State of Illinois
90th General Assembly
Legislation

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90_HB3714

      220 ILCS 5/4-304          from Ch. 111 2/3, par. 4-304
      220 ILCS 5/5-202          from Ch. 111 2/3, par. 5-202
      220 ILCS 5/7-102.5 new
          Amends the Public Utilities Act.  Provides that a  public
      utility  may  not engage in a nonutility business unless that
      business fully reimburses the public utility for any  funding
      or  support  provided  by  the  public utility.  Requires the
      Commerce Commission to study the effect of  subsidization  of
      nonutility businesses by public utilities upon ratepayers and
      to  include  the  results  in  its  annual report.  Increases
      penalties for violation of the Act.
                                                     LRB9010471JSmg
                                               LRB9010471JSmg
 1        AN ACT to amend the  Public  Utilities  Act  by  changing
 2    Sections 4-304 and 5-202 and adding Section 7-102.5.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.   The  Public  Utilities  Act  is  amended  by
 6    changing  Sections 4-304 and 5-202 and adding Section 7-102.5
 7    as follows:
 8        (220 ILCS 5/4-304) (from Ch. 111 2/3, par. 4-304)
 9        Sec. 4-304.  Beginning  in  1986,  the  Commission  shall
10    prepare  an  annual report which shall be filed by January 31
11    of each year with the Joint Committee on Legislative  Support
12    Services  of the General Assembly, the Public Counsel and the
13    Governor and which shall be publicly available.  Such  report
14    shall include:
15        (1)  a  general  review of agency activities and changes,
16    including:
17             (a)  a review of  significant  decisions  and  other
18        regulatory  actions  for  the preceding year, and pending
19        cases, and an analysis of the impact  of  such  decisions
20        and  actions,  and  potential  impact  of any significant
21        pending cases;
22             (b)  for  each  significant   decision,   regulatory
23        action  and  pending case, a description of the positions
24        advocated by major parties, including  Commission  staff,
25        and  for each such decision rendered or action taken, the
26        position adopted by the Commission and reason therefore;
27             (c)  a  description  of  the  Commission's   budget,
28        caseload, and staff levels, including specifically:
29                  (i)  a  breakdown  by type of case of the cases
30             resolved and filed during the year  and  of  pending
31             cases;
                            -2-                LRB9010471JSmg
 1                  (ii)  a  description  of  the allocation of the
 2             Commission's budget,  identifying  amounts  budgeted
 3             for each significant regulatory function or activity
 4             and  for  each department, bureau, section, division
 5             or office of the Commission and its employees;
 6                  (iii)  a  description   of   current   employee
 7             levels,  identifying any change occurring during the
 8             year in the number of employees, personnel  policies
 9             and    practices   or   compensation   levels;   and
10             identifying  the  number  and  type   of   employees
11             assigned  to each Commission regulatory function and
12             to each department,  bureau,  section,  division  or
13             office of the Commission;
14             (d)  a  description  of  any  significant changes in
15        Commission policies, programs or practices  with  respect
16        to  agency  organization and administration, hearings and
17        procedures or substantive regulatory activity;
18        (2)  a discussion and  analysis  of  the  state  of  each
19    utility  industry regulated by the Commission and significant
20    changes,  trends  and  developments  therein,  including  the
21    number and types of  firms  offering  each  utility  service,
22    existing, new and prospective technologies, variations in the
23    quality,  availability  and  price  for  utility  services in
24    different geographic  areas  of  the  State,  and  any  other
25    industry factors or circumstances which may affect the public
26    interest or the regulation of such industries;.
27        (3)  a   specific   discussion  of  the  energy  planning
28    responsibilities and activities of the Commission and  energy
29    utilities, including:
30             (a)  the extent to which conservation, cogeneration,
31        renewable  energy technologies and improvements in energy
32        efficiency are being utilized by  energy  consumers,  the
33        extent  to  which  additional  potential  exists  for the
34        economical  utilization   of   such   supplies,   and   a
                            -3-                LRB9010471JSmg
 1        description   of   existing  and  proposed  programs  and
 2        policies  designed  to   promote   and   encourage   such
 3        utilization;
 4             (b)  a  description  of  each energy plan filed with
 5        the Commission pursuant to the provisions  of  this  Act,
 6        and a copy, or detailed summary of the most recent energy
 7        plans adopted by the Commission; and
 8             (c)  a   discussion  of  the  powers  by  which  the
 9        Commission is implementing the planning  responsibilities
10        of Article VIII, including a description of the staff and
11        budget assigned to such function, the procedures by which
12        Commission   staff  reviews  and  analyzes  energy  plans
13        submitted by the utilities,  the  Department  of  Natural
14        Resources, and any other person or party;.
15        (4)  a discussion of the extent to which utility services
16    are available to all Illinois citizens including:
17             (a)  the   percentage   and  number  of  persons  or
18        households  requiring  each  such  service  who  are  not
19        receiving  such  service,  and  the  reasons   therefore,
20        including  specifically  the  number  of  such persons or
21        households who are unable to afford such service;
22             (b)  a  critical  analysis  of   existing   programs
23        designed  to  promote  and  preserve the availability and
24        affordability of utility services; and
25             (c)  an  analysis  of  the   financial   impact   on
26        utilities  and  other ratepayers of the inability of some
27        customers  or  potential  customers  to  afford   utility
28        service,  including  the number of service disconnections
29        and reconnections, and cost thereof and the dollar amount
30        of uncollectible accounts recovered through rates;.
31        (5)  a detailed description of the  means  by  which  the
32    Commission is implementing its new statutory responsibilities
33    under  this  Act,  and  the  status  of  such implementation,
34    including specifically:
                            -4-                LRB9010471JSmg
 1             (a)  Commission reorganization  resulting  from  the
 2        addition  of  an  Executive Director and hearing examiner
 3        qualifications and review.
 4             (b)  Commission  responsibilities  for  construction
 5        and rate supervision, including construction cost audits,
 6        management audits, excess capacity adjustments, phase-ins
 7        of new plant and the means and capability for  monitoring
 8        and   reevaluating   existing   or   future  construction
 9        projects.
10             (c)  promulgation   and   application    of    rules
11        concerning   ex   parte  communications,  circulation  of
12        recommended orders and transcription of closed meetings;.
13        (6)  a description of all appeals taken  from  Commission
14    orders,  findings  or decisions and the status and outcome of
15    such appeals;.
16        (7)  a description of  the  status  of  all  studies  and
17    investigations  required by this Act, including those ordered
18    pursuant to Sections 8-304, 9-242, 9-244 and 13-301  and  all
19    such subsequently ordered studies or investigations;.
20        (8)  a  discussion  of  new  or potential developments in
21    federal  legislation,  and  federal   agency   and   judicial
22    decisions relevant to State regulation of utility services;.
23        (9)  all   recommendations  for  appropriate  legislative
24    action by the General Assembly; and.
25        (10)  the results of the most current study of the effect
26    on ratepayers of subsidization of  nonutility  activities  by
27    public utilities.
28        The  Commission  may include such other information as it
29    deems  to  be  necessary  or  beneficial  in  describing   or
30    explaining its activities or regulatory responsibilities. The
31    report required by this Section shall be adopted by a vote of
32    the full Commission prior to filing.
33    (Source: P.A. 89-445, eff. 2-7-96.)
                            -5-                LRB9010471JSmg
 1        (220 ILCS 5/5-202) (from Ch. 111 2/3, par. 5-202)
 2        Sec.  5-202.  Any public utility or any corporation other
 3    than a public utility, which violates or fails to comply with
 4    any provisions of this Act, or which fails to  obey,  observe
 5    or   comply  with  any  order,  decision,  rule,  regulation,
 6    direction, or requirement or any part or  provision  thereof,
 7    of  the  Commission,  made  or issued under authority of this
 8    Act, in a case in which a penalty is not  otherwise  provided
 9    for  in this Act, shall be subject to a civil penalty imposed
10    in the manner provided in Section  4-203  of  not  less  than
11    $10,000  $500 nor more than $50,000 $2,000 for each and every
12    offense.
13        Every violation of the provisions of this Act or  of  any
14    order,  decision,  rule, regulation, direction or requirement
15    of the Commission, or any part  or  portion  thereof  by  any
16    corporation or person, is a separate and distinct offense and
17    in  case  of  a  continuing  violation each day's continuance
18    thereof shall be a separate and distinct offense.
19        In construing and enforcing the provisions  of  this  Act
20    relating  to  penalties, the act, omission, or failure of any
21    officer, agent, or employee  of  any  public  utility  acting
22    within  the scope of his official duties or employment, shall
23    in every case be deemed to be the act, omission,  or  failure
24    of such public utility.
25        If  the  party  who has violated or failed to comply with
26    this Act or order, decision, rule, regulation, direction,  or
27    requirement  of  the  Commission  or  any  part  or provision
28    thereof, fails to seek review pursuant to Sections 10-113 and
29    10-201 of this Act within 30 days of service  of  the  order,
30    the  party  shall, upon expiration of the 30 days, be subject
31    to the civil penalty provision of this Section.
32        No penalties shall accrue under this provision  until  15
33    days  after  the mailing of a notice to such party or parties
34    that they are in violation of or have failed to  comply  with
                            -6-                LRB9010471JSmg
 1    the  Act  or order, decision, rule, regulation, direction, or
 2    requirement of  the  Commission  or  any  part  or  provision
 3    thereof.
 4    (Source: P.A. 87-164.)
 5        (220 ILCS 5/7-102.5 new)
 6        Sec. 7-102.5.  Nonutility businesses.
 7        (a)  No  regulated  public utility may engage in carrying
 8    on any nonutility business in which it pays the costs for, or
 9    provides, support and equipment for the  nonutility  business
10    unless  there is full and complete reimbursement of the costs
11    of such support and equipment by the nonutility business.
12        (b)  A public utility shall report to the Commission each
13    year all sources of funding and resources used by  nonutility
14    businesses   of   the   public  utility  and  the  amount  of
15    reimbursement by nonutility businesses to the public  utility
16    for provision of funding and resources.
17        (c)  The  Commission shall study the effect on ratepayers
18    of public  utilities  resulting  from  the  subsidization  of
19    nonutility  businesses  by public utilities.  The study shall
20    be performed each  year  and  included  in  the  Commission's
21    annual report filed under Section 4-304.

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