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91_SB0414
LRB9101820JSpcA
1 AN ACT to amend the Public Utilities Act by changing
2 Sections 7-204, 9-250, 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, 9-250, 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; or for any completed
19 reorganization consummated after January 1, 1999, but before
20 the effective date of this amendatory Act of the 91st General
21 Assembly (referred to herein as "completed reorganization")
22 or for any proposed reorganization by which, in either case,
23 a public utility, engaged in providing interMSA long distance
24 service on or before January 1, 1999 within the State of
25 Illinois, or its affiliate acquires substantially all of the
26 assets of a community antenna television service provider
27 where a purpose of the acquisition is to provide
28 telecommunications services; provided, however, that
29 "reorganization" as used in this Section shall not include a
30 mortgage or pledge transaction entered into to secure a bona
31 fide borrowing by the party granting the mortgage or making
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1 the pledge.
2 In addition to the foregoing, "reorganization" shall
3 include for purposes of this Section any transaction which,
4 regardless of the means by which it is accomplished, will
5 have the effect of terminating the affiliated interest status
6 of any entity as defined in paragraphs (a), (b), (c) or (d)
7 of subsection (2) of Section 7-101 of this Act where such
8 entity had transactions with the public utility, in the 12
9 calendar months immediately preceding the date of termination
10 of such affiliated interest status subject to subsection (3)
11 of Section 7-101 of this Act with a value greater than 15% of
12 the public utility's revenues for that same 12-month period.
13 If the proposed transaction would have the effect of
14 terminating the affiliated interest status of more than one
15 Illinois public utility, the utility with the greatest
16 revenues for the 12-month period shall be used to determine
17 whether such proposed transaction is a reorganization for the
18 purposes of this Section. The Commission shall have
19 jurisdiction over any reorganization as defined herein.
20 (b) No reorganization shall take place without prior
21 Commission approval or, in the case of completed
22 reorganizations, be permitted to remain in effect without
23 Commission approval. The Commission shall not approve any
24 proposed or completed reorganization if the Commission finds,
25 after notice and hearing, that the reorganization will
26 adversely affect the utility's ability to perform its duties
27 under this Act. In reviewing any proposed or completed
28 reorganization, the Commission must find that:
29 (1) the proposed or completed reorganization will
30 not diminish the utility's ability to provide adequate,
31 reliable, efficient, safe and least-cost public utility
32 service;
33 (2) the proposed or completed reorganization will
34 not result in the unjustified subsidization of
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1 non-utility activities by the utility or its customers;
2 (3) costs and facilities are fairly and reasonably
3 allocated between utility and non-utility activities in
4 such a manner that the Commission may identify those
5 costs and facilities which are properly included by the
6 utility for ratemaking purposes;
7 (4) the proposed or completed reorganization will
8 not significantly impair the utility's ability to raise
9 necessary capital on reasonable terms or to maintain a
10 reasonable capital structure;
11 (5) the utility will remain subject to all
12 applicable laws, regulations, rules, decisions and
13 policies governing the regulation of Illinois public
14 utilities;
15 (6) the proposed or completed reorganization is not
16 likely to have a significant adverse effect on
17 competition in those markets over which the Commission
18 has jurisdiction;
19 (7) the proposed or completed reorganization is not
20 likely to result in any adverse rate impacts on retail
21 customers.
22 (c) The Commission shall not approve a proposed
23 reorganization or completed reorganization without ruling on:
24 (i) the allocation of any savings resulting from the proposed
25 or completed reorganization; and (ii) whether the companies
26 should be allowed to recover any costs incurred in
27 accomplishing the proposed or completed reorganization and,
28 if so, the amount of costs eligible for recovery and how the
29 costs will be allocated.
30 (d) The Commission shall issue its Order approving or
31 denying the proposed or completed reorganization within 11
32 months after the application is filed. The Commission may
33 extend the deadline for a period equivalent to the length of
34 any delay which the Commission finds to have been caused by
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1 the Applicant's failure to provide data or information
2 requested by the Commission or that the Commission ordered
3 the Applicant to provide to the parties. The Commission may
4 also extend the deadline by an additional period not to
5 exceed 3 months to consider amendments to the Applicant's
6 filing, or to consider reasonably unforeseeable changes in
7 circumstances subsequent to the Applicant's initial filing.
8 (e) Subsections (c) and (d) and subparagraphs (6) and
9 (7) of subsection (b) of this Section shall apply only to
10 merger applications submitted to the Commission subsequent to
11 April 23, 1997. No other Commission approvals shall be
12 required for mergers that are subject to this Section.
13 (f) In approving any proposed or completed
14 reorganization pursuant to this Section the Commission may
15 impose such terms, conditions or requirements as, in its
16 judgment, are necessary to protect the interests of the
17 public utility and its customers.
18 (g) Applications for approval of completed
19 reorganizations shall be filed within 60 days after the
20 effective date of this amendatory Act of the 91st General
21 Assembly.
22 (Source: P.A. 90-561, eff. 12-16-97.)
23 (220 ILCS 5/9-250) (from Ch. 111 2/3, par. 9-250)
24 Sec. 9-250. Unjust rates and charges; Commission
25 redetermination. Whenever the Commission, after a hearing
26 had upon its own motion or upon complaint, shall find that
27 the rates or other charges, or classifications, or any of
28 them, demanded, observed, charged or collected by any public
29 utility for any service or product or commodity, or in
30 connection therewith, or that the rules, regulations,
31 contracts, or practices or any of them, affecting such rates
32 or other charges, or classifications, or any of them, are
33 unjust, unreasonable, discriminatory or preferential, or in
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1 any way in violation of any provisions of law, or that such
2 rates or other charges or classifications are insufficient,
3 the Commission shall determine the just, reasonable or
4 sufficient rates or other charges, classifications, rules,
5 regulations, contracts or practices to be thereafter observed
6 and in force, and shall fix the same by order as hereinafter
7 provided.
8 The Commission shall have power, upon a hearing, had upon
9 its own motion or upon complaint, to investigate a single
10 rate or other charge, classification, rule, regulation,
11 contract or practice, or any number thereof, or the entire
12 schedule or schedules of rates or other charges,
13 classifications, rules, regulations, contracts and practices,
14 or any thereof of any public utility, and to establish new
15 rates or other charges, classifications, rules, regulations,
16 contracts or practices or schedule or schedules, in lieu
17 thereof.
18 Further, the Commission shall have the power upon its own
19 motion or upon complaint to investigate and determine that
20 any rates charged by an interexchange carrier for intrastate
21 interMSA and intraMSA local toll calls are unjust and
22 unreasonable if those rates do not reflect all reductions
23 effective on or after the effective date of this amendatory
24 Act of the 91st General Assembly in carrier access charges
25 paid to the interexchange carrier.
26 (Source: P.A. 84-617; 84-1025.)
27 (220 ILCS 5/13-101) (from Ch. 111 2/3, par. 13-101)
28 (Section scheduled to be repealed on July 1, 2001)
29 Sec. 13-101. Application of other Articles. Except to
30 the extent modified or supplemented by the specific
31 provisions of this Article, the Sections of this Act
32 pertaining to public utilities, public utility rates and
33 services, and the regulation thereof, are fully and equally
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1 applicable to noncompetitive telecommunications rates and
2 services, and the regulation thereof, except where the
3 context clearly renders such provisions inapplicable. Except
4 to the extent modified or supplemented by the specific
5 provisions of this Article, Articles I through V, Sections
6 7-204, 8-301, 8-505, 9-221, 9-222, 9-222.1, 9-222.2, 9-250,
7 and 9-252.1, and Articles X and XI of this Act are fully and
8 equally applicable to competitive telecommunications rates
9 and services, and the regulation thereof.
10 (Source: P.A. 90-38, eff. 6-27-97.)
11 Section 99. Effective date. This Act takes effect upon
12 becoming law.