Illinois Public Utilities Act Glossary: Key Terms & Definitions for Developers and Consultants

Illinois Public Utilities Act Key Terms & Definitions

Article I: The first section of the Illinois Public Utilities Act, which provides the official title of the Act and defines key terms used throughout the legislation, such as "public utility," "service," and "rate." (220 ILCS 5/1-101 et seq.)

Article III: The section of the Illinois Public Utilities Act that outlines the general duties and obligations of public utilities, including requirements to provide safe, adequate, and reliable service; maintain accurate records; and file annual reports with the Illinois Commerce Commission. (220 ILCS 5/8-101 et seq.)

Article IV: The section of the Illinois Public Utilities Act that establishes the framework for setting and adjusting rates charged by public utilities, including the requirement that rates be just, reasonable, and non-discriminatory. It also prescribes the process for filing and approving tariffs, which are the official documents that detail a utility's rates, charges, and terms of service. (220 ILCS 5/9-101 et seq.)

Article V: The section of the Illinois Public Utilities Act that requires public utilities to obtain a certificate of public convenience and necessity from the Illinois Commerce Commission before constructing, operating, or extending any facilities or providing any new services. (220 ILCS 5/8-406)

Certificate of Public Convenience and Necessity: A permit issued by the Illinois Commerce Commission that authorizes a public utility to construct, operate, or extend any facilities or provide any new services. The Commission will grant a certificate only if it finds that the proposed action is necessary to serve the public convenience and will not result in unnecessary duplication of facilities or services. (220 ILCS 5/8-406)

Climate and Equitable Jobs Act (CEJA): A 2021 Illinois law that builds upon the Future Energy Jobs Act and sets ambitious targets for renewable energy adoption and carbon emission reductions in the state. As state agencies develop rules and regulations to implement the CEJA, there may be further amendments or interpretations of the Illinois Public Utilities Act that impact developers and environmental consultants.

Discriminatory Practices: Offering preferential rates or services to certain customers or classes of customers, which is prohibited under the Illinois Public Utilities Act. (220 ILCS 5/9-241)

Future Energy Jobs Act (FEJA): A 2016 Illinois law that introduced new provisions to the Illinois Public Utilities Act to promote renewable energy, energy efficiency, and job creation in the state. The FEJA has had a substantial impact on the regulated community, particularly developers and environmental consultants involved in renewable energy projects.

Illinois Commerce Commission: The state agency responsible for administering and enforcing the Illinois Public Utilities Act. The Commission is responsible for regulating public utilities, including electric, natural gas, telecommunications, water, and sewer companies.

Just and Reasonable Rates: A requirement under the Illinois Public Utilities Act that the rates charged by public utilities be fair, justifiable, and not excessive or discriminatory. (220 ILCS 5/9-101)

Non-Discriminatory Access: A requirement under the Illinois Public Utilities Act that utilities provide equal access to their transmission and distribution systems to all customers and electricity suppliers. (220 ILCS 5/16-101A)

Public Utility: Any individual, corporation, association, or cooperative that owns, controls, operates, or manages equipment or facilities within Illinois for the production, transmission, sale, delivery, or furnishing of electricity, natural gas, water, or sewage disposal services to the public. (220 ILCS 5/3-105)

Rate: The price or charge for a utility service, as defined in the Illinois Public Utilities Act. (220 ILCS 5/1-101)

Rate Regulation: The process by which the Illinois Commerce Commission sets and adjusts the rates charged by public utilities to ensure they are just, reasonable, and non-discriminatory. (220 ILCS 5/9-101 et seq.)

Renewable Energy Portfolio: The mix of renewable energy sources, such as wind, solar, and biomass, that a utility or state aims to achieve as part of its overall energy supply. The Illinois Public Utilities Act includes provisions to encourage the development of renewable energy sources. (220 ILCS 5/8-103B)

Reporting Requirements: The obligations of public utilities under the Illinois Public Utilities Act to provide regular reports to the Illinois Commerce Commission on various aspects of their operations, such as service quality, financial performance, and compliance with regulatory standards. (220 ILCS 5/5-101 et seq.)

Service: The provision of electricity, natural gas, water, or sewage disposal by a public utility to its customers, as defined in the Illinois Public Utilities Act. (220 ILCS 5/1-101)

Service Quality Standards: The minimum levels of performance and reliability that public utilities are required to maintain in providing service to their customers, as established by the Illinois Commerce Commission under the authority of the Illinois Public Utilities Act. (220 ILCS 5/8-101 et seq.)

Tariff: The official document filed by a public utility with the Illinois Commerce Commission that details its rates, charges, and terms of service. Tariffs must be approved by the Commission before they can take effect. (220 ILCS 5/9-102)

Transmission and Distribution Systems: The infrastructure used by utilities to deliver electricity, natural gas, water, or sewage disposal services to their customers. The Illinois Public Utilities Act requires utilities to provide non-discriminatory access to their transmission and distribution systems. (220 ILCS 5/16-101A)

Utility Infrastructure: The physical assets and equipment used by public utilities to provide service to their customers, such as power plants, transmission lines, pipelines, and treatment facilities. The Illinois Public Utilities Act regulates the construction, operation, and extension of utility infrastructure. (220 ILCS 5/8-406)

Utility Investments: The capital expenditures made by public utilities to maintain, upgrade, or expand their infrastructure and services. The Illinois Commerce Commission is responsible for reviewing and approving utility investments under the Illinois Public Utilities Act. (220 ILCS 5/9-101 et seq.)

Utility Rates: The prices charged by public utilities for their services, which are regulated by the Illinois Commerce Commission under the Illinois Public Utilities Act to ensure they are just, reasonable, and non-discriminatory. (220 ILCS 5/9-101 et seq.)

Utility Regulation: The oversight and control of public utilities by the Illinois Commerce Commission under the authority of the Illinois Public Utilities Act, including the setting of rates, approval of investments, and enforcement of safety and reliability standards. (220 ILCS 5/1-102)

Utility Services: The provision of electricity, natural gas, water, or sewage disposal by a public utility to its customers, as regulated by the Illinois Public Utilities Act. (220 ILCS 5/1-101)

Violations: Any actions by a public utility that contravene the provisions of the Illinois Public Utilities Act or the rules, regulations, or orders issued by the Illinois Commerce Commission pursuant to the Act. Violations may result in enforcement actions and penalties. (220 ILCS 5/5-202)