220 ILCS 5/7-101
2021 Illinois Compiled Statutes|Chapter 220 - UTILITIES|220 ILCS 5/ - Public Utilities Act.|Article VII - Intercorporate Relations

 (from Ch. 111 2/3, par. 7-101)Sec. 7-101.     Transactions with affiliated interests.(1) The Commission shall have jurisdiction over holders of the  voting capital stock of all public utilities under the jurisdiction of the  Commission to such extent as may be necessary to enable the Commission to  require the disclosure of the identity in respective interests of every owner  of any substantial interest in such voting capital stocks.  One per centum  or more is a substantial interest, within the meaning of this subdivision.(2) (i) Except as provided in subparagraph (ii) of this subsection (2),  the Commission shall have jurisdiction over affiliated interests having  transactions, other than ownership of stock and receipt of dividends thereon,  with public utilities under the jurisdiction of the Commission, to the extent  of access to all accounts and records of such affiliated interests relating  to such transactions, including access to accounts and records of joint or  general expenses, any portion of which may be applicable to such transactions;  and to the extent of authority to require such reports with respect to such  transactions to be submitted by such affiliated interests, as the Commission  may prescribe.(ii) The Commission shall have jurisdiction over affiliated interests  having transactions, other than ownership of stock and receipt of dividends  thereon, with electric and gas public utilities under the jurisdiction of the  Commission, to the extent of access to all accounts and records of such  affiliated interests relating to such transactions, including access to  accounts and records of joint and general expenses with the electric or gas  public utility any portion of which is related to such transactions; and to the  extent of authority to require such reports with respect to such transactions  to be submitted by such affiliated interests, as the Commission may prescribe;  provided, however, that prior to requesting such access or reports from the  affiliated interest, the Commission shall first seek to obtain the information  that would be included in such accounts, records or reports from the public  utility.  The Commission shall not have access to any accounts and records of,  or require any reports from, an affiliated interest that are not related to a  transaction, including without limitation a transfer or exchange of tangible or  intangible assets, with the electric or gas public utility.  Nothing in this  paragraph shall limit the authority of the Commission otherwise provided under  this Act to have access to accounts and records of, or to require reports from,  the electric or gas public utility or to prescribe guidelines which the  electric or gas public utility must follow in allocating costs to transactions  with affiliated interests.For the purpose of this Section, the phrase "affiliated  interests" means:(a) Every corporation and person owning or holding,     directly or indirectly, 10% or more of the voting capital stock of such public utility;(b) Every corporation and person in any chain of     successive ownership of 10% or more of voting capital stock;(c) Every corporation, 10% or more of whose voting     capital stock is owned by any person or corporation owning 10% or more of the voting capital stock of such public utility, or by any person or corporation in any such chain of successive ownership of 10% or more of voting capital stock;(d) Every corporation, 10% or more of whose voting     securities is owned, directly or indirectly by such public utility;(e) Every person who is an elective officer or     director of such public utility or of any corporation in any chain of successive ownership of 10% or more of voting capital stock;(f) Every corporation which has one or more elective     officers or one or more directors in common with such public utility;(g) Every corporation or person which the Commission     may determine as a matter of fact after investigation and hearing is actually exercising any substantial influence over the policies and actions of such public utility even though such influence is not based upon stock holding, stockholders, directors or officers to the extent specified in this Section;(h) Every person or corporation who or which the     Commission may determine as a matter of fact after investigation and hearing is actually exercising such substantial influence over the policies and actions of such public utility in conjunction with one or more other corporations or persons with which or whom they are related by ownership or blood relationship or by action in concert that together they are affiliated with such public utility within the meaning of this Section even though no one of them alone is so affiliated.No such person or corporation is affiliated within the meaning of this  Section however, if such person or corporation is otherwise subject to  the jurisdiction of the Commission or such person or corporation has not had  transactions or dealings other than the holding of stock and the receipt of  dividends thereon with such public utility during the 2 year period next  preceding.(3) No management, construction, engineering, supply, financial or similar  contract and no contract or arrangement for the purchase, sale, lease or  exchange of any property or for the furnishing of any service, property  or thing, hereafter made with any affiliated interest, as hereinbefore defined,  shall be effective unless it has first been filed with and consented to  by the Commission or is exempted in accordance with the provisions of this  Section or of Section 16-111 of this Act.  The Commission may condition such  approval  in such manner  as it may deem necessary to safeguard the public interest.  If it be found  by the Commission, after investigation and a hearing, that any such contract  or arrangement  is not in the public interest, the Commission may disapprove such contract or  arrangement.  Every contract or arrangement not consented to or excepted by the Commission  as provided for in this Section is void.The consent to, or exemption or waiver of consent to, any contract or  arrangement under this Section or Section 16-111,  does not  constitute approval of payments thereunder for the purpose of computing  expense of operation in any rate proceeding.  However, the Commission shall  not require a public utility to make purchases at prices exceeding the prices  offered by an affiliated interest, and the Commission shall not be required  to disapprove or disallow, solely on the ground that such payments yield  the affiliated interest a return or rate of return in excess of that allowed  the public utility, any portion of payments for purchases from an affiliated  interest.(4) The Commission may by general rules applicable alike to all public  utilities affected thereby waive the filing and necessity for approval of  contracts and arrangements described in subparagraph (3) of this Section in  cases of (a) contracts or arrangements made in the ordinary course of business  for the employment of officers or employees; (b) contracts or arrangements  made in the ordinary course of business for the purchase of services, supplies,  or other personal property at prices not exceeding the standard or prevailing  market prices, or at prices or rates fixed pursuant to law; (c) contracts  or arrangements where the total obligation to be incurred under such contract  or arrangement does  not exceed the lesser of (i) $5,000,000 or (ii) 2% of the public utility's  receipts from all tariffed services (as defined in Article XVI) in the  preceding calendar year; (d) the temporary leasing, lending or interchanging of  equipment in the ordinary course of business or in case of an emergency;  and (e) contracts made by a public utility with a person or corporation  whose bid is the most favorable to the public utility, as ascertained by  competitive bidding.  If the Commission, after a hearing, finds that any public utility is abusing  or has abused such general rule and thereby is evading compliance with the  standard established herein, the Commission may require such public utility  to thereafter file and receive the Commission's approval upon all such  transactions, but that general rule shall remain in full force and effect  as to all other public utilities.    (Source: P.A. 90-561, eff. 12-16-97.)