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91_SB1597
LRB9109378JSpc
1 AN ACT to amend the Public Utilities Act by changing
2 Sections 7-204 and 13-101.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Act is amended by
6 changing Sections 7-204 and 13-101 as follows:
7 (220 ILCS 5/7-204) (from Ch. 111 2/3, par. 7-204)
8 Sec. 7-204. Reorganization defined; Commission approval
9 therefore.
10 (a) For purposes of this Section, "reorganization" means
11 any transaction which, regardless of the means by which it is
12 accomplished, results in a change in the ownership of a
13 majority of the voting capital stock of an Illinois public
14 utility; or the ownership or control of any entity which owns
15 or controls a majority of the voting capital stock of a
16 public utility; or by which 2 public utilities merge, or by
17 which a public utility acquires substantially all of the
18 assets of another public utility; provided, however, that
19 "reorganization" as used in this Section shall not include a
20 mortgage or pledge transaction entered into to secure a bona
21 fide borrowing by the party granting the mortgage or making
22 the pledge.
23 In addition to the foregoing, "reorganization" shall
24 include for purposes of this Section any transaction which,
25 regardless of the means by which it is accomplished, will
26 have the effect of terminating the affiliated interest status
27 of any entity as defined in paragraphs (a), (b), (c) or (d)
28 of subsection (2) of Section 7-101 of this Act where such
29 entity had transactions with the public utility, in the 12
30 calendar months immediately preceding the date of termination
31 of such affiliated interest status subject to subsection (3)
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1 of Section 7-101 of this Act with a value greater than 15% of
2 the public utility's revenues for that same 12-month period.
3 If the proposed transaction would have the effect of
4 terminating the affiliated interest status of more than one
5 Illinois public utility, the utility with the greatest
6 revenues for the 12-month period shall be used to determine
7 whether such proposed transaction is a reorganization for the
8 purposes of this Section. The Commission shall have
9 jurisdiction over any reorganization as defined herein.
10 (b) No reorganization shall take place without prior
11 Commission approval. The Commission shall not approve any
12 proposed reorganization if the Commission finds, after notice
13 and hearing, that the reorganization will adversely affect
14 the utility's ability to perform its duties under this Act.
15 In reviewing any proposed reorganization, the Commission must
16 find that:
17 (1) the proposed reorganization will not diminish
18 the utility's ability to provide adequate, reliable,
19 efficient, safe and least-cost public utility service;
20 (2) the proposed reorganization will not result in
21 the unjustified subsidization of non-utility activities
22 by the utility or its customers;
23 (3) costs and facilities are fairly and reasonably
24 allocated between utility and non-utility activities in
25 such a manner that the Commission may identify those
26 costs and facilities which are properly included by the
27 utility for ratemaking purposes;
28 (4) the proposed reorganization will not
29 significantly impair the utility's ability to raise
30 necessary capital on reasonable terms or to maintain a
31 reasonable capital structure;
32 (5) the utility will remain subject to all
33 applicable laws, regulations, rules, decisions and
34 policies governing the regulation of Illinois public
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1 utilities;
2 (6) the proposed reorganization is not likely to
3 have a significant adverse effect on competition in those
4 markets over which the Commission has jurisdiction;
5 (7) the proposed reorganization is not likely to
6 result in any adverse rate impacts on retail customers.
7 (c) The Commission shall not approve a reorganization
8 without ruling on: (i) the allocation of any savings
9 resulting from the proposed reorganization; and (ii) whether
10 the companies should be allowed to recover any costs incurred
11 in accomplishing the proposed reorganization and, if so, the
12 amount of costs eligible for recovery and how the costs will
13 be allocated.
14 (d) The Commission shall issue its Order approving or
15 denying the proposed reorganization within 11 months after
16 the application is filed. The Commission may extend the
17 deadline for a period equivalent to the length of any delay
18 which the Commission finds to have been caused by the
19 Applicant's failure to provide data or information requested
20 by the Commission or that the Commission ordered the
21 Applicant to provide to the parties. The Commission may also
22 extend the deadline by an additional period not to exceed 3
23 months to consider amendments to the Applicant's filing, or
24 to consider reasonably unforeseeable changes in circumstances
25 subsequent to the Applicant's initial filing.
26 (e) Subsections (c) and (d) and subparagraphs (6) and
27 (7) of subsection (b) of this Section shall apply only to
28 merger applications submitted to the Commission subsequent to
29 April 23, 1997. No other Commission approvals shall be
30 required for mergers that are subject to this Section.
31 (f) In approving any proposed reorganization pursuant to
32 this Section the Commission may impose such terms, conditions
33 or requirements as, in its judgment, are necessary to protect
34 the interests of the public utility and its customers.
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1 (g) The Commission shall review any reorganization
2 involving a telecommunications carrier which has taken place
3 between January 1, 1998 and the effective date of this
4 amendatory Act of the 91st General Assembly where such
5 reorganization was not previously reviewed by the Commission.
6 In reviewing and determining whether to approve any such
7 reorganization, the Commission shall be guided by the same
8 criteria listed in subsection (b), shall make the same ruling
9 described in subsection (c); and shall have the same
10 administrative powers described in subsections (d) and (f).
11 (Source: P.A. 90-561, eff. 12-16-97.)
12 (220 ILCS 5/13-101) (from Ch. 111 2/3, par. 13-101)
13 (Section scheduled to be repealed on July 1, 2001)
14 Sec. 13-101. Application of Act to telecommunications
15 services. Except to the extent modified or supplemented by
16 the specific provisions of this Article, the Sections of this
17 Act pertaining to public utilities, public utility rates and
18 services, and the regulation thereof, are fully and equally
19 applicable to noncompetitive telecommunications rates and
20 services, and the regulation thereof, except where the
21 context clearly renders such provisions inapplicable. Except
22 to the extent modified or supplemented by the specific
23 provisions of this Article, Articles II I through V, Sections
24 7-204, 8-301, 8-505, 9-221, 9-222, 9-222.1, 9-222.2, 9-250,
25 and 9-252.1, and Articles X and XI of this Act are fully and
26 equally applicable to competitive telecommunications rates
27 and carriers and services, and the regulation thereof.
28 (Source: P.A. 90-38, eff. 6-27-97.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.