HB5185 Summary

• Amends the Public Utilities Act to require that acquisitions of water or sewer utilities by large public utilities be paid for by shareholders rather than existing ratepayers.

• Establishes a valuation process for acquired utilities using three independent appraisals by state-certified real estate appraisers, with the fair market value determined by averaging the three appraisals.

• Requires the Illinois Commerce Commission to establish ratemaking rate base and district classification for acquired utilities, with customers initially charged existing rates until the next rate case (with a cap at 1.5% of median household income).

• Extends the repeal date of Section 9-210.5 (valuation of water and sewer utilities) from June 1, 2018 to June 1, 2021.

• Requires contractors performing work on acquired utilities to be responsible bidders under the Illinois Procurement Code, mandates project labor agreements for new facilities, and requires the acquiring utility to offer employment to qualified employees of the acquired utility.