65 ILCS 5/11-117-7.1
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 11 - Corporate Powers and Functions

Sec. 11-117-7.1.         Service rights in annexed areas; acquiring electric  facilities after annexation.(a) Consistent with the first paragraph of Section 5, and with Section 14,  of the Electric Supplier Act, an electric cooperative (as defined in the  Electric Supplier Act) providing service in an area which is annexed to or  otherwise becomes located within an incorporated municipality that owns and  operates a municipal utility for the purpose of providing retail electric  services shall have the right to continue to provide service without  authorization by the incorporated municipality to all existing premises being  served and may provide service to new premises located in such area  that can be served from  the cooperative's primary distribution facilities in existence upon the date  such area is annexed to or otherwise becomes located within an incorporated  municipality.  If necessary, the cooperative may maintain or upgrade existing  facilities or rebuild facilities to provide adequate and reliable service to  customers served or to be served as permitted under this Section.  The  cooperative shall not extend primary distribution facilities into or within  such area unless the cooperative is or shall become authorized to do so by the  incorporated municipality.(b) Customers receiving service from an electric cooperative at premises  located in an area that is annexed to or otherwise becomes located within an  incorporated municipality that owns and operates a municipal utility for the  purpose of providing retail electric service may elect to take service from  either the cooperative or the municipality.  Customers at new  premises that may be served by an electric cooperative under subsection (a)  may, at the time of connection, elect to take service from either the electric  cooperative or the municipality.  In all instances the customer's election of  service supplier shall be binding upon the customer only for such time as the  customer requires service at that premises.  Subsequent customers at such  premises shall have the same right of selection; provided, however, an electric  cooperative providing service in an area which is annexed to or otherwise  becomes located within an incorporated municipality is not obligated to provide  retail electric service except as required under the Electric Supplier Act or  the terms of a franchise granted by the incorporated municipality.(c) If any facilities located in such area are or become unnecessary to  provide service to a customer or customers as a result of a customer's election  to receive service from either the electric cooperative or the municipality,  the owner of the facilities may require the other supplier of electric service  to acquire the facilities for an amount agreed upon by the parties or an amount  equal to the present-day reproduction cost, new, of the facilities being  acquired, less depreciation computed on a straight-line basis according to the  seller's standard schedule of depreciation, multiplied by the factor 1.1, but  no less than the cost to disconnect and remove the facilities if the supplier  acquiring the facilities requires them to be removed by the selling supplier.(d) The provisions of this Section are severable under Section 1.31 of the  Statute on Statutes.    (Source: P.A. 88-335.)