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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$500nor more than $50,000$2,000for 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.