HB4333 94TH GENERAL ASSEMBLY

LRB094 16381 MKM 51633 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4333

Introduced 12/29/2005, by Rep. Renee Kosel

SYNOPSIS AS INTRODUCED:

65 ILCS 5/11-124-5 new
220 ILCS 5/8-302.5 new
220 ILCS 5/8-303.5 new
220 ILCS 5/8-303.9 new
220 ILCS 5/9-220.2
220 ILCS 5/9-220.5 new
220 ILCS 5/9-220.7 new

Amends the Illinois Municipal Code. Provides that, if any individual or entity, including a public utility, maintains and operates a water or sewer system that (i) is partially or entirely within the boundaries of a municipality or (ii) serves a municipality, then that individual or entity shall not convey, transfer, lease, or otherwise dispose of any interest in the water or sewer system unless the individual or entity offers the municipality a right of first refusal to acquire that interest on the same terms and conditions. Requires the offer to be delivered to the municipal clerk and requires the corporate authorities of the municipality either to accept or reject the offer within 30 days after it is received by the municipal clerk. Amends the Public Utilities Act. Provides that if a public utility charges a flat fee for water service, then the public utility is prohibited from charging any other customer for the use of the same water service. Provides that, 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. Provides that, if a public utility furnishing water service measures individual consumption by meter, then the meter must be inspected and certified by an independent inspector approved by the Commission. Requires all existing meters to be inspected and certified within 18 months after the effective date of the amendatory Act and all new meters to be inspected and certified upon installation. Requires the inspector to file with the Commission a report detailing the operation of each inspected meter. Provides that, if a water or sewer public utility files a surcharge to adjust rates and charges to provide for recovery of certain costs, then the Illinois Commerce Commission must not authorize the surcharge in an amount that is greater than the surcharge the utility filed. Prohibits a public utility from filing a surcharge in an amount that is greater than its actual costs. Prohibits a public utility that provides water and sewer service from charging a customer for sewer service in any billing period in which the customer uses less than 100 gallons of water. Requires each public utility that provides water and sewer service to offer separate rates for water and sewer service to any customer who uses separate meters to measure those services. 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 Illinois Municipal Code is amended by adding Section 11-124-5 as follows:

(65 ILCS 5/11-124-5 new)

Sec. 11-124-5. Right of first refusal for water or sewer system. If any individual or entity, including a public utility, maintains and operates a water or sewer system that (i) is partially or entirely within the boundaries of a municipality or (ii) serves a municipality, then that individual or entity shall not convey, transfer, lease, or otherwise dispose of any interest in the water or sewer system unless the individual or entity offers the municipality a right of first refusal to acquire that interest on the same terms and conditions. The offer must be delivered to the municipal clerk. The corporate authorities of the municipality must either accept or reject the offer within 30 days after it is received by the municipal clerk.

Section 10. The Public Utilities Act is amended by adding Sections 8-302.5, 8-303.5, 8-303.9, 9-220.5, and 9-220.7 and by changing Section 9-220.2 as follows:

(220 ILCS 5/8-302.5 new)

Sec. 8-302.5. Unmetered water. If a public utility charges any customer a flat fee for water service, then the public utility is prohibited from charging any other customer for the same water service.

(220 ILCS 5/8-303.5 new)

Sec. 8-303.5. Meter malfunction. 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.

(220 ILCS 5/8-303.9 new)

Sec. 8-303.9. Water meter certification. If a public utility furnishing water service measures individual consumption by meter, then the meter must be inspected and certified by an independent inspector approved by the Commission. The inspector must inspect and certify all existing meters within 18 months after the effective date of this amendatory Act of the 94th General Assembly and must inspect and certify all meters installed on or after the effective date of this amendatory Act of the 94th General Assembly upon installation. The inspector must file with the Commission a report detailing the operation of each inspected meter.

(220 ILCS 5/9-220.2)

Sec. 9-220.2. Water and sewer surcharges authorized.

(a) The Commission may authorize a water or sewer utility to file a surcharge which adjusts rates and charges to provide for recovery of (i) the cost of purchased water, (ii) the cost of purchased sewage treatment service, (iii) other costs which fluctuate for reasons beyond the utility's control or are difficult to predict, or (iv) costs associated with an investment in qualifying infrastructure plant, independent of any other matters related to the utility's revenue requirement. A surcharge approved under this Section can operate on an historical or a prospective basis. If a water or sewer public utility files a surcharge to adjust rates and charges under this Section, then the Commission must not authorize the surcharge in an amount that is greater than the surcharge the utility filed. In addition, the public utility is prohibited from filing a surcharge in an amount greater its actual costs.

(b) For purposes of this Section, "costs associated with an investment in qualifying infrastructure plant" include a return on the investment in and depreciation expense related to plant items or facilities (including, but not limited to, replacement mains, meters, services, and hydrants) which (i) are not reflected in the rate base used to establish the utility's base rates and (ii) are non-revenue producing. For purposes of this Section, a "non-revenue producing facility" is one that is not constructed or installed for the purpose of serving a new customer.

(c) On a periodic basis, the Commission shall initiate hearings to reconcile amounts collected under each surcharge authorized pursuant to this Section with the actual prudently incurred costs recoverable for each annual period during which the surcharge was in effect.

(Source: P.A. 91-638, eff. 1-1-00.)

(220 ILCS 5/9-220.5 new)

Sec. 9-220.5. Water and sewer utilities; low usage. Notwithstanding any other provision of law to the contrary, if in any billing period, a public utility provides water and sewer service to a customer who uses less than 100 gallons of water, then the public utility must not charge the customer for sewer service for that 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 customer who uses separate meters to measure each of those services. In order for the separate rate to apply, the water meter must not measure the use of water that reaches the sewer system and the sewer meter must measure only the use of water that reaches the sewer system.

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