SB3696 Summary

• Allows natural gas utilities serving over 150,000 customers to voluntarily elect a formula rate approved by the Illinois Commerce Commission to recover delivery service costs, with rates updated annually based on actual utility costs.

• Establishes annual reconciliation process where utilities file updated cost inputs by May 1 each year, with new rates taking effect January 1, and Commission has 45 days to hold a hearing on cost prudence and reasonableness.

• Authorizes gas utilities to apply for certificates to extend distribution systems into designated hardship areas (low-income census tracts with at least 25% poverty rate currently lacking gas service), subject to cost limitations of 250% of standard extension tariffs.

• Sets specific formula rate components including cost of equity calculation using 30-year Treasury bond yields plus 771.20 basis points, capital structure, pension costs, and recovery protocols for severance costs exceeding $3,700,000.

• Requires Commission decision on certificate applications within 120 days and formula rate approval within 270 days, establishes 240-day deadline for annual cost review orders, and makes cost determinations final unless reopened through formal appeal or rehearing procedures.