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90_SB0215
220 ILCS 5/9-201.3 new
Amends the Public Utilities Act. Authorizes the
Commission to establish alternative forms of regulation.
Establishes minimum requirements for alternative forms of
regulation. Beginning January 1, 1999, requires the
Commission to conduct an annual review the rates of each
public utility that is not subject to an alternative form of
regulation. Effective January 1, 1998.
LRB9001047JSmgA
LRB9001047JSmgA
1 AN ACT to amend the Public Utilities Act by adding
2 Section 9-201.3.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Act is amended by adding
6 Section 9-201.3 as follows:
7 (220 ILCS 5/9-201.3 new)
8 Sec. 9-201.3. Alternative regulation; annual rate
9 reviews.
10 (a) Notwithstanding any provision of this Article that
11 requires rate of return regulation, the Commission may
12 implement alternative forms of regulation to establish just
13 and reasonable rates for electric utility services including,
14 but not limited to, price regulation, earnings sharing, and
15 rate moratoria. The Commission is authorized to adopt
16 different forms of regulation to fit the particular
17 characteristics of different utilities and their service
18 areas. In determining the appropriateness of an alternative
19 form of regulation, the Commission shall consider, at a
20 minimum, whether it will:
21 (1) reduce regulatory delay and costs;
22 (2) encourage innovation in services;
23 (3) enhance economic development; and
24 (4) provide for fair, just, and reasonable rates.
25 An electric public utility may petition the Commission to
26 regulate its rates and charges under an alternative form of
27 regulation. The utility shall submit with its petition its
28 plan for an alternative form of regulation. The Commission
29 shall review and may reject or modify the proposed plan. The
30 Commission may also initiate consideration of alternative
31 forms of regulation for an electric public utility. The
-2- LRB9001047JSmgA
1 Commission may approve a plan of alternative regulation and
2 authorize its implementation only if it finds, after notice
3 and hearing, that the plan at a minimum:
4 (1) is in the public interest;
5 (2) will provide fair, just, and reasonable rates;
6 (3) responds to changes in technology;
7 (4) identifies how ratepayers will benefit from any
8 efficiency gains or cost savings arising out of the plan;
9 (5) will maintain the quality and availability of
10 service; and
11 (6) will not prejudice or disadvantage any
12 particular customer class.
13 Any person may file a complaint alleging that the rates
14 under the alternative form of regulation are unfair, unjust,
15 unreasonable, or unduly discriminatory. The complainant
16 shall bear the burden of proving the allegations in the
17 complaint.
18 (b) Beginning January 1, 1999, the Commission shall
19 conduct an annual review of the rates of each electric public
20 utility that has not filed a request for an alternative form
21 of regulation. The Commission shall provide notice of the
22 review to the utility and to the public and shall hold at
23 least one public hearing on the matter. The hearing shall
24 be conducted in accordance with the rate-of-return
25 requirements of this Act. Any affected party may present
26 evidence concerning the utility's rates to the Commission.
27 Section 99. Effective date. This Act takes effect
28 January 1, 1998.