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90_HB0986
65 ILCS 5/11-117-3 from Ch. 24, par. 11-117-3
65 ILCS 5/11-117-4 from Ch. 24, par. 11-117-4
65 ILCS 5/11-117-5 from Ch. 24, par. 11-117-5
65 ILCS 5/11-117-8 from Ch. 24, par. 11-117-8
65 ILCS 5/11-117-9 from Ch. 24, par. 11-117-9
65 ILCS 5/11-117-14 rep.
220 ILCS 5/8-405.2 new
220 ILCS 5/9-245 new
Amends the Illinois Municipal Code to abolish referendum
requirements in connection with municipal operation of
utilities. Amends the Public Utilities Act. Requires the
Illinois Commerce Commission to establish a program for the
wheeling of electricity on behalf of municipal customers.
Provides that the Commission shall establish by rule the
terms and conditions, if any, under which a utility may
recover the costs of investment in facilities rendered
unnecessary because of wheeling. Effective immediately.
LRB9002508PTcw
LRB9002508PTcw
1 AN ACT concerning municipal electrical service, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Municipal Code is amended by
6 changing Sections 11-117-3, 11-117-4, 11-117-5, 11-117-8, and
7 11-117-9 as follows:
8 (65 ILCS 5/11-117-3) (from Ch. 24, par. 11-117-3)
9 Sec. 11-117-3. No municipality shall proceed to acquire
10 or construct any public utility under the provisions of this
11 Division 117 until an ordinance of the corporate authorities
12 providing therefor has been duly passed. This ordinance shall
13 set forth the action proposed, shall describe the plant,
14 equipment, and property proposed to be acquired or
15 constructed, and shall provide for the issuance of bonds,
16 mortgage certificates, or special assessment bonds, as
17 authorized in this Division 117.
18 This ordinance shall not become effective until the
19 question of its adoption is submitted to a referendum vote of
20 the electors of the municipality. The municipal clerk shall
21 certify the question for submission to the vote of the
22 electors of the municipality upon an initiating ordinance
23 adopted by the corporate authorities.
24 The question shall be in substantially the following
25 form:
26 -------------------------------------------------------------
27 Shall the ordinance (stating YES
28 the nature of the proposed --------------------------
29 ordinance) be adopted? NO
30 -------------------------------------------------------------
31 If a majority of the electors voting on the question of
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1 the adoption of the proposed ordinance vote in favor thereof,
2 the ordinance shall thereupon become a valid and binding
3 ordinance of the municipality.
4 Prior to the referendum upon this ordinance, the
5 municipal clerk shall have the ordinance published at least
6 once in one or more newspapers published in the municipality,
7 or, if no newspaper is published therein, then in one or more
8 newspapers with a general circulation within the
9 municipality. This publication shall be not more than 30 nor
10 less than 15 days in advance of the election.
11 (Source: P.A. 81-1489.)
12 (65 ILCS 5/11-117-4) (from Ch. 24, par. 11-117-4)
13 Sec. 11-117-4. No municipality shall proceed to operate
14 for hire any public utility for the use or benefit of private
15 consumers or users, or charge for such consumption or use,
16 unless the proposition to operate has first been submitted to
17 the electors of the municipality as a separate proposition
18 and approved by a majority of those voting thereon. The
19 proposition shall be submitted in accordance with the
20 provisions of Section 11-117-3. But any A municipality,
21 without such submission and approval, may sell for heat,
22 light or power within or without the corporate limits of the
23 municipality, electricity generated in any electric lighting
24 plant owned and operated by the municipality for the
25 municipality's own use. Also any municipality, without such
26 submission and approval, may sell water within and outside
27 the corporate limits of the municipality from any water plant
28 owned and operated by the municipality, and for this purpose
29 shall have power to acquire by agreement, purchase or
30 condemnation, rights of way not more than 35 miles beyond its
31 corporate limits in the streets, alleys or other public ways
32 of any city, village or incorporated town or in
33 unincorporated territory, even though such city, village or
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1 incorporated town or unincorporated territory to be served is
2 not contiguous to the municipality, convenient and necessary
3 for this purpose and to lay mains and construct and operate
4 pumping stations, reservoirs and other necessary
5 appurtenances therein. Provided, further, that where such
6 municipality has laid mains and constructed and operated
7 pumping stations, reservoirs and other necessary
8 appurtenances, it may enter into contracts at a higher water
9 rate than the existing metered rate for like consumers within
10 the municipality, to allow the municipality to obtain a fair
11 return to cover the cost of financing, constructing,
12 operating and maintaining the improved facilities, and in the
13 event such rates are not agreed upon by the parties, such
14 rates shall be fixed and determined by the circuit court of
15 the county in which the municipality which has financed,
16 constructed, operated and maintained the improved facilities
17 is located; but this proviso shall not impair the right of a
18 municipal corporation to obtain water at the existing metered
19 rate for like consumers as is provided in Section 26 of "An
20 Act to create sanitary districts and to remove obstructions
21 in the Des Plaines and Illinois Rivers", approved May 29,
22 1889, as heretofore and hereafter amended.
23 (Source: Laws 1961, p. 576.)
24 (65 ILCS 5/11-117-5) (from Ch. 24, par. 11-117-5)
25 Sec. 11-117-5. No ordinance authorizing the lease of any
26 public utility owned by a municipality for a longer period
27 than 5 years, nor any ordinance renewing any such lease,
28 shall go into effect until the expiration of 30 days after
29 its passage. The publication of the ordinance shall be
30 accompanied by a notice of (1) the specific number of voters
31 required to sign a petition requesting the question of
32 authorizing the lease or renewing the lease of a public
33 utility owned by a municipality for more than 5 years to be
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1 submitted to the electors; (2) the time in which such
2 petition must be filed; and (3) the date of the prospective
3 referendum. The municipal clerk shall provide a petition
4 form to any individual requesting one. If, within this 30
5 days, there is filed with the municipal clerk of the
6 municipality a petition signed by electors of the
7 municipality equal in number to 10% or more of the number of
8 registered voters in the municipality, asking that the
9 ordinance be submitted to popular vote, then the ordinance
10 shall not go into effect unless the question of its adoption
11 is first submitted to the electors of the municipality and
12 approved by a majority of those voting thereon. The question
13 shall be submitted in accordance with the provisions of
14 Section 11-117-3.
15 (Source: P.A. 87-767.)
16 (65 ILCS 5/11-117-8) (from Ch. 24, par. 11-117-8)
17 Sec. 11-117-8. For the purpose of acquiring any public
18 utility, or any part thereof, or property necessary or
19 appropriate for the operation of any public utility, either
20 by purchase, condemnation, or construction, any municipality
21 may borrow money and issue negotiable bonds therefor,
22 pledging the faith and credit of the municipality. But no
23 such bonds shall be issued unless the proposition to issue
24 the bonds has first been submitted to the electors of the
25 municipality and approved by a majority of those voting
26 thereon. The proposition shall be submitted in accordance
27 with the provisions of Section 11-117-3. No such bonds shall
28 be issued in an amount in excess of the cost of the
29 municipality of the property for which the bonds are issued,
30 and 10% of that cost in addition thereto.
31 (Source: Laws 1961, p. 576.)
32 (65 ILCS 5/11-117-9) (from Ch. 24, par. 11-117-9)
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1 Sec. 11-117-9. For the purpose of acquiring any public
2 utility, or any part thereof, or property necessary or
3 appropriate for the operation of any public utility, either
4 by purchase, condemnation or construction, any municipality
5 may issue and dispose of interest bearing certificates,
6 hereinafter called public utility certificates. Under no
7 circumstances shall these public utility certificates be or
8 become an obligation or liability of the municipality or
9 payable out of any general fund thereof. They shall be
10 payable solely out of the revenue or income to be derived
11 from the public utility for the acquisition of which they
12 were issued. Such certificates shall not be issued and
13 secured on public utility property in an amount in excess of
14 the cost of the municipality of that property and 10% of that
15 cost in addition thereto.
16 In order to secure the payment of these public utility
17 certificates and the interest thereon, the municipality may
18 convey, by way of mortgage or deed of trust, any or all of
19 the public utility property acquired or to be acquired
20 through the issuance thereof. Such a mortgage or deed of
21 trust shall be executed in such manner as may be directed by
22 law for the acknowledgment and recording of mortgages of real
23 estate, and may contain such provisions and conditions not in
24 conflict with the provisions of this Division 117 as may be
25 deemed necessary to secure the payment of the public utility
26 certificates described therein. Any such mortgage or deed of
27 trust may grant a privilege or right to maintain and operate
28 the public utility property covered thereby, for a period not
29 exceeding 20 years from and after the date that that property
30 may come into the possession of any person as the result of
31 foreclosure proceedings. Such a privilege or right may
32 include the right to fix the rates or charges which the
33 person securing the property as the result of foreclosure
34 proceedings shall be entitled to charge in the operation of
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1 that property for a period not exceeding 20 years.
2 Whenever and as often as default is made in the payment
3 of any public utility certificate, issued and secured by a
4 specific mortgage or deed of trust, or in the payment of the
5 interest thereon when due, and the default has continued for
6 the space of 12 months after notice thereof has been given to
7 the mayor, and to the comptroller, if any, it is lawful for
8 the mortgagee or trustee, upon the request of the holders of
9 a majority in amount of the certificates issued and
10 outstanding under the mortgage or deed of trust, to declare
11 the whole of the principal of all of the certificates, which
12 are unpaid, to be at once due and payable, and to proceed to
13 foreclose the mortgage or deed of trust in any court of
14 competent jurisdiction. At a foreclosure sale, the mortgagee
15 or the holders of the unpaid certificates may become the
16 purchaser or purchasers of the property, rights and
17 privileges sold, if he or they are the highest bidders. Any
18 public utility acquired under any such foreclosure shall be
19 subject to regulation by the corporate authorities of the
20 municipality to the same extent as if the right to construct,
21 maintain, and operate that property had been acquired through
22 a direct grant without the intervention of foreclosure
23 proceedings.
24 However, no public utility certificates shall ever be
25 issued by any municipality under the provisions of this
26 Division 117 unless the question of the adoption of the
27 ordinance of the corporate authorities authorizing the
28 issuance thereof has first been submitted to the electors of
29 the municipality and approved by a majority of the electors
30 of the municipality voting upon the question. The question
31 shall be submitted in accordance with the provisions of
32 Section 11-117-3.
33 (Source: Laws 1961, p. 576.)
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1 (65 ILCS 5/11-117-14 rep.)
2 Section 10. The Illinois Municipal Code is amended by
3 repealing Section 11-117-14.
4 Section 15. The Public Utilities Act is amended by
5 adding Sections 8-405.2 and 9-245 as follows:
6 (220 ILCS 5/8-405.2 new)
7 Sec. 8-405.2. Wheeling.
8 (a) The Commission shall establish a program to begin on
9 July 1, 1997 to allow wheeling of electricity for municipal
10 customers.
11 (b) "Wheeling" means the provision of transmission
12 service to enable a public utility that furnishes electric
13 service to receive power from a remote source using the lines
14 of a transmitting utility.
15 (c) A municipality may apply for a wheeling order to
16 receive electricity from a source other than the utility in
17 the service area of which the municipality is located. The
18 Commission shall determine whether to authorize a
19 municipality to obtain electricity by wheeling.
20 (d) Within 6 months after an application is filed with
21 it, the Commission shall enter an order authorizing or
22 refusing to authorize wheeling.
23 (e) In considering an application the Commission shall
24 examine the following: (i) the existing and potential
25 capacity for wheeling; (ii) the size of the transaction;
26 (iii) the length of the proposed contract; (iv) backup
27 service; (v) the obligation to serve; and (vi) the effect on
28 captive customers.
29 (f) An order of the Commission authorizing intrastate
30 wheeling: (i) shall require nondiscriminatory treatment of
31 all parties and customers; (ii) shall require or provide for
32 cost based and nondiscriminatory wheeling tariffs; and (iii)
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1 may require or authorize the construction of new transmission
2 lines and modification of existing transmission lines to
3 facilitate wheeling if the net costs are paid by the wheeling
4 applicant and the transmitting utility is unable to
5 demonstrate a significant adverse impact on its system.
6 (220 ILCS 5/9-245 new)
7 Sec. 9-245. Rates; alternate sources of power. The
8 Commission shall not consider any utility's rates, charges,
9 classification, or services to be just and reasonable if
10 those rates, charges, classifications, or services are
11 designed to compensate the utility for a shortfall in the
12 utility's gross revenues when a municipality acquires
13 electric power from a source other than the utility. The
14 Commission shall issue rules establishing the terms and
15 conditions, if any, under which a utility engaged in wheeling
16 electric power to a municipality may recover the costs of
17 investment in facilities rendered unnecessary because of
18 wheeling.
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.