Section 310.10  Routine Banking Transactions

 

The opening of bank accounts, deposit of monies in those accounts, the withdrawal of monies from those accounts by checks, drafts, bills of exchange or otherwise, the making of time deposits with banks, the purchase from banks, at not to exceed prevailing market prices, of obligations of the United States maturing not more than five years after the purchase, the sale to banks of obligations of the United States at not less than prevailing market prices, and the making use of routine custodial and handling services of banks with respect to securities at not to exceed standard charges, all in the ordinary course of business, are not considered to be contracts or arrangements within the purview of Section 7-101 of the Public Utilities Act.

 

(Source:  Amended at 43 Ill. Reg. 11944, effective October 1, 2019)

 

Section 310.20  Revolving Loan Fund for Employees

 

Any utility may set aside and maintain a fund in an amount to be approved by the Commission to be used as a revolving fund, under such rules and regulations as may be prescribed by the Commission, for loans to employees.

 

Section 310.30  Compromises or Settlements with Customers in Financial Difficulties

 

Consent and approval by the Commission shall not be required for a utility in compromising or settling a claim for unpaid utility service against a customer in financial difficulties whose affairs are being administered by a creditors' committee, protective committee, reorganization committee or other similar agency, to accept securities or obligations issued by or on behalf of such customer, provided, that the amount of unpaid services so compromised or settled is not in excess of $5,000, and provided, further, that the compromise or settlement with the utility shall be on at least as favorable terms for the utility as the compromise or settlement made for or on behalf of such customer with any other creditor similarly situated.

 

Section 310.40  Transactions Under Contracts in Existence on July 10, 1933

 

Approval by the Commission of particular transactions under any contract or arrangement of the character described in Section 7-101(3) of the Act shall not be required when the contract or arrangement was in existence on July 10, 1933; or when the contract or arrangement is filed with and approved by the Commission subsequent to that date.  Each utility shall keep accurate records relating to these transactions, which shall be open to inspection by the Commission.  Nothing in this Section shall be construed as an approval, for any purpose, of any contracts existing on July 10, 1933.

 

(Source:  Amended at 43 Ill. Reg. 11944, effective October 1, 2019)

 

Section 310.50  Service Agreements with Affiliated Natural Gas Companies for Natural Gas Service at Filed Rates

 

Approval by the Commission shall not be required for the execution and performance by an Illinois utility of a service agreement  with an affiliated natural gas company (as defined in section 2(6) of the federal Natural Gas Act (15 USC 717a(6)), when the service agreement is substantially in the form filed by the natural gas company (as directed by 18 CFR 154.110 (August 3, 2016)) as a part of its Federal Energy Regulatory Commission (FERC) Gas Tariff, and executed or to be executed by non-affiliated customers of the natural gas company and providing for the rendition of service at rates and charges filed with FERC.

 

(Source:  Amended at 43 Ill. Reg. 11944, effective October 1, 2019)

 

Section 310.60  Contracts with Affiliated Interests Which Need Not be Filed or Approved

 

Pursuant to Section 7-101 of the Act and subject to the other provisions of this Part, the Commission hereby waives, as to all public utilities, the filing and necessity for approval of contracts and arrangements described in Section 7-101(3) of the Act 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 in which the total obligation to be incurred under the contract does not exceed the lesser of $5,000,000 or 2% of the public utility's receipts from all tariffed services as defined in Article XVI or Article XIX of the Act 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 under the rules for competitive bidding prescribed in this Part.

 

(Source:  Amended at 43 Ill. Reg. 11944, effective October 1, 2019)

 

Section 310.70  Rules Governing Competitive Bidding

 

a)         Whenever any public utility desires to enter into contracts or arrangements pursuant to competitive bidding, the public utility shall prepare specifications, forms of proposals or contracts setting forth clearly, and so far as applicable in each case in detail, a description or descriptions of the matters and things for which bids are requested, including the terms, times and conditions of delivery and payment, the place or places where delivery or performance is to be made, the character, amount and terms of securities offered or sought, and a full description of the supplies or other articles or things required or offered for sale, hypothecation, or purchase, and shall make and attach to the specifications such maps, drawings and illustrations, and state such other substantial facts or conditions, as are or may be necessary to a full understanding of the premises and procedure by bidders.  The specifications, drawings and illustrations in each case shall be kept open at the principal office or offices of the public utility in Illinois, or made available on the public utility's website, for full examination, free of charge, by persons desiring to examine those specifications with a view to bidding.  Upon request, the public utility shall furnish to any person or persons desiring them, true and correct copies of the specifications, maps, drawings and illustrations.  The public utility may make a charge for copies furnished that shall not exceed the reasonable cost of making and forwarding the copies requested.  In addition, the public utility shall electronically distribute a notice requesting bids in a manner reasonably designed to achieve broad circulation among prospective bidders, post a notice requesting bids to its website, or publish once a week for two consecutive weeks a notice requesting bids in at least two newspapers of general circulation, the first publication to be at least two weeks immediately preceding the day that bids are to be submitted.  One newspaper shall be the official State newspaper and the other newspaper shall be one published or of general circulation in either:

 

1)         the city or town where the principal operating office of the public utility is located; or

 

2)         the city or town where the contract is to be performed.

 

b)         The electronic or published notices shall describe in general the proposed contract or arrangement and the special things or matters for which bids are requested, the date and time at or before which the bids must be submitted, and the person to whom, and the office at which, the bids submitted will be received and opened.  The public utility may, in the notice, reserve the right to reject any and all bids and may, at its option, require each bidder to tender a bond in a reasonable sum stated in the notice, with sufficient surety conditioned upon the faithful and prompt performance of the terms of the contract or arrangement.

 

c)         Every bid to receive consideration shall be submitted at the place and by the time specified in the notice for the receipt of bids.  The time specified may be any hour from 10:00 a.m. until 3:00 p.m. of any business day and the bids shall be opened after the specified hour and before 6:00 p.m. on the day, at the place, and by the person or persons designated in the notice. Each bidder may attend in person, or by duly authorized representative, at the opening of the bids, and shall be afforded an opportunity to examine each bid.  The bids then shall be tabulated and a copy of the tabulation shall be promptly furnished to any bidder or authorized representative upon application.  When required by the notice, each bid shall be accompanied by a bond in the amount and upon the conditions specified in the notice.  A bond shall be required only in cases in which the notice expressly specifies a bond requirement.  Each bid shall be enclosed with accompanying papers in a plain envelope, securely sealed, bearing no indication of the bidder or the amount of the bid; shall be marked "Bid under proposed contract pursuant to notice dated _________"; and shall be addressed to the officer of the public utility designated in the notice to receive the bid.  Each bid shall state the name and address of the bidder and, if the bidder is a corporation, the names and addresses of its officers and directors, and of the purchasing or selling officer or agent in that transaction.  If the bidder is a firm, partnership or association, the bid shall give the names and addresses of each member and of the general manager and purchasing or selling agent in that transaction.

 

d)         After receiving and opening bids as prescribed in subsection (c), the public utility receiving the bid shall, within 48 hours when the sale of securities is the undertaking, and within 20 days when the bids are for the purchase or sale of supplies, equipment, construction or maintenance work, or other articles or things, accept the most favorable bid considering:

 

1)         the lowest price or prices for the purchase of supplies, equipment, construction or maintenance work, articles or things described in the advertisement, and the highest price or prices offered for any securities or property so described for sale by the public utility; and

 

2)         the ability and reliability of the bidder, financial and otherwise, to deliver the property or to perform the work or transaction or to pay for the securities or property described in the advertisement, giving due consideration to any bond or security accompanying the bid.

 

e)         If so specified in the notice, all bids may be rejected and the public utility may readvertise for bids.  The public utility shall notify the successful bidder of the acceptance of its bid and the bidder shall, within 10 days, execute the required contract, and if required by the notice, execution of a good and sufficient bond for the faithful and prompt performance of the contract shall be executed.  If the successful bidder neglects or fails to timely execute the contract or bond, the public utility may, within 5 days after the expiration of the 10 day period, award the contract or arrangement to the next most favorable bidder.  If neither the most favorable bidder nor the next most favorable bidder executes a contract and qualifies, the public utility shall readvertise for new bids.

 

f)         Each public utility, after having made and executed a contract, shall, within 15 days, file with the Commission a statement of the transaction giving:

 

1)         a copy of the electronic or published notice;

 

2)         the total amount of each bid and the names of all bidders, and:

 

A)        if the bidder is a corporation, the names and addresses of the officers and directors, and of the purchasing or selling officer or agent in that transaction; or

 

B)        if the bidder is a partnership, firm or association, the names and addresses of the members, the general manager, and the purchasing or selling agent in that transaction;

 

3)         the name of the bidder to whom the contract was awarded, together with a copy of the contract; and

 

4)         if any other than the lowest or the highest bid, as the case may be, is accepted as being the most favorable to the utility, the reasons for the acceptance.

 

g)         In the case of each bid, the public utility shall preserve and keep open for examination by the Commission, or any duly authorized representative:

 

1)         a copy of the resolution or order of the board of directors, executive committee or officers of the public utility, specifying the purposes and terms of the contract for which the bids were invited;

 

2)         a copy of the specifications, maps, drawings and illustrations upon which bids were made;

 

3)         copies of the electronic or published notices, giving the dates and times of each distribution, posting or publication;

 

4)         the original bids received, designating the bid accepted and giving a statement of the reasons for accepting the bid;

 

5)         a copy of the contract entered into between the public utility and the accepted bidder, together with a copy of the bond, if any.

 

h)         The files in each transaction shall be securely fastened together and marked "Transaction for competitive bidding, pursuant to notice dated _______" with a sworn statement by the president, a vice president or secretary of the public utility stating that:

 

1)         the files contain true and complete records of all of the negotiations had in connection with the contract; and

 

2)         the files shall not be broken or any part destroyed by the public utility or any officer or agent thereof, without written authorization of the Commission.

 

i)          Nothing in this Section shall excuse or waive the requirement of prior approval and authorization for the issuance of securities under Article VI of the Act.

 

(Source:  Amended at 43 Ill. Reg. 11944, effective October 1, 2019)

 

Section 310.80  Applicability

 

a)         The above and foregoing provisions of this Part shall apply alike to all public utilities under the jurisdiction of the Illinois Commerce Commission subject however, to the power of the Commission, either upon complaint or upon its own motion, to rescind this Part or any provision thereof to any one or more public utilities which shall be found, after a hearing, to be guilty of abusing, either presently or in the past, this Part or guilty of evading compliance with the standards herein set forth.  For the purposes of this Part the terms "abusing" and "evading compliance" are used in their broadest sense, and, among other things, include the granting, directly or indirectly, of a preference or advantage which results in unjust discrimination and any contract or arrangement by which an affiliated interest takes undue advantage of a public utility.

 

b)         General Order No. 130, together with the First, Second and Third Supplements to said order are hereby cancelled and rescinded and the provisions of this Part together with 83 Ill. Adm. Code 105 (General Order 175) supersede the rules therein prescribed.