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| Public Act 098-0473 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Public Utilities Act is amended by changing | ||||
Section 5-104 as follows:
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(220 ILCS 5/5-104) (from Ch. 111 2/3, par. 5-104)
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Sec. 5-104. Depreciation accounts.
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(a) The Commission shall have power, after hearing, to | ||||
require any or
all public utilities, except electric public | ||||
utilities, to keep such
accounts as will adequately reflect
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depreciation, obsolescence and the progress of the arts. The | ||||
Commission
may, from time to time, ascertain and determine and | ||||
by order fix the proper
and adequate rate of depreciation of | ||||
the several classes of property for
each public utility; and | ||||
each public utility shall
conform its depreciation
accounts to | ||||
the rates so ascertained, determined and fixed.
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(b) The Commission shall have the power, after hearing, to | ||||
require any or
all electric public utilities to keep such | ||||
accounts as will adequately reflect
depreciation, | ||||
obsolescence, and the progress of the arts. The Commission may,
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from time to time, ascertain and determine and by order fix the | ||||
proper and
adequate rate of depreciation of the several classes | ||||
of property for each
electric public utility; and each electric | ||||
public utility shall thereafter,
absent further order of the | ||
Commission, conform its depreciation accounts to
the rates so | ||
ascertained, determined and fixed until at least the end of the
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first full calendar year following the date of such | ||
determination.
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(c) An electric public utility may from time to time alter | ||
the
annual rates of depreciation, which for purposes of this
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subsection (c) and subsection (d) shall include amortization,
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that it applies to its several classes of assets so long as
the | ||
rates are consistent with generally accepted accounting
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principles. The electric public utility shall file a statement | ||
with
the Commission which shall set forth the new rates of
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depreciation and which shall contain a certification by an
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independent certified public accountant that the new rates of
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depreciation are consistent with generally accepted accounting
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principles. Upon the filing of such statement, the new rates
of | ||
depreciation shall be deemed to be approved by the
Commission | ||
as the rates of depreciation to be applied
thereafter by the | ||
public utility as though an order had been
entered pursuant to | ||
subsection (b).
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(d) In any proceeding conducted pursuant to Section 9-201 | ||
or 9-202 to set
an electric
public utility's rates for service,
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the Commission may determine not to use, in determining the
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depreciation expense component of the public utility's rates
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for service, the rates of depreciation established pursuant to
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subsection (c), if the Commission in that proceeding finds
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based on the record that different rates of depreciation are
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required to adequately reflect depreciation, obsolescence and
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the progress of the arts, and fixes by order and uses for
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purposes of that proceeding new rates of depreciation to be
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thereafter employed by the electric public utility until the | ||
end of the
first full calendar year following the date of the
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determination and thereafter until altered in accordance with
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subsection (b) or (c) of this Section.
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(e) A gas public utility serving more than 1,600,000 | ||
customers as of January 1, 2013 may from time to time alter the | ||
annual rates of depreciation, which for purposes of this | ||
subsection (e) shall include amortization, that the gas public | ||
utility applies to its several classes of assets so long as the | ||
rates are consistent with generally accepted accounting | ||
principles. The gas public utility shall file testimony with | ||
the Commission setting forth the new rates of depreciation that | ||
shall include: (i) a summary of the causes for the change in | ||
depreciation rates; (ii) a certification by an independent | ||
certified public accountant that the new rates of depreciation | ||
are consistent with generally accepted accounting principles; | ||
(iii) the depreciation study; and (iv) the expected impact on | ||
depreciation expense from the new depreciation rates. The gas | ||
public utility shall also simultaneously submit to the | ||
Commission all work papers that support the filed depreciation | ||
study. No later than 120 days after the filing by the gas | ||
public utility under this subsection (e), the Commission shall | ||
ascertain and determine and, by order, fix the proper and | ||
adequate rate of depreciation of the several classes of | ||
property for the gas public utility. The gas public utility | ||
shall conform its depreciation accounts to the rates so | ||
ascertained, determined, and fixed. Rates of depreciation | ||
established by the Commission pursuant to this subsection (e) | ||
shall become effective upon the date of the gas public | ||
utility's filing. | ||
(Source: P.A. 90-561, eff. 12-16-97.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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