HB1955 Summary

• Amends the Public Utilities Act to create an alternative procedure for large public utilities acquiring water or sewer utilities to establish the ratemaking rate base using appraisals instead of standard valuation methods.

• Defines "large public utility" as an investor-owned utility regulated by the Illinois Commerce Commission serving more than 30,000 customer connections, and "water or sewer utility" as entities serving 30,000 or fewer connections.

• Requires three state-certified appraisers (one appointed by each party and one agreed upon jointly) to determine fair market value of the acquired utility using Uniform Standards of Professional Appraisal Practice, with an engaged engineer assessing reproduction costs.

• Establishes that the lesser of purchase price or appraised value, plus transaction and transition costs, becomes the ratemaking rate base that can be incorporated into the acquiring utility's designated district rate tariff.

• Provides that Commission petitions for these voluntary acquisitions are deemed approved if the Commission does not issue a final order within 6 months, and limits application to water and sewer utilities only.