Section 300.APPENDIX A   Statement of Information from the Illinois Commerce Commission Concerning Acquisition of Rights-of-Way by Illinois Utilities

            A representative of a public utility is contacting you for the purpose of negotiating with you concerning the acquisition of a land right-of-way for utility purposes over property which you own or in which you have an interest as an owner.  This right-of-way is proposed to be used for the purpose of constructing, operating and maintaining certain facilities of the utility on your land, as set forth in the accompanying letter.  This project will be further explained in detail to you by the utility representative who meets with you concerning this proposal.

            The purpose of this Statement is to provide you with general information concerning the initial procedures involved.  This Statement covers several questions commonly asked of the Illinois Commerce Commission staff by landowners.

            This Statement is not a legal opinion concerning your rights under the law or the rules and regulations of the Commission nor is it a detailed analysis of the procedures involved.  If you have any questions concerning your legal rights, you may wish to consult an attorney.

            Ordinarily, a public utility must obtain a Certificate of Public Convenience and Necessity from the Illinois Commerce Commission under Section 8-406 of the Public Utilities Act [220 ILCS 5/8-406] before constructing major new facilities.  An order pursuant to Section 8-406 allows a utility to begin construction on land which it owns or on which it has acquired an easement.  The utility files its application with this Commission for the Certificate, and the Commission then notifies the property owners involved of the date, time and place of the public hearing to be held by the Commission on the utility's application.  Landowners may participate in the hearing(s), either through oral or written statements, or formal intervention as provided in the Commission's Rules of Practice (83 Ill. Adm. Code 200).  During such hearing(s), the Commission considers the public need for the proposed project, the type of facilities to be constructed and the feasibility of the proposed location of the facilities.  If the Commission finds that the proposed facility is reasonably needed to provide utility service to the public and approves of its design and location, the Commission will grant a Certificate of Public Convenience and Necessity to the utility for the construction of the facilities.

            A utility may choose to seek to acquire land or land rights from landowners prior to seeking a Certificate from the Commission.  The utility may also seek to obtain an option to purchase a right-of-way from a landowner.  The securing of an option does not oblige the utility to purchase the right-of-way. During the negotiations, you may be represented by an attorney.  However, you are under no obligation to retain anyone to negotiate on your behalf.

            Negotiation means discussion and bargaining between the landowner and the utility in an effort to arrive at an equitable agreement concerning the land or land rights and the price to be paid for such land or land rights. It does not mean that an agreement must be reached or that either the landowner or the utility must agree with the other.  The Commission does not require the utility to obtain by negotiation any fixed amount or percentage of the right-of-way required for the project prior to its applying for a Certificate.

            The price to be paid to the landowner by the utility for the land or land rights is a matter of negotiation between the landowner and the utility. The Commission does not participate in the negotiations nor does it establish or approve the price.  Specific information on the price to be offered for the land or land rights will be provided by the utility representative. The utility representative may be negotiating with you for the acquisition of an easement for the use of the land or for the purchase of the land. In either case, the utility will have its own form of easement or deed, as the Commission has no standard forms which the utility is required to use.

            If the utility is able to obtain a Certificate of Public Convenience and Necessity for the project and has been unable to acquire the necessary land or land rights from all landowners through negotiation, it may apply to the Commission for an order under Section 8-503 of the Public Utilities Act [220 ILCS 5/8-503]. An order pursuant to Section 8-503 finds that the project is in the public interest and authorizes and directs the project to be built.  The Commission will notify the interested landowners from whom the utility has not been able to acquire the necessary land or land rights through negotiation, of the date, time and place of the public hearings to be held by the Commission on the utility's application.  Such landowners may participate in the hearing(s), either through oral or written statements, or formal intervention as provided in the Commission's Rules of Practice.  During such hearing(s), the Commission determines, among other things, whether the utility had made a reasonable attempt to acquire the necessary land or land rights through negotiation with the landowner.

            If the Commission grants the utility an order under Section 8-503 of the Public Utilities Act and the utility still has not been able to acquire the necessary land or land rights through negotiation, the utility may then apply to the courts to exercise the right of eminent domain or condemnation under Article VII, "Eminent Domain," of the Code of Civil Procedure [735 ILCS 5/Art. VII] to acquire the right-of-way.  Eminent domain is simply the power of the State, or those delegated by the State, to take private property for public use upon payment of just compensation as determined by the courts.

            There is no certainty that the utility will be allowed to acquire land or land rights through the use of eminent domain.  However, you should not delay in contacting the utility's representative to attempt to negotiate fair compensation for the land or land rights which the utility seeks. The Commission encourages you to negotiate vigorously on your own behalf or to have an attorney do so for you. If you have any questions about this Statement or the rules and procedures of the Illinois Commerce Commission, please contact the Chief Engineer, Illinois Commerce Commission, 527 East Capitol Avenue, Springfield, Illinois 62706.  Any specific questions concerning your individual property should be addressed to the utility representative.

(Source:  Amended at 21 Ill. Reg. 1659, effective February 1, 1997)