HB1828 104TH GENERAL ASSEMBLY

LRB104 07324 AAS 17363 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1828

Introduced 1/29/2025, by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

220 ILCS 5/9-211.5 new

Amends the Public Utilities Act. Provides that the Illinois Commerce Commission, in a general rate case proceeding initiated by a public utility that provides water and wastewater service in Illinois, is authorized to approve rate designs requested by a public utility that provides water and wastewater service in Illinois if it finds that such rate designs will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or are otherwise in the public interest. Provides that if the Commission finds that any rate design will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or is in the public interest, the Commission shall enter an order approving such rate design. Requires the Commission to take certain evidence presented by the public utility into account when entering its order. Provides that the Commission may require the public utility, in addition to and as part of the required notice to its customers, to provide a description of any rate design being considered in the proceeding, a statement of the estimated bill impact as a result of rate design approved by the Commission, and any other information that the Commission deems necessary. Provides that the Commission may adopt rules to implement the provisions. Effective immediately.

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 adding Section 9-211.5 as follows:

(220 ILCS 5/9-211.5 new)

Sec. 9-211.5. Water and wastewater rate design.

(a) The General Assembly finds that:

(1) The State of Illinois should enact rate design policies that support prudent and timely investment in water and wastewater infrastructure by public utilities that provide water and wastewater services, in order for all customers of these utilities to receive safe, reliable, and affordable water and wastewater services in accordance with the provisions of this Section.

(2) The regulated water and wastewater industry is differently situated with respect to customer bases and service territory composition when compared to other utilities.

(3) With respect to the regulated water and wastewater industry, current Illinois statutes do not currently provide express regulatory flexibility regarding rate design mechanisms or models. In addition, recent Commission Orders acknowledged that the General Assembly may wish to provide guidance to the Commission on rate design policies.

(b) The Commission, in a general rate case proceeding pursuant to Section 9-201 of this Act initiated by a public utility that provides water and wastewater service in Illinois, is authorized to approve rate designs requested by a public utility that provides water and wastewater service in Illinois, including rate designs that allocate costs or revenues to different classes or types of service, if it finds that such rate designs will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or are otherwise in the public interest. Such authority shall include the authority to approve rate designs requested by a public utility that provides water and wastewater service in Illinois that do not follow traditional rate design principles, including cost causation.

(c) A public utility that provides water and wastewater service in Illinois and requests approval of proposed rate designs consistent with the authority in subsection (b) shall present specific evidence explaining and justifying the proposal, including evidence of each of the following:

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

(2) the capital investment or investments made or planned by the water and wastewater public utility that would be supported by the proposed rate design;

(3) the level and history of investment, to the extent known, in any water or wastewater system that would benefit from the proposed rate design by the previous owner or operator of a water or wastewater system;

(4) future capital investment needs for water or wastewater systems that would benefit from the proposed rate design;

(5) the overall benefit that the proposed rate design would have on the water and wastewater public utility's customer base statewide if approved by the Commission;

(6) publicly available data on income levels of the customers in the service territories potentially affected by the proposed rate design; and

(7) how the proposed rate design would enhance the equitable provision of safe, reliable, and affordable water and wastewater services or is otherwise in the public interest.

(d) If, after considering the public utility's evidence as set forth in subsection (c), the Commission finds that the rate design requested by a public utility that provides water and wastewater service in Illinois, including rate designs that allocate costs or revenues to different classes or types of service, will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or is in the public interest, the Commission shall enter an order approving such rate design.

(e) The Commission may require the public utility in a proceeding under subsection (b), in addition to and as part of the required notice to its customers pursuant to Section 9-201, to provide a description of any rate design being considered in the proceeding, a statement of the estimated bill impact as a result of any rate design approved pursuant to this Section, and any other information regarding the approved rate design that the Commission deems necessary.

(f) Nothing is 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.

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

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