Illinois General Assembly - Full Text of HB0564
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Full Text of HB0564  94th General Assembly



State of Illinois
2005 and 2006


Introduced 1/27/2005, by Rep. Kathleen A. Ryg


220 ILCS 5/Art. XX heading new
220 ILCS 5/20-5 new
220 ILCS 5/20-10 new
220 ILCS 5/20-15 new
220 ILCS 5/20-20 new
220 ILCS 5/20-25 new

    Amends the Public Utilities Act. Requires each natural gas public utility to file annually a set of transportation schedules or tariffs applicable to public schools authorizing a public school association to aggregate the purchase of natural gas for its members. Requires the transportation schedules or tariffs to (i) establish certain delivery charges; (ii) authorize a public school association to contract with a public utility at monthly market prices for interstate pipeline capacity; (iii) require the public utility to provide certain usage projections; and (iv) authorize the public utility to impose a penalty under limited circumstances. Authorizes the Illinois Commerce Commission to suspend the transportation schedule or tariff for up to 3 months. Requires energy sellers to comply with applicable Commission rules. Provides that any agreement between a public school association and an energy seller is void if the energy seller does not comply with Commission rules. Requires each natural gas public utility to file an annual statement of its revenues and incremental costs incurred as a direct result of the aggregation of natural gas for public schools. Authorizes the Commission to promulgate rules that are reasonable and necessary to administer the aggregation program. Effective immediately.

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HB0564 LRB094 06457 MKM 36545 b

1     AN ACT concerning regulation.
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4     Section 5. The Public Utilities Act is amended by adding
5 Article XX as follows:
6     (220 ILCS 5/Art. XX heading new)

8     (220 ILCS 5/20-5 new)
9     Sec. 20-5. Definitions. As used in this Article:
10     "Aggregate" means to combine the natural gas requirements
11 of public schools that are members of a public school
12 association for purchase from energy sellers and for delivery
13 through interstate pipelines and public utilities.
14     "Delivery system" means the natural gas distribution and
15 transmission lines that are owned and operated by any public
16 utility and the charges for the use of those lines, as
17 regulated by the Commission.
18     "Energy seller" means the entity that uses the delivery
19 system of a public utility for delivery of natural gas supply
20 from an interstate pipeline to the public utility's meter for
21 use by a public school facility.
22     "Interstate pipeline" means any natural gas pipeline that
23 delivers natural gas supply from outside the State to the
24 delivery system of a public utility and that is price-regulated
25 by the Federal Energy Regulatory Commission.
26     "Public school" means any elementary or secondary school
27 operated at public expense.
28     "Public school association" means a not-for-profit
29 association of public schools.
30     "Public utility" or "natural gas public utility" means a
31 public utility, as that term is defined in Section 3-105 of



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1 this Act, that is involved in the conveyance of gas by
2 pipeline. All entities excluded from the definition of a public
3 utility under Section 3-105 are excluded under this Article.
4     "Small volume" means natural gas supply requirements of an
5 individual public school facility of less than 250,000 therms
6 annually.
7     (220 ILCS 5/20-10 new)
8     Sec. 20-10. Transportation schedules and tariffs.
9     (a) By August 1, 2005, each natural gas public utility
10 shall file with the Commission a set of transportation
11 schedules or tariffs applicable to natural gas for public
12 schools. The transportation schedules or tariffs filed under
13 this Section shall do all of the following:
14         (1) authorize a public school association to aggregate
15     the purchase of natural gas requirements by public schools;
16         (2) establish natural gas delivery charges that are
17     equal to Commission-approved public utility charges for
18     public utility natural gas service, less the public
19     utility's cost of purchased natural gas supply and
20     interstate pipeline charges, plus aggregation
21     administration and monthly balancing charges for small
22     volume meters, but not to exceed $5 per meter per month for
23     administration and 0.004 cents per therm delivered, for
24     balancing monthly deliveries to actual usage;
25         (3) offer a public school association the option of
26     contracting with a public utility at monthly market prices
27     for interstate pipeline capacity currently being used by
28     the public utility to deliver public schools' aggregate
29     monthly requirements;
30         (4) require the public utility to provide to each
31     public school association, or its designated agent, at
32     least 5 business days before the first day of each month,
33     the following information, based on weather forecasts and
34     historical monthly usage: (i) daily usage projections for
35     scheduled deliveries to each public school facility, (ii)



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1     aggregate daily usage projections by delivery point, and
2     (iii) daily usage projections on a day-ahead basis when
3     necessary to reflect significant changes in weather
4     forecasts; and
5         (5) impose a penalty if the projected daily usage of
6     natural gas, as forecasted by the public utility, is not
7     delivered to the public utility's delivery system,
8     provided that the penalty does not exceed the penalty
9     approved by the Commission in the public utility's large
10     volume customer transportation tariffs. No other penalties
11     may be imposed under this Section.
12     No transportation schedule or tariff filed under this
13 Section shall require telemetry or special metering for small
14 volume school meters.
15     (b) The Commission may suspend any transportation schedule
16 or tariff filed under this Section for up to 3 months in order
17 to review compliance with the requirements of this Section.
18     (220 ILCS 5/20-15 new)
19     Sec. 20-15. Energy sellers; compliance with Commission
20 rules. In order to supply natural gas to public schools under
21 this Article, an energy seller must comply with all applicable
22 Commission rules. Any agreements entered into on or after the
23 effective date of this amendatory Act of the 94th General
24 Assembly between a public school association and an energy
25 seller that is not in compliance with applicable Commission
26 rules is null and void.
27     (220 ILCS 5/20-20 new)
28     Sec. 20-20. Annual statement. Before June 1, 2007 and
29 before June 1 of each year thereafter, each natural gas public
30 utility shall file with the Commission an annual statement
31 showing: (i) its revenue attributable to the aggregation
32 administrative charge; (ii) its revenue attributable to the
33 small volume meter balancing charge; and (iii) the amount of
34 any incremental costs it incurred as a direct result of



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1 implementing aggregate transportation for public schools and
2 monthly balancing service for small volume meters. The
3 Commission shall determine an appropriate future cost recovery
4 method for any unrecovered costs of the public utility in order
5 to maintain future earnings neutrality for the public utility.
6     (220 ILCS 5/20-25 new)
7     Sec. 20-25. Rules. The Commission may promulgate any rules
8 that are reasonable and necessary for the administration of
9 this Article.
10     Section 99. Effective date. This Act takes effect upon
11 becoming law.