HB4508 Summary

• Amends the Public Utilities Act to establish procedures for large public utilities (serving over 30,000 customer connections) to acquire smaller water or sewer utilities through a valuation process using three independent appraisals.

• Requires three state-certified appraisers approved by the Illinois Commerce Commission's Executive Director to determine fair market value of acquired utilities, with the average of the three appraisals serving as the basis for establishing the rate base.

• Prohibits rate increases exceeding 1.5% of median household income annually for acquired utility customers during transition period, and allows large public utilities to propose lesser rates in the two rate cases following acquisition.

• Requires contractors performing work on acquired utilities to be responsible bidders and sign project labor agreements for new facilities; mandates offering positions to qualified employees of acquired utilities.

• Extends the sunset date of this section from June 1, 2018 to June 1, 2028, and establishes an 11-month deemed approval timeline for acquisition petitions filed with the Commission.