Sen. Linda Holmes

Filed: 2/25/2014

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2977

2    AMENDMENT NO. ______. Amend Senate Bill 2977 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The River Edge Redevelopment Zone Act is
5amended by changing Section 10-10.1 as follows:
 
6    (65 ILCS 115/10-10.1)
7    (Section scheduled to be repealed on July 29, 2017)
8    Sec. 10-10.1. Utility facilities.
9    (a) It is in the public interest that costs for
10redevelopment in a River Edge Redevelopment Zone impacting a
11public utility, as defined by Section 3-105 of the Public
12Utilities Act, or a public utility's property, as described in
13subsection (b) of this Section, should not be allocated solely
14to the entity engaging in economic redevelopment because this
15economic redevelopment benefits the utility service territory
16as a whole and not just the particular area where the

 

 

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1redevelopment occurs.
2    (b) A public utility that has facilities or land affected
3by the clean-up, remediation, and redevelopment of a River Edge
4Redevelopment Zone and that incurs costs related to the
5remediation or the removing or relocating of utility facilities
6in the River Edge Redevelopment Zone may recover these costs
7pursuant to subsections (c) and (d) of this Section.
8    (c) The reasonable and prudent costs incurred by a public
9utility for facility removal or relocation described in
10subsection (b) of this Section shall be shared equally among
11the public utility, the municipality in which the facility is
12located, and any landowner that is located within 100 feet of
13the utility facility and that directly benefits from the
14removal or relocation of the utility facility or the
15redevelopment of the public utility's land. In no event shall
16the costs incurred by each municipality or landowner for a
17given project exceed an equal percentage of the total direct,
18indirect, and overhead project costs, or $1,000,000 $3,667,000
19each, whichever amount is less. The reasonable and prudent
20costs incurred by the public utility for facility removal or
21relocation that are not the responsibility of the municipality
22or landowner under this subsection (c) shall be recovered by
23the public utility from all retail customers located in the
24municipality or municipalities in which the removal or
25relocation occurs through an appropriate tariff mechanism, and
26the public utility may record and defer such costs as a

 

 

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1regulatory asset until they are so recovered. In no event shall
2the costs recovered by the public utility from all retail
3customers located in the municipality or municipalities in
4which the removal or relocation occurs shall exceed $5,000,000.
5The public utility shall record and defer the remainder of
6these costs as a regulatory asset to be included in the public
7utility's total rate base and amortized in the public utility's
8next filing for a general increase in rates over a reasonable
9period that is shorter than the life of the affected facility
10or facilities. Such regulatory assets shall be collected from
11all residential and commercial ratepayers system-wide.
12    (d) The Illinois Commerce Commission shall allow a public
13utility described in subsection (b) to fully recover from all
14retail customers in its service territory all reasonable and
15prudent costs that it incurs in conducting environmental
16remediation in the River Edge Redevelopment Zone related to the
17removal or relocation of utility facilities in the River Edge
18Redevelopment Zone, including, but not limited to,
19transmission and distribution lines, transformers, and poles.
20These environmental remediation costs also include, but are not
21limited to, direct, indirect, and overhead costs calculated by
22the public utility for taxes or other charges, cost adjustments
23made after the project has begun, and any other environmental
24remediation-related charges. The public utility shall record
25and defer such costs as a regulatory asset to be included in
26the public utility's total rate base and amortized in the

 

 

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1public utility's next filing for a general increase in rates
2over a reasonable period that is shorter than the life of the
3affected facility or facilities. Such regulatory assets shall
4be collected from all residential and commercial ratepayers
5system-wide, and not only from ratepayers in the municipality's
6corporate limits. In the event the River Edge Redevelopment
7Zone is decertified, the public utility shall be permitted to
8recover all reasonable and prudent costs incurred as of the
9date of the decertification, as well as all reasonable and
10prudent costs incurred subsequent to decertification that are
11necessary to complete any projects commenced while the River
12Edge Redevelopment Zone was certified, consistent with this
13Section.
14    (e) This Section is repealed on July 1, 2020 7 years after
15the effective date of this amendatory Act of the 96th General
16Assembly.
17(Source: P.A. 96-1404, eff. 7-29-10.)".