| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| 1 | AN ACT concerning public utilities.
| ||||||||||||||||||||||||
| 2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||
| 3 | represented in the General Assembly:
| ||||||||||||||||||||||||
| 4 | Section 5. The Public Utilities Act is amended by changing | ||||||||||||||||||||||||
| 5 | Section 5-104 as follows:
| ||||||||||||||||||||||||
| 6 | (220 ILCS 5/5-104) (from Ch. 111 2/3, par. 5-104)
| ||||||||||||||||||||||||
| 7 | Sec. 5-104. Depreciation accounts.
| ||||||||||||||||||||||||
| 8 | (a) The Commission shall have power, after hearing, to | ||||||||||||||||||||||||
| 9 | require any or
all public utilities, except electric public | ||||||||||||||||||||||||
| 10 | utilities and gas public utilities, to keep such
accounts as | ||||||||||||||||||||||||
| 11 | will adequately reflect
depreciation, obsolescence and the | ||||||||||||||||||||||||
| 12 | progress of the arts. The Commission
may, from time to time, | ||||||||||||||||||||||||
| 13 | ascertain and determine and by order fix the proper
and | ||||||||||||||||||||||||
| 14 | adequate rate of depreciation of the several classes of | ||||||||||||||||||||||||
| 15 | property for
each public utility; and each public utility shall
| ||||||||||||||||||||||||
| 16 | conform its depreciation
accounts to the rates so ascertained, | ||||||||||||||||||||||||
| 17 | determined and fixed.
| ||||||||||||||||||||||||
| 18 | (b) The Commission shall have the power, after hearing, to | ||||||||||||||||||||||||
| 19 | require any or
all electric public utilities and gas public | ||||||||||||||||||||||||
| 20 | utilities to keep such accounts as will adequately reflect
| ||||||||||||||||||||||||
| 21 | depreciation, obsolescence, and the progress of the arts. The | ||||||||||||||||||||||||
| 22 | Commission may,
from time to time, ascertain and determine and | ||||||||||||||||||||||||
| 23 | by order fix the proper and
adequate rate of depreciation of | ||||||||||||||||||||||||
| |||||||
| |||||||
| 1 | the several classes of property for each
electric public | ||||||
| 2 | utility and gas public utility; and each electric public | ||||||
| 3 | utility and gas public utility shall thereafter,
absent further | ||||||
| 4 | order of the Commission, conform its depreciation accounts to
| ||||||
| 5 | the rates so ascertained, determined and fixed until at least | ||||||
| 6 | the end of the
first full calendar year following the date of | ||||||
| 7 | such determination.
| ||||||
| 8 | (c) An electric public utility and a gas public utility may | ||||||
| 9 | from time to time alter the
annual rates of depreciation, which | ||||||
| 10 | for purposes of this
subsection (c) and subsection (d) shall | ||||||
| 11 | include amortization,
that it applies to its several classes of | ||||||
| 12 | assets so long as
the rates are consistent with generally | ||||||
| 13 | accepted accounting
principles. An The electric public utility | ||||||
| 14 | and a gas public utility shall file a statement with
the | ||||||
| 15 | Commission which shall set forth the new rates of
depreciation | ||||||
| 16 | and which shall contain a certification by an
independent | ||||||
| 17 | certified public accountant that the new rates of
depreciation | ||||||
| 18 | are consistent with generally accepted accounting
principles. | ||||||
| 19 | Upon the filing of such statement, the new rates
of | ||||||
| 20 | depreciation shall be deemed to be approved by the
Commission | ||||||
| 21 | as the rates of depreciation to be applied
thereafter by the | ||||||
| 22 | public utility as though an order had been
entered pursuant to | ||||||
| 23 | subsection (b).
| ||||||
| 24 | (d) In any proceeding conducted pursuant to Section 9-201 | ||||||
| 25 | or 9-202 to set
an electric
public utility's or gas public | ||||||
| 26 | utility's rates for service,
the Commission may determine not | ||||||
| |||||||
| |||||||
| 1 | to use, in determining the
depreciation expense component of | ||||||
| 2 | the public utility's rates
for service, the rates of | ||||||
| 3 | depreciation established pursuant to
subsection (c), if the | ||||||
| 4 | Commission in that proceeding finds
based on the record that | ||||||
| 5 | different rates of depreciation are
required to adequately | ||||||
| 6 | reflect depreciation, obsolescence and
the progress of the | ||||||
| 7 | arts, and fixes by order and uses for
purposes of that | ||||||
| 8 | proceeding new rates of depreciation to be
thereafter employed | ||||||
| 9 | by the electric public utility or gas public utility until the | ||||||
| 10 | end of the
first full calendar year following the date of the
| ||||||
| 11 | determination and thereafter until altered in accordance with
| ||||||
| 12 | subsection (b) or (c) of this Section.
| ||||||
| 13 | (e) For purposes of this Section, "gas public utility" | ||||||
| 14 | means a natural gas utility serving at least 1,600,000 | ||||||
| 15 | customers as of January 1, 2013. | ||||||
| 16 | The changes made to this Section by this amendatory Act of | ||||||
| 17 | the 98th General Assembly apply with respect to new rates of | ||||||
| 18 | depreciation that are filed with the Commission pursuant to | ||||||
| 19 | subsection (c) on or after January 1, 2013 on the date the | ||||||
| 20 | statement of new rates of depreciation are certified by an | ||||||
| 21 | independent certified public accountant. | ||||||
| 22 | (Source: P.A. 90-561, eff. 12-16-97.)
| ||||||
| 23 | Section 99. Effective date. This Act takes effect upon | ||||||
| 24 | becoming law.
| ||||||