IL SB3497

Changes the repeal date for natural gas surcharge provisions in the Public Utilities Act from December 31, 2023 to January 1, 2021.

Allows natural gas utilities serving more than 700,000 customers to file tariffs for surcharges to recover costs of qualifying infrastructure plant investments independently of other revenue requirements.

Defines qualifying infrastructure investments to include replacement of aging gas pipes, meter relocation, system pressure upgrades, advanced metering, high-pressure transmission pipeline replacement, and regulator station upgrades.

Limits cumulative surcharge increases to an annual average of 4% of delivery base rate revenues, with a maximum of 5.5% in any single year, and requires surcharge reduction to zero when costs are transferred to base rates.

Requires utilities to file annual reconciliation petitions demonstrating prudence of investments and providing job creation data, with detailed review of plant ranked in highest risk categories under Distribution Integrity Management Plans.