HB 2541

Abstract

Amends the Public Utilities Act. Provides that in a ratemaking proceeding, the Illinois Commerce Commission shall not approve for ratemaking purposes either a cost of equity exceeding 8% unless clear and convincing record evidence demonstrates that a higher return on equity is strictly necessary to prevent an imminent and significant threat of negative credit action that would be expected to increase the cost of service for the utility's ratepayers; or a capital structure comprised of more than 50% common equity unless clear and convincing record evidence demonstrates that a higher equity ratio is strictly necessary to prevent an imminent and significant threat of negative credit action that would be expected to increase the cost of service for the utility's ratepayers. Provides that the Commission shall not treat the utility's interest in offsetting the revenue impact of enforcing either of these limitations as justification for approving or adjusting any other proposed revenues. Makes corresponding changes to the Multi-Year Rate Plan.