Section 325.10  Scope, Construction and Application of this Part

 

This Part establishes requirements applicable to public utilities that, pursuant to the Act, seek recovery of the costs of donations as operating expenses through rates or other charges or classifications. The information required by this Part is intended to be supplemental to information required by other provisions of law pertaining to donations by public utilities, including 83 Ill. Adm. Code 280.3070 (Schedule C-7: Charitable Contributions), and the provisions of this Part are not intended to reduce or eliminate those other requirements. The practices and procedures contained in this Part are intended to help ensure that:

 

a)         qualifying donations are ones for which recovery from ratepayers is appropriate under the Act; and

 

b)         the information provided to the Commission for its review of the prudence and reasonableness of the donations is sufficient in quality and detail and is supported by the record of the rate case.

 

Section 325.20  Definitions

 

The following terms, as used in this Part, shall have the following meanings:

 

"Act" means the Public Utilities Act [220 ILCS 5].

 

"Charitable contribution" means a donation proposed to be an operating expense pursuant to the Act or any applicable order or rule of the Commission, including, without limitation, Section 9-227 of the Act and 83 Ill. Adm. Code 285.3070 (Schedule C-7: Charitable Contributions).

 

"Commission" means the Illinois Commerce Commission.

 

"Donation" means a contribution made by a public utility to an organization or entity that purports to be engaged in promoting the public welfare or in supporting charitable, scientific, religious or educational purposes, including, without limitation, charitable contributions.

 

"Public utility" or "utility" has the meaning ascribed to "public utility" in Section 3-105 of the Act.

 

"Rate case" means any rate proceeding filed under Article IX  (Rates) or Article XVI (Electric Service Customer Choice and Rate Relief Law of 1997) of the Act, or filed in connection with any other applicable recovery mechanism, including riders.

 

Section 325.30  Supplemental Information to be Provided Regarding Charitable Contributions

 

a)         To assist the Commission in evaluating the prudence and reasonableness of any charitable contribution, for all charitable contributions to a single entity or organization that total $1,000 or more in the reporting year for which a utility is seeking recovery from ratepayers in a rate case, the utility must provide both the information required by 83 Ill. Adm. Code 285.3070 and the following supplemental information, provided that, if charitable contributions subject to this Section include amounts that the utility contributed under a program in which it matches employee contributions, the utility may report the matching contributions as a single aggregate amount separately for each recipient of matching funds:

 

1)         Account number/description used to record each charitable contribution;

 

2)         Date and amount of each charitable contribution;

 

3)         Brief description of why the donation is reasonable in amount;

 

4)         Name of the entity or organization receiving the charitable contribution;

 

5)         Publicly stated mission of, or a link through which the stated mission may be publicly accessed, and the physical address of, the entity or organization receiving the charitable contribution;

 

6)         Indication of whether the entity or organization receiving each charitable contribution is a tax-exempt organization under State or federal law. Notwithstanding this informational requirement, the fact that an entity or organization is or is not tax exempt does not create an inference that a contribution to the entity or organization is per se reasonable or unreasonable;

 

7)         Description of the purpose of each charitable contribution, including:

 

A)        whether it is for the public welfare or for charitable scientific, religious or educational purposes; and

 

B)        whether the donee provides services within the public utility's service territory or within the State of Illinois;

 

8)         Amount of the charitable contribution, if any, allocated to other utility operations (e.g., gas and electric, or water and sewer) or jurisdiction (e.g., Illinois and Iowa), along with the identification of the other utility operation or jurisdiction; and

 

9)         Basis of any allocation to other utility operations and jurisdictions, if applicable.

 

b)         The workpapers supporting subsection (a) (see 83 Ill.  Adm. Code 285.410) shall include the following:

 

1)         Procedures used by a utility providing multiple utility services (e.g., gas and electric, or water and sewer) or serving multiple jurisdictions (e.g., Illinois and Iowa) to allocate any charitable contribution to each utility service provided or jurisdiction served; and

 

2)         Sworn statements required by Section 325.60, if applicable.

 

Section 325.40  Information to be Made Available Regarding Charitable Contributions

 

In any rate case proceeding involving a charitable contribution, the utility seeking recovery shall make the following materials available electronically to Commission Staff upon request:

 

a)         Written confirmation, which may be in the form of a receipt or a letter or other written communication, from the entity or organization receiving the charitable contribution showing the name of the entity or organization that received the charitable contribution, the name of the utility that made the charitable contribution, the date the charitable contribution was made, and the amount of the charitable contribution;

 

b)         For all donations to a single organization or entity that are less than $1,000 for the reporting year for which a utility is seeking recovery from ratepayers in a rate case, a spreadsheet that identifies the date, donee charity, purpose and amount of each contribution, provided that, if charitable contributions subject to this subsection include amounts that the utility contributed under a matching program under which it matches employee contributions, then the utility may report the matching contributions as a single aggregate amount separately for each recipient of matching funds, and the confirmation and letter prescribed in subsection (a) may not be available; and

 

c)         For individual donations that are $10,000 or more for the reporting year for which a utility is seeking recovery from ratepayers in a rate case, written confirmation from the recipient entity or organization stating the intended purpose of the funds received.

 

Section 325.50  Future Test Year Rate Filings

 

If a utility uses a future test year in a rate case, the utility shall provide the information required by Section 325.30 for each of the three consecutive calendar years immediately preceding the test year for which actual data are available, provided, however, that for those past calendar years this Section shall not be construed as imposing additional information requirements that did not exist prior to the effective date of this Part.

 

Section 325.60  Disclosures Regarding Donations or Charitable Contributions Made to Energy Low-Income and Support Programs Under Section 16-108.5(b-10)

 

For any donation by a participating utility to the energy low-income and support programs required by Section 16-108.5(b-10) of the Act, the participating utility shall, in its formula rate filings under Section 16-108.5 of the Act, provide to Commission Staff a sworn statement that none of the donations made in compliance with the requirements of Section 16-108.5(b-10) are included in the request for rate recovery.