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90_SJ0031eng 90SJ0031 Engrossed SRS90SJ0006JJsa 1 SENATE JOINT RESOLUTION NO. 31 2 (As amended by Senate Amendment No. 1) 3 WHEREAS, The Illinois General Assembly recognizes that 4 the health, welfare and prosperity of all citizens of 5 Illinois require the provision of adequate, efficient, 6 reliable, environmentally safe, and economic public utility 7 services at prices that both accurately reflect the cost of 8 services and are equitable to all citizens; and 9 WHEREAS, Natural gas has traditionally been provided by 10 regulated public utilities and municipalities with defined 11 service territories; and 12 WHEREAS, Utilities in Illinois and elsewhere are 13 currently positioning themselves to access open markets and 14 advocates of open access envision that many suppliers will 15 compete to provide a variety of energy services, including 16 the supply of both natural gas and electricity; and 17 WHEREAS, Rates for gas service charged by regulated gas 18 utilities historically have been established by regulatory 19 agencies, including the Federal Energy Regulatory Commission 20 and the Illinois Commerce Commission, on the basis of the 21 regulated utilities' actual costs incurred to provide 22 service, rather than by competitive market forces; and 23 WHEREAS, Many state legislatures and regulatory 24 commissions have implemented or are studying initiatives to 25 reform the regulation of gas utilities in their jurisdictions 26 so as to, among other things, increase competition in the 27 industry, permit customers to directly access gas from 28 suppliers other than their franchised local utility, and 29 permit alternatives to the traditional cost of service-based 30 rate base/rate of return method of setting gas utility rates; 31 and 32 WHEREAS, The commodity portion of the natural gas 90SJ0031 Engrossed -2- SRS90SJ0006JJsa 1 industry has been substantially deregulated at the federal 2 level and natural gas service to industrial and commercial 3 natural gas customers has been significantly unbundled in 4 Illinois, allowing such customers to directly access gas from 5 suppliers other than their franchised local gas utilities; 6 and 7 WHEREAS, The State of Illinois and its citizens may 8 realize additional benefits from unbundling gas service at 9 the residential customer level and implementing alternatives 10 to the traditional cost of service-based rate base/rate of 11 return method of setting gas utility rates; and 12 WHEREAS, Illinois natural gas consumers have historically 13 enjoyed natural gas service at high levels of quality and 14 reliability, which must be preserved in implementing a 15 transition to a more competitive, lesser regulated natural 16 gas industry; and 17 WHEREAS, A free and competitive market contemplates 18 efficiencies not presumed to exist in a highly regulated 19 environment, and such competition and efficiencies may be 20 beneficial for all gas consumers, large and small; and 21 WHEREAS, The need for Illinois to allow greater 22 competition and reduced regulation in its natural gas utility 23 industry, to implement initiatives that may allow residents 24 in this State to manage their energy costs through 25 competitive access and to position itself to respond to other 26 competitive initiatives warrants the direct attention of a 27 special committee of the Ninetieth General Assembly, pursuant 28 to a charge and a schedule that will produce comprehensive 29 and equitable proposed legislation for consideration by the 30 full General Assembly at the earliest reasonably feasible 31 date, consistent with allowing opportunity for participation 32 by interested entities, in order to enable legislation to be 90SJ0031 Engrossed -3- SRS90SJ0006JJsa 1 enacted by the General Assembly should it in its wisdom deem 2 it appropriate; therefore, be it 3 RESOLVED, BY THE SENATE OF THE NINETIETH GENERAL ASSEMBLY 4 OF THE STATE OF ILLINOIS, THE HOUSE OF REPRESENTATIVES 5 CONCURRING HEREIN, that a Joint Committee on Natural Gas 6 Utility Regulatory Reform shall be established, to consist 7 of, as voting members, six members of the Environment and 8 Energy Committee of the Senate, with four members appointed 9 from the majority party and two members from the minority 10 party, and six members of Environment and Energy Committee of 11 the House of Representatives with four members appointed from 12 the majority party and two members from the minority party; 13 and be it further 14 RESOLVED, That the respective House and Senate Committee 15 Chairmen shall serve as co-chairs of the Joint Committee and 16 the respective House and Senate Committee minority spokesmen 17 shall serve as spokesmen on the Joint Committee for the 18 minority members of the House and Senate; and be it further 19 RESOLVED, That the Senate appointments be made by the 20 President of the Senate and the Senate Minority Leader and 21 the House appointments be made by the Speaker of the House 22 and the House Minority Leader; and be it further 23 RESOLVED, That the Joint Committee is hereby charged to 24 consider any reports or studies of the evolution of the 25 natural gas industry and appropriate changes in the 26 regulatory framework sponsored by Illinois State agencies, 27 the agencies of other states or Illinois academic 28 institutions, including but not limited to, the Illinois 29 Commerce Commission and others representing various consumer 30 and utility interests, and reports or studies published in 31 recognized financial or utility industry publications; and be 32 it further 90SJ0031 Engrossed -4- SRS90SJ0006JJsa 1 RESOLVED, That the Joint Committee shall have the 2 authority to hold public hearings and take oral and written 3 testimony, as deemed necessary by the Joint Committee; and be 4 it further 5 RESOLVED, That the members of the Joint Committee shall 6 serve without compensation, but may be reimbursed for their 7 necessary expenses; and be it further 8 RESOLVED, The Joint Committee shall prepare and submit to 9 the members of the General Assembly a final report, including 10 specific legislative concepts, on or before January 1, 1998; 11 additionally, the General Assembly shall supply from existing 12 appropriations, sufficient additional staff support for 13 routine committee duties; and be it further 14 RESOLVED, That the Joint Committee shall cease to exist 15 upon adjournment sine die of the 90th General Assembly.