Bill Text: IL HB2721 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: Amends the Public Utilities Act. In provisions concerning water and sewer surcharges, removes language allowing the Illinois Commerce Commission to authorize a water or sewer utility to file a surcharge which adjusts rates and charges to provide for recovery of costs associated with an investment in qualifying infrastructure plant. Makes a corresponding change.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2023-07-17 - Added Co-Sponsor Rep. Diane Blair-Sherlock [HB2721 Detail]

Download: Illinois-2023-HB2721-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2721 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED:
220 ILCS 5/9-220.2
Amends the Public Utilities Act. In provisions concerning water and sewer surcharges, removes language allowing the Illinois Commerce Commission to authorize a water or sewer utility to file a surcharge which adjusts rates and charges to provide for recovery of costs associated with an investment in qualifying infrastructure plant. Makes a corresponding change.
LRB103 30333 AMQ 56763 b
A BILL FOR
HB2721 LRB103 30333 AMQ 56763 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Utilities Act is amended by changing
Section 9-220.2 as follows:
(220 ILCS 5/9-220.2)
Sec. 9-220.2. Water and sewer surcharges authorized.
(a) The Commission may authorize a water or sewer utility
to file a surcharge which adjusts rates and charges to provide
for recovery of (i) the cost of purchased water, (ii) the cost
of purchased sewage treatment service, or (iii) other costs
which fluctuate for reasons beyond the utility's control or
are difficult to predict, or (iv) costs associated with an
investment in qualifying infrastructure plant, independent of
any other matters related to the utility's revenue
requirement. A surcharge approved under this Section can
operate on an historical or a prospective basis.
(b) (Blank). For purposes of this Section, "costs
associated with an investment in qualifying infrastructure
plant" include a return on the investment in and depreciation
expense related to plant items or facilities (including, but
not limited to, replacement mains, meters, services, and
hydrants) which (i) are not reflected in the rate base used to

HB2721 - 2 - LRB103 30333 AMQ 56763 b
establish the utility's base rates and (ii) are non-revenue
producing. For purposes of this Section, a "non-revenue
producing facility" is one that is not constructed or
installed for the purpose of serving a new customer.
(c) On a periodic basis, the Commission shall initiate
hearings to reconcile amounts collected under each surcharge
authorized pursuant to this Section with the actual prudently
incurred costs recoverable for each annual period during which
the surcharge was in effect.
(Source: P.A. 91-638, eff. 1-1-00.)