104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1275
 
Introduced 1/28/2025, by Sen. Suzy Glowiak Hilton
 
SYNOPSIS AS INTRODUCED:

220 ILCS 5/9-224 from Ch. 111 2/3, par. 9-224
220 ILCS 5/9-225 from Ch. 111 2/3, par. 9-225
220 ILCS 5/9-229
220 ILCS 5/9-231 new
 Amends the Public Utilities Act. Provides that the Illinois Commerce Commission shall not consider as an expense of any public utility company, for the purpose of determining any rate or charge: (1) any amount expended for contributions or gifts to political candidates, political parties, political or legislative committees, or any committee or organization working to influence referendum petitions or elections or contributions to a trade association or a chamber of commerce; or (2) any amount expended by a public utility company for director and officer liability insurance and fiduciary liability insurance. Provides that, in determining whether other types of insurance purchased by the public utility are recoverable, the Commission shall consider whether the insurance provides a financial benefit to ratepayers of the public utility or the public utility's shareholders. Provides that, if the Commission determines the insurance purchased by the public utility provides a financial benefit to the public utility's shareholders, then the amount expended shall not be a recoverable expense. In provisions concerning advertising, provides that goodwill or institutional advertising shall not be a recoverable expense. Provides that any amount expended by a public utility to compensate attorneys or technical experts to prepare and litigate a general rate case filing is a nonrecoverable expense. Provides that, in any general rate increase requested by any gas, electric, water, or sewer utility company under the provisions of the Act, the Commission shall hold at least one public hearing for members of the public to provide input on the requested rate increase. Provides that a public hearing shall be held in the service territory of the utility that is requesting the general rate increase, at a time and location to be determined by the Commission.


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A BILL FOR
 
SB1275LRB104 08692 AAS 18746 b


1 AN ACT concerning regulation.

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

4 Section 5. The Public Utilities Act is amended by changing 
5Sections 9-224, 9-225, and 9-229 and by adding Sections 
69-224.1 and 9-231 as follows:

7 (220 ILCS 5/9-224) (from Ch. 111 2/3, par. 9-224)
8 Sec. 9-224. (a) The Commission shall not consider as an 
9expense of any public utility company, for the purpose of 
10determining any rate or charge, any amount expended for 
11political activity or lobbying as defined in the "Lobbyist 
12Registration Act". Additionally, the Commission shall not 
13consider as an expense of any public utility, for the purpose 
14of determining any rate or charge, any amount expended for 
15contributions or gifts to political candidates, political 
16parties, political or legislative committees, or any committee 
17or organization working to influence referendum petitions or 
18elections, contributions to a trade association, or chamber of 
19commerce. 
20 (b) The Commission shall not consider as an expense of any 
21public utility company for the purpose of determining any rate 
22or charge, any amount expended by a public utility company for 
23director and officer liability insurance and fiduciary 
 
 
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1liability insurance. In determining whether other types of 
2insurance purchased by the public utility are recoverable, the 
3Commission shall determine whether the insurance is of 
4financial benefit to ratepayers of the public utility or the 
5public utility's shareholders. If the Commission determines 
6the insurance purchased by the public utility is of benefit to 
7the public utility's shareholders, then it shall not be a 
8recoverable expense. 
9(Source: P.A. 84-617.)

10 (220 ILCS 5/9-225) (from Ch. 111 2/3, par. 9-225)
11 Sec. 9-225. (1) For the purposes of this Section:
12  (a) "Advertising" means the commercial use, by an 
13 electric, gas, water, or sewer utility, of any media, 
14 including newspapers, printed matter, radio and 
15 television, in order to transmit a message to a 
16 substantial number of members of the public or to such 
17 utility's consumers;
18  (b) "Political advertising" means any advertising for 
19 the purpose of influencing public opinion with respect to 
20 legislative, administrative or electoral matters, or with 
21 respect to any controversial issue of public importance;
22  (c) "Promotional advertising" means any advertising 
23 for the purpose of encouraging any person to select or use 
24 the service or additional service of a utility or the 
25 selection or installation of any appliance or equipment 
 
 
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1 designed to use such utility's service; and
2  (d) "Goodwill or institutional advertising" means any 
3 advertising either on a local or national basis designed 
4 primarily to bring the utility's name before the general 
5 public in such a way as to improve the image of the utility 
6 or to promote controversial issues for the utility or the 
7 industry. 
8 (2) In any general rate increase requested by any gas, 
9electric, water, or sewer utility company under the provisions 
10of this Act, the Commission shall not consider, for the 
11purpose of determining any rate, charge, or classification of 
12costs, any direct or indirect expenditures for promotional, 
13political, or goodwill or institutional or goodwill 
14advertising, unless the Commission finds the advertising to be 
15in the best interest of the Consumer or authorized as provided 
16pursuant to subsection (3) 3 of this Section.
17 (3) The following categories of advertising shall be 
18considered allowable operating expenses for gas, electric, 
19water, or sewer utilities:
20  (a) Advertising which informs consumers how they can 
21 conserve energy or water, reduce peak demand for electric 
22 or gas energy, or reduce demand for water;
23  (b) Advertising required by law or regulations, 
24 including advertising required under Part I of Title II of 
25 the National Energy Conservation Policy Act;
26  (c) Advertising regarding service interruptions, 
 
 
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1 safety measures or emergency conditions;
2  (d) Advertising concerning employment opportunities 
3 with such utility;
4  (e) Advertising which promotes the use of energy 
5 efficient appliances, equipment or services;
6  (f) Explanations of existing or proposed rate 
7 schedules or notifications of hearings thereon;
8  (g) Advertising that identifies the location and 
9 operating hours of company business offices;
10  (h) Advertising which promotes the shifting of demand 
11 from peak to off-peak hours or which encourages the 
12 off-peak usage of the service; and
13  (i) "Other" categories of advertisements not 
14 includable in paragraphs (a) through (h), but which are 
15 not political, promotional, institutional or goodwill 
16 advertisements.
17 (4) Notwithstanding subsections (2) and (3) of this 
18Section, goodwill or institutional advertising shall not be a 
19recoverable expense. 
20(Source: P.A. 95-814, eff. 8-13-08.)

21 (220 ILCS 5/9-229)
22 Sec. 9-229. Consideration of attorney and expert 
23compensation as an expense and intervenor compensation fund. 
24 (a) The Commission shall deem as a nonrecoverable expense 
25by a public utility specifically assess the justness and 
 
 
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1reasonableness of any amount expended by the a public utility 
2to compensate attorneys or technical experts to prepare and 
3litigate a general rate case filing. This issue shall be 
4expressly addressed in the Commission's final order.
5 (b) The State of Illinois shall create a Consumer 
6Intervenor Compensation Fund subject to the following:
7  (1) Provision of compensation for Consumer Interest 
8 Representatives that intervene in Illinois Commerce 
9 Commission proceedings will increase public engagement, 
10 encourage additional transparency, expand the information 
11 available to the Commission, and improve decision-making.
12  (2) As used in this Section, "Consumer interest 
13 representative" means:
14   (A) a residential utility customer or group of 
15 residential utility customers represented by a 
16 not-for-profit group or organization registered with 
17 the Illinois Attorney General under the Solicitation 
18 for Charity Act;
19   (B) representatives of not-for-profit groups or 
20 organizations whose membership is limited to 
21 residential utility customers; or
22   (C) representatives of not-for-profit groups or 
23 organizations whose membership includes Illinois 
24 residents and that address the community, economic, 
25 environmental, or social welfare of Illinois 
26 residents, except government agencies or intervenors 
 
 
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1 specifically authorized by Illinois law to participate 
2 in Commission proceedings on behalf of Illinois 
3 consumers.
4  (3) A consumer interest representative is eligible to 
5 receive compensation from the consumer intervenor 
6 compensation fund if its participation included lay or 
7 expert testimony or legal briefing and argument concerning 
8 the expenses, investments, rate design, rate impact, or 
9 other matters affecting the pricing, rates, costs or other 
10 charges associated with utility service, the Commission 
11 adopts a material recommendation related to a significant 
12 issue in the docket, and participation caused a 
13 significant financial hardship to the participant; 
14 however, no consumer interest representative shall be 
15 eligible to receive an award pursuant to this Section if 
16 the consumer interest representative receives any 
17 compensation, funding, or donations, directly or 
18 indirectly, from parties that have a financial interest in 
19 the outcome of the proceeding.
20  (4) Within 30 days after September 15, 2021 (the 
21 effective date of Public Act 102-662), each utility that 
22 files a request for an increase in rates under Article IX 
23 or Article XVI shall deposit an amount equal to one half of 
24 the rate case attorney and expert expense reported to 
25 allowed by the Commission, but not to exceed $500,000, 
26 into the fund within 35 days of the date of the 
 
 
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1 Commission's final Order in the rate case or 20 days after 
2 the denial of rehearing under Section 10-113 of this Act, 
3 whichever is later. The Consumer Intervenor Compensation 
4 Fund shall be used to provide payment to consumer interest 
5 representatives as described in this Section and the 
6 amount deposited into the fund shall not be a recoverable 
7 expense by the public utility.
8  (5) An electric public utility with 3,000,000 or more 
9 retail customers shall contribute $450,000 to the Consumer 
10 Intervenor Compensation Fund within 60 days after 
11 September 15, 2021 (the effective date of Public Act 
12 102-662). A combined electric and gas public utility 
13 serving fewer than 3,000,000 but more than 500,000 retail 
14 customers shall contribute $225,000 to the Consumer 
15 Intervenor Compensation Fund within 60 days after 
16 September 15, 2021 (the effective date of Public Act 
17 102-662). A gas public utility with 1,500,000 or more 
18 retail customers that is not a combined electric and gas 
19 public utility shall contribute $225,000 to the Consumer 
20 Intervenor Compensation Fund within 60 days after 
21 September 15, 2021 (the effective date of Public Act 
22 102-662). A gas public utility with fewer than 1,500,000 
23 retail customers but more than 300,000 retail customers 
24 that is not a combined electric and gas public utility 
25 shall contribute $80,000 to the Consumer Intervenor 
26 Compensation Fund within 60 days after September 15, 2021 
 
 
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1 (the effective date of Public Act 102-662). A gas public 
2 utility with fewer than 300,000 retail customers that is 
3 not a combined electric and gas public utility shall 
4 contribute $20,000 to the Consumer Intervenor Compensation 
5 Fund within 60 days after September 15, 2021 (the 
6 effective date of Public Act 102-662). A combined electric 
7 and gas public utility serving fewer than 500,000 retail 
8 customers shall contribute $20,000 to the Consumer 
9 Intervenor Compensation Fund within 60 days after 
10 September 15, 2021 (the effective date of Public Act 
11 102-662). A water or sewer public utility serving more 
12 than 100,000 retail customers shall contribute $80,000, 
13 and a water or sewer public utility serving fewer than 
14 100,000 but more than 10,000 retail customers shall 
15 contribute $20,000.
16  (6)(A) Prior to the entry of a Final Order in a 
17 docketed case, the Commission Administrator shall provide 
18 a payment to a consumer interest representative that 
19 demonstrates through a verified application for funding 
20 that the consumer interest representative's participation 
21 or intervention without an award of fees or costs imposes 
22 a significant financial hardship based on a schedule to be 
23 developed by the Commission. The Administrator may require 
24 verification of costs incurred, including statements of 
25 hours spent, as a condition to paying the consumer 
26 interest representative prior to the entry of a Final 
 
 
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1 Order in a docketed case.
2  (B) If the Commission adopts a material recommendation 
3 related to a significant issue in the docket and 
4 participation caused a financial hardship to the 
5 participant, then the consumer interest representative 
6 shall be allowed payment for some or all of the consumer 
7 interest representative's reasonable attorney's or 
8 advocate's fees, reasonable expert witness fees, and other 
9 reasonable costs of preparation for and participation in a 
10 hearing or proceeding. Expenses related to travel or meals 
11 shall not be compensable.
12  (C) The consumer interest representative shall submit 
13 an itemized request for compensation to the Consumer 
14 Intervenor Compensation Fund, including the advocate's or 
15 attorney's reasonable fee rate, the number of hours 
16 expended, reasonable expert and expert witness fees, and 
17 other reasonable costs for the preparation for and 
18 participation in the hearing and briefing within 30 days 
19 of the Commission's final order after denial or decision 
20 on rehearing, if any.
21  (7) Administration of the Fund.
22  (A) The Consumer Intervenor Compensation Fund is 
23 created as a special fund in the State treasury. All 
24 disbursements from the Consumer Intervenor Compensation 
25 Fund shall be made only upon warrants of the Comptroller 
26 drawn upon the Treasurer as custodian of the Fund upon 
 
 
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1 vouchers signed by the Executive Director of the 
2 Commission or by the person or persons designated by the 
3 Director for that purpose. The Comptroller is authorized 
4 to draw the warrant upon vouchers so signed. The Treasurer 
5 shall accept all warrants so signed and shall be released 
6 from liability for all payments made on those warrants. 
7 The Consumer Intervenor Compensation Fund shall be 
8 administered by an Administrator that is a person or 
9 entity that is independent of the Commission. The 
10 administrator will be responsible for the prudent 
11 management of the Consumer Intervenor Compensation Fund 
12 and for recommendations for the award of consumer 
13 intervenor compensation from the Consumer Intervenor 
14 Compensation Fund. The Commission shall issue a request 
15 for qualifications for a third-party program administrator 
16 to administer the Consumer Intervenor Compensation Fund. 
17 The third-party administrator shall be chosen through a 
18 competitive bid process based on selection criteria and 
19 requirements developed by the Commission. The Illinois 
20 Procurement Code does not apply to the hiring or payment 
21 of the Administrator. All Administrator costs may be paid 
22 for using monies from the Consumer Intervenor Compensation 
23 Fund, but the Program Administrator shall strive to 
24 minimize costs in the implementation of the program.
25  (B) The computation of compensation awarded from the 
26 fund shall take into consideration the market rates paid 
 
 
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1 to persons of comparable training and experience who offer 
2 similar services, but may not exceed the comparable market 
3 rate for services paid by the public utility as part of its 
4 nonrecoverable rate case expense reported to the 
5 Commission.
6  (C)(1) Recommendations on the award of compensation by 
7 the administrator shall include consideration of whether 
8 the Commission adopted a material recommendation related 
9 to a significant issue in the docket and whether 
10 participation caused a financial hardship to the 
11 participant and the payment of compensation is fair, just 
12 and reasonable.
13  (2) Recommendations on the award of compensation by 
14 the administrator shall be submitted to the Commission for 
15 approval. Unless the Commission initiates an investigation 
16 within 45 days after the notice to the Commission, the 
17 award of compensation shall be allowed 45 days after 
18 notice to the Commission. Such notice shall be given by 
19 filing with the Commission on the Commission's e-docket 
20 system, and keeping open for public inspection the award 
21 for compensation proposed by the Administrator. The 
22 Commission shall have power, and it is hereby given 
23 authority, either upon complaint or upon its own 
24 initiative without complaint, at once, and if it so 
25 orders, without answer or other formal pleadings, but upon 
26 reasonable notice, to enter upon a hearing concerning the 
 
 
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1 propriety of the award.
2 (c) The Commission may adopt rules to implement this 
3Section.
4(Source: P.A. 102-662, eff. 9-15-21; 103-605, eff. 7-1-24.)