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 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2721 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-220.2 220 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 LRB103 30333 AMQ 56763 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2721 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-220.2 220 ILCS 5/9-220.2 220 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 LRB103 30333 AMQ 56763 b LRB103 30333 AMQ 56763 b A BILL FOR HB2721LRB103 30333 AMQ 56763 b HB2721 LRB103 30333 AMQ 56763 b HB2721 LRB103 30333 AMQ 56763 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 9-220.2 as follows: 6 (220 ILCS 5/9-220.2) 7 Sec. 9-220.2. Water and sewer surcharges authorized. 8 (a) The Commission may authorize a water or sewer utility 9 to file a surcharge which adjusts rates and charges to provide 10 for recovery of (i) the cost of purchased water, (ii) the cost 11 of purchased sewage treatment service, or (iii) other costs 12 which fluctuate for reasons beyond the utility's control or 13 are difficult to predict, or (iv) costs associated with an 14 investment in qualifying infrastructure plant, independent of 15 any other matters related to the utility's revenue 16 requirement. A surcharge approved under this Section can 17 operate on an historical or a prospective basis. 18 (b) (Blank). For purposes of this Section, "costs 19 associated with an investment in qualifying infrastructure 20 plant" include a return on the investment in and depreciation 21 expense related to plant items or facilities (including, but 22 not limited to, replacement mains, meters, services, and 23 hydrants) which (i) are not reflected in the rate base used to 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2721 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-220.2 220 ILCS 5/9-220.2 220 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 LRB103 30333 AMQ 56763 b LRB103 30333 AMQ 56763 b A BILL FOR 220 ILCS 5/9-220.2 LRB103 30333 AMQ 56763 b HB2721 LRB103 30333 AMQ 56763 b HB2721- 2 -LRB103 30333 AMQ 56763 b HB2721 - 2 - LRB103 30333 AMQ 56763 b HB2721 - 2 - LRB103 30333 AMQ 56763 b 1 establish the utility's base rates and (ii) are non-revenue 2 producing. For purposes of this Section, a "non-revenue 3 producing facility" is one that is not constructed or 4 installed for the purpose of serving a new customer. 5 (c) On a periodic basis, the Commission shall initiate 6 hearings to reconcile amounts collected under each surcharge 7 authorized pursuant to this Section with the actual prudently 8 incurred costs recoverable for each annual period during which 9 the surcharge was in effect. 10 (Source: P.A. 91-638, eff. 1-1-00.) HB2721 - 2 - LRB103 30333 AMQ 56763 b