HB5555 94TH GENERAL ASSEMBLY

LRB094 19388 MKM 55053 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5555

Introduced 01/27/06, by Rep. Renee Kosel

SYNOPSIS AS INTRODUCED:

220 ILCS 5/4-605 new
220 ILCS 5/8-302.5 new
220 ILCS 5/8-302.7 new
220 ILCS 5/8-302.9 new
220 ILCS 5/8-303.5 new
220 ILCS 5/9-201	from Ch. 111 2/3, par. 9-201
220 ILCS 5/9-220.5 new
220 ILCS 5/9-220.7 new
220 ILCS 5/9-223	from Ch. 111 2/3, par. 9-223

Amends the Public Utilities Act. Sets forth certain rights for water and sewer public utility customers. Requires a water or sewer public utility to file a tariff with the Illinois Commerce Commission if requested to do so by a municipality, for metered water service used for building construction purposes. Requires the Commission to adopt rules to establish standards for subcontractors of for-profit water and sewer utilities. Requires the Commission to establish a formula for true-up charges that takes into account certain conservation factors. Prohibits a water public utility from charging a customer during the time the customer's meter is malfunctioning and requires the utility to test a customer's meter under certain circumstances. Requires the Commission to hold public forums before any hearing on a rate increase with respect to a water or sewer public utility. Requires each water and sewer public utility to establish a unit rate, subject to review by the Commission, for customers with low usage rates. Requires a water or sewer utility to offer separate rates for water and sewer service to any commercial or residential customer who uses separate meters to measure each of those services. Requires the Commission to conduct at least 3 public forums throughout the State to evaluate the purpose and use of fire protection charges imposed by public utilities and to report its findings and recommendations to the General Assembly no later than the last day of the the veto session in 2006. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 Sections 9-201 and 9-223 and by adding Sections 4-605, 8-302.5, 8-302.7, 8-302.9, 8-303.5, 9-220.5, and 9-220.7 as follows:

(220 ILCS 5/4-605 new)

Sec. 4-605. Water and sewer public utilities; customer rights.

(a) Within 90 days after the effective date of this amendatory Act of the 94th General Assembly, the Commission shall hold public hearings concerning and establish a water bill of rights for customers of public utilities providing water or sewer service. The water bill of rights must detail what rights a customer has in each of the following situations:

(1) The customer's water meter is replaced.

(2) The customer's bill increases by more than 20% within one billing period.

(3) The customer's water service is terminated.

(4) The customer wishes to appeal a termination of service notice.

(5) The customer is unable to make payment on a billing statement.

(6) A surcharge is filed that will increase the amount billed to the customer.

(7) The customer is billed for services provided prior to the date covered by the billing statement.

(8) The customer is due to receive a credit. The water bill of rights must also include information concerning the service obligations of the utility and informing the customer about unfair and unethical collection practices and remedies that the customer may pursue for a violation of the customer's rights.

(b) No water or sewer public utility may terminate the service of any customer without first providing at least 7 days' advance written notice to the customer. The written notice must include a copy of the water bill of rights created under this Section and must notify the customer of the customer's right to appeal the termination. The Commission shall establish, by rule, a minimum payment schedule that must be followed by the customer and the public utility of a customer is disputing an amount billed to the customer or appealing a termination of service and sanctions that may be imposed against any public utility that terminates service to any customer who adheres to the minimum payment schedule established by the Commission. No water or sewer public utility shall terminate service to any customer appealing a termination of service or disputing a billed amount so long as the customer adheres to the minimum payment schedule required by the Commission.

(c) Each water or sewer public utility must provide written notice to each affected customer of any true-up rate adjustment and when it will go into effect.

(d) Each water or sewer public utility must disclose on each billing statement any amount billed that is for service provided prior to the date covered by the billing statement. The disclosure must include the dates for which the prior service is being billed. Each billing statement that includes an amount billed for service provided prior to the date covered by the billing statement must disclose the dates for which that amount is billed and must include a copy of the water bill of rights and a statement of current Commission rules concerning back-billing. The Commission must verify any true-up in the number of gallons that have been back-billed by a water or sewer public utility and the utility must credit the customer with those gallons, calculated in dollars, with interest at the prime rate.

(e) The Commission shall establish by rule an informal complaint process for processing complaints about water and sewer public utilities and shall respond to each complaint by providing the consumer with a copy of the utilities response to the complaint and a copy of the Commission's review of the complaint and its findings. The Commission must provide the consumer with all available options for recourse.

(f) Any refund on the billing statement of a customer of a water or sewer public utility must be itemized and state the purpose of the refund.

(220 ILCS 5/8-302.5 new)

Sec. 8-302.5. Water service for building construction purposes. At the request of any municipality within the service area of a public utility that provides water service to customers within the municipality, a public utility must file with the Commission a tariff that (i) applies only within that municipality; (ii) requires all water service used for building construction purposes to be measured by meter; (iii) is subject to approved rates and charges for metered water service; and (iv) prohibits the unauthorized use of water taken from hydrants or service lines installed at construction sites.

(220 ILCS 5/8-302.7 new)

Sec. 8-302.7. Water and sewer or public utilities; subcontractors. The Commission shall adopt rules to direct for-profit water and sewer public utilities to conform to standards that protect consumers from irresponsible subcontractors contracted by a for-profit water or sewer public utility. The rules must provide for notice to the consumer of the proper kind of identification that the subcontractor must present to the customer, prohibit the subcontractor from soliciting or receiving payment of any kind for any service provided by the water or sewer public utility, and establish sanctions for violations.

(220 ILCS 5/8-302.9 new)

Sec. 8-302.9. Water and sewer public utilities; true-up charges. The Commission must establish by rule a formula for determining (i) the amount of unmetered water that a unit of local government can expect to pay for in order to protect the public and (ii) the percentage of unmetered water that reflects environmental waste that is the result of a water or sewer public utility's management inefficiencies and neglect. The formula and the utility's compliance with existing conservation agreements must be considered as part of all rate cases and annual reconciliations associated with that utility.

(220 ILCS 5/8-303.5 new)

Sec. 8-303.5. Meter malfunction; testing.

(a) If a public utility furnishing water to any customer determines that a meter owned by the public utility has malfunctioned, then the public utility is prohibited from charging the customer during the malfunction unless the customer intentionally caused the malfunction.

(b) If requested by the Commission or by the customer whose use is measured by the meter, a public utility furnishing water to any customer must conduct a test to determine the accuracy of the meter. Upon obtaining the written consent of the Commission or the customer, the utility may use a company authorized by the Commission to conduct the test. The utility shall charge the customer for the conduct of the test in the amount authorized by the Commission by rule.

(c) The Commission may establish by rule a minimum schedule for testing of water meters and any tests conducted thereunder must be conducted at the utility's expense.

(220 ILCS 5/9-201) (from Ch. 111 2/3, par. 9-201)

Sec. 9-201. Change of rates or other matters; notice; new schedules; suspension of rates; hearings.

(a) Unless the Commission otherwise orders, and except as otherwise provided in this Section, no change shall be made by any public utility in any rate or other charge or classification, or in any rule, regulation, practice or contract relating to or affecting any rate or other charge, classification or service, or in any privilege or facility, except after 45 days' notice to the Commission and to the public as herein provided. Such notice shall be given by filing with the Commission and keeping open for public inspection new schedules or supplements stating plainly the change or changes to be made in the schedule or schedules then in force, and the time when the change or changes will go into effect, and by publication in a newspaper of general circulation or such other notice to persons affected by such change as may be prescribed by rule of the Commission. The Commission, for good cause shown, may allow changes without requiring the 45 days' notice herein provided for, by an order specifying the changes so to be made and the time when they shall take effect and the manner in which they shall be filed and published.

When any change is proposed in any rate or other charge, or classification, or in any rule, regulation, practice, or contract relating to or affecting any rate or other charge, classification or service, or in any privilege or facility, such proposed change shall be plainly indicated on the new schedule filed with the Commission, by some character to be designated by the Commission, immediately preceding or following the item.

When any public utility providing water or sewer service proposes any change in any rate or other charge, or classification, or in any rule, regulation, practice, or contract relating to or affecting any rate or other charge, classification or service, or in any privilege or facility, such utility shall, in addition to the other notice requirements of this Act, provide notice of such change to all customers potentially affected by including a notice and description of such change, and of Commission procedures for intervention, in the first bill sent to each such customer after the filing of the proposed change.

When any public utility providing water or sewer service proposes a rate increase, prior to the date set for the hearing, a public forum on the increase must be conducted in each unit of local government in which the increase will take effect and the public utility must provide 30 days' advance notice of each hearing to the governing body of those units of local government. In addition, each public forum must be held on a day and at a time that will allow for the greatest possible public participation and in a location within 60 miles of the service area affected by the proposed rate increase. Reports and comments made during or as a result of the public forum must be made part of the record of the hearing.

(b) Whenever there shall be filed with the Commission any schedule stating an individual or joint rate or other charge, classification, contract, practice, rule or regulation, the Commission shall have power, and it is hereby given authority, either upon complaint or upon its own initiative without complaint, at once, and if it so orders, without answer or other formal pleadings by the interested public utility or utilities, but upon reasonable notice, to enter upon a hearing concerning the propriety of such rate or other charge, classification, contract, practice, rule or regulation, and pending the hearing and decision thereon, such rate or other charge, classification, contract, practice, rule or regulation shall not go into effect. The period of suspension of such rate or other charge, classification, contract, practice, rule or regulation shall not extend more than 105 days beyond the time when such rate or other charge, classification, contract, practice, rule or regulation would otherwise go into effect unless the Commission, in its discretion, extends the period of suspension for a further period not exceeding 6 months.

All rates or other charges, classifications, contracts, practices, rules or regulations not so suspended shall, on the expiration of 45 days from the time of filing the same with the Commission, or of such lesser time as the Commission may grant, go into effect and be the established and effective rates or other charges, classifications, contracts, practices, rules and regulations, subject to the power of the Commission, after a hearing had on its own motion or upon complaint, as herein provided, to alter or modify the same.

Within 30 days after such changes have been authorized by the Commission, copies of the new or revised schedules shall be posted or filed in accordance with the terms of Section 9-103 of this Act, in such a manner that all changes shall be plainly indicated.

(c) If the Commission enters upon a hearing concerning the propriety of any proposed rate or other charge, classification, contract, practice, rule or regulation, the Commission shall establish the rates or other charges, classifications, contracts, practices, rules or regulations proposed, in whole or in part, or others in lieu thereof, which it shall find to be just and reasonable. In such hearing, the burden of proof to establish the justness and reasonableness of the proposed rates or other charges, classifications, contracts, practices, rules or regulations, in whole and in part, shall be upon the utility. No rate or other charge, classification, contract, practice, rule or regulation shall be found just and reasonable unless it is consistent with Sections of this Article.

(Source: P.A. 84-617.)

(220 ILCS 5/9-220.5 new)

Sec. 9-220.5. Water and sewer utilities; low usage. Each public utility that provides water and sewer service must establish a unit rate, subject to review by the Commission, that applies only to those customers who use less than 100 gallons of water in any billing period.

(220 ILCS 5/9-220.7 new)

Sec. 9-220.7. Water and sewer utilities; separate meters. Each public utility that provides water and sewer service must offer separate rates for water and sewer service to any commercial or residential customer who uses separate meters to measure each of those services. In order for the separate rate to apply, a combination of meters must be used to measure the amount of water that reaches the sewer system and the amount of water that does not reach the sewer system.

(220 ILCS 5/9-223) (from Ch. 111 2/3, par. 9-223)

Sec. 9-223. Fire protection charge.

(a) The Commission may authorize any public utility engaged in the production, storage, transmission, sale, delivery or furnishing of water to impose a fire protection charge, in addition to any rate authorized by this Act, sufficient to cover a reasonable portion of the cost of providing the capacity, facilities and the water necessary to meet the fire protection needs of any municipality or public fire protection district. Such fire protection charge shall be in the form of a fixed amount per bill and shall be shown separately on the utility bill of each customer of the municipality or fire protection district. Any filing by a public utility to impose such a fire protection charge or to modify a charge shall be made pursuant to Section 9-201 of this Act. Any fire protection charge imposed shall reflect the costs associated with providing fire protection service for each municipality or fire protection district. No such charge shall be imposed directly on any municipality or fire protection district for a reasonable level of fire protection services unless provided for in a separate agreement between the municipality or the fire protection district and the utility.

(b) Within one year after the effective date of this amendatory Act of the 94th General Assembly, the Commission shall conduct at least 3 public forums to evaluate the purpose and use of each fire protection charge imposed under this Section. At least one forum must be held in northern Illinois, at least one forum must be held in central Illinois, and at least one forum must be held in southern Illinois. The Commission must invite a representative from each municipality and fire protection district affected by a fire protection charge under this Section to attend a public forum. The Commission shall report its findings concerning recommendations concerning the purpose and use of each fire protection charge to the General Assembly no later than the last day of the veto session in 2006.

(Source: P.A. 84-617.)

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