Illinois House Bill HB3576

Illinois 2023-2024 Regular Session

• Introduced: 2/17/23
• Refer: 2/17/23

Caption

UTIL-GAS MAIN EXTENSION COST

Impact

The bill compels the Illinois Commerce Commission to initiate a rulemaking process within 60 days of the bill's effective date. This process will focus on reviewing and modifying each gas public utility tariff that previously allowed for gas main and service extensions without charge to new customers beyond a specified limit. The amendment seeks to align existing tariffs with the new policy, ensuring that new customers contribute to the incremental costs associated with necessary infrastructure improvements.

Summary

House Bill 3576 introduces amendments to the Public Utilities Act, specifically concerning the policies associated with gas main and gas service extensions. The bill stipulates that the full costs related to the development and extension of gas mains to a customer's property should be borne by those customers who generate those costs. This aligns the financial responsibilities more directly with the new customers benefiting from the infrastructure, thereby aiming to eliminate the burden on existing customers who do not contribute to these extension costs.

Contention

Notably, the bill reflects an ongoing debate regarding the fair distribution of costs associated with utility infrastructure. Supporters assert that the change will promote equity among customers, as those who initiate the need for additional services will directly bear the costs. However, there may be opposition from new customers concerned about significant upfront expenses, potentially disincentivizing development and growth in certain areas. Furthermore, existing customers might view this as a way to transfer costs that should be borne more broadly across the user base.