IL HB5073

Limits the rate base for acquired water or sewer utilities to 20% of the lesser of the purchase price or fair market value, with the remaining 80% of costs borne by the acquiring utility's shareholders rather than ratepayers.

Requires a binding referendum for voters within the service area before any large public utility can acquire a publicly-owned water or sewer utility, with majority approval needed for the acquisition to proceed.

Removes provisions allowing water or sewer utilities to file surcharges for infrastructure investment cost recovery independent of general rate cases.

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

Mandates that only 20% of transaction and closing costs may be included in the rate base, with total appraiser fees capped at the greater of $15,000 or 5% of appraised value.