97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3419

 

Introduced 2/24/2011, by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/8-206  from Ch. 111 2/3, par. 8-206
220 ILCS 5/8-207  from Ch. 111 2/3, par. 8-207

    Amends the Public Utilities Act. Provides that notwithstanding any other provision of the Act, no electric or gas public utility shall disconnect service to a residential customer or consider a residential customer in violation of his or her deferred payment arrangement if the residential customer has made the required payment by or on the due date, but his or her payment was not recorded as made on time as a result of a policy or a technical error on the part of the electric or gas public utility. Provides that "payment by or on the due date" includes payment at any time on the day on which the required payment is owed.


LRB097 05523 ASK 45584 b

 

 

A BILL FOR

 

HB3419LRB097 05523 ASK 45584 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
5Sections 8-206 and 8-207 as follows:
 
6    (220 ILCS 5/8-206)  (from Ch. 111 2/3, par. 8-206)
7    Sec. 8-206. Winter termination for nonpayment.
8    (a) Notwithstanding any other provision of this Act, no
9electric or gas public utility shall disconnect service to any
10residential customer or mastermetered apartment building for
11nonpayment of a bill or deposit where gas or electricity is
12used as the primary source of space heating or is used to
13control or operate the primary source of space heating
14equipment at the premises during the period of time from
15December 1 through and including March 31 of the immediately
16succeeding calendar year, unless:
17        (1) The utility (i) has offered the customer a deferred
18    payment arrangement allowing for payment of past due
19    amounts over a period of not less than 4 months not to
20    extend beyond the following November and the option to
21    enter into a levelized payment plan for the payment of
22    future bills. The maximum down payment requirements shall
23    not exceed 10% of the amount past due and owing at the time

 

 

HB3419- 2 -LRB097 05523 ASK 45584 b

1    of entering into the agreement; and (ii) has provided the
2    customer with the names, addresses and telephone numbers of
3    governmental and private agencies which may provide
4    assistance to customers of public utilities in paying their
5    utility bills; the utility shall obtain the approval of an
6    agency before placing the name of that agency on any list
7    which will be used to provide such information to
8    customers;
9        (2) The customer has refused or failed to enter into a
10    deferred payment arrangement as described in paragraph (1)
11    of this subsection (a); and
12        (3) All notice requirements as provided by law and
13    rules or regulations of the Commission have been met.
14    (b) Prior to termination of service for any residential
15customer or mastermetered apartment building during the period
16from December 1 through and including March 31 of the
17immediately succeeding calendar year, all electric and gas
18public utilities shall, in addition to all other notices:
19        (1) Notify the customer or an adult residing at the
20    customer's premises by telephone, a personal visit to the
21    customer's premises or by first class mail, informing the
22    customer that:
23            (i) the customer's account is in arrears and the
24        customer's service is subject to termination for
25        nonpayment of a bill;
26            (ii) the customer can avoid disconnection of

 

 

HB3419- 3 -LRB097 05523 ASK 45584 b

1        service by entering into a deferred payment agreement
2        to pay past due amounts over a period not to extend
3        beyond the following November and the customer has the
4        option to enter into a levelized payment plan for the
5        payment of future bills;
6            (iii) the customer may apply for any available
7        assistance to aid in the payment of utility bills from
8        any governmental or private agencies from the list of
9        such agencies provided to the customer by the utility.
10        Provided, however, that a public utility shall be
11    required to make only one such contact with the customer
12    during any such period from December 1 through and
13    including March 31 of the immediately succeeding calendar
14    year.
15        (2) Each public utility shall maintain records which
16    shall include, but not necessarily be limited to, the
17    manner by which the customer was notified and the time,
18    date and manner by which any prior but unsuccessful
19    attempts to contact were made. These records shall also
20    describe the terms of the deferred payment arrangements
21    offered to the customer and those entered into by the
22    utility and customers. These records shall indicate the
23    total amount past due, the down payment, the amount
24    remaining to be paid and the number of months allowed to
25    pay the outstanding balance. No public utility shall be
26    required to retain records pertaining to unsuccessful

 

 

HB3419- 4 -LRB097 05523 ASK 45584 b

1    attempts to contact or deferred payment arrangements
2    rejected by the customer after such customer has entered
3    into a deferred payment arrangement with such utility.
4    (c) No public utility shall disconnect service for
5nonpayment of a bill until the lapse of 6 business days after
6making the notification required by paragraph (1) of subsection
7(b) so as to allow the customer an opportunity to:
8        (1) Enter into a deferred payment arrangement and the
9    option to enter into a levelized payment plan for the
10    payment of future bills.
11        (2) Contact a governmental or private agency that may
12    provide assistance to customers for the payment of public
13    utility bills.
14    (d) Any residential customer who enters into a deferred
15payment arrangement pursuant to this Act, and subsequently
16during that period of time set forth in subsection (a) becomes
17subject to termination, shall be given notice as required by
18law and any rule or regulation of the Commission prior to
19termination of service.
20    (e) During that time period set forth in subsection (a), a
21utility shall not require a down payment for a deposit from a
22residential customer in excess of 20% of the total deposit
23requested. An additional 4 months shall be allowed to pay the
24remainder of the deposit. This provision shall not apply to
25mastermetered apartment buildings or other nonresidential
26customers.

 

 

HB3419- 5 -LRB097 05523 ASK 45584 b

1    (f) During that period of time set forth in subsection (a),
2no utility may refuse to offer a deferred payment agreement to
3a residential customer who has defaulted on such an agreement
4within the past 12 months. However, no utility shall be
5required to enter into more than one deferred payment
6arrangement under this Section with any residential customer or
7mastermetered apartment building during the period from
8December 1 through and including March 31 of the immediately
9succeeding calendar year.
10    (g) In order to enable customers to take advantage of
11energy assistance programs, customers who can demonstrate that
12their applications for a local, state or federal energy
13assistance program have been approved may request that the
14amount they will be entitled to receive as a regular energy
15assistance payment be deducted and set aside from the amount
16past due on which they make deferred payment arrangements.
17Payment on the set-aside amount shall be credited when the
18energy assistance voucher or check is received, according to
19the utility's common business practice.
20    (h) In no event shall any utility send a final notice to
21any customer who has entered into a current deferred payment
22agreement and has not defaulted on that deferred payment
23agreement, unless the final notice pertains to a deposit
24request.
25    (i) Each utility shall include with each disconnection
26notice sent during the period for December 1 through and

 

 

HB3419- 6 -LRB097 05523 ASK 45584 b

1including March 31 of the immediately succeeding calendar year
2to a residential customer an insert explaining the above
3provisions and providing a telephone number of the utility
4company which the consumer may call to receive further
5information.
6    (j) Each utility shall file with the Commission prior to
7December 1 of each year a plan detailing the implementation of
8this Section. This plan shall contain, but not be limited to:
9        (1) a description of the methods to be used to notify
10    residential customers as required in this Section,
11    including the forms of written and oral notices which shall
12    be required to include all the information contained in
13    subsection (b) of this Section.
14        (2) a listing of the names, addresses and telephone
15    numbers of governmental and private agencies which may
16    provide assistance to residential customers in paying
17    their utility bills.
18        (3) the program of employee education and information
19    which shall be used by the company in the implementation of
20    this Section.
21        (4) a description of methods to be utilized to inform
22    residential customers of those governmental and private
23    agencies and current and planned methods of cooperation
24    with those agencies to identify the customers who qualify
25    for assistance in paying their utility bills.
26    A utility which has a plan on file with the Commission need

 

 

HB3419- 7 -LRB097 05523 ASK 45584 b

1not resubmit a new plan each year. However, any alteration of
2the plan on file must be submitted and approved prior to
3December 1 of any year.
4    All plans are subject to review and approval by the
5Commission. The Commission may direct a utility to alter its
6plan to comply with the requirements of this Section.
7    (k) Notwithstanding any other provision of this Act, no
8electric or gas public utility shall disconnect service to any
9residential customer who is a participant under Section 6 of
10the Energy Assistance Act for nonpayment of a bill or deposit
11where gas or electricity is used as the primary source of space
12heating or is used to control or operate the primary source of
13space heating equipment at the premises during the period of
14time from December 1 through and including March 31 of the
15immediately succeeding calendar year.
16    (l) Notwithstanding any other provision of this Act, no
17electric or gas public utility shall disconnect service to a
18residential customer or consider a residential customer in
19violation of his or her deferred payment arrangement if the
20residential customer has made the required payment by or on the
21due date, but his or her payment was not recorded as made on
22time as a result of a policy or a technical error on the part of
23the electric or gas public utility. For purposes of this
24subsection (l), "payment by or on the due date" includes
25payment at any time on the day on which the required payment is
26owed.

 

 

HB3419- 8 -LRB097 05523 ASK 45584 b

1(Source: P.A. 95-331, eff. 8-21-07; 95-876, eff. 8-21-08.)
 
2    (220 ILCS 5/8-207)  (from Ch. 111 2/3, par. 8-207)
3    Sec. 8-207. Any former residential customer whose gas or
4electric service was used to provide or control the primary
5source of space heating in the dwelling and whose service is
6disconnected for nonpayment of a bill or a deposit from
7December 1 of the prior winter's heating season through April 1
8of the current heating season shall be eligible for
9reconnection and a deferred payment arrangement under the
10provisions of this Section, subject to the following
11limitations:
12    A utility shall not be required to reconnect service to,
13and enter into a deferred payment arrangement with, a former
14customer under the provisions of this Section (1) except
15between November 1 and April 1 of the current heating season
16for former customers who do not have applications pending for
17the program described in Section 6 of the Energy Assistance
18Act, and except between October 1 and April 1 of the current
19heating season for all former customers who do have
20applications pending for the program described in Section 6 of
21the Energy Assistance Act and who provide proof of application
22to the utility, (2) in 2 consecutive years, (3) unless that
23former customer has paid at least 33 1/3% of the amount billed
24for utility service rendered by that utility subsequent to
25December 1 of the prior year, or (4) in any instance where the

 

 

HB3419- 9 -LRB097 05523 ASK 45584 b

1utility can show there has been tampering with the utility's
2wires, pipes, meters (including locking devices), or other
3service equipment and further shows that the former customer
4enjoyed the benefit of utility service obtained in the
5aforesaid manner.
6    The terms and conditions of any deferred payment
7arrangements established by the utility and a former customer
8shall take into consideration the following factors, based upon
9information available from current utility records or provided
10by the former customer:
11        (1) the amount past due;
12        (2) the former customer's ability to pay;
13        (3) the former customer's payment history;
14        (4) the reasons for the accumulation of the past due
15    amounts; and
16        (5) any other relevant factors relating to the former
17    customer's circumstances.
18    After the former customer's eligibility has been
19established in accordance with the first paragraph of this
20Section and, upon the establishment of a deferred payment
21agreement, the former customer shall pay 1/3 of the amount past
22due (including reconnecting charge, if any) and 1/3 of any
23deposit required by the utility.
24    Upon the payment of 1/3 of the amount past due and 1/3 of
25any deposit required by the utility, the former customer's
26service shall be reconnected as soon as possible. The company

 

 

HB3419- 10 -LRB097 05523 ASK 45584 b

1and the former customer shall agree to a payment schedule for
2the remaining balances which will reasonably allow the former
3customer to make the payments on the remainder of the deposit
4and the past due balance while paying current bills during the
5winter heating season. However, the utility is not obliged to
6make payment arrangements extending beyond the following
7November. The utility shall allow the former customer a minimum
8of 4 months in which to retire the past due balance and 3
9months in which to pay the remainder of the deposit. The former
10customer shall also be informed that payment on the amounts
11past due and the deposit, if any, plus the current bills must
12be paid by the due date or the customer may face termination of
13service pursuant to this Section and Section 8-206.
14    The Commission shall develop rules to govern the
15reconnection of a former customer who demonstrates a financial
16inability to meet the requirement of 1/3 of the amount past due
17and 1/3 of any deposit requested by the utility. The
18Commission's rules shall establish a means by which the former
19customer's utility service may be reconnected through the
20payment of a reasonable amount and upon entering into a
21deferred payment agreement.
22    Any payment agreement made shall be in writing, with a copy
23provided to the former customer. The renegotiation and
24reinstatement of a customer and the establishment of a budget
25payment plan shall be pursuant to rules established by the
26Commission.

 

 

HB3419- 11 -LRB097 05523 ASK 45584 b

1    Notwithstanding any other provision of this Act, no
2electric or gas public utility shall disconnect service to a
3residential customer or consider a residential customer in
4violation of his or her deferred payment arrangement if the
5residential customer has made the required payment by or on the
6due date, but his or her payment was not recorded as made on
7time as a result of a policy or a technical error on the part of
8the electric or gas public utility. For purposes of this
9Section, "payment by or on the due date" includes payment at
10any time on the day on which the required payment is owed.
11    Not later than September 15 of each year, every gas and
12electric utility shall conduct a survey of all former
13residential customers whose gas or electric service was used to
14provide or control the primary source of space heating in the
15dwelling and whose gas or electric service was terminated for
16nonpayment of a bill or deposit from December 1 of the previous
17year to September 15 of that year and where service at that
18premises has not been restored. Not later than October 1 of
19each year the utility shall notify each of these former
20customers that the gas or electric service will be restored by
21the company for the coming heating season if the former
22customer contacts the utility and makes arrangements with the
23utility for reconnection of service under the conditions set
24forth in this Section. A utility shall notify the former
25customer or an adult member of the household by personal visit,
26telephone contact or mailing of a letter by first class mail to

 

 

HB3419- 12 -LRB097 05523 ASK 45584 b

1the last known address of that former customer. The utility
2shall keep records which would indicate the date, form and the
3results of such contact.
4    Each gas and electric utility which has former customers
5affected by this Section shall file reports with the Commission
6providing such information as the Commission may deem
7appropriate. The Commission shall notify each gas and electric
8utility prior to August 1 of each year concerning the
9information which is to be included in the report for that
10year.
11    In no event shall any actions taken by a utility in
12compliance with this Section be deemed to abrogate or in any
13way interfere with the utility's rights to pursue the normal
14collection processes otherwise available to it.
15    The Commission shall promulgate rules to implement this
16Section.
17(Source: P.A. 92-690, eff. 7-18-02.)