96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB1742


 
Introduced 2/18/2009, by Rep. Michael J. Madigan - Barbara Flynn Currie - George Scully, Jr.
 
SYNOPSIS AS INTRODUCED:














220 ILCS 5/8-306










 Amends the Public Utilities Act. Makes a technical change in a Section concerning water and sewer utilities.
















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A BILL FOR









 











HB1742

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1
 AN ACT concerning regulation.


2
 Be it enacted by the People of the State of Illinois,

3
represented in the General Assembly:


4
 Section 5. The Public Utilities Act is amended by changing 
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Section 8-306 as follows:

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 (220 ILCS 5/8-306)

7
 Sec. 8-306. Special provisions relating to water and sewer 
8
utilities.
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 (a) No later than 120 days after the
the effective date of 
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this amendatory Act of the 94th General Assembly, the 
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Commission shall prepare, make available to customers upon 
12
request, and post on its Internet web site information 
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concerning the service obligations of water and sewer utilities 
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and remedies that a customer may pursue for a violation of the 
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customer's rights. The information shall specifically address 
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the rights of a customer of a water or sewer utility in the 
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following situations:
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  (1) The customer's water meter is replaced.
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  (2) The customer's bill increases by more than 50% 
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 within one billing period.
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  (3) The customer's water service is terminated.
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  (4) The customer wishes to complain after receiving a 
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 termination of service notice.
 


 






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  (5) The customer is unable to make payment on a billing 
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 statement.
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  (6) A rate is filed, including without limitation a 
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 surcharge or annual reconciliation filing, that will 
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 increase the amount billed to the customer.
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  (7) The customer is billed for services provided prior 
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 to the date covered by the billing statement.
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  (8) The customer is due to receive a credit.
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 Each billing statement issued by a water or sewer utility 
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shall include an Internet web site address where the customer 
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can view the information required under this subsection (a) and 
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a telephone number that the customer may call to request a copy 
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of the information.

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 (b) A water or sewer utility may discontinue service only 
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after it has mailed or delivered by other means a written 
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notice of discontinuance substantially in the form of Appendix 
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A of 83 Ill. Adm. Code 280. The notice must include the 
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Internet web site address where the customer can view the 
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information required under subsection (a) and a telephone 
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number that the customer may call to request a copy of the 
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information. Any notice required to be delivered or mailed to a 
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customer prior to discontinuance of service shall be delivered 
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or mailed separately from any bill. Service shall not be 
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discontinued until at least 5 days after delivery or 8 days 
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after the mailing of this notice. Service shall not be 
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discontinued and shall be restored if discontinued for the 
 


 






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reason which is the subject of a dispute or complaint during 
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the pendency of informal or formal complaint procedures of the 
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Illinois Commerce Commission under 83 Ill. Adm. Code 280.160 or 
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280.170, where the customer has complied with those rules. 
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Service shall not be discontinued and shall be restored if 
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discontinued where a customer has established a deferred 
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payment agreement pursuant to 83 Ill. Adm. Code 280.110 and has 
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not defaulted on such agreement. Residential customers who are 
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indebted to a utility for past due utility service shall have 
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the opportunity to make arrangements with the utility to retire 
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the debt by periodic payments, referred to as a deferred 
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payment agreement, unless this customer has failed to make 
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payment under such a plan during the past 12 months. The terms 
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and conditions of a reasonable deferred payment agreement shall 
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be determined by the utility after consideration of the 
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following factors, based upon information available from 
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current utility records or provided by the customer or 
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applicant:
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  (1) size of the past due account;
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  (2) customer or applicant's ability to pay;
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  (3) customer or applicant's payment history;
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  (4) reason for the outstanding indebtedness; and
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  (5) any other relevant factors relating to the 
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 circumstances of the customer or applicant's service.

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A residential customer shall pay a maximum of one-fourth of the 
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amount past due and owing at the time of entering into the 
 


 






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deferred payment agreement, and the water or sewer utility 
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shall allow a minimum of 2 months from the date of the 
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agreement and a maximum of 12 months for payment to be made 
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under a deferred payment agreement. Late payment charges may be 
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assessed against the amount owing that is the subject of a 
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deferred payment agreement.
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 (c) A water or sewer utility shall provide notice as 
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required by subsection (a) of Section 9-201 after the filing of 
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each information sheet under a purchased water surcharge, 
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purchased sewage treatment surcharge, or qualifying 
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infrastructure plant surcharge. The utility also shall post 
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notice of the filing in accordance with the requirements of 83 
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Ill. Adm. Code 255. Unless filed as part of a general rate 
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increase, notice of the filing of a purchased water surcharge 
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rider, purchased sewage treatment surcharge rider, or 
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qualifying infrastructure plant surcharge rider also shall be 
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given in the manner required by this subsection (c) for the 
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filing of information sheets.
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 (d) Commission rules pertaining to formal and informal 
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complaints against public utilities shall apply with full and 
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equal force to water and sewer utilities and their customers, 
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including provisions of 83 Ill. Adm. Code 280.170, and the 
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Commission shall respond to each complaint by providing the 
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consumer with a copy of the utility's response to the complaint 
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and a copy of the Commission's review of the complaint and its 
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findings. The Commission shall also provide the consumer with 
 


 






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all available options for recourse.
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 (e) Any refund shown on the billing statement of a customer 
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of a water or sewer utility must be itemized and must state if 
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the refund is an adjustment or credit.
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 (f) Water service for building construction purposes. At 
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the request of any municipality or township within the service 
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area of a public utility that provides water service to 
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customers within the municipality or township, a public utility 
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must (1) require all water service used for building 
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construction purposes to be measured by meter and subject to 
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approved rates and charges for metered water service and (2) 
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prohibit the unauthorized use of water taken from hydrants or 
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service lines installed at construction sites.
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 (g) Water meters.
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  (1) Periodic testing. Unless otherwise approved by the 
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 Commission, each service water meter shall be periodically 
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 inspected and tested in accordance with the schedule 
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 specified in 83 Ill. Adm. Code 600.340, or more frequently 
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 as the results may warrant, to insure that the meter 
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 accuracy is maintained within the limits set out in 83 Ill. 
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 Adm. Code 600.310.
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  (2) Meter tests requested by customer.
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   (A) Each utility furnishing metered water service 
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 shall, without charge, test the accuracy of any meter 
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 upon request by the customer served by such meter, 
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 provided that the meter in question has not been tested 
 


 






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 by the utility or by the Commission within 2 years 
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 previous to such request. The customer or his or her 
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 representatives shall have the privilege of witnessing 
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 the test at the option of the customer. A written 
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 report, giving the results of the test, shall be made 
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 to the customer.
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   (B) When a meter that has been in service less than 
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 2 years since its last test is found to be accurate 
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 within the limits specified in 83 Ill. Adm. Code 
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 600.310, the customer shall pay a fee to the utility 
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 not to exceed the amounts specified in 83 Ill. Adm. 
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 Code 600.350(b). Fees for testing meters not included 
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 in this Section or so located that the cost will be out 
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 of proportion to the fee specified will be determined 
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 by the Commission upon receipt of a complete 
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 description of the case.
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  (3) Commission referee tests. Upon written application 
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 to the Commission by any customer, a test will be made of 
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 the customer's meter by a representative of the Commission. 
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 For such a test, a fee as provided for in subsection (g)(2) 
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 shall accompany the application. If the meter is found to 
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 be registering more than 1.5% fast on the average when 
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 tested as prescribed in 83 Ill. Adm. Code 600.310, the 
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 utility shall refund to the customer the amount of the fee. 
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 The utility shall in no way disturb the meter after a 
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 customer has made an application for a referee test until 
 


 






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 authority to do so is given by the Commission or the 
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 customer in writing.
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 (h) Water and sewer utilities; low usage. Each public 
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utility that provides water and sewer service must establish a 
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unit sewer rate, subject to review by the Commission, that 
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applies only to those customers who use less than 1,000 gallons 
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of water in any billing period.
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 (i) Water and sewer utilities; separate meters. Each public 
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utility that provides water and sewer service must offer 
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separate rates for water and sewer service to any commercial or 
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residential customer who uses separate meters to measure each 
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of those services. In order for the separate rate to apply, a 
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combination of meters must be used to measure the amount of 
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water that reaches the sewer system and the amount of water 
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that does not reach the sewer system.
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 (j) Each water or sewer public utility must disclose on 
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each billing statement any amount billed that is for service 
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provided prior to the date covered by the billing statement. 
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The disclosure must include the dates for which the prior 
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service is being billed. Each billing statement that includes 
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an amount billed for service provided prior to the date covered 
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by the billing statement must disclose the dates for which that 
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amount is billed and must include a copy of the document 
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created under subsection (a) and a statement of current 
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Commission rules concerning unbilled or misbilled service.
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 (k) When the customer is due a refund resulting from 
 


 






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payment of an overcharge, the utility shall credit the customer 
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in the amount of overpayment with interest from the date of 
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overpayment by the customer. The rate for interest shall be at 
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the appropriate rate determined by the Commission under 83 Ill. 
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Adm. Code 280.70.
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 (l) Water and sewer public utilities; subcontractors. The 
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Commission shall adopt rules for water and sewer public 
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utilities to provide notice to the customers of the proper kind 
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of identification that a subcontractor must present to the 
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customer, to prohibit a subcontractor from soliciting or 
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receiving payment of any kind for any service provided by the 
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water or sewer public utility or the subcontractor, and to 
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establish sanctions for violations.
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 (m) Water and sewer public utilities; unaccounted-for 
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water. By December 31, 2006, each water public utility shall 
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file tariffs with the Commission to establish the maximum 
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percentage of unaccounted-for water that would be considered in 
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the determination of any rates or surcharges. The rates or 
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surcharges approved for a water public utility shall not 
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include charges for unaccounted-for water in excess of this 
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maximum percentage without well-documented support and 
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justification for the Commission to consider in any request to 
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recover charges in excess of the tariffed maximum percentage.
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 (n) Rate increases; public forums. When any public utility 
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providing water or sewer service proposes a general rate 
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increase, in addition to other notice requirements, the water 
 


 






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or sewer public utility must notify its customers of their 
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right to request a public forum. A customer or group of 
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customers must make written request to the Commission for a 
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public forum and must also provide written notification of the 
5
request to the customer's municipal or, for unincorporated 
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areas, township government. The Commission, at its discretion, 
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may schedule the public forum. If it is determined that public 
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forums are required for multiple municipalities or townships, 
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the Commission shall schedule these public forums, in locations 
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within approximately 45 minutes drive time of the 
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municipalities or townships for which the public forums have 
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been scheduled. The public utility must provide advance notice 
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of 30 days for each public forum to the governing bodies of 
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those units of local government affected by the increase. The 
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day of each public forum shall be selected so as to encourage 
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the greatest public participation. Each public forum will begin 
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at 7:00 p.m. Reports and comments made during or as a result of 
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each public forum must be made available to the hearing 
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officials and reviewed when drafting a recommended or tentative 
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decision, finding or order pursuant to Section 10-111 of this 
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Act.

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(Source: P.A. 94-950, eff. 6-27-06.)