Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1275 Compare Versions

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

Old	New	Differences
1	1	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. 9-224220 ILCS 5/9-225 from Ch. 111 2/3, par. 9-225220 ILCS 5/9-229220 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. LRB104 08692 AAS 18746 b A BILL FOR 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. 9-224220 ILCS 5/9-225 from Ch. 111 2/3, par. 9-225220 ILCS 5/9-229220 ILCS 5/9-231 new 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. LRB104 08692 AAS 18746 b LRB104 08692 AAS 18746 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1275 Introduced 1/28/2025, by Sen. Suzy Glowiak Hilton SYNOPSIS AS INTRODUCED:
3	3	220 ILCS 5/9-224 from Ch. 111 2/3, par. 9-224220 ILCS 5/9-225 from Ch. 111 2/3, par. 9-225220 ILCS 5/9-229220 ILCS 5/9-231 new 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
4	4	220 ILCS 5/9-224 from Ch. 111 2/3, par. 9-224
5	5	220 ILCS 5/9-225 from Ch. 111 2/3, par. 9-225
6	6	220 ILCS 5/9-229
7	7	220 ILCS 5/9-231 new
8	8	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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14	14	1 AN ACT concerning regulation.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Public Utilities Act is amended by changing
18	18	5 Sections 9-224, 9-225, and 9-229 and by adding Sections
19	19	6 9-224.1 and 9-231 as follows:
20	20	7 (220 ILCS 5/9-224) (from Ch. 111 2/3, par. 9-224)
21	21	8 Sec. 9-224. (a) The Commission shall not consider as an
22	22	9 expense of any public utility company, for the purpose of
23	23	10 determining any rate or charge, any amount expended for
24	24	11 political activity or lobbying as defined in the "Lobbyist
25	25	12 Registration Act". Additionally, the Commission shall not
26	26	13 consider as an expense of any public utility, for the purpose
27	27	14 of determining any rate or charge, any amount expended for
28	28	15 contributions or gifts to political candidates, political
29	29	16 parties, political or legislative committees, or any committee
30	30	17 or organization working to influence referendum petitions or
31	31	18 elections, contributions to a trade association, or chamber of
32	32	19 commerce.
33	33	20 (b) The Commission shall not consider as an expense of any
34	34	21 public utility company for the purpose of determining any rate
35	35	22 or charge, any amount expended by a public utility company for
36	36	23 director and officer liability insurance and fiduciary
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40	40	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1275 Introduced 1/28/2025, by Sen. Suzy Glowiak Hilton SYNOPSIS AS INTRODUCED:
41	41	220 ILCS 5/9-224 from Ch. 111 2/3, par. 9-224220 ILCS 5/9-225 from Ch. 111 2/3, par. 9-225220 ILCS 5/9-229220 ILCS 5/9-231 new 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
42	42	220 ILCS 5/9-224 from Ch. 111 2/3, par. 9-224
43	43	220 ILCS 5/9-225 from Ch. 111 2/3, par. 9-225
44	44	220 ILCS 5/9-229
45	45	220 ILCS 5/9-231 new
46	46	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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49	49	A BILL FOR
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55	55	220 ILCS 5/9-224 from Ch. 111 2/3, par. 9-224
56	56	220 ILCS 5/9-225 from Ch. 111 2/3, par. 9-225
57	57	220 ILCS 5/9-229
58	58	220 ILCS 5/9-231 new
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77	77	1 liability insurance. In determining whether other types of
78	78	2 insurance purchased by the public utility are recoverable, the
79	79	3 Commission shall determine whether the insurance is of
80	80	4 financial benefit to ratepayers of the public utility or the
81	81	5 public utility's shareholders. If the Commission determines
82	82	6 the insurance purchased by the public utility is of benefit to
83	83	7 the public utility's shareholders, then it shall not be a
84	84	8 recoverable expense.
85	85	9 (Source: P.A. 84-617.)
86	86	10 (220 ILCS 5/9-225) (from Ch. 111 2/3, par. 9-225)
87	87	11 Sec. 9-225. (1) For the purposes of this Section:
88	88	12 (a) "Advertising" means the commercial use, by an
89	89	13 electric, gas, water, or sewer utility, of any media,
90	90	14 including newspapers, printed matter, radio and
91	91	15 television, in order to transmit a message to a
92	92	16 substantial number of members of the public or to such
93	93	17 utility's consumers;
94	94	18 (b) "Political advertising" means any advertising for
95	95	19 the purpose of influencing public opinion with respect to
96	96	20 legislative, administrative or electoral matters, or with
97	97	21 respect to any controversial issue of public importance;
98	98	22 (c) "Promotional advertising" means any advertising
99	99	23 for the purpose of encouraging any person to select or use
100	100	24 the service or additional service of a utility or the
101	101	25 selection or installation of any appliance or equipment
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112	112	1 designed to use such utility's service; and
113	113	2 (d) "Goodwill or institutional advertising" means any
114	114	3 advertising either on a local or national basis designed
115	115	4 primarily to bring the utility's name before the general
116	116	5 public in such a way as to improve the image of the utility
117	117	6 or to promote controversial issues for the utility or the
118	118	7 industry.
119	119	8 (2) In any general rate increase requested by any gas,
120	120	9 electric, water, or sewer utility company under the provisions
121	121	10 of this Act, the Commission shall not consider, for the
122	122	11 purpose of determining any rate, charge, or classification of
123	123	12 costs, any direct or indirect expenditures for promotional,
124	124	13 political, or goodwill or institutional or goodwill
125	125	14 advertising, unless the Commission finds the advertising to be
126	126	15 in the best interest of the Consumer or authorized as provided
127	127	16 pursuant to subsection (3) 3 of this Section.
128	128	17 (3) The following categories of advertising shall be
129	129	18 considered allowable operating expenses for gas, electric,
130	130	19 water, or sewer utilities:
131	131	20 (a) Advertising which informs consumers how they can
132	132	21 conserve energy or water, reduce peak demand for electric
133	133	22 or gas energy, or reduce demand for water;
134	134	23 (b) Advertising required by law or regulations,
135	135	24 including advertising required under Part I of Title II of
136	136	25 the National Energy Conservation Policy Act;
137	137	26 (c) Advertising regarding service interruptions,
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148	148	1 safety measures or emergency conditions;
149	149	2 (d) Advertising concerning employment opportunities
150	150	3 with such utility;
151	151	4 (e) Advertising which promotes the use of energy
152	152	5 efficient appliances, equipment or services;
153	153	6 (f) Explanations of existing or proposed rate
154	154	7 schedules or notifications of hearings thereon;
155	155	8 (g) Advertising that identifies the location and
156	156	9 operating hours of company business offices;
157	157	10 (h) Advertising which promotes the shifting of demand
158	158	11 from peak to off-peak hours or which encourages the
159	159	12 off-peak usage of the service; and
160	160	13 (i) "Other" categories of advertisements not
161	161	14 includable in paragraphs (a) through (h), but which are
162	162	15 not political, promotional, institutional or goodwill
163	163	16 advertisements.
164	164	17 (4) Notwithstanding subsections (2) and (3) of this
165	165	18 Section, goodwill or institutional advertising shall not be a
166	166	19 recoverable expense.
167	167	20 (Source: P.A. 95-814, eff. 8-13-08.)
168	168	21 (220 ILCS 5/9-229)
169	169	22 Sec. 9-229. Consideration of attorney and expert
170	170	23 compensation as an expense and intervenor compensation fund.
171	171	24 (a) The Commission shall deem as a nonrecoverable expense
172	172	25 by a public utility specifically assess the justness and
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183	183	1 reasonableness of any amount expended by the a public utility
184	184	2 to compensate attorneys or technical experts to prepare and
185	185	3 litigate a general rate case filing. This issue shall be
186	186	4 expressly addressed in the Commission's final order.
187	187	5 (b) The State of Illinois shall create a Consumer
188	188	6 Intervenor Compensation Fund subject to the following:
189	189	7 (1) Provision of compensation for Consumer Interest
190	190	8 Representatives that intervene in Illinois Commerce
191	191	9 Commission proceedings will increase public engagement,
192	192	10 encourage additional transparency, expand the information
193	193	11 available to the Commission, and improve decision-making.
194	194	12 (2) As used in this Section, "Consumer interest
195	195	13 representative" means:
196	196	14 (A) a residential utility customer or group of
197	197	15 residential utility customers represented by a
198	198	16 not-for-profit group or organization registered with
199	199	17 the Illinois Attorney General under the Solicitation
200	200	18 for Charity Act;
201	201	19 (B) representatives of not-for-profit groups or
202	202	20 organizations whose membership is limited to
203	203	21 residential utility customers; or
204	204	22 (C) representatives of not-for-profit groups or
205	205	23 organizations whose membership includes Illinois
206	206	24 residents and that address the community, economic,
207	207	25 environmental, or social welfare of Illinois
208	208	26 residents, except government agencies or intervenors
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219	219	1 specifically authorized by Illinois law to participate
220	220	2 in Commission proceedings on behalf of Illinois
221	221	3 consumers.
222	222	4 (3) A consumer interest representative is eligible to
223	223	5 receive compensation from the consumer intervenor
224	224	6 compensation fund if its participation included lay or
225	225	7 expert testimony or legal briefing and argument concerning
226	226	8 the expenses, investments, rate design, rate impact, or
227	227	9 other matters affecting the pricing, rates, costs or other
228	228	10 charges associated with utility service, the Commission
229	229	11 adopts a material recommendation related to a significant
230	230	12 issue in the docket, and participation caused a
231	231	13 significant financial hardship to the participant;
232	232	14 however, no consumer interest representative shall be
233	233	15 eligible to receive an award pursuant to this Section if
234	234	16 the consumer interest representative receives any
235	235	17 compensation, funding, or donations, directly or
236	236	18 indirectly, from parties that have a financial interest in
237	237	19 the outcome of the proceeding.
238	238	20 (4) Within 30 days after September 15, 2021 (the
239	239	21 effective date of Public Act 102-662), each utility that
240	240	22 files a request for an increase in rates under Article IX
241	241	23 or Article XVI shall deposit an amount equal to one half of
242	242	24 the rate case attorney and expert expense reported to
243	243	25 allowed by the Commission, but not to exceed $500,000,
244	244	26 into the fund within 35 days of the date of the
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255	255	1 Commission's final Order in the rate case or 20 days after
256	256	2 the denial of rehearing under Section 10-113 of this Act,
257	257	3 whichever is later. The Consumer Intervenor Compensation
258	258	4 Fund shall be used to provide payment to consumer interest
259	259	5 representatives as described in this Section and the
260	260	6 amount deposited into the fund shall not be a recoverable
261	261	7 expense by the public utility.
262	262	8 (5) An electric public utility with 3,000,000 or more
263	263	9 retail customers shall contribute $450,000 to the Consumer
264	264	10 Intervenor Compensation Fund within 60 days after
265	265	11 September 15, 2021 (the effective date of Public Act
266	266	12 102-662). A combined electric and gas public utility
267	267	13 serving fewer than 3,000,000 but more than 500,000 retail
268	268	14 customers shall contribute $225,000 to the Consumer
269	269	15 Intervenor Compensation Fund within 60 days after
270	270	16 September 15, 2021 (the effective date of Public Act
271	271	17 102-662). A gas public utility with 1,500,000 or more
272	272	18 retail customers that is not a combined electric and gas
273	273	19 public utility shall contribute $225,000 to the Consumer
274	274	20 Intervenor Compensation Fund within 60 days after
275	275	21 September 15, 2021 (the effective date of Public Act
276	276	22 102-662). A gas public utility with fewer than 1,500,000
277	277	23 retail customers but more than 300,000 retail customers
278	278	24 that is not a combined electric and gas public utility
279	279	25 shall contribute $80,000 to the Consumer Intervenor
280	280	26 Compensation Fund within 60 days after September 15, 2021
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291	291	1 (the effective date of Public Act 102-662). A gas public
292	292	2 utility with fewer than 300,000 retail customers that is
293	293	3 not a combined electric and gas public utility shall
294	294	4 contribute $20,000 to the Consumer Intervenor Compensation
295	295	5 Fund within 60 days after September 15, 2021 (the
296	296	6 effective date of Public Act 102-662). A combined electric
297	297	7 and gas public utility serving fewer than 500,000 retail
298	298	8 customers shall contribute $20,000 to the Consumer
299	299	9 Intervenor Compensation Fund within 60 days after
300	300	10 September 15, 2021 (the effective date of Public Act
301	301	11 102-662). A water or sewer public utility serving more
302	302	12 than 100,000 retail customers shall contribute $80,000,
303	303	13 and a water or sewer public utility serving fewer than
304	304	14 100,000 but more than 10,000 retail customers shall
305	305	15 contribute $20,000.
306	306	16 (6)(A) Prior to the entry of a Final Order in a
307	307	17 docketed case, the Commission Administrator shall provide
308	308	18 a payment to a consumer interest representative that
309	309	19 demonstrates through a verified application for funding
310	310	20 that the consumer interest representative's participation
311	311	21 or intervention without an award of fees or costs imposes
312	312	22 a significant financial hardship based on a schedule to be
313	313	23 developed by the Commission. The Administrator may require
314	314	24 verification of costs incurred, including statements of
315	315	25 hours spent, as a condition to paying the consumer
316	316	26 interest representative prior to the entry of a Final
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327	327	1 Order in a docketed case.
328	328	2 (B) If the Commission adopts a material recommendation
329	329	3 related to a significant issue in the docket and
330	330	4 participation caused a financial hardship to the
331	331	5 participant, then the consumer interest representative
332	332	6 shall be allowed payment for some or all of the consumer
333	333	7 interest representative's reasonable attorney's or
334	334	8 advocate's fees, reasonable expert witness fees, and other
335	335	9 reasonable costs of preparation for and participation in a
336	336	10 hearing or proceeding. Expenses related to travel or meals
337	337	11 shall not be compensable.
338	338	12 (C) The consumer interest representative shall submit
339	339	13 an itemized request for compensation to the Consumer
340	340	14 Intervenor Compensation Fund, including the advocate's or
341	341	15 attorney's reasonable fee rate, the number of hours
342	342	16 expended, reasonable expert and expert witness fees, and
343	343	17 other reasonable costs for the preparation for and
344	344	18 participation in the hearing and briefing within 30 days
345	345	19 of the Commission's final order after denial or decision
346	346	20 on rehearing, if any.
347	347	21 (7) Administration of the Fund.
348	348	22 (A) The Consumer Intervenor Compensation Fund is
349	349	23 created as a special fund in the State treasury. All
350	350	24 disbursements from the Consumer Intervenor Compensation
351	351	25 Fund shall be made only upon warrants of the Comptroller
352	352	26 drawn upon the Treasurer as custodian of the Fund upon
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363	363	1 vouchers signed by the Executive Director of the
364	364	2 Commission or by the person or persons designated by the
365	365	3 Director for that purpose. The Comptroller is authorized
366	366	4 to draw the warrant upon vouchers so signed. The Treasurer
367	367	5 shall accept all warrants so signed and shall be released
368	368	6 from liability for all payments made on those warrants.
369	369	7 The Consumer Intervenor Compensation Fund shall be
370	370	8 administered by an Administrator that is a person or
371	371	9 entity that is independent of the Commission. The
372	372	10 administrator will be responsible for the prudent
373	373	11 management of the Consumer Intervenor Compensation Fund
374	374	12 and for recommendations for the award of consumer
375	375	13 intervenor compensation from the Consumer Intervenor
376	376	14 Compensation Fund. The Commission shall issue a request
377	377	15 for qualifications for a third-party program administrator
378	378	16 to administer the Consumer Intervenor Compensation Fund.
379	379	17 The third-party administrator shall be chosen through a
380	380	18 competitive bid process based on selection criteria and
381	381	19 requirements developed by the Commission. The Illinois
382	382	20 Procurement Code does not apply to the hiring or payment
383	383	21 of the Administrator. All Administrator costs may be paid
384	384	22 for using monies from the Consumer Intervenor Compensation
385	385	23 Fund, but the Program Administrator shall strive to
386	386	24 minimize costs in the implementation of the program.
387	387	25 (B) The computation of compensation awarded from the
388	388	26 fund shall take into consideration the market rates paid
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399	399	1 to persons of comparable training and experience who offer
400	400	2 similar services, but may not exceed the comparable market
401	401	3 rate for services paid by the public utility as part of its
402	402	4 nonrecoverable rate case expense reported to the
403	403	5 Commission.
404	404	6 (C)(1) Recommendations on the award of compensation by
405	405	7 the administrator shall include consideration of whether
406	406	8 the Commission adopted a material recommendation related
407	407	9 to a significant issue in the docket and whether
408	408	10 participation caused a financial hardship to the
409	409	11 participant and the payment of compensation is fair, just
410	410	12 and reasonable.
411	411	13 (2) Recommendations on the award of compensation by
412	412	14 the administrator shall be submitted to the Commission for
413	413	15 approval. Unless the Commission initiates an investigation
414	414	16 within 45 days after the notice to the Commission, the
415	415	17 award of compensation shall be allowed 45 days after
416	416	18 notice to the Commission. Such notice shall be given by
417	417	19 filing with the Commission on the Commission's e-docket
418	418	20 system, and keeping open for public inspection the award
419	419	21 for compensation proposed by the Administrator. The
420	420	22 Commission shall have power, and it is hereby given
421	421	23 authority, either upon complaint or upon its own
422	422	24 initiative without complaint, at once, and if it so
423	423	25 orders, without answer or other formal pleadings, but upon
424	424	26 reasonable notice, to enter upon a hearing concerning the
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435	435	1 propriety of the award.
436	436	2 (c) The Commission may adopt rules to implement this
437	437	3 Section.
438	438	4 (Source: P.A. 102-662, eff. 9-15-21; 103-605, eff. 7-1-24.)
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