Bill Text: IL SB0159 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Public Utilities Act. Provides that termination of water utility service to a residential user, including a tenant of a mastermetered apartment building, for nonpayment of bills is prohibited: (1) on any day when the National Weather Service forecast for the following 6 days covering the area of the utility in which the residence is located includes a forecast that the temperature will be 32 degrees Fahrenheit or below; (2) on any day when the National Weather Service forecast for the following 6 days covering the area of the utility in which the residence is located includes a forecast that the temperature will be 90 degrees Fahrenheit or above; or (3) when the National Weather Service issues an excessive heat watch, excessive heat warning, or heat advisory covering the area of the utility in which the residence is located. In provisions concerning procedures for a large public utility to acquire a water or sewer utility, provides that if the water or sewer utility being acquired is owned by the State or a political subdivision of the State, a referendum will be required to approve the acquisition of the water or sewer utility by the large public utility (rather than only requiring a public meeting and publication of the terms of acquisition in a newspaper of general circulation in the area that the water or sewer utility operates). Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-01-17 - Referred to Assignments [SB0159 Detail]

Download: Illinois-2025-SB0159-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0159 Introduced 1/17/2025, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED:
220 ILCS 5/8-205 from Ch. 111 2/3, par. 8-205
220 ILCS 5/9-210.5
Amends the Public Utilities Act. Provides that termination of water utility service to a residential user, including a tenant of a mastermetered apartment building, for nonpayment of bills is prohibited: (1) on any day when the National Weather Service forecast for the following 6 days covering the area of the utility in which the residence is located includes a forecast that the temperature will be 32 degrees Fahrenheit or below; (2) on any day when the National Weather Service forecast for the following 6 days covering the area of the utility in which the residence is located includes a forecast that the temperature will be 90 degrees Fahrenheit or above; or (3) when the National Weather Service issues an excessive heat watch, excessive heat warning, or heat advisory covering the area of the utility in which the residence is located. In provisions concerning procedures for a large public utility to acquire a water or sewer utility, provides that if the water or sewer utility being acquired is owned by the State or a political subdivision of the State, a referendum will be required to approve the acquisition of the water or sewer utility by the large public utility (rather than only requiring a public meeting and publication of the terms of acquisition in a newspaper of general circulation in the area that the water or sewer utility operates). Effective immediately.
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A BILL FOR
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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
Sections 8-205 and 9-210.5 as follows:
(220 ILCS 5/8-205) (from Ch. 111 2/3, par. 8-205)
Sec. 8-205. Termination of a utility service.
(a) Termination of gas and electric utility service to all
residential users, including all tenants of mastermetered
apartment buildings, for nonpayment of bills, where gas or
electricity is used as the only source of space heating or to
control or operate the only space heating equipment at the
residence is prohibited:
(1) on any day when the National Weather Service
forecast for the following 24 hours covering the area of
the utility in which the residence is located includes a
forecast that the temperature will be 32 degrees
Fahrenheit or below; or
(2) on any day preceding a holiday or a weekend when
such a forecast indicated that the temperature will be 32
degrees Fahrenheit or below during the holiday or weekend.
(b) If gas or electricity is used as the only source of
space cooling or to control or operate the only space cooling

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equipment at a residence, then a utility may not terminate gas
or electric utility service to a residential user, including
all tenants of mastermetered apartment buildings, for
nonpayment of bills:
(1) on any day when the National Weather Service
forecast for the following 24 hours covering the area of
the utility in which the residence is located includes a
forecast that the temperature will be 90 degrees
Fahrenheit or above;
(2) on any day preceding a holiday or weekend when the
National Weather Service for the following 24 hours
covering the area of the utility in which the residence is
located includes a forecast that the temperature will be
90 degrees Fahrenheit or above during the holiday or
weekend; or
(3) when the National Weather Service issues an
excessive heat watch, heat advisory, or excessive heat
warning covering the area of the utility in which the
residence is located.
(c) Termination of water utility service to a residential
user, including a tenant of a mastermetered apartment
building, for nonpayment of bills is prohibited:
(1) on any day when the National Weather Service
forecast for the following 6 days covering the area of the
utility in which the residence is located includes a
forecast that the temperature will be 32 degrees

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Fahrenheit or below;
(2) on any day when the National Weather Service
forecast for the following 6 days covering the area of the
utility in which the residence is located includes a
forecast that the temperature will be 90 degrees
Fahrenheit or above; or
(3) when the National Weather Service issues an
excessive heat watch, excessive heat warning, or heat
advisory covering the area of the utility in which the
residence is located.
(Source: P.A. 103-19, eff. 1-1-24; 103-605, eff. 7-1-24.)
(220 ILCS 5/9-210.5)
(Section scheduled to be repealed on June 1, 2028)
Sec. 9-210.5. Valuation of water and sewer utilities.
(a) In this Section:
"Disinterested" means that the person directly
involved (1) is not a director, officer, or an employee of
the large public utility or the water or sewer utility or
its direct affiliates or subsidiaries for at least 12
months before becoming engaged under this Section; (2)
shall not derive a material financial benefit from the
sale of the water or sewer utility other than fees for
services rendered, and (3) shall not have a member of the
person's immediate family, including a spouse, parents or
spouse's parents, children or spouses of children, or

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siblings and their spouses or children, be a director,
officer, or employee of either the large public utility or
water or sewer utility or the water or sewer utility or its
direct affiliates or subsidiaries for at least 12 months
before becoming engaged under this Section or receive a
material financial benefit from the sale of the water or
sewer utility other than fees for services rendered.
"District" means a service area of a large public
utility whose customers are subject to the same rate
tariff.
"Large public utility" means an investor-owned public
utility that:
(1) is subject to regulation by the Illinois
Commerce Commission under this Act;
(2) regularly provides water or sewer service to
more than 15,000 customer connections;
(3) provides safe and adequate service; and
(4) is not a water or sewer utility as defined in
this subsection (a).
"Next rate case" means a large public utility's first
general rate case after the date the large public utility
acquires the water or sewer utility where the acquired
water or sewer utility's cost of service is considered as
part of determining the large public utility's resulting
rates.
"Prior rate case" means a large public utility's

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general rate case resulting in the rates in effect for the
large public utility at the time it acquires the water or
sewer utility.
"Utility service source" means the water or sewer
utility or large public utility from which the customer
receives its utility service type.
"Utility service type" means water utility service or
sewer utility service or water and sewer utility service.
"Water or sewer utility" means any of the following:
(1) a public utility that regularly provides water
or sewer service to 6,000 or fewer customer
connections;
(2) a water district, including, but not limited
to, a public water district, water service district,
or surface water protection district, or a sewer
district of any kind established as a special district
under the laws of this State that regularly provides
water or sewer service;
(3) a waterworks system or sewerage system
established under the Township Code that regularly
provides water or sewer service; or
(4) a water system or sewer system owned by a
municipality that regularly provides water or sewer
service; and
(5) any other entity that is not a public utility
that regularly provides water or sewer service.

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(b) Notwithstanding any other provision of this Act, a
large public utility that acquires a water or sewer utility
may request that the Commission use, and, if so requested, the
Commission shall use, the procedures set forth under this
Section to establish the ratemaking rate base of that water or
sewer utility at the time when it is acquired by the large
public utility.
(c) If a large public utility elects the procedures under
this Section to establish the rate base of a water or sewer
utility that it is acquiring, then 3 appraisals shall be
performed. The average of these 3 appraisals shall represent
the fair market value of the water or sewer utility that is
being acquired. The appraisals shall be performed by 3
appraisers approved by the Commission's Executive Director or
designee and engaged by either the water or sewer utility
being acquired or by the large public utility. Each appraiser
shall be engaged on reasonable terms approved by the
Commission. Each appraiser shall be a disinterested person
licensed as a State certified general real estate appraiser
under the Real Estate Appraiser Licensing Act of 2002.
Each appraiser shall:
(1) be sworn to determine the fair market value of the
water or sewer utility by establishing the amount for
which the water or sewer utility would be sold in a
voluntary transaction between a willing buyer and willing
seller under no obligation to buy or sell;

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(2) determine fair market value in compliance with the
Uniform Standards of Professional Appraisal Practice;
(3) engage one disinterested engineer who is licensed
in this State, and who may be the same engineer that is
engaged by the other appraisers, to prepare an assessment
of the tangible assets of the water or sewer utility,
which is to be incorporated into the appraisal under the
cost approach;
(4) request from the manager of the Accounting
Department, if the water or sewer utility is a public
utility that is regulated by the Commission, a list of
investments made by the water or sewer utility that had
been disallowed previously and that shall be excluded from
the calculation of the large public utility's rate base in
its next rate case; and
(5) return their appraisal, in writing, to the water
or sewer utility and large public utility in a reasonable
and timely manner.
If the appraiser cannot engage an engineer, as described
in paragraph (3) of this subsection (c), within 30 days after
the appraiser is engaged, then the Commission's Executive
Director or designee shall recommend the engineer the
appraiser should engage. The Commission's Executive Director
or designee shall provide his or her recommendation within 30
days after he or she is officially notified of the appraiser's
failure to engage an engineer and the appraiser shall promptly

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work to engage the recommended engineer. If the appraiser is
unable to negotiate reasonable engagement terms with the
recommended engineer within 15 days after the recommendation
by the Commission's Executive Director or designee, then the
appraiser shall notify the Commission's Executive Director or
designee and the process shall be repeated until an engineer
is successfully engaged.
(d) The lesser of (i) the purchase price or (ii) the fair
market value determined under subsection (c) of this Section
shall constitute the rate base associated with the water or
sewer utility as acquired by and incorporated into the rate
base of the district designated by the acquiring large public
utility under this Section, subject to any adjustments that
the Commission deems necessary to ensure such rate base
reflects prudent and useful investments in the provision of
public utility service. The reasonable transaction and closing
costs incurred by the large public utility shall be treated
consistent with the applicable accounting standards under this
Act. The total amount of all of the appraisers' fees to be
included in the transaction and closing costs shall not exceed
the greater of $15,000 or 5% of the appraised value of the
water or sewer utility being acquired. This rate base
treatment shall not be deemed to violate this Act, including,
but not limited to, any Sections in Articles VIII and IX of
this Act that might be affected by this Section. Any
acquisition of a water or sewer utility that affects the

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cumulative base rates of the large public utility's existing
ratepayers in the tariff group into which the water or sewer
utility is to be combined by less than (1) 2.5% at the time of
the acquisition for any single acquisition completed under
this Section or (2) 5% for all acquisitions completed under
this Section before the Commission's final order in the next
rate case shall not be deemed to violate Section 7-204 or any
other provision of this Act.
In the Commission's order that approves the large public
utility's acquisition of the water or sewer utility, the
Commission shall issue its decision establishing (1) the
ratemaking rate base of the water or sewer utility; (2) the
district or tariff group with which the water or sewer utility
shall be combined for ratemaking purposes, if such combination
has been proposed by the large public utility; and (3) the
rates to be charged to customers in the water or sewer utility.
(e) If the water or sewer utility being acquired is owned
by the State or any political subdivision thereof, then the
water or sewer utility must inform the public of the terms of
its acquisition by the large public utility by (1) holding a
public meeting prior to the acquisition and (2) causing to be
published, in a newspaper of general circulation in the area
that the water or sewer utility operates, a notice setting
forth the terms of its acquisition by the large public utility
and options that shall be available to assist customers to pay
their bills after the acquisition.

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At the election next following the public meeting and
notice required under this subsection (e), a referendum,
subject to the requirements of Section 16-7 of the Election
Code, shall be placed on the ballot for all electors within the
area where the water or sewer utility operates in
substantially the following form:
May the (name of large public utility) acquire the
(name of water or sewer utility) under the terms of
acquisition as published in (name of newspaper) on (date)?
The votes shall be recorded as "Yes" or "No".
If a majority of the electors voting on the referendum
within the service area of the water or sewer utility vote in
favor of the referendum, then the acquisition may continue as
provided in this Section. If less than a majority of the
electors voting on the referendum within the service area of
the water or sewer utility vote in favor of the referendum, the
Commission shall deny the large public utility's acquisition
of the water or sewer utility.
(f) The large public utility may recommend the district or
tariff group of which the water or sewer utility shall, for
ratemaking purposes, become a part after the acquisition, or
may recommend a lesser rate for the water or sewer utility. If
the large public utility recommends a lesser rate, it shall
submit to the Commission its proposed rate schedule and the
proposed final tariff group for the acquired water or sewer
utility. The Commission's approved district or tariff group or

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rates shall be consistent with the large public utility's
recommendation, unless such recommendation can be shown to be
contrary to the public interest.
(g) From the date of acquisition until the date that new
rates are effective in the acquiring large public utility's
next rate case, the customers of the acquired water or sewer
utility shall pay the approved then-existing rates of the
district or tariff group as ordered by the Commission, or some
lesser rates as recommended by the large public utility and
approved by the Commission under subsection (f); provided,
that, if the application of such rates of the large public
utility to customers of the acquired water or sewer utility
using 54,000 gallons annually results in an increase to the
total annual bill of customers of the acquired water or sewer
utility, exclusive of fire service or related charges, then
the large public utility's rates charged to the customers of
the acquired water or sewer utility shall be uniformly
reduced, if any reduction is required, by the percent that
results in the total annual bill, exclusive of fire services
or related charges, for the customers of the acquired water or
sewer utility using 54,000 gallons being equal to 1.5% of the
latest median household income as reported by the United
States Census Bureau for the most applicable community or
county. For each customer of the water or sewer utility with
potable water usage values that cannot be reasonably obtained,
a value of 4,500 gallons per month shall be assigned. These

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rates shall not be deemed to violate this Act including, but
not limited to, Section 9-101 and any other applicable
Sections in Articles VIII and IX of this Act. The Commission
shall issue its decision establishing the rates effective for
the water or sewer utility immediately following an
acquisition in its order approving the acquisition.
(h) In the acquiring large public utility's next rate
case, the water or sewer utility and the district or tariff
group ordered by the Commission and their costs of service may
be combined under the same rate tariff. This rate tariff shall
be based on allocation of costs of service of the acquired
water or sewer utility and the large public utility's district
or tariff group ordered by the Commission and utilizing a rate
design that does not distinguish among customers on the basis
of utility service source or type. This rate tariff shall not
be deemed to violate this Act including, but not limited to,
Section 9-101 of this Act. In the acquiring large public
utility's 2 rate cases after an acquisition, but in no
subsequent rate case, the large public utility may file a rate
tariff for a water or sewer utility acquired under this
Section that establishes lesser rates than the district or
tariff group into which the water or sewer utility is to be
combined. Those lesser rates shall not be deemed to violate
Section 7-204 or any other provision of this Act if they affect
the cumulative base rates of the large public utility's
existing rate payers in the district or tariff by less than

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2.5%.
(i) Any post-acquisition improvements made by the large
public utility in the water or sewer utility shall accrue a
cost for financing set at the large public utility's
determined rate for allowance for funds used during
construction, inclusive of the debt, equity, and income tax
gross up components, after the date on which the expenditure
was incurred by the large public utility until the investment
has been in service for a 4-year period or, if sooner, until
the time the rates are implemented in the large public
utility's next rate case.
Any post-acquisition improvements made by the large public
utility in the water or sewer utility shall not be depreciated
for ratemaking purposes from the date on which the expenditure
was incurred by the large public utility until the investment
has been in service for a 4-year period or, if sooner, until
the time the rates are implemented in the large public
utility's next rate case.
(j) This Section shall be exclusively applied to large
public utilities in the voluntary and mutually agreeable
acquisition of water or sewer utilities. Any petitions filed
with the Commission related to the acquisitions described in
this Section, including petitions seeking approvals or
certificates required by this Act, shall be deemed approved
unless the Commission issues its final order within 11 months
after the date the large public utility filed its initial

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petition. This Section shall only apply to utilities providing
water or sewer service and shall not be construed in any manner
to apply to electric corporations, natural gas corporations,
or any other utility subject to this Act.
(k) Nothing in this Section shall prohibit a party from
declining to proceed with an acquisition or be deemed as
establishing the final purchase price of an acquisition.
(l) In the Commission's order that approves the large
utility's acquisition of the water or sewer utility, the
Commission shall address each aspect of the acquisition
transaction for which approval is required under the Act.
(m) Any contractor or subcontractor that performs work on
a water or sewer utility acquired by a large public utility
under this Section shall be a responsible bidder as described
in Section 30-22 of the Illinois Procurement Code. The
contractor or subcontractor shall submit evidence of meeting
the requirements to be a responsible bidder as described in
Section 30-22 to the water or sewer utility. Any new water or
sewer facility built as a result of the acquisition shall
require the contractor to enter into a project labor
agreement. The large public utility acquiring the water or
sewer utility shall offer employee positions to qualified
employees of the acquired water or sewer utility.
(n) This Section is repealed on June 1, 2028.
(Source: P.A. 102-149, eff. 1-1-22.)
Section 99. Effective date. This Act takes effect upon

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