220 ILCS 5/1-102

Findings and Intent

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(220 ILCS 5/1-102) (from Ch. 111 2/3, par. 1-102)
    Sec. 1-102. Findings and Intent. The General Assembly finds that the health, welfare and prosperity of all Illinois citizens require the provision of adequate, efficient, reliable, environmentally safe and least-cost public utility services at prices which accurately reflect the long-term cost of such services and which are equitable to all citizens. It is therefore declared to be the policy of the State that public utilities shall continue to be regulated effectively and comprehensively. It is further declared that the goals and objectives of such regulation shall be to ensure
        (a) Efficiency: the provision of reliable energy
    
services at the least possible cost to the citizens of the State; in such manner that:
            (i) physical, human and financial resources are
        
allocated efficiently;
            (ii) all supply and demand options are considered
        
and evaluated using comparable terms and methods in order to determine how utilities shall meet their customers' demands for public utility services at the least cost;
            (iii) utilities are allowed a sufficient return
        
on investment so as to enable them to attract capital in financial markets at competitive rates;
            (iv) tariff rates for the sale of various public
        
utility services are authorized such that they accurately reflect the cost of delivering those services and allow utilities to recover the total costs prudently and reasonably incurred;
            (v) variation in costs by customer class and time
        
of use is taken into consideration in authorizing rates for each class.
        (b) Environmental Quality: the protection of the
    
environment from the adverse external costs of public utility services so that
            (i) environmental costs of proposed actions
        
having a significant impact on the environment and the environmental impact of the alternatives are identified, documented and considered in the regulatory process;
            (ii) the prudently and reasonably incurred costs
        
of environmental controls are recovered.
        (c) Reliability: the ability of utilities to provide
    
consumers with public utility services under varying demand conditions in such manner that suppliers of public utility services are able to provide service at varying levels of economic reliability giving appropriate consideration to the costs likely to be incurred as a result of service interruptions, and to the costs of increasing or maintaining current levels of reliability consistent with commitments to consumers.
        (d) Equity: the fair treatment of consumers and
    
investors in order that
            (i) the public health, safety and welfare shall
        
be protected;
            (ii) the application of rates is based on public
        
understandability and acceptance of the reasonableness of the rate structure and level;
            (iii) the cost of supplying public utility
        
services is allocated to those who cause the costs to be incurred;
            (iv) if factors other than cost of service are
        
considered in regulatory decisions, the rationale for these actions is set forth;
            (v) regulation allows for orderly transition
        
periods to accommodate changes in public utility service markets;
            (vi) regulation does not result in undue or
        
sustained adverse impact on utility earnings;
            (vii) the impacts of regulatory actions on all
        
sectors of the State are carefully weighed;
            (viii) the rates for utility services are
        
affordable and therefore preserve the availability of such services to all citizens.
    It is further declared to be the policy of the State that this Act shall not apply in relation to motor carriers and rail carriers as defined in the Illinois Commercial Transportation Law, or to the Commission in the regulation of such carriers.
    Nothing in this Act shall be construed to limit, restrict, or mitigate in any way the power and authority of the State's Attorneys or the Attorney General under the Consumer Fraud and Deceptive Business Practices Act.
(Source: P.A. 92-22, eff. 6-30-01.)


 
    (220 ILCS 5/Art. II heading)
ARTICLE II. ILLINOIS
COMMERCE COMMISSION

    
Notes of Decisions
Cited in 28 cases (3 in the last 5 years), 1993–2026 · leading case: Adams v. Northern Illinois Gas Co.
Adams v. Northern Illinois Gas Co. (2004) ill “]" 220 ILCS 5/1-102(a)(iv) (West 1994). In return for the protections provided, the Act imposes certain duties upon the utilities it regulates: "Every public utility shall furnish, provide and maintain such service instrumentalities, equipment and facilities as shall promote the…”
Apple Canyon Lake Property Owners' Ass'n v. Illinois Commerce Comm'n (2013) illappct · cites it 3× “For example, the Commission must ensure that consumers are treated fairly (220 ILCS 5/1-102(d) (West 2008)), that “the application of rates is based on public understandability and acceptance of the reasonableness of the rate structure and level” (220 ILCS 5/1-102(d)(ii) (West…”
People v. Illinois Commerce Commission (2015) ill · cites it 5× “” 220 ILCS 5/1-102 (West 2010). One of the stated goals of such regulation is efficiency, or “the provision of reliable energy services at the least possible cost to the citizens of the State.”
In Re Illinois Bell Switching Station Litigation (1994) ill “In accordance with these findings, the legislature has declared as the policy of the State that "telecommunications services should be available to all Illinois citizens at just, reasonable and affordable rates and that such services should be provided as widely and economically…”
People v. Illinois Commerce Commission (2015) ill · cites it 3× “” 220 ILCS 5/1-102 (West 2010). It does this under the rate-of-return principles at the core of the Act, which do attempt to duplicate competition.”
Illinois Landowners Alliance, NFP v. Illinois Commerce Commission (2017) ill “" 220 ILCS 5/1-102 (West 2012). Underlying the law is a belief that these objectives can best be met through governmental supervision of public utilities and regulation of competition between them.”
Buerkett v. Illinois Power Co. (2008) illappct “"The General Assembly finds that the health, welfare[,] and prosperity of all Illinois citizens require the provision of adequate, efficient, reliable, environmentally safe[,] and least-cost public utility services at prices which accurately reflect the long-term cost of such…”
A. Finkl & Sons Co. v. Illinois Commerce Commission (1993) illappct “” Requiring ratepayers to bear the expense of services they avoid due to conservation or DSM programs is not only incredible, but runs afoul of basic ratemaking principles.”
Illinois Landowners Alliance, NFP v. Illinois Commerce Comm'n (2018) ill “” 220 ILCS 5/1-102 (West 2012). Underlying the law is a belief that these objectives can best be met through governmental supervision of public utilities and regulation of competition between them.”
Ill. Bell Telephone v. Ill. Comm. Com'n (1996) illappct “Therefore, whatever methodology the Commission adopts on remand must determine whether Bell's affiliation with Ameritech has in any way, regardless of the mental state of the actors involved, caused Bell's risk or capital costs to increase.”
Northern Illinois Gas Co. v. The Illinois Commerce Commission (2025) illappct · cites it 2× “2d at 121 (citing 220 ILCS 5/1-102(a)(iv) (West 1992)). “ ‘Prudence is that standard of care which a reasonable person would be expected to exercise under the same circumstances encountered by utility management at the time decisions had to be made.”
The Coalition to Request Equitable Allocation of Cost Together v. Illinois Commerce Commission Commonwealth Edison Compa (2015) illappct · cites it 2× “) 220 ILCS 5/1-102(d)(ii), (iii), (viii) (West 2012).”
— 220 ILCS 5/1-102(a) — 2 cases
People v. Illinois Commerce Commission (2015) ill “” 220 ILCS 5/1-102 (West 2010). One of the stated goals of such regulation is efficiency, or “the provision of reliable energy services at the least possible cost to the citizens of the State.”
People v. Illinois Commerce Commission (2015) ill “” 220 ILCS 5/1-102 (West 2010). It does this under the rate-of-return principles at the core of the Act, which do attempt to duplicate competition.”
— 220 ILCS 5/1-102(a)(iii) — 2 cases
People v. Illinois Commerce Commission (2015) ill “” 220 ILCS 5/1-102 (West 2010). It does this under the rate-of-return principles at the core of the Act, which do attempt to duplicate competition.”
People v. Illinois Commerce Commission (2015) ill “” 220 ILCS 5/1-102 (West 2010). One of the stated goals of such regulation is efficiency, or “the provision of reliable energy services at the least possible cost to the citizens of the State.”
— 220 ILCS 5/1-102(a)(iv) — 3 cases
Adams v. Northern Illinois Gas Co. (2004) ill “]" 220 ILCS 5/1-102(a)(iv) (West 1994). In return for the protections provided, the Act imposes certain duties upon the utilities it regulates: "Every public utility shall furnish, provide and maintain such service instrumentalities, equipment and facilities as shall promote the…”
Northern Illinois Gas Co. v. The Illinois Commerce Commission (2025) illappct “2d at 121 (citing 220 ILCS 5/1-102(a)(iv) (West 1992)). “ ‘Prudence is that standard of care which a reasonable person would be expected to exercise under the same circumstances encountered by utility management at the time decisions had to be made.”
— 220 ILCS 5/1-102(d) — 1 case
Apple Canyon Lake Property Owners' Ass'n v. Illinois Commerce Comm'n (2013) illappct “For example, the Commission must ensure that consumers are treated fairly (220 ILCS 5/1-102(d) (West 2008)), that “the application of rates is based on public understandability and acceptance of the reasonableness of the rate structure and level” (220 ILCS 5/1-102(d)(ii) (West…”
— 220 ILCS 5/1-102(d)(ii) — 2 cases
Apple Canyon Lake Property Owners' Ass'n v. Illinois Commerce Comm'n (2013) illappct “For example, the Commission must ensure that consumers are treated fairly (220 ILCS 5/1-102(d) (West 2008)), that “the application of rates is based on public understandability and acceptance of the reasonableness of the rate structure and level” (220 ILCS 5/1-102(d)(ii) (West…”
— 220 ILCS 5/1-102(d)(iii) — 4 cases
— 220 ILCS 5/1-102(d)(iv) — 2 cases
— 220 ILCS 5/1-102(d)(viii) — 1 case
Apple Canyon Lake Property Owners' Ass'n v. Illinois Commerce Comm'n (2013) illappct “For example, the Commission must ensure that consumers are treated fairly (220 ILCS 5/1-102(d) (West 2008)), that “the application of rates is based on public understandability and acceptance of the reasonableness of the rate structure and level” (220 ILCS 5/1-102(d)(ii) (West…”
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