HB4973 EnrolledLRB102 21371 SPS 30483 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Sections 16-115, 16-115B, 16-115C, 19-110, and 19-120 as
6follows:
 
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
13customer or other user located in this State. An alternative
14retail electric supplier may request, and the Commission may
15grant, a certificate of service authority for the entire State
16or for a specified geographic area of the State. A certificate
17granted pursuant to this Section is not property, and the
18grant of a certificate to an entity does not create a property
19interest in the certificate. This Section does not diminish
20the existing rights of a certificate holder to notice and
21hearing as proscribed by the Illinois Administrative Procedure
22Act and in rules adopted by the Commission.
23    (b) An alternative retail electric supplier seeking a

 

 

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1certificate of service authority shall file with the
2Commission a verified application containing information
3showing that the applicant meets the requirements of this
4Section. The alternative retail electric supplier shall
5publish notice of its application in the official State
6newspaper within 10 days following the date of its filing. No
7later than 45 days after a complete the application is
8properly filed with the Commission, and such notice is
9published, the Commission shall issue its order granting or
10denying the application.
11    (c) An application for a certificate of service authority
12shall identify the area or areas in which the applicant
13intends to offer service and the types of services it intends
14to offer. Applicants that seek to serve residential or small
15commercial retail customers within a geographic area that is
16smaller than an electric utility's service area shall submit
17evidence demonstrating that the designation of this smaller
18area does not violate Section 16-115A. An applicant that seeks
19to serve residential or small commercial retail customers may
20state in its application for certification any limitations
21that will be imposed on the number of customers or maximum load
22to be served.
23    (d) The Commission shall grant the application for a
24certificate of service authority if it makes the findings set
25forth in this subsection based on the verified application and
26such other information as the applicant may submit:

 

 

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1        (1) That the applicant possesses sufficient technical,
2    financial, and managerial resources and abilities to
3    provide the service for which it seeks a certificate of
4    service authority. In determining the level of technical,
5    financial, and managerial resources and abilities which
6    the applicant must demonstrate, the Commission shall
7    consider (i) the characteristics, including the size and
8    financial sophistication, of the customers that the
9    applicant seeks to serve, and (ii) whether the applicant
10    seeks to provide electric power and energy using property,
11    plant, and equipment which it owns, controls, or operates;
12        (2) That the applicant will comply with all applicable
13    federal, State, regional, and industry rules, policies,
14    practices, and procedures for the use, operation, and
15    maintenance of the safety, integrity, and reliability, of
16    the interconnected electric transmission system;
17        (3) That the applicant will only provide service to
18    retail customers in an electric utility's service area
19    that are eligible to take delivery services under this
20    Act;
21        (4) That the applicant will comply with such
22    informational or reporting requirements as the Commission
23    may by rule establish and provide the information required
24    by Section 16-112. Any data related to contracts for the
25    purchase and sale of electric power and energy shall be
26    made available for review by the Staff of the Commission

 

 

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1    on a confidential and proprietary basis and only to the
2    extent and for the purposes which the Commission
3    determines are reasonably necessary in order to carry out
4    the purposes of this Act;
5        (5) That the applicant will procure renewable energy
6    resources in accordance with Section 16-115D of this Act,
7    and will source electricity from clean coal facilities, as
8    defined in Section 1-10 of the Illinois Power Agency Act,
9    in amounts at least equal to the percentages set forth in
10    subsections (c) and (d) of Section 1-75 of the Illinois
11    Power Agency Act. For purposes of this Section:
12            (i) (blank);
13            (ii) (blank);
14            (iii) the required sourcing of electricity
15        generated by clean coal facilities, other than the
16        initial clean coal facility, shall be limited to the
17        amount of electricity that can be procured or sourced
18        at a price at or below the benchmarks approved by the
19        Commission each year in accordance with item (1) of
20        subsection (c) and items (1) and (5) of subsection (d)
21        of Section 1-75 of the Illinois Power Agency Act;
22            (iv) all alternative retail electric suppliers
23        shall execute a sourcing agreement to source
24        electricity from the initial clean coal facility, on
25        the terms set forth in paragraphs (3) and (4) of
26        subsection (d) of Section 1-75 of the Illinois Power

 

 

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1        Agency Act, except that in lieu of the requirements in
2        subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
3        paragraph (3) of that subsection (d), the applicant
4        shall execute one or more of the following:
5                (1) if the sourcing agreement is a power
6            purchase agreement, a contract with the initial
7            clean coal facility to purchase in each hour an
8            amount of electricity equal to all clean coal
9            energy made available from the initial clean coal
10            facility during such hour, which the utilities are
11            not required to procure under the terms of
12            subsection (d) of Section 1-75 of the Illinois
13            Power Agency Act, multiplied by a fraction, the
14            numerator of which is the alternative retail
15            electric supplier's retail market sales of
16            electricity (expressed in kilowatthours sold) in
17            the State during the prior calendar month and the
18            denominator of which is the total sales of
19            electricity (expressed in kilowatthours sold) in
20            the State by alternative retail electric suppliers
21            during such prior month that are subject to the
22            requirements of this paragraph (5) of subsection
23            (d) of this Section and subsection (d) of Section
24            1-75 of the Illinois Power Agency Act plus the
25            total sales of electricity (expressed in
26            kilowatthours sold) by utilities outside of their

 

 

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

 

 

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1            (v) if, in any year after the first year of
2        commercial operation, the owner of the clean coal
3        facility fails to demonstrate to the Commission that
4        the initial clean coal facility captured and
5        sequestered at least 50% of the total carbon emissions
6        that the facility would otherwise emit or that
7        sequestration of emissions from prior years has
8        failed, resulting in the release of carbon into the
9        atmosphere, the owner of the facility must offset
10        excess emissions. Any such carbon offsets must be
11        permanent, additional, verifiable, real, located
12        within the State of Illinois, and legally and
13        practicably enforceable. The costs of any such offsets
14        that are not recoverable shall not exceed $15,000,000
15        $15 million in any given year. No costs of any such
16        purchases of carbon offsets may be recovered from an
17        alternative retail electric supplier or its customers.
18        All carbon offsets purchased for this purpose and any
19        carbon emission credits associated with sequestration
20        of carbon from the facility must be permanently
21        retired. The initial clean coal facility shall not
22        forfeit its designation as a clean coal facility if
23        the facility fails to fully comply with the applicable
24        carbon sequestration requirements in any given year,
25        provided the requisite offsets are purchased. However,
26        the Attorney General, on behalf of the People of the

 

 

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1        State of Illinois, may specifically enforce the
2        facility's sequestration requirement and the other
3        terms of this contract provision. Compliance with the
4        sequestration requirements and offset purchase
5        requirements that apply to the initial clean coal
6        facility shall be reviewed annually by an independent
7        expert retained by the owner of the initial clean coal
8        facility, with the advance written approval of the
9        Attorney General;
10            (vi) The Commission shall, after notice and
11        hearing, revoke the certification of any alternative
12        retail electric supplier that fails to execute a
13        sourcing agreement with the initial clean coal
14        facility as required by item (5) of subsection (d) of
15        this Section. The sourcing agreements with this
16        initial clean coal facility shall be subject to both
17        approval of the initial clean coal facility by the
18        General Assembly and satisfaction of the requirements
19        of item (4) of subsection (d) of Section 1-75 of the
20        Illinois Power Agency Act, and shall be executed
21        within 90 days after any such approval by the General
22        Assembly. The Commission shall not accept an
23        application for certification from an alternative
24        retail electric supplier that has lost certification
25        under this subsection (d), or any corporate affiliate
26        thereof, for at least one year from the date of

 

 

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1        revocation;
2        (6) With respect to an applicant that seeks to serve
3    residential or small commercial retail customers, that the
4    area to be served by the applicant and any limitations it
5    proposes on the number of customers or maximum amount of
6    load to be served meet the provisions of Section 16-115A,
7    provided, that the Commission can extend the time for
8    considering such a certificate request by up to 90 days,
9    and can schedule hearings on such a request;
10        (7) That the applicant meets the requirements of
11    subsection (a) of Section 16-128;
12        (8) That the applicant discloses whether the applicant
13    is the subject of any lawsuit filed in a court of law or
14    formal complaint filed with a regulatory agency alleging
15    fraud, deception, or unfair marketing practices or other
16    similar allegations and, if the applicant is the subject
17    of such lawsuit or formal complaint, the applicant shall
18    identify the name, case number, and jurisdiction of each
19    lawsuit or complaint, and that the applicant is capable of
20    fulfilling its obligations as an alternative retail
21    electric supplier in Illinois notwithstanding any lawsuit
22    or complaint. For the purpose of this item (8), "formal
23    complaint" includes only those complaints that seek a
24    binding determination from a State or federal regulatory
25    body;
26        (9) That the applicant shall at all times remain in

 

 

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1    compliance continue to comply with requirements for
2    certification stated in this Section and as the Commission
3    may establish by rule;
4        (10) That the applicant shall execute and maintain a
5    license or permit bond issued by a qualifying surety or
6    insurance company authorized to transact business in the
7    State of Illinois in favor of the People of the State of
8    Illinois. The amount of the bond shall equal $30,000 if
9    the applicant seeks to serve only nonresidential retail
10    customers with maximum electrical demands of one megawatt
11    or more, $150,000 if the applicant seeks to serve only
12    nonresidential non-residential retail customers with
13    annual electrical consumption greater than 15,000
14    kilowatt-hours kWh, or $500,000 if the applicant seeks to
15    serve all eligible customers. Applicants shall be required
16    to submit an additional $500,000 bond if the applicant
17    intends to market to residential customers using in-person
18    solicitations. The bonds bond shall be conditioned upon
19    the full and faithful performance of all duties and
20    obligations of the applicant as an alternative retail
21    electric supplier, and shall be valid for a period of not
22    less than one year, and may be drawn upon in whole or in
23    part to satisfy any penalties imposed, and finally
24    adjudicated, by the Commission pursuant to Section 16-115B
25    for a violation of the applicant's duties or obligations,
26    except that the total amount of claims and penalties

 

 

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1    against the bond shall not exceed the penal sum of the bond
2    and shall not include any consequential or punitive
3    damage. The cost of the bond shall be paid by the
4    applicant. The applicant shall file a copy of this bond,
5    with a notarized verification page from the issuer, as
6    part of its application for certification under 83 Ill.
7    Adm. Code 451; and
8        (11) That the applicant will comply with all other
9    applicable laws and regulations.
10    (d-3) The Commission may deny with prejudice an
11application in which the applicant fails to provide the
12Commission with information sufficient for the Commission to
13grant the application.
14    (d-5) (Blank).
15    (e) A retail customer that owns a cogeneration or
16self-generation facility and that seeks certification only to
17provide electric power and energy from such facility to retail
18customers at separate locations which customers are both (i)
19owned by, or a subsidiary or other corporate affiliate of,
20such applicant and (ii) eligible for delivery services, shall
21be granted a certificate of service authority upon filing an
22application and notifying the Commission that it has entered
23into an agreement with the relevant electric utilities
24pursuant to Section 16-118. Provided, however, that if the
25retail customer owning such cogeneration or self-generation
26facility would not be charged a transition charge due to the

 

 

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1exemption provided under subsection (f) of Section 16-108
2prior to the certification, and the retail customers at
3separate locations are taking delivery services in conjunction
4with purchasing power and energy from the facility, the retail
5customer on whose premises the facility is located shall not
6thereafter be required to pay transition charges on the power
7and energy that such retail customer takes from the facility.
8    (f) The Commission shall have the authority to promulgate
9rules and regulations to carry out the provisions of this
10Section. On or before May 1, 1999, the Commission shall adopt a
11rule or rules applicable to the certification of those
12alternative retail electric suppliers that seek to serve only
13nonresidential retail customers with maximum electrical
14demands of one megawatt or more which shall provide for (i)
15expedited and streamlined procedures for certification of such
16alternative retail electric suppliers and (ii) specific
17criteria which, if met by any such alternative retail electric
18supplier, shall constitute the demonstration of technical,
19financial and managerial resources and abilities to provide
20service required by paragraph (1) of subsection (d) (1) of
21this Section, such as a requirement to post a bond or letter of
22credit, from a responsible surety or financial institution, of
23sufficient size for the nature and scope of the services to be
24provided; demonstration of adequate insurance for the scope
25and nature of the services to be provided; and experience in
26providing similar services in other jurisdictions.

 

 

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

 

 

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1for which confidential treatment is sought must be clearly
2identified on the confidential version of the document filed
3with the Commission. The affidavit must be accompanied by a
4"confidential" and a "public" version of the document or
5documents containing the information for which confidential
6treatment is sought.
7    If the alternative retail electric supplier has met the
8affidavit requirements of this subsection (g), then the
9Commission shall afford confidential treatment to the
10information identified in the affidavit for a period of 2
11years after the date the affidavit is received by the
12Commission.
13    Nothing in this subsection (g) prevents an alternative
14retail electric supplier from filing a petition with the
15Commission seeking confidential treatment for information
16beyond that identified in this subsection (g) or for
17information contained in other reports or documents filed with
18the Commission other than annual rate reports.
19    Nothing in this subsection (g) prevents the Commission, on
20its own motion, or any party from filing a formal petition with
21the Commission seeking to reconsider the conferring of
22confidential status on an item of information afforded
23confidential treatment pursuant to this subsection (g).
24    The Commission, on its own motion, may at any time
25initiate a docketed proceeding to investigate the continued
26applicability of this subsection (g) to the information

 

 

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1contained in items (i), (ii), and (iii) of this subsection
2(g). If, at the end of such investigation, the Commission
3determines that a particular item of information should no
4longer be eligible for the affidavit-based process outlined in
5this subsection (g), the Commission may enter an order to
6remove that item from the list of items eligible for the
7process set forth in this subsection (g). Notwithstanding any
8such order, in the event the Commission makes such a
9determination, nothing in this subsection (g) prevents an
10alternative retail electric supplier desiring confidential
11treatment for such information from filing a formal petition
12with the Commission seeking confidential treatment for such
13information.
14(Source: P.A. 101-590, eff. 1-1-20.)
 
15    (220 ILCS 5/16-115B)
16    Sec. 16-115B. Commission oversight of services provided by
17alternative retail electric suppliers.
18    (a) The Commission shall have jurisdiction in accordance
19with the provisions of Article X of this Act to entertain and
20dispose of any complaint made by the Commission, on its own
21motion, or by any person or corporation, chamber of commerce,
22board of trade, or any industrial, commercial, mercantile,
23agricultural or manufacturing society, or any body politic or
24municipal corporation against any alternative retail electric
25supplier alleging (i) that the alternative retail electric

 

 

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1supplier has violated or is in nonconformance with any
2applicable provisions of Section 16-115 through Section
316-115A; (ii) that the alternative retail electric supplier
4violated rules adopted by the Commission to govern the sales,
5marketing, or operations of retail electric suppliers; (iii)
6that an alternative retail electric supplier serving any
7residential and small commercial customers retail customers
8having maximum demands of less than one megawatt has failed to
9provide service in accordance with the terms of its contract
10or contracts with such customer or customers; (iv) (iii) that
11the alternative retail electric supplier has violated or is in
12nonconformance non-conformance with the delivery services
13tariff of, or any of its agreements relating to delivery
14services with, the electric utility, municipal system, or
15electric cooperative providing delivery services; or (v) (iv)
16that the alternative retail electric supplier has violated or
17failed to comply with the requirements of Sections 8-201
18through 8-207, 8-301, 8-505, or 8-507 of this Act as made
19applicable to alternative retail electric suppliers.
20    (b) The Commission shall have authority, after such
21administrative notice as is required by the Illinois
22Administrative Procedure Act and after an administrative
23hearing held on complaint or on the Commission's own motion:
24        (1) To order an alternative retail electric supplier
25    to cease and desist, or correct, any violation of or
26    nonconformance non-conformance with the provisions of

 

 

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1    Section 16-115 or 16-115A or any violation or
2    nonconformance over which the Commission has jurisdiction
3    under subsection (a) of Section 16-115B;
4        (2) To impose financial penalties for violations of or
5    nonconformances non-conformances with the provisions of
6    Section 16-115 or 16-115A, not to exceed (i) $10,000 per
7    occurrence, and for any violations or nonconformances that
8    continue after the Commission issues a cease and desist
9    order, up to an additional or (ii) $30,000 for each day the
10    violations or nonconformances continue per day for those
11    violations or non-conformances which continue after the
12    Commission issues a cease and desist order; and
13        (3) To alter, modify, revoke, or suspend the
14    certificate of service authority of an alternative retail
15    electric supplier for substantial or repeated violations
16    of or nonconformances non-conformances with the provisions
17    of Section 16-115 or 16-115A.
18    (c) In addition to other powers and authority granted to
19it under this Act, the Commission may require an alternative
20retail electric supplier to enter into a compliance plan. If
21the Commission comes into possession of information causing it
22to conclude that an alternative retail electric supplier is
23violating this Act or the Commission's rules, the Commission
24may, after notice and hearing, enter an order directing the
25alternative retail electric supplier to implement practices,
26procedures, oversight, or other measures or refrain from

 

 

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1practices, conduct, or activities that the Commission finds is
2necessary or reasonable to ensure the alternative retail
3electric supplier's compliance with this Act and the
4Commission's rules. Failure by an alternative retail electric
5supplier to implement or comply with a Commission-ordered
6compliance plan is a violation of this Section. The
7Commission, in its discretion, may order a compliance plan
8under such circumstances as it considers warranted and is not
9required to order a compliance plan prior to taking other
10enforcement action against an alternative retail electric
11supplier. Nothing in this subsection (c) shall be interpreted
12to limit the authority or right of the Attorney General.
13(Source: P.A. 101-590, eff. 1-1-20.)
 
14    (220 ILCS 5/16-115C)
15    Sec. 16-115C. Licensure of agents, brokers, and
16consultants engaged in the procurement or sale of retail
17electricity supply for third parties.
18    (a) The purpose of this Section is to adopt licensing and
19code of conduct rules in a competitive retail electricity
20market to protect Illinois consumers from unfair or deceptive
21acts or practices and to provide persons acting as agents,
22brokers, and consultants engaged in the procurement or sale of
23retail electricity supply for third parties with notice of the
24illegality of those acts or practices.
25    (a-5) All third-party sales representatives engaged in the

 

 

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1marketing of retail electricity supply must, prior to the
2customer signing a contract, disclose that they are not
3employed by the electric utility operating in the applicable
4service territory.
5    (b) For purposes of this Section, "agents, brokers, and
6consultants engaged in the procurement or sale of retail
7electricity supply for third parties" means any person or
8entity that attempts to procure on behalf of or sell retail
9electric service to an electric customer in the State.
10"Agents, brokers, and consultants engaged in the procurement
11or sale of retail electricity supply for third parties" does
12not include the Illinois Power Agency or any of its employees,
13any entity licensed as an alternative retail electric supplier
14pursuant to 83 Ill. Adm. Code 451 offering retail electric
15service on its own behalf, any person acting exclusively on
16behalf of a single alternative retail electric supplier on
17condition that exclusivity is disclosed to any third party
18contracted in such agent capacity, any person acting
19exclusively on behalf of a retail electric supplier on
20condition that exclusivity is disclosed to any third party
21contracted in such agent capacity, any person or entity
22representing a municipal power agency, as defined in Section
2311-119.1-3 of the Illinois Municipal Code, or any person or
24entity that is attempting to procure on behalf of or sell
25retail electric service to a third party that has aggregate
26billing demand of all of its affiliated electric service

 

 

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1accounts in Illinois of greater than 1,500 kilowatts kW.
2    (c) No person or entity shall act as an agent, broker, or
3consultant engaged in the procurement or sale of retail
4electricity supply for third parties unless that person or
5entity is licensed by the Commission under this Section or is
6offering services on their own behalf under 83 Ill. Adm. Code
7451. A license granted pursuant to this Section is not
8property, and the grant of a license to an entity does not
9create a property interest in the license.
10    (d) The Commission shall create requirements for licensure
11as an agent, broker, or consultant engaged in the procurement
12or sale of retail electricity supply for third parties, which
13shall include all of the following criteria:
14        (1) Technical competence.
15        (2) Managerial competence.
16        (3) Financial responsibility, including the posting of
17    an appropriate performance bond.
18        (4) Annual reporting requirements.
19    (e) Any person or entity required to be licensed under
20this Section must:
21        (1) disclose in plain language in writing to all
22    persons it solicits (i) before July 1, 2011, the total
23    anticipated remuneration to be paid to it by any third
24    party over the period of the proposed underlying customer
25    contract and (ii) on or after July 1, 2011, the total price
26    per kilowatt-hour, and the total anticipated cost,

 

 

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1    inclusive of all fees or commissions received by the
2    licensee, to be paid by the customer over the period of the
3    proposed underlying customer contract;
4        (2) disclose, if applicable, to all customers, prior
5    to the customer signing a contract, the fact that they
6    will be receiving compensation from the supplier;
7        (3) not hold itself out as independent or unaffiliated
8    with any supplier, or both, or use words reasonably
9    calculated to give that impression, unless the person
10    offering service under this Section has no contractual
11    relationship with any retail electricity supplier or its
12    affiliates regarding retail electric service in Illinois;
13        (4) not utilize false, misleading, materially
14    inaccurate, defamatory, or otherwise deceptive language or
15    materials in the soliciting or providing of its services;
16        (5) maintain copies of all marketing materials
17    disseminated to third parties for a period of not less
18    than 3 years;
19        (6) not present electricity pricing information in a
20    manner that favors one supplier over another, unless a
21    valid pricing comparison is made utilizing all relevant
22    costs and terms; and
23        (7) comply with the requirements of Sections 2EE, 2FF,
24    2GG, and 2HH of the Consumer Fraud and Deceptive Business
25    Practices Act.
26    (f) Any person or entity licensed under this Section shall

 

 

HB4973 Enrolled- 22 -LRB102 21371 SPS 30483 b

1file with the Commission all of the following information no
2later than March of each year:
3        (1) A verified report detailing any and all
4    contractual relationships that it has with certified
5    electricity suppliers in the State regarding retail
6    electric service in Illinois.
7        (2) A verified report detailing the distribution of
8    its customers with the various certified electricity
9    suppliers in Illinois during the prior calendar year. A
10    report under this Section shall not be required to contain
11    customer-identifying information.
12        A public redacted version of the verified report may
13    be submitted to the Commission along with a proprietary
14    version. The public redacted version may redact from the
15    verified report the name or names of every certified
16    electricity supplier contained in the report to protect
17    against disclosure of competitively sensitive market share
18    information. The information shall be afforded proprietary
19    treatment for 2 years after the date of the filing of the
20    verified report.
21        (3) A verified statement of any changes to the
22    original licensure qualifications and notice of continuing
23    compliance with all requirements.
24    (g) The Commission shall have jurisdiction over
25disciplinary proceedings and complaints, including on the
26Commission's own motion, for violations of this Section. The

 

 

HB4973 Enrolled- 23 -LRB102 21371 SPS 30483 b

1findings of a violation of this Section by the Commission
2shall result in discipline on a progressive a progressive
3disciplinary scale. For a first violation, the Commission may,
4in its discretion, suspend the license of the person or entity
5so disciplined for a period of no less than one month. For a
6second violation within a 5-year period, the Commission shall
7suspend the license of for the person or entity so disciplined
8for a period of not less than 6 months. For a third or
9subsequent violation within a 5-year period, the Commission
10shall suspend the license of the disciplined person for a
11period of not less than 2 years. Notwithstanding the minimum
12progressive suspensions, the Commission shall have authority,
13in its discretion, to impose whatever reasonable disciplinary
14measures it deems appropriate for any violation, including,
15but not limited to, terminating the license of the person or
16entity.
17    (h) This Section shall not apply to a retail customer that
18operates or manages either directly or indirectly any
19facilities, equipment, or property used or contemplated to be
20used to distribute electric power or energy if that retail
21customer is a political subdivision or public institution of
22higher education of this State, or any corporation, company,
23limited liability company, association, joint-stock company or
24association, firm, partnership, or individual, or their
25lessees, trusts, or receivers appointed by any court
26whatsoever that are owned or controlled by the political

 

 

HB4973 Enrolled- 24 -LRB102 21371 SPS 30483 b

1subdivision, public institution of higher education, or
2operated by any of its lessees or operating agents.
3(Source: P.A. 95-679, eff. 10-11-07; 96-1385, eff. 7-29-10.)
 
4    (220 ILCS 5/19-110)
5    Sec. 19-110. Certification of alternative gas suppliers.
6    (a) The provisions of this Section shall apply only to
7alternative gas suppliers serving or seeking to serve
8residential or small commercial customers and only to the
9extent such alternative gas suppliers provide services to
10residential or small commercial customers.
11    (b) An alternative gas supplier must obtain a certificate
12of service authority from the Commission in accordance with
13this Section before serving any customer or other user located
14in this State. An alternative gas supplier may request, and
15the Commission may grant, a certificate of service authority
16for the entire State or for a specified geographic area of the
17State. A certificate granted pursuant to this Section is not
18property, and the grant of a certificate to an entity does not
19create a property interest in the certificate. This Section
20does not diminish the existing rights of a certificate holder
21to notice and hearing as proscribed by the Illinois
22Administrative Procedure Act and in rules adopted by the
23Commission. A person, corporation, or other entity acting as
24an alternative gas supplier on the effective date of this
25amendatory Act of the 92nd General Assembly shall have 180

 

 

HB4973 Enrolled- 25 -LRB102 21371 SPS 30483 b

1days from the effective date of this amendatory Act of the 92nd
2General Assembly to comply with the requirements of this
3Section in order to continue to operate as an alternative gas
4supplier.
5    (c) An alternative gas supplier seeking a certificate of
6service authority shall file with the Commission a verified
7application containing information showing that the applicant
8meets the requirements of this Section. The alternative gas
9supplier shall publish notice of its application in the
10official State newspaper within 10 days following the date of
11its filing. No later than 45 days after a complete the
12application is properly filed with the Commission, and such
13notice is published, the Commission shall issue its order
14granting or denying the application.
15    (d) An application for a certificate of service authority
16shall identify the area or areas in which the applicant
17intends to offer service and the types of services it intends
18to offer. Applicants that seek to serve residential or small
19commercial customers within a geographic area that is smaller
20than a gas utility's service area shall submit evidence
21demonstrating that the designation of this smaller area does
22not violate Section 19-115. An applicant may state in its
23application for certification any limitations that will be
24imposed on the number of customers or maximum load to be
25served. The applicant shall submit as part of its application
26a statement indicating:

 

 

HB4973 Enrolled- 26 -LRB102 21371 SPS 30483 b

1        (1) Whether the applicant has been denied a natural
2    gas supplier license in any state in the United States.
3        (2) Whether the applicant has had a natural gas
4    supplier license suspended or revoked by any state in the
5    United States.
6        (3) Where, if any, other natural gas supplier license
7    applications are pending in the United States.
8        (4) Whether the applicant is the subject of any
9    lawsuits filed in a court of law or formal complaints
10    filed with a regulatory agency alleging fraud, deception,
11    or unfair marketing practices, or other similar
12    allegations, identifying the name, case number, and
13    jurisdiction of each such lawsuit or complaint.
14    For the purposes of this subsection (d), formal complaints
15include only those complaints that seek a binding
16determination from a state or federal regulatory body.
17    (e) The Commission shall grant the application for a
18certificate of service authority if it makes the findings set
19forth in this subsection based on the verified application and
20such other information as the applicant may submit.
21        (1) That the applicant possesses sufficient technical,
22    financial, and managerial resources and abilities to
23    provide the service for which it seeks a certificate of
24    service authority. In determining the level of technical,
25    financial, and managerial resources and abilities which
26    the applicant must demonstrate, the Commission shall

 

 

HB4973 Enrolled- 27 -LRB102 21371 SPS 30483 b

1    consider:
2            (A) the characteristics, including the size and
3        financial sophistication of the customers that the
4        applicant seeks to serve;
5            (B) whether the applicant seeks to provide gas
6        using property, plant, and equipment that it owns,
7        controls, or operates; and
8            (C) the applicant's commitment of resources to the
9        management of sales and marketing staff, through
10        affirmative managerial policies, independent audits,
11        technology, hands-on field monitoring and training,
12        and, in the case of applicants who will have sales
13        personnel or sales agents within the State of
14        Illinois, the applicant's managerial presence within
15        the State.
16        (2) That the applicant will comply with all applicable
17    federal, State, regional, and industry rules, policies,
18    practices, and procedures for the use, operation, and
19    maintenance of the safety, integrity, and reliability of
20    the gas transmission system.
21        (3) That the applicant will comply with such
22    informational or reporting requirements as the Commission
23    may by rule establish.
24        (4) That the area to be served by the applicant and any
25    limitations it proposes on the number of customers or
26    maximum amount of load to be served meet the provisions of

 

 

HB4973 Enrolled- 28 -LRB102 21371 SPS 30483 b

1    Section 19-115, provided, that if the applicant seeks to
2    serve an area smaller than the service area of a gas
3    utility or proposes other limitations on the number of
4    customers or maximum amount of load to be served, the
5    Commission can extend the time for considering such a
6    certificate request by up to 90 days, and can schedule
7    hearings on such a request.
8        (5) That the applicant shall continue to comply with
9    requirements for certification stated in this Section.
10        (6) That the applicant shall execute and maintain a
11    license or permit bond issued by a qualifying surety or
12    insurance company authorized to transact business in the
13    State of Illinois in favor of the People of the State of
14    Illinois. The amount of the bond shall equal $150,000 if
15    the applicant seeks to serve only nonresidential retail
16    customers or $500,000 if the applicant seeks to serve all
17    eligible customers. Applicants shall be required to submit
18    an additional $500,000 bond if the applicant intends to
19    market to residential customers using in-person
20    solicitations. The bonds bond shall be conditioned upon
21    the full and faithful performance of all duties and
22    obligations of the applicant as an alternative retail gas
23    supplier, and shall be valid for a period of not less than
24    one year, and may be drawn up to satisfy any penalties
25    imposed and finally adjudicated, by the Commission
26    pursuant to Section 19-120 for a violation of the

 

 

HB4973 Enrolled- 29 -LRB102 21371 SPS 30483 b

1    applicant's duties or obligations, except that the total
2    amount of claims and penalties against the bond shall not
3    exceed the penal sum of the bond and shall not include any
4    consequential or punitive damage. The cost of the bond
5    shall be paid by the applicant. The applicant shall file a
6    copy of this bond, with a notarized verification page from
7    the issuer, as part of its application for certification
8    under 83 Ill. Adm. Code 551.
9        (7) That the applicant will comply with all other
10    applicable laws and rules.
11    (e-5) The Commission may deny with prejudice an
12application in which the applicant fails to provide the
13Commission with information sufficient for the Commission to
14grant the application.
15    (f) The Commission can extend the time for considering
16such a certificate request by up to 90 days, and can schedule
17hearings on such a request if:
18        (1) a party to the application proceeding has formally
19    requested that the Commission hold hearings in a pleading
20    that alleges that one or more of the allegations or
21    certifications in the application is false or misleading;
22    or
23        (2) other facts or circumstances exist that will
24    necessitate additional time or evidence in order to
25    determine whether a certificate should be issued.
26    (g) The Commission shall have the authority to promulgate

 

 

HB4973 Enrolled- 30 -LRB102 21371 SPS 30483 b

1rules to carry out the provisions of this Section. Within 30
2days after the effective date of this amendatory Act of the
392nd General Assembly, the Commission shall adopt an emergency
4rule or rules applicable to the certification of those gas
5suppliers that seek to serve residential customers. Within 180
6days of the effective date of this amendatory Act of the 92nd
7General Assembly, the Commission shall adopt rules that
8specify criteria which, if met by any such alternative gas
9supplier, shall constitute the demonstration of technical,
10financial, and managerial resources and abilities to provide
11service required by paragraph item (1) of subsection (e) of
12this Section, such as a requirement to post a bond or letter of
13credit, from a responsible surety or financial institution, of
14sufficient size for the nature and scope of the services to be
15provided, demonstration of adequate insurance for the scope
16and nature of the services to be provided, and experience in
17providing similar services in other jurisdictions.
18    (h) The Commission may deny with prejudice any application
19that repeatedly fails to include the attachments,
20documentation, and affidavits required by the application form
21or that repeatedly fails to provide any other information
22required by this Section.
23    (i) An alternative gas supplier may seek confidential
24treatment for the reporting to the Commission of its total
25annual dekatherms delivered and sold by it to residential and
26small commercial customers by utility service territory during

 

 

HB4973 Enrolled- 31 -LRB102 21371 SPS 30483 b

1the preceding year via the filing of an affidavit with the
2Commission so long as the affidavit meets the requirements of
3this subsection (i). The affidavit must be filed
4contemporaneously with the information for which confidential
5treatment is sought and must clearly state that the affiant
6seeks confidential treatment pursuant to this subsection (i)
7and the information for which confidential treatment is sought
8must be clearly identified on the confidential version of the
9document filed with the Commission. The affidavit must be
10accompanied by both a "confidential" and a "public" version of
11the document or documents containing the information for which
12confidential treatment is sought.
13    If the alternative gas supplier has met the affidavit
14requirements of this subsection (i), then the Commission shall
15afford confidential treatment to the information identified in
16the affidavit for a period of 2 years after the date the
17affidavit is received by the Commission.
18    Nothing in this subsection (i) prevents an alternative gas
19supplier from filing a petition with the Commission seeking
20confidential treatment for information beyond that identified
21in this subsection (i) or for information contained in other
22reports or documents filed with the Commission other than
23annual rate reports.
24    Nothing in this subsection (i) prevents the Commission, on
25its own motion, or any party from filing a formal petition with
26the Commission seeking to reconsider the conferring of

 

 

HB4973 Enrolled- 32 -LRB102 21371 SPS 30483 b

1confidential status pursuant to this subsection (i).
2    The Commission, on its own motion, may at any time
3initiate a docketed proceeding to investigate the continued
4applicability of this affidavit-based process for seeking
5confidential treatment. If, at the end of such investigation,
6the Commission determines that this affidavit-based process
7for seeking confidential treatment for the information is no
8longer necessary, the Commission may enter an order to that
9effect. Notwithstanding any such order, in the event the
10Commission makes such a determination, nothing in this
11subsection (i) prevents an alternative gas supplier desiring
12confidential treatment for such information from filing a
13formal petition with the Commission seeking confidential
14treatment for such information.
15(Source: P.A. 101-590, eff. 1-1-20.)
 
16    (220 ILCS 5/19-120)
17    Sec. 19-120. Commission oversight of services provided by
18gas suppliers.
19    (a) The provisions of this Section shall apply only to
20alternative gas suppliers serving or seeking to serve
21residential or small commercial customers and only to the
22extent such alternative gas suppliers provide services to
23residential or small commercial customers.
24    (b) The Commission shall have jurisdiction in accordance
25with the provisions of Article X of this Act either to

 

 

HB4973 Enrolled- 33 -LRB102 21371 SPS 30483 b

1investigate on its own motion in order to determine whether or
2to entertain and dispose of any complaint by any person or
3corporation, chamber of commerce, board of trade, or any
4industrial, commercial, mercantile, agricultural or
5manufacturing society, or any body politic or municipal
6corporation against any alternative gas supplier alleging
7that:
8        (1) the alternative gas supplier has violated or is in
9    nonconformance with any applicable provisions of Section
10    19-110, 19-111, 19-112, or Section 19-115;
11        (1.5) that the alternative retail gas supplier
12    violated any rule adopted by the Commission to govern the
13    sales, marketing, or operations of retail gas suppliers;
14        (2) an alternative gas supplier has failed to provide
15    service in accordance with the terms of its contract or
16    contracts with a customer or customers;
17        (3) the alternative gas supplier has violated or is in
18    nonconformance with the transportation services tariff of,
19    or any of its agreements relating to transportation
20    services with, the gas utility or municipal system
21    providing transportation services; or
22        (4) the alternative gas supplier has violated or
23    failed to comply with the requirements of Sections 8-201
24    through 8-207, 8-301, 8-505, or 8-507 of this Act as made
25    applicable to alternative gas suppliers.
26    (c) The Commission shall have authority after such

 

 

HB4973 Enrolled- 34 -LRB102 21371 SPS 30483 b

1administrative notice as is required by the Illinois
2Administrative Procedure Act and after an administrative
3hearing held on complaint or on the Commission's own motion to
4order any or all of the following remedies, penalties, or
5forms of relief:
6        (1) order an alternative gas supplier to cease and
7    desist, or correct, any violation of or nonconformance
8    with the provisions of Section 19-110, 19-111, 19-112, or
9    19-115, or any violation or nonconformance over which the
10    Commission has jurisdiction under subsection (a) of
11    Section 19-120;
12        (2) impose financial penalties for violations of or
13    nonconformances with the provisions of Section 19-110,
14    19-111, 19-112, or 19-115, not to exceed (i) $10,000 per
15    occurrence, and for any violations or nonconformances that
16    continue after the Commission issues a cease and desist
17    order, up to an additional or (ii) $30,000 for each day the
18    violations or nonconformances continue per day for those
19    violations or nonconformances which continue after the
20    Commission issues a cease-and-desist order; and
21        (3) alter, modify, revoke, or suspend the certificate
22    of service authority of an alternative gas supplier for
23    substantial or repeated violations of or nonconformances
24    with the provisions of Section 19-110, 19-111, 19-112, or
25    19-115.
26    (d) Nothing in this Act shall be construed to limit,

 

 

HB4973 Enrolled- 35 -LRB102 21371 SPS 30483 b

1restrict, or mitigate in any way the power and authority of the
2State's Attorneys or the Attorney General under the Consumer
3Fraud and Deceptive Business Practices Act.
4    (e) In addition to other powers and authority granted to
5it under this Act, the Commission may require an alternative
6gas supplier to enter into a compliance plan. If the
7Commission comes into possession of information causing it to
8conclude that an alternative gas supplier is violating this
9Act or the Commission's rules, the Commission may, after
10notice and hearing, enter an order directing the alternative
11gas supplier to implement practices, procedures, oversight, or
12other measures or refrain from practices, conduct, or
13activities as the Commission finds is necessary or reasonable
14to ensure the alternative gas supplier's compliance with this
15Act and the Commission's rules. Failure by an alternative gas
16supplier to implement or comply with a Commission-ordered
17compliance plan is a violation of this Section. The
18Commission, in its discretion, may order a compliance plan
19under such circumstances as it considers warranted and is not
20required to order a compliance plan prior to taking other
21enforcement action against an alternative retail gas supplier.
22Nothing in this subsection (e) shall be interpreted to limit
23the authority or right of the Attorney General.
24(Source: P.A. 101-590, eff. 1-1-20.)
 
25    Section 10. The Consumer Fraud and Deceptive Business

 

 

HB4973 Enrolled- 36 -LRB102 21371 SPS 30483 b

1Practices Act is amended by changing Sections 2EE and 2DDD as
2follows:
 
3    (815 ILCS 505/2EE)
4    Sec. 2EE. Alternative retail electric supplier selection.
5    (a) An alternative retail electric supplier shall not
6submit or execute a change in a consumer's selection of a
7provider of electric service unless and until:
8        (i) the alternative retail electric supplier first
9    discloses all material terms and conditions of the offer
10    to the consumer;
11        (ii) if the consumer is a small commercial retail
12    customer as that term is defined in subsection (c) of this
13    Section or a residential consumer, the alternative retail
14    electric supplier discloses the utility electric supply
15    price to compare, which shall be the sum of the electric
16    supply charge and the transmission services charge, and
17    shall not include the purchased electricity adjustment,
18    applicable at the time the offer is made to the consumer;
19        (iii) if the consumer is a small commercial retail
20    customer as that term is defined in subsection (c) of this
21    Section or a residential consumer, the alternative retail
22    electric provider discloses the following statement:
23            "(Name of the alternative retail electric
24        supplier) is not the same entity as your electric
25        delivery company. You are not required to enroll with

 

 

HB4973 Enrolled- 37 -LRB102 21371 SPS 30483 b

1        (name of alternative retail electric supplier). As of
2        (effective date), the electric supply price to compare
3        is currently (price in cents per kilowatt hour). The
4        electric utility electric supply price will expire on
5        (expiration date). The utility electric supply price
6        to compare does not include the purchased electricity
7        adjustment factor. For more information go to the
8        Illinois Commerce Commission's free website at
9        www.pluginillinois.org.".
10        If applicable, the statement shall include the
11    following statement:
12            "The purchased electricity adjustment factor may
13        range between +.5 cents and -.5 cents per kilowatt
14        hour.";
15        (iv) the alternative retail electric supplier has
16    obtained the consumer's express agreement to accept the
17    offer after the disclosure of all material terms and
18    conditions of the offer; and
19        (v) the alternative retail electric supplier has
20    confirmed the request for a change in accordance with one
21    of the following procedures:
22            (A) The new alternative retail electric supplier
23        has obtained the consumer's written or electronically
24        signed authorization in a form that meets the
25        following requirements:
26                (1) An alternative retail electric supplier

 

 

HB4973 Enrolled- 38 -LRB102 21371 SPS 30483 b

1            shall obtain any necessary written or
2            electronically signed authorization from a
3            consumer for a change in electric service by using
4            a letter of agency as specified in this Section.
5            Any letter of agency that does not conform with
6            this Section is invalid.
7                (2) The letter of agency shall be a separate
8            document (an easily separable document containing
9            only the authorization language described in
10            subparagraph (5)) whose sole purpose is to
11            authorize an electric service provider change. The
12            letter of agency must be signed and dated by the
13            consumer requesting the electric service provider
14            change.
15                (3) The letter of agency shall not be combined
16            with inducements of any kind on the same document.
17                (4) Notwithstanding subparagraphs (1) and (2),
18            the letter of agency may be combined with checks
19            that contain only the required letter of agency
20            language prescribed in subparagraph (5) and the
21            necessary information to make the check a
22            negotiable instrument. The letter of agency check
23            shall not contain any promotional language or
24            material. The letter of agency check shall contain
25            in easily readable, bold-face type on the face of
26            the check, a notice that the consumer is

 

 

HB4973 Enrolled- 39 -LRB102 21371 SPS 30483 b

1            authorizing an electric service provider change by
2            signing the check. The letter of agency language
3            also shall be placed near the signature line on
4            the back of the check.
5                (5) At a minimum, the letter of agency must be
6            printed with a print of sufficient size to be
7            clearly legible, and must contain clear and
8            unambiguous language that confirms:
9                    (i) The consumer's billing name and
10                address;
11                    (ii) The decision to change the electric
12                service provider from the current provider to
13                the prospective provider;
14                    (iii) The terms, conditions, and nature of
15                the service to be provided to the consumer
16                must be clearly and conspicuously disclosed,
17                in writing, and an alternative retail electric
18                supplier must directly establish the rates for
19                the service contracted for by the consumer;
20                and
21                    (iv) That the consumer understand that any
22                alternative retail electric supplier selection
23                the consumer chooses may involve a charge to
24                the consumer for changing the consumer's
25                electric service provider.
26                (6) Letters of agency shall not suggest or

 

 

HB4973 Enrolled- 40 -LRB102 21371 SPS 30483 b

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

 

 

HB4973 Enrolled- 41 -LRB102 21371 SPS 30483 b

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

 

 

HB4973 Enrolled- 42 -LRB102 21371 SPS 30483 b

1        obtaining the verification. Automated systems must
2        provide consumers with an option to speak with a live
3        person at any time during the call. Each disclosure
4        made during the third-party verification must be made
5        individually to obtain clear acknowledgment of each
6        disclosure. The alternative retail electric supplier
7        must be in a location where he or she cannot hear the
8        customer while the third-party verification is
9        conducted. The alternative retail electric supplier
10        shall not contact the customer after the third-party
11        verification for a period of 24 hours unless the
12        customer initiates the contact.
13            (C) When a consumer initiates the call to the
14        prospective alternative retail electric supplier, in
15        order to enroll the consumer as a customer, the
16        prospective alternative retail electric supplier must,
17        with the consent of the customer, make a date-stamped,
18        time-stamped audio recording that elicits, at a
19        minimum, the following information:
20                (1) the identity of the customer;
21                (2) confirmation that the person on the call
22            is authorized to make the supplier change;
23                (3) confirmation that the person on the call
24            wants to make the supplier change;
25                (4) the names of the suppliers affected by the
26            change;

 

 

HB4973 Enrolled- 43 -LRB102 21371 SPS 30483 b

1                (5) the service address of the supply to be
2            switched; and
3                (6) the price of the service to be supplied
4            and the material terms and conditions of the
5            service being offered, including whether any early
6            termination fees apply.
7            Submitting suppliers shall maintain and preserve
8        the audio records containing the information set forth
9        above for a minimum period of 2 years.
10    (b)(1) An alternative retail electric supplier shall not
11utilize the name of a public utility in any manner that is
12deceptive or misleading, including, but not limited to,
13implying or otherwise leading a consumer to believe that an
14alternative retail electric supplier is soliciting on behalf
15of or is an agent of a utility. An alternative retail electric
16supplier shall not utilize the name, or any other identifying
17insignia, graphics, or wording that has been used at any time
18to represent a public utility company or its services, to
19identify, label, or define any of its electric power and
20energy service offers. An alternative retail electric supplier
21may state the name of a public electric utility in order to
22accurately describe the electric utility service territories
23in which the supplier is currently offering an electric power
24and energy service. An alternative retail electric supplier
25that is the affiliate of an Illinois public utility and that
26was doing business in Illinois providing alternative retail

 

 

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1electric service on January 1, 2016 may continue to use that
2public utility's name, logo, identifying insignia, graphics,
3or wording in its business operations occurring outside the
4service territory of the public utility with which it is
5affiliated.
6    (2) An alternative retail electric supplier shall not
7state or otherwise imply that the alternative retail electric
8supplier is employed by, representing, endorsed by, or acting
9on behalf of a utility or utility program, a consumer group or
10consumer group program, or a governmental body, unless the
11alternative retail electric supplier has entered into a
12contractual arrangement with the governmental body and has
13been authorized by the governmental body to make the
14statements.
15    (c) An alternative retail electric supplier shall not
16submit or execute a change in a consumer's selection of a
17provider of electric service unless the alternative retail
18electric supplier complies with the following requirements of
19this subsection (c). It is a violation of this Section for an
20alternative retail electric supplier to fail to comply with
21this subsection (c). The requirements of this subsection (c)
22shall only apply to residential and small commercial retail
23customers. For purposes of this subsection (c) only, "small
24commercial retail customer" has the meaning given to that term
25in Section 16-102 of the Public Utilities Act.
26        (1) During a solicitation an alternative retail

 

 

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1    electric supplier shall state that he or represents an
2    independent seller of electric power and energy service
3    certified by the Illinois Commerce Commission and that he
4    or she is not employed by, representing, endorsed by, or
5    acting on behalf of, a utility, or a utility program, a
6    consumer group or consumer group program, or a
7    governmental body, unless the alternative retail electric
8    supplier has entered into a contractual arrangement with
9    the governmental body and has been authorized with the
10    governmental body to make the statements.
11        (2) Alternative retail electric suppliers who engage
12    in in-person solicitation for the purpose of selling
13    electric power and energy service offered by the
14    alternative retail electric supplier shall display
15    identification on an outer garment. This identification
16    shall be visible at all times and prominently display the
17    following: (i) the alternative retail electric supplier
18    agent's full name in reasonable size font; (ii) an agent
19    identification number; (iii) a photograph of the
20    alternative retail electric supplier agent; and (iv) the
21    trade name and logo of the alternative retail electric
22    supplier the agent is representing. If the agent is
23    selling electric power and energy services from multiple
24    alternative retail electric suppliers to the consumer, the
25    identification shall display the trade name and logo of
26    the agent, broker, or consultant entity as that entity is

 

 

HB4973 Enrolled- 46 -LRB102 21371 SPS 30483 b

1    defined in Section 16-115C of the Public Utilities Act. An
2    alternative retail electric supplier shall leave the
3    premises at the consumer's, owner's, or occupant's
4    request. A copy of the Uniform Disclosure Statement
5    described in 83 Ill. Adm. Code 412.115 and 412.Appendix A
6    is to be left with the consumer, at the conclusion of the
7    visit unless the consumer refuses to accept a copy. An
8    alternative retail electric supplier may provide the
9    Uniform Disclosure Statement electronically instead of in
10    paper form to a consumer upon that customer's request. The
11    alternative retail electric supplier shall also offer to
12    the consumer, at the time of the initiation of the
13    solicitation, a business card or other material that lists
14    the agent's name, identification number and title, and the
15    alternative retail electric supplier's name and contact
16    information, including phone number. The alternative
17    retail electric supplier shall not conduct any in-person
18    solicitations of consumers at any building or premises
19    where any sign, notice, or declaration of any description
20    whatsoever is posted that prohibits sales, marketing, or
21    solicitations. The alternative retail electric supplier
22    shall obtain consent to enter multi-unit residential
23    dwellings. Consent obtained to enter a multi-unit dwelling
24    from one prospective customer or occupant of the dwelling
25    shall not constitute consent to market to any other
26    prospective consumers without separate consent.

 

 

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1        (3) An alternative retail electric supplier who
2    contacts consumers by telephone for the purpose of selling
3    electric power and energy service shall provide the
4    agent's name and identification number. Any telemarketing
5    solicitations that lead to a telephone enrollment of a
6    consumer must be recorded and retained for a minimum of 2
7    years. All telemarketing calls of consumers that do not
8    lead to a telephone enrollment, but last at least 2
9    minutes, shall be recorded and retained for a minimum of 6
10    months.
11        (4) During an inbound enrollment call, an alternative
12    retail electric supplier shall state that he or she
13    represents an independent seller of electric power and
14    energy service certified by the Illinois Commerce
15    Commission. All inbound enrollment calls that lead to an
16    enrollment shall be recorded, and the recordings shall be
17    retained for a minimum of 2 years. An inbound enrollment
18    call that does not lead to an enrollment, but lasts at
19    least 2 minutes, shall be retained for a minimum of 6
20    months. The alternative retail electric supplier shall
21    send the Uniform Disclosure Statement and contract to the
22    customer within 3 business days after the electric
23    utility's confirmation to the alternative retail electric
24    supplier of an accepted enrollment.
25        (5) If a direct mail solicitation to a consumer
26    includes a written letter of agency, it shall include the

 

 

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1    Uniform Disclosure Statement described in 83 Ill. Adm.
2    Code 412.115 and 412.Appendix A. The Uniform Disclosure
3    Statement shall be provided on a separate page from the
4    other marketing materials included in the direct mail
5    solicitation. If a written letter of agency is being used
6    to authorize a consumer's enrollment, the written letter
7    of agency shall comply with this Section. A copy of the
8    contract must be sent to consumer within 3 business days
9    after the electric utility's confirmation to the
10    alternative retail electric supplier of an accepted
11    enrollment.
12        (6) Online Solicitation.
13            (A) Each alternative retail electric supplier
14        offering electric power and energy service to
15        consumers online shall clearly and conspicuously make
16        all disclosures for any services offered through
17        online enrollment before requiring the consumer to
18        enter any personal information other than zip code,
19        electric utility service territory, or type of service
20        sought.
21            (B) Notwithstanding any requirements in this
22        Section to the contrary, an alternative retail
23        electric supplier may secure consent from the consumer
24        to obtain customer-specific billing and usage
25        information for the sole purpose of determining and
26        pricing a product through a letter of agency or method

 

 

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1        approved through an Illinois Commerce Commission
2        docket before making all disclosure for services
3        offered through online enrollment. It is a violation
4        of this Act for an alternative retail electric
5        supplier to use a consumer's utility account number to
6        execute or change a consumer's enrollment unless the
7        consumer expressly consents to that enrollment as
8        required by law.
9            (C) The enrollment website of the alternative
10        retail electric supplier shall, at a minimum, include:
11        (i) disclosure of all material terms and conditions of
12        the offer; (ii) a statement that electronic acceptance
13        of the terms and conditions is an agreement to
14        initiate service and begin enrollment; (iii) a
15        statement that the consumer shall review the contract
16        or contact the current supplier to learn if any early
17        termination fees are applicable; and (iv) an email
18        address and toll-free phone number of the alternative
19        retail electric supplier where the customer can
20        express a decision to rescind the contract.
21        (7)(A) Beginning January 1, 2020, an alternative
22    retail electric supplier shall not sell or offer to sell
23    any products or services to a consumer pursuant to a
24    contract in which the contract automatically renews,
25    unless an alternative retail electric supplier provides to
26    the consumer at the outset of the offer, in addition to

 

 

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1    other disclosures required by law, a separate written
2    statement titled "Automatic Contract Renewal" that clearly
3    and conspicuously discloses in bold lettering in at least
4    12-point font the terms and conditions of the automatic
5    contract renewal provision, including: (i) the estimated
6    bill cycle on which the initial contract term expires and
7    a statement that it could be later based on when the
8    utility accepts the initial enrollment; (ii) the estimated
9    bill cycle on which the new contract term begins and a
10    statement that it will immediately follow the last billing
11    cycle of the current term; (iii) the procedure to
12    terminate the contract before the new contract term
13    applies; and (iv) the cancellation procedure. If the
14    alternative retail electric supplier sells or offers to
15    sell the products or services to a consumer during an
16    in-person solicitation or telemarketing solicitation, the
17    disclosures described in this subparagraph (A) shall also
18    be made to the consumer verbally during the solicitation.
19    Nothing in this subparagraph (A) shall be construed to
20    apply to contracts entered into before January 1, 2020.
21            (B) At least 30 days before, but not more than 60
22        days prior, to the end of the initial contract term, in
23        any and all contracts that automatically renew after
24        the initial term, the alternative retail electric
25        supplier shall send, in addition to other disclosures
26        required by law, a separate written notice of the

 

 

HB4973 Enrolled- 51 -LRB102 21371 SPS 30483 b

1        contract renewal to the consumer that clearly and
2        conspicuously discloses the following:
3                (i) a statement printed or visible from the
4            outside of the envelope or in the subject line of
5            the email, if the customer has agreed to receive
6            official documents by email, that states "Contract
7            Renewal Notice";
8                (ii) a statement in bold lettering, in at
9            least 12-point font, that the contract will
10            automatically renew unless the customer cancels
11            it;
12                (iii) the billing cycle in which service under
13            the current term will expire;
14                (iv) the billing cycle in which service under
15            the new term will begin;
16                (v) the process and options available to the
17            consumer to reject the new contract terms;
18                (vi) the cancellation process if the
19            consumer's contract automatically renews before
20            the consumer rejects the new contract terms;
21                (vii) the terms and conditions of the new
22            contract term;
23                (viii) for a fixed rate contract, a
24            side-by-side comparison of the current price and
25            the new price; for a variable rate contract or
26            time-of-use product in which the first month's

 

 

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1            renewal price can be determined, a side-by-side
2            comparison of the current price and the price for
3            the first month of the new variable or time-of-use
4            price; or for a variable or time-of-use contract
5            based on a publicly available index, a
6            side-by-side comparison of the current formula and
7            the new formula; and
8                (ix) the phone number and Internet email
9            address to submit a consumer inquiry or complaint
10            to the Illinois Commerce Commission and the Office
11            of the Attorney General.
12            (C) An alternative retail electric supplier shall
13        not automatically renew a consumer's enrollment after
14        the current term of the contract expires when the
15        current term of the contract provides that the
16        consumer will be charged a fixed rate and the renewed
17        contract provides that the consumer will be charged a
18        variable rate, unless: (i) the alternative retail
19        electric supplier complies with subparagraphs (A) and
20        (B); and (ii) the customer expressly consents to the
21        contract renewal in writing or by electronic signature
22        at least 30 days, but no more than 60 days, before the
23        contract expires.
24            (D) This paragraph (7) does not apply to customers
25        enrolled in a municipal aggregation program pursuant
26        to Section 1-92 of the Illinois Power Agency Act.

 

 

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1        (8) All in-person and telephone solicitations shall be
2    conducted in, translated into, and provided in a language
3    in which the consumer subject to the marketing or
4    solicitation is able to understand and communicate. An
5    alternative retail electric supplier shall terminate a
6    solicitation if the consumer subject to the marketing or
7    communication is unable to understand and communicate in
8    the language in which the marketing or solicitation is
9    being conducted. An alternative retail electric supplier
10    shall comply with Section 2N of this Act.
11        (9) Beginning January 1, 2020, consumers shall have
12    the right to terminate their contract with the alternative
13    retail electric supplier at any time without any
14    termination fees or penalties.
15        (10) An alternative retail electric supplier shall not
16    submit a change to a customer's electric service provider
17    in violation of Section 16-115E of the Public Utilities
18    Act.
19    (d) (c) Complaints may be filed with the Illinois Commerce
20Commission under this Section by a consumer whose electric
21service has been provided by an alternative retail electric
22supplier in a manner not in compliance with this Section or by
23the Illinois Commerce Commission on its own motion when it
24appears to the Commission that an alternative retail electric
25supplier has provided service in a manner not in compliance
26with this Section. If, after notice and hearing, the

 

 

HB4973 Enrolled- 54 -LRB102 21371 SPS 30483 b

1Commission finds that an alternative retail electric supplier
2has violated this Section, the Commission may in its
3discretion do any one or more of the following:
4        (1) Require the violating alternative retail electric
5    supplier to refund to the consumer charges collected in
6    excess of those that would have been charged by the
7    consumer's authorized electric service provider.
8        (2) Require the violating alternative retail electric
9    supplier to pay to the consumer's authorized electric
10    service provider the amount the authorized electric
11    service provider would have collected for the electric
12    service. The Commission is authorized to reduce this
13    payment by any amount already paid by the violating
14    alternative retail electric supplier to the consumer's
15    authorized provider for electric service.
16        (3) Require the violating alternative retail electric
17    supplier to pay a fine of up to $10,000 $1,000 into the
18    Public Utility Fund for each repeated and intentional
19    violation of this Section.
20        (4) Issue a cease and desist order.
21        (5) For a pattern of violation of this Section or for
22    violations that continue after intentionally violating a
23    cease and desist order, revoke the violating alternative
24    retail electric supplier's certificate of service
25    authority.
26    (e) (d) For purposes of this Section:

 

 

HB4973 Enrolled- 55 -LRB102 21371 SPS 30483 b

1    "Electric service provider" shall have the meaning given
2that phrase in Section 6.5 of the Attorney General Act.
3    "Alternative retail electric supplier" has the meaning
4given to that term in Section 16-102 of the Public Utilities
5Act.
6(Source: P.A. 101-590, eff. 1-1-20.)
 
7    (815 ILCS 505/2DDD)
8    Sec. 2DDD. Alternative gas suppliers.
9    (a) Definitions.
10        (1) "Alternative gas supplier" has the same meaning as
11    in Section 19-105 of the Public Utilities Act.
12        (2) "Gas utility" has the same meaning as in Section
13    19-105 of the Public Utilities Act.
14    (b) It is an unfair or deceptive act or practice within the
15meaning of Section 2 of this Act for any person to violate any
16provision of this Section.
17    (c) Solicitation.
18        (1) An alternative gas supplier shall not utilize the
19    name of a public utility in any manner that is deceptive or
20    misleading, including, but not limited to, implying or
21    otherwise leading a customer to believe that an
22    alternative gas supplier is soliciting on behalf of or is
23    an agent of a utility. An alternative gas supplier shall
24    not utilize the name, or any other identifying insignia,
25    graphics, or wording, that has been used at any time to

 

 

HB4973 Enrolled- 56 -LRB102 21371 SPS 30483 b

1    represent a public utility company or its services or to
2    identify, label, or define any of its natural gas supply
3    offers and shall not misrepresent the affiliation of any
4    alternative supplier with the gas utility, governmental
5    bodies, or consumer groups.
6        (2) If any sales solicitation, agreement, contract, or
7    verification is translated into another language and
8    provided to a customer, all of the documents must be
9    provided to the customer in that other language.
10        (2.3) An alternative gas supplier shall state that it
11    represents an independent seller of gas certified by the
12    Illinois Commerce Commission and that he or she is not
13    employed by, representing, endorsed by, or acting on
14    behalf of a utility, or a utility program.
15        (2.5) All in-person and telephone solicitations shall
16    be conducted in, translated into, and provided in a
17    language in which the consumer subject to the marketing or
18    solicitation is able to understand and communicate. An
19    alternative gas supplier shall terminate a solicitation if
20    the consumer subject to the marketing or communication is
21    unable to understand and communicate in the language in
22    which the marketing or solicitation is being conducted. An
23    alternative gas supplier shall comply with Section 2N of
24    this Act.
25        (3) An alternative gas supplier shall clearly and
26    conspicuously disclose the following information to all

 

 

HB4973 Enrolled- 57 -LRB102 21371 SPS 30483 b

1    customers:
2            (A) the prices, terms, and conditions of the
3        products and services being sold to the customer;
4            (B) where the solicitation occurs in person,
5        including through door-to-door solicitation, the
6        salesperson's name;
7            (C) the alternative gas supplier's contact
8        information, including the address, phone number, and
9        website;
10            (D) contact information for the Illinois Commerce
11        Commission, including the toll-free number for
12        consumer complaints and website;
13            (E) a statement of the customer's right to rescind
14        the offer within 10 business days of the date on the
15        utility's notice confirming the customer's decision to
16        switch suppliers, as well as phone numbers for the
17        supplier and utility that the consumer may use to
18        rescind the contract;
19            (F) the amount of the early termination fee, if
20        any; and
21            (G) the utility gas supply cost rates per therm
22        price available from the Illinois Commerce Commission
23        website applicable at the time the alternative gas
24        supplier is offering or selling the products or
25        services to the customer and shall disclose the
26        following statement:

 

 

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1            "(Name of the alternative gas supplier) is not the
2        same entity as your gas delivery company. You are not
3        required to enroll with (name of alternative retail
4        gas supplier). Beginning on (effective date), the
5        utility gas supply cost rate per therm is (cost). The
6        utility gas supply cost will expire on (expiration
7        date). For more information go to the Illinois
8        Commerce Commission's free website at
9        www.icc.illinois.gov/ags/consumereducation.aspx.".
10        (4) Except as provided in paragraph (5) of this
11    subsection (c), an alternative gas supplier shall send the
12    information described in paragraph (3) of this subsection
13    (c) to all customers within one business day of the
14    authorization of a switch.
15        (5) An alternative gas supplier engaging in
16    door-to-door solicitation of consumers shall provide the
17    information described in paragraph (3) of this subsection
18    (c) during all door-to-door solicitations that result in a
19    customer deciding to switch his or her supplier.
20    (d) Customer Authorization. An alternative gas supplier
21shall not submit or execute a change in a customer's selection
22of a natural gas provider unless and until: (i) the
23alternative gas supplier first discloses all material terms
24and conditions of the offer to the customer; (ii) the
25alternative gas supplier has obtained the customer's express
26agreement to accept the offer after the disclosure of all

 

 

HB4973 Enrolled- 59 -LRB102 21371 SPS 30483 b

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

 

 

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

 

 

HB4973 Enrolled- 61 -LRB102 21371 SPS 30483 b

1        that a customer take some action in order to retain the
2        customer's current natural gas provider.
3            (G) If any portion of a letter of agency is
4        translated into another language, then all portions of
5        the letter of agency must be translated into that
6        language.
7        (2) An appropriately qualified independent third party
8    has obtained, in accordance with the procedures set forth
9    in this paragraph (2), the customer's oral authorization
10    to change natural gas providers that confirms and includes
11    appropriate verification data. The independent third party
12    must: (i) not be owned, managed, controlled, or directed
13    by the alternative gas supplier or the alternative gas
14    supplier's marketing agent; (ii) not have any financial
15    incentive to confirm provider change requests for the
16    alternative gas supplier or the alternative gas supplier's
17    marketing agent; and (iii) operate in a location
18    physically separate from the alternative gas supplier or
19    the alternative gas supplier's marketing agent. Automated
20    third-party verification systems and 3-way conference
21    calls may be used for verification purposes so long as the
22    other requirements of this paragraph (2) are satisfied. An
23    alternative gas supplier or alternative gas supplier's
24    sales representative initiating a 3-way conference call or
25    a call through an automated verification system must drop
26    off the call once the 3-way connection has been

 

 

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

 

 

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1    individually to obtain clear acknowledgment of each
2    disclosure. The alternative gas supplier must be in a
3    location where he or she cannot hear the customer while
4    the third-party verification is conducted. The alternative
5    gas supplier shall not contact the customer after the
6    third-party verification for a period of 24 hours unless
7    the customer initiates the contact.
8        (3) The alternative gas supplier has obtained the
9    customer's electronic authorization to change natural gas
10    service via telephone. Such authorization must elicit the
11    information in subparagraphs (A) through (F) of paragraph
12    (2) of this subsection (d). Alternative gas suppliers
13    electing to confirm sales electronically shall establish
14    one or more toll-free telephone numbers exclusively for
15    that purpose. Calls to the number or numbers shall connect
16    a customer to a voice response unit, or similar mechanism,
17    that makes a date-stamped, time-stamped recording of the
18    required information regarding the alternative gas
19    supplier change.
20        The alternative gas supplier shall not use such
21    electronic authorization systems to market its services.
22        (4) When a consumer initiates the call to the
23    prospective alternative gas supplier, in order to enroll
24    the consumer as a customer, the prospective alternative
25    gas supplier must, with the consent of the customer, make
26    a date-stamped, time-stamped audio recording that elicits,

 

 

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1    at a minimum, the following information:
2            (A) the identity of the customer;
3            (B) confirmation that the person on the call is
4        authorized to make the provider change;
5            (C) confirmation that the person on the call wants
6        to make the provider change;
7            (D) the names of the providers affected by the
8        change;
9            (E) the service address of the service to be
10        switched; and
11            (F) the price of the service to be supplied and the
12        material terms and conditions of the service being
13        offered, including whether any early termination fees
14        apply.
15        Submitting alternative gas suppliers shall maintain
16    and preserve the audio records containing the information
17    set forth above for a minimum period of 2 years.
18        (5) In the event that a customer enrolls for service
19    from an alternative gas supplier via an Internet website,
20    the alternative gas supplier shall obtain an
21    electronically signed letter of agency in accordance with
22    paragraph (1) of this subsection (d) and any customer
23    information shall be protected in accordance with all
24    applicable statutes and rules. In addition, an alternative
25    gas supplier shall provide the following when marketing
26    via an Internet website:

 

 

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1            (A) The Internet enrollment website shall, at a
2        minimum, include:
3                (i) a copy of the alternative gas supplier's
4            customer contract, which clearly and conspicuously
5            discloses all terms and conditions; and
6                (ii) a conspicuous prompt for the customer to
7            print or save a copy of the contract.
8            (B) Any electronic version of the contract shall
9        be identified by version number, in order to ensure
10        the ability to verify the particular contract to which
11        the customer assents.
12            (C) Throughout the duration of the alternative gas
13        supplier's contract with a customer, the alternative
14        gas supplier shall retain and, within 3 business days
15        of the customer's request, provide to the customer an
16        email e-mail, paper, or facsimile of the terms and
17        conditions of the numbered contract version to which
18        the customer assents.
19            (D) The alternative gas supplier shall provide a
20        mechanism by which both the submission and receipt of
21        the electronic letter of agency are recorded by time
22        and date.
23            (E) After the customer completes the electronic
24        letter of agency, the alternative gas supplier shall
25        disclose conspicuously through its website that the
26        customer has been enrolled and the alternative gas

 

 

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1        supplier shall provide the customer an enrollment
2        confirmation number.
3        (6) When a customer is solicited in person by the
4    alternative gas supplier's sales agent, the alternative
5    gas supplier may only obtain the customer's authorization
6    to change natural gas service through the method provided
7    for in paragraph (2) of this subsection (d).
8    Alternative gas suppliers must be in compliance with the
9provisions of this subsection (d) within 90 days after April
1010, 2009 (the effective date of Public Act 95-1051).
11    (e) Early Termination.
12        (1) Beginning January 1, 2020, consumers shall have
13    the right to terminate their contract with an alternative
14    gas supplier at any time without any termination fees or
15    penalties.
16        (2) In any agreement that contains an early
17    termination clause, an alternative gas supplier shall
18    provide the customer the opportunity to terminate the
19    agreement without any termination fee or penalty within 10
20    business days after the date of the first bill issued to
21    the customer for products or services provided by the
22    alternative gas supplier. The agreement shall disclose the
23    opportunity and provide a toll-free phone number that the
24    customer may call in order to terminate the agreement.
25    (f) The alternative gas supplier shall provide each
26customer the opportunity to rescind its agreement without

 

 

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1penalty within 10 business days after the date on the gas
2utility notice to the customer. The alternative gas supplier
3shall disclose to the customer all of the following:
4        (1) that the gas utility shall send a notice
5    confirming the switch;
6        (2) that from the date the utility issues the notice
7    confirming the switch, the customer shall have 10 business
8    days before the switch will become effective;
9        (3) that the customer may contact the gas utility or
10    the alternative gas supplier to rescind the switch within
11    10 business days; and
12        (4) the contact information for the gas utility and
13    the alternative gas supplier.
14    The alternative gas supplier disclosure shall be included
15in its sales solicitations, contracts, and all applicable
16sales verification scripts.
17    (f-5)(1) Beginning January 1, 2020, an alternative gas
18supplier shall not sell or offer to sell any products or
19services to a consumer pursuant to a contract in which the
20contract automatically renews, unless an alternative gas
21supplier provides to the consumer at the outset of the offer,
22in addition to other disclosures required by law, a separate
23written statement titled "Automatic Contract Renewal" that
24clearly and conspicuously discloses in bold lettering in at
25least 12-point font the terms and conditions of the automatic
26contract renewal provision, including: (i) the estimated bill

 

 

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1cycle on which the initial contract term expires and a
2statement that it could be later based on when the utility
3accepts the initial enrollment; (ii) the estimated bill cycle
4on which the new contract term begins and a statement that it
5will immediately follow the last billing cycle of the current
6term; (iii) the procedure to terminate the contract before the
7new contract term applies; and (iv) the cancellation
8procedure. If the alternative gas supplier sells or offers to
9sell the products or services to a consumer during an
10in-person solicitation or telemarketing solicitation, the
11disclosures described in this paragraph (1) shall also be made
12to the consumer verbally during the solicitation. Nothing in
13this paragraph (1) shall be construed to apply to contracts
14entered into before January 1, 2020.
15    (2) At least 30 days before, but not more than 60 days
16prior, to the end of the initial contract term, in any and all
17contracts that automatically renew after the initial term, the
18alternative gas supplier shall send, in addition to other
19disclosures required by law, a separate written notice of the
20contract renewal to the consumer that clearly and
21conspicuously discloses the following:
22        (A) a statement printed or visible from the outside of
23    the envelope or in the subject line of the email, if the
24    customer has agreed to receive official documents by
25    email, that states "Contract Renewal Notice";
26        (B) a statement in bold lettering, in at least

 

 

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1    12-point font, that the contract will automatically renew
2    unless the customer cancels it;
3        (C) the billing cycle in which service under the
4    current term will expire;
5        (D) the billing cycle in which service under the new
6    term will begin;
7        (E) the process and options available to the consumer
8    to reject the new contract terms;
9        (F) the cancellation process if the consumer's
10    contract automatically renews before the consumer rejects
11    the new contract terms;
12        (G) the terms and conditions of the new contract term;
13        (H) for a fixed rate or flat bill contract, a
14    side-by-side comparison of the current fixed rate or flat
15    bill to the new fixed rate or flat bill; for a variable
16    rate contract or time-of-use product in which the first
17    month's renewal price can be determined, a side-by-side
18    comparison of the current price and the price for the
19    first month of the new variable or time-of-use price; or
20    for a variable or time-of-use contract based on a publicly
21    available index, a side-by-side comparison of the current
22    formula and the new formula; and
23        (I) the phone number and Internet email address to
24    submit a consumer inquiry or complaint to the Illinois
25    Commerce Commission and the Office of the Attorney
26    General.

 

 

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1    (3) An alternative gas supplier shall not automatically
2renew a consumer's enrollment after the current term of the
3contract expires when the current term of the contract
4provides that the consumer will be charged a fixed rate and the
5renewed contract provides that the consumer will be charged a
6variable rate, unless: (i) the alternative gas supplier
7complies with paragraphs (1) and (2); and (ii) the customer
8expressly consents to the contract renewal in writing or by
9electronic signature at least 30 days, but no more than 60
10days, before the contract expires.
11    (4) An alternative gas supplier shall not submit a change
12to a customer's gas service provider in violation of Section
1319-116 of the Public Utilities Act.
14    (g) The provisions of this Section shall apply only to
15alternative gas suppliers serving or seeking to serve
16residential and small commercial customers and only to the
17extent such alternative gas suppliers provide services to
18residential and small commercial customers.
19    (h) Complaints may be filed with the Commission under this
20Section by a consumer whose gas service has been provided by an
21alternative retail gas supplier in a manner not in compliance
22with this Section or by the Commission on its own motion when
23it appears to the Commission that an alternative retail gas
24supplier has provided service in a manner not in compliance
25with this Section. If, after notice and hearing, the
26Commission finds that an alternative retail gas supplier has

 

 

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1violated this Section, the Commission may in its discretion do
2any one or more of the following:
3        (1) require the alternative retail gas supplier to
4    refund to the consumer charges collected in excess of
5    those that would have been charged by the consumer's
6    authorized gas service provider;
7        (2) require the alternative retail gas supplier to pay
8    to the consumer's authorized gas service provider the
9    amount the authorized gas service provider would have
10    collected for the gas service. The Commission is
11    authorized to reduce this payment by any amount already
12    paid by the alternative retail gas to the consumer's
13    authorized provider for gas service;
14        (3) require the alternative retail electric supplier
15    to pay a fine of up to $10,000 per occurrence into the
16    Public Utility Fund for each violation of this Section;
17        (4) issue a cease and desist order; and
18        (5) for a pattern of violation of this Section or for
19    violations that continue after a cease and desist order,
20    revoke the alternative retail gas supplier's certificate
21    of service authority.
22(Source: P.A. 101-590, eff. 1-1-20; 102-558, eff. 8-20-21.)