The bill mandates a referendum process for public input on acquisitions. Specifically, after public meetings and appropriate notice, a referendum will be placed on the ballot for all voters in the service area of the utility proposed for acquisition. If the majority votes in favor, the acquisition may proceed; otherwise, it will not be approved by the Illinois Commerce Commission. This introduces a new layer of public accountability in the regulatory process surrounding utility acquisitions, giving residents a direct say in which companies provide essential water and sewer services.
Summary
House Bill 5157, introduced by Rep. Nabeela Syed, seeks to amend the Public Utilities Act in Illinois by revising how certain water and sewer utilities can be acquired by larger public utilities. One significant change proposed in the bill is the definition of the rate base for such utilities, which would now be 20% of the lesser of the purchase price or fair market value. This is intended to better reflect prudent investments made in the provision of utility services, while also ensuring that the financial burden of any discrepancy between the rate base and actual purchase costs is shifted to the shareholders of the acquiring utility rather than customers.
Contention
There are concerns regarding potential pushback from utility companies who may view this additional layer of voter approval as a hindrance to efficient acquisitions. While proponents argue that this empowers local communities, skeptics warn that it could discourage investments from larger utilities who might deem the regulatory environment too challenging. Furthermore, the removal of an existing provision allowing utilities to file surcharges to recover costs associated with new infrastructure investments raises concerns among some stakeholders regarding future funding for necessary utility improvements.
A bill for an act relating to certain public utilities, including the development of ratemaking principles permitted for recovery costs of certain investments in infrastructure by water and wastewater utilities and cost considerations for acquisitions of water, sanitary sewer, or storm water utilities. (Formerly SSB 3068.) Effective date: 07/01/2026
Operating referendum ballot notice modified, and authority for the school board to renew a referendum without seeking voter approval unless notice requirements are met eliminated.