Illinois 2025-2026 Regular Session

Illinois House Bill HB4514

Introduced
1/21/26  
Refer
1/26/26  
Refer
3/18/26  
Report Pass
3/24/26  
Engrossed
4/17/26  
Refer
4/21/26  
Refer
4/28/26  
Report Pass
5/7/26  

Caption

GENERAL RATE INCREASE HEARINGS

Summary

HB4514 amends the Illinois Public Utilities Act to expand customer protections and notice requirements for water and sewer utilities, and to add a new section governing general rate increase hearings for public utilities. The bill requires the Illinois Commerce Commission to publish consumer-facing information about water and sewer utility rights and remedies, including situations involving meter replacement, large bill increases, service termination, complaints, payment difficulties, surcharge filings, prior-period billing, and credits. Utilities must also include website and phone contact information on bills and termination notices so customers can access that information. The bill also strengthens service-disconnection and billing protections for residential water and sewer customers. It requires utilities to offer deferred payment agreements under specified conditions, limits the initial payment and repayment period, and bars discontinuance of service while a qualifying dispute or complaint is pending or while a customer is complying with a deferred payment plan. It further requires itemized refunds, disclosure of prior-period charges on bills, interest on overpayments, periodic meter testing, free customer-requested meter tests under certain conditions, and rules for low-usage sewer rates, separate water/sewer rates for separate meters, and controls on subcontractor conduct and unaccounted-for water charges. In addition, HB4514 creates Section 9-226.5, which applies to general rate increase proceedings for electric, gas, water, and sewer utilities. When a utility proposes a general rate increase, customers must be notified of their right to request a public forum, and the Commission must schedule the forum unless it lacks resources or cannot do so timely. The bill directs that forum comments be made available to hearing officials, but it also states that failure to hold or properly notice a forum does not invalidate a Commission order. The new forum requirement does not apply to utilities serving fewer than 15,000 customers as of January 1, 2026, and the act takes effect January 1, 2027. The overall sentiment reflected by the bill text is consumer-protection oriented, with the legislation aiming to improve transparency, billing fairness, and access to complaint and hearing processes for utility customers. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of debate or opposition in the supplied materials. The structure of the bill suggests a policy preference for stronger oversight of water and sewer utilities and more public participation in rate cases, while still preserving Commission discretion and limiting the forum requirement for smaller utilities. The main points of potential contention are likely to be the added compliance burdens on utilities, especially the new notice, billing, meter-testing, and forum requirements, and the expanded procedural rights for customers in rate cases and service-disconnection disputes. Utilities may view the bill as increasing administrative costs and limiting flexibility in collections and rate recovery, while consumer advocates would likely support the protections against shutoffs, surprise bills, and inadequate notice. The exemption for smaller utilities and the clause preserving Commission orders despite forum defects appear designed to reduce operational and legal friction.

Impact

HB4514 amends the Public Utilities Act by revising Section 8-306 and adding new Section 9-226.5, thereby imposing new statutory duties on water and sewer utilities and on the Illinois Commerce Commission. It expands customer notice, billing disclosure, complaint-handling, meter-testing, deferred-payment, and service-termination rules for water and sewer service, and it creates a statewide public-forum process for general rate increase proceedings involving electric, gas, water, and sewer utilities, with a small-utility exemption and a 2027 effective date.

Sentiment

The bill appears broadly consumer-protective and pro-customer in tone, emphasizing transparency, due process, and limits on service shutoffs and billing practices. No committee testimony or vote history was provided, so there is no direct record of support or opposition; however, the text suggests likely support from consumer advocates and local governments, with possible concern from utilities over added regulatory and administrative obligations.

Contention

Likely points of contention include whether the new notice and forum requirements create unnecessary burdens for utilities and the Commission, whether the deferred-payment and shutoff restrictions limit utilities’ ability to collect delinquent accounts, and whether the expanded billing and meter-testing rules increase costs that may be passed on to customers. The public-forum requirement in rate cases may also be debated, though the bill narrows its scope by exempting utilities serving fewer than 15,000 customers and by stating that procedural defects do not invalidate Commission orders.

Companion Bills

No companion bills found.

Previously Filed As

IL HB5488

SCH CD-504 IMPARTIAL HEARINGS

IL HB2564

PEN CD-TRS-SALARY INCREASES

IL HB5364

DHFS-INSPECTOR GENERAL

IL HB4215

NEWBORN HEARING SCREENING

IL SB2838

INS-HEARING CARE PLAN

IL HB5486

STUDY-GENEALOGIC AFFAIR OFFICE

IL HB1141

GENERAL ANESTHESIA COVERAGE

IL HB4456

LOW-INCOME UTILITY RATES

IL SB3612

LOW-INCOME BROADBAND RATES

IL HB5524

UTILITY CHARGE TRANSPARENCY

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