IL HB2712

Only 20% of the lesser of the purchase price or fair market value of an acquired water or sewer utility may be included in the rate base, with the remaining 80% of costs borne by shareholders of the acquiring large public utility rather than ratepayers

Requires a referendum for voters within the service area of any state or municipal water/sewer utility being acquired, with majority approval needed before the Illinois Commerce Commission can approve the acquisition

Limits transaction and closing costs included in the rate base to 20% of actual costs, capping appraiser fees at the greater of $15,000 or 5% of the appraised value

Applies to acquisitions by investor-owned utilities with more than 15,000 customer connections purchasing smaller water/sewer systems with 6,000 or fewer connections, as well as water districts, township systems, and municipal systems

The provision is scheduled to be repealed on June 1, 2028