97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1590

 

Introduced 2/9/2011, by Sen. Antonio Muņoz

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/9-220.2

    Amends the Public Utilities Act. Provides that the Illinois Commerce Commission shall authorize a water or sewer utility to file a surcharge that adjusts rates and charges to provide for recovery of the costs of any increase in the water or sewer utility's gross receipts tax rate set forth in a certain provision of the Act, federal income tax rate, or State income tax rate. Provides that the Commission shall review and, by order, approve or approve as modified the surcharge within 180 days after the date on which it is filed.


LRB097 09163 ASK 49298 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1590LRB097 09163 ASK 49298 b

1    AN ACT concerning public utilities.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by adding
5Section 9-220.2 as follows:
 
6    (220 ILCS 5/9-220.2)
7    Sec. 9-220.2. Water and sewer surcharges authorized.
8    (a) The Commission may authorize a water or sewer utility
9to file a surcharge which adjusts rates and charges to provide
10for recovery of (i) the cost of purchased water, (ii) the cost
11of purchased sewage treatment service, (iii) other costs which
12fluctuate for reasons beyond the utility's control or are
13difficult to predict, or (iv) costs associated with an
14investment in qualifying infrastructure plant, independent of
15any other matters related to the utility's revenue requirement.
16A surcharge approved under this Section can operate on an
17historical or a prospective basis.
18    (a-5) The Commission shall authorize a water or sewer
19utility to file a surcharge that adjusts rates and charges to
20provide for recovery of the costs of any increase in the water
21or sewer utility's gross receipts tax rate set forth in Section
222-202 of this Act, federal income tax rate, or State income tax
23rate.

 

 

SB1590- 2 -LRB097 09163 ASK 49298 b

1    (b) For purposes of this Section, "costs associated with an
2investment in qualifying infrastructure plant" include a
3return on the investment in and depreciation expense related to
4plant items or facilities (including, but not limited to,
5replacement mains, meters, services, and hydrants) which (i)
6are not reflected in the rate base used to establish the
7utility's base rates and (ii) are non-revenue producing. For
8purposes of this Section, a "non-revenue producing facility" is
9one that is not constructed or installed for the purpose of
10serving a new customer.
11    (c) On a periodic basis, the Commission shall initiate
12hearings to reconcile amounts collected under each surcharge
13authorized pursuant to this Section with the actual prudently
14incurred costs recoverable for each annual period during which
15the surcharge was in effect. In the case of a surcharge for the
16recovery of costs under subsection (a-5) of this Section, the
17Commission shall review and, by order, approve or approve as
18modified the surcharge within 180 days after the date on which
19the utility filed under this Section.
20(Source: P.A. 91-638, eff. 1-1-00.)