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91_HB0613
LRB9102391JSpc
1 AN ACT to amend the Public Utilities Act by changing
2 Section 5-104.
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 Section 5-104 as follows:
7 (220 ILCS 5/5-104) (from Ch. 111 2/3, par. 5-104)
8 Sec. 5-104. Depreciation accounts.
9 (a) The Commission shall have power, after hearing, to
10 require any or all public utilities, except electric public
11 utilities and telecommunications carriers as defined by
12 Section 13-202 of this Act, to keep such accounts as will
13 adequately reflect depreciation, obsolescence and the
14 progress of the arts. The Commission may, from time to time,
15 ascertain and determine and by order fix the proper and
16 adequate rate of depreciation of the several classes of
17 property for each public utility; and each public utility
18 shall conform its depreciation accounts to the rates so
19 ascertained, determined and fixed.
20 (b) The Commission shall have the power, after hearing,
21 to require any or all electric public utilities and
22 telecommunications carriers to keep such accounts as will
23 adequately reflect depreciation, obsolescence, and the
24 progress of the arts. The Commission may, from time to time,
25 ascertain and determine and by order fix the proper and
26 adequate rate of depreciation of the several classes of
27 property for each electric public utility and
28 telecommunications carrier; and each electric public utility
29 and telecommunications carrier shall thereafter, absent
30 further order of the Commission, conform its depreciation
31 accounts to the rates so ascertained, determined and fixed
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1 until at least the end of the first full calendar year
2 following the date of such determination.
3 (c) An electric public utility or a telecommunications
4 carrier may from time to time alter the annual rates of
5 depreciation, which for purposes of this subsection (c) and
6 subsection (d) shall include amortization, that it applies to
7 its several classes of assets so long as the rates are
8 consistent with generally accepted accounting principles.
9 The electric public utility or telecommunications carrier
10 shall file a statement with the Commission which shall set
11 forth the new rates of depreciation and which shall contain a
12 certification by an independent certified public accountant
13 that the new rates of depreciation are consistent with
14 generally accepted accounting principles. Upon the filing of
15 such statement, the new rates of depreciation shall be deemed
16 to be approved by the Commission as the rates of depreciation
17 to be applied thereafter by the electric public utility or
18 telecommunications carrier as though an order had been
19 entered pursuant to subsection (b).
20 (d) In any proceeding conducted pursuant to Section
21 9-201 or 9-202 to set an electric public utility's or
22 telecommunications carrier's rates for service, the
23 Commission may determine not to use, in determining the
24 depreciation expense component of the electric public
25 utility's or telecommunications carrier's rates for service,
26 the rates of depreciation established pursuant to subsection
27 (c), if the Commission in that proceeding finds based on the
28 record that different rates of depreciation are required to
29 adequately reflect depreciation, obsolescence and the
30 progress of the arts, and fixes by order and uses for
31 purposes of that proceeding new rates of depreciation to be
32 thereafter employed by the electric public utility or
33 telecommunications carrier until the end of the first full
34 calendar year following the date of the determination and
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1 thereafter until altered in accordance with subsection (b) or
2 (c) of this Section.
3 (Source: P.A. 90-561, eff. 12-16-97.)
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.