(305 ILCS 20/2) (from Ch. 111 2/3, par. 1402)
Sec. 2. Findings and Intent.
(a) The General Assembly finds that:
(1) the health, welfare, and prosperity of the
| people of the State of Illinois require that all citizens receive essential levels of heat and electric service regardless of economic circumstance; | |
(2) public utilities and other entities providing |
| such services are entitled to receive proper payment for services actually rendered; | |
(3) variability of Federal low income energy |
| assistance funding necessitates a State response to ensure the continuity and the further development of energy assistance and related policies and programs within Illinois; | |
(4) energy assistance policies and programs in |
| effect in Illinois have benefited all Illinois citizens, and should therefore be continued with the modifications provided herein; and | |
(5) low‑income households are unable to afford |
| essential utility services and other necessities, such as food, shelter, and medical care; the health and safety of those who are unable to afford essential utility services suffer when monthly payments for these services exceed a reasonable percentage of the customer's household income; costs of collecting past due bills and uncollectible balances are reflected in rates paid by all ratepayers; society benefits if essential utility services are affordable and arrearages and disconnections are minimized for those most in need. | |
(b) Consistent with its findings, the General Assembly declares that it is the policy of the State that:
(1) a comprehensive low income energy assistance |
| policy and program should be established which incorporates income assistance, home weatherization, and other measures to ensure that citizens have access to affordable energy services; | |
(2) the ability of public utilities and other |
| entities to receive just compensation for providing services should not be jeopardized by this policy; | |
(3) resources applied in achieving this policy |
| should be coordinated and efficiently utilized through the integration of public programs and through the targeting of assistance; and | |
(4) the State should utilize all appropriate and |
| available means to fund this program and, to the extent possible, should identify and utilize sources of funding which complement State tax revenues. | |
(Source: P.A. 96‑33, eff. 7‑10‑09.) |
(305 ILCS 20/5) (from Ch. 111 2/3, par. 1405)
Sec. 5. Policy Advisory Council.
(a) Within the Department of Commerce and Economic Opportunity is created a Low Income Energy Assistance Policy Advisory Council.
(b) The Council shall be chaired by the Director of Commerce and Economic Opportunity or his or her designee. There shall be 20 members of the Low Income Energy Assistance Policy Advisory Council, including the chairperson and the following members:
(1) one member designated by the Illinois Commerce
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(2) one member designated by the Illinois Department |
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(3) one member designated by the Illinois Energy |
| Association to represent electric public utilities serving in excess of 1 million customers in this State; | |
(4) one member agreed upon by gas public utilities |
| that serve more than 500,000 and fewer than 1,500,000 customers in this State; | |
(5) one member agreed upon by gas public utilities |
| that serve 1,500,000 or more customers in this State; | |
(6) one member designated by the Illinois Energy |
| Association to represent combination gas and electric public utilities; | |
(7) one member agreed upon by the Illinois Municipal |
| Electric Agency and the Association of Illinois Electric Cooperatives; | |
(8) one member agreed upon by the Illinois |
| Industrial Energy Consumers; | |
(9) three members designated by the Department to |
| represent low income energy consumers; | |
(10) two members designated by the Illinois |
| Community Action Association to represent local agencies that assist in the administration of this Act; | |
(11) one member designated by the Citizens Utility |
| Board to represent residential energy consumers; | |
(12) one member designated by the Illinois Retail |
| Merchants Association to represent commercial energy customers; | |
(13) one member designated by the Department to |
| represent independent energy providers; and | |
(14) three members designated by the Mayor of the |
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(c) Designated and appointed members shall serve 2 year terms and until their successors are appointed and qualified. The designating organization shall notify the chairperson of any changes or substitutions of a designee within 10 business days of a change or substitution. Members shall serve without compensation, but may receive reimbursement for actual costs incurred in fulfilling their duties as members of the Council.
(d) The Council shall have the following duties:
(1) to monitor the administration of this Act to |
| ensure effective, efficient, and coordinated program development and implementation; | |
(2) to assist the Department in developing and |
| administering rules and regulations required to be promulgated pursuant to this Act in a manner consistent with the purpose and objectives of this Act; | |
(3) to facilitate and coordinate the collection and |
| exchange of all program data and other information needed by the Department and others in fulfilling their duties pursuant to this Act; | |
(4) to advise the Department on the proper level of |
| support required for effective administration of the Act; | |
(5) to provide a written opinion concerning any |
| regulation proposed pursuant to this Act, and to review and comment on any energy assistance or related plan required to be prepared by the Department; | |
(6) to advise the Department on the use of funds |
| collected pursuant to Section 11 of this Act, and on any changes to existing low income energy assistance programs to make effective use of such funds, so long as such uses and changes are consistent with the requirements of the Act. | |
(Source: P.A. 94‑793, eff. 5‑19‑06.) |
(305 ILCS 20/8) (from Ch. 111 2/3, par. 1408)
Sec. 8. Program Reports.
(a) The Department of Natural Resources shall prepare and submit to the Governor and the General Assembly reports on September 30 biennially, beginning in 2003, evaluating the effectiveness of the energy assistance and weatherization policies authorized by this Act. The first report shall cover such effects during the first winter during which the program authorized by this Act, is in operation, and successive reports shall cover effects since the issuance of the preceding report.
(1) Reports issued pursuant to this Section shall be
| limited to, information concerning the effects of the policies authorized by this Act on (1) the ability of eligible applicants to obtain and maintain adequate and affordable winter energy services and (2) changes in the costs and prices of winter energy services for people who do not receive energy assistance pursuant to this Act. | |
(2) The Department of Natural Resources shall by |
| September 30, 2002, in consultation with the Policy Advisory Council, determine the kinds of numerical and other information needed to conduct the evaluations required by this Section, and shall advise the Policy Advisory Council of such information needs in a timely manner. The Department of Commerce and Economic Opportunity, the Department of Human Services, and the Illinois Commerce Commission shall each provide such information as the Department of Natural Resources may require to ensure that the evaluation reporting requirement established by this Section can be met. | |
(b) On or before December 31, 2002, 2004, 2006, and 2007, the Department shall prepare a report for the General Assembly on the expenditure of funds appropriated for the programs authorized under this Act.
(c) On or before December 31 of each year in 2004, 2006, and 2007, the Department shall, in consultation with the Council, prepare and submit evaluation reports to the Governor and the General Assembly outlining the effects of the program designed under this Act on the following as it relates to the propriety of continuing the program:
(1) the definition of an eligible low income |
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(2) access of low income residential customers to |
| essential energy services; | |
(3) past due amounts owed to utilities by low income |
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(4) appropriate measures to encourage energy |
| conservation, efficiency, and responsibility among low income residential customers; | |
(5) the activities of the Department in the |
| development and implementation of energy assistance and related policies and programs, which characterizes progress toward meeting the objectives and requirements of this Act, and which recommends any statutory changes which might be needed to further such progress. | |
(d) The Department shall by September 30, 2002 in consultation with the Council determine the kinds of numerical and other information needed to conduct the evaluations required by this Section.
(e) The Illinois Commerce Commission shall require each public utility providing heating or electric service to compile and submit any numerical and other information needed by the Department of Natural Resources to meet its reporting obligations.
(Source: P.A. 95‑331, eff. 8‑21‑07; 96‑154, eff. 1‑1‑10.) |
(305 ILCS 20/13)
(Section scheduled to be repealed on December 31, 2013)
Sec. 13. Supplemental Low‑Income Energy Assistance Fund.
(a) The Supplemental Low‑Income Energy Assistance Fund is hereby created as a special fund in the State Treasury. The Supplemental Low‑Income Energy Assistance Fund is authorized to receive moneys from voluntary donations from individuals, foundations, corporations, and other sources, moneys received pursuant to Section 17, and, by statutory deposit, the moneys collected pursuant to this Section. The Fund is also authorized to receive voluntary donations from individuals, foundations, corporations, and other sources, as well as contributions made in accordance with Section 507MM of the Illinois Income Tax Act. Subject to appropriation, the Department shall use moneys from the Supplemental Low‑Income Energy Assistance Fund for payments to electric or gas public utilities, municipal electric or gas utilities, and electric cooperatives on behalf of their customers who are participants in the program authorized by Sections 4 and 18 of this Act, for the provision of weatherization services and for administration of the Supplemental Low‑Income Energy Assistance Fund. The yearly expenditures for weatherization may not exceed 10% of the amount collected during the year pursuant to this Section. The yearly administrative expenses of the Supplemental Low‑Income Energy Assistance Fund may not exceed 10% of the amount collected during that year pursuant to this Section.
(b) Notwithstanding the provisions of Section 16‑111 of the Public Utilities Act but subject to subsection (k) of this Section, each public utility, electric cooperative, as defined in Section 3.4 of the Electric Supplier Act, and municipal utility, as referenced in Section 3‑105 of the Public Utilities Act, that is engaged in the delivery of electricity or the distribution of natural gas within the State of Illinois shall, effective January 1, 1998, assess each of its customer accounts a monthly Energy Assistance Charge for the Supplemental Low‑Income Energy Assistance Fund. The delivering public utility, municipal electric or gas utility, or electric or gas cooperative for a self‑assessing purchaser remains subject to the collection of the fee imposed by this Section. The monthly charge shall be as follows:
(1) $0.48 per month on each account for residential |
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(2) $0.48 per month on each account for residential |
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(3) $4.80 per month on each account for |
| non‑residential electric service which had less than 10 megawatts of peak demand during the previous calendar year; |
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(4) $4.80 per month on each account for |
| non‑residential gas service which had distributed to it less than 4,000,000 therms of gas during the previous calendar year; |
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(5) $360 per month on each account for |
| non‑residential electric service which had 10 megawatts or greater of peak demand during the previous calendar year; and |
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(6) $360 per month on each account for |
| non‑residential gas service which had 4,000,000 or more therms of gas distributed to it during the previous calendar year. |
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The incremental change to such charges imposed by this |
| amendatory Act of the 96th General Assembly shall not (i) be used for any purpose other than to directly assist customers and (ii) be applicable to utilities serving less than 100,000 customers in Illinois on January 1, 2009. |
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In addition, electric and gas utilities have committed, |
| and shall contribute, a one‑time payment of $22 million to the Fund, within 10 days after the effective date of the tariffs established pursuant to Sections 16‑111.8 and 19‑145 of the Public Utilities Act to be used for the Department's cost of implementing the programs described in Section 18 of this amendatory Act of the 96th General Assembly, the Arrearage Reduction Program described in Section 18, and the programs described in Section 8‑105 of the Public Utilities Act. If a utility elects not to file a rider within 90 days after the effective date of this amendatory Act of the 96th General Assembly, then the contribution from such utility shall be made no later than February 1, 2010. |
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(c) For purposes of this Section:
(1) "residential electric service" means electric |
| utility service for household purposes delivered to a dwelling of 2 or fewer units which is billed under a residential rate, or electric utility service for household purposes delivered to a dwelling unit or units which is billed under a residential rate and is registered by a separate meter for each dwelling unit; |
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(2) "residential gas service" means gas utility |
| service for household purposes distributed to a dwelling of 2 or fewer units which is billed under a residential rate, or gas utility service for household purposes distributed to a dwelling unit or units which is billed under a residential rate and is registered by a separate meter for each dwelling unit; |
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(3) "non‑residential electric service" means electric |
| utility service which is not residential electric service; and |
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(4) "non‑residential gas service" means gas utility |
| service which is not residential gas service. |
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(d) Within 30 days after the effective date of this amendatory Act of the 96th General Assembly, each public utility engaged in the delivery of electricity or the distribution of natural gas shall file with the Illinois Commerce Commission tariffs incorporating the Energy Assistance Charge in other charges stated in such tariffs, which shall become effective no later than the beginning of the first billing cycle following such filing.
(e) The Energy Assistance Charge assessed by electric and gas public utilities shall be considered a charge for public utility service.
(f) By the 20th day of the month following the month in which the charges imposed by the Section were collected, each public utility, municipal utility, and electric cooperative shall remit to the Department of Revenue all moneys received as payment of the Energy Assistance Charge on a return prescribed and furnished by the Department of Revenue showing such information as the Department of Revenue may reasonably require; provided, however, that a utility offering an Arrearage Reduction Program pursuant to Section 18 of this Act shall be entitled to net those amounts necessary to fund and recover the costs of such Program as authorized by that Section that is no more than the incremental change in such Energy Assistance Charge authorized by this amendatory Act of the 96th General Assembly. If a customer makes a partial payment, a public utility, municipal utility, or electric cooperative may elect either: (i) to apply such partial payments first to amounts owed to the utility or cooperative for its services and then to payment for the Energy Assistance Charge or (ii) to apply such partial payments on a pro‑rata basis between amounts owed to the utility or cooperative for its services and to payment for the Energy Assistance Charge.
(g) The Department of Revenue shall deposit into the Supplemental Low‑Income Energy Assistance Fund all moneys remitted to it in accordance with subsection (f) of this Section; provided, however, that the amounts remitted by each utility shall be used to provide assistance to that utility's customers. The utilities shall coordinate with the Department to establish an equitable and practical methodology for implementing this subsection (g) beginning with the 2010 program year.
(h) On or before December 31, 2002, the Department shall prepare a report for the General Assembly on the expenditure of funds appropriated from the Low‑Income Energy Assistance Block Grant Fund for the program authorized under Section 4 of this Act.
(i) The Department of Revenue may establish such rules as it deems necessary to implement this Section.
(j) The Department of Commerce and Economic Opportunity may establish such rules as it deems necessary to implement this Section.
(k) The charges imposed by this Section shall only apply to customers of municipal electric or gas utilities and electric or gas cooperatives if the municipal electric or gas utility or electric or gas cooperative makes an affirmative decision to impose the charge. If a municipal electric or gas utility or an electric cooperative makes an affirmative decision to impose the charge provided by this Section, the municipal electric or gas utility or electric cooperative shall inform the Department of Revenue in writing of such decision when it begins to impose the charge. If a municipal electric or gas utility or electric or gas cooperative does not assess this charge, the Department may not use funds from the Supplemental Low‑Income Energy Assistance Fund to provide benefits to its customers under the program authorized by Section 4 of this Act.
In its use of federal funds under this Act, the Department may not cause a disproportionate share of those federal funds to benefit customers of systems which do not assess the charge provided by this Section.
This Section is repealed effective December 31, 2013 unless renewed by action of the General Assembly. The General Assembly shall consider the results of the evaluations described in Section 8 in its deliberations.
(Source: P.A. 95‑48, eff. 8‑10‑07; 95‑331, eff. 8‑21‑07; 96‑33, eff. 7‑10‑09; 96‑154, eff. 1‑1‑10; 96‑1000, eff. 7‑2‑10.) |
(305 ILCS 20/18)
Sec. 18. Financial assistance; payment plans.
(a) The Percentage of Income Payment Plan (PIPP or PIP Plan) is hereby created as a mandatory bill payment assistance program for low‑income residential customers of utilities serving more than 100,000 retail customers as of January 1, 2009. The PIP Plan will:
(1) bring participants' gas and electric bills into
| the range of affordability; | |
(2) provide incentives for participants to make |
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(3) encourage participants to reduce usage and |
| participate in conservation and energy efficiency measures that reduce the customer's bill and payment requirements; and | |
(4) identify participants whose homes are most in |
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(b) For purposes of this Section:
(1) "LIHEAP" means the energy assistance program |
| established under the Illinois Energy Assistance Act and the Low‑Income Home Energy Assistance Act of 1981. | |
(2) "Plan participant" is an eligible participant who |
| is also eligible for the PIPP and who will receive either a percentage of income payment credit under the PIPP criteria set forth in this Act or a benefit pursuant to Section 4 of this Act. Plan participants are a subset of eligible participants. | |
(3) "Pre‑program arrears" means the amount a plan |
| participant owes for gas or electric service at the time the participant is determined to be eligible for the PIPP or the program set forth in Section 4 of this Act. | |
(4) "Eligible participant" means any person who has |
| applied for, been accepted and is receiving residential service from a gas or electric utility and who is also eligible for LIHEAP. | |
(c) The PIP Plan shall be administered as follows:
(1) The Department shall coordinate with Local |
| Administrative Agencies (LAAs), to determine eligibility for the Illinois Low Income Home Energy Assistance Program (LIHEAP) pursuant to the Energy Assistance Act, provided that eligible income shall be no more than 150% of the poverty level. Applicants will be screened to determine whether the applicant's projected payments for electric service or natural gas service over a 12‑month period exceed the criteria established in this Section. To maintain the financial integrity of the program, the Department may limit eligibility to households with income below 125% of the poverty level. | |
(2) The Department shall establish the percentage of |
| income formula to determine the amount of a monthly credit, not to exceed $150 per month per household, not to exceed $1,800 annually, that will be applied to PIP Plan participants' utility bills based on the portion of the bill that is the responsibility of the participant provided that the percentage shall be no more than a total of 6% of the relevant income for gas and electric utility bills combined, but in any event no less than $10 per month, unless the household does not pay directly for heat, in which case its payment shall be 2.4% of income but in any event no less than $5 per month. The Department may establish a minimum credit amount based on the cost of administering the program and may deny credits to otherwise eligible participants if the cost of administering the credit exceeds the actual amount of any monthly credit to a participant. If the participant takes both gas and electric service, 66.67% of the credit shall be allocated to the entity that provides the participant's primary energy supply for heating. Each participant shall enter into a levelized payment plan for, as applicable, gas and electric service and such plans shall be implemented by the utility so that a participant's usage and required payments are reviewed and adjusted regularly, but no more frequently than quarterly. Nothing in this Section is intended to prohibit a customer, who is otherwise eligible for LIHEAP, from participating in the program described in Section 4 of this Act. Eligible participants who receive such a benefit shall be considered plan participants and shall be eligible to participate in the Arrearage Reduction Program described in item (5) of this subsection (c). | |
(3) The Department shall remit, through the LAAs, to |
| the utility or participating alternative supplier that portion of the plan participant's bill that is not the responsibility of the participant. In the event that the Department fails to timely remit payment to the utility, the utility shall be entitled to recover all costs related to such nonpayment through the automatic adjustment clause tariffs established pursuant to Section 16‑111.8 and Section 19‑145 of the Public Utilities Act. For purposes of this item (3) of this subsection (c), payment is due on the date specified on the participant's bill. The Department, the Department of Revenue and LAAs shall adopt processes that provide for the timely payment required by this item (3) of this subsection (c). | |
(4) A plan participant is responsible for all actual |
| charges for utility service in excess of the PIPP credit. Pre‑program arrears that are included in the Arrearage Reduction Program described in item (5) of this subsection (c) shall not be included in the calculation of the levelized payment plan. Emergency or crisis assistance payments shall not affect the amount of any PIPP credit to which a participant is entitled. | |
(5) Electric and gas utilities subject to this |
| Section shall implement an Arrearage Reduction Program (ARP) for plan participants as follows: for each month that a plan participant timely pays his or her utility bill, the utility shall apply a credit to a portion of the participant's pre‑program arrears, if any, equal to one‑twelfth of such arrearage provided that the total amount of arrearage credits shall equal no more than $1,000 annually for each participant for gas and no more than $1,000 annually for each participant for electricity. In the third year of the PIPP, the Department, in consultation with the Policy Advisory Council established pursuant to Section 5 of this Act, shall determine by rule an appropriate per participant total cap on such amounts, if any. Those plan participants participating in the ARP shall not be subject to the imposition of any additional late payment fees on pre‑program arrears covered by the ARP. In all other respects, the utility shall bill and collect the monthly bill of a plan participant pursuant to the same rules, regulations, programs and policies as applicable to residential customers generally. Participation in the Arrearage Reduction Program shall be limited to the maximum amount of funds available as set forth in subsection (f) of Section 13 of this Act. In the event any donated funds under Section 13 of this Act are specifically designated for the purpose of funding the ARP, the Department shall remit such amounts to the utilities upon verification that such funds are needed to fund the ARP. | |
(6) The Department may terminate a plan participant's |
| eligibility for the PIP Plan upon notification by the utility that the participant's monthly utility payment is more than 45 days past due. | |
(7) The Department, in consultation with the Policy |
| Advisory Council, may adjust the number of PIP Plan participants annually, if necessary, to match the availability of funds from LIHEAP. | |
(8) The Department shall fully implement the PIPP at |
| the earliest possible date it is able to effectively administer the PIPP. Within 90 days of the effective date of this amendatory Act of the 96th General Assembly, the Department shall, in consultation with utility companies, participating alternative suppliers, LAAs and the Illinois Commerce Commission (Commission), issue a detailed implementation plan which shall include detailed testing protocols and analysis of the capacity for implementation by the LAAs and utilities. Such consultation process also shall address how to implement the PIPP in the most cost‑effective and timely manner, and shall identify opportunities for relying on the expertise of utilities, LAAs and the Commission. Following the implementation of the testing protocols, the Department shall issue a written report on the feasibility of full or gradual implementation. The PIPP shall be fully implemented by September 1, 2011, but may be phased in prior to that date. | |
(9) As part of the screening process established |
| under item (1) of this subsection (c), the Department and LAAs shall assess whether any energy efficiency or demand response measures are available to the plan participant at no cost, and if so, the participant shall enroll in any such program for which he or she is eligible. The LAAs shall assist the participant in the applicable enrollment or application process. | |
(10) Each alternative retail electric and gas |
| supplier serving residential customers shall elect whether to participate in the PIPP or ARP described in this Section. Any such supplier electing to participate in the PIPP shall provide to the Department such information as the Department may require, including, without limitation, information sufficient for the Department to determine the proportionate allocation of credits between the alternative supplier and the utility. If a utility in whose service territory an alternative supplier serves customers contributes money to the ARP fund which is not recovered from ratepayers, then an alternative supplier which participates in ARP in that utility's service territory shall also contribute to the ARP fund in an amount that is commensurate with the number of alternative supplier customers who elect to participate in the program. | |
(d) The Department, in consultation with the Policy Advisory Council, shall develop and implement a program to educate customers about the PIP Plan and about their rights and responsibilities under the percentage of income component. The Department, in consultation with the Policy Advisory Council, shall establish a process that LAAs shall use to contact customers in jeopardy of losing eligibility due to late payments. The Department shall ensure that LAAs are adequately funded to perform all necessary educational tasks.
(e) The PIPP shall be administered in a manner which ensures that credits to plan participants will not be counted as income or as a resource in other means‑tested assistance programs for low‑income households or otherwise result in the loss of federal or State assistance dollars for low‑income households.
(f) In order to ensure that implementation costs are minimized, the Department and utilities shall work together to identify cost‑effective ways to transfer information electronically and to employ available protocols that will minimize their respective administrative costs as follows:
(1) The Commission may require utilities to provide |
| such information on customer usage and billing and payment information as required by the Department to implement the PIP Plan and to provide written notices and communications to plan participants. | |
(2) Each utility and participating alternative |
| supplier shall file annual reports with the Department and the Commission that cumulatively summarize and update program information as required by the Commission's rules. The reports shall track implementation costs and contain such information as is necessary to evaluate the success of the PIPP. | |
(3) The Department and the Commission shall have the |
| authority to promulgate rules and regulations necessary to execute and administer the provisions of this Section. | |
(g) Each utility shall be entitled to recover reasonable |
| administrative and operational costs incurred to comply with this Section from the Supplemental Low Income Energy Assistance Fund. The utility may net such costs against monies it would otherwise remit to the Funds, and each utility shall include in the annual report required under subsection (f) of this Section an accounting for the funds collected. | |
(Source: P.A. 96‑33, eff. 7‑10‑09.) |