Illinois General Assembly - Illinois Compiled Statutes

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220 ILCS 5/9-220.2

(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.

(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.

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