such decision when it begins to impose | ||||||
29 | the
charge. If a municipal electric or gas utility or electric | ||||||
30 | or gas
cooperative does not
assess
this charge, the Department | ||||||
31 | may not use funds from the Supplemental Low-Income
Energy | ||||||
32 | Assistance Fund to provide benefits to its customers under the | ||||||
33 | program
authorized by Section 4 of this Act.
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34 | In its use of federal funds under this Act, the Department | ||||||
35 | may not cause a
disproportionate share of those federal funds | ||||||
36 | to benefit customers of systems
which do not assess the charge |
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1 | provided by this Section.
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2 | This Section is repealed effective December 31, 2007 unless
| ||||||
3 | renewed by action of the General Assembly. The General Assembly | ||||||
4 | shall
consider the results of the evaluations described in | ||||||
5 | Section 8 in its
deliberations.
| ||||||
6 | (Source: P.A. 92-690, eff. 7-18-02; revised 12-6-03.)
| ||||||
7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
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