UTILITIES-RECOVERABLE EXPENSES

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3822

Introduced 2/6/2026, by Sen. Jil Tracy

SYNOPSIS AS INTRODUCED:

220 ILCS 5/9-224

from Ch. 111 2/3, par. 9-224
220 ILCS 5/9-225

from Ch. 111 2/3, par. 9-225
220 ILCS 5/9-227

from Ch. 111 2/3, par. 9-227
220 ILCS 5/9-229

Amends the Public Utilities Act. Provides that the Illinois Commerce
Commission shall not consider as an expense of any public utility, for the
purpose of determining any rate or charge, any amount expended for
contributions or gifts to political candidates, political parties,
political or legislative committees, or any committee or organization
working to influence referendum petitions or elections or contributions to
a trade association, chamber of commerce, or public charity, including,
but not limited to, a charity managed by the public utility or an
affiliated interest. Makes changes in provisions definitions; donations
made by a public utility for energy assistance; consideration of attorney
and expert compensation as an expense; and the Consumer Intervenor
Compensation Fund.
LRB104 17148 AAS 30567 b

A BILL FOR

SB3822
LRB104 17148 AAS 30567 b
1

AN ACT concerning regulation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Public Utilities Act is amended by changing
5
Sections 9-224, 9-225, 9-227, and 9-229 as follows:

6

(220 ILCS 5/9-224)

(from Ch. 111 2/3, par. 9-224)
7

Sec. 9-224.
The Commission shall not consider as an
8
expense of any public utility
company
, for the purpose of
9
determining any rate or charge, any amount expended for
10
political activity or lobbying as defined in the
"
Lobbyist
11
Registration Act
"
.
The Commission shall also not consider as
12
an expense of any public utility, for the purpose of
13
determining any rate or charge, any amount expended for
14
contributions or gifts to political candidates, political
15
parties, political or legislative committees, or any committee
16
or organization working to influence referendum petitions or
17
elections or contributions to a trade association, chamber of
18
commerce, or public charity, including, but not limited to, a
19
charity managed by the public utility or an affiliated
20
interest.

21
(Source: P.A. 84-617.)

22

(220 ILCS 5/9-225)

(from Ch. 111 2/3, par. 9-225)

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LRB104 17148 AAS 30567 b
1

Sec. 9-225.
(1) For the purposes of this Section:
2

(a) "Advertising" means the commercial use, by an
3

electric, gas, water, or sewer utility, of any media,
4

including newspapers, printed matter, radio and
5

television, in order to transmit a message to a
6

substantial number of members of the public or to such
7

utility's consumers;
8

(b) "Political advertising" means any advertising for
9

the purpose of influencing public opinion with respect to
10

legislative, administrative or electoral matters, or with
11

respect to any controversial issue of public importance;
12

(c) "Promotional advertising" means any advertising
13

for the purpose of encouraging any person to select or use
14

the service or additional service of a utility or the
15

selection or installation of any appliance or equipment
16

designed to use such utility's service; and
17

(d) "Goodwill or institutional advertising" means any
18

advertising either on a local or national basis designed
19

primarily to bring the utility's name before the general
20

public in such a way as to improve the image of the utility
21

or to promote controversial issues for the utility or the
22

industry.
23

(2) In any general rate increase requested by any gas,
24
electric, water, or sewer utility company under the provisions
25
of this Act, the Commission shall not consider, for the
26
purpose of determining any rate, charge
,
or classification of

SB3822
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LRB104 17148 AAS 30567 b
1
costs, any direct or indirect expenditures for promotional,
2
political,
or goodwill or
institutional
advertising

or
3
goodwill advertising
, unless the Commission finds the
4
advertising to be in the best interest of the Consumer or
5
authorized as provided pursuant to subsection 3 of this
6
Section.
7

(3) The following categories of advertising shall be
8
considered allowable operating expenses for gas, electric,
9
water, or sewer utilities:
10

(a) Advertising which informs consumers how they can
11

conserve energy or water, reduce peak demand for electric
12

or gas energy, or reduce demand for water;
13

(b) Advertising required by law or regulations,
14

including advertising required under Part I of Title II of
15

the National Energy Conservation Policy Act;
16

(c) Advertising regarding service interruptions,
17

safety measures or emergency conditions;
18

(d) Advertising concerning employment opportunities
19

with such utility;
20

(e) Advertising which promotes the use of energy
21

efficient appliances, equipment or services;
22

(f) Explanations of existing or proposed rate
23

schedules or notifications of hearings thereon;
24

(g) Advertising that identifies the location and
25

operating hours of company business offices;
26

(h) Advertising which promotes the shifting of demand

SB3822
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LRB104 17148 AAS 30567 b
1

from peak to off-peak hours or which encourages the
2

off-peak usage of the service; and
3

(i) "Other" categories of advertisements not
4

includable in paragraphs (a) through (h), but which are
5

not political, promotional,
or goodwill or institutional

6

institutional or goodwill
advertisements.
7

(4) Notwithstanding subsections (2) and (3) of this
8
Section, goodwill or institutional advertising shall not be a
9
recoverable expense.

10
(Source: P.A. 95-814, eff. 8-13-08.)

11

(220 ILCS 5/9-227)

(from Ch. 111 2/3, par. 9-227)
12

Sec. 9-227.
It shall be proper for the Commission to
13
consider as an operating expense, for the purpose of
14
determining whether a rate or other charge or classification
15
is sufficient, donations made by a public utility for
energy
16
assistance. Donations to
the public welfare or for charitable
17
scientific, religious
,
or educational purposes
shall be
18
nonrecoverable shareholder expenses.

, provided that such
19
donations are reasonable in amount. In determining the
20
reasonableness of such donations, the Commission may not
21
establish, by rule, a presumption that any particular portion
22
of an otherwise reasonable amount may not be considered as an
23
operating expense. The Commission shall be prohibited from
24
disallowing by rule, as an operating expense, any portion of a
25
reasonable donation for public welfare or charitable purposes.

SB3822
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LRB104 17148 AAS 30567 b
1
(Source: P.A. 85-122.)

2

(220 ILCS 5/9-229)
3

Sec. 9-229.
Consideration of attorney and expert
4
compensation as an expense and intervenor compensation fund.
5

(a) The Commission shall
deem as a nonrecoverable expense
6
by a public utility

specifically assess the justness and
7
reasonableness of
any amount expended by a public utility to
8
compensate attorneys or technical experts to prepare and
9
litigate a general rate case filing. This issue shall be
10
expressly addressed in the Commission's final order.
11

(b) The State of Illinois shall create a Consumer
12
Intervenor Compensation Fund subject to the following:
13

(1) Provision of compensation for
consumer interest
14

representatives

Consumer Interest Representatives
that
15

intervene in Illinois Commerce Commission proceedings will
16

increase public engagement, encourage additional
17

transparency, expand the information available to the
18

Commission, and improve decision-making.
19

(2) As used in this Section, "
consumer

Consumer

20

interest representative" means:
21

(A) a residential utility customer or group of
22

residential utility customers represented by a
23

not-for-profit group or organization registered with
24

the Illinois Attorney General under the Solicitation
25

for Charity Act;

SB3822
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LRB104 17148 AAS 30567 b
1

(B) representatives of not-for-profit groups or
2

organizations whose membership is limited to
3

residential utility customers; or
4

(C) representatives of not-for-profit groups or
5

organizations whose membership includes Illinois
6

residents and that address the community, economic,
7

environmental, or social welfare of Illinois
8

residents, except government agencies or intervenors
9

specifically authorized by Illinois law to participate
10

in Commission proceedings on behalf of Illinois
11

consumers.
12

(3) A consumer interest representative is eligible to
13

receive compensation from the
Consumer Intervenor
14

Compensation Fund

consumer intervenor compensation fund
if
15

its participation included lay or expert testimony or
16

legal briefing and argument concerning the expenses,
17

investments, rate design, rate impact, or other matters
18

affecting the pricing, rates, costs
,
or other charges
19

associated with utility service, the Commission adopts a
20

material recommendation related to a significant issue in
21

the docket, and participation caused a significant
22

financial hardship to the participant; however, no
23

consumer interest representative shall be eligible to
24

receive an award pursuant to this Section if the consumer
25

interest representative receives any compensation,
26

funding, or donations, directly or indirectly, from

SB3822
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LRB104 17148 AAS 30567 b
1

parties that have a financial interest in the outcome of
2

the proceeding.
3

(4) Within 30 days after September 15, 2021 (the
4

effective date of Public Act 102-662), each utility that
5

files a request for an increase in rates under Article IX
6

or Article XVI shall deposit an amount equal to one half of
7

the rate case attorney and expert expense
reported to

8

allowed by
the Commission, but not to exceed $500,000,
9

into the fund within 35 days of the date of the
10

Commission's final
order

Order
in the rate case or 20 days
11

after the denial of rehearing under Section 10-113 of this
12

Act, whichever is later. The Consumer Intervenor
13

Compensation Fund shall be used to provide payment to
14

consumer interest representatives as described in this
15

Section
and the amount deposited into the Fund shall not
16

be a recoverable expense by the utility
.
17

(5) An electric public utility with 3,000,000 or more
18

retail customers shall contribute $450,000 to the Consumer
19

Intervenor Compensation Fund within 60 days after
20

September 15, 2021 (the effective date of Public Act
21

102-662). A combined electric and gas public utility
22

serving fewer than 3,000,000 but more than 500,000 retail
23

customers shall contribute $225,000 to the Consumer
24

Intervenor Compensation Fund within 60 days after
25

September 15, 2021 (the effective date of Public Act
26

102-662). A gas public utility with 1,500,000 or more

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LRB104 17148 AAS 30567 b
1

retail customers that is not a combined electric and gas
2

public utility shall contribute $225,000 to the Consumer
3

Intervenor Compensation Fund within 60 days after
4

September 15, 2021 (the effective date of Public Act
5

102-662). A gas public utility with fewer than 1,500,000
6

retail customers but more than 300,000 retail customers
7

that is not a combined electric and gas public utility
8

shall contribute $80,000 to the Consumer Intervenor
9

Compensation Fund within 60 days after September 15, 2021
10

(the effective date of Public Act 102-662). A gas public
11

utility with fewer than 300,000 retail customers that is
12

not a combined electric and gas public utility shall
13

contribute $20,000 to the Consumer Intervenor Compensation
14

Fund within 60 days after September 15, 2021 (the
15

effective date of Public Act 102-662). A combined electric
16

and gas public utility serving fewer than 500,000 retail
17

customers shall contribute $20,000 to the Consumer
18

Intervenor Compensation Fund within 60 days after
19

September 15, 2021 (the effective date of Public Act
20

102-662). A water or sewer public utility serving more
21

than 100,000 retail customers shall contribute $80,000,
22

and a water or sewer public utility serving fewer than
23

100,000 but more than 10,000 retail customers shall
24

contribute $20,000.
25

(6)(A) Prior to the entry of a
final order

Final Order

26

in a docketed case, the Commission Administrator shall

SB3822
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LRB104 17148 AAS 30567 b
1

provide a payment to a consumer interest representative
2

that demonstrates through a verified application for
3

funding that the consumer interest representative's
4

participation or intervention without an award of fees or
5

costs imposes a significant financial hardship based on a
6

schedule to be developed by the Commission. The
7

Administrator may require verification of costs incurred,
8

including statements of hours spent, as a condition to
9

paying the consumer interest representative prior to the
10

entry of a
final order

Final Order
in a docketed case.
11

(B) If
the Commission adopts a material recommendation
12

related to a significant issue in the docket and

13

participation caused a financial hardship to the
14

participant, then the consumer interest representative
15

shall be allowed payment for some or all of the consumer
16

interest representative's reasonable attorney's or
17

advocate's fees, reasonable expert witness fees, and other
18

reasonable costs of preparation for and participation in a
19

hearing or proceeding. Expenses related to travel or meals
20

shall not be compensable.
21

(C) The consumer interest representative shall submit
22

an itemized request for compensation to the Consumer
23

Intervenor Compensation Fund, including the advocate's or
24

attorney's reasonable fee rate, the number of hours
25

expended, reasonable expert and expert witness fees, and
26

other reasonable costs for the preparation for and

SB3822
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LRB104 17148 AAS 30567 b
1

participation in the hearing and briefing within 30 days
2

of the Commission's final order after denial or decision
3

on rehearing, if any.
4

(7) Administration of the Fund.
5

(A) The Consumer Intervenor Compensation Fund is
6

created as a special fund in the State treasury. All
7

disbursements from the Consumer Intervenor Compensation
8

Fund shall be made only upon warrants of the Comptroller
9

drawn upon the Treasurer as custodian of the Fund upon
10

vouchers signed by the Executive Director of the
11

Commission or by the person or persons designated by the
12

Director for that purpose. The Comptroller is authorized
13

to draw the warrant upon vouchers so signed. The Treasurer
14

shall accept all warrants so signed and shall be released
15

from liability for all payments made on those warrants.
16

The Consumer Intervenor Compensation Fund shall be
17

administered by an Administrator that is a person or
18

entity that is independent of the Commission. The
19

Administrator

administrator
will be responsible for the
20

prudent management of the Consumer Intervenor Compensation
21

Fund and for recommendations for the award of consumer
22

intervenor compensation from the Consumer Intervenor
23

Compensation Fund. The Commission shall issue a request
24

for qualifications for a third-party program
Administrator

25

administrator
to administer the Consumer Intervenor
26

Compensation Fund. The third-party
Administrator

SB3822
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LRB104 17148 AAS 30567 b
1

administrator
shall be chosen through a competitive bid
2

process based on selection criteria and requirements
3

developed by the Commission. The Illinois Procurement Code
4

does not apply to the hiring or payment of the
5

Administrator. All Administrator costs may be paid for
6

using monies from the Consumer Intervenor Compensation
7

Fund, but the Program Administrator shall strive to
8

minimize costs in the implementation of the program.
9

(B) The computation of compensation awarded from the
10

fund shall take into consideration the market rates paid
11

to persons of comparable training and experience who offer
12

similar services, but may not exceed the comparable market
13

rate for services paid by the public utility as part of its
14

nonrecoverable
rate case expense
reported to the
15

Commission
.
16

(C)(1) Recommendations on the award of compensation by
17

the
Administrator

administrator
shall include
18

consideration of whether the Commission adopted a material
19

recommendation related to a significant issue in the
20

docket and
whether participation caused a financial
21

hardship to the participant and the payment of
22

compensation is fair, just
,
and reasonable.
23

(2) Recommendations on the award of compensation by
24

the
Administrator

administrator
shall be submitted to the
25

Commission for approval. Unless the Commission initiates
26

an investigation within 45 days after the notice to the

SB3822
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LRB104 17148 AAS 30567 b
1

Commission, the award of compensation shall be allowed 45
2

days after notice to the Commission. Such notice shall be
3

given by filing with the Commission on the Commission's
4

e-docket system, and keeping open for public inspection
5

the award for compensation proposed by the Administrator.
6

The Commission shall have power, and it is hereby given
7

authority, either upon complaint or upon its own
8

initiative without complaint, at once, and if it so
9

orders, without answer or other formal pleadings, but upon
10

reasonable notice, to enter upon a hearing concerning the
11

propriety of the award.
12

(c) The Commission may adopt rules to implement this
13
Section.
14
(Source: P.A. 102-662, eff. 9-15-21; 103-605, eff. 7-1-24.)

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