Illinois General Assembly - Full Text of HB2721
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Full Text of HB2721  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 2/16/2023, by Rep. Dagmara Avelar


220 ILCS 5/9-220.2

    Amends the Public Utilities Act. In provisions concerning water and sewer surcharges, removes language allowing the Illinois Commerce Commission to authorize a water or sewer utility to file a surcharge which adjusts rates and charges to provide for recovery of costs associated with an investment in qualifying infrastructure plant. Makes a corresponding change.

LRB103 30333 AMQ 56763 b





HB2721LRB103 30333 AMQ 56763 b

1    AN ACT concerning regulation.
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 changing
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, or (iii) other costs
12which fluctuate for reasons beyond the utility's control or
13are difficult to predict, or (iv) costs associated with an
14investment in qualifying infrastructure plant, independent of
15any other matters related to the utility's revenue
16requirement. A surcharge approved under this Section can
17operate on an historical or a prospective basis.
18    (b) (Blank). For purposes of this Section, "costs
19associated with an investment in qualifying infrastructure
20plant" include a return on the investment in and depreciation
21expense related to plant items or facilities (including, but
22not limited to, replacement mains, meters, services, and
23hydrants) which (i) are not reflected in the rate base used to



HB2721- 2 -LRB103 30333 AMQ 56763 b

1establish the utility's base rates and (ii) are non-revenue
2producing. For purposes of this Section, a "non-revenue
3producing facility" is one that is not constructed or
4installed for the purpose of serving a new customer.
5    (c) On a periodic basis, the Commission shall initiate
6hearings to reconcile amounts collected under each surcharge
7authorized pursuant to this Section with the actual prudently
8incurred costs recoverable for each annual period during which
9the surcharge was in effect.
10(Source: P.A. 91-638, eff. 1-1-00.)