SB0882 95TH GENERAL ASSEMBLY

LRB095 05636 MJR 25726 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0882

Introduced 2/8/2007, by Sen. James F. Clayborne, Jr. - Emil Jones, Jr.

SYNOPSIS AS INTRODUCED:

220 ILCS 5/9-220.2

Amends the Public Utilities Act. Makes a technical change in a Section concerning authorization of water and sewer surcharges by the Illinois Commerce Commission.

A BILL FOR

AN ACT concerning regulation.

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 changing Section 9-220.2 as follows:

(220 ILCS 5/9-220.2)

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

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

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

(c) On a periodic basis, the Commission shall initiate hearings to reconcile amounts collected under each surcharge authorized pursuant to this Section with the actual prudently incurred costs recoverable for each annual period during which the surcharge was in effect.

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