summary
Introduced
02/04/2025
02/04/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Public Utilities Act. Provides that 20% of the lesser of (rather than the lesser of): (i) the purchase price or (ii) the fair market value shall constitute the rate base associated with the water or sewer utility as acquired by and incorporated into the rate base of the district designated by the acquiring large public utility, subject to any adjustments that the Illinois Commerce Commission deems necessary to ensure such rate base reflects prudent and useful investments in the provision of public utility service. Provides that the difference between the rate base and the purchase price or fair market value shall be borne by the shareholders of the acquiring large public utility. In provisions concerning the acquisition of a water or sewer utility, provides that, at the next election following the public meeting and notice requirements, a referendum shall be placed on the ballot for all electors within the area the water or sewer utility operates. Provides that, if a majority of the electors voting on the referendum within the service area of the water or sewer utility vote in favor of the referendum, then the acquisition may continue. Provides that, if less than a majority of the electors voting on the referendum within the service area of the water or sewer utility vote in favor of the referendum, the Commission shall not approve the large public utility's acquisition of the water or sewer utility.
AI Summary
This bill amends the Public Utilities Act to modify how water and sewer utility acquisitions are handled in Illinois. Specifically, when a large public utility (defined as an investor-owned utility serving more than 15,000 customer connections) acquires a smaller water or sewer utility, only 20% of the lesser of the purchase price or fair market value will be incorporated into the utility's rate base, with the remaining difference to be borne by the utility's shareholders. The bill introduces a new mandatory referendum requirement for public water and sewer utility acquisitions, where if the utility is owned by the state or a political subdivision, a ballot measure must be placed before voters in the service area at the next election. If a majority of voters do not approve the acquisition, the Illinois Commerce Commission cannot approve the transaction. The bill also establishes detailed appraisal procedures, requiring three independent appraisals to determine the fair market value of the utility being acquired, with specific qualifications for the appraisers. Additionally, the legislation provides protections for customers by ensuring that rates for the acquired utility will not cause significant increases to customer bills and allows for potential rate reductions to maintain affordability.
Committee Categories
Agriculture and Natural Resources, Transportation and Infrastructure
Sponsors (1)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
Bill Topics
Banking, Finance, and Domestic Commerce
- ‐ General Banking, Finance, and Domestic Commerce
Civil Rights, Minority Issues, and Civil Liberties
- ‐ Voting Rights and Issues
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2712&GAID=18&DocTypeID=HB&SessionID=114&GA=104 | 02/04/2025 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB2712.htm | 02/04/2025 |
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