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Update: Illinois Staff Posts Illustrative Dollars Of New Tax To Be Allocated To Retail Suppliers

March 23, 2018

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Illinois Commerce Commission Staff have posted a hypothetical amount of the total dollars that would be assigned to alternative retail electric and natural gas suppliers under a proposed new tax on such suppliers to fund ICC operations

As first reported by EnergyChoiceMatters.com, a Staff straw proposal would allocate the assessment as follows:

• to alternative retail electric suppliers (ARES) based on annual kilowatt-hours as reported pursuant to 83 Illinois Administrative Code 451. 770; and

• to alternative gas suppliers (AGS) based on annual dekatherms as reported pursuant to 83 Illinois Administrative Code 551.770.

Furthermore, Staff's straw proposal would exempt from the assessments the following:

• ARESs reporting less than 1,000,000 kilowatt-hours; and

• AGSs reporting less than 1,000,000 dekatherms.

As part of the total assessments (which also apply to other jurisdictional entities), retail suppliers under the straw proposal would be allocated the following aggregate shares:

• 0.68% to ARESs (affecting 15 entities)

• 0.32% to AGSs (affecting 11 entities)

ICC Staff has now also provided a hypothetical total amount of the dollars of the assessment that would be allowed to retail suppliers

Staff provided an example for FY 2019 based on a hypothetical deficit of $12,000,000 between deposits to the Public Utility Fund and expected agency expenditures for the current fiscal year. Staff noted that the $12,000,000 figure is based upon Section 40, Article 117 of Illinois Public Act 99-0524, in which the General Assembly appropriated $12,000,000 to the Public Utility Fund (PUF) from the Renewable Energy Resources Fund (RERF). Staff further noted that this sum may not accurately represent the shortfall between the PUF and agency costs in any other year, since that shortfall, assuming that there is one, will be based on the difference between the Commission’s legislative appropriation in future years and the Commission’s future year operating costs, neither of which can be known with precision.

Specifically, if the deficit to be assessed to all entities subject to the new assessment were $112 million, then, using the allocation percentages above, ARESs subject to the assessment would in aggregate be responsible for $81,600. AGSs subject to the assessment would in aggregate be responsible for $38,400

An individual ARES subject to the assessment would then be allocated a share of the total ARES share by first dividing its annual kWh by aggregate annual kWh of affected ARESs, which for the example year would be 78,020,264,418 kWh, and then multiplying this resulting percent by the aggregate allocation to all ARESs of $81,600.

Similarly, an individual AGS subject to the assessment would then be allocated a share of the total AGS share by first dividing its annual dekatherms by the aggregate annual dekatherms of affected AGSs, which for the example year would be 47,778,972 dekatherms, and then multiplying this resulting percent by the aggregate allocation to all AGSs of $38,400.

Docket No. 18-0375

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