SB 3497

Amends the Public Utilities Act. In provisions concerning expenses that are recoverable by a public utility, provides that the Illinois Commerce Commission shall not consider as an expense of any public utility company, for the purpose of determining any rate or charge, any amount expended for political activity or lobbying, any amount expended for contributions to a trade association or a chamber of commerce, and any amount expended by a public utility for director and officer liability insurance and fiduciary liability insurance. Provides that, in determining whether the purchase of other types of insurance by a public utility is recoverable, the Commission shall determine whether the specific type of insurance is financially beneficial to the public utility's ratepayers or the public utility's shareholders. Provides that, if the Commission determines that the insurance purchased by the public utility is financially beneficial to its shareholders, then the purchase of the insurance shall not be a recoverable expense. Provides that goodwill or institutional advertising shall not be a recoverable expense by a public utility. Provides that the Commission shall deem as a nonrecoverable expense by a public utility (rather than the Commission shall specifically assess the justness and reasonableness of) any amount expended by a public utility to compensate attorneys or technical experts to prepare and litigate a general rate case filing. Provides that the amount that is deposited into the Consumer Intervenor Compensation Fund by a public utility shall not be a recoverable expense by the public utility. Provides that the computation of compensation awarded from the Fund shall take into consideration the market rates paid to persons of comparable training and experience who offer similar services, but may not exceed the comparable market rate for services paid by the public utility as part of its nonrecoverable rate case expense reported to the Commission (rather than as part of its rate case expense). Makes other changes.