Illinois 2023-2024 Regular Session

Illinois House Bill HB5157 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5157 Introduced , by Rep. Nabeela Syed SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-210.5220 ILCS 5/9-220.2 Amends the Public Utilities Act. Provides that 20% of the lesser of (rather than the lesser of): (i) the purchase price or (ii) the fair market value 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, subject to any adjustments that the Illinois Commerce Commission deems necessary to ensure such rate base reflects prudent and useful investments in the provision of public utility service. Provides that the difference between the rate base and the purchase price or fair market value shall be borne by the shareholders of the acquiring large public utility. In provisions concerning the acquisition of a water or sewer utility, provides that, at the next election following the public meeting and notice requirements, a referendum shall be placed on the ballot for all electors within the area the water or sewer utility operates. Provides that, 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. Provides that, 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 not approve the large public utility's acquisition of the water or sewer utility. Removes a provision that provides that the Commission may 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, independent of any other matters related to the utility's revenue requirement. Makes other changes. LRB103 35475 SPS 65544 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5157 Introduced , by Rep. Nabeela Syed SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-210.5220 ILCS 5/9-220.2 220 ILCS 5/9-210.5 220 ILCS 5/9-220.2 Amends the Public Utilities Act. Provides that 20% of the lesser of (rather than the lesser of): (i) the purchase price or (ii) the fair market value 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, subject to any adjustments that the Illinois Commerce Commission deems necessary to ensure such rate base reflects prudent and useful investments in the provision of public utility service. Provides that the difference between the rate base and the purchase price or fair market value shall be borne by the shareholders of the acquiring large public utility. In provisions concerning the acquisition of a water or sewer utility, provides that, at the next election following the public meeting and notice requirements, a referendum shall be placed on the ballot for all electors within the area the water or sewer utility operates. Provides that, 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. Provides that, 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 not approve the large public utility's acquisition of the water or sewer utility. Removes a provision that provides that the Commission may 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, independent of any other matters related to the utility's revenue requirement. Makes other changes. LRB103 35475 SPS 65544 b LRB103 35475 SPS 65544 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5157 Introduced , by Rep. Nabeela Syed SYNOPSIS AS INTRODUCED:
3	3	220 ILCS 5/9-210.5220 ILCS 5/9-220.2 220 ILCS 5/9-210.5 220 ILCS 5/9-220.2
4	4	220 ILCS 5/9-210.5
5	5	220 ILCS 5/9-220.2
6	6	Amends the Public Utilities Act. Provides that 20% of the lesser of (rather than the lesser of): (i) the purchase price or (ii) the fair market value 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, subject to any adjustments that the Illinois Commerce Commission deems necessary to ensure such rate base reflects prudent and useful investments in the provision of public utility service. Provides that the difference between the rate base and the purchase price or fair market value shall be borne by the shareholders of the acquiring large public utility. In provisions concerning the acquisition of a water or sewer utility, provides that, at the next election following the public meeting and notice requirements, a referendum shall be placed on the ballot for all electors within the area the water or sewer utility operates. Provides that, 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. Provides that, 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 not approve the large public utility's acquisition of the water or sewer utility. Removes a provision that provides that the Commission may 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, independent of any other matters related to the utility's revenue requirement. Makes other changes.
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9	9	A BILL FOR
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12	12	1 AN ACT concerning regulation.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Public Utilities Act is amended by changing
16	16	5 Sections 9-210.5 and 9-220.2 as follows:
17	17	6 (220 ILCS 5/9-210.5)
18	18	7 (Section scheduled to be repealed on June 1, 2028)
19	19	8 Sec. 9-210.5. Valuation of water and sewer utilities.
20	20	9 (a) In this Section:
21	21	10 "Disinterested" means that the person directly
22	22	11 involved (1) is not a director, officer, or an employee of
23	23	12 the large public utility or the water or sewer utility or
24	24	13 its direct affiliates or subsidiaries for at least 12
25	25	14 months before becoming engaged under this Section; (2)
26	26	15 shall not derive a material financial benefit from the
27	27	16 sale of the water or sewer utility other than fees for
28	28	17 services rendered, and (3) shall not have a member of the
29	29	18 person's immediate family, including a spouse, parents or
30	30	19 spouse's parents, children or spouses of children, or
31	31	20 siblings and their spouses or children, be a director,
32	32	21 officer, or employee of either the large public utility or
33	33	22 water or sewer utility or the water or sewer utility or its
34	34	23 direct affiliates or subsidiaries for at least 12 months
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5157 Introduced , by Rep. Nabeela Syed SYNOPSIS AS INTRODUCED:
39	39	220 ILCS 5/9-210.5220 ILCS 5/9-220.2 220 ILCS 5/9-210.5 220 ILCS 5/9-220.2
40	40	220 ILCS 5/9-210.5
41	41	220 ILCS 5/9-220.2
42	42	Amends the Public Utilities Act. Provides that 20% of the lesser of (rather than the lesser of): (i) the purchase price or (ii) the fair market value 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, subject to any adjustments that the Illinois Commerce Commission deems necessary to ensure such rate base reflects prudent and useful investments in the provision of public utility service. Provides that the difference between the rate base and the purchase price or fair market value shall be borne by the shareholders of the acquiring large public utility. In provisions concerning the acquisition of a water or sewer utility, provides that, at the next election following the public meeting and notice requirements, a referendum shall be placed on the ballot for all electors within the area the water or sewer utility operates. Provides that, 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. Provides that, 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 not approve the large public utility's acquisition of the water or sewer utility. Removes a provision that provides that the Commission may 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, independent of any other matters related to the utility's revenue requirement. Makes other changes.
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45	45	A BILL FOR
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71	71	1 before becoming engaged under this Section or receive a
72	72	2 material financial benefit from the sale of the water or
73	73	3 sewer utility other than fees for services rendered.
74	74	4 "District" means a service area of a large public
75	75	5 utility whose customers are subject to the same rate
76	76	6 tariff.
77	77	7 "Large public utility" means an investor-owned public
78	78	8 utility that:
79	79	9 (1) is subject to regulation by the Illinois
80	80	10 Commerce Commission under this Act;
81	81	11 (2) regularly provides water or sewer service to
82	82	12 more than 15,000 customer connections;
83	83	13 (3) provides safe and adequate service; and
84	84	14 (4) is not a water or sewer utility as defined in
85	85	15 this subsection (a).
86	86	16 "Next rate case" means a large public utility's first
87	87	17 general rate case after the date the large public utility
88	88	18 acquires the water or sewer utility where the acquired
89	89	19 water or sewer utility's cost of service is considered as
90	90	20 part of determining the large public utility's resulting
91	91	21 rates.
92	92	22 "Prior rate case" means a large public utility's
93	93	23 general rate case resulting in the rates in effect for the
94	94	24 large public utility at the time it acquires the water or
95	95	25 sewer utility.
96	96	26 "Utility service source" means the water or sewer
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107	107	1 utility or large public utility from which the customer
108	108	2 receives its utility service type.
109	109	3 "Utility service type" means water utility service or
110	110	4 sewer utility service or water and sewer utility service.
111	111	5 "Water or sewer utility" means any of the following:
112	112	6 (1) a public utility that regularly provides water
113	113	7 or sewer service to 6,000 or fewer customer
114	114	8 connections;
115	115	9 (2) a water district, including, but not limited
116	116	10 to, a public water district, water service district,
117	117	11 or surface water protection district, or a sewer
118	118	12 district of any kind established as a special district
119	119	13 under the laws of this State that regularly provides
120	120	14 water or sewer service;
121	121	15 (3) a waterworks system or sewerage system
122	122	16 established under the Township Code that regularly
123	123	17 provides water or sewer service; or
124	124	18 (4) a water system or sewer system owned by a
125	125	19 municipality that regularly provides water or sewer
126	126	20 service; and
127	127	21 (5) any other entity that is not a public utility
128	128	22 that regularly provides water or sewer service.
129	129	23 (b) Notwithstanding any other provision of this Act, a
130	130	24 large public utility that acquires a water or sewer utility
131	131	25 may request that the Commission use, and, if so requested, the
132	132	26 Commission shall use, the procedures set forth under this
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143	143	1 Section to establish the ratemaking rate base of that water or
144	144	2 sewer utility at the time when it is acquired by the large
145	145	3 public utility.
146	146	4 (c) If a large public utility elects the procedures under
147	147	5 this Section to establish the rate base of a water or sewer
148	148	6 utility that it is acquiring, then 3 appraisals shall be
149	149	7 performed. The average of these 3 appraisals shall represent
150	150	8 the fair market value of the water or sewer utility that is
151	151	9 being acquired. The appraisals shall be performed by 3
152	152	10 appraisers approved by the Commission's Executive Director or
153	153	11 designee and engaged by either the water or sewer utility
154	154	12 being acquired or by the large public utility. Each appraiser
155	155	13 shall be engaged on reasonable terms approved by the
156	156	14 Commission. Each appraiser shall be a disinterested person
157	157	15 licensed as a State certified general real estate appraiser
158	158	16 under the Real Estate Appraiser Licensing Act of 2002.
159	159	17 Each appraiser shall:
160	160	18 (1) be sworn to determine the fair market value of the
161	161	19 water or sewer utility by establishing the amount for
162	162	20 which the water or sewer utility would be sold in a
163	163	21 voluntary transaction between a willing buyer and willing
164	164	22 seller under no obligation to buy or sell;
165	165	23 (2) determine fair market value in compliance with the
166	166	24 Uniform Standards of Professional Appraisal Practice;
167	167	25 (3) engage one disinterested engineer who is licensed
168	168	26 in this State, and who may be the same engineer that is
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179	179	1 engaged by the other appraisers, to prepare an assessment
180	180	2 of the tangible assets of the water or sewer utility,
181	181	3 which is to be incorporated into the appraisal under the
182	182	4 cost approach;
183	183	5 (4) request from the manager of the Accounting
184	184	6 Department, if the water or sewer utility is a public
185	185	7 utility that is regulated by the Commission, a list of
186	186	8 investments made by the water or sewer utility that had
187	187	9 been disallowed previously and that shall be excluded from
188	188	10 the calculation of the large public utility's rate base in
189	189	11 its next rate case; and
190	190	12 (5) return their appraisal, in writing, to the water
191	191	13 or sewer utility and large public utility in a reasonable
192	192	14 and timely manner.
193	193	15 If the appraiser cannot engage an engineer, as described
194	194	16 in paragraph (3) of this subsection (c), within 30 days after
195	195	17 the appraiser is engaged, then the Commission's Executive
196	196	18 Director or designee shall recommend the engineer the
197	197	19 appraiser should engage. The Commission's Executive Director
198	198	20 or designee shall provide his or her recommendation within 30
199	199	21 days after he or she is officially notified of the appraiser's
200	200	22 failure to engage an engineer and the appraiser shall promptly
201	201	23 work to engage the recommended engineer. If the appraiser is
202	202	24 unable to negotiate reasonable engagement terms with the
203	203	25 recommended engineer within 15 days after the recommendation
204	204	26 by the Commission's Executive Director or designee, then the
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215	215	1 appraiser shall notify the Commission's Executive Director or
216	216	2 designee and the process shall be repeated until an engineer
217	217	3 is successfully engaged.
218	218	4 (d) Twenty percent of the The lesser of (i) the purchase
219	219	5 price or (ii) the fair market value determined under
220	220	6 subsection (c) of this Section shall constitute the rate base
221	221	7 associated with the water or sewer utility as acquired by and
222	222	8 incorporated into the rate base of the district designated by
223	223	9 the acquiring large public utility under this Section, subject
224	224	10 to any adjustments that the Commission deems necessary to
225	225	11 ensure such rate base reflects prudent and useful investments
226	226	12 in the provision of public utility service. The difference
227	227	13 between the rate base and the purchase price or fair market
228	228	14 value shall be borne by the shareholders of the acquiring
229	229	15 large public utility. The reasonable transaction and closing
230	230	16 costs incurred by the large public utility shall be treated
231	231	17 consistent with the applicable accounting standards under this
232	232	18 Act. The total amount of all of the appraisers' fees to be
233	233	19 included in the transaction and closing costs shall not exceed
234	234	20 the greater of $15,000 or 5% of the appraised value of the
235	235	21 water or sewer utility being acquired. This rate base
236	236	22 treatment shall not be deemed to violate this Act, including,
237	237	23 but not limited to, any Sections in Articles VIII and IX of
238	238	24 this Act that might be affected by this Section, provided that
239	239	25 only 20% of the transaction and closing costs are included in
240	240	26 the rate base. Any acquisition of a water or sewer utility that
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251	251	1 affects the cumulative base rates of the large public
252	252	2 utility's existing ratepayers in the tariff group into which
253	253	3 the water or sewer utility is to be combined by less than (1)
254	254	4 2.5% at the time of the acquisition for any single acquisition
255	255	5 completed under this Section or (2) 5% for all acquisitions
256	256	6 completed under this Section before the Commission's final
257	257	7 order in the next rate case shall not be deemed to violate
258	258	8 Section 7-204 or any other provision of this Act.
259	259	9 In the Commission's order that approves the large public
260	260	10 utility's acquisition of the water or sewer utility, the
261	261	11 Commission shall issue its decision establishing (1) the
262	262	12 ratemaking rate base of the water or sewer utility; (2) the
263	263	13 district or tariff group with which the water or sewer utility
264	264	14 shall be combined for ratemaking purposes, if such combination
265	265	15 has been proposed by the large public utility; and (3) the
266	266	16 rates to be charged to customers in the water or sewer utility.
267	267	17 (e) If the water or sewer utility being acquired is owned
268	268	18 by the State or any political subdivision thereof, then the
269	269	19 water or sewer utility must inform the public of the terms of
270	270	20 its acquisition by the large public utility by (1) holding a
271	271	21 public meeting prior to the acquisition and (2) causing to be
272	272	22 published, in a newspaper of general circulation in the area
273	273	23 that the water or sewer utility operates, a notice setting
274	274	24 forth the terms of its acquisition by the large public utility
275	275	25 and options that shall be available to assist customers to pay
276	276	26 their bills after the acquisition.
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287	287	1 At the next election following the public meeting and
288	288	2 notice required by this subsection, a referendum, subject to
289	289	3 the requirements of Section 16-7 of the Election Code, shall
290	290	4 be placed on the ballot for all electors within the area the
291	291	5 water or sewer utility operates in substantially the following
292	292	6 form:
293	293	7 May the (name of large public utility) acquire the
294	294	8 (name of water or sewer utility) under the terms of
295	295	9 acquisition published in (name of newspaper) on (date)?
296	296	10 The votes shall be recorded as "Yes" or "No".
297	297	11 If a majority of the electors voting on the referendum
298	298	12 within the service area of the water or sewer utility vote in
299	299	13 favor of the referendum, then the acquisition may continue as
300	300	14 provided in this Section. If less than a majority of the
301	301	15 electors voting on the referendum within the service area of
302	302	16 the water or sewer utility vote in favor of the referendum, the
303	303	17 Commission shall not approve the large public utility's
304	304	18 acquisition of the water or sewer utility.
305	305	19 (f) The large public utility may recommend the district or
306	306	20 tariff group of which the water or sewer utility shall, for
307	307	21 ratemaking purposes, become a part after the acquisition, or
308	308	22 may recommend a lesser rate for the water or sewer utility. If
309	309	23 the large public utility recommends a lesser rate, it shall
310	310	24 submit to the Commission its proposed rate schedule and the
311	311	25 proposed final tariff group for the acquired water or sewer
312	312	26 utility. The Commission's approved district or tariff group or
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323	323	1 rates shall be consistent with the large public utility's
324	324	2 recommendation, unless such recommendation can be shown to be
325	325	3 contrary to the public interest.
326	326	4 (g) From the date of acquisition until the date that new
327	327	5 rates are effective in the acquiring large public utility's
328	328	6 next rate case, the customers of the acquired water or sewer
329	329	7 utility shall pay the approved then-existing rates of the
330	330	8 district or tariff group as ordered by the Commission, or some
331	331	9 lesser rates as recommended by the large public utility and
332	332	10 approved by the Commission under subsection (f); provided,
333	333	11 that, if the application of such rates of the large public
334	334	12 utility to customers of the acquired water or sewer utility
335	335	13 using 54,000 gallons annually results in an increase to the
336	336	14 total annual bill of customers of the acquired water or sewer
337	337	15 utility, exclusive of fire service or related charges, then
338	338	16 the large public utility's rates charged to the customers of
339	339	17 the acquired water or sewer utility shall be uniformly
340	340	18 reduced, if any reduction is required, by the percent that
341	341	19 results in the total annual bill, exclusive of fire services
342	342	20 or related charges, for the customers of the acquired water or
343	343	21 sewer utility using 54,000 gallons being equal to 1.5% of the
344	344	22 latest median household income as reported by the United
345	345	23 States Census Bureau for the most applicable community or
346	346	24 county. For each customer of the water or sewer utility with
347	347	25 potable water usage values that cannot be reasonably obtained,
348	348	26 a value of 4,500 gallons per month shall be assigned. These
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359	359	1 rates shall not be deemed to violate this Act including, but
360	360	2 not limited to, Section 9-101 and any other applicable
361	361	3 Sections in Articles VIII and IX of this Act. The Commission
362	362	4 shall issue its decision establishing the rates effective for
363	363	5 the water or sewer utility immediately following an
364	364	6 acquisition in its order approving the acquisition.
365	365	7 (h) In the acquiring large public utility's next rate
366	366	8 case, the water or sewer utility and the district or tariff
367	367	9 group ordered by the Commission and their costs of service may
368	368	10 be combined under the same rate tariff. This rate tariff shall
369	369	11 be based on allocation of costs of service of the acquired
370	370	12 water or sewer utility and the large public utility's district
371	371	13 or tariff group ordered by the Commission and utilizing a rate
372	372	14 design that does not distinguish among customers on the basis
373	373	15 of utility service source or type. This rate tariff shall not
374	374	16 be deemed to violate this Act including, but not limited to,
375	375	17 Section 9-101 of this Act. In the acquiring large public
376	376	18 utility's 2 rate cases after an acquisition, but in no
377	377	19 subsequent rate case, the large public utility may file a rate
378	378	20 tariff for a water or sewer utility acquired under this
379	379	21 Section that establishes lesser rates than the district or
380	380	22 tariff group into which the water or sewer utility is to be
381	381	23 combined. Those lesser rates shall not be deemed to violate
382	382	24 Section 7-204 or any other provision of this Act if they affect
383	383	25 the cumulative base rates of the large public utility's
384	384	26 existing rate payers in the district or tariff by less than
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395	395	1 2.5%.
396	396	2 (i) Any post-acquisition improvements made by the large
397	397	3 public utility in the water or sewer utility shall accrue a
398	398	4 cost for financing set at the large public utility's
399	399	5 determined rate for allowance for funds used during
400	400	6 construction, inclusive of the debt, equity, and income tax
401	401	7 gross up components, after the date on which the expenditure
402	402	8 was incurred by the large public utility until the investment
403	403	9 has been in service for a 4-year period or, if sooner, until
404	404	10 the time the rates are implemented in the large public
405	405	11 utility's next rate case.
406	406	12 Any post-acquisition improvements made by the large public
407	407	13 utility in the water or sewer utility shall not be depreciated
408	408	14 for ratemaking purposes from the date on which the expenditure
409	409	15 was incurred by the large public utility until the investment
410	410	16 has been in service for a 4-year period or, if sooner, until
411	411	17 the time the rates are implemented in the large public
412	412	18 utility's next rate case.
413	413	19 (j) This Section shall be exclusively applied to large
414	414	20 public utilities in the voluntary and mutually agreeable
415	415	21 acquisition of water or sewer utilities. Any petitions filed
416	416	22 with the Commission related to the acquisitions described in
417	417	23 this Section, including petitions seeking approvals or
418	418	24 certificates required by this Act, shall be deemed approved
419	419	25 unless the Commission issues its final order within 11 months
420	420	26 after the date the large public utility filed its initial
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431	431	1 petition. This Section shall only apply to utilities providing
432	432	2 water or sewer service and shall not be construed in any manner
433	433	3 to apply to electric corporations, natural gas corporations,
434	434	4 or any other utility subject to this Act.
435	435	5 (k) Nothing in this Section shall prohibit a party from
436	436	6 declining to proceed with an acquisition or be deemed as
437	437	7 establishing the final purchase price of an acquisition.
438	438	8 (l) In the Commission's order that approves the large
439	439	9 utility's acquisition of the water or sewer utility, the
440	440	10 Commission shall address each aspect of the acquisition
441	441	11 transaction for which approval is required under the Act.
442	442	12 (m) Any contractor or subcontractor that performs work on
443	443	13 a water or sewer utility acquired by a large public utility
444	444	14 under this Section shall be a responsible bidder as described
445	445	15 in Section 30-22 of the Illinois Procurement Code. The
446	446	16 contractor or subcontractor shall submit evidence of meeting
447	447	17 the requirements to be a responsible bidder as described in
448	448	18 Section 30-22 to the water or sewer utility. Any new water or
449	449	19 sewer facility built as a result of the acquisition shall
450	450	20 require the contractor to enter into a project labor
451	451	21 agreement. The large public utility acquiring the water or
452	452	22 sewer utility shall offer employee positions to qualified
453	453	23 employees of the acquired water or sewer utility.
454	454	24 (n) This Section is repealed on June 1, 2028.
455	455	25 (Source: P.A. 102-149, eff. 1-1-22.)
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466	466	1 (220 ILCS 5/9-220.2)
467	467	2 Sec. 9-220.2. Water and sewer surcharges authorized.
468	468	3 (a) The Commission may authorize a water or sewer utility
469	469	4 to file a surcharge which adjusts rates and charges to provide
470	470	5 for recovery of (i) the cost of purchased water, (ii) the cost
471	471	6 of purchased sewage treatment service, or (iii) other costs
472	472	7 which fluctuate for reasons beyond the utility's control or
473	473	8 are difficult to predict, or (iv) costs associated with an
474	474	9 investment in qualifying infrastructure plant, independent of
475	475	10 any other matters related to the utility's revenue
476	476	11 requirement. A surcharge approved under this Section can
477	477	12 operate on an historical or a prospective basis.
478	478	13 (b) (Blank). For purposes of this Section, "costs
479	479	14 associated with an investment in qualifying infrastructure
480	480	15 plant" include a return on the investment in and depreciation
481	481	16 expense related to plant items or facilities (including, but
482	482	17 not limited to, replacement mains, meters, services, and
483	483	18 hydrants) which (i) are not reflected in the rate base used to
484	484	19 establish the utility's base rates and (ii) are non-revenue
485	485	20 producing. For purposes of this Section, a "non-revenue
486	486	21 producing facility" is one that is not constructed or
487	487	22 installed for the purpose of serving a new customer.
488	488	23 (c) On a periodic basis, the Commission shall initiate
489	489	24 hearings to reconcile amounts collected under each surcharge
490	490	25 authorized pursuant to this Section with the actual prudently
491	491	26 incurred costs recoverable for each annual period during which
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