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Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
UTILITIES (220 ILCS 5/) Public Utilities Act. 220 ILCS 5/9-226
(220 ILCS 5/9-226) (from Ch. 111 2/3, par. 9-226)
Sec. 9-226.
In any general rate increase proceeding in which Section 9-225
of this Act applies, the following materials shall be made available to the Commission:
(a) Copies of all advertisements and scripts included in the operating
expense, listing the production costs for each ad, the publication schedule
and costs for each ad;
(b) Copies of all advertisements included in the operating expense purchased
on a cooperative basis with manufacturers, developers or others and the
company's cost for each ad; and
(c) All expenses incurred by the utility included in the operating expense
for ads or scripts produced by a trade association including all
monies paid to the association for advertising purposes, either in the form
of dues, assessments or subscriptions.
(Source: P.A. 84-617.)
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220 ILCS 5/9-227
(220 ILCS 5/9-227) (from Ch. 111 2/3, par. 9-227)
Sec. 9-227.
It shall be proper for the Commission to consider as an
operating expense, for the purpose of determining whether a rate or other
charge or classification is sufficient, donations made by a public utility
for the public welfare or for charitable scientific, religious or
educational purposes, provided that such donations are reasonable in amount.
In determining the reasonableness of such donations, the Commission may
not establish, by rule, a presumption that any particular portion of an
otherwise reasonable amount may not be considered as an operating expense.
The Commission shall be prohibited from disallowing by rule, as an
operating expense, any portion of a reasonable donation for public welfare
or charitable purposes.
(Source: P.A. 85-122.)
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220 ILCS 5/9-228 (220 ILCS 5/9-228) Sec. 9-228. Limits on public utility expenses. The Commission shall not consider any of the following as an expense of any public utility company, including any allocation of those costs to the public utility from an affiliate or corporate parent, for the purpose of determining any rate or charge, any amount expended for: (1) the pension or other post-employment benefits | | for an employee convicted of committing a criminal act in the course of his or her work with the utility;
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| (2) any severance or post-employment costs for an
| | employee convicted of committing a criminal act in the course of his or her work with the utility; or
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| (3) criminal penalties, fines, fees, and costs
| | related to criminal charges, criminal investigations, or deferred prosecution agreements.
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(Source: P.A. 102-662, eff. 9-15-21.)
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220 ILCS 5/9-229 (220 ILCS 5/9-229) Sec. 9-229. Consideration of attorney and expert compensation as an expense and intervenor compensation fund. (a) The Commission shall specifically assess the justness and reasonableness of any amount expended by a public utility to compensate attorneys or technical experts to prepare and litigate a general rate case filing. This issue shall be expressly addressed in the Commission's final order. (b) The State of Illinois shall create a Consumer Intervenor Compensation Fund subject to the following: (1) Provision of compensation for Consumer Interest | | Representatives that intervene in Illinois Commerce Commission proceedings will increase public engagement, encourage additional transparency, expand the information available to the Commission, and improve decision-making.
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| (2) As used in this Section, "Consumer interest
| | (A) a residential utility customer or group of
| | residential utility customers represented by a not-for-profit group or organization registered with the Illinois Attorney General under the Solicitation for Charity Act;
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| (B) representatives of not-for-profit groups or
| | organizations whose membership is limited to residential utility customers; or
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| (C) representatives of not-for-profit groups or
| | organizations whose membership includes Illinois residents and that address the community, economic, environmental, or social welfare of Illinois residents, except government agencies or intervenors specifically authorized by Illinois law to participate in Commission proceedings on behalf of Illinois consumers.
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| (3) A consumer interest representative is eligible to
| | receive compensation from the consumer intervenor compensation fund if its participation included lay or expert testimony or legal briefing and argument concerning the expenses, investments, rate design, rate impact, or other matters affecting the pricing, rates, costs or other charges associated with utility service, the Commission adopts a material recommendation related to a significant issue in the docket, and participation caused a significant financial hardship to the participant; however, no consumer interest representative shall be eligible to receive an award pursuant to this Section if the consumer interest representative receives any compensation, funding, or donations, directly or indirectly, from parties that have a financial interest in the outcome of the proceeding.
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| (4) Within 30 days after September 15, 2021 (the
| | effective date of Public Act 102-662), each utility that files a request for an increase in rates under Article IX or Article XVI shall deposit an amount equal to one half of the rate case attorney and expert expense allowed by the Commission, but not to exceed $500,000, into the fund within 35 days of the date of the Commission's final Order in the rate case or 20 days after the denial of rehearing under Section 10-113 of this Act, whichever is later. The Consumer Intervenor Compensation Fund shall be used to provide payment to consumer interest representatives as described in this Section.
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| (5) An electric public utility with 3,000,000 or more
| | retail customers shall contribute $450,000 to the Consumer Intervenor Compensation Fund within 60 days after September 15, 2021 (the effective date of Public Act 102-662). A combined electric and gas public utility serving fewer than 3,000,000 but more than 500,000 retail customers shall contribute $225,000 to the Consumer Intervenor Compensation Fund within 60 days after September 15, 2021 (the effective date of Public Act 102-662). A gas public utility with 1,500,000 or more retail customers that is not a combined electric and gas public utility shall contribute $225,000 to the Consumer Intervenor Compensation Fund within 60 days after September 15, 2021 (the effective date of Public Act 102-662). A gas public utility with fewer than 1,500,000 retail customers but more than 300,000 retail customers that is not a combined electric and gas public utility shall contribute $80,000 to the Consumer Intervenor Compensation Fund within 60 days after September 15, 2021 (the effective date of Public Act 102-662). A gas public utility with fewer than 300,000 retail customers that is not a combined electric and gas public utility shall contribute $20,000 to the Consumer Intervenor Compensation Fund within 60 days after September 15, 2021 (the effective date of Public Act 102-662). A combined electric and gas public utility serving fewer than 500,000 retail customers shall contribute $20,000 to the Consumer Intervenor Compensation Fund within 60 days after September 15, 2021 (the effective date of Public Act 102-662). A water or sewer public utility serving more than 100,000 retail customers shall contribute $80,000, and a water or sewer public utility serving fewer than 100,000 but more than 10,000 retail customers shall contribute $20,000.
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| (6)(A) Prior to the entry of a Final Order in a
| | docketed case, the Commission Administrator shall provide a payment to a consumer interest representative that demonstrates through a verified application for funding that the consumer interest representative's participation or intervention without an award of fees or costs imposes a significant financial hardship based on a schedule to be developed by the Commission. The Administrator may require verification of costs incurred, including statements of hours spent, as a condition to paying the consumer interest representative prior to the entry of a Final Order in a docketed case.
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| (B) If the Commission adopts a material
| | recommendation related to a significant issue in the docket and participation caused a financial hardship to the participant, then the consumer interest representative shall be allowed payment for some or all of the consumer interest representative's reasonable attorney's or advocate's fees, reasonable expert witness fees, and other reasonable costs of preparation for and participation in a hearing or proceeding. Expenses related to travel or meals shall not be compensable.
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| (C) The consumer interest representative shall submit
| | an itemized request for compensation to the Consumer Intervenor Compensation Fund, including the advocate's or attorney's reasonable fee rate, the number of hours expended, reasonable expert and expert witness fees, and other reasonable costs for the preparation for and participation in the hearing and briefing within 30 days of the Commission's final order after denial or decision on rehearing, if any.
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| (7) Administration of the Fund.
(A) The Consumer Intervenor Compensation Fund is
| | created as a special fund in the State treasury. All disbursements from the Consumer Intervenor Compensation Fund shall be made only upon warrants of the Comptroller drawn upon the Treasurer as custodian of the Fund upon vouchers signed by the Executive Director of the Commission or by the person or persons designated by the Director for that purpose. The Comptroller is authorized to draw the warrant upon vouchers so signed. The Treasurer shall accept all warrants so signed and shall be released from liability for all payments made on those warrants. The Consumer Intervenor Compensation Fund shall be administered by an Administrator that is a person or entity that is independent of the Commission. The administrator will be responsible for the prudent management of the Consumer Intervenor Compensation Fund and for recommendations for the award of consumer intervenor compensation from the Consumer Intervenor Compensation Fund. The Commission shall issue a request for qualifications for a third-party program administrator to administer the Consumer Intervenor Compensation Fund. The third-party administrator shall be chosen through a competitive bid process based on selection criteria and requirements developed by the Commission. The Illinois Procurement Code does not apply to the hiring or payment of the Administrator. All Administrator costs may be paid for using monies from the Consumer Intervenor Compensation Fund, but the Program Administrator shall strive to minimize costs in the implementation of the program.
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| (B) The computation of compensation awarded from the
| | fund shall take into consideration the market rates paid to persons of comparable training and experience who offer similar services, but may not exceed the comparable market rate for services paid by the public utility as part of its rate case expense.
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| (C)(1) Recommendations on the award of compensation
| | by the administrator shall include consideration of whether the Commission adopted a material recommendation related to a significant issue in the docket and whether participation caused a financial hardship to the participant and the payment of compensation is fair, just and reasonable.
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| (2) Recommendations on the award of compensation by
| | the administrator shall be submitted to the Commission for approval. Unless the Commission initiates an investigation within 45 days after the notice to the Commission, the award of compensation shall be allowed 45 days after notice to the Commission. Such notice shall be given by filing with the Commission on the Commission's e-docket system, and keeping open for public inspection the award for compensation proposed by the Administrator. The Commission shall have power, and it is hereby given authority, either upon complaint or upon its own initiative without complaint, at once, and if it so orders, without answer or other formal pleadings, but upon reasonable notice, to enter upon a hearing concerning the propriety of the award.
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| (c) The Commission may adopt rules to implement this Section.
(Source: P.A. 102-662, eff. 9-15-21; 103-605, eff. 7-1-24.)
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220 ILCS 5/9-230
(220 ILCS 5/9-230) (from Ch. 111 2/3, par. 9-230)
Sec. 9-230.
Rate of return; financial involvement with nonutility or
unregulated
companies. In determining a reasonable rate of return upon investment
for any public utility in any proceeding to establish rates or charges, the
Commission shall not include any (i) incremental risk, (ii)
increased cost of
capital, or (iii) after May 31, 2003, revenue or expense attributed to
telephone
directory operations, which is the direct or indirect result of the public
utility's
affiliation with unregulated or nonutility companies.
(Source: P.A. 92-22, eff. 6-30-01.)
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220 ILCS 5/9-240
(220 ILCS 5/9-240) (from Ch. 111 2/3, par. 9-240)
Sec. 9-240.
Except as in this Act otherwise provided, no public utility
shall charge, demand, collect or receive a greater or less or different
compensation for any product, or commodity furnished or to be furnished, or
for any service rendered or to be rendered, than the rates or other charges
applicable to such product or commodity or service as specified in its
schedules on file and in effect at the time, except as provided in Section
9-104, nor shall any such public utility refund or remit, directly or
indirectly, in any manner or by any device, any portion of the rates or
other charges so specified, nor extend to any corporation or person any
form of contract or agreement or any rule or regulation or any facility or
privilege except such as are regularly and uniformly extended to all
corporations and persons.
No law of the State shall be construed to prohibit a public utility from
furnishing its service, product or commodity to its employees, officers,
directors or pensioners, or its employees, officers, directors or
pensioners from receiving such service, product or commodity, free or at
rates or charges less than those specified in its filed schedules.
(Source: P.A. 84-617.)
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220 ILCS 5/9-241 (220 ILCS 5/9-241) (from Ch. 111 2/3, par. 9-241) Sec. 9-241. Nondiscrimination. (a) No public utility shall, as to rates or other charges, services, facilities or in other respect, make or grant any preference or advantage to any corporation or person or subject any corporation or person to any prejudice or disadvantage. No public utility shall establish or maintain any unreasonable difference as to rates or other charges, services, facilities, or in any other respect, either as between localities or as between classes of service. (b) An electric utility in a county with a population of 3,000,000 or more shall not establish or maintain any unreasonable difference as to rates or other charges, services, contractual terms, or facilities for access to or the use of its utility infrastructure by another person or for any other purpose. Notwithstanding any other provision of law, the Commission and its staff shall interpret this Section in accordance with Article XVI of this Act. (c) Nothing in this Section shall be construed as limiting the authority of the Commission to permit the establishment of economic development rates as incentives to economic development either in enterprise zones as designated by the State of Illinois or in other areas of a utility's service area. Such rates should be available to existing businesses which demonstrate an increase to existing load as well as new businesses which create new load for a utility so as to create a more balanced utilization of generating capacity. The Commission shall ensure that such rates are established at a level which provides a net benefit to customers within a public utility's service area. (d) On or before January 1, 2023, the Commission shall conduct a comprehensive study to assess whether low-income discount rates for electric and natural gas residential customers are appropriate and the potential design and implementation of any such rates. The Commission shall include its findings, together with the appropriate recommendations, in a report to be provided to the General Assembly. Upon completion of the study, the Commission shall have the authority to permit or require electric and natural gas utilities to file a tariff establishing low-income discount rates. Such study shall assess, at a minimum, the following: (1) customer eligibility requirements, including | | income-based eligibility and eligibility based on participation in or eligibility for certain public assistance programs;
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| (2) appropriate rate structures, including
| | consideration of tiered discounts for different income levels;
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| (3) appropriate recovery mechanisms, including the
| | consideration of volumetric charges and customer charges;
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| (4) appropriate verification mechanisms;
(5) measures to ensure customer confidentiality and
| | (6) outreach and consumer education procedures; and
(7) the impact that a low-income discount rate would
| | have on the affordability of delivery service to low-income customers and customers overall.
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| (e) The Commission shall adopt rules requiring utility companies to produce information, in the form of a mailing, and other approved methods of distribution, to its consumers, to inform the consumers of available rebates, discounts, credits, and other cost-saving mechanisms that can help them lower their monthly utility bills, and send out such information semi-annually, unless otherwise provided by this Article.
(f) Prior to October 1, 1989, no public utility providing electrical or gas service shall consider the use of solar or other nonconventional renewable sources of energy by a customer as a basis for establishing higher rates or charges for any service or commodity sold to such customer; nor shall a public utility subject any customer utilizing such energy source or sources to any other prejudice or disadvantage on account of such use. No public utility shall without the consent of the Commission, charge or receive any greater compensation in the aggregate for a lesser commodity, product, or service than for a greater commodity, product or service of like character.
The Commission, in order to expedite the determination of rate questions, or to avoid unnecessary and unreasonable expense, or to avoid unjust or unreasonable discrimination between classes of customers, or, whenever in the judgment of the Commission public interest so requires, may, for rate making and accounting purposes, or either of them, consider one or more municipalities either with or without the adjacent or intervening rural territory as a regional unit where the same public utility serves such region under substantially similar conditions, and may within such region prescribe uniform rates for consumers or patrons of the same class.
Any public utility, with the consent and approval of the Commission, may as a basis for the determination of the charges made by it classify its service according to the amount used, the time when used, the purpose for which used, and other relevant factors.
(Source: P.A. 102-662, eff. 9-15-21; 103-679, eff. 7-19-24.)
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220 ILCS 5/9-242
(220 ILCS 5/9-242)
Sec. 9-242. (Repealed).
(Source: P.A. 84-617. Repealed by P.A. 100-840, eff. 8-13-18.)
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220 ILCS 5/9-243
(220 ILCS 5/9-243) (from Ch. 111 2/3, par. 9-243)
Sec. 9-243.
No public utility, or any officer or agent thereof, or any person
acting for or employed by it, shall directly or indirectly, by any device
or means whatsoever, suffer or permit any corporation or person to obtain
any service, commodity, or product at less than the rate or other charge
then established and in force as shown by the schedules filed and in effect
at the time. No person or corporation shall, directly or indirectly, by any
device or means whatsoever, whether with or without the consent or
connivance of a public utility or any of its officers, or employees, seek
to obtain or obtain any service, commodity, or product at less than the rate
or other charge then established and in force therefor. If prior to June 30,
1913, any real estate or other tangible property shall have been sold or
transferred to any public utility or public service corporation, or, if
before that date, any obligation of any public utility or public service
corporation created in consideration of the transfer to it of any real
estate or other tangible property, shall have been released or cancelled,
upon consideration in whole or in part of an agreement by such public
utility or public service corporation expressed in writing to render any
service, or furnish any commodity or product in the future to the party or
parties making such conveyance or transfer or owning such obligation,
nothing in this Act contained shall be construed to in any way affect such
agreement or to prevent the performance or enforcement thereof according to
its terms, or to authorize the Commission to interfere with such
performance or enforcement.
(Source: P.A. 84-617.)
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220 ILCS 5/9-244
(220 ILCS 5/9-244) (from Ch. 111 2/3, par. 9-244)
Sec. 9-244.
Alternative rate regulation.
(a) Notwithstanding any of the ratemaking provisions of
this Article IX or other Sections of this Act, or the
Commission's rules that are deemed to require rate of return
regulation, and except as provided in Article XVI, the
Commission, upon petition by an electric or gas public utility, and after
notice and hearing, may authorize for some or all of the
regulated services of that utility, the implementation of one
or more programs consisting of (i) alternatives to rate of
return regulation, including but not limited to earnings
sharing, rate moratoria, price caps or flexible rate options,
or (ii) other regulatory mechanisms that reward or penalize
the utility through the adjustment of rates based on utility
performance. In the case of other regulatory mechanisms that
reward or penalize utilities through the adjustment of rates
based on utility performance, the utility's performance shall
be compared to standards established in the Commission order
authorizing the implementation of other regulatory mechanisms.
The Commission is specifically authorized to approve in
response to such petitions different forms of alternatives to
rate of return regulation or other regulatory mechanisms to
fit the particular characteristics and requirements of
different utilities and their service territories.
(b) The Commission shall approve the program if it
finds, based on the record, that:
(1) the program is likely to result in rates lower | | than otherwise would have been in effect under traditional rate of return regulation for the services covered by the program and that are consistent with the provisions of Section 9-241 of the Act; and
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(2) the program is likely to result in other
| | substantial and identifiable benefits that would be realized by customers served under the program and that would not be realized in the absence of the program; and
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(3) the utility is in compliance with applicable
| | Commission standards for reliability and implementation of the program is not likely to adversely affect service reliability; and
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(4) implementation of the program is not likely to
| | result in deterioration of the utility's financial condition; and
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(5) implementation of the program is not likely to
| | adversely affect the development of competitive markets; and
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(6) the electric utility is in compliance with its
| | obligation to offer delivery services pursuant to Article XVI; and
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(7) the program includes annual reporting
| | requirements and other provisions that will enable the Commission to adequately monitor its implementation of the program; and
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(8) the program includes provisions for an equitable
| | sharing of any net economic benefits between the utility and its customers to the extent the program is likely to result in such benefits.
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The Commission shall issue its order approving or denying the
program no later than 270 days from the date of filing of the
petition. Any program approved under this Section shall
continue in effect until revised, modified or terminated by
order of the Commission as provided in this Section. If the
Commission cannot make the above findings, it shall
specifically identify in its order the reason or reasons why
the proposed program does not meet the above criteria, and
shall identify any modifications supported in the record, if
any, that would cause the program to satisfy the above
criteria. In the event the order identifies any such
modifications it shall not become a final order subject to
petitions for rehearing until 15 days after service of same by
the Commission. The utility shall have 14 days following the
date of service of the order to notify the Commission in
writing whether it will accept any modifications so identified
in the order or whether it has elected not to proceed with the
program. If the utility notifies the Commission that it will
accept such modifications, the Commission shall issue an
amended order, without further hearing, within 14 days
following such notification, approving the program as modified
and such order shall be considered to be a final order of the
Commission subject to petitions for rehearing and appellate
procedures.
(c) The Commission shall open a proceeding to review any
program approved under subsection (b) 2 years after the
program is first implemented to determine whether the program
is meeting its objectives, and may make such revisions, no
later than 270 days after the proceeding is opened, as are
necessary to result in the program meeting its objectives. A
utility may elect to discontinue any program so revised. The
Commission shall not otherwise direct a utility to revise,
modify or cancel a program during its term of operation,
except as found necessary, after notice and hearing, to ensure
system reliability.
(d) Upon its own motion or complaint, the Commission may
investigate whether the utility is implementing an approved
program in accordance with the Commission order approving the
program. If the Commission finds after notice and hearing,
that the utility is not implementing the program in accordance
with such order, the Commission shall order the utility to
comply with the terms of the order. Complaints relating to
the program filed under Section 9-250 of this Act, alleging
that the program does not comply with that Section or the
requirements of subsection (b) shall not be filed sooner than
one year after the review provided for in subsection (c). The
complainant shall bear the burden of proving the allegations
in the complaint.
(e) The Commission shall not be authorized to allow or
order an electric utility to place a program into effect,
pursuant to this Section, applicable to delivery services
provided by a utility, unless the utility already has in
effect a delivery services tariff conforming to the
requirements of Section 16-108 of this Act.
(f) The Commission may, upon subsequent petition by the
utility, after notice and hearing, authorize the extension of
a program that was previously approved pursuant to this
Section or approve revisions or modifications of such a
program to be effective, after the initially approved program
has been in effect. Any such petition seeking an extension,
revision, or modification of such a program must be
accompanied by an evaluation of the program addressing the
criteria set forth in subsection (b) hereof. The utility's
petition may, but is not required to, specify a termination
date for the extended, revised or modified program. The
Commission may require a review of the extended, revised, or
modified program at such intervals as may be ordered by the
Commission, for the purpose of determining whether the program
should be revised, modified, or terminated.
(Source: P.A. 89-194, eff. 1-1-96; 90-561, eff. 12-16-97.)
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220 ILCS 5/9-245
(220 ILCS 5/9-245)
Sec. 9-245.
Rates; environmental fines and remediation.
In determining
the rates for a public utility engaged in providing natural gas service,
the Commission may not include any expenditure for fines or remediation and
related activities incurred as a result of mercury spills associated with gas
pressure regulators, manometers, or any other devices containing mercury in
the utility's system. Any related insurance or third party recoveries must
also be excluded for ratemaking purposes.
(Source: P.A. 92-71, eff. 7-12-01.)
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220 ILCS 5/9-246 (220 ILCS 5/9-246) Sec. 9-246. Rates; lead hazard cost recovery by investor-owned water utilities. In determining the rates for an investor-owned public utility engaged in providing water service, the Commission shall allow the utility to recover annually any reasonable costs incurred by the utility to comply with Section 35.5 of the Illinois Plumbing License Law.
(Source: P.A. 99-922, eff. 1-17-17.) |
220 ILCS 5/9-250
(220 ILCS 5/9-250) (from Ch. 111 2/3, par. 9-250)
Sec. 9-250.
Whenever the Commission, after a hearing had upon its own motion
or upon complaint, shall find that the rates or other charges, or
classifications, or any of them, demanded, observed, charged or collected
by any public utility for any service or product or commodity, or in
connection therewith, or that the rules, regulations, contracts, or
practices or any of them, affecting such rates or other charges, or
classifications, or any of them, are unjust, unreasonable, discriminatory
or preferential, or in any way in violation of any provisions of law, or
that such rates or other charges or classifications are insufficient, the
Commission shall determine the just, reasonable or sufficient rates or
other charges, classifications, rules, regulations, contracts or practices
to be thereafter observed and in force, and shall fix the same by order as
hereinafter provided.
The Commission shall have power, upon a hearing, had upon its own motion
or upon complaint, to investigate a single rate or other charge,
classification, rule, regulation, contract or practice, or any number
thereof, or the entire schedule or schedules of rates or other charges,
classifications, rules, regulations, contracts and practices, or any
thereof of any public utility, and to establish new rates or other charges,
classifications, rules, regulations, contracts or practices or schedule or
schedules, in lieu thereof.
(Source: P.A. 84-617; 84-1025.)
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