Full Text of SB2266 98th General Assembly
SB2266ham003 98TH GENERAL ASSEMBLY | Rep. Brandon W. Phelps Filed: 5/17/2013
| | 09800SB2266ham003 | | LRB098 10244 AMC 46122 a |
|
| 1 | | AMENDMENT TO SENATE BILL 2266
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2266 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Public Utilities Act is amended by adding | 5 | | Sections 5-111 and 9-220.3 as follows: | 6 | | (220 ILCS 5/5-111 new) | 7 | | Sec. 5-111. Natural gas performance reporting. | 8 | | (a) The General Assembly recognizes that for well over a | 9 | | century Illinois residents and businesses have relied on the | 10 | | natural gas utility system. The General Assembly finds that in | 11 | | order for a natural gas utility to provide safe, reliable, and | 12 | | affordable service to the State's current and future utility | 13 | | customers, a utility must refurbish, rebuild, modernize, and | 14 | | expand its infrastructure and adequately train its workforce on | 15 | | appropriate operations procedures and policies designed to | 16 | | effectively maintain its infrastructure. |
| | | 09800SB2266ham003 | - 2 - | LRB098 10244 AMC 46122 a |
|
| 1 | | (b) A natural gas public utility shall report annually to | 2 | | the Commission the following information, compiled on a | 3 | | calendar-year basis, beginning with the first report on April | 4 | | 1, 2014: | 5 | | (1) the number of emergency calls with response times | 6 | | exceeding both 30 minutes and 60 minutes and the number of | 7 | | emergency calls in which the utility stopped the flow of | 8 | | natural gas on the system or appropriately vented natural | 9 | | gas in a time exceeding both 60 minutes and 90 minutes; | 10 | | (2) the number of incidents of damage per thousand gas | 11 | | facility locate requests to the utility's pipeline | 12 | | facilities resulting from utility error and the number of | 13 | | incidents of damage per thousand gas facility locate | 14 | | requests to the utility's pipeline facilities resulting | 15 | | from the fault of third parties; | 16 | | (3) the number of scheduled cathodic protection | 17 | | readings below -0.850 volts; | 18 | | (4) the number of service lines that were inactive for | 19 | | over 3 years and not disconnected from a source of supply; | 20 | | (5) the number of difficult to locate services | 21 | | replaced; | 22 | | (6) the number of remotely-readable cathodic | 23 | | protection devices; | 24 | | (7) the miles of main and numbers of services replaced | 25 | | that were constructed of cast iron, wrought iron, ductile | 26 | | iron, unprotected coated steel, unprotected bare steel, |
| | | 09800SB2266ham003 | - 3 - | LRB098 10244 AMC 46122 a |
|
| 1 | | mechanically coupled steel, copper, Cellulose Acetate | 2 | | Butyrate (CAB) plastic, pre-1973 DuPont Aldyl "A" | 3 | | polyethylene, PVC, or other types of materials identified | 4 | | by a State or federal governmental agency as being prone to | 5 | | leakage; | 6 | | (8) the number of miles of transmission facilities on | 7 | | which maximum allowable operating pressures have been | 8 | | established; | 9 | | (9) the number of miles of transmission facilities | 10 | | equipped with remotely controlled shut-off valve | 11 | | capability; and | 12 | | (10) the value in dollars of contracts in force with | 13 | | minority-owned, female-owned, and qualified | 14 | | service-disabled veteran-owned businesses. | 15 | | (c) Reports required under this Section shall be submitted | 16 | | to the Commission by April 1 of each year. Reports shall be | 17 | | verified in the same manner as Form 21 ILCC and contain the | 18 | | information specified in subsection (b) of this Section for the | 19 | | preceding calendar year. The reports shall further identify the | 20 | | number of jobs attributable to each of the reporting | 21 | | requirements in (b)(1) through (b)(10) of this Section. | 22 | | Following the submission of a utility's initial report, | 23 | | subsequent reports by the utility shall state year-over-year | 24 | | changes in the information being reported. The Commission shall | 25 | | post the reports on the public portion of its web site. | 26 | | (d) A natural gas utility shall submit an annual plan |
| | | 09800SB2266ham003 | - 4 - | LRB098 10244 AMC 46122 a |
|
| 1 | | specifying its goals for each of the items identified in | 2 | | subsection (b) of this Section, and such utility is expected to | 3 | | show reasonable and continuing progress in improving its | 4 | | performance under the criteria identified in subsection (b) of | 5 | | this Section. If the Commission finds, after notice and | 6 | | hearing, that a utility has failed to show progressive | 7 | | improvement in its performance under those criteria, the | 8 | | Commission may require the natural gas utility to submit a | 9 | | remediation plan for the criteria identified in subsection (b) | 10 | | of this Section designed to improve the utility's performance. | 11 | | (e) The Commission may adopt rules to implement the | 12 | | requirements of this Section. | 13 | | (220 ILCS 5/9-220.3 new) | 14 | | Sec. 9-220.3. Natural gas surcharges authorized. | 15 | | (a) Tariff. | 16 | | (1) Pursuant to Section 9-201 of this Act, a natural | 17 | | gas utility serving more than 700,000 customers may file a | 18 | | tariff for a surcharge which adjusts rates and charges to | 19 | | provide for recovery of costs associated with investments | 20 | | in qualifying infrastructure plant, independent of any | 21 | | other matters related to the utility's revenue | 22 | | requirement. | 23 | | (2) Within 30 days after the effective date of this | 24 | | amendatory Act of the 98th General Assembly, the Commission | 25 | | shall adopt emergency rules to implement the provisions of |
| | | 09800SB2266ham003 | - 5 - | LRB098 10244 AMC 46122 a |
|
| 1 | | this amendatory Act of the 98th General Assembly. The | 2 | | utility may file with the Commission tariffs implementing | 3 | | the provisions of this amendatory Act of the 98th General | 4 | | Assembly after the effective date of the emergency rules | 5 | | authorized by subsection (i). | 6 | | (3) The Commission shall issue an order approving, or | 7 | | approving with modification to ensure compliance with this | 8 | | Section, the tariff no later than 120 days after such | 9 | | filing of the tariffs filed pursuant to this Section. The | 10 | | utility shall have 7 days following the date of service of | 11 | | the order to notify the Commission in writing whether it | 12 | | will accept any modifications so identified in the order or | 13 | | whether it has elected not to proceed with the tariff. If | 14 | | the order includes no modifications or if the utility | 15 | | notifies the Commission that it will accept such | 16 | | modifications, the tariff shall take effect on the first | 17 | | day of the calendar year in which the Commission issues the | 18 | | order, subject to petitions for rehearing and appellate | 19 | | procedures. After the tariff takes effect, the utility may, | 20 | | upon 10 days' notice to the Commission, file to withdraw | 21 | | the tariff at any time, and the Commission shall approve | 22 | | such filing without suspension or hearing, subject to a | 23 | | final reconciliation as provided in subsection (e) of this | 24 | | Section. | 25 | | (4) When a natural gas utility withdraws the surcharge | 26 | | tariff, the utility shall not recover any additional |
| | | 09800SB2266ham003 | - 6 - | LRB098 10244 AMC 46122 a |
|
| 1 | | charges through the surcharge approved pursuant to this | 2 | | Section, subject to the resolution of the final | 3 | | reconciliation pursuant to subsection (e) of this Section. | 4 | | The utility's qualifying infrastructure investment net of | 5 | | accumulated depreciation may be transferred to the natural | 6 | | gas utility's rate base in the utility's next general rate | 7 | | case. The utility's delivery base rates in effect upon | 8 | | withdrawal of the surcharge tariff shall not be adjusted at | 9 | | the time the surcharge tariff is withdrawn. | 10 | | (5) A natural gas utility that is subject to its | 11 | | delivery base rates being fixed at their current rates | 12 | | pursuant to a Commission order entered in Docket No. | 13 | | 11-0046, notwithstanding the effective date of its tariff | 14 | | authorized pursuant to this Section, shall reflect in a | 15 | | tariff surcharge only those projects placed in service | 16 | | after the fixed rate period of the merger agreement has | 17 | | expired by its terms. | 18 | | (b) For purposes of this Section, "qualifying | 19 | | infrastructure plant" includes only plant additions placed in | 20 | | service not reflected in the rate base used to establish the | 21 | | utility's delivery base rates. "Costs associated with | 22 | | investments in qualifying infrastructure plant" shall include | 23 | | a return on qualifying infrastructure plant and recovery of | 24 | | depreciation and amortization expense on qualifying | 25 | | infrastructure plant, net of the depreciation included in the | 26 | | utility's base rates on any plant retired in conjunction with |
| | | 09800SB2266ham003 | - 7 - | LRB098 10244 AMC 46122 a |
|
| 1 | | the installation of the qualifying infrastructure plant. | 2 | | Collectively the "qualifying infrastructure plant" and "costs | 3 | | associated with investments in qualifying infrastructure | 4 | | plant" are referred to as the "qualifying infrastructure | 5 | | investment" and that are related to one or more of the | 6 | | following: | 7 | | (1) the installation of facilities to retire and | 8 | | replace underground natural gas facilities, including | 9 | | facilities appurtenant to facilities constructed of those | 10 | | materials such as meters, regulators, and services, and | 11 | | that are constructed of cast iron, wrought iron, ductile | 12 | | iron, unprotected coated steel, unprotected bare steel, | 13 | | mechanically coupled steel, copper, Cellulose Acetate | 14 | | Butyrate (CAB) plastic, pre-1973 DuPont Aldyl "A" | 15 | | polyethylene, PVC, or other types of materials identified | 16 | | by a State or federal governmental agency as being prone to | 17 | | leakage; | 18 | | (2) the relocation of meters from inside customers' | 19 | | facilities to outside; | 20 | | (3) the upgrading of the gas distribution system from a | 21 | | low pressure to a medium pressure system, including | 22 | | installation of high-pressure facilities to support the | 23 | | upgrade; | 24 | | (4) modernization investments by a combination | 25 | | utility, as defined in subsection (b) of Section 16-108.5 | 26 | | of this Act, to install: |
| | | 09800SB2266ham003 | - 8 - | LRB098 10244 AMC 46122 a |
|
| 1 | | (A) advanced gas meters in connection with the | 2 | | installation of advanced electric meters pursuant to | 3 | | Sections 16-108.5 and 16-108.6 of this Act; and | 4 | | (B) the communications hardware and software and | 5 | | associated system software that creates a network | 6 | | between advanced gas meters and utility business | 7 | | systems and allows the collection and distribution of | 8 | | gas-related information to customers and other parties | 9 | | in addition to providing information to the utility | 10 | | itself; | 11 | | (5) replacing high-pressure transmission pipelines and | 12 | | associated facilities identified as having a higher risk of | 13 | | leakage or failure or installing or replacing | 14 | | high-pressure transmission pipelines and associated | 15 | | facilities to establish records and maximum allowable | 16 | | operating pressures; | 17 | | (6) replacing difficult to locate mains and service | 18 | | pipes and associated facilities; and | 19 | | (7) replacing or installing transmission and | 20 | | distribution regulator stations, regulators, valves, and | 21 | | associated facilities to establish over-pressure | 22 | | protection. | 23 | | With respect to the installation of the facilities | 24 | | identified in paragraph (1) of subsection (b) of this Section, | 25 | | the natural gas utility shall determine priorities for such | 26 | | installation with consideration of projects either: (i) |
| | | 09800SB2266ham003 | - 9 - | LRB098 10244 AMC 46122 a |
|
| 1 | | integral to a general government public facilities improvement | 2 | | program or (ii) ranked in the highest risk categories in the | 3 | | utility's most recent Distribution Integrity Management Plan | 4 | | where removal or replacement is the remedial measure. | 5 | | (c) Qualifying infrastructure investment, defined in | 6 | | subsection (b) of this Section, recoverable through a tariff | 7 | | authorized by subsection (a) of this Section, shall not include | 8 | | costs or expenses incurred in the ordinary course of business | 9 | | for the ongoing or routine operations of the utility, | 10 | | including, but not limited to: | 11 | | (1) operating and maintenance costs; and | 12 | | (2) costs of facilities that are revenue-producing, | 13 | | which means facilities that are constructed or installed | 14 | | for the purpose of serving new customers. | 15 | | (d) Gas utility commitments. A natural gas utility that has | 16 | | in effect a natural gas surcharge tariff pursuant to this | 17 | | Section shall: | 18 | | (1) recognize that the General Assembly identifies | 19 | | improved public safety and reliability of natural gas | 20 | | facilities as the cornerstone upon which this Section is | 21 | | designed, and qualifying projects should be encouraged, | 22 | | selected, and prioritized based on these factors; and | 23 | | (2) provide information to the Commission as requested | 24 | | to demonstrate that (i) the projects included in the tariff | 25 | | are indeed qualifying projects and (ii) the projects are | 26 | | selected and prioritized taking into account improved |
| | | 09800SB2266ham003 | - 10 - | LRB098 10244 AMC 46122 a |
|
| 1 | | public safety and reliability. | 2 | | (3) The amount of qualifying infrastructure investment | 3 | | eligible for recovery under the tariff in the applicable | 4 | | calendar year is limited to the lesser of (i) the actual | 5 | | qualifying infrastructure plant placed in service in the | 6 | | applicable calendar year and (ii) the difference by which | 7 | | total plant additions in the applicable calendar year | 8 | | exceed the baseline amount, and subject to the limitation | 9 | | in subsection (g) of this Section. A natural gas utility | 10 | | can recover the costs of qualifying infrastructure | 11 | | investments through an approved surcharge tariff from the | 12 | | beginning of each calendar year subject to the | 13 | | reconciliation initiated under paragraph (2) of subsection | 14 | | (e) of this Section, during which the Commission may make | 15 | | adjustments to ensure that the limits defined in this | 16 | | paragraph are not exceeded. Further, if total plant | 17 | | additions in a calendar year do not exceed the baseline | 18 | | amount in the applicable calendar year, the Commission, | 19 | | during the reconciliation initiated under paragraph (2) of | 20 | | subsection (e) of this Section for the applicable calendar | 21 | | year, shall adjust the amount of qualifying infrastructure | 22 | | investment eligible for recovery under the tariff to zero. | 23 | | (4) For purposes of this Section, "baseline amount" | 24 | | means an amount equal to the utility's average of total | 25 | | depreciation expense, as reported on page 336, column (b) | 26 | | of the utility's ILCC Form 21, for the calendar years 2006 |
| | | 09800SB2266ham003 | - 11 - | LRB098 10244 AMC 46122 a |
|
| 1 | | through 2010. | 2 | | (e) Review of investment. | 3 | | (1) The amount of qualifying infrastructure investment | 4 | | shall be shown on an Information Sheet supplemental to the | 5 | | surcharge tariff and filed with the Commission monthly or | 6 | | some other time period at the option of the utility. The | 7 | | Information Sheet shall be accompanied by data showing the | 8 | | calculation of the qualifying infrastructure investment | 9 | | adjustment. Unless otherwise ordered by the Commission, | 10 | | each qualifying infrastructure investment adjustment shown | 11 | | on an Information Sheet shall become effective pursuant to | 12 | | the utility's approved tariffs. | 13 | | (2) For each calendar year in which a surcharge tariff | 14 | | is in effect, the natural gas utility shall file a petition | 15 | | with the Commission to initiate hearings to reconcile | 16 | | amounts billed under each surcharge authorized pursuant to | 17 | | this Section with the actual prudently incurred costs | 18 | | recoverable under this tariff in the preceding year. The | 19 | | petition filed by the natural gas utility shall include | 20 | | testimony and schedules that support the accuracy and the | 21 | | prudence of the qualifying infrastructure investment for | 22 | | the calendar year being reconciled. The petition filed | 23 | | shall also include the number of jobs attributable to the | 24 | | natural gas surcharge tariff as required by rule. The | 25 | | review of the utility's investment shall include | 26 | | identification and review of all plant that was ranked |
| | | 09800SB2266ham003 | - 12 - | LRB098 10244 AMC 46122 a |
|
| 1 | | within the highest risk categories in that utility's most | 2 | | recent Distribution Integrity Management Plan. | 3 | | (f) The rate of return applied shall be the overall rate of | 4 | | return authorized by the Commission in the utility's last gas | 5 | | rate case. | 6 | | (g) The cumulative amount of increases billed under the | 7 | | surcharge, since the utility's most recent delivery service | 8 | | rate order, shall not exceed an annual average 4% of the | 9 | | utility's delivery base rate revenues, but shall not exceed | 10 | | 5.5% in any given year. On the effective date of new delivery | 11 | | base rates, the surcharge shall be reduced to zero with respect | 12 | | to qualifying infrastructure investment that is transferred to | 13 | | the rate base used to establish the utility's delivery base | 14 | | rates, provided that the utility may continue to charge or | 15 | | refund any reconciliation adjustment determined pursuant to | 16 | | subsection (e) of this Section. | 17 | | (h) If a gas utility obtains a surcharge tariff under this | 18 | | Section 9-220.3, then it and its affiliates are excused from | 19 | | the rate case filing requirements contained in Sections | 20 | | 9-220(h) and 9-220(h-1). In the event a natural gas utility, | 21 | | prior to the effective date of this amendatory Act of the 98th | 22 | | General Assembly, made a rate case filing that is still pending | 23 | | on the effective date of this amendatory Act of the 98th | 24 | | General Assembly, the natural gas utility may, at the time it | 25 | | files its surcharge tariff with the Commission, also file a | 26 | | notice with the Commission to withdraw its rate case filing. |
| | | 09800SB2266ham003 | - 13 - | LRB098 10244 AMC 46122 a |
|
| 1 | | Any affiliate of such natural gas utility may also file to | 2 | | withdraw its rate case filing. Upon receipt of such notice, the | 3 | | Commission shall dismiss the rate case filing with prejudice | 4 | | and such tariffs and the record related thereto shall not be | 5 | | the subject of any further hearing, investigation, or | 6 | | proceeding of any kind related to rates for gas delivery | 7 | | services. Notwithstanding the foregoing, a natural gas utility | 8 | | shall not be permitted to withdraw a rate case filing for which | 9 | | a proposed order recommending a rate reduction is pending. A | 10 | | natural gas utility shall not be permitted to withdraw the gas | 11 | | delivery services tariffs that are the subject of Commission | 12 | | Docket Nos. 12-0511/12-0512 (cons.). None of the costs incurred | 13 | | for the withdrawn rate case are recoverable from ratepayers. | 14 | | (i) The Commission shall promulgate rules and regulations | 15 | | to carry out the provisions of this Section under the emergency | 16 | | rulemaking provisions set forth in Section 5-45 of the Illinois | 17 | | Administrative Procedure Act, and such emergency rules shall be | 18 | | effective no later than 30 days after the effective date of | 19 | | this amendatory Act of the 98th General Assembly. | 20 | | (j) This Section is repealed December 31, 2023.
| 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.".
|
|