Illinois Approves Purchase of Uncollectibles at Ameren

The Illinois Commerce Commission has approved tariffs at Ameren Illinois to implement Purchase of Uncollectibles (11-0358).

The Purchase of Uncollectibles program allows a retail supplier to receive payment for up to two billing cycles worth of uncollectible receivables for power and energy service provided to a customer upon returning that customer to default service, provided that the supplier has made reasonable collection efforts.

Under the tariffs, retail electric suppliers may elect Purchase of Uncollectibles for customers in classes DS-1, DS-2, DS-3 and DS-5 with demands less than 400 kW in at least 11 of the 12 monthly billing periods during the prior calendar year. Suppliers may only elect Purchase of Uncollectibles for amounts billed under supplier-consolidated billing (single billing option) or dual billing.

A final discount rate was not immediately available, and will be included in compliance tariffs. However, expectations are that it will not significantly differ from the 1.8% rate in the originally filed tariff (4/4).

Purchased uncollectibles are only discounted to reflect Ameren's historical bad debt, and there is no administrative cost charged to suppliers. The uncollectibles discount will be annually updated June 1.

Ameren is not obligated to purchase uncollectible receivables exceeding $100,000 in total consideration paid to all program participants in any given calendar year. Additionally, Ameren is not obligated to purchase uncollectible receivables after having purchased 500 total uncollectible receivables in any given calendar year. To the extent either of the above stated limitations becomes applicable in a calendar year, compensation to participating suppliers shall be apportioned on a ratable basis.

Payments to suppliers will be processed on a quarterly basis.