HJ0137 100TH GENERAL ASSEMBLY

HJ0137 LRB100 22277 MST 40996 r

HOUSE JOINT RESOLUTION

WHEREAS, Attorney General Lisa Madigan initiated Senate Bill 1531 to increase oversight of alternative retail electric and alternative gas suppliers and to guard against aggressive and misleading marketing and sales practices in the competitive energy supply market; and

WHEREAS, Currently in Illinois, there are nearly 55 alternative retail electric suppliers that are authorized to sell electricity to residential customers; and

WHEREAS, According to the Illinois Commerce Commission, alternative retail electric supplier customers in Illinois as a whole paid more than $198 million more for electricity than traditional utility customers from June 1, 2016 through May 31, 2017 and, statewide, residential, and small commercial customers enrolled with alternative retail electric suppliers have paid almost $400 million more in electricity costs in the last three years; and

WHEREAS, According to the Attorney General, nearly all customers that switch to alternative retail electric or alternative gas suppliers pay more for their energy bills than traditional utility customers, and residential customers do not have the ability to determine whether a company's money-saving claims are true; and

WHEREAS, Allegations exist that certain alternative retail electric and alternative gas suppliers frequently target older citizens, low-income customers, and individuals for whom English is a second language and use bait and switch marketing tactics where they entice consumers with savings claims and low teaser rates and then end up charging consumers up to three times the traditional utility rate; and

WHEREAS, The goal of the legislation is to rein in bad actors in the competitive energy supply industry who use aggressive and misleading marketing practices to lure people into paying more than they need to for their electricity and to create transparency and equip consumers with meaningful information so that they can make educated decisions about energy supply service; and

WHEREAS, Senate Bill 1531 intends to improve enforcement actions against alternative retail energy suppliers' unlawful and deceptive marketing practices by giving the Attorney General's Office additional legal tools under the Illinois Consumer Fraud Act; and

WHEREAS, Senate Bill 1531 intends to increase transparency around rate pricing by requiring alternative retail electric suppliers and alternative gas suppliers to include a "price-to-compare" utility supply rate on all marketing materials, during phone or door-to-door solicitations and on every customer's utility bill; and

WHEREAS, The legislation will require disclosure of price changes and will prevent suppliers from automatically renewing a customer's contract without the customer affirmatively opting-in to new terms; and

WHEREAS, Alternative retail electric and alternative gas suppliers will also be required to submit their rates to the Illinois Commerce Commission and the Attorney General's Office quarterly under this legislation; and

WHEREAS, The legislation intends to protect public energy assistance funds by ensuring that Low-Income Home Energy Assistance Program and the Percentage of Income Payment Plan funds do not go toward paying the higher prices for electric and gas supply that alternative retail electric or alternative gas suppliers charge; and

WHEREAS, Senate Bill 1531 is supported by a coalition of consumer advocates including AARP, Illinois PIRG, Center for Changing Lives, Citizen Action, Citizens Utility Board, Community Organizing and Family Issues (COFI), Heartland Alliance for Human Needs & Human Rights, Housing Action Illinois, Pilsen Alliance, and the Environmental Law and Policy Center; and

WHEREAS, The legislation has also received support from the City of Chicago, the Spanish Community Center, the Inner-City Muslim Action Network, LUCHA, and Preservation of Affordable Housing (POAH); and

WHEREAS, The Illinois Competitive Energy Association, the Retail Energy Supply Association, and other competitive energy suppliers, who provide consumers with customized energy products and services in addition to electric supply service, support stronger enforcement measures to root out unscrupulous suppliers from the competitive energy market, additional rate disclosure requirements, and further consumer education and protection improvements; and

WHEREAS, The Illinois Commerce Commission is a quasi-judicial body responsible for regulating several industries, as directed by the Illinois General Assembly, including licensing alternative retail electric and alternative gas suppliers, and regulating their marketing and sales practices; and

WHEREAS, The Illinois Commerce Commission's mission is to promote the development of an effectively competitive electricity market that operates efficiently and is equitable to all consumers consistent with the Electric Service Customer Choice and Rate Relief Law of 1997, the Retail Electric Competition Act of 2006, the Alternative Gas Supplier Law; the Public Utilities Act, and Commission Rules; and

WHEREAS, The Illinois Commerce Commission provides analysis, policy development, public safety, and enforcement activities related to electric and natural gas companies; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE SENATE CONCURRING HEREIN, that the Illinois Commerce Commission shall study the provisions of and circumstances surrounding Senate Bill 1531 and any other pertinent pending or proposed legislation; and be it further

RESOLVED, That the Illinois Commerce Commission shall conduct at least three public meetings in which comments and proposals can be presented that address the concerns and allegations regarding the alternative retail electric and alternative gas suppliers and competitive energy markets from the Attorney General's Office, the aforementioned coalition of consumer advocates, the Illinois Competitive Energy Association, the Retail Energy Supply Association, other competitive energy suppliers, and any other interested party; and be it further

RESOLVED, That the Illinois Commerce Commission shall submit its findings, conclusions, and recommendations, either through changes in future legislation, or Commission Rules, or Commission Docketed Proceedings, in a report to the Illinois General Assembly on or before January 9, 2019; and be it further

RESOLVED, That the report filed with the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and Secretary shall direct.