093_HB2313

 
                                     LRB093 07456 JLS 07622 b

 1        AN ACT concerning public utilities.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Public Utilities Act is amended by adding
 5    Section 9-220.3 as follows:

 6        (220 ILCS5/9-220.3 new)
 7        Sec. 9-220.3.  Asbestos surcharges authorized.
 8        (a)  The  Commission  shall  authorize an electric or gas
 9    utility to implement a surcharge ("asbestos  rider"),  to  be
10    effective  no  earlier than January 1, 2007, to recover costs
11    associated with asbestos.
12        (b)  Recoverable costs under  an  asbestos  rider  for  a
13    given  year shall include, but not be limited to, the prudent
14    costs incurred by the electric or gas utility for:
15             (1)  injury and damage awards relating  to  asbestos
16        exposure;
17             (2)  litigation     expenses,    including    legal,
18        consulting, dispute resolution, and settlement costs; and
19             (3)  costs  related  to   insurance   coverage   and
20        insurance claims.
21        Recoverable costs under an asbestos rider, however, shall
22    not  include  any internal labor costs of the electric or gas
23    utility.
24        (c)  The cost of  site  remediation  (including  removal,
25    encapsulation,  or  other  appropriate  remediation  methods)
26    shall  also  be  recoverable  under  an asbestos rider if the
27    costs are associated with remediation of electric property or
28    gas property and the  site  remediation  is  performed  by  a
29    workforce  of  skilled  and  trained  employees equipped with
30    appropriate  technical  training  and  experience.   Adequate
31    skill, training,  and  expertise  shall  be  demonstrated  by
 
                            -2-      LRB093 07456 JLS 07622 b
 1    factors  such  as completion by the employee of an accredited
 2    or  otherwise  recognized  apprenticeship  program  for   the
 3    particular  craft,  trade,  or skill.  "Electric property" or
 4    "gas property" shall mean all plant and property in the  rate
 5    base  of  the  electric  utility  or  gas  utility  as  of or
 6    subsequent to October 1,  1996,  regardless  of  whether  the
 7    electric  or  gas  utility  has  subsequently  retired, sold,
 8    leased, or otherwise transferred such plant or property.
 9        (d)  Under  an  asbestos  rider,  all  related  insurance
10    recoveries shall be offset against costs charged through  the
11    rider, and allowable costs and revenues under the rider shall
12    be  reconciled  on  a  periodic basis to be determined by the
13    Commission, but not to exceed 3  years.   Recoverable  costs,
14    net  of  insurance recoveries, incurred between the effective
15    date of this amendatory Act of the 93rd General Assembly  and
16    December  31, 2006 may be deferred by an electric utility for
17    recovery through an asbestos rider provided that those  costs
18    and  recoveries  are booked to deferred accounts that are not
19    the subject of the Commission's determination of  the  return
20    on common equity pursuant to subsection (d) or (e) of Section
21    16-111.  Recoverable  costs,  net  of  insurance  recoveries,
22    incurred between the effective date of this amendatory Act of
23    the  93rd  General  Assembly  and  December  31,  2006 may be
24    deferred by a gas utility for recovery  through  an  asbestos
25    rider  provided that those costs and recoveries are booked to
26    deferred  accounts  that  are  not   the   subject   of   the
27    Commission's  determination  of  the  gas utility's return on
28    common equity. The electric  or  gas  utility  may  accrue  a
29    carrying  charge on the deferred amounts each month at a rate
30    equal to the Monthly Treasury Long-Term Average Rate for that
31    month, as published by the Board of Governors of the  Federal
32    Reserve  System  in  its  weekly H.15  Statistical Release or
33    successor publication. The Commission may determine that  any
34    such  deferred  amount  and  associated carrying costs may be
 
                            -3-      LRB093 07456 JLS 07622 b
 1    amortized over a period not to  exceed  24  months;  provided
 2    that  the  deferred amounts shall continue to accrue carrying
 3    charges at the stated rate during the amortization period.
 4        (e)  An electric or gas utility seeking to  implement  an
 5    asbestos  rider  shall  file  with  the Commission a proposed
 6    rider  complying  with  this  Section  and,  to  the   extent
 7    necessary,  revised  electric  or gas base rates removing the
 8    effect  of  any  recoverable  costs  (as   defined   therein)
 9    reflected  in  electric  or gas base rates at the time of the
10    filing.  The surcharge  under  an  asbestos  rider  shall  be
11    applicable  to  all  customers,  on  a  delivered  per kWh or
12    delivered per therm basis.   The  Commission  shall  issue  a
13    final  order approving or rejecting a proposed asbestos rider
14    no later than 120 days after its filing with the  Commission.
15    The  Commission  may reject a proposed asbestos rider only if
16    the proposed rider fails to conform to  the  requirements  of
17    this Section.

18        Section  99.  Effective date.  This Act takes effect upon
19    becoming law.