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Ameren Illinois Files Tariff for Purchase of Uncollectibles
April 4, 2011
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Ameren Illinois has filed a tariff with the Illinois Commerce Commission to institute Purchase of Uncollectibles pursuant to Section 220 ILCS 5/16-118(e) of the Illinois Public Utilities Act.
Under Purchase of Uncollectibles, Ameren would pay suppliers using either supplier consolidated billing or dual billing up to two months worth of uncollectible charges for power and energy service upon a customer being dropped to bundled supply.
The discount rate would equal a percentage reduction of 98.2% of the face value of the receivable purchased. Total consideration paid shall equal 0.018 * (face value of uncollectible account receivable). For example, if a receivable is valued at $100, the amount paid shall be $1.80 for said receivable.
Ameren said that the discount rate was established pursuant to the company's historical bad debt collection experience.
The tariff would provide that Ameren is not obligated to purchase receivables exceeding $100,000 in total consideration paid to all program participants in any given calendar year. Additionally, Ameren would not be obligated to purchase receivables after having purchased 500 total receivables in any given calendar year. To the extent either of the stated limitations becomes applicable in a calendar year, compensation to participating suppliers shall be apportioned on a ratable basis.
The uncollectibles must be at least 90 days old to be eligible to be purchased, as suppliers are required to engage in "reasonable collection efforts" first. The receivables eligible for purchase must be associated with an active account that is currently taking power and energy supply service from Ameren. The supplier's final bill due date for the account must have been at least 90 calendar days in the past.
The Purchase of Uncollectibles amount for a given account may only include the two most recent bill periods, and the final supplier bill must be one of the periods.
Because of the transaction limitations included in the filed tariff, Ameren said that significant costs are not anticipated. To the extent the transaction limitations are later amended or eliminated, Ameren will revise its tariff in order to implement cost recovery provisions pursuant to 220 ILCS 5/16-118 after consultation with the Office of Retail Market Development.
The tariff is to be considered by the ICC at its April 15 meeting, where it may be suspended for further investigation or accepted.
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