(65 ILCS 5/11-117-7.1)
Sec. 11-117-7.1.
Service rights in annexed areas; acquiring electric
facilities after annexation.
(a) Consistent with the first paragraph of Section 5, and with Section 14,
of the Electric Supplier Act, an electric cooperative (as defined in the
Electric Supplier Act) providing service in an area which is annexed to or
otherwise becomes located within an incorporated municipality that owns and
operates a municipal utility for the purpose of providing retail electric
services shall have the right to continue to provide service without
authorization by the incorporated municipality to all existing premises being
served and may provide service to new premises located in such area
that can be served from
the cooperative's primary distribution facilities in existence upon the date
such area is annexed to or otherwise becomes located within an incorporated
municipality. If necessary, the cooperative may maintain or upgrade existing
facilities or rebuild facilities to provide adequate and reliable service to
customers served or to be served as permitted under this Section. The
cooperative shall not extend primary distribution facilities into or within
such area unless the cooperative is or shall become authorized to do so by the
incorporated municipality.
(b) Customers receiving service from an electric cooperative at premises
located in an area that is annexed to or otherwise becomes located within an
incorporated municipality that owns and operates a municipal utility for the
purpose of providing retail electric service may elect to take service from
either the cooperative or the municipality. Customers at new
premises that may be served by an electric cooperative under subsection (a)
may, at the time of connection, elect to take service from either the electric
cooperative or the municipality. In all instances the customer's election of
service supplier shall be binding upon the customer only for such time as the
customer requires service at that premises. Subsequent customers at such
premises shall have the same right of selection; provided, however, an electric
cooperative providing service in an area which is annexed to or otherwise
becomes located within an incorporated municipality is not obligated to provide
retail electric service except as required under the Electric Supplier Act or
the terms of a franchise granted by the incorporated municipality.
(c) If any facilities located in such area are or become unnecessary to
provide service to a customer or customers as a result of a customer's election
to receive service from either the electric cooperative or the municipality,
the owner of the facilities may require the other supplier of electric service
to acquire the facilities for an amount agreed upon by the parties or an amount
equal to the present-day reproduction cost, new, of the facilities being
acquired, less depreciation computed on a straight-line basis according to the
seller's standard schedule of depreciation, multiplied by the factor 1.1, but
no less than the cost to disconnect and remove the facilities if the supplier
acquiring the facilities requires them to be removed by the selling supplier.
(d) The provisions of this Section are severable under Section 1.31 of the
Statute on Statutes.
(Source: P.A. 88-335.)
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