98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2504

 

Introduced , by Rep. Esther Golar

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/9-201  from Ch. 111 2/3, par. 9-201

    Amends the Public Utilities Act. Prevents the Commission from approving any increase in rates by a water or sewer service of greater than 15%. Requires these utilities to include notice of any proposed rate change on every bill sent to customers until the rate change is approved or denied. Allows customers who have had their rates increased by over 15% to file a civil action against the utility for damages in which the customers are certified as a class, are granted a rebuttable presumption that any increase in excess of 15% is unjustified, and are entitled to double damages as well as attorney's fees and costs. Entitles customers that have filed a class action against a water or sewer service utility for increasing their rates by over 15% to a temporary restraining order halting collection of the increase until the civil action is resolved.


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A BILL FOR

 

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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Section 9-201 as follows:
 
6    (220 ILCS 5/9-201)  (from Ch. 111 2/3, par. 9-201)
7    Sec. 9-201. (a) Unless the Commission otherwise orders, and
8except as otherwise provided in this Section, no change shall
9be made by any public utility in any rate or other charge or
10classification, or in any rule, regulation, practice or
11contract relating to or affecting any rate or other charge,
12classification or service, or in any privilege or facility,
13except after 45 days' notice to the Commission and to the
14public as herein provided. Such notice shall be given by filing
15with the Commission and keeping open for public inspection new
16schedules or supplements stating plainly the change or changes
17to be made in the schedule or schedules then in force, and the
18time when the change or changes will go into effect, and by
19publication in a newspaper of general circulation or such other
20notice to persons affected by such change as may be prescribed
21by rule of the Commission. The Commission, for good cause
22shown, may allow changes without requiring the 45 days' notice
23herein provided for, by an order specifying the changes so to

 

 

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1be made and the time when they shall take effect and the manner
2in which they shall be filed and published.
3    When any change is proposed in any rate or other charge, or
4classification, or in any rule, regulation, practice, or
5contract relating to or affecting any rate or other charge,
6classification or service, or in any privilege or facility,
7such proposed change shall be plainly indicated on the new
8schedule filed with the Commission, by some character to be
9designated by the Commission, immediately preceding or
10following the item. The Commission shall not approve any change
11in any rate or other charge or classification, or in any rule,
12regulation, practice or contract relating to or affecting any
13rate or other charge, classification, or service for water or
14sewer service which would result in an increase of more than
1515% to the rate payers.
16    When any public utility providing water or sewer service
17proposes any change in any rate or other charge, or
18classification, or in any rule, regulation, practice, or
19contract relating to or affecting any rate or other charge,
20classification or service, or in any privilege or facility,
21such utility shall, in addition to the other notice
22requirements of this Act, provide notice of such change to all
23customers potentially affected by including a notice and
24description of such change, and of Commission procedures for
25intervention, in the first bill sent to each such customer
26after the filing of the proposed change and this notice shall

 

 

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1continue to be included in each bill until the final
2disposition of the proposed change.
3    (b) Whenever there shall be filed with the Commission any
4schedule stating an individual or joint rate or other charge,
5classification, contract, practice, rule or regulation, the
6Commission shall have power, and it is hereby given authority,
7either upon complaint or upon its own initiative without
8complaint, at once, and if it so orders, without answer or
9other formal pleadings by the interested public utility or
10utilities, but upon reasonable notice, to enter upon a hearing
11concerning the propriety of such rate or other charge,
12classification, contract, practice, rule or regulation, and
13pending the hearing and decision thereon, such rate or other
14charge, classification, contract, practice, rule or regulation
15shall not go into effect. The period of suspension of such rate
16or other charge, classification, contract, practice, rule or
17regulation shall not extend more than 105 days beyond the time
18when such rate or other charge, classification, contract,
19practice, rule or regulation would otherwise go into effect
20unless the Commission, in its discretion, extends the period of
21suspension for a further period not exceeding 6 months.
22    All rates or other charges, classifications, contracts,
23practices, rules or regulations not so suspended shall, on the
24expiration of 45 days from the time of filing the same with the
25Commission, or of such lesser time as the Commission may grant,
26go into effect and be the established and effective rates or

 

 

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1other charges, classifications, contracts, practices, rules
2and regulations, subject to the power of the Commission, after
3a hearing had on its own motion or upon complaint, as herein
4provided, to alter or modify the same.
5    Within 30 days after such changes have been authorized by
6the Commission, copies of the new or revised schedules shall be
7posted or filed in accordance with the terms of Section 9-103
8of this Act, in such a manner that all changes shall be plainly
9indicated. The Commission shall incorporate into the period of
10suspension a review period of 4 business days during which the
11Commission may review and determine whether the new or revised
12schedules comply with the Commission's decision approving a
13change to the public utility's rates. Such review period shall
14not extend the suspension period by more than 2 days. Absent
15notification to the contrary within the 4 business day period,
16the new or revised schedules shall be deemed approved.
17    (c) If the Commission enters upon a hearing concerning the
18propriety of any proposed rate or other charge, classification,
19contract, practice, rule or regulation, the Commission shall
20establish the rates or other charges, classifications,
21contracts, practices, rules or regulations proposed, in whole
22or in part, or others in lieu thereof, which it shall find to
23be just and reasonable. In such hearing, the burden of proof to
24establish the justness and reasonableness of the proposed rates
25or other charges, classifications, contracts, practices, rules
26or regulations, in whole and in part, shall be upon the

 

 

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1utility. The utility, the staff of the Commission, the Attorney
2General, or any party to a proceeding initiated under this
3Section who has been granted intervenor status and submitted a
4post-hearing brief must be given the opportunity to present
5oral argument, if requested no later than the date for filing
6exceptions, on the propriety of any proposed rate or other
7charge, classification, contract, practice, rule, or
8regulation. No rate or other charge, classification, contract,
9practice, rule or regulation shall be found just and reasonable
10unless it is consistent with Sections of this Article.
11    (d) Except where compliance with Section 8-401 of this Act
12is of urgent and immediate concern, no representative of a
13public utility may discuss with a commissioner, commissioner's
14assistant, or hearing examiner in a non-public setting a
15planned filing for a general rate increase. If a public utility
16makes a filing under this Section, then no substantive
17communication by any such person with a commissioner,
18commissioner's assistant or hearing examiner concerning the
19filing is permitted until a notice of hearing has been issued.
20After the notice of hearing has been issued, the only
21communications by any such person with a commissioner,
22commissioner's assistant, or hearing examiner concerning the
23filing permitted are communications permitted under Section
2410-103 of this Act. If any such communication does occur, then
25within 5 days of the docket being initiated all details
26relating to the communication shall be placed on the public

 

 

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1record of the proceeding. The record shall include any
2materials, whether written, recorded, filmed, or graphic in
3nature, produced or reproduced on any media, used in connection
4with the communication. The record shall reflect the names of
5all persons who transmitted, received, or were otherwise
6involved in the communication, the duration of the
7communication, and whether the communication occurred in
8person or by other means. In the case of an oral communication,
9the record shall also reflect the location or locations of all
10persons involved in the communication and, if the communication
11occurred by telephone, the telephone numbers for the callers
12and recipients of the communication. A commissioner,
13commissioner's assistant, or hearing examiner who is involved
14in any such communication shall be recused from the affected
15proceeding. The Commission, or any commissioner or hearing
16examiner presiding over the proceeding shall, in the event of a
17violation of this Section, take action necessary to ensure that
18such violation does not prejudice any party or adversely affect
19the fairness of the proceedings including dismissing the
20affected proceeding. Nothing in this subsection (d) is intended
21to preclude otherwise allowable updates on issues that may be
22indirectly related to a general rate case filing because cost
23recovery for the underlying activity may be requested. Such
24updates may include, without limitation, issues related to
25outages and restoration, credit ratings, security issuances,
26reliability, Federal Energy Regulatory Commission matters,

 

 

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1Federal Communications Commission matters, regional
2reliability organizations, consumer education, or labor
3matters, provided that such updates may not include cost
4recovery in a planned rate case.
5    (e) If a public utility providing water or sewer service
6imposes a change in any rate, charge, classification, rule,
7regulation, practice, or contract that would result in an
8increase of greater than 15%, affected rate payers may file a
9civil cause of action against the utility.
10        (1) Notwithstanding any provision in the Code of Civil
11    Procedure, rate payers shall be certified as a class. When
12    the utility files its answer to the complaint it shall
13    provide a list of all customers subject to the rate
14    increase, including their contact information on record
15    with the utility, to the plaintiffs' attorneys so that all
16    affected customers may be contacted regarding the civil
17    action.
18        (2) If the rate payers can establish a rate increase
19    greater than 15%, this creates a rebuttable presumption
20    that any increase in excess of 15% is unjustified,
21    notwithstanding any approval or findings by the
22    Commission. The utility can overcome this presumption only
23    by establishing through clear and convincing evidence that
24    the rate increase is the minimum increase necessary to
25    allow the continuation of service to the affected
26    customers. For purposes of rebutting this presumption, any

 

 

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1    approval or findings of fact by the Commission shall not be
2    given any presumption of validity or sufficiency, and the
3    utility must satisfy the trier of fact of the necessity of
4    the increase through independent evidence and testimony.
5        (3) If plaintiffs prevail damages shall be awarded in
6    the amount of twice the rate increase paid by the rate
7    payers, together with reasonable attorney's fees and costs
8    as determined by the court.
9    If rate payers file a civil action under this paragraph the
10court shall, upon a showing by the rate payers that a rate
11increase of greater than 15% has been imposed, issue a
12Temporary Restraining Order preventing the utility from
13collecting the disputed rate increase until a final disposition
14has been entered in the civil action.
15(Source: P.A. 96-33, eff. 7-10-09.)