98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2335

Introduced 2/15/2013, by Sen. Don Harmon

SYNOPSIS AS INTRODUCED:
220 ILCS 5/16-118

Amends the Public Utilities Act. Requires an electric utility with more than 100,000 customers in this State to make available to alternative retail electricity suppliers a list of customer names, addresses, and other information as the Commission may deem necessary to allow for effective marketing of retail electricity and related services from alternative retail electricity suppliers. Provides that customers shall be provided an annual notice that informs the customer that their name is on the list and provides information on how to be removed from the list by contacting the utility. Specifies that the provisions do not limit the ability of the customer to request their name be removed at any other time. Effective immediately.
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A BILL FOR

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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. Receivables for power and
24energy service of alternative retail electric suppliers or
25electric utilities other than the electric utility in whose
26service area the retail customers are located shall be

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1purchased by the electric utility at a just and reasonable
2discount rate to be reviewed and approved by the Commission
3after notice and hearing. The discount rate shall be based on
4the electric utility's historical bad debt and any reasonable
5start-up costs and administrative costs associated with the
6electric utility's purchase of receivables. The discounted
7rate for purchase of receivables shall be included in the
8tariff filed pursuant to this subsection (c). The discount rate
9filed pursuant to this subsection (c) shall be subject to
10periodic Commission review. The electric utility retains the
11right to impose the same terms on retail customers with respect
12to credit and collection, including requests for deposits, and
13retain the electric utility's right to disconnect the retail
14customers, if it does not receive payment for its tariffed
15services or purchased receivables, in the same manner that it
16would be permitted to if the retail customers purchased power
17and energy from the electric utility. The tariff filed pursuant
18to this subsection (c) shall permit the electric utility to
19recover from retail customers any uncollected receivables that
20may arise as a result of the purchase of receivables under this
21subsection (c), may also include other just and reasonable
22terms and conditions, and shall provide for the prudently
23incurred costs associated with the provision of this service
24pursuant to this subsection (c). Nothing in this subsection (c)
25permits the double recovery of bad debt expenses from
26customers.

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1 (d) An electric utility with more than 100,000 customers
2shall file a tariff pursuant to Article IX of this Act that
3would provide alternative retail electric suppliers or
4electric utilities other than the electric utility in whose
5service area retail customers are located with the option to
6have the electric utility produce and provide single bills to
7the retail customers for both the electric power and energy
8service provided by the alternative retail electric supplier or
9other electric utility and the delivery services provided by
10the electric utility to the customers. The tariffs filed
11pursuant to this subsection shall require the electric utility
12to collect and remit customer payments for electric power and
13energy service provided by alternative retail electric
14suppliers or electric utilities other than the electric utility
15in whose service area retail customers are located. The tariff
16filed pursuant to this subsection shall require the electric
17utility to include on each bill to retail customers an
18identification of the alternative retail electric supplier or
19other electric utility that elects the billing option. The
20tariff filed pursuant to this subsection (d) may also include
21other just and reasonable terms and conditions and shall
22provide for the recovery of prudently incurred costs associated
23with the provision of service pursuant to this subsection (d).
24The costs associated with the provision of service pursuant to
25this Section shall be subject to periodic Commission review.
26 (e) An electric utility with more than 100,000 customers in

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1this State shall file a tariff pursuant to Article IX of this
2Act that provides alternative retail electric suppliers, and
3electric utilities other than the electric utility in whose
4service area the retail customers are located, with the option
5to have the electric utility purchase 2 billing cycles worth of
6uncollectible receivables for power and energy service
7provided to residential retail customers and to
8non-residential retail customers with a non-coincident peak
9demand of less than 400 kilowatts upon returning that customer
10to that electric utility for delivery and energy service after
11that alternative retail electric supplier, or an electric
12utility other than the electric utility in whose service area
13the retail customer is located, has made reasonable collection
14efforts on that account. Uncollectible receivables for power
15and energy service of alternative retail electric suppliers, or
16electric utilities other than the electric utility in whose
17service area the retail customers are located, shall be
18purchased by the electric utility at a just and reasonable
19discount rate to be reviewed and approved by the Commission,
20after notice and hearing. The discount rate shall be based on
21the electric utility's historical bad debt for receivables that
22are outstanding for a similar length of time and any reasonable
23start-up costs and administrative costs associated with the
24electric utility's purchase of receivables. The discounted
25rate for purchase of uncollectible receivables shall be
26included in the tariff filed pursuant to this subsection (e).

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1The electric utility retains the right to impose the same terms
2on these retail customers with respect to credit and
3collection, including requests for deposits, and retains the
4right to disconnect these retail customers, if it does not
5receive payment for its tariffed services or purchased
6receivables, in the same manner that it would be permitted to
7if the retail customers had purchased power and energy from the
8electric utility. The tariff filed pursuant to this subsection
9(e) shall permit the electric utility to recover from retail
10customers any uncollectable receivables that may arise as a
11result of the purchase of uncollectible receivables under this
12subsection (e), may also include other just and reasonable
13terms and conditions, and shall provide for the prudently
14incurred costs associated with the provision of this service
15pursuant to this subsection (e). Nothing in this subsection (e)
16permits the double recovery of utility bad debt expenses from
17customers. The electric utility may file a joint tariff for
18this subsection (e) and subsection (c) of this Section.
19 (f) An electric utility with more than 100,000 customers in
20this State shall make available to alternative retail
21electricity suppliers a list of customer names, addresses, and
22other information as the Commission may deem necessary to allow
23for effective marketing of retail electricity and related
24services from alternative retail electricity suppliers.
25Customers shall be provided an annual notice that informs the
26customer that their name is on the list and provides

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1information on how to be removed from the list by contacting
2the utility. Nothing in this Section limits the ability of the
3customer to request their name be removed at any other time.
4(Source: P.A. 95-700, eff. 11-9-07.)
5 Section 99. Effective date. This Act takes effect upon
6becoming law.