State of Illinois
2013 and 2014


Introduced , by Rep. Brandon W. Phelps


220 ILCS 5/5-104  from Ch. 111 2/3, par. 5-104

    Amends the Public Utilities Act. Provides that the Commerce Commission may require gas utilities to keep accounts that reflect depreciation and other specified information. Effective immediately.

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HB3149LRB098 10877 JLS 41379 b

1    AN ACT concerning public utilities.
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 5-104 as follows:
6    (220 ILCS 5/5-104)  (from Ch. 111 2/3, par. 5-104)
7    Sec. 5-104. Depreciation accounts.
8    (a) The Commission shall have power, after hearing, to
9require any or all public utilities, except electric public
10utilities and gas public utilities, to keep such accounts as
11will adequately reflect depreciation, obsolescence and the
12progress of the arts. The Commission may, from time to time,
13ascertain and determine and by order fix the proper and
14adequate rate of depreciation of the several classes of
15property for each public utility; and each public utility shall
16conform its depreciation accounts to the rates so ascertained,
17determined and fixed.
18    (b) The Commission shall have the power, after hearing, to
19require any or all electric public utilities and gas public
20utilities to keep such accounts as will adequately reflect
21depreciation, obsolescence, and the progress of the arts. The
22Commission may, from time to time, ascertain and determine and
23by order fix the proper and adequate rate of depreciation of



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1the several classes of property for each electric public
2utility and gas public utility; and each electric public
3utility and gas public utility shall thereafter, absent further
4order of the Commission, conform its depreciation accounts to
5the rates so ascertained, determined and fixed until at least
6the end of the first full calendar year following the date of
7such determination.
8    (c) An electric public utility and a gas public utility may
9from time to time alter the annual rates of depreciation, which
10for purposes of this subsection (c) and subsection (d) shall
11include amortization, that it applies to its several classes of
12assets so long as the rates are consistent with generally
13accepted accounting principles. An The electric public utility
14and a gas public utility shall file a statement with the
15Commission which shall set forth the new rates of depreciation
16and which shall contain a certification by an independent
17certified public accountant that the new rates of depreciation
18are consistent with generally accepted accounting principles.
19Upon the filing of such statement, the new rates of
20depreciation shall be deemed to be approved by the Commission
21as the rates of depreciation to be applied thereafter by the
22public utility as though an order had been entered pursuant to
23subsection (b).
24    (d) In any proceeding conducted pursuant to Section 9-201
25or 9-202 to set an electric public utility's or gas public
26utility's rates for service, the Commission may determine not



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1to use, in determining the depreciation expense component of
2the public utility's rates for service, the rates of
3depreciation established pursuant to subsection (c), if the
4Commission in that proceeding finds based on the record that
5different rates of depreciation are required to adequately
6reflect depreciation, obsolescence and the progress of the
7arts, and fixes by order and uses for purposes of that
8proceeding new rates of depreciation to be thereafter employed
9by the electric public utility or gas public utility until the
10end of the first full calendar year following the date of the
11determination and thereafter until altered in accordance with
12subsection (b) or (c) of this Section.
13    (e) For purposes of this Section, "gas public utility"
14means a natural gas utility serving at least 1,600,000
15customers as of January 1, 2013.
16    The changes made to this Section by this amendatory Act of
17the 98th General Assembly apply with respect to new rates of
18depreciation that are filed with the Commission pursuant to
19subsection (c) on or after January 1, 2013 on the date the
20statement of new rates of depreciation are certified by an
21independent certified public accountant.
22(Source: P.A. 90-561, eff. 12-16-97.)
23    Section 99. Effective date. This Act takes effect upon
24becoming law.