65 ILCS 5/11-117-6
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 11 - Corporate Powers and Functions

 (from Ch. 24, par. 11-117-6)Sec. 11-117-6.         (a) Any municipality may incorporate in any grant to a  public  utility company reservation of the right on the part of the municipality to  take over all or any part of the property, plant, or equipment used in the  operation of that public utility company, at or before the expiration of  the grant, upon such terms and conditions as may be provided in the grant.  Any municipality also may provide in any such grant that if such a reserved  right is not exercised by the municipality, and if the municipality grants  the right to another person to operate a utility in the streets and parts  of streets occupied by its grantee under the former grant, the new grantee  shall purchase and take over the property located in those streets and  parts of streets upon the terms which the municipality might have taken it  over.(b) Except as provided in Sections 11-117-1.1 and 11-117-7.1, any  municipality that owns or operates a municipal electric utility shall have the  exclusive right to provide electric service to all customers within its  municipal limits and to customers at metered locations outside its municipal  limits that it is serving on the effective date of this amendatory Act of 1996.  However, an investor-owned public utility providing electric service to  customers at metered locations within the municipal limits on the effective  date of this amendatory Act of 1996 or to customers at metered locations that  are annexed by the municipality after the effective date of this amendatory Act  of 1996 may continue to provide service to those residential customers at such  metered locations and  shall  continue to provide service to those nonresidential customers at such metered  locations within  the  municipal limits on the effective date of this amendatory Act of 1996.  In addition, an investor-owned public utility providing electric service to  nonresidential customers at metered locations in areas annexed after the  effective date of this amendatory Act of 1996 shall continue to provide service  to those nonresidential customers at such metered locations for a period of 2  years after the date of  annexation.  After the 2-year period,  the  investor-owned public utility may continue to provide service to those  nonresidential customers.  At any time during this 2-year period the  nonresidential customer may apply for service from a municipal utility  and the  investor-owned public utility shall promptly and consistent with  prudent utility practice facilitate such transfer to be effective as soon as  practicable upon the expiration of the 2-year period.(c) A municipality that owns or operates a municipal natural gas utility  shall have the exclusive right to provide natural gas service to all customers  at metered locations that it is serving on the effective date of this  amendatory Act of 1996, whether those customers are within the municipal limits  of the municipality or at metered locations outside the municipal limits.  However, an investor-owned public utility providing natural gas service to  customers at metered locations within the municipal limits on the effective  date of this amendatory Act of 1996 or to customers at metered locations that  are annexed by the municipality after the effective date of this amendatory Act  of 1996 may continue to provide service to those customers.(d) Notwithstanding subsections (b) and (c) of this Section, any  municipality may enter into an agreement with or grant a franchise to any  public utility defining the geographic areas in which each party, as between  themselves, may provide retail utility services, and the agreement or  franchise may provide for exclusive or non-exclusive service territories, or  both,  for the parties.  An agreement entered into under this Section may cover  geographic areas both within and outside the corporate limits of a  municipality.  Any agreement entered into under this subsection which provides  for exclusive service territories shall be subject to approval by the Illinois  Commerce Commission.  The Illinois Commerce Commission's jurisdiction and  authority over municipalities under this subsection shall be strictly limited  to the approval of the agreement.  Nothing in this subsection (d) shall be  construed to give a municipality the authority to grant to a public utility the  right to provide utility service in areas other than those for which the public  utility holds a certificate of public convenience and necessity from the  Illinois Commerce Commission.(e) Any dispute between a municipality and a public utility regarding retail  utility services to a customer and any dispute regarding enforcement or  interpretation of any agreement entered into or franchise granted under this  Section shall be brought in the circuit court of the County in which the  municipality is located, and the circuit courts of this State shall have the  jurisdiction and authority to determine the rights of the parties in those  matters.(f) The provisions of this Section are severable under Section 1.31 of the  Statute on Statutes.    (Source: P.A. 89-523, eff. 7-19-96.)