97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1288
 
Introduced 02/09/11, by Rep. Michael W. Tryon
 
SYNOPSIS AS INTRODUCED:
 

 
  
220 ILCS 5/9-220.2

     Amends the Public Utilities Act. Provides that the Illinois Commerce Commission shall authorize a water or sewer utility to file a
surcharge that adjusts rates and charges to provide for recovery of the costs of any increase in the water or sewer utility's gross receipts tax rate set forth in a certain provision of the Act, federal income tax rate, or State income tax rate. Provides that the Commission shall review and, by order, approve or approve as modified the surcharge within 180 days after the date on which it is filed.
  


LRB097 09165 ASK 49300 b

FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
HB1288LRB097 09165 ASK 49300 b


  
1    AN ACT concerning public utilities.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Public Utilities Act is amended  by adding 
5Section 9-220.2 as follows:
 



6    (220 ILCS 5/9-220.2)



7    Sec. 9-220.2. Water and sewer surcharges authorized. 

8    (a) The Commission may authorize a water or sewer utility 
9to file a
surcharge which adjusts rates and charges to provide 
10for recovery of (i) the
cost of purchased water, (ii) the cost 
11of purchased sewage treatment service,
(iii) other costs which 
12fluctuate for reasons beyond the utility's control or
are 
13difficult to predict, or (iv) costs associated with an 
14investment in
qualifying infrastructure plant, independent of 
15any other matters related to
the utility's revenue requirement.  
16A surcharge approved under this Section can
operate on an 
17historical or a prospective basis.

18    (a-5) The Commission shall authorize a water or sewer 
19utility to file a
surcharge that adjusts rates and charges to 
20provide for recovery of the costs of any increase in the water 
21or sewer utility's gross receipts tax rate set forth in Section 
222-202 of this Act, federal income tax rate, or State income tax 
23rate. 
 
 
HB1288- 2 -LRB097 09165 ASK 49300 b

1    (b) For purposes of this Section, "costs associated with an 
2investment in
qualifying infrastructure plant" include a 
3return on the investment in and
depreciation expense related to 
4plant items or facilities (including, but not
limited to, 
5replacement mains, meters, services, and hydrants) which (i) 
6are
not reflected in the rate base used to establish the 
7utility's base rates and
(ii) are non-revenue producing.  For 
8purposes
of this Section, a "non-revenue producing facility" is 
9one that is not
constructed or installed for the purpose of 
10serving a new customer.

11    (c) On a periodic basis, the Commission shall initiate 
12hearings to reconcile
amounts collected under each surcharge 
13authorized pursuant to this Section with
the actual prudently 
14incurred costs recoverable for each annual period during
which 
15the surcharge was in effect. In the case of a surcharge for the 
16recovery of costs under subsection (a-5) of this Section, the 
17Commission shall review and, by order, approve or approve as 
18modified the surcharge within 180 days after the date on which 
19the utility filed under this Section. 

20(Source: P.A. 91-638, eff. 1-1-00.)