(65 ILCS 5/11-117-2) (from Ch. 24, par. 11-117-2)
Sec. 11-117-2.
The term "public utility," when used in this Division 117,
means and includes any plant, equipment, or property, and any franchise,
license, or permit, used or to be used (1) for or in connection with the
transportation of persons or property, or the conveyance of telegraph or
telephone messages; or (2) for the production, storage, transmission, sale,
delivery, or furnishing of cold, heat, light, power, water, or for the
conveyance of oil or gas by pipe lines; or (3) for the storage or
warehousing of goods; or (4) for the conduct of the business of a
wharfinger.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/11-117-3) (from Ch. 24, par. 11-117-3)
Sec. 11-117-3.
No municipality shall proceed to acquire or construct
any public utility under the provisions of this Division 117 until an
ordinance of the corporate authorities providing therefor has been duly
passed. This ordinance shall set forth the action proposed, shall
describe the plant, equipment, and property proposed to be acquired or
constructed, and shall provide for the issuance of bonds, mortgage
certificates, or special assessment bonds, as authorized in this
Division 117.
This ordinance shall not become effective until the question of its
adoption is submitted to a referendum vote of the electors of the
municipality. The municipal clerk shall certify the question for submission
to the vote of the electors of the
municipality upon an initiating ordinance adopted by the corporate authorities.
The question
shall be in substantially the following form:
Shall the ordinance (stating YESthe nature of the proposed ordinance) be adopted? NO
If a majority of the electors voting on the question of the adoption
of the proposed ordinance vote in favor thereof, the ordinance shall
thereupon become a valid and binding ordinance of the municipality.
Prior to the referendum upon this ordinance, the municipal clerk shall
have the ordinance published at least once in one or more newspapers
published in the municipality, or, if no newspaper is published therein,
then in one or more newspapers with a general circulation within the
municipality. This publication shall be not more than 30 nor less than
15 days in advance of the election.
(Source: P.A. 81-1489.)
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(65 ILCS 5/11-117-4) (from Ch. 24, par. 11-117-4)
Sec. 11-117-4.
No municipality shall proceed to operate for hire any public
utility for the use or benefit of private consumers or users, or charge for
such consumption or use, unless the proposition to operate has first been
submitted to the electors of the municipality as a separate proposition and
approved by a majority of those voting thereon. The proposition shall be
submitted in accordance with the provisions of Section 11-117-3. But any
municipality, without such submission and approval, may sell for heat,
light or power within or without the corporate limits of the municipality,
electricity generated in any electric lighting plant owned and operated by
the municipality for the municipality's own use. Also any municipality,
without such submission and approval, may sell water within and outside the
corporate limits of the municipality from any water plant owned and
operated by the municipality, and for this purpose shall have power to
acquire by agreement, purchase or condemnation, rights of way not more than
35 miles beyond its corporate limits in the streets, alleys or other public
ways of any city, village or incorporated town or in unincorporated
territory, even though such city, village or incorporated town or
unincorporated territory to be served is not contiguous to the
municipality, convenient and necessary for this purpose and to lay mains
and construct and operate pumping stations, reservoirs and other necessary
appurtenances therein. Provided, further, that where such municipality has
laid mains and constructed and operated pumping stations, reservoirs and
other necessary appurtenances, it may enter into contracts at a higher
water rate than the existing metered rate for like consumers within the
municipality, to allow the municipality to obtain a fair return to cover
the cost of financing, constructing, operating and maintaining the improved
facilities, and in the event such rates are not agreed upon by the parties,
such rates shall be fixed and determined by the circuit court of the county
in which the municipality which has financed, constructed, operated and
maintained the improved facilities is located; but this proviso shall not
impair the right of a municipal corporation to obtain water at the existing
metered rate for like consumers as is provided in Section 26 of "An Act to
create sanitary districts and to remove obstructions in the Des Plaines and
Illinois Rivers", approved May 29, 1889, as heretofore and hereafter
amended.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/11-117-5) (from Ch. 24, par. 11-117-5)
Sec. 11-117-5.
No ordinance authorizing the lease of any public utility
owned by a municipality for a longer period than 5 years, nor any ordinance
renewing any such lease, shall go into effect until the expiration of 30
days after its passage. The publication of the ordinance shall be accompanied
by a notice of (1) the specific number of voters required to sign a petition
requesting the question of authorizing the lease or renewing the lease of
a public utility owned by a municipality for more than 5 years to be submitted
to the electors; (2) the time in which such petition must be filed; and
(3) the date of the prospective referendum. The municipal clerk shall provide
a petition form to any individual requesting one. If, within this 30 days,
there is filed with the municipal clerk of the municipality a petition
signed by electors of the municipality equal in number to 10% or more of
the number of registered voters in the municipality, asking that the
ordinance be submitted to popular vote, then the ordinance
shall not go into effect unless the question of its adoption is first
submitted to the electors of the municipality and approved by a majority of
those voting thereon. The question shall be submitted in accordance with
the provisions of Section 11-117-3.
(Source: P.A. 87-767.)
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(65 ILCS 5/11-117-6) (from Ch. 24, par. 11-117-6)
Sec. 11-117-6.
(a) Any municipality may incorporate in any grant to a
public
utility company reservation of the right on the part of the municipality to
take over all or any part of the property, plant, or equipment used in the
operation of that public utility company, at or before the expiration of
the grant, upon such terms and conditions as may be provided in the grant.
Any municipality also may provide in any such grant that if such a reserved
right is not exercised by the municipality, and if the municipality grants
the right to another person to operate a utility in the streets and parts
of streets occupied by its grantee under the former grant, the new grantee
shall purchase and take over the property located in those streets and
parts of streets upon the terms which the municipality might have taken it
over.
(b) Except as provided in Sections 11-117-1.1 and 11-117-7.1, any
municipality that owns or operates a municipal electric utility shall have the
exclusive right to provide electric service to all customers within its
municipal limits and to customers at metered locations outside its municipal
limits that it is serving on the effective date of this amendatory Act of 1996.
However, an investor-owned public utility providing electric service to
customers at metered locations within the municipal limits on the effective
date of this amendatory Act of 1996 or to customers at metered locations that
are annexed by the municipality after the effective date of this amendatory Act
of 1996 may continue to provide service to those residential customers at such
metered locations and
shall
continue to provide service to those nonresidential customers at such metered
locations within
the
municipal limits on the effective date of this amendatory Act of 1996.
In addition, an investor-owned public utility providing electric service to
nonresidential customers at metered locations in areas annexed after the
effective date of this amendatory Act of 1996 shall continue to provide service
to those nonresidential customers at such metered locations for a period of 2
years after the date of
annexation.
After the 2-year period,
the
investor-owned public utility may continue to provide service to those
nonresidential customers. At any time during this 2-year period the
nonresidential customer may apply for service from a municipal utility
and the
investor-owned public utility shall promptly and consistent with
prudent utility practice facilitate such transfer to be effective as soon as
practicable upon the expiration of the 2-year period.
(c) A municipality that owns or operates a municipal natural gas utility
shall have the exclusive right to provide natural gas service to all customers
at metered locations that it is serving on the effective date of this
amendatory Act of 1996, whether those customers are within the municipal limits
of the municipality or at metered locations outside the municipal limits.
However, an investor-owned public utility providing natural gas service to
customers at metered locations within the municipal limits on the effective
date of this amendatory Act of 1996 or to customers at metered locations that
are annexed by the municipality after the effective date of this amendatory Act
of 1996 may continue to provide service to those customers.
(d) Notwithstanding subsections (b) and (c) of this Section, any
municipality may enter into an agreement with or grant a franchise to any
public utility defining the geographic areas in which each party, as between
themselves, may provide retail utility services, and the agreement or
franchise may provide for exclusive or non-exclusive service territories, or
both,
for the parties. An agreement entered into under this Section may cover
geographic areas both within and outside the corporate limits of a
municipality. Any agreement entered into under this subsection which provides
for exclusive service territories shall be subject to approval by the Illinois
Commerce Commission. The Illinois Commerce Commission's jurisdiction and
authority over municipalities under this subsection shall be strictly limited
to the approval of the agreement. Nothing in this subsection (d) shall be
construed to give a municipality the authority to grant to a public utility the
right to provide utility service in areas other than those for which the public
utility holds a certificate of public convenience and necessity from the
Illinois Commerce Commission.
(e) Any dispute between a municipality and a public utility regarding retail
utility services to a customer and any dispute regarding enforcement or
interpretation of any agreement entered into or franchise granted under this
Section shall be brought in the circuit court of the County in which the
municipality is located, and the circuit courts of this State shall have the
jurisdiction and authority to determine the rights of the parties in those
matters.
(f) The provisions of this Section are severable under Section 1.31 of the
Statute on Statutes.
(Source: P.A. 89-523, eff. 7-19-96.)
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(65 ILCS 5/11-117-7) (from Ch. 24, par. 11-117-7)
Sec. 11-117-7.
Any municipality may acquire any public utility or any part
thereof, authorized or operating in the municipality under a license,
permit, or franchise, or operating in the municipality without any license,
permit, or franchise, by any agreement with the public utility, or it may
proceed to procure the condemnation of the same in the manner provided by
law for the taking and condemning of private property for public use.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/11-117-7.1)
Sec. 11-117-7.1.
Service rights in annexed areas; acquiring electric
facilities after annexation.
(a) Consistent with the first paragraph of Section 5, and with Section 14,
of the Electric Supplier Act, an electric cooperative (as defined in the
Electric Supplier Act) providing service in an area which is annexed to or
otherwise becomes located within an incorporated municipality that owns and
operates a municipal utility for the purpose of providing retail electric
services shall have the right to continue to provide service without
authorization by the incorporated municipality to all existing premises being
served and may provide service to new premises located in such area
that can be served from
the cooperative's primary distribution facilities in existence upon the date
such area is annexed to or otherwise becomes located within an incorporated
municipality. If necessary, the cooperative may maintain or upgrade existing
facilities or rebuild facilities to provide adequate and reliable service to
customers served or to be served as permitted under this Section. The
cooperative shall not extend primary distribution facilities into or within
such area unless the cooperative is or shall become authorized to do so by the
incorporated municipality.
(b) Customers receiving service from an electric cooperative at premises
located in an area that is annexed to or otherwise becomes located within an
incorporated municipality that owns and operates a municipal utility for the
purpose of providing retail electric service may elect to take service from
either the cooperative or the municipality. Customers at new
premises that may be served by an electric cooperative under subsection (a)
may, at the time of connection, elect to take service from either the electric
cooperative or the municipality. In all instances the customer's election of
service supplier shall be binding upon the customer only for such time as the
customer requires service at that premises. Subsequent customers at such
premises shall have the same right of selection; provided, however, an electric
cooperative providing service in an area which is annexed to or otherwise
becomes located within an incorporated municipality is not obligated to provide
retail electric service except as required under the Electric Supplier Act or
the terms of a franchise granted by the incorporated municipality.
(c) If any facilities located in such area are or become unnecessary to
provide service to a customer or customers as a result of a customer's election
to receive service from either the electric cooperative or the municipality,
the owner of the facilities may require the other supplier of electric service
to acquire the facilities for an amount agreed upon by the parties or an amount
equal to the present-day reproduction cost, new, of the facilities being
acquired, less depreciation computed on a straight-line basis according to the
seller's standard schedule of depreciation, multiplied by the factor 1.1, but
no less than the cost to disconnect and remove the facilities if the supplier
acquiring the facilities requires them to be removed by the selling supplier.
(d) The provisions of this Section are severable under Section 1.31 of the
Statute on Statutes.
(Source: P.A. 88-335.)
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