HB1345 103RD GENERAL ASSEMBLY

LRB103 00105 AMQ 45106 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1345

Introduced 1/31/2023, by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

220 ILCS 5/9-211.5 new

Amends the Public Utilities Act. Provides that a public utility that provides both water and wastewater services may request, in a general rate case proceeding, that the Illinois Commerce Commission allocate a portion of the public utility's wastewater service revenue requirement for recovery through water service base rates, allocate a portion of the public utility's water service revenue requirement through wastewater base rates, or combine that public utility's water service and wastewater service revenue requirements. Provides that as part of a proceeding, the public utility shall present evidence to establish, and the Commission shall consider, specified factors. Provides that if the Commission finds that an allocation or combination is in the public interest, the Commission shall enter an order approving such allocation or combination of the public utility's water and wastewater service revenue requirements. Provides that the water service revenue requirement or wastewater service revenue requirement may not be increased by more than 2.5% through an allocation from the water service revenue requirement or wastewater service revenue requirement. Provides for notice to customers. Allows the Commission to adopt rules to implement the amendatory provisions. Repeals the amendatory provisions on December 31, 2026. Effective immediately.

A BILL FOR

AN ACT concerning utilities.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Public Utilities Act is amended by adding Section 9-211.5 as follows:

(220 ILCS 5/9-211.5 new)

Sec. 9-211.5. Water and wastewater cost allocation and combination.

(a) It is the public policy of the State of Illinois to ensure that prudent and timely investment in water and wastewater infrastructure is made by public utilities that provide water and wastewater services in order for customers of these services to receive safe, reliable, and affordable water and wastewater services.

(b) A public utility that provides both water and wastewater services may request, in a general rate case proceeding, that the Commission allocate a portion of the public utility's wastewater service revenue requirement for recovery through water service base rates, allocate a portion of the public utility's water service revenue requirement through wastewater base rates, or combine that public utility's water service and wastewater service revenue requirements.

(c) As part of any proceeding commenced pursuant to subsection (b), the public utility shall present evidence to establish, and the Commission shall consider, each of the following:

(1) the current rates of the existing customers of the water and wastewater public utility;

(2) the number of customers of the water and wastewater public utility;

(3) the difference between the number of water and wastewater customers of the water and wastewater public utility;

(4) the capital investment made by the water and wastewater public utility and the potential impact on water and wastewater rates;

(5) future capital investment needs for both water and wastewater systems and the service territories of the water and sewer public utility that are in need;

(6) other public or policy objectives of the State or Commission; and

(7) any other factor that the Commission deems necessary to determine whether the allocation or combination is in the public interest.

(d) If, after considering each of the factors set forth in subsection (c), the Commission finds that an allocation or combination is in the public interest, the Commission shall enter an order approving such allocation or combination of the public utility's water and wastewater service revenue requirements in accordance with this Section.

(e) If the Commission approves the rate recovery allocation requested as set forth in subsection (b), the water service revenue requirement or wastewater service revenue requirement may not be increased by more than 2.5% through an allocation from the water service revenue requirement or wastewater service revenue requirement.

(f) A public utility that provides both water and wastewater service and that makes an allocation request pursuant to subsection (b) shall provide, in addition to and as part of the required notice to its customers pursuant to Section 9-201 of this Act, a description of the allocation request, a statement of the estimated bill impact as a result of any allocation approved pursuant to this Section, and any other information that the Commission deems necessary.

(g) Nothing in this Section shall be deemed to be in conflict with nor construed to be in violation of any provision of this Act, including, but not limited to, any provision of this Article or Article VIII of this Act.

(h) The Commission may adopt rules to implement this Section.

(i) This Section is repealed on December 31, 2026.

Section 99. Effective date. This Act takes effect upon becoming law.