Rep. Kelly M. Burke

Filed: 3/21/2019

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3028

2    AMENDMENT NO. ______. Amend House Bill 3028 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Public Utilities Act is amended by changing
5Sections 16-115, 16-115A, 16-115B, 16-118, 16-119, 19-115,
619-135, and 20-110 and by adding Section 20-140 as follows:
 
7    (220 ILCS 5/16-115)
8    Sec. 16-115. Certification of alternative retail electric
9suppliers.
10    (a) Any alternative retail electric supplier must obtain a
11certificate of service authority from the Commission in
12accordance with this Section before serving any retail customer
13or other user located in this State. An alternative retail
14electric supplier may request, and the Commission may grant, a
15certificate of service authority for the entire State or for a
16specified geographic area of the State.

 

 

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1    (b) An alternative retail electric supplier seeking a
2certificate of service authority shall file with the Commission
3a verified application containing information showing that the
4applicant meets the requirements of this Section. The
5alternative retail electric supplier shall publish notice of
6its application in the official State newspaper within 10 days
7following the date of its filing. No later than 45 days after
8the application is properly filed with the Commission, and such
9notice is published, the Commission shall issue its order
10granting or denying the application. The Commission may extend
11the time for considering a certificate of service authority
12request by up to 90 days and may schedule hearings on the
13request if:
14         (1) a party to the application proceeding has formally
15    requested that the Commission hold hearings in a pleading
16    that alleges that one or more of the allegations or
17    certifications in the application is false or misleading;
18    or
19        (2) any other facts or circumstances exist that will
20    necessitate additional time or evidence in order to
21    determine whether a certificate of service authority
22    should be issued.
23    (c) An application for a certificate of service authority
24shall identify the area or areas in which the applicant intends
25to offer service and the types of services it intends to offer.
26Applicants that seek to serve residential or small commercial

 

 

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1retail customers within a geographic area that is smaller than
2an electric utility's service area shall submit evidence
3demonstrating that the designation of this smaller area does
4not violate Section 16-115A. An applicant that seeks to serve
5residential or small commercial retail customers may state in
6its application for certification any limitations that will be
7imposed on the number of customers or maximum load to be
8served.
9    (d) The Commission shall grant the application for a
10certificate of service authority if it makes the findings set
11forth in this subsection based on the verified application and
12such other information as the applicant may submit:
13        (1) That the applicant possesses sufficient technical,
14    financial and managerial resources and abilities to
15    provide the service for which it seeks a certificate of
16    service authority. In determining the level of technical,
17    financial and managerial resources and abilities which the
18    applicant must demonstrate, the Commission shall consider
19    (i) the characteristics, including the size and financial
20    sophistication, of the customers that the applicant seeks
21    to serve, and (ii) whether the applicant seeks to provide
22    electric power and energy using property, plant and
23    equipment which it owns, controls or operates, and (iii)
24    the applicant's commitment of resources to the management
25    of sales and marketing staff, through affirmative
26    managerial policies, independent audits, technology,

 

 

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1    hands-on field monitoring and training, and, in the case of
2    applicants who will have sales personnel or sales agents
3    within the State of Illinois, the applicant's managerial
4    presence within the State;
5        (2) That the applicant will comply with all applicable
6    federal, State, regional and industry rules, policies,
7    practices and procedures for the use, operation, and
8    maintenance of the safety, integrity and reliability, of
9    the interconnected electric transmission system;
10        (3) That the applicant will only provide service to
11    retail customers in an electric utility's service area that
12    are eligible to take delivery services under this Act;
13        (4) That the applicant will comply with such
14    informational or reporting requirements as the Commission
15    may by rule establish and provide the information required
16    by Section 16-112. Any data related to contracts for the
17    purchase and sale of electric power and energy shall be
18    made available for review by the Staff of the Commission on
19    a confidential and proprietary basis and only to the extent
20    and for the purposes which the Commission determines are
21    reasonably necessary in order to carry out the purposes of
22    this Act;
23        (5) That the applicant will procure renewable energy
24    resources in accordance with Section 16-115D of this Act,
25    and will source electricity from clean coal facilities, as
26    defined in Section 1-10 of the Illinois Power Agency Act,

 

 

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1    in amounts at least equal to the percentages set forth in
2    subsections (c) and (d) of Section 1-75 of the Illinois
3    Power Agency Act. For purposes of this Section:
4            (i) (Blank);
5            (ii) (Blank);
6            (iii) the required sourcing of electricity
7        generated by clean coal facilities, other than the
8        initial clean coal facility, shall be limited to the
9        amount of electricity that can be procured or sourced
10        at a price at or below the benchmarks approved by the
11        Commission each year in accordance with item (1) of
12        subsection (c) and items (1) and (5) of subsection (d)
13        of Section 1-75 of the Illinois Power Agency Act;
14            (iv) all alternative retail electric suppliers
15        shall execute a sourcing agreement to source
16        electricity from the initial clean coal facility, on
17        the terms set forth in paragraphs (3) and (4) of
18        subsection (d) of Section 1-75 of the Illinois Power
19        Agency Act, except that in lieu of the requirements in
20        subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
21        paragraph (3) of that subsection (d), the applicant
22        shall execute one or more of the following:
23                (1) if the sourcing agreement is a power
24            purchase agreement, a contract with the initial
25            clean coal facility to purchase in each hour an
26            amount of electricity equal to all clean coal

 

 

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1            energy made available from the initial clean coal
2            facility during such hour, which the utilities are
3            not required to procure under the terms of
4            subsection (d) of Section 1-75 of the Illinois
5            Power Agency Act, multiplied by a fraction, the
6            numerator of which is the alternative retail
7            electric supplier's retail market sales of
8            electricity (expressed in kilowatthours sold) in
9            the State during the prior calendar month and the
10            denominator of which is the total sales of
11            electricity (expressed in kilowatthours sold) in
12            the State by alternative retail electric suppliers
13            during such prior month that are subject to the
14            requirements of this paragraph (5) of subsection
15            (d) of this Section and subsection (d) of Section
16            1-75 of the Illinois Power Agency Act plus the
17            total sales of electricity (expressed in
18            kilowatthours sold) by utilities outside of their
19            service areas during such prior month, pursuant to
20            subsection (c) of Section 16-116 of this Act; or
21                (2) if the sourcing agreement is a contract for
22            differences, a contract with the initial clean
23            coal facility in each hour with respect to an
24            amount of electricity equal to all clean coal
25            energy made available from the initial clean coal
26            facility during such hour, which the utilities are

 

 

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1            not required to procure under the terms of
2            subsection (d) of Section 1-75 of the Illinois
3            Power Agency Act, multiplied by a fraction, the
4            numerator of which is the alternative retail
5            electric supplier's retail market sales of
6            electricity (expressed in kilowatthours sold) in
7            the State during the prior calendar month and the
8            denominator of which is the total sales of
9            electricity (expressed in kilowatthours sold) in
10            the State by alternative retail electric suppliers
11            during such prior month that are subject to the
12            requirements of this paragraph (5) of subsection
13            (d) of this Section and subsection (d) of Section
14            1-75 of the Illinois Power Agency Act plus the
15            total sales of electricity (expressed in
16            kilowatthours sold) by utilities outside of their
17            service areas during such prior month, pursuant to
18            subsection (c) of Section 16-116 of this Act;
19            (v) if, in any year after the first year of
20        commercial operation, the owner of the clean coal
21        facility fails to demonstrate to the Commission that
22        the initial clean coal facility captured and
23        sequestered at least 50% of the total carbon emissions
24        that the facility would otherwise emit or that
25        sequestration of emissions from prior years has
26        failed, resulting in the release of carbon into the

 

 

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1        atmosphere, the owner of the facility must offset
2        excess emissions. Any such carbon offsets must be
3        permanent, additional, verifiable, real, located
4        within the State of Illinois, and legally and
5        practicably enforceable. The costs of any such offsets
6        that are not recoverable shall not exceed $15 million
7        in any given year. No costs of any such purchases of
8        carbon offsets may be recovered from an alternative
9        retail electric supplier or its customers. All carbon
10        offsets purchased for this purpose and any carbon
11        emission credits associated with sequestration of
12        carbon from the facility must be permanently retired.
13        The initial clean coal facility shall not forfeit its
14        designation as a clean coal facility if the facility
15        fails to fully comply with the applicable carbon
16        sequestration requirements in any given year, provided
17        the requisite offsets are purchased. However, the
18        Attorney General, on behalf of the People of the State
19        of Illinois, may specifically enforce the facility's
20        sequestration requirement and the other terms of this
21        contract provision. Compliance with the sequestration
22        requirements and offset purchase requirements that
23        apply to the initial clean coal facility shall be
24        reviewed annually by an independent expert retained by
25        the owner of the initial clean coal facility, with the
26        advance written approval of the Attorney General;

 

 

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1            (vi) The Commission shall, after notice and
2        hearing, revoke the certification of any alternative
3        retail electric supplier that fails to execute a
4        sourcing agreement with the initial clean coal
5        facility as required by item (5) of subsection (d) of
6        this Section. The sourcing agreements with this
7        initial clean coal facility shall be subject to both
8        approval of the initial clean coal facility by the
9        General Assembly and satisfaction of the requirements
10        of item (4) of subsection (d) of Section 1-75 of the
11        Illinois Power Agency Act, and shall be executed within
12        90 days after any such approval by the General
13        Assembly. The Commission shall not accept an
14        application for certification from an alternative
15        retail electric supplier that has lost certification
16        under this subsection (d), or any corporate affiliate
17        thereof, for at least one year from the date of
18        revocation;
19        (6) With respect to an applicant that seeks to serve
20    residential or small commercial retail customers, that the
21    area to be served by the applicant and any limitations it
22    proposes on the number of customers or maximum amount of
23    load to be served meet the provisions of Section 16-115A,
24    provided, that the Commission can extend the time for
25    considering such a certificate request by up to 90 days,
26    and can schedule hearings on such a request;

 

 

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1        (7) That the applicant meets the requirements of
2    subsection (a) of Section 16-128; and
3        (8) That the applicant is not the subject of any
4    lawsuit filed in a court of law or formal complaints filed
5    with a regulatory agency alleging fraud, deception, or
6    unfair marketing practices or other similar allegations
7    identifying the name, case number, and jurisdiction of each
8    such lawsuit or complaint. For the purposes of this item
9    (8), "formal complaints" include only those complaints
10    that seek a binding determination from a state or federal
11    regulatory body;
12        (9) That the applicant shall continue to comply with
13    requirements for certification stated in Section 16-115;
14        (10) That the applicant seeking to service all eligible
15    retail customers shall execute and maintain a license or
16    permit bond issued by a qualifying surety or insurance
17    company authorized to transact business in the State of
18    Illinois in favor of the People of the State of Illinois.
19    The amount of the bond is $600,000, and the bond is
20    conditioned upon the full and faithful performance of all
21    duties and obligations of the applicant as an alternative
22    retail electric supplier and is valid for a period of not
23    less than one year. The cost of the bond shall be paid by
24    the applicant. The applicant shall file a copy of this
25    bond, with a notarized verification page from the issuer,
26    as part of its application for certification under 83 Ill.

 

 

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1    Adm. Code 451.50 and as a condition for continuing
2    compliance with certification requirements for alternative
3    retail electric suppliers under 83 Ill. Adm. Code
4    451.Subpart H; and
5        (11) (8) That the applicant will comply with all other
6    applicable laws and regulations.
7    The Commission may deny with prejudice an application in
8which the applicant repeatedly fails to provide the Commission
9with information sufficient for the Commission to grant the
10application.
11    (d-5) (Blank).
12    (e) A retail customer that owns a cogeneration or
13self-generation facility and that seeks certification only to
14provide electric power and energy from such facility to retail
15customers at separate locations which customers are both (i)
16owned by, or a subsidiary or other corporate affiliate of, such
17applicant and (ii) eligible for delivery services, shall be
18granted a certificate of service authority upon filing an
19application and notifying the Commission that it has entered
20into an agreement with the relevant electric utilities pursuant
21to Section 16-118. Provided, however, that if the retail
22customer owning such cogeneration or self-generation facility
23would not be charged a transition charge due to the exemption
24provided under subsection (f) of Section 16-108 prior to the
25certification, and the retail customers at separate locations
26are taking delivery services in conjunction with purchasing

 

 

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1power and energy from the facility, the retail customer on
2whose premises the facility is located shall not thereafter be
3required to pay transition charges on the power and energy that
4such retail customer takes from the facility.
5    (f) The Commission shall have the authority to promulgate
6rules and regulations to carry out the provisions of this
7Section. On or before May 1, 1999, the Commission shall adopt a
8rule or rules applicable to the certification of those
9alternative retail electric suppliers that seek to serve only
10nonresidential retail customers with maximum electrical
11demands of one megawatt or more which shall provide for (i)
12expedited and streamlined procedures for certification of such
13alternative retail electric suppliers and (ii) specific
14criteria which, if met by any such alternative retail electric
15supplier, shall constitute the demonstration of technical,
16financial and managerial resources and abilities to provide
17service required by subsection (d) (1) of this Section, such as
18a requirement to post a bond or letter of credit, from a
19responsible surety or financial institution, of sufficient
20size for the nature and scope of the services to be provided;
21demonstration of adequate insurance for the scope and nature of
22the services to be provided; and experience in providing
23similar services in other jurisdictions.
24    (g) An alternative retail electric supplier may seek
25confidential treatment for the following information by filing
26an affidavit with the Commission so long as the affidavit meets

 

 

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1the requirements in this subsection (g):
2        (1) the total annual kilowatt-hours delivered and sold
3    by an alternative retail electric supplier to retail
4    customers within each utility service territory and the
5    total annual kilowatt-hours delivered and sold by an
6    alternative retail electric supplier to retail customers
7    in all utility service territories in the preceding
8    calendar year as required by 83 Ill. Adm. Code 451.770;
9        (2) the total peak demand supplied by an alternative
10    retail electric supplier during the previous year in each
11    utility service territory as required by 83 Ill. Adm. Code
12    465.40;
13        (3) a good faith estimate of the amount an alternative
14    retail electric supplier expects to be obliged to pay the
15    utility under single billing tariffs during the next 12
16    months and the amount of any bond or letter of credit used
17    to demonstrate an alternative retail electric supplier's
18    credit worthiness to provide single billing services
19    pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
20    The affidavit must be filed contemporaneously with the
21information for which confidential treatment is sought and must
22clearly state that the affiant seeks confidential treatment
23pursuant to this subsection (g) and the information for which
24confidential treatment is sought must be clearly identified on
25the confidential version of the document filed with the
26Commission. The affidavit must be accompanied by a

 

 

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1"confidential" and a "public" version of the document or
2documents containing the information for which confidential
3treatment is sought.
4    If the alternative retail electric supplier has met the
5affidavit requirements of this subsection (g), then the
6Commission shall afford confidential treatment to the
7information identified in the affidavit for a period of 2 years
8after the date the affidavit is received by the Commission.
9    Nothing in this subsection (g) prevents an alternative
10retail electric supplier from filing a petition with the
11Commission seeking confidential treatment for information
12beyond that identified in this subsection (g) or for
13information contained in other reports or documents filed with
14the Commission.
15    Nothing in this subsection (g) prevents the Commission, on
16its own motion, or any party from filing a formal petition with
17the Commission seeking to reconsider the conferring of
18confidential status on an item of information afforded
19confidential treatment pursuant to this subsection (g).
20    The Commission, on its own motion, may at any time initiate
21a docketed proceeding to investigate the continued
22applicability of this subsection (g) to the information
23contained in items (i), (ii), and (iii) of this subsection (g).
24If, at the end of such investigation, the Commission determines
25that a particular item of information should no longer be
26eligible for the affidavit-based process outlined in this

 

 

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1subsection (g), the Commission may enter an order to remove
2that item from the list of items eligible for the process set
3forth in this subsection (g). Notwithstanding any such order,
4in the event the Commission makes such a determination, nothing
5in this subsection (g) prevents an alternative retail electric
6supplier desiring confidential treatment for such information
7from filing a formal petition with the Commission seeking
8confidential treatment for such information.
9(Source: P.A. 99-332, eff. 8-10-15.)
 
10    (220 ILCS 5/16-115A)
11    Sec. 16-115A. Obligations of alternative retail electric
12suppliers.
13    (a) An alternative retail electric supplier shall:
14        (i) comply with the requirements imposed on public
15    utilities by Sections 8-201 through 8-207, 8-301, 8-505 and
16    8-507 of this Act, to the extent that these Sections have
17    application to the services being offered by the
18    alternative retail electric supplier; and
19        (ii) continue to comply with the requirements for
20    certification stated in subsection (d) of Section 16-115;
21    and .
22        (iii) submit to the Commission and the Office of the
23    Attorney General, on January 1, 2020 and the first day of
24    each quarter thereafter, the rates the alternative retail
25    electric supplier charged to residential customers in the

 

 

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1    prior quarter, including each distinct rate charged and
2    whether the rate was a fixed or variable rate, the basis
3    for the variable rate, and any fees charged in addition to
4    the supply rate, including monthly fees, flat fees, or
5    other service charges.
6    The Commission is authorized to adopt rules to implement
7this subsection.
8    (b) An alternative retail electric supplier shall obtain
9verifiable authorization from a customer, in a form or manner
10approved by the Commission consistent with Section 2EE of the
11Consumer Fraud and Deceptive Business Practices Act, before the
12customer is switched from another supplier.
13    (c) No alternative retail electric supplier, or electric
14utility other than the electric utility in whose service area a
15customer is located, shall (i) enter into or employ any
16arrangements which have the effect of preventing a retail
17customer with a maximum electrical demand of less than one
18megawatt from having access to the services of the electric
19utility in whose service area the customer is located or (ii)
20charge retail customers for such access. This subsection shall
21not be construed to prevent an arms-length agreement between a
22supplier and a retail customer that sets a term of service,
23notice period for terminating service and provisions governing
24early termination through a tariff or contract as allowed by
25Section 16-119.
26    (d) An alternative retail electric supplier that is

 

 

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1certified to serve residential or small commercial retail
2customers shall not:
3        (1) deny service to a customer or group of customers
4    nor establish any differences as to prices, terms,
5    conditions, services, products, facilities, or in any
6    other respect, whereby such denial or differences are based
7    upon race, gender or income.
8        (2) deny service to a customer or group of customers
9    based on locality nor establish any unreasonable
10    difference as to prices, terms, conditions, services,
11    products, or facilities as between localities.
12    (e) An alternative retail electric supplier shall comply
13with the following requirements with respect to the marketing,
14offering and provision of products or services to residential
15and small commercial retail customers:
16        (i) Any marketing materials which make statements
17    concerning prices, terms and conditions of service shall
18    contain information that adequately discloses the prices,
19    terms and conditions of the products or services that the
20    alternative retail electric supplier is offering or
21    selling to the customer. All marketing materials,
22    including electronic marketing materials, that include a
23    price per kilowatt-hour for competitive electricity
24    service shall include the following statement: "(Name of
25    alternative retail electric supplier) is not the same
26    entity as your electric utility delivery company. You are

 

 

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1    not required to enroll with (name of alternative retail
2    electric supplier). For information on comparison rates
3    for utility electric supply service and understanding your
4    electric supply choices, go to the Illinois Commerce
5    Commission's free website at www.pluginillinois.org.". Any
6    alternative retail electric supplier solicitations or
7    materials marketing electric power or energy services to a
8    residential customer that contains a price per
9    kilowatt-hour shall include a Price to Compare reflecting
10    the fully avoidable costs of a typical customer, using a
11    methodology to calculate the Price to Compare that the
12    Commission shall adopt by rule. The Commission shall make
13    the Price to Compare available on the Commission's
14    pluginillinois.org website. The Commission is authorized
15    to adopt emergency rules to implement this paragraph. This
16    paragraph (i) does not apply to materials that do not list
17    a price per kilowatt-hour for competitive electricity
18    services or to billboards.
19        (ii) Before any customer is switched from another
20    supplier, the alternative retail electric supplier shall
21    give the customer written information that adequately
22    discloses, in plain language, the prices, terms and
23    conditions of the products and services being offered and
24    sold to the customer.
25        (iii) An alternative retail electric supplier shall
26    provide documentation to the Commission and to customers

 

 

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1    that substantiates any claims made by the alternative
2    retail electric supplier regarding the technologies and
3    fuel types used to generate the electricity offered or sold
4    to customers.
5        (iv) The alternative retail electric supplier shall
6    provide to the customer (1) itemized billing statements
7    that describe the products and services provided to the
8    customer and their prices, and (2) an additional statement,
9    at least annually, that adequately discloses the average
10    monthly prices, and the terms and conditions, of the
11    products and services sold to the customer.
12        (v) No less than 30 days before a residential
13    customer's variable rate changes, the alternative retail
14    electric supplier shall send a separate written notice to
15    the customer informing the customer of an upcoming rate
16    change if the residential variable rate customer's rate
17    increases by more than 20% from one monthly billing period
18    to the next. This requirement does not apply if the
19    variable rate can be determined based on some combination
20    of: (1) publicly available information, such as an index,
21    and (2) a formula provided by the alternative retail
22    electric supplier in the contract using only publicly
23    available information or for time of use based pricing. A
24    customer shall have the right to choose to receive the
25    notice in electronic or paper form, including an option to
26    receive notice via login through an online account with the

 

 

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1    alternative retail electric supplier.
2        (vi) The alternative retail electric supplier shall
3    send a separate written notice if a residential customer's
4    contract includes a provision that results in a change to
5    the residential customer's rate plan of the upcoming change
6    at least 30 days, but no more than 60 days, before the
7    change. The separate written notice shall conform to the
8    requirements in 83 Ill. Adm. Code 412.165(e). A customer
9    shall have the right to choose to receive the notice in
10    electronic or paper form, including an option to receive
11    notice via login through an online account with the
12    alternative retail electric supplier.
13        (vii) In the case of an automatic renewal of a contract
14    for which the initial term is a fixed price and that
15    changes after the initial term, an alternative retail
16    electric supplier shall provide a written notice to the
17    customer at least 30 days but no more than 60 days before
18    the end of the initial contract term that shall include a
19    side-by-side comparison of the current price and the price
20    for the first month of the new term.
21    For purposes of this subsection (e), "variable" means the
22per-unit charge for electric power and energy service changes
23at any time during the term of the contract but do not change
24more than once per billing period.
25    (f) An alternative retail electric supplier may limit the
26overall size or availability of a service offering by

 

 

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1specifying one or more of the following: a maximum number of
2customers, maximum amount of electric load to be served, time
3period during which the offering will be available, or other
4comparable limitation, but not including the geographic
5locations of customers within the area which the alternative
6retail electric supplier is certificated to serve. The
7alternative retail electric supplier shall file the terms and
8conditions of such service offering including the applicable
9limitations with the Commission prior to making the service
10offering available to customers.
11    (g) Nothing in this Section shall be construed as
12preventing an alternative retail electric supplier, which is an
13affiliate of, or which contracts with, (i) an industry or trade
14organization or association, (ii) a membership organization or
15association that exists for a purpose other than the purchase
16of electricity, or (iii) another organization that meets
17criteria established in a rule adopted by the Commission, from
18offering through the organization or association services at
19prices, terms and conditions that are available solely to the
20members of the organization or association.
21    (h) An alternative retail electric supplier shall maintain
22sufficient managerial resources and abilities to provide the
23service for which it has a certificate of service authority. In
24determining the level of managerial resources and abilities
25that the alternative retail electric supplier shall
26demonstrate, the Commission shall consider, in addition to the

 

 

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1requirements in subsection (d) of Section 16-115, the
2following:
3        (1) complaints to the Commission by consumers
4    regarding the alternative retail electric supplier,
5    including those that reflect on the alternative retail
6    electric supplier's ability to properly manage
7    solicitation and authorization; and
8        (2) the alternative retail electric supplier's
9    involvement in the Commission's consumer complaint
10    process, including the resources the alternative retail
11    electric supplier dedicates to the process and the
12    alternative retail electric supplier's ability to manage
13    the issues raised by complaints and the resolutions of the
14    complaints.
15    The provisions of this subsection (h) apply only to
16alternative retail electric suppliers serving or seeking to
17serve residential or small commercial customers and only to the
18extent those alternative retail electric suppliers provide
19services to residential or small commercial customers, unless
20otherwise noted.
21    For purposes of this subsection (h), "complaint" means an
22objection made to an alternative retail electric supplier by a
23customer as to its charges, facilities, or service, the
24disposal of which requires investigation or analysis.
25"Complaint" includes a customer identifying and asking an
26alternative retail electric supplier to address or resolve a

 

 

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1problem or concern. "Complaint" does not include contact that
2is limited to inquiry or seeking information; however, the
3definition of "complaint" for this purpose shall not be read or
4interpreted to limit in any way the Commission's authority to
5accept and seek resolution of informal complaints or inquiries
6of any description submitted by a residential customer or small
7business customer regarding an alternative retail electric
8supplier.
9    (i) Complaints may be filed with the Commission under this
10Section and Section 10-108 by a customer whose electric supply
11service has been provided by an alternative electric supplier
12in a manner not in compliance with subsection (b), (d), (e), or
13(h) if the customer has first sought resolution of the dispute
14arising from the non-compliant conduct complained of through
15the Commission's informal complaint process. If, after notice
16and hearing, the Commission finds that an alternative retail
17electric supplier has violated subsection (b), (d), (e), or
18(h), then the Commission may, in its discretion, do any one or
19more of the following:
20        (1) require the violating alternative retail electric
21    supplier to refund the customer charges collected in excess
22    of those that would have been charged by the customer's
23    authorized electric provider;
24        (2) require the violating alternative retail electric
25    supplier to pay a fine of $5,000 for each violation;
26        (3) issue a cease and desist order; or

 

 

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1        (4) for a pattern of violations or for intentionally
2    violating a cease and desist order, revoke the violating
3    alternative retail electric supplier's certificate of
4    service authority.
5    (j) All fines shall be deposited into the Public Utilities
6Fund.
7    (k) The Commission shall ensure alternative retail
8electric suppliers have proper training in place to prohibit
9impersonation of a utility. The Commission shall investigate
10complaints of any company or its agents impersonating a
11utility. A company contracting with or that employs a sales
12agent found to be impersonating a utility shall be fined $5,000
13for each incident.
14    As used in this subsection:
15    "Impersonation" means wearing apparel or carrying items
16using the utility name or logo with the intent of misleading
17the customer into believing the agent is acting on behalf of or
18working for the utility.
19    "Company" includes an alternative retail electric supplier
20and any agent, broker, consultant, or other entity hired to
21sell retail electricity services.
22(Source: P.A. 90-561, eff. 12-16-97.)
 
23    (220 ILCS 5/16-115B)
24    Sec. 16-115B. Commission oversight of services provided by
25alternative retail electric suppliers.

 

 

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1    (a) The Commission shall have jurisdiction in accordance
2with the provisions of Article X of this Act to entertain and
3dispose of any complaint against any alternative retail
4electric supplier alleging (i) that the alternative retail
5electric supplier has violated or is in nonconformance with any
6applicable provisions of Section 16-115 through Section
716-115A; (ii) that an alternative retail electric supplier
8serving retail customers having maximum demands of less than
9one megawatt has failed to provide service in accordance with
10the terms of its contract or contracts with such customer or
11customers; (iii) that the alternative retail electric supplier
12has violated or is in non-conformance with the delivery
13services tariff of, or any of its agreements relating to
14delivery services with, the electric utility, municipal
15system, or electric cooperative providing delivery services;
16or (iv) that the alternative retail electric supplier has
17violated or failed to comply with the requirements of Sections
188-201 through 8-207, 8-301, 8-505, or 8-507 of this Act as made
19applicable to alternative retail electric suppliers.
20    (b) In addition to other powers and authority granted it
21under this Act, the Commission is authorized to require an
22alternative retail electric supplier to enter into a compliance
23plan. If the Commission comes into possession of information
24causing it to conclude that an alternative retail electric
25supplier is violating this Act or the Commission's rules, the
26Commission may, after notice and hearing, enter an order

 

 

10100HB3028ham001- 26 -LRB101 07724 RJF 58297 a

1directing the alternative retail electric supplier to
2implement such practices, procedures, oversight, or other
3measures or refrain from such practices, conduct, or activities
4as the Commission finds is necessary or reasonable to ensure
5the alternative retail electric supplier's compliance with the
6Act and the Commission's rules. Failure by an alternative
7retail electric supplier to implement or comply with a
8Commission-ordered compliance plan is a violation of this
9Section. The Commission, in its discretion, may order a
10compliance plan under such circumstances as it considers
11warranted and is not required to order a compliance plan prior
12to taking other enforcement action against an alternative
13retail electric supplier.
14    (c) (b) The Commission shall have authority, after notice
15and hearing held on complaint or on the Commission's own
16motion, to do any one or more of the following:
17        (1) If the Commission finds sufficient evidence of a
18    repeated pattern of conduct or circumstances that is
19    contrary to Section 16-115A or 83 Adm. Ill. Code Part 412
20    and that constitutes a significant likelihood of
21    substantial harm to customers, the public interest, or an
22    adequately functioning market, it may issue an informal
23    notice, without initiating a docketed proceeding, to the
24    alternative retail electric supplier to show cause why an
25    order to cease and desist should not be entered against the
26    alternative retail electric supplier. The Commission's

 

 

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1    informal notice shall clearly set forth the evidence relied
2    upon by the Commission, including, but not limited to, the
3    provisions in subsection (d) of Section 16-115 and
4    subsection (h) of Section 16-115A. The Commission shall
5    allow the alternative retail electric supplier at least 3
6    and no more than 5 business days from the date of the
7    informal notice to file an answer to the satisfaction of
8    the Commission. Failure of the alternative retail electric
9    supplier to answer to the satisfaction of the Commission
10    shall cause an order to cease and desist to be issued
11    immediately by the Commission.
12        (2) Order (1) To order an alternative retail electric
13    supplier to cease and desist, or correct, any violation of
14    or non-conformance with the provisions of Section 16-115 or
15    16-115A. ;
16        (3) Impose (2) To impose financial penalties for
17    violations of or non-conformances with the provisions of
18    Section 16-115 or 16-115A, not to exceed (i) $10,000 per
19    occurrence or (ii) $30,000 per day for those violations or
20    non-conformances which continue after the Commission
21    issues a cease and desist order. ; and
22        (4) Alter (3) To alter, modify, revoke, or suspend the
23    certificate of service authority of an alternative retail
24    electric supplier for substantial or repeated violations
25    of or non-conformances with the provisions of Section
26    16-115 or 16-115A.

 

 

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1    (d) In assessing a penalty against an alternative retail
2electric supplier under any provision of this Article XVI, the
3Commission may consider the following factors, in addition to
4any other factor or consideration that the Commission in its
5discretion considers to bear on the nature or gravity of the
6violation:
7        (1) the nature of the violations found and the
8    alternative retail electric supplier's history of
9    substantiated complaints or adjudicated violations;
10        (2) the alternative retail electric supplier's
11    culpability;
12        (3) existence or strength of compliance and internal
13    monitoring programs;
14        (4) whether the alternative retail electric supplier
15    made a good faith effort to compensate consumers harmed;
16    and
17        (5) any context-appropriate factors that the
18    Commission deems appropriate.
19    (e) All fines shall be deposited into the Public Utilities
20Fund.
21    (f) The Commission shall conduct at least one mandatory
22compliance education workshop annually for alternative retail
23electric suppliers that service retail and small commercial
24retail customers in an electric utility's service area
25regarding statutory and rule requirements, consumer complaint
26statistics, and any other information determined necessary by

 

 

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1the Commission. Completion of the Commission's compliance
2workshop by an alternative retail electric supplier, as
3determined by the Commission, must be in person and is a
4condition for continuing compliance with certification
5requirements for an alternative retail electric supplier under
683 Ill. Adm. Code 451.Subpart H.
7(Source: P.A. 90-561, eff. 12-16-97.)
 
8    (220 ILCS 5/16-118)
9    Sec. 16-118. Services provided by electric utilities to
10alternative retail electric suppliers.
11    (a) It is in the best interest of Illinois energy consumers
12to promote fair and open competition in the provision of
13electric power and energy and to prevent anticompetitive
14practices in the provision of electric power and energy.
15Therefore, to the extent an electric utility provides electric
16power and energy or delivery services to alternative retail
17electric suppliers and such services are not subject to the
18jurisdiction of the Federal Energy Regulatory Commission, and
19are not competitive services, they shall be provided through
20tariffs that are filed with the Commission, pursuant to Article
21IX of this Act. Each electric utility shall permit alternative
22retail electric suppliers to interconnect facilities to those
23owned by the utility provided they meet established standards
24for such interconnection, and may provide standby or other
25services to alternative retail electric suppliers. The

 

 

10100HB3028ham001- 30 -LRB101 07724 RJF 58297 a

1alternative retail electric supplier shall sign a contract
2setting forth the prices, terms and conditions for
3interconnection with the electric utility and the prices, terms
4and conditions for services provided by the electric utility to
5the alternative retail electric supplier in connection with the
6delivery by the electric utility of electric power and energy
7supplied by the alternative retail electric supplier.
8    (b) An electric utility shall file a tariff pursuant to
9Article IX of the Act that would allow alternative retail
10electric suppliers or electric utilities other than the
11electric utility in whose service area retail customers are
12located to issue single bills to the retail customers for both
13the services provided by such alternative retail electric
14supplier or other electric utility and the delivery services
15provided by the electric utility to such customers. The tariff
16filed pursuant to this subsection shall (i) require partial
17payments made by retail customers to be credited first to the
18electric utility's tariffed services, (ii) impose commercially
19reasonable terms with respect to credit and collection,
20including requests for deposits, (iii) retain the electric
21utility's right to disconnect the retail customers, if it does
22not receive payment for its tariffed services, in the same
23manner that it would be permitted to if it had billed for the
24services itself, and (iv) require the alternative retail
25electric supplier or other electric utility that elects the
26billing option provided by this tariff to include on each bill

 

 

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1to retail customers an identification of the electric utility
2providing the delivery services and a listing of the charges
3applicable to such services. The tariff filed pursuant to this
4subsection may also include other just and reasonable terms and
5conditions. In addition, an electric utility, an alternative
6retail electric supplier or electric utility other than the
7electric utility in whose service area the customer is located,
8and a customer served by such alternative retail electric
9supplier or other electric utility, may enter into an agreement
10pursuant to which the alternative retail electric supplier or
11other electric utility pays the charges specified in Section
1216-108, or other customer-related charges, including taxes and
13fees, in lieu of such charges being recovered by the electric
14utility directly from the customer.
15    (c) An electric utility with more than 100,000 customers
16shall file a tariff pursuant to Article IX of this Act that
17provides alternative retail electric suppliers, and electric
18utilities other than the electric utility in whose service area
19the retail customers are located, with the option to have the
20electric utility purchase their receivables for power and
21energy service provided to residential retail customers and
22non-residential retail customers with a non-coincident peak
23demand of less than 400 kilowatts. Receivables for power and
24energy service of alternative retail electric suppliers or
25electric utilities other than the electric utility in whose
26service area the retail customers are located shall be

 

 

10100HB3028ham001- 32 -LRB101 07724 RJF 58297 a

1purchased by the electric utility at a just and reasonable
2discount rate to be reviewed and approved by the Commission
3after notice and hearing. The discount rate shall be based on
4the electric utility's historical bad debt and any reasonable
5start-up costs and administrative costs associated with the
6electric utility's purchase of receivables. The discounted
7rate for purchase of receivables shall be included in the
8tariff filed pursuant to this subsection (c). The discount rate
9filed pursuant to this subsection (c) shall be subject to
10periodic Commission review. The electric utility retains the
11right to impose the same terms on retail customers with respect
12to credit and collection, including requests for deposits, and
13retain the electric utility's right to disconnect the retail
14customers, if it does not receive payment for its tariffed
15services or purchased receivables, in the same manner that it
16would be permitted to if the retail customers purchased power
17and energy from the electric utility. The tariff filed pursuant
18to this subsection (c) shall permit the electric utility to
19recover from retail customers any uncollected receivables that
20may arise as a result of the purchase of receivables under this
21subsection (c), may also include other just and reasonable
22terms and conditions, and shall provide for the prudently
23incurred costs associated with the provision of this service
24pursuant to this subsection (c). Nothing in this subsection (c)
25permits the double recovery of bad debt expenses from
26customers.

 

 

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1    (d) An electric utility with more than 100,000 customers
2shall file a tariff pursuant to Article IX of this Act that
3would provide alternative retail electric suppliers or
4electric utilities other than the electric utility in whose
5service area retail customers are located with the option to
6have the electric utility produce and provide single bills to
7the retail customers for both the electric power and energy
8service provided by the alternative retail electric supplier or
9other electric utility and the delivery services provided by
10the electric utility to the customers. The tariffs filed
11pursuant to this subsection shall require the electric utility
12to collect and remit customer payments for electric power and
13energy service provided by alternative retail electric
14suppliers or electric utilities other than the electric utility
15in whose service area retail customers are located. The tariff
16filed pursuant to this subsection shall require the electric
17utility to include on each bill to retail customers an
18identification of the alternative retail electric supplier or
19other electric utility that elects the billing option. The
20tariff filed pursuant to this subsection (d) may also include
21other just and reasonable terms and conditions and shall
22provide for the recovery of prudently incurred costs associated
23with the provision of service pursuant to this subsection (d).
24The costs associated with the provision of service pursuant to
25this Section shall be subject to periodic Commission review.
26    (e) An electric utility with more than 100,000 customers in

 

 

10100HB3028ham001- 34 -LRB101 07724 RJF 58297 a

1this State shall file a tariff pursuant to Article IX of this
2Act that provides alternative retail electric suppliers, and
3electric utilities other than the electric utility in whose
4service area the retail customers are located, with the option
5to have the electric utility purchase 2 billing cycles worth of
6uncollectible receivables for power and energy service
7provided to residential retail customers and to
8non-residential retail customers with a non-coincident peak
9demand of less than 400 kilowatts upon returning that customer
10to that electric utility for delivery and energy service after
11that alternative retail electric supplier, or an electric
12utility other than the electric utility in whose service area
13the retail customer is located, has made reasonable collection
14efforts on that account. Uncollectible receivables for power
15and energy service of alternative retail electric suppliers, or
16electric utilities other than the electric utility in whose
17service area the retail customers are located, shall be
18purchased by the electric utility at a just and reasonable
19discount rate to be reviewed and approved by the Commission,
20after notice and hearing. The discount rate shall be based on
21the electric utility's historical bad debt for receivables that
22are outstanding for a similar length of time and any reasonable
23start-up costs and administrative costs associated with the
24electric utility's purchase of receivables. The discounted
25rate for purchase of uncollectible receivables shall be
26included in the tariff filed pursuant to this subsection (e).

 

 

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1The electric utility retains the right to impose the same terms
2on these retail customers with respect to credit and
3collection, including requests for deposits, and retains the
4right to disconnect these retail customers, if it does not
5receive payment for its tariffed services or purchased
6receivables, in the same manner that it would be permitted to
7if the retail customers had purchased power and energy from the
8electric utility. The tariff filed pursuant to this subsection
9(e) shall permit the electric utility to recover from retail
10customers any uncollectable receivables that may arise as a
11result of the purchase of uncollectible receivables under this
12subsection (e), may also include other just and reasonable
13terms and conditions, and shall provide for the prudently
14incurred costs associated with the provision of this service
15pursuant to this subsection (e). Nothing in this subsection (e)
16permits the double recovery of utility bad debt expenses from
17customers. The electric utility may file a joint tariff for
18this subsection (e) and subsection (c) of this Section.
19    (f) Every alternative retail electric supplier or electric
20utility other than the electric utility in whose service area
21retail customers are located that issue single bills to the
22retail customers for the services provided by such alternative
23retail electric supplier or other electric utility and the
24delivery services provided by the electric utility to such
25customers shall include on the single bills issued to
26residential customers the current utility supply charge that

 

 

10100HB3028ham001- 36 -LRB101 07724 RJF 58297 a

1would apply to the customer for the billing period if the
2customer obtained supply from the utility, including all fixed
3or monthly supply charges and other charges, credits, or rates
4that are part of the electric supply price.
5    (g) Every electric utility that provides delivery and
6supply services shall include on each bill to residential
7customers who obtain supply from an alternative retail electric
8supplier the electric utility's total supply charge that would
9apply to the customer for the billing period if the customer
10obtained supply from the utility, including all fixed or
11monthly supply charges and other charges, credits, or rates
12that are part of the electric supply price.
13(Source: P.A. 95-700, eff. 11-9-07.)
 
14    (220 ILCS 5/16-119)
15    Sec. 16-119. Switching suppliers.
16    (a) An electric utility or an alternative retail electric
17supplier may establish a term of service, notice period for
18terminating service and provisions governing early termination
19through a tariff or contract. A customer may change its
20supplier subject to tariff or contract terms and conditions.
21Any notice provisions; or provision for a fee, charge or
22penalty with early termination of a contract; shall be
23conspicuously disclosed in any tariff or contract. Any tariff
24filed or contract renewed or entered into on and after the
25effective date of this amendatory Act of the 99th General

 

 

10100HB3028ham001- 37 -LRB101 07724 RJF 58297 a

1Assembly that contains an early termination clause shall
2disclose the amount of the early termination fee or penalty,
3provided that any early termination fee or penalty shall not
4exceed $50 total for residential customers and $150 for small
5commercial retail customers as defined in Section 16-102 of
6this Act, regardless of whether or not the tariff or contract
7is a multiyear tariff or contract. A customer shall remain
8responsible for any unpaid charges owed to an electric utility
9or alternative retail electric supplier at the time it switches
10to another provider.
11    The caps on early termination fees and penalties under this
12Section shall apply only to early termination fees and
13penalties for early termination of electric service. The caps
14shall not apply to charges or fees for devices, equipment, or
15other services provided by the utility or alternative retail
16electric supplier.
17    (b) Notwithstanding the requirements of subsection (a),
18each electric utility shall, within 90 days after the effective
19date of this amendatory Act of the 101st General Assembly,
20modify its tariff carrying out this Section to reflect the
21following:
22        (1) No customer who is receiving Low-Income Home Energy
23    Assistance Program funds may be switched to an alternative
24    retail electric supplier except subject to a government
25    aggregation program or to an order entered by the
26    Commission that approves a Low-Income Home Energy

 

 

10100HB3028ham001- 38 -LRB101 07724 RJF 58297 a

1    Assistance Program savings guarantee plan for alternative
2    retail electric supplier offerings.
3        (2) If an alternative retail electric supplier
4    attempts to enroll a Low-Income Home Energy Assistance
5    Program customer other than through a government
6    aggregation program or an order entered by the Commission
7    that approves a Low-Income Energy Assistance Program
8    savings guarantee plan for alternative retail electric
9    supplier offerings, the electric utility shall deny the
10    supplier switch and inform the alternative retail electric
11    supplier of the reason.
12(Source: P.A. 99-103, eff. 7-22-15; 99-107, eff. 7-22-15.)
 
13    (220 ILCS 5/19-115)
14    Sec. 19-115. Obligations of alternative gas suppliers.
15    (a) The provisions of this Section shall apply only to
16alternative gas suppliers serving or seeking to serve
17residential or small commercial customers and only to the
18extent such alternative gas suppliers provide services to
19residential or small commercial customers.
20    (b) An alternative gas supplier shall:
21        (1) comply with the requirements imposed on public
22    utilities by Sections 8-201 through 8-207, 8-301, 8-505 and
23    8-507 of this Act, to the extent that these Sections have
24    application to the services being offered by the
25    alternative gas supplier;

 

 

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1        (2) continue to comply with the requirements for
2    certification stated in Section 19-110;
3        (3) comply with complaint procedures established by
4    the Commission;
5        (4) except as provided in subsection (h) of this
6    Section, file with the Chief Clerk of the Commission,
7    within 20 business days after the effective date of this
8    amendatory Act of the 95th General Assembly, a copy of bill
9    formats, standard customer contract and customer complaint
10    and resolution procedures, and the name and telephone
11    number of the company representative whom Commission
12    employees may contact to resolve customer complaints and
13    other matters. In the case of a gas supplier that engages
14    in door-to-door solicitation, the company shall file with
15    the Commission the consumer information disclosure
16    required by item (3) of subsection (c) of Section 2DDD of
17    the Consumer Fraud and Deceptive Business Practices Act and
18    shall file updated information within 10 business days
19    after changes in any of the documents or information
20    required to be filed by this item (4); and
21        (5) maintain a customer call center where customers can
22    reach a representative and receive current information. At
23    least once every 6 months, each alternative gas supplier
24    shall provide written information to customers explaining
25    how to contact the call center. The average answer time for
26    calls placed to the call center shall not exceed 60 seconds

 

 

10100HB3028ham001- 40 -LRB101 07724 RJF 58297 a

1    where a representative or automated system is ready to
2    render assistance and/or accept information to process
3    calls. The abandon rate for calls placed to the call center
4    shall not exceed 10%. Each alternative gas supplier shall
5    maintain records of the call center's telephone answer time
6    performance and abandon call rate. These records shall be
7    kept for a minimum of 2 years and shall be made available
8    to Commission personnel upon request. In the event that
9    answer times and/or abandon rates exceed the limits
10    established above, the reporting alternative gas supplier
11    may provide the Commission or its personnel with
12    explanatory details. At a minimum, these records shall
13    contain the following information in monthly increments:
14            (A) total number of calls received;
15            (B) number of calls answered;
16            (C) average answer time;
17            (D) number of abandoned calls; and
18            (E) abandon call rate; and .
19        (6) submit to the Commission and the Office of the
20    Attorney General, on January 1, 2020 and the first day of
21    each quarter thereafter, the rates the alternative gas
22    supplier charged to residential customers in the prior
23    quarter, including each distinct rate charged and whether
24    the rate was a fixed or variable rate, the basis for the
25    variable rate, and any fees charged in addition to the
26    supply rate, including monthly fees, flat fees, or other

 

 

10100HB3028ham001- 41 -LRB101 07724 RJF 58297 a

1    service charges; the Commission is authorized to adopt
2    rules to implement this paragraph (6).
3    Alternative gas suppliers that do not have electronic
4answering capability that meets these requirements shall
5notify the Manager of the Commission's Consumer Services
6Division or its successor within 30 days following the
7effective date of this amendatory Act of the 95th General
8Assembly and work with Staff to develop individualized
9reporting requirements as to the call volume and responsiveness
10of the call center.
11    On or before March 1 of every year, each entity shall file
12a report with the Chief Clerk of the Commission for the
13preceding calendar year on its answer time and abandon call
14rate for its call center. A copy of the report shall be sent to
15the Manager of the Consumer Services Division or its successor.
16    (c) An alternative gas supplier shall not submit or execute
17a change in a customer's selection of a natural gas provider
18unless and until (i) the alternative gas supplier first
19discloses all material terms and conditions of the offer to the
20customer; (ii) the alternative gas supplier has obtained the
21customer's express agreement to accept the offer after the
22disclosure of all material terms and conditions of the offer;
23and (iii) the alternative gas supplier has confirmed the
24request for a change in accordance with one of the following
25procedures:
26        (1) The alternative gas supplier has obtained the

 

 

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1    customer's written or electronically signed authorization
2    in a form that meets the following requirements:
3            (A) An alternative gas supplier shall obtain any
4        necessary written or electronically signed
5        authorization from a customer for a change in natural
6        gas service by using a letter of agency as specified in
7        this Section. Any letter of agency that does not
8        conform with this Section is invalid.
9            (B) The letter of agency shall be a separate
10        document (or an easily separable document containing
11        only the authorization language described in item (E)
12        of this paragraph (1)) whose sole purpose is to
13        authorize a natural gas provider change. The letter of
14        agency must be signed and dated by the customer
15        requesting the natural gas provider change.
16            (C) The letter of agency shall not be combined with
17        inducements of any kind on the same document.
18            (D) Notwithstanding items (A) and (B) of this
19        paragraph (1), the letter of agency may be combined
20        with checks that contain only the required letter of
21        agency language prescribed in item (E) of this
22        paragraph (1) and the necessary information to make the
23        check a negotiable instrument. The letter of agency
24        check shall not contain any promotional language or
25        material. The letter of agency check shall contain in
26        easily readable, bold face type on the face of the

 

 

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1        check a notice that the consumer is authorizing a
2        natural gas provider change by signing the check. The
3        letter of agency language also shall be placed near the
4        signature line on the back of the check.
5            (E) At a minimum, the letter of agency must be
6        printed with a print of sufficient size to be clearly
7        legible and must contain clear and unambiguous
8        language that confirms:
9                (i) the customer's billing name and address;
10                (ii) the decision to change the natural gas
11            provider from the current provider to the
12            prospective alternative gas supplier;
13                (iii) the terms, conditions, and nature of the
14            service to be provided to the customer, including,
15            but not limited to, the rates for the service
16            contracted for by the customer; and
17                (iv) that the customer understands that any
18            natural gas provider selection the customer
19            chooses may involve a charge to the customer for
20            changing the customer's natural gas provider.
21            (F) Letters of agency shall not suggest or require
22        that a customer take some action in order to retain the
23        customer's current natural gas provider.
24            (G) If any portion of a letter of agency is
25        translated into another language, then all portions of
26        the letter of agency must be translated into that

 

 

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1        language.
2        (2) An appropriately qualified independent third party
3    has obtained, in accordance with the procedures set forth
4    in this paragraph (2), the customer's oral authorization to
5    change natural gas providers that confirms and includes
6    appropriate verification data. The independent third party
7    must (i) not be owned, managed, controlled, or directed by
8    the alternative gas supplier or the alternative gas
9    supplier's marketing agent; (ii) not have any financial
10    incentive to confirm provider change requests for the
11    alternative gas supplier or the alternative gas supplier's
12    marketing agent; and (iii) operate in a location physically
13    separate from the alternative gas supplier or the
14    alternative gas supplier's marketing agent. Automated
15    third-party verification systems and 3-way conference
16    calls may be used for verification purposes so long as the
17    other requirements of this paragraph (2) are satisfied. An
18    alternative gas supplier or alternative gas supplier's
19    sales representative initiating a 3-way conference call or
20    a call through an automated verification system must drop
21    off the call once the 3-way connection has been
22    established. All third-party verification methods shall
23    elicit, at a minimum, the following information:
24            (A) the identity of the customer;
25            (B) confirmation that the person on the call is
26        authorized to make the provider change;

 

 

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1            (C) confirmation that the person on the call wants
2        to make the provider change;
3            (D) the names of the providers affected by the
4        change;
5            (E) the service address of the service to be
6        switched; and
7            (F) the price of the service to be provided and the
8        material terms and conditions of the service being
9        offered, including whether any early termination fees
10        apply.
11        Third-party verifiers may not market the alternative
12    gas supplier's services by providing additional
13    information. All third-party verifications shall be
14    conducted in the same language that was used in the
15    underlying sales transaction and shall be recorded in their
16    entirety. Submitting alternative gas suppliers shall
17    maintain and preserve audio records of verification of
18    customer authorization for a minimum period of 2 years
19    after obtaining the verification. Automated systems must
20    provide customers with an option to speak with a live
21    person at any time during the call.
22        (3) The alternative gas supplier has obtained the
23    customer's authorization via an automated verification
24    system to change natural gas service via telephone. An
25    automated verification system is an electronic system
26    that, through pre-recorded prompts, elicits voice

 

 

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1    responses, touchtone responses, or both, from the customer
2    and records both the prompts and the customer's responses.
3    Such authorization must elicit the information in
4    paragraph (2)(A) through (F) of this subsection (c).
5    Alternative gas suppliers electing to confirm sales
6    electronically through an automated verification system
7    shall establish one or more toll-free telephone numbers
8    exclusively for that purpose. Calls to the number or
9    numbers shall connect a customer to a voice response unit,
10    or similar mechanism, that makes a date-stamped,
11    time-stamped recording of the required information
12    regarding the alternative gas supplier change.
13        The alternative gas supplier shall not use such
14    electronic authorization systems to market its services.
15        (4) When a consumer initiates the call to the
16    prospective alternative gas supplier, in order to enroll
17    the consumer as a customer, the prospective alternative gas
18    supplier must, with the consent of the customer, make a
19    date-stamped, time-stamped audio recording that elicits,
20    at a minimum, the following information:
21            (A) the identity of the customer;
22            (B) confirmation that the person on the call is
23        authorized to make the provider change;
24            (C) confirmation that the person on the call wants
25        to make the provider change;
26            (D) the names of the providers affected by the

 

 

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1        change;
2            (E) the service address of the service to be
3        switched; and
4            (F) the price of the service to be supplied and the
5        material terms and conditions of the service being
6        offered, including whether any early termination fees
7        apply.
8        Submitting alternative gas suppliers shall maintain
9    and preserve the audio records containing the information
10    set forth above for a minimum period of 2 years.
11        (5) In the event that a customer enrolls for service
12    from an alternative gas supplier via an Internet website,
13    the alternative gas supplier shall obtain an
14    electronically signed letter of agency in accordance with
15    paragraph (1) of this subsection (c) and any customer
16    information shall be protected in accordance with all
17    applicable statutes and regulations. In addition, an
18    alternative gas supplier shall provide the following when
19    marketing via an Internet website:
20            (A) The Internet enrollment website shall, at a
21        minimum, include:
22                (i) a copy of the alternative gas supplier's
23            customer contract that clearly and conspicuously
24            discloses all terms and conditions; and
25                (ii) a conspicuous prompt for the customer to
26            print or save a copy of the contract.

 

 

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1            (B) Any electronic version of the contract shall be
2        identified by version number, in order to ensure the
3        ability to verify the particular contract to which the
4        customer assents.
5            (C) Throughout the duration of the alternative gas
6        supplier's contract with a customer, the alternative
7        gas supplier shall retain and, within 3 business days
8        of the customer's request, provide to the customer an
9        e-mail, paper, or facsimile of the terms and conditions
10        of the numbered contract version to which the customer
11        assents.
12            (D) The alternative gas supplier shall provide a
13        mechanism by which both the submission and receipt of
14        the electronic letter of agency are recorded by time
15        and date.
16            (E) After the customer completes the electronic
17        letter of agency, the alternative gas supplier shall
18        disclose conspicuously through its website that the
19        customer has been enrolled, and the alternative gas
20        supplier shall provide the customer an enrollment
21        confirmation number.
22        (6) When a customer is solicited in person by the
23    alternative gas supplier's sales agent, the alternative
24    gas supplier may only obtain the customer's authorization
25    to change natural gas service through the method provided
26    for in paragraph (2) of this subsection (c).

 

 

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1    Alternative gas suppliers must be in compliance with this
2subsection (c) within 90 days after the effective date of this
3amendatory Act of the 95th General Assembly.
4    Notwithstanding the requirements under this subsection
5(c), each natural gas utility shall, within 90 days after the
6effective date of this amendatory Act of the 101st General
7Assembly, modify its tariff carrying out this Section to
8reflect the following:
9        (i) No customer who is receiving Low-Income Home Energy
10    Assistance Program funds may be switched to an alternative
11    gas supplier except subject to government aggregation
12    programs or to an order entered by the Commission that
13    approves a Low-Income Home Energy Assistance savings
14    guarantee plan for alternative gas supplier offerings.
15        (ii) If an alternative gas supplier attempts to enroll
16    a Low-Income Home Energy Assistance Program customer other
17    than through a government aggregation program or an order
18    entered by the Commission that approves a Low-Income Home
19    Energy Assistance Program savings guarantee plan for
20    alternative gas supplier offerings, the natural gas
21    utility shall deny the supplier switch and inform the
22    alternative gas supplier of the reason.
23    (d) Complaints may be filed with the Commission under this
24Section by a customer whose natural gas service has been
25provided by an alternative gas supplier in a manner not in
26compliance with subsection (c) of this Section. If, after

 

 

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1notice and hearing, the Commission finds that an alternative
2gas supplier has violated subsection (c), then the Commission
3may in its discretion do any one or more of the following:
4        (1) Require the violating alternative gas supplier to
5    refund the customer charges collected in excess of those
6    that would have been charged by the customer's authorized
7    natural gas provider.
8        (2) Require the violating alternative gas supplier to
9    pay to the customer's authorized natural gas provider the
10    amount the authorized natural gas provider would have
11    collected for natural gas service. The Commission is
12    authorized to reduce this payment by any amount already
13    paid by the violating alternative gas supplier to the
14    customer's authorized natural gas provider.
15        (3) Require the violating alternative gas supplier to
16    pay a fine of up to $1,000 into the Public Utility Fund for
17    each repeated and intentional violation of this Section.
18        (4) Issue a cease and desist order.
19        (5) For a pattern of violation of this Section or for
20    intentionally violating a cease and desist order, revoke
21    the violating alternative gas supplier's certificate of
22    service authority.
23    (e) No alternative gas supplier shall:
24        (1) enter into or employ any arrangements which have
25    the effect of preventing any customer from having access to
26    the services of the gas utility in whose service area the

 

 

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1    customer is located;
2        (2) charge customers for such access;
3        (3) bill for goods or services not authorized by the
4    customer; or
5        (4) bill for a disputed amount where the alternative
6    gas supplier has been provided notice of such dispute. The
7    supplier shall attempt to resolve a dispute with the
8    customer. When the dispute is not resolved to the
9    customer's satisfaction, the supplier shall inform the
10    customer of the right to file an informal complaint with
11    the Commission and provide contact information. While the
12    pending dispute is active at the Commission, an alternative
13    gas supplier may bill only for the undisputed amount until
14    the Commission has taken final action on the complaint.
15    (f) An alternative gas supplier that is certified to serve
16residential or small commercial customers shall not:
17        (1) deny service to a customer or group of customers
18    nor establish any differences as to prices, terms,
19    conditions, services, products, facilities, or in any
20    other respect, whereby such denial or differences are based
21    upon race, gender, or income;
22        (2) deny service based on locality, nor establish any
23    unreasonable difference as to prices, terms, conditions,
24    services, products, or facilities as between localities;
25        (3) include in any agreement a provision that obligates
26    a customer to the terms of the agreement if the customer

 

 

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1    (i) moves outside the State of Illinois; (ii) moves to a
2    location without a transportation service program; or
3    (iii) moves to a location where the customer will not
4    require natural gas service, provided that nothing in this
5    subsection precludes an alternative gas supplier from
6    taking any action otherwise available to it to collect a
7    debt that arises out of service provided to the customer
8    before the customer moved; or
9        (4) assign the agreement to any alternative natural gas
10    supplier, unless:
11            (A) the supplier is an alternative gas supplier
12        certified by the Commission;
13            (B) the rates, terms, and conditions of the
14        agreement being assigned do not change during the
15        remainder of the time covered by the agreement;
16            (C) the customer is given no less than 30 days
17        prior written notice of the assignment and contact
18        information for the new supplier; and
19            (D) the supplier assigning the contract provides
20        contact information that a customer can use to resolve
21        a dispute.
22    (g) An alternative gas supplier shall comply with the
23following requirements with respect to the marketing,
24offering, and provision of products or services:
25        (1) Any marketing materials which make statements
26    concerning prices, terms, and conditions of service shall

 

 

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1    contain information that adequately discloses the prices,
2    terms and conditions of the products or services.
3        (2) Before any customer is switched from another
4    supplier, the alternative gas supplier shall give the
5    customer written information that clearly and
6    conspicuously discloses, in plain language, the prices,
7    terms, and conditions of the products and services being
8    offered and sold to the customer. Nothing in this paragraph
9    (2) may be read to relieve an alternative gas supplier from
10    the duties imposed on it by item (3) of subsection (c) of
11    Section 2DDD of the Consumer Fraud and Deceptive Business
12    Practices Act.
13        (3) The alternative gas supplier shall provide to the
14    customer:
15            (A) accurate, timely, and itemized billing
16        statements that describe the products and services
17        provided to the customer and their prices and that
18        specify the gas consumption amount and any service
19        charges and taxes; provided that this item (g)(3)(A)
20        does not apply to small commercial customers;
21            (B) billing statements that clearly and
22        conspicuously discloses the name and contact
23        information for the alternative gas supplier;
24            (C) an additional statement, at least annually,
25        that adequately discloses the average monthly prices,
26        and the terms and conditions, of the products and

 

 

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1        services sold to the customer; provided that this item
2        (g)(3)(C) does not apply to small commercial
3        customers;
4            (D) refunds of any deposits with interest within 30
5        days after the date that the customer changes gas
6        suppliers or discontinues service if the customer has
7        satisfied all of his or her outstanding financial
8        obligations to the alternative gas supplier at an
9        interest rate set by the Commission which shall be the
10        same as that required of gas utilities; and
11            (E) refunds, in a timely fashion, of all undisputed
12        overpayments upon the oral or written request of the
13        customer.
14        (4) An alternative gas supplier and its sales agents
15    shall refrain from any direct marketing or soliciting to
16    consumers on the gas utility's "Do Not Contact List", which
17    the alternative gas supplier shall obtain on the 15th
18    calendar day of the month from the gas utility in whose
19    service area the consumer is provided with gas service. If
20    the 15th calendar day is a non-business day, then the
21    alternative gas supplier shall obtain the list on the next
22    business day following the 15th calendar day of that month.
23        (5) Early Termination.
24            (A) Any agreement that contains an early
25        termination clause shall disclose the amount of the
26        early termination fee, provided that any early

 

 

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1        termination fee or penalty shall not exceed $50 total,
2        regardless of whether or not the agreement is a
3        multiyear agreement.
4            (B) In any agreement that contains an early
5        termination clause, an alternative gas supplier shall
6        provide the customer the opportunity to terminate the
7        agreement without any termination fee or penalty
8        within 10 business days after the date of the first
9        bill issued to the customer for products or services
10        provided by the alternative gas supplier. The
11        agreement shall disclose the opportunity and provide a
12        toll-free phone number that the customer may call in
13        order to terminate the agreement.
14        (6) Within 2 business days after electronic receipt of
15    a customer switch from the alternative gas supplier and
16    confirmation of eligibility, the gas utility shall provide
17    the customer written notice confirming the switch. The gas
18    utility shall not switch the service until 10 business days
19    after the date on the notice to the customer.
20        (7) The alternative gas supplier shall provide each
21    customer the opportunity to rescind its agreement without
22    penalty within 10 business days after the date on the gas
23    utility notice to the customer. The alternative gas
24    supplier shall disclose all of the following:
25            (A) that the gas utility shall send a notice
26        confirming the switch;

 

 

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1            (B) that from the date the utility issues the
2        notice confirming the switch, the customer shall have
3        10 business days to rescind the switch without penalty;
4            (C) that the customer shall contact the gas utility
5        or the alternative gas supplier to rescind the switch;
6        and
7            (D) the contact information for the gas utility.
8        The alternative gas supplier disclosure shall be
9    included in its sales solicitations, contracts, and all
10    applicable sales verification scripts.
11    (h) An alternative gas supplier may limit the overall size
12or availability of a service offering by specifying one or more
13of the following:
14        (1) a maximum number of customers and maximum amount of
15    gas load to be served;
16        (2) time period during which the offering will be
17    available; or
18        (3) other comparable limitation, but not including the
19    geographic locations of customers within the area which the
20    alternative gas supplier is certificated to serve.
21    The alternative gas supplier shall file the terms and
22conditions of such service offering including the applicable
23limitations with the Commission prior to making the service
24offering available to customers.
25    (i) Nothing in this Section shall be construed as
26preventing an alternative gas supplier that is an affiliate of,

 

 

10100HB3028ham001- 57 -LRB101 07724 RJF 58297 a

1or which contracts with, (i) an industry or trade organization
2or association, (ii) a membership organization or association
3that exists for a purpose other than the purchase of gas, or
4(iii) another organization that meets criteria established in a
5rule adopted by the Commission from offering through the
6organization or association services at prices, terms and
7conditions that are available solely to the members of the
8organization or association.
9    (j) The Commission shall ensure alternative gas suppliers
10have proper training in place to prohibit impersonation of a
11utility. The Commission shall investigate complaints of any
12company or its agents impersonating a utility. A company
13contracting with or that employs a sales agent found to be
14impersonating a utility shall be fined $5,000 for each
15incident.
16    As used in this subsection:
17    "Impersonation" means wearing apparel or carrying items
18using the utility name or logo with the intent of misleading
19the customer into believing the agent is acting on behalf of or
20working for the utility.
21    "Company" includes an alternative gas supplier and any
22agent, broker, consultant, or other entity hired to sell
23natural gas services.
24(Source: P.A. 95-1051, eff. 4-10-09.)
 
25    (220 ILCS 5/19-135)

 

 

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1    Sec. 19-135. Single billing.
2    (a) It is the intent of the General Assembly that in any
3service area where customers are able to choose their natural
4gas supplier, a single billing option shall be offered to
5customers for both the services provided by the alternative gas
6supplier and the delivery services provided by the gas utility.
7A gas utility shall file a tariff pursuant to Article IX of
8this Act that allows alternative gas suppliers to issue single
9bills to residential and small commercial customers for both
10the services provided by the alternative gas supplier and the
11delivery services provided by the gas utility to customers;
12provided that if a form of single billing is being offered in a
13gas utility's service area on the effective date of this
14amendatory Act of the 92nd General Assembly, that form of
15single billing shall remain in effect unless and until
16otherwise ordered by the Commission. Every alternative gas
17supplier that issues a single bill for delivery and supply
18shall include on the single bill issued to a residential
19customer the current utility supply charge that would apply to
20the customer for the billing period if the customer obtained
21supply from the utility, including all fixed or monthly supply
22charges and other charges, credits, or rates that are part of
23the gas supply price.
24    (b) Every gas utility that offers supply choice and
25provides delivery and alternative gas supply service on a
26single bill to its residential customers shall include on the

 

 

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1bill of each residential customer who purchases supply services
2from an alternative gas supplier the gas utility's total supply
3charge for the billing period that would apply to the customer
4for the billing period if the customer obtained supply from the
5utility, including all fixed or monthly supply charges and
6other charges, credits, or rates that are part of the gas
7supply price.
8(Source: P.A. 92-852, eff. 8-26-02.)
 
9    (220 ILCS 5/20-110)
10    Sec. 20-110. Office of Retail Market Development. Within 90
11days after the effective date of this amendatory Act of the
1294th General Assembly, subject to appropriation, the
13Commission shall establish an Office of Retail Market
14Development and employ on its staff a Director of Retail Market
15Development to oversee the Office. The Director shall have
16authority to employ or otherwise retain at least 2
17professionals dedicated to the task of actively seeking out
18ways to promote retail competition in Illinois to benefit all
19Illinois consumers.
20    The Office shall actively seek input from all interested
21parties and shall develop a thorough understanding and critical
22analyses of the tools and techniques used to promote retail
23competition in other states.
24    The Office shall monitor existing competitive conditions
25in Illinois, identify barriers to retail competition for all

 

 

10100HB3028ham001- 60 -LRB101 07724 RJF 58297 a

1customer classes, and actively explore and propose to the
2Commission and to the General Assembly solutions to overcome
3identified barriers. The Director may include municipal
4aggregation of customers and creating and designing customer
5choice programs as tools for retail market development.
6Solutions proposed by the Office to promote retail competition
7must also promote safe, reliable, and affordable electric
8service.
9    On or before June 30 of each year, the Director shall
10submit a report to the Commission, the General Assembly, and
11the Governor, that details specific accomplishments achieved
12by the Office in the prior 12 months in promoting retail
13electric competition and that suggests administrative and
14legislative action necessary to promote further improvements
15in retail electric competition. The report to the General
16Assembly shall be filed with the Clerk of the House of
17Representatives and the Secretary of the Senate in electronic
18form only, in the manner that the Clerk and the Secretary shall
19direct. Any information in this report involving price
20comparisons between electric utilities, electric utilities
21providing service outside their service territories, or
22alternative retail electric suppliers shall also include the
23combined value of additional products and services offered by
24the competitive retail electric market, including, but not
25limited to, the cash value of energy control technologies
26provided, the megawatt hours of energy savings realized by

 

 

10100HB3028ham001- 61 -LRB101 07724 RJF 58297 a

1customers utilizing energy control technologies, the megawatt
2hours of renewable energy exclusive of State mandated
3purchases, and the total amounts of cash or cash equivalent
4offers. The Commission may include other energy savings and
5marketing savings programs as they develop in the market. The
6Commission is authorized to establish through administrative
7rules standards, practices, forms, procedures, and policies
8governing the reporting of alternative retail electric
9suppliers of such products, services, energy savings,
10renewable energy, and value of cash equivalent offers.
11(Source: P.A. 94-1095, eff. 2-2-07.)
 
12    (220 ILCS 5/20-140 new)
13    Sec. 20-140. Expanded use of energy savings programs.
14    (a) The Commission may establish a program for promoting
15expanded use of energy savings programs for residential and
16small commercial customers. The program shall include the use
17of thermostats, lights, plugs, and other devices that allow a
18customer to control and reduce his or her energy usage. The
19program shall not discriminate based on brand names and shall
20include ways to promote those devices and incentives for
21residential customers, including both homeowners and renters.
22Nothing in this Section is intended to modify the rights or
23obligations set forth in Sections 8-103B and 8-104 of this Act
24or divert or reallocate the funding available under those
25Sections.

 

 

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1    (b) On or before September 1, 2019 and every 2 years
2thereafter, the Commission shall initiate a collaborative
3workshop for stakeholders, retail electric suppliers,
4advocates for energy savings, and industry representatives
5developing energy savings devices and applicants.
6    (c) Any recommendations arising from the workshop process
7under this Section shall be included in the annual report of
8the Office of Retail Market Development.
 
9    Section 10. The Citizens Utility Board Act is amended by
10changing Section 5 as follows:
 
11    (220 ILCS 10/5)  (from Ch. 111 2/3, par. 905)
12    Sec. 5. Powers and duties.
13    (1) The corporation shall:
14        (a) Represent and protect the interests of the
15    residential utility consumers of this State. All actions by
16    the corporation under this Act shall be directed toward
17    such duty; provided that the corporation may also give due
18    consideration to the interests of business in the State.
19        (b) Inform, in so far as possible, all utility
20    consumers about the corporation, including the procedure
21    for obtaining membership in the corporation.
22    (2) The corporation shall have all the powers necessary or
23convenient for the effective representation and protection of
24the interest of utility consumers and to implement this Act,

 

 

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1including the following powers in addition to all other powers
2granted by this Act.
3        (a) To make, amend and repeal bylaws and rules for the
4    regulation of its affairs and the conduct of its business;
5    to adopt an official seal and alter it at pleasure; to
6    maintain an office; to sue and be sued in its own name,
7    plead and be impleaded; and to make and execute contracts
8    and other instruments necessary or convenient to the
9    exercise of the powers of the corporation.
10        (b) To employ such agents, employees and special
11    advisors as it finds necessary and to fix their
12    compensation.
13        (c) To solicit and accept gifts, loans, including loans
14    made by the Illinois Commerce Commission from funds
15    appropriated for that purpose by law, or other aid in order
16    to support activities concerning the interests of utility
17    consumers. Except as provided in Section 5.1, the
18    corporation may not accept gifts, loans or other aid from
19    any public utility or from any director, employee or agent
20    or member of the immediate family of a director, employee
21    or agent of any public utility and, after the first
22    election the corporation, may not accept from any
23    individual, private corporation, association or
24    partnership in any single year a total of more than $1,000
25    in gifts. Under this paragraph, "aid" does not mean payment
26    of membership dues.

 

 

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1        (d) To intervene as a party or otherwise participate on
2    behalf of utility consumers in any proceeding which affects
3    the interest of utility consumers.
4        (e) To represent the interests of utility consumers
5    before the Illinois Commerce Commission, the Federal
6    Energy Regulatory Commission, the Federal Communications
7    Commission, the courts, and other public bodies, except
8    that no director, employee or agent of the corporation may
9    engage in lobbying without first complying with any
10    applicable statute, administrative rule or other
11    regulation relating to lobbying.
12        (f) To establish annual dues which shall be set at a
13    level that provides sufficient funding for the corporation
14    to effectively perform its powers and duties, and is
15    affordable for as many utility consumers as is possible.
16        (g) To implement solicitation for corporation funding
17    and membership.
18        (h) To seek tax exempt status under State and federal
19    law, including 501(c)(3) status under the United States
20    Internal Revenue Code.
21        (i) To provide information and advice to utility
22    consumers on any matter with respect to utility service,
23    including but not limited to information and advice on
24    benefits and methods of energy conservation.
25    (3) The powers, duties, rights and privileges conferred or
26imposed upon the corporation by this Act may not be

 

 

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1transferred.
2    (4) The corporation shall refrain from interfering with
3collective bargaining rights of any employees of a public
4utility.
5    (5) The corporation shall provide all consumer complaints
6regarding service by entities possessing a certificate of
7service authority as an alternative retail electric supplier
8under Section 16-115 of the Public Utilities Act and entities
9possessing certificates of service authority as an alternative
10gas supplier under Section 19-110 of the Public Utilities Act
11to the Consumer Services Division of the Illinois Commerce
12Commission.
13    For purposes of this subsection (5), "complaint" means an
14objection made to an alternative retail electric supplier or to
15an alternative gas supplier by a customer or another entity as
16to its charges, facilities, or service, the disposal of which
17requires investigation or analysis. "Complaint" includes a
18customer or other entity identifying and asking an alternative
19retail electric supplier or alternative gas supplier to address
20or resolve a problem or concern. "Complaint" does not include
21contact that is limited to inquiry or seeking information.
22(Source: P.A. 91-50, eff. 6-30-99.)
 
23    Section 15. The Consumer Fraud and Deceptive Business
24Practices Act is amended by changing Section 2EE as follows:
 

 

 

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1    (815 ILCS 505/2EE)
2    Sec. 2EE. Electric service provider selection. An electric
3service provider shall not submit or execute a change in a
4subscriber's selection of a provider of electric service unless
5and until (i) the provider first discloses all material terms
6and conditions of the offer to the subscriber; (ii) the
7provider has obtained the subscriber's express agreement to
8accept the offer after the disclosure of all material terms and
9conditions of the offer; and (iii) the provider has confirmed
10the request for a change in accordance with one of the
11following procedures:
12    (a) The new electric service provider has obtained the
13subscriber's written or electronically signed authorization in
14a form that meets the following requirements:
15        (1) An electric service provider shall obtain any
16    necessary written or electronically signed authorization
17    from a subscriber for a change in electric service by using
18    a letter of agency as specified in this Section. Any letter
19    of agency that does not conform with this Section is
20    invalid.
21        (2) The letter of agency shall be a separate document
22    (an easily separable document containing only the
23    authorization language described in subparagraph (a)(5) of
24    this Section) whose sole purpose is to authorize an
25    electric service provider change. The letter of agency must
26    be signed and dated by the subscriber requesting the

 

 

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1    electric service provider change.
2        (3) The letter of agency shall not be combined with
3    inducements of any kind on the same document.
4        (4) Notwithstanding subparagraphs (a)(1) and (a)(2) of
5    this Section, the letter of agency may be combined with
6    checks that contain only the required letter of agency
7    language prescribed in subparagraph (a)(5) of this Section
8    and the necessary information to make the check a
9    negotiable instrument. The letter of agency check shall not
10    contain any promotional language or material. The letter of
11    agency check shall contain in easily readable, bold-face
12    type on the face of the check, a notice that the consumer
13    is authorizing an electric service provider change by
14    signing the check. The letter of agency language also shall
15    be placed near the signature line on the back of the check.
16        (5) At a minimum, the letter of agency must be printed
17    with a print of sufficient size to be clearly legible, and
18    must contain clear and unambiguous language that confirms:
19            (i) The subscriber's billing name and address;
20            (ii) The decision to change the electric service
21        provider from the current provider to the prospective
22        provider;
23            (iii) The terms, conditions, and nature of the
24        service to be provided to the subscriber must be
25        clearly and conspicuously disclosed, in writing, and
26        an electric service provider must directly establish

 

 

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1        the rates for the service contracted for by the
2        subscriber; and
3            (iv) That the subscriber understand that any
4        electric service provider selection the subscriber
5        chooses may involve a charge to the subscriber for
6        changing the subscriber's electric service provider.
7        (6) Letters of agency shall not suggest or require that
8    a subscriber take some action in order to retain the
9    subscriber's current electric service provider.
10        (7) If any portion of a letter of agency is translated
11    into another language, then all portions of the letter of
12    agency must be translated into that language.
13    (b) An appropriately qualified independent third party has
14obtained, in accordance with the procedures set forth in this
15subsection (b), the subscriber's oral authorization to change
16electric suppliers that confirms and includes appropriate
17verification data. The independent third party (i) must not be
18owned, managed, controlled, or directed by the supplier or the
19supplier's marketing agent; (ii) must not have any financial
20incentive to confirm supplier change requests for the supplier
21or the supplier's marketing agent; and (iii) must operate in a
22location physically separate from the supplier or the
23supplier's marketing agent.
24    Automated third-party verification systems and 3-way
25conference calls may be used for verification purposes so long
26as the other requirements of this subsection (b) are satisfied.

 

 

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1    A supplier or supplier's sales representative initiating a
23-way conference call or a call through an automated
3verification system must drop off the call once the 3-way
4connection has been established.
5    All third-party verification methods shall elicit, at a
6minimum, the following information: (i) the identity of the
7subscriber; (ii) confirmation that the person on the call is
8authorized to make the supplier change; (iii) confirmation that
9the person on the call wants to make the supplier change; (iv)
10the names of the suppliers affected by the change; (v) the
11service address of the supply to be switched; and (vi) the
12price of the service to be supplied and the material terms and
13conditions of the service being offered, including whether any
14early termination fees apply. Third-party verifiers may not
15market the supplier's services by providing additional
16information, including information regarding procedures to
17block or otherwise freeze an account against further changes.
18    All third-party verifications shall be conducted in the
19same language that was used in the underlying sales transaction
20and shall be recorded in their entirety. Submitting suppliers
21shall maintain and preserve audio records or electronic
22versions, if automated, of verification of subscriber
23authorization for a minimum period of 2 years after obtaining
24the verification. Automated systems must provide consumers
25with an option to speak with a live person at any time during
26the call.

 

 

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1    (c) When a subscriber initiates the call to the prospective
2electric supplier, in order to enroll the subscriber as a
3customer, the prospective electric supplier must, with the
4consent of the customer, make a date-stamped, time-stamped
5audio recording that elicits, at a minimum, the following
6information:
7        (1) the identity of the subscriber;
8        (2) confirmation that the person on the call is
9    authorized to make the supplier change;
10        (3) confirmation that the person on the call wants to
11    make the supplier change;
12        (4) the names of the suppliers affected by the change;
13        (5) the service address of the supply to be switched;
14    and
15        (6) the price of the service to be supplied and the
16    material terms and conditions of the service being offered,
17    including whether any early termination fees apply.
18    Submitting suppliers shall maintain and preserve the audio
19records containing the information set forth above for a
20minimum period of 2 years.
21    (d) Complaints may be filed with the Illinois Commerce
22Commission under this Section by a subscriber whose electric
23service has been provided by an electric service supplier in a
24manner not in compliance with this Section. If, after notice
25and hearing, the Commission finds that an electric service
26provider has violated this Section, the Commission may in its

 

 

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1discretion do any one or more of the following:
2        (1) Require the violating electric service provider to
3    refund to the subscriber charges collected in excess of
4    those that would have been charged by the subscriber's
5    authorized electric service provider.
6        (2) Require the violating electric service provider to
7    pay to the subscriber's authorized electric supplier the
8    amount the authorized electric supplier would have
9    collected for the electric service. The Commission is
10    authorized to reduce this payment by any amount already
11    paid by the violating electric supplier to the subscriber's
12    authorized provider for electric service.
13        (3) Require the violating electric subscriber to pay a
14    fine of up to $1,000 into the Public Utility Fund for each
15    repeated and intentional violation of this Section.
16        (4) Issue a cease and desist order.
17        (5) For a pattern of violation of this Section or for
18    intentionally violating a cease and desist order, revoke
19    the violating provider's certificate of service authority.
20    (e) For purposes of this Section, "electric service
21provider" shall have the meaning given that phrase in Section
226.5 of the Attorney General Act.
23(Source: P.A. 95-700, eff. 11-9-07.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.".