summary
Introduced
02/02/2026
02/02/2026
In Committee
02/10/2026
02/10/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Creates the Municipal Water System Repurchase Act. Provides that a municipality may repurchase an investor-owned utility if the municipality finds that (1) the investor-owned utility is repeatedly non-compliant with the service quality standards mandated by the Illinois Commerce Commission; (2) water or wastewater service rates charged by the investor-owned utility have increased beyond the rate of inflation without corresponding improvements in service quality; or (3) a majority of the electorate in the municipality votes in favor of repurchase in a binding referendum. Provides that, if a municipality adopts an ordinance to repurchase an investor-owned utility, then the municipality shall provide written notice to (1) the investor-owned utility; (2) the Illinois Commerce Commission; and (3) all affected customers. Provides that a municipality may not repurchase an investor-owned utility unless (i)the municipality files a petition with the Illinois Commerce Commission and (ii) the Illinois Commerce Commission approves the petition. Provides that the Illinois Commerce Commission may approve the repurchase if it finds that (1) the municipality has complied with notice and hearing requirements; (2) the municipality used a reasonable method to determine the value of the investor-owned utility; (3) the repurchase of the investor-owned utility shall not cause unreasonable harm to customers or service continuity; and (4) the transition plan provides for uninterrupted utility service. Provides that, if the Illinois Commerce Commission approves a municipality's petition to repurchase an investor-owned utility, then the investor-owned utility shall transfer all facilities, records, and customer accounts to the municipality or its designated public entity. Provides that the purchase price for any system repurchased shall be determined by the fair market value of the system, including all physical assets and customer accounts, less depreciation, as determined by an independent valuation agreed upon by the parties or ordered by the Illinois Commerce Commission.
AI Summary
This bill, titled the Municipal Water System Repurchase Act, establishes a process for municipalities to buy back water or wastewater systems from investor-owned utilities, which are private companies regulated by the Illinois Commerce Commission (ICC). A municipality can initiate a repurchase if the investor-owned utility repeatedly fails to meet service quality standards set by the ICC, if its rates have increased significantly without improved service, or if a majority of local voters approve it in a referendum. If a municipality decides to repurchase, it must notify the utility, the ICC, and affected customers, and hold a public hearing. The municipality then needs to file a petition with the ICC, which will review it to ensure proper procedures were followed, the utility's value was reasonably determined, the repurchase won't harm customers or service continuity, and a plan is in place for uninterrupted service. If the ICC approves, the utility must transfer its facilities, records, and customer accounts, and the purchase price will be based on the system's fair market value, determined by an independent valuation.
Committee Categories
Agriculture and Natural Resources
Sponsors (1)
Last Action
Assigned to Energy and Public Utilities (on 02/10/2026)
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