SB3693 96TH GENERAL ASSEMBLY

LRB096 15446 MJR 30660 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3693

Introduced 2/11/2010, by Sen. Don Harmon

SYNOPSIS AS INTRODUCED:

220 ILCS 5/19-150 new

Amends the Alternative Gas Supplier Law in the Public Utilities Act. Provides that a gas utility with more than 100,000 customers that offers transportation service to residential and small commercial customers shall file a tariff with the Illinois Commerce Commission pursuant to specified provisions within 6 months after the date of this amendatory Act that provides alternative gas suppliers with the option to have the gas utility purchase their receivables for gas supply service provided to residential retail customers and small commercial customers. Contains provisions concerning the purchase of receivables.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning utilities.

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 Section 19-150 as follows:

(220 ILCS 5/19-150 new)

Sec. 19-150. Purchase of receivables. A gas utility with more than 100,000 customers that offers transportation service to residential and small commercial customers shall file a tariff pursuant to Article IX of this Act within 6 months after the date of this amendatory Act of the 96th General Assembly that provides alternative gas suppliers with the option to have the gas utility purchase their receivables for gas supply service provided to residential retail customers and small commercial customers as those terms are defined in Section 19-105 of this Act. Receivables for gas supply service of alternative gas suppliers shall be purchased by the gas utility at a just and reasonable discount rate to be reviewed and approved by the Commission after notice and hearing. In making a just and reasonable determination on the discount rate, the Commission shall consider the gas utility's historical bad debt experience, reasonable start up costs and administrative costs associated with the gas utility's purchase of receivables, the impact if used by the gas utility of an automatic adjustment clause tariff pursuant to Section 19-140 of this Act to recover uncollectible expense, and whether the gas utility recovers uncollectible expense from customers of alternative gas suppliers through any of its existing rates or charges. The tariff filed pursuant to this Section shall include the formula used to derive the discount rate as well as the actual discount rate for the initial period. The discount rate filed pursuant to this Section shall be subject to periodic Commission review. The gas utility retains the right to impose the same terms on retail customers supplied by alternative gas suppliers with respect to credit and collection, including requests for deposits, and retain the gas utility's right to disconnect the retail customers, if it does not receive payment for its tariffed services or purchased receivables, in the same manner that it would be permitted to if the retail customers purchased gas supply service from the gas utility. The tariff filed pursuant to this Section shall permit the gas utility to recover from retail customers any uncollected receivables that may arise as a result of the purchase of receivables under this Section, may also include other just and reasonable terms and conditions, and shall provide for recovery of the prudently incurred costs associated with the provision of this service pursuant to this Section. Nothing in this Section permits the double recovery of bad debt expenses from customers.