Full Text of HB3941 102nd General Assembly
HB3941ham001 102ND GENERAL ASSEMBLY | Rep. Joyce Mason Filed: 1/27/2022
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| 1 | | AMENDMENT TO HOUSE BILL 3941
| 2 | | AMENDMENT NO. ______. Amend House Bill 3941 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Public Utilities Act is amended by | 5 | | changing Section 9-220.3 as follows: | 6 | | (220 ILCS 5/9-220.3) | 7 | | (Section scheduled to be repealed on December 31, 2023) | 8 | | Sec. 9-220.3. Natural gas surcharges authorized. | 9 | | (a) Tariff. | 10 | | (1) Pursuant to Section 9-201 of this Act, a natural | 11 | | gas utility serving more than 700,000 customers may file a | 12 | | tariff for a surcharge which adjusts rates and charges to | 13 | | provide for recovery of costs associated with investments | 14 | | in qualifying infrastructure plant, independent of any | 15 | | other matters related to the utility's revenue | 16 | | requirement. |
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| 1 | | (2) Within 30 days after the effective date of this | 2 | | amendatory Act of the 98th General Assembly, the | 3 | | Commission shall adopt emergency rules to implement the | 4 | | provisions of this amendatory Act of the 98th General | 5 | | Assembly. The utility may file with the Commission tariffs | 6 | | implementing the provisions of this amendatory Act of the | 7 | | 98th General Assembly after the effective date of the | 8 | | emergency rules authorized by subsection (i). | 9 | | (3) The Commission shall issue an order approving, or | 10 | | approving with modification to ensure compliance with this | 11 | | Section, the tariff no later than 120 days after such | 12 | | filing of the tariffs filed pursuant to this Section. The | 13 | | utility shall have 7 days following the date of service of | 14 | | the order to notify the Commission in writing whether it | 15 | | will accept any modifications so identified in the order | 16 | | or whether it has elected not to proceed with the tariff. | 17 | | If the order includes no modifications or if the utility | 18 | | notifies the Commission that it will accept such | 19 | | modifications, the tariff shall take effect on the first | 20 | | day of the calendar year in which the Commission issues | 21 | | the order, subject to petitions for rehearing and | 22 | | appellate procedures. After the tariff takes effect, the | 23 | | utility may, upon 10 days' notice to the Commission, file | 24 | | to withdraw the tariff at any time, and the Commission | 25 | | shall approve such filing without suspension or hearing, | 26 | | subject to a final reconciliation as provided in |
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| 1 | | subsection (e) of this Section. | 2 | | (4) When a natural gas utility withdraws the surcharge | 3 | | tariff, the utility shall not recover any additional | 4 | | charges through the surcharge approved pursuant to this | 5 | | Section, subject to the resolution of the final | 6 | | reconciliation pursuant to subsection (e) of this Section. | 7 | | The utility's qualifying infrastructure investment net of | 8 | | accumulated depreciation may be transferred to the natural | 9 | | gas utility's rate base in the utility's next general rate | 10 | | case. The utility's delivery base rates in effect upon | 11 | | withdrawal of the surcharge tariff shall not be adjusted | 12 | | at the time the surcharge tariff is withdrawn. | 13 | | (5) A natural gas utility that is subject to its | 14 | | delivery base rates being fixed at their current rates | 15 | | pursuant to a Commission order entered in Docket No. | 16 | | 11-0046, notwithstanding the effective date of its tariff | 17 | | authorized pursuant to this Section, shall reflect in a | 18 | | tariff surcharge only those projects placed in service | 19 | | after the fixed rate period of the merger agreement has | 20 | | expired by its terms. | 21 | | (b) For purposes of this Section, "qualifying | 22 | | infrastructure plant" includes only plant additions placed in | 23 | | service not reflected in the rate base used to establish the | 24 | | utility's delivery base rates. "Costs associated with | 25 | | investments in qualifying infrastructure plant" shall include | 26 | | a return on qualifying infrastructure plant and recovery of |
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| 1 | | depreciation and amortization expense on qualifying | 2 | | infrastructure plant, net of the depreciation included in the | 3 | | utility's base rates on any plant retired in conjunction with | 4 | | the installation of the qualifying infrastructure plant. | 5 | | Collectively the "qualifying infrastructure plant" and "costs | 6 | | associated with investments in qualifying infrastructure | 7 | | plant" are referred to as the "qualifying infrastructure | 8 | | investment" and that are related to one or more of the | 9 | | following: | 10 | | (1) the installation of facilities to retire and | 11 | | replace underground natural gas facilities, including | 12 | | facilities appurtenant to facilities constructed of those | 13 | | materials such as meters, regulators, and services, and | 14 | | that are constructed of cast iron, wrought iron, ductile | 15 | | iron, unprotected coated steel, unprotected bare steel, | 16 | | mechanically coupled steel, copper, Cellulose Acetate | 17 | | Butyrate (CAB) plastic, pre-1973 DuPont Aldyl "A" | 18 | | polyethylene, PVC, or other types of materials identified | 19 | | by a State or federal governmental agency as being prone | 20 | | to leakage; | 21 | | (2) the relocation of meters from inside customers' | 22 | | facilities to outside; | 23 | | (3) the upgrading of the gas distribution system from | 24 | | a low pressure to a medium pressure system, including | 25 | | installation of high-pressure facilities to support the | 26 | | upgrade; |
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| 1 | | (4) modernization investments by a combination | 2 | | utility, as defined in subsection (b) of Section 16-108.5 | 3 | | of this Act, to install: | 4 | | (A) advanced gas meters in connection with the | 5 | | installation of advanced electric meters pursuant to | 6 | | Sections 16-108.5 and 16-108.6 of this Act; and | 7 | | (B) the communications hardware and software and | 8 | | associated system software that creates a network | 9 | | between advanced gas meters and utility business | 10 | | systems and allows the collection and distribution of | 11 | | gas-related information to customers and other parties | 12 | | in addition to providing information to the utility | 13 | | itself; | 14 | | (5) replacing high-pressure transmission pipelines and | 15 | | associated facilities identified as having a higher risk | 16 | | of leakage or failure or installing or replacing | 17 | | high-pressure transmission pipelines and associated | 18 | | facilities to establish records and maximum allowable | 19 | | operating pressures; | 20 | | (6) replacing difficult to locate mains and service | 21 | | pipes and associated facilities; and | 22 | | (7) replacing or installing transmission and | 23 | | distribution regulator stations, regulators, valves, and | 24 | | associated facilities to establish over-pressure | 25 | | protection. | 26 | | With respect to the installation of the facilities |
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| 1 | | identified in paragraph (1) of subsection (b) of this Section, | 2 | | the natural gas utility shall determine priorities for such | 3 | | installation with consideration of projects either: (i) | 4 | | integral to a general government public facilities improvement | 5 | | program or (ii) ranked in the highest risk categories in the | 6 | | utility's most recent Distribution Integrity Management Plan | 7 | | where removal or replacement is the remedial measure. | 8 | | (c) Qualifying infrastructure investment, defined in | 9 | | subsection (b) of this Section, recoverable through a tariff | 10 | | authorized by subsection (a) of this Section, shall not | 11 | | include costs or expenses incurred in the ordinary course of | 12 | | business for the ongoing or routine operations of the utility, | 13 | | including, but not limited to: | 14 | | (1) operating and maintenance costs; and | 15 | | (2) costs of facilities that are revenue-producing, | 16 | | which means facilities that are constructed or installed | 17 | | for the purpose of serving new customers. | 18 | | (d) Gas utility commitments. A natural gas utility that | 19 | | has in effect a natural gas surcharge tariff pursuant to this | 20 | | Section shall: | 21 | | (1) recognize that the General Assembly identifies | 22 | | improved public safety and reliability of natural gas | 23 | | facilities as the cornerstone upon which this Section is | 24 | | designed, and qualifying projects should be encouraged, | 25 | | selected, and prioritized based on these factors; and | 26 | | (2) provide information to the Commission as requested |
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| 1 | | to demonstrate that (i) the projects included in the | 2 | | tariff are indeed qualifying projects and (ii) the | 3 | | projects are selected and prioritized taking into account | 4 | | improved public safety and reliability. | 5 | | (3) The amount of qualifying infrastructure investment | 6 | | eligible for recovery under the tariff in the applicable | 7 | | calendar year is limited to the lesser of (i) the actual | 8 | | qualifying infrastructure plant placed in service in the | 9 | | applicable calendar year and (ii) the difference by which | 10 | | total plant additions in the applicable calendar year | 11 | | exceed the baseline amount, and subject to the limitation | 12 | | in subsection (g) of this Section. A natural gas utility | 13 | | can recover the costs of qualifying infrastructure | 14 | | investments through an approved surcharge tariff from the | 15 | | beginning of each calendar year subject to the | 16 | | reconciliation initiated under paragraph (2) of subsection | 17 | | (e) of this Section, during which the Commission may make | 18 | | adjustments to ensure that the limits defined in this | 19 | | paragraph are not exceeded. Further, if total plant | 20 | | additions in a calendar year do not exceed the baseline | 21 | | amount in the applicable calendar year, the Commission, | 22 | | during the reconciliation initiated under paragraph (2) of | 23 | | subsection (e) of this Section for the applicable calendar | 24 | | year, shall adjust the amount of qualifying infrastructure | 25 | | investment eligible for recovery under the tariff to zero. | 26 | | (4) For purposes of this Section, "baseline amount" |
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| 1 | | means an amount equal to the utility's average of total | 2 | | depreciation expense, as reported on page 336, column (b) | 3 | | of the utility's ILCC Form 21, for the calendar years 2006 | 4 | | through 2010. | 5 | | (e) Review of investment. | 6 | | (1) The amount of qualifying infrastructure investment | 7 | | shall be shown on an Information Sheet supplemental to the | 8 | | surcharge tariff and filed with the Commission monthly or | 9 | | some other time period at the option of the utility. The | 10 | | Information Sheet shall be accompanied by data showing the | 11 | | calculation of the qualifying infrastructure investment | 12 | | adjustment. Unless otherwise ordered by the Commission, | 13 | | each qualifying infrastructure investment adjustment shown | 14 | | on an Information Sheet shall become effective pursuant to | 15 | | the utility's approved tariffs. | 16 | | (2) For each calendar year in which a surcharge tariff | 17 | | is in effect, the natural gas utility shall file a | 18 | | petition with the Commission to initiate hearings to | 19 | | reconcile amounts billed under each surcharge authorized | 20 | | pursuant to this Section with the actual prudently | 21 | | incurred costs recoverable under this tariff in the | 22 | | preceding year. The petition filed by the natural gas | 23 | | utility shall include testimony and schedules that support | 24 | | the accuracy and the prudence of the qualifying | 25 | | infrastructure investment for the calendar year being | 26 | | reconciled. The petition filed shall also include the |
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| 1 | | number of jobs attributable to the natural gas surcharge | 2 | | tariff as required by rule. The review of the utility's | 3 | | investment shall include identification and review of all | 4 | | plant that was ranked within the highest risk categories | 5 | | in that utility's most recent Distribution Integrity | 6 | | Management Plan. | 7 | | (f) The rate of return applied shall be the overall rate of | 8 | | return authorized by the Commission in the utility's last gas | 9 | | rate case. | 10 | | (g) The cumulative amount of increases billed under the | 11 | | surcharge, since the utility's most recent delivery service | 12 | | rate order, shall not exceed an annual average 4% of the | 13 | | utility's delivery base rate revenues, but shall not exceed | 14 | | 5.5% in any given year. On the effective date of new delivery | 15 | | base rates, the surcharge shall be reduced to zero with | 16 | | respect to qualifying infrastructure investment that is | 17 | | transferred to the rate base used to establish the utility's | 18 | | delivery base rates, provided that the utility may continue to | 19 | | charge or refund any reconciliation adjustment determined | 20 | | pursuant to subsection (e) of this Section. | 21 | | (h) If a gas utility obtains a surcharge tariff under this | 22 | | Section 9-220.3, then it and its affiliates are excused from | 23 | | the rate case filing requirements contained in Sections | 24 | | 9-220(h) and 9-220(h-1). In the event a natural gas utility, | 25 | | prior to the effective date of this amendatory Act of the 98th | 26 | | General Assembly, made a rate case filing that is still |
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| 1 | | pending on the effective date of this amendatory Act of the | 2 | | 98th General Assembly, the natural gas utility may, at the | 3 | | time it files its surcharge tariff with the Commission, also | 4 | | file a notice with the Commission to withdraw its rate case | 5 | | filing. Any affiliate of such natural gas utility may also | 6 | | file to withdraw its rate case filing. Upon receipt of such | 7 | | notice, the Commission shall dismiss the rate case filing with | 8 | | prejudice and such tariffs and the record related thereto | 9 | | shall not be the subject of any further hearing, | 10 | | investigation, or proceeding of any kind related to rates for | 11 | | gas delivery services. Notwithstanding the foregoing, a | 12 | | natural gas utility shall not be permitted to withdraw a rate | 13 | | case filing for which a proposed order recommending a rate | 14 | | reduction is pending. A natural gas utility shall not be | 15 | | permitted to withdraw the gas delivery services tariffs that | 16 | | are the subject of Commission Docket Nos. 12-0511/12-0512 | 17 | | (cons.). None of the costs incurred for the withdrawn rate | 18 | | case are recoverable from ratepayers. | 19 | | (i) The Commission shall promulgate rules and regulations | 20 | | to carry out the provisions of this Section under the | 21 | | emergency rulemaking provisions set forth in Section 5-45 of | 22 | | the Illinois Administrative Procedure Act, and such emergency | 23 | | rules shall be effective no later than 30 days after the | 24 | | effective date of this amendatory Act of the 98th General | 25 | | Assembly. | 26 | | (j) This Section is repealed December 31, 2022 2023 .
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| 1 | | (Source: P.A. 98-57, eff. 7-5-13.)".
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