MUNI WATER SYSTEM PURCHASE ACT

Creates the Municipal Water System Repurchase Act. Provides that a municipality may repurchase an investor-owned utility if the municipality finds that (1) the investor-owned utility is repeatedly non-compliant with the service quality standards mandated by the Illinois Commerce Commission; (2) water or wastewater service rates charged by the investor-owned utility have increased beyond the rate of inflation without corresponding improvements in service quality; or (3) a majority of the electorate in the municipality votes in favor of repurchase in a binding referendum. Provides that, if a municipality adopts an ordinance to repurchase an investor-owned utility, then the municipality shall provide written notice to (1) the investor-owned utility; (2) the Illinois Commerce Commission; and (3) all affected customers. Provides that a municipality may not repurchase an investor-owned utility unless (i)the municipality files a petition with the Illinois Commerce Commission and (ii) the Illinois Commerce Commission approves the petition. Provides that the Illinois Commerce Commission may approve the repurchase if it finds that (1) the municipality has complied with notice and hearing requirements; (2) the municipality used a reasonable method to determine the value of the investor-owned utility; (3) the repurchase of the investor-owned utility shall not cause unreasonable harm to customers or service continuity; and (4) the transition plan provides for uninterrupted utility service. Provides that, if the Illinois Commerce Commission approves a municipality's petition to repurchase an investor-owned utility, then the investor-owned utility shall transfer all facilities, records, and customer accounts to the municipality or its designated public entity. Provides that the purchase price for any system repurchased shall be determined by the fair market value of the system, including all physical assets and customer accounts, less depreciation, as determined by an independent valuation agreed upon by the parties or ordered by the Illinois Commerce Commission.