SB1590 97TH GENERAL ASSEMBLY

LRB097 09163 ASK 49298 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1590

Introduced 2/9/2011, by Sen. Antonio Muñoz

SYNOPSIS AS INTRODUCED:

220 ILCS 5/9-220.2

Amends the Public Utilities Act. Provides that the Illinois Commerce Commission shall authorize a water or sewer utility to file a surcharge that adjusts rates and charges to provide for recovery of the costs of any increase in the water or sewer utility's gross receipts tax rate set forth in a certain provision of the Act, federal income tax rate, or State income tax rate. Provides that the Commission shall review and, by order, approve or approve as modified the surcharge within 180 days after the date on which it is filed.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public utilities.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Public Utilities Act is amended by adding Section 9-220.2 as follows:

(220 ILCS 5/9-220.2)

Sec. 9-220.2. Water and sewer surcharges authorized.

(a) The Commission may authorize a water or sewer utility to file a surcharge which adjusts rates and charges to provide for recovery of (i) the cost of purchased water, (ii) the cost of purchased sewage treatment service, (iii) other costs which fluctuate for reasons beyond the utility's control or are difficult to predict, or (iv) costs associated with an investment in qualifying infrastructure plant, independent of any other matters related to the utility's revenue requirement. A surcharge approved under this Section can operate on an historical or a prospective basis.

(a-5) The Commission shall authorize a water or sewer utility to file a surcharge that adjusts rates and charges to provide for recovery of the costs of any increase in the water or sewer utility's gross receipts tax rate set forth in Section 2-202 of this Act, federal income tax rate, or State income tax rate.

(b) For purposes of this Section, "costs associated with an investment in qualifying infrastructure plant" include a return on the investment in and depreciation expense related to plant items or facilities (including, but not limited to, replacement mains, meters, services, and hydrants) which (i) are not reflected in the rate base used to establish the utility's base rates and (ii) are non-revenue producing. For purposes of this Section, a "non-revenue producing facility" is one that is not constructed or installed for the purpose of serving a new customer.

(c) On a periodic basis, the Commission shall initiate hearings to reconcile amounts collected under each surcharge authorized pursuant to this Section with the actual prudently incurred costs recoverable for each annual period during which the surcharge was in effect. In the case of a surcharge for the recovery of costs under subsection (a-5) of this Section, the Commission shall review and, by order, approve or approve as modified the surcharge within 180 days after the date on which the utility filed under this Section.

(Source: P.A. 91-638, eff. 1-1-00.)