[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 91-0069
HB0613 Enrolled LRB9102391JSpc
AN ACT to amend the Public Utilities Act by changing
Section 6-102.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Utilities Act is amended by
changing Section 6-102 as follows:
(220 ILCS 5/6-102) (from Ch. 111 2/3, par. 6-102)
Sec. 6-102. Authorization of issues of stock.
(a) Subject to the provisions of this Act and of the
order of the Commission issued as provided in this Act, a
public utility may issue stocks and stock certificates, and
bonds, notes and other evidences of indebtedness payable at
periods of more than 12 months after the date thereof for any
lawful purpose. However, such public utility shall first have
secured from the Commission an order authorizing such issue
and stating the amount thereof and the purpose or purposes to
which the issue or the proceeds thereof are to be applied,
and that in the opinion of the Commission, the money,
property or labor to be procured or paid for by such issue is
reasonably required for the purpose or purposes specified in
the order.
(b) The provisions of this subsection (b) shall apply
only to (1) any issuances of stock in a cumulative amount,
exclusive of any issuances referred to in item (3), that are
10% or more in a calendar year or 20% or more in a 24-month
period of the total common stockholders' equity or of the
total amount of preferred stock outstanding, as the case may
be, of the public utility, and (2) to any issuances of bonds,
notes or other evidences of indebtedness in a cumulative
principal amount, exclusive of any issuances referred to in
item (3), that are 10% or more in a calendar year or 20% or
more in a 24-month period of the aggregate principal amount
of bonds, notes and other evidences of indebtedness of the
public utility outstanding, all as of the date of the
issuance, but shall not apply to (3) any issuances of stock
or of bonds, notes or other evidences of indebtedness 90% or
more of the proceeds of which are to be used by the public
utility for purposes of refunding, redeeming or refinancing
outstanding issues of stock, bonds, notes or other evidences
of indebtedness. To enable it to determine whether it will
issue the order required by subsection (a) of this Section,
the Commission may hold a hearing and may make such
additional inquiry or investigation, and examine such
witnesses, books, papers, accounts, documents and contracts
and require the filing of such data as it may deem of
assistance. The public utility may be required by the
Commission to disclose every interest of the directors of
such public utility in any transaction under investigation.
The Commission shall have power to investigate all such
transactions and to inquire into the good faith thereof, to
examine books, papers, accounts, documents and contracts of
public utilities, construction or other companies or of firms
or individuals with whom the public utility shall have had
financial transactions, for the purpose of enabling it to
verify any statements furnished, and to examine into the
actual value of property acquired by or services rendered to
such public utility. Before issuing its order, the
Commission, when it is deemed necessary by the Commission,
shall make an adequate physical valuation of all property of
the public utility, but a valuation already made under proper
public supervision may be adopted, either in whole or in
part, at the discretion of the Commission; and shall also
examine all previously authorized or outstanding securities
of the public utility, and fixed charges attached thereto. A
statement of the results of such physical valuation, and a
statement of the character of all outstanding securities,
together with the conditions under which they are held, shall
be included in the order. The Commission may require that
such information or such part thereof as it thinks proper,
shall appear upon the stock, stock certificate, bond, note or
other evidence of indebtedness authorized by its order. The
Commission may by its order grant permission for the issue of
such stock certificates, or bonds, notes or other evidences
of indebtedness in the amount applied for, or in a lesser
amount, or not at all, and may attach to the exercise of its
permission such condition or conditions as it may deem
reasonable and necessary. Nothing in this Section shall
prevent a public utility from seeking, nor the Commission
from approving, a shelf registration plan for issuing
securities over a reasonable period in accordance with
regulations established by the United States Securities and
Exchange Commission. Any securities issued pursuant to an
approved shelf registration plan need not be further approved
by the Commission so long as they are in compliance with the
approved shelf registration plan. The Commission shall have
the power to refuse its approval of applications to issue
securities, in whole or in part, upon a finding that the
issue of such securities would be contrary to public
interest. The Commission may also require the public utility
to compile for the information of its shareholders such facts
in regard to its financial transactions, in such form as the
Commission may direct.
No public utility shall, without the consent of the
Commission, apply the issue of any stock or stock
certificates, or bond, note or other evidence of
indebtedness, which was issued pursuant to an order of the
Commission entered pursuant to this subsection (b), or any
part thereof, or any proceeds thereof, to any purpose not
specified in the Commission's order or to any purpose
specified in the Commission's order in excess of the amount
authorized for such purpose; or issue or dispose of the same
on any terms less favorable than those specified in such
order, or a modification thereof. The Commission shall have
the power to require public utilities to account for the
disposition of the proceeds of all sales of stocks and stock
certificates, and bonds, notes and other evidences of
indebtedness, which were issued pursuant to an order of the
Commission entered pursuant to this subsection (b), in such
form and detail as it may deem advisable, and to establish
such rules and regulations as it may deem reasonable and
necessary to insure the disposition of such proceeds for the
purpose or purposes specified in its order.
(c) A public utility may issue notes, for proper
purposes, and not in violation of any provision of this Act
or any other Act, payable at periods of not more than 12
months after the date of issuance of the same, without the
consent of the Commission; but no such note shall, in whole
or in part, be renewed or be refunded from the proceeds of
any other such note or evidence of indebtedness from time to
time without the consent of the Commission for an aggregate
period of longer than 2 years. A "telecommunications carrier"
as that term is defined by Section 13-202 of this Act is
exempt from the requirements of this subsection (c).
(d) Any issuance of stock or of bonds, notes or other
evidences of indebtedness, other than issuances of notes
pursuant to subsection (c) of this Section, which is not
subject to subsection (b) of this Section, shall be regulated
by the Commission as follows: the public utility shall file
with the Commission, at least 15 days before the date of the
issuance, an informational statement setting forth the type
and amount of the issue and the purpose or purposes to which
the issue or the proceeds thereof are to be applied. Prior
to the date of the issuance specified in the public utility's
filing, the Commission, if it finds that the issuance is not
subject to subsection (b) of this Section, shall issue a
written order in conformance with subsection (a) of this
Section authorizing the issuance. Notwithstanding any other
provisions of this Act, the Commission may delegate its
authority to enter the order required by this subsection (d)
to a hearing examiner.
(e) The Commission shall have no power to authorize the
capitalization of the right to be a corporation, or to
authorize the capitalization of any franchise, license, or
permit whatsoever or the right to own, operate or enjoy any
such franchise, license, or permit, in excess of the amount
(exclusive of any tax or annual charge) actually paid to the
State or to a political subdivision thereof as the
consideration for the grant of such franchise, license,
permit or right; nor shall any contract for consolidation or
lease be capitalized, nor shall any public utility hereafter
issue any bonds, notes or other evidences of indebtedness
against or as a lien, upon any contract for consolidation or
merger.
(f) The provisions of this Section shall not apply to
public utilities which are not corporations duly incorporated
under the laws of this State to the extent that any such
public utility may issue stock, bonds, notes or other
evidences of indebtedness not directly or indirectly
constituting or creating a lien or charge on, or right to
profits from, any property used or useful in rendering
service within this State. Nothing in this Section or in
Section 6-104 of this Act shall be construed to require a
common carrier by railroad subject to Part I of the
Interstate Commerce Act, being part of an Act of the 49th
Congress of the United States entitled "An Act to Regulate
Commerce", as amended, to secure from the Commission
authority to issue or execute or deliver any conditional
sales contract or similar contract or instrument reserving or
retaining title in the seller for all or part of the purchase
price of equipment or property used or to be used for or in
connection with the transportation of persons or property.
(Source: P.A. 90-561, eff. 12-16-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.
[ Top ]