State of Illinois
91st General Assembly

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 1        AN  ACT  to  amend  the  Public Utilities Act by changing
 2    Sections 7-204 and 13-101.

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

 5        Section  5.  The  Public  Utilities  Act  is  amended  by
 6    changing Sections 7-204 and 13-101 as follows:

 7        (220 ILCS 5/7-204) (from Ch. 111 2/3, par. 7-204)
 8        Sec.  7-204.  Reorganization defined; Commission approval
 9    therefore.
10        (a)  For purposes of this Section, "reorganization" means
11    any transaction which, regardless of the means by which it is
12    accomplished, results in a  change  in  the  ownership  of  a
13    majority  of  the  voting capital stock of an Illinois public
14    utility; or the ownership or control of any entity which owns
15    or controls a majority of  the  voting  capital  stock  of  a
16    public  utility;  or by which 2 public utilities merge, or by
17    which a public utility  acquires  substantially  all  of  the
18    assets  of  another  public  utility; provided, however, that
19    "reorganization" as used in this Section shall not include  a
20    mortgage  or pledge transaction entered into to secure a bona
21    fide borrowing by the party granting the mortgage  or  making
22    the pledge.
23        In  addition  to  the  foregoing,  "reorganization" shall
24    include for purposes of this Section any  transaction  which,
25    regardless  of  the  means  by which it is accomplished, will
26    have the effect of terminating the affiliated interest status
27    of any entity as defined in paragraphs (a), (b), (c)  or  (d)
28    of  subsection  (2)  of  Section 7-101 of this Act where such
29    entity had transactions with the public utility,  in  the  12
30    calendar months immediately preceding the date of termination
31    of  such affiliated interest status subject to subsection (3)
                            -2-                LRB9109378JSpc
 1    of Section 7-101 of this Act with a value greater than 15% of
 2    the public utility's revenues for that same 12-month  period.
 3    If   the  proposed  transaction  would  have  the  effect  of
 4    terminating the affiliated interest status of more  than  one
 5    Illinois  public  utility,  the  utility  with  the  greatest
 6    revenues  for  the 12-month period shall be used to determine
 7    whether such proposed transaction is a reorganization for the
 8    purposes  of  this  Section.   The  Commission   shall   have
 9    jurisdiction over any reorganization as defined herein.
10        (b)  No  reorganization  shall  take  place without prior
11    Commission approval.  The Commission shall  not  approve  any
12    proposed reorganization if the Commission finds, after notice
13    and  hearing,  that  the reorganization will adversely affect
14    the utility's ability to perform its duties under  this  Act.
15    In reviewing any proposed reorganization, the Commission must
16    find that:
17             (1)   the  proposed reorganization will not diminish
18        the utility's  ability  to  provide  adequate,  reliable,
19        efficient, safe and least-cost public utility service;
20             (2)   the proposed reorganization will not result in
21        the  unjustified  subsidization of non-utility activities
22        by the utility or its customers;
23             (3)   costs and facilities are fairly and reasonably
24        allocated between utility and non-utility  activities  in
25        such  a  manner  that  the  Commission may identify those
26        costs and facilities which are properly included  by  the
27        utility for ratemaking purposes;
28             (4)   the    proposed    reorganization   will   not
29        significantly  impair  the  utility's  ability  to  raise
30        necessary capital on reasonable terms or  to  maintain  a
31        reasonable capital structure;
32             (5)   the   utility   will  remain  subject  to  all
33        applicable  laws,  regulations,  rules,   decisions   and
34        policies  governing  the  regulation  of  Illinois public
                            -3-                LRB9109378JSpc
 1        utilities;
 2             (6)  the proposed reorganization is  not  likely  to
 3        have a significant adverse effect on competition in those
 4        markets over which the Commission has jurisdiction;
 5             (7)  the  proposed  reorganization  is not likely to
 6        result in any adverse rate impacts on retail customers.
 7        (c)  The Commission shall not  approve  a  reorganization
 8    without   ruling  on:  (i)  the  allocation  of  any  savings
 9    resulting from the proposed reorganization; and (ii)  whether
10    the companies should be allowed to recover any costs incurred
11    in  accomplishing the proposed reorganization and, if so, the
12    amount of costs eligible for recovery and how the costs  will
13    be allocated.
14        (d)  The  Commission  shall  issue its Order approving or
15    denying the proposed reorganization within  11  months  after
16    the  application  is  filed.  The  Commission  may extend the
17    deadline for a period equivalent to the length of  any  delay
18    which  the  Commission  finds  to  have  been  caused  by the
19    Applicant's failure to provide data or information  requested
20    by   the  Commission  or  that  the  Commission  ordered  the
21    Applicant to provide to the parties. The Commission may  also
22    extend  the  deadline by an additional period not to exceed 3
23    months to consider amendments to the Applicant's  filing,  or
24    to consider reasonably unforeseeable changes in circumstances
25    subsequent to the Applicant's initial filing.
26        (e)  Subsections  (c)  and  (d) and subparagraphs (6) and
27    (7) of subsection (b) of this Section  shall  apply  only  to
28    merger applications submitted to the Commission subsequent to
29    April  23,  1997.  No  other  Commission  approvals  shall be
30    required for mergers that are subject to this Section.
31        (f)  In approving any proposed reorganization pursuant to
32    this Section the Commission may impose such terms, conditions
33    or requirements as, in its judgment, are necessary to protect
34    the interests of the public utility and its customers.
                            -4-                LRB9109378JSpc
 1        (g)  The  Commission  shall  review  any   reorganization
 2    involving  a telecommunications carrier which has taken place
 3    between January 1,  1998  and  the  effective  date  of  this
 4    amendatory  Act  of  the  91st  General  Assembly  where such
 5    reorganization was not previously reviewed by the Commission.
 6    In reviewing and determining  whether  to  approve  any  such
 7    reorganization,  the  Commission  shall be guided by the same
 8    criteria listed in subsection (b), shall make the same ruling
 9    described  in  subsection  (c);  and  shall  have  the   same
10    administrative powers described in subsections (d) and (f).
11    (Source: P.A. 90-561, eff. 12-16-97.)

12        (220 ILCS 5/13-101) (from Ch. 111 2/3, par. 13-101)
13        (Section scheduled to be repealed on July 1, 2001)
14        Sec.  13-101.  Application  of  Act to telecommunications
15    services.  Except to the extent modified or  supplemented  by
16    the specific provisions of this Article, the Sections of this
17    Act  pertaining to public utilities, public utility rates and
18    services, and the regulation thereof, are fully  and  equally
19    applicable  to  noncompetitive  telecommunications  rates and
20    services,  and  the  regulation  thereof,  except  where  the
21    context clearly renders such provisions inapplicable.  Except
22    to the  extent  modified  or  supplemented  by  the  specific
23    provisions of this Article, Articles II I through V, Sections
24    7-204,  8-301,  8-505, 9-221, 9-222, 9-222.1, 9-222.2, 9-250,
25    and 9-252.1, and Articles X and XI of this Act are fully  and
26    equally  applicable  to  competitive telecommunications rates
27    and carriers and services, and the regulation thereof.
28    (Source: P.A. 90-38, eff. 6-27-97.)

29        Section 99.  Effective date.  This Act takes effect  upon
30    becoming law.

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