104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1828 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-211.5 new Amends the Public Utilities Act. Provides that the Illinois Commerce Commission, in a general rate case proceeding initiated by a public utility that provides water and wastewater service in Illinois, is authorized to approve rate designs requested by a public utility that provides water and wastewater service in Illinois if it finds that such rate designs will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or are otherwise in the public interest. Provides that if the Commission finds that any rate design will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or is in the public interest, the Commission shall enter an order approving such rate design. Requires the Commission to take certain evidence presented by the public utility into account when entering its order. Provides that the Commission may require the public utility, in addition to and as part of the required notice to its customers, to provide a description of any rate design being considered in the proceeding, a statement of the estimated bill impact as a result of rate design approved by the Commission, and any other information that the Commission deems necessary. Provides that the Commission may adopt rules to implement the provisions. Effective immediately. LRB104 07324 AAS 17363 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1828 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-211.5 new 220 ILCS 5/9-211.5 new Amends the Public Utilities Act. Provides that the Illinois Commerce Commission, in a general rate case proceeding initiated by a public utility that provides water and wastewater service in Illinois, is authorized to approve rate designs requested by a public utility that provides water and wastewater service in Illinois if it finds that such rate designs will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or are otherwise in the public interest. Provides that if the Commission finds that any rate design will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or is in the public interest, the Commission shall enter an order approving such rate design. Requires the Commission to take certain evidence presented by the public utility into account when entering its order. Provides that the Commission may require the public utility, in addition to and as part of the required notice to its customers, to provide a description of any rate design being considered in the proceeding, a statement of the estimated bill impact as a result of rate design approved by the Commission, and any other information that the Commission deems necessary. Provides that the Commission may adopt rules to implement the provisions. Effective immediately. LRB104 07324 AAS 17363 b LRB104 07324 AAS 17363 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1828 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-211.5 new 220 ILCS 5/9-211.5 new 220 ILCS 5/9-211.5 new Amends the Public Utilities Act. Provides that the Illinois Commerce Commission, in a general rate case proceeding initiated by a public utility that provides water and wastewater service in Illinois, is authorized to approve rate designs requested by a public utility that provides water and wastewater service in Illinois if it finds that such rate designs will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or are otherwise in the public interest. Provides that if the Commission finds that any rate design will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or is in the public interest, the Commission shall enter an order approving such rate design. Requires the Commission to take certain evidence presented by the public utility into account when entering its order. Provides that the Commission may require the public utility, in addition to and as part of the required notice to its customers, to provide a description of any rate design being considered in the proceeding, a statement of the estimated bill impact as a result of rate design approved by the Commission, and any other information that the Commission deems necessary. Provides that the Commission may adopt rules to implement the provisions. Effective immediately. LRB104 07324 AAS 17363 b LRB104 07324 AAS 17363 b LRB104 07324 AAS 17363 b A BILL FOR HB1828LRB104 07324 AAS 17363 b HB1828 LRB104 07324 AAS 17363 b HB1828 LRB104 07324 AAS 17363 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 adding 5 Section 9-211.5 as follows: 6 (220 ILCS 5/9-211.5 new) 7 Sec. 9-211.5. Water and wastewater rate design. 8 (a) The General Assembly finds that: 9 (1) The State of Illinois should enact rate design 10 policies that support prudent and timely investment in 11 water and wastewater infrastructure by public utilities 12 that provide water and wastewater services, in order for 13 all customers of these utilities to receive safe, 14 reliable, and affordable water and wastewater services in 15 accordance with the provisions of this Section. 16 (2) The regulated water and wastewater industry is 17 differently situated with respect to customer bases and 18 service territory composition when compared to other 19 utilities. 20 (3) With respect to the regulated water and wastewater 21 industry, current Illinois statutes do not currently 22 provide express regulatory flexibility regarding rate 23 design mechanisms or models. In addition, recent 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1828 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 220 ILCS 5/9-211.5 new 220 ILCS 5/9-211.5 new 220 ILCS 5/9-211.5 new Amends the Public Utilities Act. Provides that the Illinois Commerce Commission, in a general rate case proceeding initiated by a public utility that provides water and wastewater service in Illinois, is authorized to approve rate designs requested by a public utility that provides water and wastewater service in Illinois if it finds that such rate designs will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or are otherwise in the public interest. Provides that if the Commission finds that any rate design will enhance the equitable provision of safe, reliable, and affordable water and wastewater services or is in the public interest, the Commission shall enter an order approving such rate design. Requires the Commission to take certain evidence presented by the public utility into account when entering its order. Provides that the Commission may require the public utility, in addition to and as part of the required notice to its customers, to provide a description of any rate design being considered in the proceeding, a statement of the estimated bill impact as a result of rate design approved by the Commission, and any other information that the Commission deems necessary. Provides that the Commission may adopt rules to implement the provisions. Effective immediately. LRB104 07324 AAS 17363 b LRB104 07324 AAS 17363 b LRB104 07324 AAS 17363 b A BILL FOR 220 ILCS 5/9-211.5 new LRB104 07324 AAS 17363 b HB1828 LRB104 07324 AAS 17363 b HB1828- 2 -LRB104 07324 AAS 17363 b HB1828 - 2 - LRB104 07324 AAS 17363 b HB1828 - 2 - LRB104 07324 AAS 17363 b 1 Commission Orders acknowledged that the General Assembly 2 may wish to provide guidance to the Commission on rate 3 design policies. 4 (b) The Commission, in a general rate case proceeding 5 pursuant to Section 9-201 of this Act initiated by a public 6 utility that provides water and wastewater service in 7 Illinois, is authorized to approve rate designs requested by a 8 public utility that provides water and wastewater service in 9 Illinois, including rate designs that allocate costs or 10 revenues to different classes or types of service, if it finds 11 that such rate designs will enhance the equitable provision of 12 safe, reliable, and affordable water and wastewater services 13 or are otherwise in the public interest. Such authority shall 14 include the authority to approve rate designs requested by a 15 public utility that provides water and wastewater service in 16 Illinois that do not follow traditional rate design 17 principles, including cost causation. 18 (c) A public utility that provides water and wastewater 19 service in Illinois and requests approval of proposed rate 20 designs consistent with the authority in subsection (b) shall 21 present specific evidence explaining and justifying the 22 proposal, including evidence of each of the following: 23 (1) the current rates of the existing customers of the 24 water and wastewater public utility; 25 (2) the capital investment or investments made or 26 planned by the water and wastewater public utility that HB1828 - 2 - LRB104 07324 AAS 17363 b HB1828- 3 -LRB104 07324 AAS 17363 b HB1828 - 3 - LRB104 07324 AAS 17363 b HB1828 - 3 - LRB104 07324 AAS 17363 b 1 would be supported by the proposed rate design; 2 (3) the level and history of investment, to the extent 3 known, in any water or wastewater system that would 4 benefit from the proposed rate design by the previous 5 owner or operator of a water or wastewater system; 6 (4) future capital investment needs for water or 7 wastewater systems that would benefit from the proposed 8 rate design; 9 (5) the overall benefit that the proposed rate design 10 would have on the water and wastewater public utility's 11 customer base statewide if approved by the Commission; 12 (6) publicly available data on income levels of the 13 customers in the service territories potentially affected 14 by the proposed rate design; and 15 (7) how the proposed rate design would enhance the 16 equitable provision of safe, reliable, and affordable 17 water and wastewater services or is otherwise in the 18 public interest. 19 (d) If, after considering the public utility's evidence as 20 set forth in subsection (c), the Commission finds that the 21 rate design requested by a public utility that provides water 22 and wastewater service in Illinois, including rate designs 23 that allocate costs or revenues to different classes or types 24 of service, will enhance the equitable provision of safe, 25 reliable, and affordable water and wastewater services or is 26 in the public interest, the Commission shall enter an order HB1828 - 3 - LRB104 07324 AAS 17363 b HB1828- 4 -LRB104 07324 AAS 17363 b HB1828 - 4 - LRB104 07324 AAS 17363 b HB1828 - 4 - LRB104 07324 AAS 17363 b 1 approving such rate design. 2 (e) The Commission may require the public utility in a 3 proceeding under subsection (b), in addition to and as part of 4 the required notice to its customers pursuant to Section 5 9-201, to provide a description of any rate design being 6 considered in the proceeding, a statement of the estimated 7 bill impact as a result of any rate design approved pursuant to 8 this Section, and any other information regarding the approved 9 rate design that the Commission deems necessary. 10 (f) Nothing is this Section shall be deemed to be in 11 conflict with nor construed to be in violation of any 12 provision of this Act, including, but not limited to, any 13 provision of this Article or Article VIII. 14 (g) The Commission may adopt rules to implement this 15 Section. HB1828 - 4 - LRB104 07324 AAS 17363 b