Illinois General Assembly - Full Text of HB1472
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Full Text of HB1472  102nd General Assembly


Rep. Lawrence Walsh, Jr.

Filed: 4/20/2021





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2    AMENDMENT NO. ______. Amend House Bill 1472, AS AMENDED,
3with reference to page and line numbers of House Amendment No.
41, as follows:
5on page 66, line 13, by replacing "Section 45-8" with
6"Sections 45-8 and 45-9"; and
7on page 67, immediately below line 1, by inserting the
9    "(5 ILCS 100/5-45.9 new)
10    Sec. 5-45.9. Emergency rulemaking; Public Utilities Act.
11To provide for the expeditious and timely implementation of
12changes made to the Public Utilities Act by this amendatory
13Act of the 102nd General Assembly, emergency rules
14implementing the changes made to the Public Utilities Act by
15this amendatory Act of the 102nd General Assembly may be



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1adopted in accordance with Section 5-45 by the Illinois
2Commerce Commission. The adoption of emergency rules
3authorized by Section 5-45 and this Section is deemed to be
4necessary for the public interest, safety, and welfare.
5    This Section is repealed on January 1, 2026."; and
6on page 246, by replacing lines 22 through 24 with "and 16-123
7and by adding Sections 4-701, 4-702, 8-106, 8-107, 8-108,
88-218, 8-402.2, 8-411, 8-511.1, 8-512, 8-514, 9-201.1,
99-201.2, 9-228, 9-232, 9-247, 16-108.13, 16-131, and 16-140 as
10follows:"; and
11on page 246, immediately below line 24, by inserting the
13    "(220 ILCS 5/4-701 new)
14    Sec. 4-701. Electric Utility Independent Monitor.
15    (a) It is the policy of this State to ensure public
16utilities adhere to the highest standards of ethical conduct.
17Recent events have demonstrated that at least one public
18utility in this State has not adhered to the standards of
19conduct expected by the State, and as such, has breached the
20public trust. The General Assembly finds this offensive
21conduct warrants a response that ensures transparency and
22ethical standards are adhered to. The General Assembly
23therefore declares its intent to impose heightened scrutiny



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1and rigorous standards to increase transparency and ensure
2ethics compliance. Further, it is the intent of the General
3Assembly to remediate public utility wrongdoing and penalize
5    (b) This Section applies to electric public utilities
6serving more than 3,000,000 retail customers in the State for
7the duration of any deferred prosecution agreement, pending
8criminal charges, ongoing criminal investigation, and term of
9criminal penalties against the public utility or any of its
10officers or former officers.
11    (c) Within 60 days after the effective date of this
12amendatory Act of the 102nd General Assembly, the Commission
13shall begin the process of creating the position of Electric
14Utility Independent Monitor. The responsibilities of the
15Electric Utility Independent Monitor shall include the
17        (1) developing and publishing annual ethics audits of
18    electric public utilities serving more than 3,000,000
19    retail customers in the State;
20        (2) hiring additional staff or contract entities as
21    necessary to fulfill the obligations of this Section;
22        (3) developing a public reporting system to record
23    each and every communication, including who was present,
24    the subject matter discussed, materials provided or
25    discussed, whether the meeting was in-person, via video,
26    or telephonic, and the date and time of the communication,



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1    between a representative, employee, officer, or executive
2    of an electric public utility and a Commissioner,
3    representative, employee, or staff of the Commission;
4        (4) overseeing an electric public utility's compliance
5    with the standards described by statute, rule, or court
6    order regarding standards of ethical conduct;
7        (5) working in coordination with an electric public
8    utility's highest officer responsible for compliance and
9    ethics, such as a Chief Compliance and Ethics Officer, to
10    ensure the utility complies with ethics standards provided
11    by law, rule, and any other applicable authority, through
12    investigation, enforcement, reporting, and disciplinary
13    activities, including fines;
14        (6) documenting violations of statutes, rules, court
15    order, internal controls, Commission orders, or other
16    applicable authority regarding ethics and transparency and
17    ensure appropriate internal disciplinary actions are taken
18    and the violation is reported to the Commission when
19    appropriate;
20        (7) filing reports with the Commission of each and
21    every event where an electric public utility has not taken
22    disciplinary action for a violation of statutes, rules,
23    court order, internal controls, Commission orders, or
24    other applicable authority regarding ethics and
25    transparency, or where the public utility does not take a
26    disciplinary action that aligns with the recommendation of



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1    the Electric Utility Independent Monitor;
2        (8) recommending to the Commission that it adopt new
3    internal controls, policies, practices, or procedures to
4    apply to an electric public utility to ensure compliance
5    with statute, rule, court order, or other applicable
6    authority;
7        (9) publishing an annual ethics audit for an electric
8    public utility subject to this Section describing the
9    electric public utility's internal controls, policies,
10    practices, and procedures to comply with statutes, rules,
11    court orders, or other applicable authority; this report
12    should also include a record of any disciplinary actions
13    taken related to unethical conduct as well as any
14    recommendations the Electric Utility Independent Monitor
15    has made and the public utility's response;
16        (10) detailing deficiencies in a report to the
17    Commission and the General Assembly that shall include a
18    recommendation for Commission action if the Electric
19    Utility Independent Monitor finds that an electric public
20    utility has not complied with standards set forth by law,
21    rules, or by other applicable authority; and
22        (11) monitoring, auditing, and subpoenaing all records
23    necessary for the Electric Utility Independent Monitor to
24    meet the responsibilities described in this Section and
25    related rules, including, but not limited to, contracts
26    with third party entities, accounting records,



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1    communication with public officials or their staff,
2    lobbying activities, expenses on lobbyists and
3    consultants, legal expenses, and internal compliance
4    policies.
5    (d) An electric public utility subject to this Section
6shall remit amounts necessary for the Commission to pay the
7wages, overhead, travel expenses, and other costs of the
8Electric Utility Independent Monitor and staff as determined
9by the Commission.
10    (e) An electric public utility's cost of compliance with
11this Section is not a cost of service and shall not be
12recoverable in rates.
13    (f) Where an electric public utility is the subject of a
14federal or State criminal investigation or where the
15Commission initiates an investigation of an ethics violation,
16the utility's costs related to such investigation are not a
17cost of service and shall not be recoverable in rates.
18    (g) The Commission shall have the authority to retain an
19independent third party to serve as the Electric Utility
20Independent Monitor pursuant to this Section.
21    (h) The Commission shall have the authority to create
22rules and emergency rules where applicable to implement this
24    (220 ILCS 5/4-702 new)
25    Sec. 4-702. Electric utility audit.



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1    (a) Within 30 days after the effective date of this
2amendatory Act of the 102nd General Assembly, the Commission
3may begin the process of contracting with a third party or
4hiring additional personnel as needed to conduct an audit
5pursuant to this Section.
6    (b) The Commission shall conduct an audit of all electric
7systems investments made by a participating utility, other
8than a combination utility. This audit shall include a review
10        (1) system upgrade costs and intended benefits;
11        (2) whether the investment was part of the
12    participating utility's investment obligations under
13    subsection (b) of Section 16-108.5 of this Act;
14        (3) benefits to ratepayers;
15        (4) efficiencies gained as a result of investments
16    made by the participating utility;
17        (5) steps taken to minimize costs to consumers; and
18        (6) any other information the Commission determines is
19    necessary to analyze the costs and benefits of these smart
20    grid electric systems upgrades.
21    (c) The Commission must prepare and file a final report
22with the General Assembly analyzing the costs and benefits of
23the smart meter program and other smart grid electric systems
24upgrades no later than 2 years after the effective date of this
25amendatory Act of the 102nd General Assembly.
26    (d) The Commission is authorized to monitor, audit, and



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1subpoena all records necessary to meet responsibilities
2described in this Section.
3    (e) An electric public utility subject to this Section
4shall remit amounts necessary for the Commission to pay the
5wages, contract costs, overhead, travel expenses, and other
6costs incurred to meet the responsibilities of this Section.
7The electric public utility's cost of compliance with this
8Section is not a cost of service shall not be recoverable in
9rates."; and
10on page 399, immediately below line 6, by inserting the
12    "(220 ILCS 5/9-228 new)
13    Sec. 9-228. Limits on public utility expenses. The
14Commission shall not consider any of the following as an
15expense of any public utility company, including any
16allocation of those costs to the public utility from an
17affiliate or corporate parent for the purpose of determining
18any rate or charge, any amount expended for:
19        (1) the pension or other post-employment benefits for
20    an employee convicted of committing a criminal act in the
21    course of his or her work with the utility;
22        (2) any severance or post-employment costs for an
23    employee convicted of committing a criminal act in the
24    course of his or her work with the utility; and



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1        (3) criminal penalties, fines, fees, and costs related
2    to criminal charges, criminal investigations, or deferred
3    prosecution agreements."; and
4on page 468, immediately below line 12, by inserting the
6    "(220 ILCS 5/16-131 new)
7    Sec. 16-131. Criminal penalty electric utility rebate.
8    (a) It is the policy of this State that ethical and
9criminal misconduct by electric utilities harms ratepayers by
10destroying public trust. The General Assembly finds it
11necessary to remediate harm caused by electric utilities by
12requiring that criminal penalties, or an amount equal to the
13criminal penalty paid by an electric utility, be rebated to
14ratepayers as restitution for the breach of public trust.
15    (b) Electric utilities shall rebate to ratepayers an
16amount equal to the total amount of penalties or fines paid to
17the State or federal government in the preceding 12 months as a
18result of a criminal investigation, criminal charge, or
19deferred prosecution agreement beginning in the year
20subsequent to the remittance of the penalty or fine. This
21rebate shall be amortized in the rates over a period of 3
23    (c) The rebate amount is not a cost of service and shall
24not be recoverable through rates.



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1    (d) The utility must file a rebate rider tariff with the
2Commission and any bill adjustment resulting from such rebate
3rider shall appear as a separate line item on the customer's
5    (e) An electric utility must submit all information
6regarding criminal fines, fees, and penalties annually to the
8    (f) The Commission shall have emergency rulemaking
9authority to implement this Section.".