Illinois General Assembly - Full Text of SB2881
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Full Text of SB2881  99th General Assembly

SB2881 99TH GENERAL ASSEMBLY

  
  

 


 
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2881

 

Introduced 2/17/2016, by Sen. Daniel Biss

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-118

    Amends the Public Utilities Act. In provisions concerning the purchase of an alternative retail electric suppliers' receivables, including uncollectible receivables by a purchasing electric utility, provides that the purchasing electric utility shall not purchase receivables that are priced higher than the price obtained for consumers through the procurement process set out in the Public Utilities Act.


LRB099 19549 EGJ 43944 b

 

 

A BILL FOR

 

SB2881LRB099 19549 EGJ 43944 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Section 16-118 as follows:
 
6    (220 ILCS 5/16-118)
7    Sec. 16-118. Services provided by electric utilities to
8alternative retail electric suppliers.
9    (a) It is in the best interest of Illinois energy consumers
10to promote fair and open competition in the provision of
11electric power and energy and to prevent anticompetitive
12practices in the provision of electric power and energy.
13Therefore, to the extent an electric utility provides electric
14power and energy or delivery services to alternative retail
15electric suppliers and such services are not subject to the
16jurisdiction of the Federal Energy Regulatory Commission, and
17are not competitive services, they shall be provided through
18tariffs that are filed with the Commission, pursuant to Article
19IX of this Act. Each electric utility shall permit alternative
20retail electric suppliers to interconnect facilities to those
21owned by the utility provided they meet established standards
22for such interconnection, and may provide standby or other
23services to alternative retail electric suppliers. The

 

 

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1alternative retail electric supplier shall sign a contract
2setting forth the prices, terms and conditions for
3interconnection with the electric utility and the prices, terms
4and conditions for services provided by the electric utility to
5the alternative retail electric supplier in connection with the
6delivery by the electric utility of electric power and energy
7supplied by the alternative retail electric supplier.
8    (b) An electric utility shall file a tariff pursuant to
9Article IX of the Act that would allow alternative retail
10electric suppliers or electric utilities other than the
11electric utility in whose service area retail customers are
12located to issue single bills to the retail customers for both
13the services provided by such alternative retail electric
14supplier or other electric utility and the delivery services
15provided by the electric utility to such customers. The tariff
16filed pursuant to this subsection shall (i) require partial
17payments made by retail customers to be credited first to the
18electric utility's tariffed services, (ii) impose commercially
19reasonable terms with respect to credit and collection,
20including requests for deposits, (iii) retain the electric
21utility's right to disconnect the retail customers, if it does
22not receive payment for its tariffed services, in the same
23manner that it would be permitted to if it had billed for the
24services itself, and (iv) require the alternative retail
25electric supplier or other electric utility that elects the
26billing option provided by this tariff to include on each bill

 

 

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1to retail customers an identification of the electric utility
2providing the delivery services and a listing of the charges
3applicable to such services. The tariff filed pursuant to this
4subsection may also include other just and reasonable terms and
5conditions. In addition, an electric utility, an alternative
6retail electric supplier or electric utility other than the
7electric utility in whose service area the customer is located,
8and a customer served by such alternative retail electric
9supplier or other electric utility, may enter into an agreement
10pursuant to which the alternative retail electric supplier or
11other electric utility pays the charges specified in Section
1216-108, or other customer-related charges, including taxes and
13fees, in lieu of such charges being recovered by the electric
14utility directly from the customer.
15    (c) An electric utility with more than 100,000 customers
16shall file a tariff pursuant to Article IX of this Act that
17provides alternative retail electric suppliers, and electric
18utilities other than the electric utility in whose service area
19the retail customers are located, with the option to have the
20electric utility purchase their receivables for power and
21energy service provided to residential retail customers and
22non-residential retail customers with a non-coincident peak
23demand of less than 400 kilowatts. An electric utility with
24more than 100,000 customers, however, shall not purchase any
25receivable priced at a higher price than is obtained for
26consumers through the Illinois Power Agency procurement

 

 

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1process under Section 16-111.5. Only those amounts less than or
2equal to the price obtained for consumers through that
3procurement process shall be purchased by an electric utility
4with more than 100,000 customers. Receivables for power and
5energy service of alternative retail electric suppliers or
6electric utilities other than the electric utility in whose
7service area the retail customers are located shall be
8purchased by the electric utility at a just and reasonable
9discount rate to be reviewed and approved by the Commission
10after notice and hearing. The discount rate shall be based on
11the electric utility's historical bad debt and any reasonable
12start-up costs and administrative costs associated with the
13electric utility's purchase of receivables. The discounted
14rate for purchase of receivables shall be included in the
15tariff filed pursuant to this subsection (c). The discount rate
16filed pursuant to this subsection (c) shall be subject to
17periodic Commission review. The electric utility retains the
18right to impose the same terms on retail customers with respect
19to credit and collection, including requests for deposits, and
20retain the electric utility's right to disconnect the retail
21customers, if it does not receive payment for its tariffed
22services or purchased receivables, in the same manner that it
23would be permitted to if the retail customers purchased power
24and energy from the electric utility. The tariff filed pursuant
25to this subsection (c) shall permit the electric utility to
26recover from retail customers any uncollected receivables that

 

 

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1may arise as a result of the purchase of receivables under this
2subsection (c) (however, the uncollected receivables shall not
3exceed the price obtained for consumers through the Illinois
4Power Agency procurement process under Section 16-111.5), may
5also include other just and reasonable terms and conditions,
6and shall provide for the prudently incurred costs associated
7with the provision of this service pursuant to this subsection
8(c). Nothing in this subsection (c) permits the double recovery
9of bad debt expenses from customers.
10    (d) An electric utility with more than 100,000 customers
11shall file a tariff pursuant to Article IX of this Act that
12would provide alternative retail electric suppliers or
13electric utilities other than the electric utility in whose
14service area retail customers are located with the option to
15have the electric utility produce and provide single bills to
16the retail customers for both the electric power and energy
17service provided by the alternative retail electric supplier or
18other electric utility and the delivery services provided by
19the electric utility to the customers. The tariffs filed
20pursuant to this subsection shall require the electric utility
21to collect and remit customer payments for electric power and
22energy service provided by alternative retail electric
23suppliers or electric utilities other than the electric utility
24in whose service area retail customers are located. The tariff
25filed pursuant to this subsection shall require the electric
26utility to include on each bill to retail customers an

 

 

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1identification of the alternative retail electric supplier or
2other electric utility that elects the billing option. The
3tariff filed pursuant to this subsection (d) may also include
4other just and reasonable terms and conditions and shall
5provide for the recovery of prudently incurred costs associated
6with the provision of service pursuant to this subsection (d).
7The costs associated with the provision of service pursuant to
8this Section shall be subject to periodic Commission review.
9    (e) An electric utility with more than 100,000 customers in
10this State shall file a tariff pursuant to Article IX of this
11Act that provides alternative retail electric suppliers, and
12electric utilities other than the electric utility in whose
13service area the retail customers are located, with the option
14to have the electric utility purchase 2 billing cycles worth of
15uncollectible receivables for power and energy service
16provided to residential retail customers and to
17non-residential retail customers with a non-coincident peak
18demand of less than 400 kilowatts upon returning that customer
19to that electric utility for delivery and energy service after
20that alternative retail electric supplier, or an electric
21utility other than the electric utility in whose service area
22the retail customer is located, has made reasonable collection
23efforts on that account. However, the uncollected receivable
24shall not exceed the price obtained for consumers through the
25procurement process under Section 16-111.5. Uncollectible
26receivables for power and energy service of alternative retail

 

 

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1electric suppliers, or electric utilities other than the
2electric utility in whose service area the retail customers are
3located, shall be purchased by the electric utility at a just
4and reasonable discount rate to be reviewed and approved by the
5Commission, after notice and hearing. The discount rate shall
6be based on the electric utility's historical bad debt for
7receivables that are outstanding for a similar length of time
8and any reasonable start-up costs and administrative costs
9associated with the electric utility's purchase of
10receivables. The discounted rate for purchase of uncollectible
11receivables shall be included in the tariff filed pursuant to
12this subsection (e). The electric utility retains the right to
13impose the same terms on these retail customers with respect to
14credit and collection, including requests for deposits, and
15retains the right to disconnect these retail customers, if it
16does not receive payment for its tariffed services or purchased
17receivables, in the same manner that it would be permitted to
18if the retail customers had purchased power and energy from the
19electric utility. The tariff filed pursuant to this subsection
20(e) shall permit the electric utility to recover from retail
21customers any uncollectable receivables that may arise as a
22result of the purchase of uncollectible receivables under this
23subsection (e) (however, the uncollectible receivable shall
24not exceed the price obtained for consumers through the
25Illinois Power Agency procurement process under Section
2616-111.5), may also include other just and reasonable terms and

 

 

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1conditions, and shall provide for the prudently incurred costs
2associated with the provision of this service pursuant to this
3subsection (e). Nothing in this subsection (e) permits the
4double recovery of utility bad debt expenses from customers.
5The electric utility may file a joint tariff for this
6subsection (e) and subsection (c) of this Section.
7(Source: P.A. 95-700, eff. 11-9-07.)