220 ILCS 5/7-204
2021 Illinois Compiled Statutes|Chapter 220 - UTILITIES|220 ILCS 5/ - Public Utilities Act.|Article VII - Intercorporate Relations

 (from Ch. 111 2/3, par. 7-204)Sec. 7-204. Reorganization defined; Commission approval.(a) For purposes of this Section, "reorganization" means any  transaction which, regardless of the means by which it is accomplished,  results in a change in the ownership of a majority of the voting capital  stock of an Illinois public utility; or the ownership or control of any  entity which owns or controls a majority of the voting capital stock of a  public utility; or by which 2 public utilities merge, or by which a public  utility acquires substantially all of the assets of another public utility;  provided, however, that "reorganization" as used in this  Section shall not include a mortgage or pledge transaction entered into to  secure a bona fide borrowing by the party granting the mortgage or making the  pledge.In addition to the foregoing, "reorganization" shall include for purposes  of this Section any transaction which, regardless of the means by which it  is accomplished, will have the effect of terminating the affiliated  interest status of any entity as defined in paragraph (a), (b), (c) or  (d) of subsection (2) of Section 7-101 of this Act where such entity had  transactions with the public utility, in the 12 calendar months  immediately preceding the date of termination of such affiliated interest  status subject to subsection (3) of Section 7-101 of this Act with a  value greater than 15% of the public utility's revenues for that same  12-month period.  If the proposed transaction would have  the effect of  terminating the affiliated interest status of more than one Illinois public  utility, the utility with the greatest revenues for the 12-month period  shall be used to determine whether such proposed transaction is a  reorganization for the purposes of this Section.  The Commission shall have  jurisdiction over any reorganization as defined herein.(b) No reorganization shall take place without prior Commission  approval.  The Commission shall not approve any proposed reorganization if the  Commission finds, after notice and hearing, that the reorganization will  adversely affect the utility's ability to perform its duties under this  Act. The Commission shall not approve any proposed reorganization unless the Commission finds, after notice and hearing, that:(1) the proposed reorganization will not diminish the     utility's ability to provide adequate, reliable, efficient, safe and least-cost public utility service;(2) the proposed reorganization will not result in     the unjustified subsidization of non-utility activities by the utility or its customers;(3) costs and facilities are fairly and reasonably     allocated between utility and non-utility activities in such a manner that the Commission may identify those costs and facilities which are properly included by the utility for ratemaking purposes;(4) the proposed reorganization will not     significantly impair the utility's ability to raise necessary capital on reasonable terms or to maintain a reasonable capital structure;(5) the utility will remain subject to all applicable     laws, regulations, rules, decisions and policies governing the regulation of Illinois public utilities;(6) the proposed reorganization is not likely to have     a significant adverse effect on competition in those markets over which the Commission has jurisdiction;(7) the proposed reorganization is not likely to     result in any adverse rate impacts on retail customers.(c) The Commission shall not approve a reorganization  without ruling on: (i) the allocation of any savings resulting  from the proposed reorganization; and (ii) whether the companies should  be allowed to recover any costs incurred in accomplishing the  proposed reorganization and, if so, the amount of costs eligible for  recovery and how the costs will be allocated.(d) The Commission shall issue its Order approving or  denying the proposed reorganization within 11 months after the  application is filed. The Commission may extend the deadline  for a period equivalent to the length of any delay which the  Commission finds to have been caused by the Applicant's  failure to provide data or information requested by the  Commission or that the Commission ordered the Applicant to  provide to the parties. The Commission may also extend the  deadline by an additional period not to exceed 3 months to  consider amendments to the Applicant's filing, or to consider  reasonably unforeseeable changes in circumstances subsequent  to the Applicant's initial filing.(e) Subsections (c) and (d) and subparagraphs (6) and (7) of  subsection (b) of this Section shall apply only to merger  applications submitted to the Commission subsequent to April  23, 1997. No other Commission approvals shall be required for  mergers that are subject to this Section.(f) In approving any proposed reorganization pursuant to this Section  the  Commission may impose such terms, conditions or requirements as, in its  judgment, are necessary to protect the interests of the public utility and its  customers.  (Source: P.A. 100-840, eff. 8-13-18; 101-81, eff. 7-12-19.)