Bill Text: IL HB2786 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Public Utilities Act. Changes references from "citizens" to "consumers" throughout the Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-02-16 - Referred to Rules Committee [HB2786 Detail]

Download: Illinois-2023-HB2786-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2786 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED:
220 ILCS 5/1-102 from Ch. 111 2/3, par. 1-102
220 ILCS 5/4-304 from Ch. 111 2/3, par. 4-304
220 ILCS 5/4-605
220 ILCS 5/13-102 from Ch. 111 2/3, par. 13-102
220 ILCS 5/13-103 from Ch. 111 2/3, par. 13-103
220 ILCS 5/13-900
220 ILCS 5/16-101A
220 ILCS 5/16-111.2
220 ILCS 5/16-128
Amends the Public Utilities Act. Changes references from "citizens" to "consumers" throughout the Act.
LRB103 30267 AMQ 56695 b
A BILL FOR
HB2786 LRB103 30267 AMQ 56695 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Utilities Act is amended by changing
Sections 1-102, 4-304, 4-605, 13-102, 13-103, 13-900, 16-101A,
16-111.2, and 16-128 as follows:
(220 ILCS 5/1-102) (from Ch. 111 2/3, par. 1-102)
Sec. 1-102. Findings and Intent. The General Assembly
finds that the health, welfare and prosperity of all Illinois
consumers citizens require the provision of adequate,
efficient, reliable, environmentally safe and least-cost
public utility services at prices which accurately reflect the
long-term cost of such services and which are equitable to all
consumers citizens. It is therefore declared to be the policy
of the State that public utilities shall continue to be
regulated effectively and comprehensively. It is further
declared that the goals and objectives of such regulation
shall be to ensure
(a) Efficiency: the provision of reliable energy
services at the least possible cost to the consumers
citizens of the State; in such manner that:
(i) physical, human and financial resources are
allocated efficiently;

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(ii) all supply and demand options are considered
and evaluated using comparable terms and methods in
order to determine how utilities shall meet their
customers' demands for public utility services at the
least cost;
(iii) utilities are allowed a sufficient return on
investment so as to enable them to attract capital in
financial markets at competitive rates;
(iv) tariff rates for the sale of various public
utility services are authorized such that they
accurately reflect the cost of delivering those
services and allow utilities to recover the total
costs prudently and reasonably incurred;
(v) variation in costs by customer class and time
of use is taken into consideration in authorizing
rates for each class.
(b) Environmental Quality: the protection of the
environment from the adverse external costs of public
utility services so that
(i) environmental costs of proposed actions having
a significant impact on the environment and the
environmental impact of the alternatives are
identified, documented and considered in the
regulatory process;
(ii) the prudently and reasonably incurred costs
of environmental controls are recovered.

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(c) Reliability: the ability of utilities to provide
consumers with public utility services under varying
demand conditions in such manner that suppliers of public
utility services are able to provide service at varying
levels of economic reliability giving appropriate
consideration to the costs likely to be incurred as a
result of service interruptions, and to the costs of
increasing or maintaining current levels of reliability
consistent with commitments to consumers.
(d) Equity: the fair treatment of consumers and
investors in order that
(i) the public health, safety and welfare shall be
protected;
(ii) the application of rates is based on public
understandability and acceptance of the reasonableness
of the rate structure and level;
(iii) the cost of supplying public utility
services is allocated to those who cause the costs to
be incurred;
(iv) if factors other than cost of service are
considered in regulatory decisions, the rationale for
these actions is set forth;
(v) regulation allows for orderly transition
periods to accommodate changes in public utility
service markets;
(vi) regulation does not result in undue or

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sustained adverse impact on utility earnings;
(vii) the impacts of regulatory actions on all
sectors of the State are carefully weighed;
(viii) the rates for utility services are
affordable and therefore preserve the availability of
such services to all consumers citizens.
It is further declared to be the policy of the State that
this Act shall not apply in relation to motor carriers and rail
carriers as defined in the Illinois Commercial Transportation
Law, or to the Commission in the regulation of such carriers.
Nothing in this Act shall be construed to limit, restrict,
or mitigate in any way the power and authority of the State's
Attorneys or the Attorney General under the Consumer Fraud and
Deceptive Business Practices Act.
(Source: P.A. 92-22, eff. 6-30-01.)
(220 ILCS 5/4-304) (from Ch. 111 2/3, par. 4-304)
Sec. 4-304. Beginning in 1986, the Commission shall
prepare an annual report which shall be filed by January 31 of
each year with the Joint Committee on Legislative Support
Services of the General Assembly and the Governor and which
shall be publicly available. Such report shall include:
(1) A general review of agency activities and changes,
including:
(a) a review of significant decisions and other
regulatory actions for the preceding year, and pending

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cases, and an analysis of the impact of such decisions
and actions, and potential impact of any significant
pending cases;
(b) for each significant decision, regulatory
action and pending case, a description of the
positions advocated by major parties, including
Commission staff, and for each such decision rendered
or action taken, the position adopted by the
Commission and reason therefor;
(c) a description of the Commission's budget,
caseload, and staff levels, including specifically:
(i) a breakdown by type of case of the cases
resolved and filed during the year and of pending
cases;
(ii) a description of the allocation of the
Commission's budget, identifying amounts budgeted
for each significant regulatory function or
activity and for each department, bureau, section,
division or office of the Commission and its
employees;
(iii) a description of current employee
levels, identifying any change occurring during
the year in the number of employees, personnel
policies and practices or compensation levels; and
identifying the number and type of employees
assigned to each Commission regulatory function

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and to each department, bureau, section, division
or office of the Commission;
(d) a description of any significant changes in
Commission policies, programs or practices with
respect to agency organization and administration,
hearings and procedures or substantive regulatory
activity.
(2) A discussion and analysis of the state of each
utility industry regulated by the Commission and
significant changes, trends and developments therein,
including the number and types of firms offering each
utility service, existing, new and prospective
technologies, variations in the quality, availability and
price for utility services in different geographic areas
of the State, and any other industry factors or
circumstances which may affect the public interest or the
regulation of such industries.
(3) A specific discussion of the energy planning
responsibilities and activities of the Commission and
energy utilities, including:
(a) the extent to which conservation,
cogeneration, renewable energy technologies and
improvements in energy efficiency are being utilized
by energy consumers, the extent to which additional
potential exists for the economical utilization of
such supplies, and a description of existing and

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proposed programs and policies designed to promote and
encourage such utilization;
(b) a description of each energy plan filed with
the Commission pursuant to the provisions of this Act,
and a copy, or detailed summary of the most recent
energy plans adopted by the Commission;
(c) a discussion of the powers by which the
Commission is implementing the planning
responsibilities of Article VIII, including a
description of the staff and budget assigned to such
function, the procedures by which Commission staff
reviews and analyzes energy plans submitted by the
utilities, the Department of Natural Resources, and
any other person or party; and
(d) a summary of the adoption of solar
photovoltaic systems by residential and small business
consumers in Illinois and a description of any and all
barriers to residential and small business consumers'
financing, installation, and valuation of energy
produced by solar photovoltaic systems; electric
utilities, alternative retail electric suppliers, and
installers of distributed generation shall provide all
information requested by the Commission or its staff
necessary to complete the analysis required by this
paragraph (d).
(4) A discussion of the extent to which utility

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services are available to all Illinois consumers citizens
including:
(a) the percentage and number of persons or
households requiring each such service who are not
receiving such service, and the reasons therefor,
including specifically the number of such persons or
households who are unable to afford such service;
(b) a critical analysis of existing programs
designed to promote and preserve the availability and
affordability of utility services; and
(c) an analysis of the financial impact on
utilities and other ratepayers of the inability of
some customers or potential customers to afford
utility service, including the number of service
disconnections and reconnections, and cost thereof and
the dollar amount of uncollectible accounts recovered
through rates.
(5) A detailed description of the means by which the
Commission is implementing its new statutory
responsibilities under this Act, and the status of such
implementation, including specifically:
(a) Commission reorganization resulting from the
addition of an Executive Director and administrative
law judge qualifications and review;
(b) Commission responsibilities for construction
and rate supervision, including construction cost

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audits, management audits, excess capacity
adjustments, phase-ins of new plant and the means and
capability for monitoring and reevaluating existing or
future construction projects;
(c) promulgation and application of rules
concerning ex parte communications, circulation of
recommended orders and transcription of closed
meetings.
(6) A description of all appeals taken from Commission
orders, findings or decisions and the status and outcome
of such appeals.
(7) A description of the status of all studies and
investigations required by this Act, including those
ordered pursuant to Sections 9-244 and 13-301 and all such
subsequently ordered studies or investigations.
(8) A discussion of new or potential developments in
federal legislation, and federal agency and judicial
decisions relevant to State regulation of utility
services.
(9) All recommendations for appropriate legislative
action by the General Assembly.
The Commission may include such other information as it
deems to be necessary or beneficial in describing or
explaining its activities or regulatory responsibilities. The
report required by this Section shall be adopted by a vote of
the full Commission prior to filing.

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(Source: P.A. 100-840, eff. 8-13-18; 101-81, eff. 7-12-19.)
(220 ILCS 5/4-605)
Sec. 4-605. Reliability mitigation plan findings. The
General Assembly finds that reducing carbon dioxide and
copollutant emissions in a manner that does not threaten
electric reliability and resource adequacy is essential to the
health and safety of all Illinois consumers citizens.
Therefore, the Commission shall review reliability mitigation
plans filed pursuant to Section 9.15 of the Environmental
Protection Act to ensure adequate, reliable, affordable,
efficient, and environmentally sustainable electric service is
available to ratepayers by approving reliability mitigation
plans that permit the Illinois Pollution Control Board to
enforce emission reductions in a manner that preserves
reliability and resource adequacy in wholesale and retail
electricity markets.
(Source: P.A. 102-662, eff. 9-15-21.)
(220 ILCS 5/13-102) (from Ch. 111 2/3, par. 13-102)
(Section scheduled to be repealed on December 31, 2026)
Sec. 13-102. Findings. With respect to telecommunications
services, as herein defined, the General Assembly finds that:
(a) universally available and widely affordable
telecommunications services are essential to the health,
welfare and prosperity of all Illinois consumers citizens;

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(b) federal regulatory and judicial rulings in the
1980s caused a restructuring of the telecommunications
industry and opened some aspects of the industry to
competitive entry, thereby necessitating revision of State
telecommunications regulatory policies and practices;
(c) revisions in telecommunications regulatory
policies and practices in Illinois beginning in the
mid-1980s brought the benefits of competition to consumers
in many telecommunications markets, but not in local
exchange telecommunications service markets;
(d) the federal Telecommunications Act of 1996
established the goal of opening all telecommunications
service markets to competition and accords to the states
the responsibility to establish and enforce policies
necessary to attain that goal;
(e) it is in the immediate interest of the People of
the State of Illinois for the State to exercise its rights
within the new framework of federal telecommunications
policy to ensure that the economic benefits of competition
in all telecommunications service markets are realized as
effectively as possible;
(f) the competitive offering of all telecommunications
services will increase innovation and efficiency in the
provision of telecommunications services and may lead to
reduced prices for consumers, increased investment in
communications infrastructure, the creation of new jobs,

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and the attraction of new businesses to Illinois;
(g) protection of the public interest requires changes
in the regulation of telecommunications carriers and
services to ensure, to the maximum feasible extent, the
reasonable and timely development of effective competition
in all telecommunications service markets;
(h) Illinois residents rely on today's modern wired
and wireless Internet Protocol (IP) networks and services
to improve their lives by connecting them to school and
college degrees, work and job opportunities, family and
friends, information, and entertainment, as well as
emergency responders and public safety officials; Illinois
businesses rely on these modern IP networks and services
to compete in a global marketplace by expanding their
customer base, managing inventory and operations more
efficiently, and offering customers specialized and
personalized products and services; without question,
Illinois residents and our State's economy rely profoundly
on the modern wired and wireless IP networks and services
in our State;
(i) the transition from 20th century traditional
circuit switched and other legacy telephone services to
modern 21st century next generation Internet Protocol (IP)
services is taking place at an extraordinary pace as
Illinois consumers are upgrading to home communications
service using IP technology, including high speed

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Internet, Voice over Internet Protocol, and wireless
service;
(j) this rapid transition to IP-based communications
has dramatically transformed the way people communicate
and has provided significant benefits to consumers in the
form of innovative functionalities resulting from the
seamless convergence of voice, video, and text, benefits
realized by the General Assembly when it chose to
transition its own telecommunications system to an all IP
communications network in 2016;
(k) the benefits of the transition to IP-based
networks and services were also recognized by the General
Assembly in 2015 through the enactment of legislation
requiring that every 9-1-1 emergency system in Illinois
provide Next Generation 9-1-1 service by July 1, 2020, and
requiring that the Next Generation 9-1-1 network must be
an IP-based platform; and
(l) completing the transition to all IP-based networks
and technologies is in the public interest because it will
promote continued innovation, consumer benefits, increased
efficiencies, and increased investment in IP-based
networks and services.
(Source: P.A. 100-20, eff. 7-1-17.)
(220 ILCS 5/13-103) (from Ch. 111 2/3, par. 13-103)
(Section scheduled to be repealed on December 31, 2026)

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Sec. 13-103. Policy. Consistent with its findings, the
General Assembly declares that it is the policy of the State of
Illinois that:
(a) telecommunications services should be available to
all Illinois consumers citizens at just, reasonable, and
affordable rates and that such services should be provided
as widely and economically as possible in sufficient
variety, quality, quantity and reliability to satisfy the
public interest;
(b) consistent with the protection of consumers of
telecommunications services and the furtherance of other
public interest goals, competition in all
telecommunications service markets should be pursued as a
substitute for regulation in determining the variety,
quality and price of telecommunications services and that
the economic burdens of regulation should be reduced to
the extent possible consistent with the furtherance of
market competition and protection of the public interest;
(c) all necessary and appropriate modifications to
State regulation of telecommunications carriers and
services should be implemented without unnecessary
disruption to the telecommunications infrastructure system
or to consumers of telecommunications services and that it
is necessary and appropriate to establish rules to
encourage and ensure orderly transitions in the
development of markets for all telecommunications

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services;
(d) the consumers of telecommunications services and
facilities provided by persons or companies subject to
regulation pursuant to this Act and Article should be
required to pay only reasonable and non-discriminatory
rates or charges and that in no case should rates or
charges for non-competitive telecommunications services
include any portion of the cost of providing competitive
telecommunications services, as defined in Section 13-209,
or the cost of any nonregulated activities;
(e) the regulatory policies and procedures provided in
this Article are established in recognition of the
changing nature of the telecommunications industry and
therefore should be subject to systematic legislative
review to ensure that the public benefits intended to
result from such policies and procedures are fully
realized;
(f) development of and prudent investment in advanced
telecommunications services and networks that foster
economic development of the State should be encouraged
through the implementation and enforcement of policies
that promote effective and sustained competition in all
telecommunications service markets; and
(g) completion of the transition to modern IP-based
networks should be encouraged through relief from the
outdated regulations that require continued investment in

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legacy circuit switched networks from which Illinois
consumers have largely transitioned, while at the same
time ensuring that consumers have access to available
alternative services that provide quality voice service
and access to emergency communications.
(Source: P.A. 100-20, eff. 7-1-17.)
(220 ILCS 5/13-900)
(Section scheduled to be repealed on December 31, 2026)
Sec. 13-900. Authority to serve as 9-1-1 system provider;
rules.
(a) The General Assembly finds that it is necessary to
require the certification of 9-1-1 system providers to ensure
the safety of the lives and property of Illinoisans and
Illinois businesses, and to otherwise protect and promote the
public safety, health, and welfare of the consumers citizens
of this State and their property.
(b) For purposes of this Section:
"9-1-1 system" has the same meaning as that term is
defined in Section 2.19 of the Emergency Telephone System
Act.
"9-1-1 system provider" means any person, corporation,
limited liability company, partnership, sole
proprietorship, or entity of any description whatever that
acts as a system provider within the meaning of Section
2.18 of the Emergency Telephone System Act.

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"Emergency Telephone System Board" has the same
meaning as that term is defined in Sections 2.11 and 15.4
of the Emergency Telephone System Act.
"Public safety agency personnel" means personnel
employed by a public safety agency, as that term is
defined in Section 2.02 of the Emergency Telephone System
Act, whose responsibilities include responding to requests
for emergency services.
(c) Except as otherwise provided in this Section,
beginning July 1, 2010, it is unlawful for any 9-1-1 system
provider to offer or provide or seek to offer or provide to any
emergency telephone system board or 9-1-1 system, or agent,
representative, or designee thereof, any network and database
service used or intended to be used by any emergency telephone
system board or 9-1-1 system for the purpose of answering,
transferring, or relaying requests for emergency services, or
dispatching public safety agency personnel in response to
requests for emergency services, unless the 9-1-1 system
provider has applied for and received a Certificate of 9-1-1
System Provider Authority from the Commission. The Commission
shall approve an application for a Certificate of 9-1-1 System
Provider Authority upon a showing by the applicant, and a
finding by the Commission, after notice and hearing, that the
applicant possesses sufficient technical, financial, and
managerial resources and abilities to provide network service
and database services that it seeks authority to provide in

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its application for service authority, in a safe, continuous,
and uninterrupted manner.
(d) No incumbent local exchange carrier that provides, as
of the effective date of this amendatory Act of the 96th
General Assembly, any 9-1-1 network and 9-1-1 database service
used or intended to be used by any Emergency Telephone System
Board or 9-1-1 system, shall be required to obtain a
Certificate of 9-1-1 System Provider Authority under this
Section. No entity that possesses, as of the effective date of
this amendatory Act of the 96th General Assembly, a
Certificate of Service Authority and provides 9-1-1 network
and 9-1-1 database services to any incumbent local exchange
carrier as of the effective date of this amendatory Act of the
96th General Assembly shall be required to obtain a
Certificate of 9-1-1 System Provider Authority under this
Section.
(e) Any and all enforcement authority granted to the
Commission under this Section shall apply exclusively to 9-1-1
system providers granted a Certificate of Service Authority
under this Section and shall not apply to incumbent local
exchange carriers that are providing 9-1-1 service as of the
effective date of this amendatory Act of the 96th General
Assembly.
(Source: P.A. 100-20, eff. 7-1-17.)
(220 ILCS 5/16-101A)

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Sec. 16-101A. Legislative findings.
(a) The consumers citizens and businesses of the State of
Illinois have been well-served by a comprehensive electrical
utility system which has provided safe, reliable, and
affordable service. The electrical utility system in the State
of Illinois has historically been subject to State and federal
regulation, aimed at assuring the consumers citizens and
businesses of the State of safe, reliable, and affordable
service, while at the same time assuring the utility system of
a return on its investment.
(b) Competitive forces are affecting the market for
electricity as a result of recent federal regulatory and
statutory changes and the activities of other states.
Competition in the electric services market may create
opportunities for new products and services for customers and
lower costs for users of electricity. Long-standing regulatory
relationships need to be altered to accommodate the
competition that could fundamentally alter the structure of
the electric services market.
(c) With the advent of increasing competition in this
industry, the State has a continued interest in assuring that
the safety, reliability, and affordability of electrical power
is not sacrificed to competitive pressures, and to that end,
intends to implement safeguards to assure that the industry
continues to operate the electrical system in a manner that
will serve the public's interest. Under the existing

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regulatory framework, the industry has been encouraged to
undertake certain investments in its physical plant and
personnel to enhance its efficient operation, the cost of
which it has been permitted to pass on to consumers. The State
has an interest in providing the existing utilities a
reasonable opportunity to obtain a return on certain
investments on which they depended in undertaking those
commitments in the first instance while, at the same time, not
permitting new entrants into the industry to take unreasonable
advantage of the investments made by the formerly regulated
industry.
(d) A competitive wholesale and retail market must benefit
all Illinois consumers citizens. The Illinois Commerce
Commission should act to promote the development of an
effectively competitive electricity market that operates
efficiently and is equitable to all consumers. Consumer
protections must be in place to ensure that all customers
continue to receive safe, reliable, affordable, and
environmentally safe electric service.
(e) All consumers must benefit in an equitable and timely
fashion from the lower costs for electricity that result from
retail and wholesale competition and receive sufficient
information to make informed choices among suppliers and
services. The use of renewable resources and energy efficiency
resources should be encouraged in competitive markets.
(f) The efficiency of electric markets depends both upon

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the competitiveness of supply and upon the
price-responsiveness of the demand for service. Therefore, to
ensure the lowest total cost of service and to enhance the
reliability of service, all classes of the electricity
customers of electric utilities should have access to and be
able to voluntarily use real-time pricing and other
price-response and demand-response mechanisms.
(g) Including cost-effective renewable resources and
demand-response resources in a diverse electricity supply
portfolio will reduce long-term direct and indirect costs to
consumers by decreasing environmental impacts and by avoiding
or delaying the need for new generation, transmission, and
distribution infrastructure. It serves the public interest to
allow electric utilities to recover costs for reasonably and
prudently incurred expenses for electricity generated by
renewable resources and demand-response resources.
(h) Including electricity generated by clean coal
facilities, as defined under Section 1-10 of the Illinois
Power Agency Act, in a diverse electricity procurement
portfolio will reduce the need to purchase, directly or
indirectly, carbon dioxide emission credits and will decrease
environmental impacts. It serves the public interest to allow
electric utilities to recover costs for reasonably and
prudently incurred expenses for sourcing electricity generated
by clean coal facilities.
(Source: P.A. 94-977, eff. 6-30-06; 95-481, eff. 8-28-07;

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95-1027, eff. 6-1-09.)
(220 ILCS 5/16-111.2)
Sec. 16-111.2. Provisions related to proposed utility
transactions.
(a) The General Assembly finds:
(1) A transaction as described in paragraph (3) of
this subsection (a) will contribute to improved
reliability of the electric supply system in Illinois
which is one of the key purposes of the Illinois Electric
Service Customer Choice and Rate Relief Law of 1997.
(2) A transaction as described in paragraph (3) of
this subsection (a) is likely to promote additional
investment in the existing generating assets and in the
development of additional generation capacity in Illinois,
and such change in ownership is in the public interest,
consistent with the intent of the Illinois Electric
Service Customer Choice and Rate Relief Law of 1997 and
beneficial for the consumers citizens of this State.
(3) As of the date on which this amendatory Act of 1999
becomes law, an electric utility providing service to more
than 1,000,000 customers in this State has proposed to
sell or transfer to a single buyer 5 or more generating
plants with a total net dependable capacity of 5000
megawatts or more pursuant to subsection (g) of Section
16-111.

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(4) Such electric utility anticipates receiving a sale
price or consideration as a result of such transaction
exceeding 200% of the book value of these plants.
(5) Such electric utility has presented to the
Governor and the leaders of the General Assembly a written
commitment in which such electric utility agrees to expend
$2,000,000,000 outside the corporate limits of any
municipality with 1,000,000 or more inhabitants within
such electric utility's service area, over a 6-year period
beginning with this calendar year on projects, programs
and improvements within its service area relating to
transmission and distribution including, without
limitation, infrastructure expansion, repair and
replacement, capital investments, operations and
maintenance, and vegetation management.
(6) Such electric utility has committed that, if the
sale or transfer contemplated by paragraph (3) of this
subsection is consummated on or before December 31, 1999,
the electric utility shall make contributions totaling
$250,000,000 to entities within this State for, among
other purposes, environmental and clean coal initiatives
pursuant to Section 16-111.1, which commitment includes a
contribution of $25,000,000 to the Board of Trustees of
Southern Illinois University for the purpose of funding
programs or projects related to clean coal.
(b) That, in light of the findings in paragraphs (1) and

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(2) of subsection (a) and, in this instance, the circumstances
described in paragraphs (3) through (6) of subsection (a) and
otherwise, the General Assembly hereby finds that allowing the
generating facilities being acquired to be eligible facilities
under the provisions of the National Energy Policy Act of 1992
that apply to exempt wholesale generators (A) will benefit
consumers; (B) is in the public interest; and (C) does not
violate the law of this State.
(c) Nothing in this Section shall have any effect on the
authority of the Commission under subsection (g) of Section
16-111 of this Act.
(Source: P.A. 91-50, eff. 6-30-99.)
(220 ILCS 5/16-128)
Sec. 16-128. Provisions related to utility employees.
(a) The General Assembly finds:
(1) The reliability and safety of the electric system
has depended and depends on a workforce of skilled and
dedicated employees, equipped with technical training and
experience.
(2) The integrity and reliability of the system also
requires the industry's commitment to invest in regular
inspection and maintenance, to assure that it can
withstand the demands of heavy service requirements and
emergency situations.
(3) It is in the State's interest to protect the

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interests of utility employees who have and continue to
dedicate themselves to assuring reliable service to the
consumers citizens of this State, and who might otherwise
be economically displaced in a restructured industry.
The General Assembly further finds that it is necessary to
assure that employees of electric utilities and employees of
contractors or subcontractors performing work on behalf of an
electric utility operating in the deregulated industry have
the requisite skills, knowledge, training, experience, and
competence to provide reliable and safe electrical service
under this Act.
The General Assembly also finds that it is necessary to
assure that employees of alternative retail electric suppliers
and employees of contractors or subcontractors performing work
on behalf of an alternative retail electric supplier operating
in the deregulated industry have the requisite skills,
knowledge, training, experience, and competence to provide
reliable and safe electrical service under this Act.
To ensure that these findings and prerequisites for
reliable and safe electrical service continue to prevail, each
alternative retail electric supplier, electric utility, and
contractors and subcontractors performing work on behalf of an
electric utility or alternative retail electric supplier must
demonstrate the competence of their respective employees to
work on the distribution system.
The knowledge, skill, training, experience, and competence

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levels to be demonstrated shall be consistent with those
required of or by the electric utilities in this State as of
January 1, 2007, with respect to their employees and employees
of contractors or subcontractors performing work on their
behalf. Nothing in this Section shall prohibit an electric
utility from establishing knowledge, skill, training,
experience, and competence levels greater than those required
as of January 1, 2007.
An adequate demonstration of requisite knowledge, skill,
training, experience, and competence shall include, at a
minimum, completion or current participation and ultimate
completion by the employee of an accredited or otherwise
recognized apprenticeship program for the particular craft,
trade or skill, or specified and several years of employment
performing a particular work function that is utilized by an
electric utility.
Notwithstanding any law, tariff, Commission rule, order,
or decision to the contrary, the Commission shall have an
affirmative statutory obligation to ensure that an electric
utility is employing employees, contractors, and
subcontractors with employees who meet the requirements of
subsection (a) of this Section when installing, constructing,
operating, and maintaining generation, transmission, or
distribution facilities and equipment within this State
pursuant to any provision in this Act or any Commission order,
rule, or decision.

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For purposes of this Section, "distribution facilities and
equipment" means any and all of the facilities and equipment,
including, but not limited to, substations, distribution
feeder circuits, switches, meters, protective equipment,
primary circuits, distribution transformers, line extensions
and service extensions both above or below ground, conduit,
risers, elbows, transformer pads, junction boxes, manholes,
pedestals, conductors, and all associated fittings that
connect the transmission or distribution system to either the
weatherhead on the retail customer's building or other
structure for above ground service or to the terminals on the
meter base of the retail customer's building or other
structure for below ground service.
To implement this requirement for alternative retail
electric suppliers, the Commission, in determining that an
applicant meets the standards for certification as an
alternative retail electric supplier, shall require the
applicant to demonstrate (i) that the applicant is licensed to
do business, and bonded, in the State of Illinois; and (ii)
that the employees of the applicant that will be installing,
operating, and maintaining generation, transmission, or
distribution facilities within this State, or any entity with
which the applicant has contracted to perform those functions
within this State, have the requisite knowledge, skills,
training, experience, and competence to perform those
functions in a safe and responsible manner in order to provide

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safe and reliable service, in accordance with the criteria
stated above.
(b) The General Assembly finds, based on experience in
other industries that have undergone similar transitions, that
the introduction of competition into the State's electric
utility industry may result in workforce reductions by
electric utilities which may adversely affect persons who have
been employed by this State's electric utilities in functions
important to the public convenience and welfare. The General
Assembly further finds that the impacts on employees and their
communities of any necessary reductions in the utility
workforce directly caused by this restructuring of the
electric industry shall be mitigated to the extent practicable
through such means as offers of voluntary severance,
retraining, early retirement, outplacement and related
benefits. Therefore, before any such reduction in the
workforce during the transition period, an electric utility
shall present to its employees or their representatives a
workforce reduction plan outlining the means by which the
electric utility intends to mitigate the impact of such
workforce reduction on its employees.
(c) In the event of a sale, purchase, or any other transfer
of ownership during the mandatory transition period of one or
more Illinois divisions or business units, and/or generating
stations or generating units, of an electric utility, the
electric utility's contract and/or agreements with the

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acquiring entity or persons shall require that the entity or
persons hire a sufficient number of non-supervisory employees
to operate and maintain the station, division or unit by
initially making offers of employment to the non-supervisory
workforce of the electric utility's division, business unit,
generating station and/or generating unit at no less than the
wage rates, and substantially equivalent fringe benefits and
terms and conditions of employment that are in effect at the
time of transfer of ownership of said division, business unit,
generating station, and/or generating units; and said wage
rates and substantially equivalent fringe benefits and terms
and conditions of employment shall continue for at least 30
months from the time of said transfer of ownership unless the
parties mutually agree to different terms and conditions of
employment within that 30-month period. The utility shall
offer a transition plan to those employees who are not offered
jobs by the acquiring entity because that entity has a need for
fewer workers. If there is litigation concerning the sale, or
other transfer of ownership of the electric utility's
divisions, business units, generating station, or generating
units, the 30-month period will begin on the date the
acquiring entity or persons take control or management of the
divisions, business units, generating station or generating
units of the electric utility.
(d) If a utility transfers ownership during the mandatory
transition period of one or more Illinois divisions, business

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units, generating stations or generating units of an electric
utility to a majority-owned subsidiary, that subsidiary shall
continue to employ the utility's employees who were employed
by the utility at such division, business unit or generating
station at the time of the transfer under the same terms and
conditions of employment as those employees enjoyed at the
time of the transfer. If ownership of the subsidiary is
subsequently sold or transferred to a third party during the
transition period, the transition provisions outlined in
subsection (c) shall apply.
(e) The plant transfer provisions set forth above shall
not apply to any generating station which was the subject of a
sales agreement entered into before January 1, 1997.
(Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11.)