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Rep. Brandon W. Phelps
Filed: 5/17/2013
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1 | | AMENDMENT TO SENATE BILL 2266
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2 | | AMENDMENT NO. ______. Amend Senate Bill 2266 by replacing |
3 | | everything after the enacting clause with the following:
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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. |
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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, |
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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 |
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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 |
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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 |
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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 |
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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: |
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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) |
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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 |
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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 |
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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 |
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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. |
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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.
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21 | | Section 99. Effective date. This Act takes effect upon |
22 | | becoming law.".
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