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Illinois General Assembly· HB 4514Governor Approved

GENERAL RATE INCREASE HEARINGS, the official text

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HB4514 Enrolled                     LRB104 17067 AAS 30482 b

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

5 Section 8-306 and by adding Section 9-226.5 as follows:

6   (220 ILCS 5/8-306)

7   Sec. 8-306. Special provisions relating to water and sewer

8 utilities.

9   (a) No later than 120 days after the effective date of this

10 amendatory Act of the 94th General Assembly, the Commission

11 shall prepare, make available to customers upon request, and

12 post on its Internet web site information concerning the

13 service obligations of water and sewer utilities and remedies

14 that a customer may pursue for a violation of the customer's

15 rights. The information shall specifically address the rights

16 of a customer of a water or sewer utility in the following

17 situations:

18  (1) The customer's water meter is replaced.

19  (2) The customer's bill increases by more than 50%

20  within one billing period.

21  (3) The customer's water service is terminated.

22  (4) The customer wishes to complain after receiving a

23  termination of service notice.
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1   (5) The customer is unable to make payment on a

2   billing statement.

3   (6) A rate is filed, including without limitation a

4   surcharge or annual reconciliation filing, that will

5   increase the amount billed to the customer.

6   (7) The customer is billed for services provided prior

7   to the date covered by the billing statement.

8   (8) The customer is due to receive a credit.

9   Each billing statement issued by a water or sewer utility

10 shall include an Internet web site address where the customer

11 can view the information required under this subsection (a)

12 and a telephone number that the customer may call to request a

13 copy of the information.

14  (b) A water or sewer utility may discontinue service only

15 after it has mailed or delivered by other means a written

16 notice of discontinuance substantially in the form of Appendix

17 A of 83 Ill. Adm. Code 280. The notice must include the

18 Internet web site address where the customer can view the

19 information required under subsection (a) and a telephone

20 number that the customer may call to request a copy of the

21 information. Any notice required to be delivered or mailed to

22 a customer prior to discontinuance of service shall be

23 delivered or mailed separately from any bill. Service shall

24 not be discontinued until at least 5 days after delivery or 8

25 days after the mailing of this notice. Service shall not be

26 discontinued and shall be restored if discontinued for the
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1 reason which is the subject of a dispute or complaint during

2 the pendency of informal or formal complaint procedures of the

3 Illinois Commerce Commission under 83 Ill. Adm. Code 280.160

4 or 280.170, where the customer has complied with those rules.

5 Service shall not be discontinued and shall be restored if

6 discontinued where a customer has established a deferred

7 payment agreement pursuant to 83 Ill. Adm. Code 280.110 and

8 has not defaulted on such agreement. Residential customers who

9 are indebted to a utility for past due utility service shall

10 have the opportunity to make arrangements with the utility to

11 retire the debt by periodic payments, referred to as a

12 deferred payment agreement, unless this customer has failed to

13 make payment under such a plan during the past 12 months. The

14 terms and conditions of a reasonable deferred payment

15 agreement shall be determined by the utility after

16 consideration of the following factors, based upon information

17 available from current utility records or provided by the

18 customer or applicant:

19  (1) size of the past due account;

20  (2) customer or applicant's ability to pay;

21  (3) customer or applicant's payment history;

22  (4) reason for the outstanding indebtedness; and

23  (5) any other relevant factors relating to the

24  circumstances of the customer or applicant's service.

25 A residential customer shall pay a maximum of one-fourth of

26 the amount past due and owing at the time of entering into the
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1 deferred payment agreement, and the water or sewer utility

2 shall allow a minimum of 2 months from the date of the

3 agreement and a maximum of 12 months for payment to be made

4 under a deferred payment agreement. Late payment charges may

5 be assessed against the amount owing that is the subject of a

6 deferred payment agreement.

7   (c) A water or sewer utility shall provide notice as

8 required by subsection (a) of Section 9-201 after the filing

9 of each information sheet under a purchased water surcharge,

10 purchased sewage treatment surcharge, or qualifying

11 infrastructure plant surcharge. The utility also shall post

12 notice of the filing in accordance with the requirements of 83

13 Ill. Adm. Code 255. Unless filed as part of a general rate

14 increase, notice of the filing of a purchased water surcharge

15 rider, purchased sewage treatment surcharge rider, or

16 qualifying infrastructure plant surcharge rider also shall be

17 given in the manner required by this subsection (c) for the

18 filing of information sheets.

19  (d) Commission rules pertaining to formal and informal

20 complaints against public utilities shall apply with full and

21 equal force to water and sewer utilities and their customers,

22 including provisions of 83 Ill. Adm. Code 280.170, and the

23 Commission shall respond to each complaint by providing the

24 consumer with a copy of the utility's response to the

25 complaint and a copy of the Commission's review of the

26 complaint and its findings. The Commission shall also provide
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1 the consumer with all available options for recourse.

2   (e) Any refund shown on the billing statement of a

3 customer of a water or sewer utility must be itemized and must

4 state if the refund is an adjustment or credit.

5   (f) Water service for building construction purposes. At

6 the request of any municipality or township within the service

7 area of a public utility that provides water service to

8 customers within the municipality or township, a public

9 utility must (1) require all water service used for building

10 construction purposes to be measured by meter and subject to

11 approved rates and charges for metered water service and (2)

12 prohibit the unauthorized use of water taken from hydrants or

13 service lines installed at construction sites.

14  (g) Water meters.

15  (1) Periodic testing. Unless otherwise approved by the

16  Commission, each service water meter shall be periodically

17  inspected and tested in accordance with the schedule

18  specified in 83 Ill. Adm. Code 600.340, or more frequently

19  as the results may warrant, to insure that the meter

20  accuracy is maintained within the limits set out in 83

21  Ill. Adm. Code 600.310.

22  (2) Meter tests requested by customer.

23  (A) Each utility furnishing metered water service

24  shall, without charge, test the accuracy of any meter

25  upon request by the customer served by such meter,

26  provided that the meter in question has not been
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1   tested by the utility or by the Commission within 2

2   years previous to such request. The customer or his or

3   her representatives shall have the privilege of

4   witnessing the test at the option of the customer. A

5   written report, giving the results of the test, shall

6   be made to the customer.

7   (B) When a meter that has been in service less than

8   2 years since its last test is found to be accurate

9   within the limits specified in 83 Ill. Adm. Code

10  600.310, the customer shall pay a fee to the utility

11  not to exceed the amounts specified in 83 Ill. Adm.

12  Code 600.350(b). Fees for testing meters not included

13  in this Section or so located that the cost will be out

14  of proportion to the fee specified will be determined

15  by the Commission upon receipt of a complete

16  description of the case.

17  (3) Commission referee tests. Upon written application

18  to the Commission by any customer, a test will be made of

19  the customer's meter by a representative of the

20  Commission. For such a test, a fee as provided for in

21  subsection (g)(2) shall accompany the application. If the

22  meter is found to be registering more than 1.5% fast on the

23  average when tested as prescribed in 83 Ill. Adm. Code

24  600.310, the utility shall refund to the customer the

25  amount of the fee. The utility shall in no way disturb the

26  meter after a customer has made an application for a
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1   referee test until authority to do so is given by the

2   Commission or the customer in writing.

3   (h) Water and sewer utilities; low usage. Each public

4 utility that provides water and sewer service must establish a

5 unit sewer rate, subject to review by the Commission, that

6 applies only to those customers who use less than 1,000

7 gallons of water in any billing period.

8   (i) Water and sewer utilities; separate meters. Each

9 public utility that provides water and sewer service must

10 offer separate rates for water and sewer service to any

11 commercial or residential customer who uses separate meters to

12 measure each of those services. In order for the separate rate

13 to apply, a combination of meters must be used to measure the

14 amount of water that reaches the sewer system and the amount of

15 water that does not reach the sewer system.

16  (j) Each water or sewer public utility must disclose on

17 each billing statement any amount billed that is for service

18 provided prior to the date covered by the billing statement.

19 The disclosure must include the dates for which the prior

20 service is being billed. Each billing statement that includes

21 an amount billed for service provided prior to the date

22 covered by the billing statement must disclose the dates for

23 which that amount is billed and must include a copy of the

24 document created under subsection (a) and a statement of

25 current Commission rules concerning unbilled or misbilled

26 service.
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1   (k) When the customer is due a refund resulting from

2 payment of an overcharge, the utility shall credit the

3 customer in the amount of overpayment with interest from the

4 date of overpayment by the customer. The rate for interest

5 shall be at the appropriate rate determined by the Commission

6 under 83 Ill. Adm. Code 280.70.

7   (l) Water and sewer public utilities; subcontractors. The

8 Commission shall adopt rules for water and sewer public

9 utilities to provide notice to the customers of the proper

10 kind of identification that a subcontractor must present to

11 the customer, to prohibit a subcontractor from soliciting or

12 receiving payment of any kind for any service provided by the

13 water or sewer public utility or the subcontractor, and to

14 establish sanctions for violations.

15  (m) Water and sewer public utilities; unaccounted-for

16 water. By December 31, 2006, each water public utility shall

17 file tariffs with the Commission to establish the maximum

18 percentage of unaccounted-for water that would be considered

19 in the determination of any rates or surcharges. The rates or

20 surcharges approved for a water public utility shall not

21 include charges for unaccounted-for water in excess of this

22 maximum percentage without well-documented support and

23 justification for the Commission to consider in any request to

24 recover charges in excess of the tariffed maximum percentage.

25  (n) (Blank). Rate increases; public forums. When any

26 public utility providing water or sewer service proposes a
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 1 general rate increase, in addition to other notice
 2 requirements, the water or sewer public utility must notify
 3 its customers of their right to request a public forum. A
 4 customer or group of customers must make written request to
 5 the Commission for a public forum and must also provide
 6 written notification of the request to the customer's
 7 municipal or, for unincorporated areas, township government.
 8 The Commission, at its discretion, may schedule the public
 9 forum. If it is determined that public forums are required for
10 multiple municipalities or townships, the Commission shall
11 schedule these public forums, in locations within
12 approximately 45 minutes drive time of the municipalities or
13 townships for which the public forums have been scheduled. The
14 public utility must provide advance notice of 30 days for each
15 public forum to the governing bodies of those units of local
16 government affected by the increase. The day of each public
17 forum shall be selected so as to encourage the greatest public
18 participation. Each public forum will begin at 7:00 p.m.
19 Reports and comments made during or as a result of each public
20 forum must be made available to the hearing officials and
21 reviewed when drafting a recommended or tentative decision,
22 finding or order pursuant to Section 10-111 of this Act.
23 (Source: P.A. 94-950, eff. 6-27-06.)

24  (220 ILCS 5/9-226.5 new)

25  Sec. 9-226.5. General rate increases; public forums. When
    HB4514 Enrolled  - 10 - LRB104 17067 AAS 30482 b

1 any public utility providing electric, gas, water, or sewer

2 service proposes a general rate increase, in addition to other

3 notice requirements, the public utility must notify its

4 customers of their right to request a public forum. A customer

5 or group of customers must make a written request to the

6 Commission for the public forum. The Commission, at its

7 discretion, shall schedule the public forum unless it is

8 determined that the Commission does not have adequate staff or

9 financial resources or that the public forum cannot be

10 convened in a timely manner. The public utility must, to the

11 best of the public utility's ability, provide advance notice

12 of 30 days for each public forum to the governing bodies of any

13 units of local government affected by the proposed general

14 rate increase. The day and location of each public forum shall

15 be selected so as to encourage the greatest public

16 participation. Reports and comments made during or as a result

17 of each public forum must be made available to the hearing

18 officials and reviewed when drafting a recommended or

19 tentative decision, finding, or order. Failure to comply with

20 this Section shall not render invalid or otherwise affect the

21 validity of any order entered by the Commission in a general

22 rate proceeding.

23  This Section does not apply to a public utility providing

24 electric, gas, water, or sewer service to less than 15,000

25 customers as of January 1, 2026.

26  Section 99. Effective date. This Act takes effect on
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1 January 1, 2027.
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