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| 1 | | with this Section. Unless it complies with the provisions set |
| 2 | | forth in this Section, a municipality is not permitted to |
| 3 | | acquire by eminent domain that portion of a system located in |
| 4 | | another incorporated municipality without agreement of that |
| 5 | | municipality, but this provision shall not prevent the |
| 6 | | acquisition of that portion of the water system existing |
| 7 | | within the acquiring municipality. A referendum to initiate a |
| 8 | | process by which a municipality may acquire a system by |
| 9 | | eminent domain may be called by a resolution by the relevant |
| 10 | | corporate authorities under subsection (a-5) or by the filing |
| 11 | | of a petition under subsection (a-10). Any municipality may |
| 12 | | initiate a process to acquire a system by eminent domain under |
| 13 | | subsection (a-5) or (a-10). |
| 14 | | (a-5) If the corporate authorities of a municipality adopt |
| 15 | | a resolution calling for a referendum on a proposal to acquire |
| 16 | | a system by eminent domain, within the time provided in the |
| 17 | | general election law, then the corporate authorities shall |
| 18 | | provide for the submission of the proposal to the electors of |
| 19 | | the municipality in accordance with this Section at the next |
| 20 | | general election held in an even-numbered year. The |
| 21 | | proposition shall be in substantially the following form: |
| 22 | | Shall the municipality of (name of municipality) |
| 23 | | initiate a process to determine the feasibility of |
| 24 | | acquiring (name of the public utility) and, upon |
| 25 | | determining that such an acquisition is possible, |
| 26 | | undertake to acquire (name of the water or sewer system) |
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| 1 | | by eminent domain? |
| 2 | | The votes shall be recorded as "Yes" or "No". |
| 3 | | If a majority of the electors voting on the referendum |
| 4 | | within the service area of the water or sewer utility vote in |
| 5 | | favor of the referendum, then the municipality shall undertake |
| 6 | | a process to determine the feasibility of acquiring the system |
| 7 | | in accordance with subsection (f) and it shall, upon a finding |
| 8 | | that such an undertaking is feasible, initiate an acquisition |
| 9 | | via eminent domain in accordance with this Section. If less |
| 10 | | than a majority of the electors voting on the referendum |
| 11 | | within the service area of the water or sewer utility vote in |
| 12 | | favor of the referendum, then the municipality shall not |
| 13 | | initiate a procedure to determine the feasibility of |
| 14 | | acquisition and shall not subsequently attempt to acquire the |
| 15 | | system for a period of not less than 2 years after the |
| 16 | | referendum. |
| 17 | | (a-10) Upon the filing of a petition signed by the number |
| 18 | | of registered voters required by this subsection (a-10) with |
| 19 | | the clerk of a circuit court having jurisdiction over the |
| 20 | | municipality, within the time provided in the general election |
| 21 | | law, that requests the initiation of a process by which a |
| 22 | | municipality may acquire a water or sewer system by eminent |
| 23 | | domain, the clerk of the circuit court shall transmit the |
| 24 | | petition to the chief judge of the circuit court who shall |
| 25 | | determine the sufficiency of the petition or assign the |
| 26 | | determination of the sufficiency of the petition to a circuit |
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| 1 | | judge who shall make the determination. For a municipality |
| 2 | | with a population greater than or equal to 500,000, the |
| 3 | | petition under this subsection (a-10) shall be signed by 5% of |
| 4 | | the registered voters in the municipality or 10,000 |
| 5 | | individuals, whichever is less. For a county with a population |
| 6 | | less than 500,000, the petition under this subsection (a-10) |
| 7 | | shall be signed by 5% of the registered voters in the |
| 8 | | municipality or 1,000 individuals, whichever is less. If the |
| 9 | | judge determines that the petition is sufficient, then the |
| 10 | | judge shall certify the sufficiency of the petition and issue |
| 11 | | an order directing the county clerk and the county board to |
| 12 | | provide for the submission of the proposition to the electors |
| 13 | | of the municipality at the next general election held in an |
| 14 | | even-numbered year. The referendum shall be conducted in such |
| 15 | | a manner as is prescribed in the general election law. The |
| 16 | | proposition shall be in substantially the following form: |
| 17 | | Shall the municipality of (name of municipality) |
| 18 | | initiate a process to determine the feasibility of |
| 19 | | acquiring (name of the public utility) and, upon |
| 20 | | determining that such an acquisition is possible, |
| 21 | | undertake to acquire (name of the water or sewer system) |
| 22 | | by eminent domain? |
| 23 | | The votes shall be recorded as "Yes" or "No". |
| 24 | | If a majority of the electors voting on the referendum |
| 25 | | within the service area of the water or sewer utility vote in |
| 26 | | favor of the referendum, then the municipality may undergo a |
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| 1 | | process to determine the feasibility of acquiring the system |
| 2 | | in accordance with subsection (f) and, upon a finding that |
| 3 | | such an undertaking is feasible, initiate an acquisition via |
| 4 | | eminent domain in accordance with this Section. If less than a |
| 5 | | majority of the electors voting on the referendum within the |
| 6 | | service area of the water or sewer utility vote in favor of the |
| 7 | | referendum, then the municipality shall not initiate a |
| 8 | | procedure to determine the feasibility of acquisition and |
| 9 | | shall not subsequently attempt to acquire the system for a |
| 10 | | period of not less than 2 years after the referendum. |
| 11 | | (b) Where a water or sewer system that is owned by a public |
| 12 | | utility (as defined in the Public Utilities Act) provides |
| 13 | | water or sewer services to customers located in 2 or more |
| 14 | | municipalities, the system may be acquired by a majority of |
| 15 | | the municipalities by eminent domain. If the system is to be |
| 16 | | acquired by more than one municipality, then there must be an |
| 17 | | intergovernmental agreement in existence between the acquiring |
| 18 | | municipalities providing for the acquisition. |
| 19 | | (c) If a water or sewer system that is owned by a public |
| 20 | | utility provides water or sewer services to customers located |
| 21 | | in one or more municipalities and also to customers in an |
| 22 | | unincorporated area and if at least 70% of the customers of the |
| 23 | | system or portion thereof are located within the municipality |
| 24 | | or municipalities, then the system, or portion thereof as |
| 25 | | determined by the corporate authorities, may be acquired, |
| 26 | | using eminent domain or otherwise, by either a municipality |
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| 1 | | under subsection (a) or an entity created by agreement between |
| 2 | | municipalities where at least 70% of the customers reside. For |
| 3 | | the purposes of determining "customers of the system", only |
| 4 | | retail customers directly billed by the company shall be |
| 5 | | included in the computation. The number of customers of the |
| 6 | | system most recently reported to the Illinois Commerce |
| 7 | | Commission for any calendar year preceding the year a |
| 8 | | resolution is passed by a municipality or municipalities |
| 9 | | expressing preliminary intent to purchase the water system or |
| 10 | | portion thereof shall be presumed to be the total number of |
| 11 | | customers within the system. The public utility shall provide |
| 12 | | information relative to the number of customers within each |
| 13 | | municipality and within the system within 60 days after any |
| 14 | | such request by a municipality. |
| 15 | | (d) In the case of acquisition by a municipality or |
| 16 | | municipalities or a public entity created by law to own or |
| 17 | | operate a water system under this Section, service and water |
| 18 | | supply must be provided to persons who are customers of the |
| 19 | | system on the effective date of this amendatory Act of the 94th |
| 20 | | General Assembly without discrimination based on whether the |
| 21 | | customer is located within or outside of the boundaries of the |
| 22 | | acquiring municipality or municipalities or entity, and a |
| 23 | | supply contract existing on the effective date of this |
| 24 | | amendatory Act of the 94th General Assembly must be honored by |
| 25 | | an acquiring municipality, municipalities, or entity according |
| 26 | | to the terms so long as the agreement does not conflict with |
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| 1 | | any other existing agreement. |
| 2 | | (e) For the purposes of this Section, "system" includes |
| 3 | | all assets reasonably necessary to provide water or sewer |
| 4 | | service to a contiguous or compact geographical service area |
| 5 | | or to an area served by a common pipeline and include, but are |
| 6 | | not limited to, interests in real estate, all wells, pipes, |
| 7 | | treatment plants, pumps and other physical apparatus, data and |
| 8 | | records of facilities and customers, fire hydrants, equipment, |
| 9 | | or vehicles and also includes service agreements and |
| 10 | | obligations derived from use of the assets, whether or not the |
| 11 | | assets are contiguous to the municipality, municipalities, or |
| 12 | | entity created for the purpose of owning or operating a water |
| 13 | | or sewer system. |
| 14 | | (f) Before making a good faith offer, a municipality may |
| 15 | | pass a resolution of intent to study the feasibility of |
| 16 | | purchasing or exercising its power of eminent domain to |
| 17 | | acquire any water system or water works, sewer system or sewer |
| 18 | | works, or combined water and sewer system or works, or part |
| 19 | | thereof. Upon the passage of such a resolution, the |
| 20 | | municipality shall have the right to review and inspect all |
| 21 | | financial and other records, and both corporeal and |
| 22 | | incorporeal assets of such utility related to the condition |
| 23 | | and the operation of the system or works, or part thereof, as |
| 24 | | part of the study and determination of feasibility of the |
| 25 | | proposed acquisition by purchase or exercise of the power of |
| 26 | | eminent domain, and the utility shall make knowledgeable |
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| 1 | | persons who have access to all relevant facts and information |
| 2 | | regarding the subject system or works available to answer |
| 3 | | inquiries related to the study and determination. |
| 4 | | The right to review and inspect shall be upon reasonable |
| 5 | | notice to the utility, with reasonable inspection and review |
| 6 | | time limitations and reasonable response times for production, |
| 7 | | copying, and answer. In addition, the utility may utilize a |
| 8 | | reasonable security protocol for personnel on the |
| 9 | | municipality's physical inspection team. |
| 10 | | In the absence of other agreement, the utility must |
| 11 | | respond to any notice by the municipality concerning its |
| 12 | | review and inspection within 21 days after receiving the |
| 13 | | notice. The review and inspection of the assets of the company |
| 14 | | shall be over such period of time and carried out in such |
| 15 | | manner as is reasonable under the circumstances. |
| 16 | | Information requested that is not privileged or protected |
| 17 | | from discovery under the Illinois Code of Civil Procedure but |
| 18 | | is reasonably claimed to be proprietary, including, without |
| 19 | | limitation, information that constitutes trade secrets or |
| 20 | | information that involves system security concerns, shall be |
| 21 | | provided, but shall not be considered a public record and |
| 22 | | shall be kept confidential by the municipality. |
| 23 | | In addition, the municipality must, upon request, |
| 24 | | reimburse the utility for the actual, reasonable costs and |
| 25 | | expenses, excluding attorneys' fees, incurred by the utility |
| 26 | | as a result of the municipality's inspection and requests for |
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| 1 | | information. Upon written request, the utility shall issue a |
| 2 | | statement itemizing, with reasonable detail, the costs and |
| 3 | | expenses for which reimbursement is sought by the utility. |
| 4 | | Where such written request for a statement has been made, no |
| 5 | | payment shall be required until 30 days after receipt of the |
| 6 | | statement. Such reimbursement by the municipality shall be |
| 7 | | considered income for purposes of any rate proceeding or other |
| 8 | | financial request before the Illinois Commerce Commission by |
| 9 | | the utility. |
| 10 | | The municipality and the utility shall cooperate to |
| 11 | | resolve any dispute arising under this subsection. In the |
| 12 | | event the dispute under this subsection cannot be resolved, |
| 13 | | either party may request relief from the circuit court in any |
| 14 | | county in which the water system is located, with the |
| 15 | | prevailing party to be awarded such relief as the court deems |
| 16 | | appropriate under the discovery abuse sanctions currently set |
| 17 | | forth in the Illinois Code of Civil Procedure. |
| 18 | | The municipality's right to inspect physical assets and |
| 19 | | records in connection with the purpose of this Section shall |
| 20 | | not be exercised with respect to any system more than one time |
| 21 | | during a 5-year period, unless a substantial change in the |
| 22 | | size of the system or condition of the operating assets of the |
| 23 | | system has occurred since the previous inspection. Rights |
| 24 | | under franchise agreements and other agreements or statutory |
| 25 | | or regulatory provisions are not limited by this Section and |
| 26 | | are preserved. |
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| 1 | | The passage of time between an inspection of the utilities |
| 2 | | and physical assets and the making of a good faith offer or |
| 3 | | initiation of an eminent domain action because of the limit |
| 4 | | placed on inspections by this subsection shall not be used as a |
| 5 | | basis for challenging the good faith of any offer or be used as |
| 6 | | the basis for attacking any appraisal, expert, argument, or |
| 7 | | position before a court related to an acquisition by purchase |
| 8 | | or eminent domain. |
| 9 | | (g) Notwithstanding any other provision of law, the |
| 10 | | Illinois Commerce Commission has no approval authority of any |
| 11 | | eminent domain action brought by any governmental entity or |
| 12 | | combination of such entities to acquire water or sewer systems |
| 13 | | or water works, except as is provided in subsection (h) of |
| 14 | | Section 10-5-10 of the Eminent Domain Act. |
| 15 | | (h) The provisions of this Section are severable under |
| 16 | | Section 1.31 of the Statute on Statutes. |
| 17 | | (i) This Section does not apply to any public utility |
| 18 | | company that, on January 1, 2006, supplied a total of 70,000 or |
| 19 | | fewer meter connections in the State unless and until (i) that |
| 20 | | public utility company receives approval from the Illinois |
| 21 | | Commerce Commission under Section 7-204 of the Public |
| 22 | | Utilities Act for the reorganization of the public utility |
| 23 | | company or (ii) the majority control of the company changes |
| 24 | | through a stock sale, a sale of assets, a merger (other than an |
| 25 | | internal reorganization) or otherwise. For the purpose of this |
| 26 | | Section, "public utility company" means the public utility |
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| 1 | | providing water or sewer service and includes any of its |
| 2 | | corporate parents, subsidiaries, or affiliates possessing a |
| 3 | | franchised water or sewer service in the State. |
| 4 | | (j) Any contractor or subcontractor that performs work on |
| 5 | | a water system acquired by a municipality or municipalities |
| 6 | | under this Section shall comply with the requirements of |
| 7 | | Section 30-22 of the Illinois Procurement Code. The contractor |
| 8 | | or subcontractor shall submit evidence of compliance with |
| 9 | | Section 30-22 to the municipality or municipalities. |
| 10 | | (k) The municipality or municipalities acquiring the water |
| 11 | | system shall offer available employee positions to the |
| 12 | | qualified employees of the acquired water system. |
| 13 | | (l) The acquisition of systems by eminent domain through |
| 14 | | the procedures described in this Section is declared to be a |
| 15 | | special use under Section 10-5-60 of the Eminent Domain Act. |
| 16 | | Accordingly, the acquisition price shall be the price for |
| 17 | | which the system was purchased from the municipality by a |
| 18 | | private entity, plus the cost of actual improvement to the |
| 19 | | system by the private entity, minus the cost of depreciation |
| 20 | | of the assets and any public moneys or assets given to the |
| 21 | | public utility for the purpose of improving the water or sewer |
| 22 | | service, accounting for the rate of inflation between the time |
| 23 | | of purchase by the private entity and the time of acquisition |
| 24 | | by the municipality. |
| 25 | | (Source: P.A. 103-13, eff. 6-9-23.) |
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| 1 | | Section 10. The Public Utilities Act is amended by |
| 2 | | changing Section 9-210.5 as follows: |
| 3 | | (220 ILCS 5/9-210.5) |
| 4 | | (Section scheduled to be repealed on June 1, 2028) |
| 5 | | Sec. 9-210.5. Valuation of water and sewer utilities. |
| 6 | | (a) In this Section: |
| 7 | | "Disinterested" means that the person directly |
| 8 | | involved (1) is not a director, officer, or an employee of |
| 9 | | the large public utility or the water or sewer utility or |
| 10 | | its direct affiliates or subsidiaries for at least 12 |
| 11 | | months before becoming engaged under this Section; (2) |
| 12 | | shall not derive a material financial benefit from the |
| 13 | | sale of the water or sewer utility other than fees for |
| 14 | | services rendered, and (3) shall not have a member of the |
| 15 | | person's immediate family, including a spouse, parents or |
| 16 | | spouse's parents, children or spouses of children, or |
| 17 | | siblings and their spouses or children, be a director, |
| 18 | | officer, or employee of either the large public utility or |
| 19 | | water or sewer utility or the water or sewer utility or its |
| 20 | | direct affiliates or subsidiaries for at least 12 months |
| 21 | | before becoming engaged under this Section or receive a |
| 22 | | material financial benefit from the sale of the water or |
| 23 | | sewer utility other than fees for services rendered. |
| 24 | | "District" means a service area of a large public |
| 25 | | utility whose customers are subject to the same rate |
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| 1 | | tariff. |
| 2 | | "Large public utility" means an investor-owned public |
| 3 | | utility that: |
| 4 | | (1) is subject to regulation by the Illinois |
| 5 | | Commerce Commission under this Act; |
| 6 | | (2) regularly provides water or sewer service to |
| 7 | | more than 15,000 customer connections; |
| 8 | | (3) provides safe and adequate service; and |
| 9 | | (4) is not a water or sewer utility as defined in |
| 10 | | this subsection (a). |
| 11 | | "Next rate case" means a large public utility's first |
| 12 | | general rate case after the date the large public utility |
| 13 | | acquires the water or sewer utility where the acquired |
| 14 | | water or sewer utility's cost of service is considered as |
| 15 | | part of determining the large public utility's resulting |
| 16 | | rates. |
| 17 | | "Prior rate case" means a large public utility's |
| 18 | | general rate case resulting in the rates in effect for the |
| 19 | | large public utility at the time it acquires the water or |
| 20 | | sewer utility. |
| 21 | | "Utility service source" means the water or sewer |
| 22 | | utility or large public utility from which the customer |
| 23 | | receives its utility service type. |
| 24 | | "Utility service type" means water utility service or |
| 25 | | sewer utility service or water and sewer utility service. |
| 26 | | "Water or sewer utility" means any of the following: |
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| 1 | | (1) a public utility that regularly provides water |
| 2 | | or sewer service to 6,000 or fewer customer |
| 3 | | connections; |
| 4 | | (2) a water district, including, but not limited |
| 5 | | to, a public water district, water service district, |
| 6 | | or surface water protection district, or a sewer |
| 7 | | district of any kind established as a special district |
| 8 | | under the laws of this State that regularly provides |
| 9 | | water or sewer service; |
| 10 | | (3) a waterworks system or sewerage system |
| 11 | | established under the Township Code that regularly |
| 12 | | provides water or sewer service; or |
| 13 | | (4) a water system or sewer system owned by a |
| 14 | | municipality that regularly provides water or sewer |
| 15 | | service; and |
| 16 | | (5) any other entity that is not a public utility |
| 17 | | that regularly provides water or sewer service. |
| 18 | | (b) Notwithstanding any other provision of this Act, a |
| 19 | | large public utility that acquires a water or sewer utility |
| 20 | | may request that the Commission use, and, if so requested, the |
| 21 | | Commission shall use, the procedures set forth under this |
| 22 | | Section to establish the ratemaking rate base of that water or |
| 23 | | sewer utility at the time when it is acquired by the large |
| 24 | | public utility. |
| 25 | | (c) If a large public utility elects the procedures under |
| 26 | | this Section to establish the rate base of a water or sewer |
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| 1 | | utility that it is acquiring, then 3 appraisals shall be |
| 2 | | performed. The average of these 3 appraisals shall represent |
| 3 | | the fair market value of the water or sewer utility that is |
| 4 | | being acquired. The appraisals shall be performed by 3 |
| 5 | | appraisers approved by the Commission's Executive Director or |
| 6 | | designee and engaged by either the water or sewer utility |
| 7 | | being acquired or by the large public utility. Each appraiser |
| 8 | | shall be engaged on reasonable terms approved by the |
| 9 | | Commission. Each appraiser shall be a disinterested person |
| 10 | | licensed as a State certified general real estate appraiser |
| 11 | | under the Real Estate Appraiser Licensing Act of 2002. |
| 12 | | Each appraiser shall: |
| 13 | | (1) be sworn to determine the fair market value of the |
| 14 | | water or sewer utility by establishing the amount for |
| 15 | | which the water or sewer utility would be sold in a |
| 16 | | voluntary transaction between a willing buyer and willing |
| 17 | | seller under no obligation to buy or sell; |
| 18 | | (2) determine fair market value in compliance with the |
| 19 | | Uniform Standards of Professional Appraisal Practice; |
| 20 | | (3) engage one disinterested engineer who is licensed |
| 21 | | in this State, and who may be the same engineer that is |
| 22 | | engaged by the other appraisers, to prepare an assessment |
| 23 | | of the tangible assets of the water or sewer utility, |
| 24 | | which is to be incorporated into the appraisal under the |
| 25 | | cost approach; |
| 26 | | (4) request from the manager of the Accounting |
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| 1 | | Department, if the water or sewer utility is a public |
| 2 | | utility that is regulated by the Commission, a list of |
| 3 | | investments made by the water or sewer utility that had |
| 4 | | been disallowed previously and that shall be excluded from |
| 5 | | the calculation of the large public utility's rate base in |
| 6 | | its next rate case; and |
| 7 | | (5) return their appraisal, in writing, to the water |
| 8 | | or sewer utility and large public utility in a reasonable |
| 9 | | and timely manner. |
| 10 | | If the appraiser cannot engage an engineer, as described |
| 11 | | in paragraph (3) of this subsection (c), within 30 days after |
| 12 | | the appraiser is engaged, then the Commission's Executive |
| 13 | | Director or designee shall recommend the engineer the |
| 14 | | appraiser should engage. The Commission's Executive Director |
| 15 | | or designee shall provide his or her recommendation within 30 |
| 16 | | days after he or she is officially notified of the appraiser's |
| 17 | | failure to engage an engineer and the appraiser shall promptly |
| 18 | | work to engage the recommended engineer. If the appraiser is |
| 19 | | unable to negotiate reasonable engagement terms with the |
| 20 | | recommended engineer within 15 days after the recommendation |
| 21 | | by the Commission's Executive Director or designee, then the |
| 22 | | appraiser shall notify the Commission's Executive Director or |
| 23 | | designee and the process shall be repeated until an engineer |
| 24 | | is successfully engaged. |
| 25 | | (d) The lesser of (i) the purchase price or (ii) the fair |
| 26 | | market value determined under subsection (c) of this Section |
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| 1 | | shall constitute the rate base associated with the water or |
| 2 | | sewer utility as acquired by and incorporated into the rate |
| 3 | | base of the district designated by the acquiring large public |
| 4 | | utility under this Section, subject to any adjustments that |
| 5 | | the Commission deems necessary to ensure such rate base |
| 6 | | reflects prudent and useful investments in the provision of |
| 7 | | public utility service. The reasonable transaction and closing |
| 8 | | costs incurred by the large public utility shall be treated |
| 9 | | consistent with the applicable accounting standards under this |
| 10 | | Act. The total amount of all of the appraisers' fees to be |
| 11 | | included in the transaction and closing costs shall not exceed |
| 12 | | the greater of $15,000 or 5% of the appraised value of the |
| 13 | | water or sewer utility being acquired. This rate base |
| 14 | | treatment shall not be deemed to violate this Act, including, |
| 15 | | but not limited to, any Sections in Articles VIII and IX of |
| 16 | | this Act that might be affected by this Section. Any |
| 17 | | acquisition of a water or sewer utility that affects the |
| 18 | | cumulative base rates of the large public utility's existing |
| 19 | | ratepayers in the tariff group into which the water or sewer |
| 20 | | utility is to be combined by less than (1) 2.5% at the time of |
| 21 | | the acquisition for any single acquisition completed under |
| 22 | | this Section or (2) 5% for all acquisitions completed under |
| 23 | | this Section before the Commission's final order in the next |
| 24 | | rate case shall not be deemed to violate Section 7-204 or any |
| 25 | | other provision of this Act. |
| 26 | | In the Commission's order that approves the large public |
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| 1 | | utility's acquisition of the water or sewer utility, the |
| 2 | | Commission shall issue its decision establishing (1) the |
| 3 | | ratemaking rate base of the water or sewer utility; (2) the |
| 4 | | district or tariff group with which the water or sewer utility |
| 5 | | shall be combined for ratemaking purposes, if such combination |
| 6 | | has been proposed by the large public utility; and (3) the |
| 7 | | rates to be charged to customers in the water or sewer utility. |
| 8 | | (e) If the water or sewer utility being acquired is owned |
| 9 | | by the State or any political subdivision thereof, then the |
| 10 | | water or sewer utility must inform the public of the terms of |
| 11 | | its acquisition by the large public utility by (1) holding a |
| 12 | | public meeting prior to the acquisition and (2) causing to be |
| 13 | | published, in a newspaper of general circulation in the area |
| 14 | | that the water or sewer utility operates, a notice setting |
| 15 | | forth the terms of its acquisition by the large public utility |
| 16 | | and options that shall be available to assist customers to pay |
| 17 | | their bills after the acquisition. At the election next |
| 18 | | following the public meeting and notice required under this |
| 19 | | subsection (e), a referendum, subject to the requirements of |
| 20 | | Section 16-7 of the Election Code, shall be placed on the |
| 21 | | ballot for all electors within the area where the water or |
| 22 | | sewer utility operates in substantially the following form: |
| 23 | | May the (name of large public utility) acquire the |
| 24 | | (name of water or sewer utility) under the terms of |
| 25 | | acquisition as published in (name of newspaper) on (date)? |
| 26 | | The votes shall be recorded as "Yes" or "No". |
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| 1 | | If a majority of the electors voting on the referendum |
| 2 | | within the service area of the water or sewer utility vote in |
| 3 | | favor of the referendum, then the acquisition may continue as |
| 4 | | provided in this Section. If less than a majority of the |
| 5 | | electors voting on the referendum within the service area of |
| 6 | | the water or sewer utility vote in favor of the referendum, |
| 7 | | then the Commission shall deny the large public utility's |
| 8 | | acquisition of the water or sewer utility. |
| 9 | | (f) The large public utility may recommend the district or |
| 10 | | tariff group of which the water or sewer utility shall, for |
| 11 | | ratemaking purposes, become a part after the acquisition, or |
| 12 | | may recommend a lesser rate for the water or sewer utility. If |
| 13 | | the large public utility recommends a lesser rate, it shall |
| 14 | | submit to the Commission its proposed rate schedule and the |
| 15 | | proposed final tariff group for the acquired water or sewer |
| 16 | | utility. The Commission's approved district or tariff group or |
| 17 | | rates shall be consistent with the large public utility's |
| 18 | | recommendation, unless such recommendation can be shown to be |
| 19 | | contrary to the public interest. |
| 20 | | (g) From the date of acquisition until the date that new |
| 21 | | rates are effective in the acquiring large public utility's |
| 22 | | next rate case, the customers of the acquired water or sewer |
| 23 | | utility shall pay the approved then-existing rates of the |
| 24 | | district or tariff group as ordered by the Commission, or some |
| 25 | | lesser rates as recommended by the large public utility and |
| 26 | | approved by the Commission under subsection (f); provided, |
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| 1 | | that, if the application of such rates of the large public |
| 2 | | utility to customers of the acquired water or sewer utility |
| 3 | | using 54,000 gallons annually results in an increase to the |
| 4 | | total annual bill of customers of the acquired water or sewer |
| 5 | | utility, exclusive of fire service or related charges, then |
| 6 | | the large public utility's rates charged to the customers of |
| 7 | | the acquired water or sewer utility shall be uniformly |
| 8 | | reduced, if any reduction is required, by the percent that |
| 9 | | results in the total annual bill, exclusive of fire services |
| 10 | | or related charges, for the customers of the acquired water or |
| 11 | | sewer utility using 54,000 gallons being equal to 1.5% of the |
| 12 | | latest median household income as reported by the United |
| 13 | | States Census Bureau for the most applicable community or |
| 14 | | county. For each customer of the water or sewer utility with |
| 15 | | potable water usage values that cannot be reasonably obtained, |
| 16 | | a value of 4,500 gallons per month shall be assigned. These |
| 17 | | rates shall not be deemed to violate this Act including, but |
| 18 | | not limited to, Section 9-101 and any other applicable |
| 19 | | Sections in Articles VIII and IX of this Act. The Commission |
| 20 | | shall issue its decision establishing the rates effective for |
| 21 | | the water or sewer utility immediately following an |
| 22 | | acquisition in its order approving the acquisition. |
| 23 | | (h) In the acquiring large public utility's next rate |
| 24 | | case, the water or sewer utility and the district or tariff |
| 25 | | group ordered by the Commission and their costs of service may |
| 26 | | be combined under the same rate tariff. This rate tariff shall |
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| 1 | | be based on allocation of costs of service of the acquired |
| 2 | | water or sewer utility and the large public utility's district |
| 3 | | or tariff group ordered by the Commission and utilizing a rate |
| 4 | | design that does not distinguish among customers on the basis |
| 5 | | of utility service source or type. This rate tariff shall not |
| 6 | | be deemed to violate this Act including, but not limited to, |
| 7 | | Section 9-101 of this Act. In the acquiring large public |
| 8 | | utility's 2 rate cases after an acquisition, but in no |
| 9 | | subsequent rate case, the large public utility may file a rate |
| 10 | | tariff for a water or sewer utility acquired under this |
| 11 | | Section that establishes lesser rates than the district or |
| 12 | | tariff group into which the water or sewer utility is to be |
| 13 | | combined. Those lesser rates shall not be deemed to violate |
| 14 | | Section 7-204 or any other provision of this Act if they affect |
| 15 | | the cumulative base rates of the large public utility's |
| 16 | | existing rate payers in the district or tariff by less than |
| 17 | | 2.5%. |
| 18 | | (i) Any post-acquisition improvements made by the large |
| 19 | | public utility in the water or sewer utility shall accrue a |
| 20 | | cost for financing set at the large public utility's |
| 21 | | determined rate for allowance for funds used during |
| 22 | | construction, inclusive of the debt, equity, and income tax |
| 23 | | gross up components, after the date on which the expenditure |
| 24 | | was incurred by the large public utility until the investment |
| 25 | | has been in service for a 4-year period or, if sooner, until |
| 26 | | the time the rates are implemented in the large public |
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| 1 | | utility's next rate case. |
| 2 | | Any post-acquisition improvements made by the large public |
| 3 | | utility in the water or sewer utility shall not be depreciated |
| 4 | | for ratemaking purposes from the date on which the expenditure |
| 5 | | was incurred by the large public utility until the investment |
| 6 | | has been in service for a 4-year period or, if sooner, until |
| 7 | | the time the rates are implemented in the large public |
| 8 | | utility's next rate case. |
| 9 | | (j) This Section shall be exclusively applied to large |
| 10 | | public utilities in the voluntary and mutually agreeable |
| 11 | | acquisition of water or sewer utilities. Any petitions filed |
| 12 | | with the Commission related to the acquisitions described in |
| 13 | | this Section, including petitions seeking approvals or |
| 14 | | certificates required by this Act, shall be deemed approved |
| 15 | | unless the Commission issues its final order within 11 months |
| 16 | | after the date the large public utility filed its initial |
| 17 | | petition. This Section shall only apply to utilities providing |
| 18 | | water or sewer service and shall not be construed in any manner |
| 19 | | to apply to electric corporations, natural gas corporations, |
| 20 | | or any other utility subject to this Act. |
| 21 | | (k) Nothing in this Section shall prohibit a party from |
| 22 | | declining to proceed with an acquisition or be deemed as |
| 23 | | establishing the final purchase price of an acquisition. |
| 24 | | (l) In the Commission's order that approves the large |
| 25 | | utility's acquisition of the water or sewer utility, the |
| 26 | | Commission shall address each aspect of the acquisition |
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| 1 | | transaction for which approval is required under the Act. |
| 2 | | (m) Any contractor or subcontractor that performs work on |
| 3 | | a water or sewer utility acquired by a large public utility |
| 4 | | under this Section shall be a responsible bidder as described |
| 5 | | in Section 30-22 of the Illinois Procurement Code. The |
| 6 | | contractor or subcontractor shall submit evidence of meeting |
| 7 | | the requirements to be a responsible bidder as described in |
| 8 | | Section 30-22 to the water or sewer utility. Any new water or |
| 9 | | sewer facility built as a result of the acquisition shall |
| 10 | | require the contractor to enter into a project labor |
| 11 | | agreement. The large public utility acquiring the water or |
| 12 | | sewer utility shall offer employee positions to qualified |
| 13 | | employees of the acquired water or sewer utility. |
| 14 | | (n) This Section is repealed on June 1, 2028. |
| 15 | | (Source: P.A. 102-149, eff. 1-1-22.) |
| 16 | | Section 15. The Eminent Domain Act is amended by changing |
| 17 | | Section 10-5-10 as follows: |
| 18 | | (735 ILCS 30/10-5-10) (was 735 ILCS 5/7-102) |
| 19 | | Sec. 10-5-10. Parties. |
| 20 | | (a) When the right (i) to take private property for public |
| 21 | | use, without the owner's consent, (ii) to construct or |
| 22 | | maintain any public road, railroad, plankroad, turnpike road, |
| 23 | | canal, or other public work or improvement, or (iii) to damage |
| 24 | | property not actually taken has been or is conferred by |
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| 1 | | general law or special charter upon any corporate or municipal |
| 2 | | authority, public body, officer or agent, person, |
| 3 | | commissioner, or corporation and when (i) the compensation to |
| 4 | | be paid for or in respect of the property sought to be |
| 5 | | appropriated or damaged for the purposes mentioned cannot be |
| 6 | | agreed upon by the parties interested, (ii) the owner of the |
| 7 | | property is incapable of consenting, (iii) the owner's name or |
| 8 | | residence is unknown, or (iv) the owner is a nonresident of the |
| 9 | | State, then the party authorized to take or damage the |
| 10 | | property so required, or to construct, operate, and maintain |
| 11 | | any public road, railroad, plankroad, turnpike road, canal, or |
| 12 | | other public work or improvement, may apply to the circuit |
| 13 | | court of the county where the property or any part of the |
| 14 | | property is situated, by filing with the clerk a complaint. |
| 15 | | The complaint shall set forth, by reference, (i) the |
| 16 | | complainant's authority in the premises, (ii) the purpose for |
| 17 | | which the property is sought to be taken or damaged, (iii) a |
| 18 | | description of the property, and (iv) the names of all persons |
| 19 | | interested in the property as owners or otherwise, as |
| 20 | | appearing of record, if known, or if not known stating that |
| 21 | | fact; and shall pray the court to cause the compensation to be |
| 22 | | paid to the owner to be assessed. |
| 23 | | (b) If it appears that any person not in being, upon coming |
| 24 | | into being, is, or may become or may claim to be, entitled to |
| 25 | | any interest in the property sought to be appropriated or |
| 26 | | damaged, the court shall appoint some competent and |
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| 1 | | disinterested person as guardian ad litem to appear for and |
| 2 | | represent that interest in the proceeding and to defend the |
| 3 | | proceeding on behalf of the person not in being. Any judgment |
| 4 | | entered in the proceeding shall be as effectual for all |
| 5 | | purposes as though the person was in being and was a party to |
| 6 | | the proceeding. |
| 7 | | (c) If the proceeding seeks to affect the property of |
| 8 | | persons under guardianship, the guardians shall be made |
| 9 | | parties defendant. |
| 10 | | (d) Any interested persons whose names are unknown may be |
| 11 | | made parties defendant by the same descriptions and in the |
| 12 | | same manner as provided in other civil cases. |
| 13 | | (e) When the property to be taken or damaged is a common |
| 14 | | element of property subject to a declaration of condominium |
| 15 | | ownership, pursuant to the Condominium Property Act, or of a |
| 16 | | common interest community, the complaint shall name the unit |
| 17 | | owners' association in lieu of naming the individual unit |
| 18 | | owners and lienholders on individual units. Unit owners, |
| 19 | | mortgagees, and other lienholders may intervene as parties |
| 20 | | defendant. For the purposes of this Section, "common interest |
| 21 | | community" has the same meaning as set forth in subsection (c) |
| 22 | | of Section 9-102 of the Code of Civil Procedure. "Unit owners' |
| 23 | | association" or "association" shall refer to both the |
| 24 | | definition contained in Section 2 of the Condominium Property |
| 25 | | Act and subsection (c) of Section 9-102 of the Code of Civil |
| 26 | | Procedure. |
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| 1 | | (f) When the property is sought to be taken or damaged by |
| 2 | | the State for the purposes of establishing, operating, or |
| 3 | | maintaining any State house or State charitable or other |
| 4 | | institutions or improvements, the complaint shall be signed by |
| 5 | | the Governor, or the Governor's designee, or as otherwise |
| 6 | | provided by law. |
| 7 | | (g) No property, except property described in Section 3 of |
| 8 | | the Sports Stadium Act, property to be acquired in furtherance |
| 9 | | of actions under Article 11, Divisions 124, 126, 128, 130, |
| 10 | | 135, 136, and 139, of the Illinois Municipal Code, property to |
| 11 | | be acquired in furtherance of actions under Section 3.1 of the |
| 12 | | Intergovernmental Cooperation Act, property to be acquired |
| 13 | | that is a water system or waterworks pursuant to the home rule |
| 14 | | powers of a unit of local government, property described as |
| 15 | | Site B in Section 2 of the Metropolitan Pier and Exposition |
| 16 | | Authority Act, and property that may be taken as provided in |
| 17 | | the Public-Private Agreements for the South Suburban Airport |
| 18 | | Act belonging to a railroad or other public utility subject to |
| 19 | | the jurisdiction of the Illinois Commerce Commission, may be |
| 20 | | taken or damaged, pursuant to the provisions of this Act, |
| 21 | | without the prior approval of the Illinois Commerce |
| 22 | | Commission. |
| 23 | | (h) Notwithstanding subsection (g), property belonging to |
| 24 | | a public utility that provides water or sewer service and that |
| 25 | | is subject to the jurisdiction of the Illinois Commerce |
| 26 | | Commission may not be taken or damaged by eminent domain |
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| 1 | | without prior approval of the Illinois Commerce Commission, |
| 2 | | except for: (1) property to be acquired under subsection (a-5) |
| 3 | | or (a-10) of Section 11-124-5 of the Illinois Municipal Code; |
| 4 | | and (2) property to be acquired by a municipality with 140,000 |
| 5 | | or more inhabitants or a regional water commission formed |
| 6 | | under Article 11, Division 135.5 of the Illinois Municipal |
| 7 | | Code or a municipality that is a member of such a regional |
| 8 | | water commission, only in furtherance of purposes authorized |
| 9 | | under Article 11, Division 135.5 of the Illinois Municipal |
| 10 | | Code, and limited solely to interests in real property and not |
| 11 | | improvements to or assets on the real property belonging to a |
| 12 | | public utility that provides water or sewer service and that |
| 13 | | is subject to the jurisdiction of the Illinois Commerce |
| 14 | | Commission. This subsection does not apply to any action |
| 15 | | commenced prior to the effective date of this amendatory Act |
| 16 | | of the 103rd General Assembly under this Section or Section |
| 17 | | 11-124-5 or 11-139-12 of the Illinois Municipal Code. |
| 18 | | (Source: P.A. 103-13, eff. 6-9-23.)". |