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| [ House Amendment 002 ] |
91_HB0613ham001
LRB9102391JSpcam
1 AMENDMENT TO HOUSE BILL 613
2 AMENDMENT NO. . Amend House Bill 613 by replacing
3 the title with the following:
4 "AN ACT to amend the Public Utilities Act by changing
5 Sections 5-104, 6-102, 13-301, 13-506.1, and 13-507 and
6 adding Section 10-114."; and
7 by replacing everything after the enacting clause with the
8 following:
9 "Section 5. The Public Utilities Act is amended by
10 changing Sections 5-104, 6-102, 13-301, 13-506.1, and 13-507
11 and adding Section 10-114 as follows:
12 (220 ILCS 5/5-104) (from Ch. 111 2/3, par. 5-104)
13 Sec. 5-104. Depreciation accounts.
14 (a) The Commission shall have power, after hearing, to
15 require any or all public utilities, except electric public
16 utilities and telecommunications carriers as defined by
17 Section 13-202 of this Act, to keep such accounts as will
18 adequately reflect depreciation, obsolescence and the
19 progress of the arts. The Commission may, from time to time,
20 ascertain and determine and by order fix the proper and
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1 adequate rate of depreciation of the several classes of
2 property for each public utility; and each public utility
3 shall conform its depreciation accounts to the rates so
4 ascertained, determined and fixed.
5 (b) The Commission shall have the power, after hearing,
6 to require any or all electric public utilities and
7 telecommunications carriers to keep such accounts as will
8 adequately reflect depreciation, obsolescence, and the
9 progress of the arts. The Commission may, from time to time,
10 ascertain and determine and by order fix the proper and
11 adequate rate of depreciation of the several classes of
12 property for an each electric public utility and a
13 telecommunications carrier; and each electric public utility
14 and telecommunications carrier shall thereafter, absent
15 further order of the Commission, conform its depreciation
16 accounts to the rates so ascertained, determined and fixed
17 until at least the end of the first full calendar year
18 following the date of such determination.
19 (c) An electric public utility or a telecommunications
20 carrier may from time to time alter the annual rates of
21 depreciation, which for purposes of this subsection (c) and
22 subsection (d) shall include amortization, that it applies to
23 its several classes of assets so long as the rates are
24 consistent with generally accepted accounting principles.
25 The electric public utility or telecommunications carrier
26 shall file a statement with the Commission which shall set
27 forth the new rates of depreciation and which shall contain a
28 certification by an independent certified public accountant
29 that the new rates of depreciation are consistent with
30 generally accepted accounting principles. Upon the filing of
31 such statement, the new rates of depreciation shall be deemed
32 to be approved by the Commission as the rates of depreciation
33 to be applied thereafter by the electric public utility or
34 telecommunications carrier as though an order had been
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1 entered pursuant to subsection (b).
2 (d) In any proceeding conducted pursuant to Section
3 9-201 or 9-202 to set an electric public utility's or
4 telecommunications carrier's rates for service, the
5 Commission may determine not to use, in determining the
6 depreciation expense component of the public utility's or
7 telecommunications carrier's rates for service, the rates of
8 depreciation established pursuant to subsection (c), if the
9 Commission in that proceeding finds based on the record that
10 different rates of depreciation are required to adequately
11 reflect depreciation, obsolescence and the progress of the
12 arts, and fixes by order and uses for purposes of that
13 proceeding new rates of depreciation to be thereafter
14 employed by the electric public utility or telecommunications
15 carrier until the end of the first full calendar year
16 following the date of the determination and thereafter until
17 altered in accordance with subsection (b) or (c) of this
18 Section.
19 (Source: P.A. 90-561, eff. 12-16-97.)
20 (220 ILCS 5/6-102) (from Ch. 111 2/3, par. 6-102)
21 Sec. 6-102. Authorization of issues of stock.
22 (a) Subject to the provisions of this Act and of the
23 order of the Commission issued as provided in this Act, a
24 public utility may issue stocks and stock certificates, and
25 bonds, notes and other evidences of indebtedness payable at
26 periods of more than 12 months after the date thereof for any
27 lawful purpose. However, such public utility shall first have
28 secured from the Commission an order authorizing such issue
29 and stating the amount thereof and the purpose or purposes to
30 which the issue or the proceeds thereof are to be applied,
31 and that in the opinion of the Commission, the money,
32 property or labor to be procured or paid for by such issue is
33 reasonably required for the purpose or purposes specified in
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1 the order.
2 (b) The provisions of this subsection (b) shall apply
3 only to (1) any issuances of stock in a cumulative amount,
4 exclusive of any issuances referred to in item (3), that are
5 10% or more in a calendar year or 20% or more in a 24-month
6 period of the total common stockholders' equity or of the
7 total amount of preferred stock outstanding, as the case may
8 be, of the public utility, and (2) to any issuances of bonds,
9 notes or other evidences of indebtedness in a cumulative
10 principal amount, exclusive of any issuances referred to in
11 item (3), that are 10% or more in a calendar year or 20% or
12 more in a 24-month period of the aggregate principal amount
13 of bonds, notes and other evidences of indebtedness of the
14 public utility outstanding, all as of the date of the
15 issuance, but shall not apply to (3) any issuances of stock
16 or of bonds, notes or other evidences of indebtedness 90% or
17 more of the proceeds of which are to be used by the public
18 utility for purposes of refunding, redeeming or refinancing
19 outstanding issues of stock, bonds, notes or other evidences
20 of indebtedness. To enable it to determine whether it will
21 issue the order required by subsection (a) of this Section,
22 the Commission may hold a hearing and may make such
23 additional inquiry or investigation, and examine such
24 witnesses, books, papers, accounts, documents and contracts
25 and require the filing of such data as it may deem of
26 assistance. The public utility may be required by the
27 Commission to disclose every interest of the directors of
28 such public utility in any transaction under investigation.
29 The Commission shall have power to investigate all such
30 transactions and to inquire into the good faith thereof, to
31 examine books, papers, accounts, documents and contracts of
32 public utilities, construction or other companies or of firms
33 or individuals with whom the public utility shall have had
34 financial transactions, for the purpose of enabling it to
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1 verify any statements furnished, and to examine into the
2 actual value of property acquired by or services rendered to
3 such public utility. Before issuing its order, the
4 Commission, when it is deemed necessary by the Commission,
5 shall make an adequate physical valuation of all property of
6 the public utility, but a valuation already made under proper
7 public supervision may be adopted, either in whole or in
8 part, at the discretion of the Commission; and shall also
9 examine all previously authorized or outstanding securities
10 of the public utility, and fixed charges attached thereto. A
11 statement of the results of such physical valuation, and a
12 statement of the character of all outstanding securities,
13 together with the conditions under which they are held, shall
14 be included in the order. The Commission may require that
15 such information or such part thereof as it thinks proper,
16 shall appear upon the stock, stock certificate, bond, note or
17 other evidence of indebtedness authorized by its order. The
18 Commission may by its order grant permission for the issue of
19 such stock certificates, or bonds, notes or other evidences
20 of indebtedness in the amount applied for, or in a lesser
21 amount, or not at all, and may attach to the exercise of its
22 permission such condition or conditions as it may deem
23 reasonable and necessary. Nothing in this Section shall
24 prevent a public utility from seeking, nor the Commission
25 from approving, a shelf registration plan for issuing
26 securities over a reasonable period in accordance with
27 regulations established by the United States Securities and
28 Exchange Commission. Any securities issued pursuant to an
29 approved shelf registration plan need not be further approved
30 by the Commission so long as they are in compliance with the
31 approved shelf registration plan. The Commission shall have
32 the power to refuse its approval of applications to issue
33 securities, in whole or in part, upon a finding that the
34 issue of such securities would be contrary to public
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1 interest. The Commission may also require the public utility
2 to compile for the information of its shareholders such facts
3 in regard to its financial transactions, in such form as the
4 Commission may direct.
5 No public utility shall, without the consent of the
6 Commission, apply the issue of any stock or stock
7 certificates, or bond, note or other evidence of
8 indebtedness, which was issued pursuant to an order of the
9 Commission entered pursuant to this subsection (b), or any
10 part thereof, or any proceeds thereof, to any purpose not
11 specified in the Commission's order or to any purpose
12 specified in the Commission's order in excess of the amount
13 authorized for such purpose; or issue or dispose of the same
14 on any terms less favorable than those specified in such
15 order, or a modification thereof. The Commission shall have
16 the power to require public utilities to account for the
17 disposition of the proceeds of all sales of stocks and stock
18 certificates, and bonds, notes and other evidences of
19 indebtedness, which were issued pursuant to an order of the
20 Commission entered pursuant to this subsection (b), in such
21 form and detail as it may deem advisable, and to establish
22 such rules and regulations as it may deem reasonable and
23 necessary to insure the disposition of such proceeds for the
24 purpose or purposes specified in its order.
25 (c) A public utility may issue notes, for proper
26 purposes, and not in violation of any provision of this Act
27 or any other Act, payable at periods of not more than 12
28 months after the date of issuance of the same, without the
29 consent of the Commission; but no such note shall, in whole
30 or in part, be renewed or be refunded from the proceeds of
31 any other such note or evidence of indebtedness from time to
32 time without the consent of the Commission for an aggregate
33 period of longer than 2 years. A "telecommunications carrier"
34 as that term is defined by Section 13-202 of this Act is
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1 exempt from the requirements of this subsection (c).
2 (d) Any issuance of stock or of bonds, notes or other
3 evidences of indebtedness, other than issuances of notes
4 pursuant to subsection (c) of this Section, which is not
5 subject to subsection (b) of this Section, shall be regulated
6 by the Commission as follows: the public utility shall file
7 with the Commission, at least 15 days before the date of the
8 issuance, an informational statement setting forth the type
9 and amount of the issue and the purpose or purposes to which
10 the issue or the proceeds thereof are to be applied. Prior
11 to the date of the issuance specified in the public utility's
12 filing, the Commission, if it finds that the issuance is not
13 subject to subsection (b) of this Section, shall issue a
14 written order in conformance with subsection (a) of this
15 Section authorizing the issuance. Notwithstanding any other
16 provisions of this Act, the Commission may delegate its
17 authority to enter the order required by this subsection (d)
18 to a hearing examiner.
19 (e) The Commission shall have no power to authorize the
20 capitalization of the right to be a corporation, or to
21 authorize the capitalization of any franchise, license, or
22 permit whatsoever or the right to own, operate or enjoy any
23 such franchise, license, or permit, in excess of the amount
24 (exclusive of any tax or annual charge) actually paid to the
25 State or to a political subdivision thereof as the
26 consideration for the grant of such franchise, license,
27 permit or right; nor shall any contract for consolidation or
28 lease be capitalized, nor shall any public utility hereafter
29 issue any bonds, notes or other evidences of indebtedness
30 against or as a lien, upon any contract for consolidation or
31 merger.
32 (f) The provisions of this Section shall not apply to
33 public utilities which are not corporations duly incorporated
34 under the laws of this State to the extent that any such
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1 public utility may issue stock, bonds, notes or other
2 evidences of indebtedness not directly or indirectly
3 constituting or creating a lien or charge on, or right to
4 profits from, any property used or useful in rendering
5 service within this State. Nothing in this Section or in
6 Section 6-104 of this Act shall be construed to require a
7 common carrier by railroad subject to Part I of the
8 Interstate Commerce Act, being part of an Act of the 49th
9 Congress of the United States entitled "An Act to Regulate
10 Commerce", as amended, to secure from the Commission
11 authority to issue or execute or deliver any conditional
12 sales contract or similar contract or instrument reserving or
13 retaining title in the seller for all or part of the purchase
14 price of equipment or property used or to be used for or in
15 connection with the transportation of persons or property.
16 (Source: P.A. 90-561, eff. 12-16-97.)
17 (220 ILCS 5/10-114 new)
18 Sec. 10-114. Resolution of proceedings. Notwithstanding
19 any other provision of this Act, the Commission shall resolve
20 all proceedings on the basis of written pleadings and
21 submissions that are verified or supported by affidavit with
22 the exception of proceedings arising under Section 13-515 of
23 this Act. Nothing herein shall preclude the Commission from
24 hearing oral argument in any proceeding.
25 (220 ILCS 5/13-301) (from Ch. 111 2/3, par. 13-301)
26 (Section scheduled to be repealed on July 1, 2001)
27 Sec. 13-301. Duties of the Commission. Consistent with
28 the findings and policy established in paragraph (a) of
29 Section 13-102 and paragraph (a) of Section 13-103, and in
30 order to ensure the attainment of such policies, the
31 Commission shall:
32 (a) participate in all federal programs intended to
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1 preserve or extend universal telecommunications service,
2 unless such programs would place cost burdens on Illinois
3 customers of telecommunications services in excess of the
4 benefits they would receive through participation, provided,
5 however, the Commission shall not approve or permit the
6 imposition of any surcharge or other fee designed to
7 subsidize or provide a waiver for subscriber line charges;
8 and shall report on such programs together with an assessment
9 of their adequacy and the advisability of participating
10 therein in its annual report to the General Assembly, or more
11 often as necessary;
12 (b) establish a program to monitor the level of
13 telecommunications subscriber connection within each exchange
14 in Illinois, and shall report the results of such monitoring
15 and any actions it has taken or recommends be taken to
16 maintain and increase such levels in its annual report to the
17 General Assembly, or more often if necessary;
18 (c) order all telecommunications carriers offering or
19 providing local exchange telecommunications service to
20 propose low-cost or budget service tariffs and any other rate
21 design or pricing mechanisms designed to facilitate customer
22 access to such telecommunications service, and shall after
23 notice and hearing, implement any such proposals which it
24 finds likely to achieve such purpose;
25 (d) investigate the necessity of and create, if
26 necessary, feasibility of establishing a fund or funds from
27 which eligible telecommunications carriers offering or
28 providing local exchange telecommunications service, whose
29 costs of providing telecommunications services such service
30 exceed the affordable rate average cost of providing such
31 services service in Illinois, can could receive revenues
32 intended to mitigate the price impact on customers resulting
33 from the high or rising cost of such services service;
34 provided, however, that to the extent such a fund or funds
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1 are established, the Commission shall require that the costs
2 of such funds be recovered from all telecommunications
3 carriers on a competitively neutral basis and shall include
4 the results and findings of such investigation together with
5 any recommendations for legislative action in its first
6 annual report to the General Assembly in 1986;
7 (e) Any telecommunications carrier providing local
8 exchange telecommunications service which offers to its local
9 exchange customers a choice of two or more local exchange
10 telecommunications service offerings shall provide, to any
11 such customer requesting it, once a year without charge, a
12 report describing which local exchange telecommunications
13 service offering would result in the lowest bill for such
14 customer's local exchange service, based on such customer's
15 calling pattern and usage for the previous 6 months. At
16 least once a year, each such carrier shall provide a notice
17 to each of its local exchange telecommunications service
18 customers describing the availability of this report and the
19 specific procedures by which customers may receive it. Such
20 report shall only be available to current and future
21 customers who have received at least 6 months of continuous
22 local exchange service from such carrier.
23 (Source: P.A. 87-445.)
24 (220 ILCS 5/13-506.1) (from Ch. 111 2/3, par. 13-506.1)
25 (Section scheduled to be repealed on July 1, 2001)
26 Sec. 13-506.1. Alternative forms of regulation for
27 noncompetitive services.
28 (a) Notwithstanding any of the rate-making provisions of
29 this Article or Article IX that are deemed to require rate of
30 return regulation, the Commission may implement alternative
31 forms of regulation in order to establish just and reasonable
32 rates for noncompetitive telecommunications services
33 including, but not limited to, price regulation, earnings
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1 sharing, rate moratoria, or a network modernization plan.
2 The Commission is authorized to adopt different forms of
3 regulation to fit the particular characteristics of different
4 telecommunications carriers and their service areas.
5 In addition to the public policy goals declared in
6 Section 13-103, the Commission shall consider, in determining
7 the appropriateness of any alternative form of regulation,
8 whether it will:
9 (1) reduce regulatory delay and costs over time;
10 (2) encourage innovation in services;
11 (3) promote efficiency;
12 (4) facilitate the broad dissemination of technical
13 improvements to all classes of ratepayers;
14 (5) enhance economic development of the State; and
15 (6) provide for fair, just, and reasonable rates.
16 (b) A telecommunications carrier providing
17 noncompetitive telecommunications services may petition the
18 Commission to regulate the rates or charges of its
19 noncompetitive services under an alternative form of
20 regulation. The telecommunications carrier shall submit with
21 its petition its plan for an alternative form of regulation.
22 The Commission shall review and may modify or reject the
23 carrier's proposed plan. The Commission also may initiate
24 consideration of alternative forms of regulation for a
25 telecommunications carrier on its own motion. The Commission
26 may approve the plan or modified plan and authorize its
27 implementation only if it finds, after notice and hearing,
28 that the plan or modified plan at a minimum:
29 (1) is in the public interest;
30 (2) will produce fair, just, and reasonable rates
31 for telecommunications services;
32 (3) responds to changes in technology and the
33 structure of the telecommunications industry that are, in
34 fact, occurring;
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1 (4) constitutes a more appropriate form of
2 regulation based on the Commission's overall
3 consideration of the policy goals set forth in Section
4 13-103 and this Section;
5 (5) specifically identifies how ratepayers will
6 benefit from any efficiency gains, cost savings arising
7 out of the regulatory change, and improvements in
8 productivity due to technological change;
9 (6) will maintain the quality and availability of
10 telecommunications services; and
11 (7) will not unduly or unreasonably prejudice or
12 disadvantage any particular customer class, including
13 telecommunications carriers.
14 (c) The initial An alternative regulation plan
15 applicable to a telecommunications carrier and approved under
16 this Section shall provide, as a condition for Commission
17 approval of the plan, that for the first 3 years the plan is
18 in effect with respect to the carrier, basic residence
19 service rates shall be no higher than those rates in effect
20 180 days before the filing of the plan. This provision shall
21 not be used as a justification or rationale for an increase
22 in basic service rates for any other customer class. For
23 purposes of this Section, "basic residence service rates"
24 shall mean monthly recurring charges for the
25 telecommunications carrier's lowest priced primary residence
26 network access lines, along with any associated untimed or
27 flat rate local usage charges. Nothing in this subsection
28 (c) shall preclude the Commission from approving an
29 alternative regulation plan that results in rate reductions
30 provided all the requirements of subsection (b) are satisfied
31 by the plan.
32 (d) Any alternative form of regulation granted for a
33 multi-year period under this Section shall provide for annual
34 or more frequent reporting to the Commission to document that
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1 the requirements of the plan are being properly implemented.
2 (e) Upon petition by the telecommunications carrier or
3 any other person or upon its own motion, the Commission may
4 rescind its approval of an alternative form of regulation if,
5 after notice and hearing, it finds that the conditions set
6 forth in subsection (b) of this Section can no longer be
7 satisfied. Any person may file a complaint alleging that the
8 rates charged by a telecommunications carrier under an
9 alternative form of regulation are unfair, unjust,
10 unreasonable, unduly discriminatory, or are otherwise not
11 consistent with the requirements of this Article; provided,
12 that the complainant shall bear the burden of proving the
13 allegations in the complaint.
14 (f) Nothing in this Section shall be construed to
15 authorize the Commission to render Sections 9-241, 9-250, and
16 13-505.2 inapplicable to noncompetitive services.
17 (Source: P.A. 87-856.)
18 (220 ILCS 5/13-507) (from Ch. 111 2/3, par. 13-507)
19 (Section scheduled to be repealed on July 1, 2001)
20 Sec. 13-507. Noncompetitive services. In any proceeding
21 permitting, approving, investigating, or establishing rates,
22 charges, classifications, or tariffs for telecommunications
23 services offered or provided by a telecommunications carrier
24 that offers or provides both noncompetitive and competitive
25 services, the Commission shall not allow any subsidy of
26 competitive services or nonregulated activities by
27 noncompetitive services. In the event that facilities are
28 utilized or expenses are incurred for the provision of both
29 competitive and noncompetitive services, the Commission shall
30 apportion the facilities and expenses between noncompetitive
31 services in the aggregate and competitive services in the
32 aggregate and shall allow or establish rates or charges for
33 the noncompetitive services which reflect only that portion
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1 of the facilities or expenses that it finds to be properly
2 and reasonably apportioned to noncompetitive services. An
3 apportionment of facilities or expenses between competitive
4 and noncompetitive services, together with any corresponding
5 rate changes, shall be made in general rate proceedings and
6 in other proceedings, including service classification
7 proceedings, that are necessary to ensure against any subsidy
8 of competitive services by noncompetitive services. The
9 Commission shall have the power to take or require such
10 action as is necessary to ensure that rates or charges for
11 noncompetitive services reflect only the value of facilities,
12 or portion thereof, used and useful, and the expenses or
13 portion thereof reasonably and prudently incurred, for the
14 provision of the noncompetitive services. The Commission may,
15 in such event, also establish, by rule, any additional
16 procedures, rules, regulations, or mechanisms necessary to
17 identify and properly account for the value or amount of such
18 facilities or expenses.
19 The Commission may establish, by rule, appropriate
20 methods for ensuring against cross-subsidization between
21 competitive services and noncompetitive services as required
22 under this Article, including appropriate methods for
23 calculating the long-run service incremental costs of
24 providing any telecommunications service and, when
25 appropriate, group of services and methods for apportioning
26 between noncompetitive services in the aggregate and
27 competitive services in the aggregate the value of facilities
28 utilized and expenses incurred to provide both competitive
29 and noncompetitive services, for example, common overheads
30 that are not accounted for in the long-run service
31 incremental costs of individual services or groups of
32 services. The Commission may order any telecommunications
33 carrier to conduct a long-run service incremental cost study
34 and to provide the results thereof to the Commission. Any
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1 cost study provided to the Commission pursuant to the
2 provisions of this Section may, in the Commission's
3 discretion, be accorded proprietary treatment. In addition
4 to the requirements of subsection (c) of Section 13-502 and
5 of Section 13-505.1 applicable to the rates and charges for
6 individual competitive services, the aggregate gross revenues
7 of all competitive services shall be equal to or greater than
8 the sum of the long-run service incremental costs for all
9 competitive services as a group and the value of other
10 facilities and expenses apportioned to competitive services
11 as a group under this Section.
12 Notwithstanding any other provision of this Act, such
13 revenues and costs, including the value of other facilities
14 and expenses so apportioned to competitive services, shall
15 not be considered by the Commission in any review of a
16 telecommunications carrier's rate of return or rate base.
17 Any such review shall be confined to the telecommunications
18 carrier's noncompetitive services and the revenues, cost, and
19 value of other facilities and expenses apportioned to those
20 noncompetitive services.
21 (Source: P.A. 87-856.)
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.".