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Rep. Thomas Holbrook
Filed: 5/30/2007
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| AMENDMENT TO SENATE BILL 1299
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| AMENDMENT NO. ______. Amend Senate Bill 1299, AS AMENDED, |
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| by replacing everything after the enacting clause with the |
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| following:
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| "Section 5. The Public Utilities Act is amended by adding |
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| Sections 8-205.5 and 20-130 and by changing Sections 8-406, |
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| 8-503, 16-102, 16-103, and 16-118 as follows: |
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| (220 ILCS 5/8-205.5 new)
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| Sec. 8-205.5. Termination of utility service prior to March |
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| 31, 2008. Notwithstanding any other provision of this Act or |
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| any other law to the contrary, a public utility that, on |
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| December 31, 2005, served at least 100,000 electric customers |
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| in Illinois may not terminate electric service to a residential |
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| customer for nonpayment prior to March 31, 2008.
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| (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
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| Sec. 8-406. Certificate of public convenience and |
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| necessity.
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| (a) No public utility not owning any city or village
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| franchise nor engaged in performing any public service or in |
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| furnishing any
product or commodity within this State as of |
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| July 1, 1921 and not
possessing a certificate of
public |
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| convenience and necessity from the Illinois Commerce |
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| Commission,
the State Public Utilities Commission or
the Public |
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| Utilities Commission, at the time this amendatory Act of 1985 |
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| goes
into effect, shall transact any business in this State |
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| until it shall have
obtained a certificate from the Commission |
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| that public convenience and
necessity require the transaction |
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| of such business.
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| (b) No public utility shall begin the construction of any |
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| new plant,
equipment, property or facility which is not in |
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| substitution of any
existing plant, equipment, property or |
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| facility or any extension or
alteration thereof or in addition |
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| thereto,
unless and until it shall have obtained from the
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| Commission a certificate that public convenience and necessity |
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| require such
construction. Whenever after a hearing the |
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| Commission determines that any
new construction or the |
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| transaction of any business by a public utility will
promote |
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| the public convenience and is necessary thereto, it shall have |
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| the
power to issue certificates of public convenience and |
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| necessity. The
Commission shall determine that proposed |
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| construction will promote the
public convenience and necessity |
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| only if the utility demonstrates: (1) that the
proposed |
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| construction is necessary to provide adequate, reliable, and
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| efficient service to its customers and is the
least-cost means |
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| of
satisfying the service needs of its customers or that the |
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| proposed construction will promote the development of an |
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| effectively competitive electricity market that operates |
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| efficiently, is equitable to all customers, and is the least |
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| cost means of satisfying those objectives ;
(2) that the utility |
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| is capable of efficiently managing and
supervising the |
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| construction process and has taken sufficient action to
ensure |
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| adequate and efficient construction and supervision thereof; |
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| and (3)
that the utility is capable of financing the proposed |
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| construction without
significant adverse financial |
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| consequences for the utility or its
customers.
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| (c) After the effective date of this amendatory Act of |
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| 1987, no
construction shall commence on any new nuclear
power |
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| plant to be located within this State, and no certificate of |
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| public
convenience and necessity or other authorization shall |
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| be issued therefor
by the Commission, until the Director of the |
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| Illinois Environmental
Protection Agency finds that the United |
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| States Government, through its
authorized agency, has |
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| identified and approved a demonstrable technology or
means for |
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| the disposal of high level nuclear waste, or until such
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| construction has been specifically approved by a statute |
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| enacted by the General
Assembly.
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| As used in this Section, "high level nuclear waste" means |
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| those aqueous
wastes resulting from the operation of the first |
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| cycle of the solvent
extraction system or equivalent and the |
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| concentrated wastes of the
subsequent extraction cycles or |
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| equivalent in a facility for reprocessing
irradiated reactor |
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| fuel and shall include spent fuel assemblies prior to
fuel |
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| reprocessing.
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| (d) In making its determination, the Commission shall |
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| attach primary
weight to the cost or cost savings to the |
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| customers of the utility. The
Commission may consider any or |
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| all factors which will or may affect such
cost or cost savings.
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| (e) The Commission may issue a temporary certificate which |
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| shall remain
in force not to exceed one year in cases of |
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| emergency, to assure maintenance
of adequate service or to |
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| serve particular customers, without notice or
hearing, pending |
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| the determination of an application for a certificate, and
may |
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| by regulation exempt from the requirements of this Section |
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| temporary
acts or operations for which the issuance of a |
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| certificate will not be
required in the public interest.
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| A public utility shall not be required to obtain but may |
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| apply for and
obtain a certificate of public convenience and |
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| necessity pursuant to this
Section with respect to any matter |
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| as to which it has received the
authorization or order of the |
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| Commission under the Electric Supplier Act,
and any such |
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| authorization or order granted a public utility by the
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| Commission under that Act shall as between public utilities be |
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| deemed to
be, and shall have except as provided in that Act the |
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| same force and effect
as, a certificate of public convenience |
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| and necessity issued pursuant to this
Section.
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| No electric cooperative shall be made or shall become a |
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| party to or shall
be entitled to be heard or to otherwise |
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| appear or participate in any
proceeding initiated under this |
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| Section for authorization of power plant
construction and as to |
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| matters as to which a remedy is available under The
Electric |
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| Supplier Act.
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| (f) Such certificates may be altered or modified by the |
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| Commission, upon
its own motion or upon application by the |
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| person or corporation affected.
Unless exercised within a |
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| period of 2 years from the grant thereof
authority conferred by |
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| a certificate of convenience and necessity issued by
the |
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| Commission shall be null and void.
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| No certificate of public convenience and necessity shall be |
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| construed as
granting a monopoly or an exclusive privilege, |
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| immunity or franchise.
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| (Source: P.A. 90-561, eff. 12-16-97.)
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| (220 ILCS 5/8-503) (from Ch. 111 2/3, par. 8-503)
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| Sec. 8-503. Whenever the Commission, after a hearing, shall |
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| find that
additions, extensions, repairs or improvements to, or |
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| changes in, the
existing plant, equipment, apparatus, |
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| facilities or other physical property
of any public utility or |
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| of any 2 or more public utilities are
necessary
and ought |
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| reasonably to be made or that a new structure or structures is |
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| or
are necessary and should be erected, to promote the security |
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| or convenience
of its employees or the public or promote the |
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| development of an effectively competitive electricity market , |
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| or in any other way to secure adequate
service or facilities, |
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| the Commission shall make and serve an order
authorizing or |
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| directing that such additions, extensions, repairs,
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| improvements or changes be made, or such structure or |
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| structures be erected
at the location, in the manner and within |
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| the time specified in said order;
provided, however, that the
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| Commission shall have no authority to order the construction,
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| addition or extension of any electric generating plant unless
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| the public utility requests a certificate for the construction
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| of the plant pursuant to Section 8-406 and in conjunction with
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| such request also requests the entry of an order under this
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| Section.
If any additions, extensions, repairs, improvements |
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| or changes, or any new
structure or structures, which the |
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| Commission has authorized or ordered to
be erected, require |
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| joint action by 2 or more public utilities, the
Commission |
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| shall notify the said public utilities that such additions,
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| extensions, repairs, improvements or changes or new structure |
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| or structures
have been authorized or ordered and that the same |
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| shall be made at the
joint cost whereupon the said public |
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| utilities shall have such reasonable
time as the Commission may |
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| grant within which to agree upon the
apportionment or division |
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| of cost of such additions, extensions, repairs,
improvements or |
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| changes or new structure or structures, which each shall
bear. |
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| If at the expiration of such time such public utilities shall |
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| fail to
file with the Commission a statement that an agreement |
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| has been made for a
division or apportionment of the cost or |
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| expense of such additions,
extensions, repairs, improvements |
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| or changes, or new structure or
structures, the Commission |
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| shall have authority, after further hearing, to
make an order |
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| fixing the proportion of such cost or expense to be borne by
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| each public utility and the manner in which the same shall be |
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| paid or secured.
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| Nothing in this Act shall prevent the Commission, upon its |
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| own motion
or upon petition, from ordering, after a hearing, |
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| the extension, construction,
connection or interconnection of |
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| plant, equipment, pipe, line, facilities
or other physical |
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| property of a public utility in whatever configuration the
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| Commission finds necessary to ensure that natural gas is made |
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| available to
consumers at no increased cost to the customers of |
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| the utility supplying the gas.
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| Whenever the Commission finds, after a hearing, that the |
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| public convenience
or necessity requires it, the Commission may |
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| order public utilities subject
to its jurisdiction to work |
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| jointly (1) for the purpose of purchasing and
distributing |
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| natural gas or gas substitutes, provided it shall not increase
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| the cost of gas to the customers of the participating |
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| utilities, or (2) for
any other reasonable purpose.
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| (Source: P.A. 90-561, eff. 12-16-97.)
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| (220 ILCS 5/16-102)
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| Sec. 16-102. Definitions. For the purposes of this
Article |
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| the following terms shall be defined as set forth in
this |
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| Section.
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| "Alternative retail electric supplier" means every
person, |
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| cooperative, corporation, municipal corporation,
company, |
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| association, joint stock company or association,
firm, |
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| partnership, individual, or other entity, their lessees,
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| trustees, or receivers appointed by any court whatsoever, that
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| offers electric power or energy for sale, lease or in exchange
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| for other value received to one or more retail customers, or
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| that engages in the delivery or furnishing of electric power
or |
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| energy to such retail customers, and shall include, without
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| limitation, resellers, aggregators and power marketers, but
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| shall not include (i) electric utilities (or any agent of the
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| electric utility to the extent the electric utility provides
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| tariffed services to retail customers through that agent),
(ii) |
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| any electric cooperative or municipal system as defined
in |
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| Section 17-100 to the extent that the electric cooperative
or |
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| municipal system is serving retail customers within any
area in |
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| which it is or would be entitled to provide service
under the |
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| law in effect immediately prior to the effective
date of this |
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| amendatory Act of 1997, (iii) a public utility
that is owned |
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| and operated by any public institution of higher
education of |
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| this State, or a public utility that is owned by
such public |
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| institution of higher education and operated by
any of its |
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| lessees or operating agents, within any area in
which it is or |
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| would be entitled to provide service under the
law in effect |
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| immediately prior to the effective date of this
amendatory Act |
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| of 1997, (iv) a retail customer to the extent
that customer |
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| obtains its electric power and energy from that customer's
own |
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| cogeneration or self-generation facilities, (v) an
entity that |
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| owns, operates, sells, or arranges for the installation of
a |
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| customer's own cogeneration or self-generation facilities, but |
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| only to
the extent the entity is engaged in
owning,
selling or |
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| arranging for the installation of such facility,
or operating |
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| the facility
on behalf of such customer, provided however that |
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| any such
third party owner or operator of a facility built |
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| after
January 1, 1999, complies with the labor provisions of |
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| Section 16-128(a) as
though
such third party were an |
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| alternative retail
electric supplier,
or (vi) an industrial or
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| manufacturing customer that owns
its own
distribution |
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| facilities, to the extent that the customer provides service |
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| from
that distribution system to a third-party contractor |
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| located on the customer's
premises that is integrally and |
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| predominantly engaged in the customer's
industrial or
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| manufacturing process; provided, that if the industrial or |
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| manufacturing
customer has elected delivery services, the |
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| customer shall pay transition
charges applicable to the |
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| electric power and energy consumed by the third-party
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| contractor unless such charges are otherwise paid by the third |
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| party
contractor, which shall be calculated based on the usage |
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| of, and the base rates
or the contract rates applicable to, the |
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| third-party contractor in accordance
with Section 16-102.
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| "Base rates" means the rates for those tariffed services |
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| that the electric
utility is required to offer pursuant to |
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| subsection (a) of Section 16-103 and
that were identified in a |
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| rate order for collection of the electric
utility's base rate |
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| revenue requirement, excluding (i) separate automatic
rate |
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| adjustment riders then in effect, (ii) special or negotiated |
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| contract
rates, (iii) delivery services tariffs filed pursuant |
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| to Section 16-108, (iv)
real-time pricing, or (v) tariffs that |
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| were in effect prior to October 1, 1996
and that based charges |
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| for services on an index or average of other utilities'
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| charges, but including (vi) any subsequent redesign of such |
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| rates for
tariffed
services that is authorized by the |
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| Commission after notice and hearing.
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| "Competitive service" includes (i) any service that
has |
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| been declared to be competitive pursuant to Section
16-113 of |
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| this Act, (ii) contract service, and (iii) services,
other than |
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| tariffed services, that are related to, but not
necessary for, |
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| the provision of electric power and energy or delivery |
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| services.
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| "Contract service" means (1) services, including the
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| provision of electric power and energy or other services, that
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| are provided by mutual agreement between an electric utility
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| and a retail customer that is located in the electric
utility's |
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| service area, provided that, delivery services shall
not be a |
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| contract service until such services are declared
competitive |
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| pursuant to Section 16-113; and also means (2) the
provision of |
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| electric power and energy by an electric utility
to retail |
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| customers outside the electric utility's service
area pursuant |
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| to Section 16-116. Provided, however, contract
service does not |
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| include electric utility services provided
pursuant to (i) |
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| contracts that retail customers are required
to execute as a |
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| condition of receiving tariffed services, or
(ii) special or |
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| negotiated rate contracts for electric utility
services that |
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| were entered into between an electric utility
and a retail |
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| customer prior to the effective date of this
amendatory Act of |
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| 1997 and filed with the Commission.
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| "Delivery services" means those services provided by the
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| electric utility that are necessary in order for the
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| transmission and distribution systems to function so that
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| retail customers located in the electric utility's service
area |
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| can receive electric power and energy from suppliers
other than |
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| the electric utility, and shall include, without
limitation, |
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| standard metering and billing services.
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| "Electric utility" means a public utility, as defined in
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| Section 3-105 of this Act, that has a franchise, license,
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| permit or right to furnish or sell electricity to retail
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| customers within a service area.
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| "Mandatory transition period" means the period from the
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| effective date of Public Act 90-561
this amendatory Act of 1997
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| through
January
1, 2007.
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| "Municipal system" shall have the meaning set forth in
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| Section 17-100.
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| "Real-time pricing" means tariffed retail charges for |
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| delivered electric
power and energy that vary
hour-to-hour and |
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| are determined from wholesale market prices using a methodology |
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| approved by the Illinois Commerce Commission.
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| "Residential customer" means those retail customers of an |
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| electric utility that receive (i) electric utility service for |
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| household purposes distributed to a dwelling of 2 or fewer |
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| units that is billed under a residential rate or (ii) electric |
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| utility service for household purposes distributed to a |
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| dwelling unit or units that is billed under a residential rate |
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| and is registered by a separate meter for each dwelling unit.
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| "Retail customer" means a single entity using electric
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| power or energy at a single premises and that (A) either (i)
is |
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| receiving or is eligible to receive tariffed services from
an |
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| electric utility, or (ii) that is served by a municipal system |
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| or electric
cooperative within any area in which the
municipal |
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| system or electric cooperative is or would be
entitled to |
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| provide service under the law in effect
immediately prior to |
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| the effective date of this amendatory Act
of 1997, or (B) an |
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| entity which on the effective date of this
Act was receiving |
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| electric service from a public utility and
(i) was engaged in |
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| the practice of resale and redistribution
of such electricity |
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| within a building prior to January 2,
1957, or (ii) was |
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| providing lighting services to tenants in a
multi-occupancy |
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| building, but only to the extent such resale,
redistribution or |
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| lighting service is authorized by the
electric utility's |
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| tariffs that were on file with the
Commission on the effective |
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| date of this Act.
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| "Service area" means (i) the geographic area within which
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| an electric utility was lawfully entitled to provide electric
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| power and energy to retail customers as of the effective date
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| of this amendatory Act of 1997, and includes (ii) the location
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| of any retail customer to which the electric utility was
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| lawfully providing electric utility services on such effective
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| date.
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| "Small commercial retail customer" means those
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| nonresidential retail customers of an electric utility
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| consuming 15,000 kilowatt-hours or less of electricity
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| annually in its service area.
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| "Tariffed service" means services provided to retail
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| customers by an electric utility as defined by its rates on
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| file with the Commission pursuant to the provisions of Article
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| IX of this Act, but shall not include competitive services.
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| "Transition charge" means a charge expressed in cents
per |
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| kilowatt-hour that is calculated for a customer or class
of |
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| customers as follows for each year in which an electric
utility |
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| is entitled to recover transition charges as provided
in |
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| Section 16-108:
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| (1) the amount of revenue that an electric utility
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| would receive from the retail customer or customers if it
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| were serving such customers' electric power and energy
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| requirements as a tariffed service based on (A) all of
the |
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| customers' actual usage during the 3 years
ending 90 days |
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| prior to the date on which such customers
were first |
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| eligible for delivery services pursuant to
Section 16-104, |
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| and (B) on (i) the base rates in effect
on October 1, 1996 |
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| (adjusted for the reductions required
by subsection (b) of |
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| Section 16-111, for any reduction resulting from a rate
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| decrease under Section 16-101(b), for any restatement of |
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| base rates made in
conjunction with an elimination
of the |
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| fuel adjustment clause pursuant to subsection (b), (d), or |
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| (f) of
Section
9-220
and for any removal of decommissioning |
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| costs from base
rates pursuant to Section 16-114)
and any |
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| separate automatic rate adjustment riders (other
than a |
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| decommissioning rate as defined in Section 16-114)
under |
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| which the customers were receiving or, had they
been |
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| customers, would have received electric power and
energy |
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| from the electric utility during the year
immediately |
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| preceding the date on which such customers
were first |
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| eligible for delivery service pursuant to
Section 16-104, |
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| or (ii) to the extent applicable, any
contract rates, |
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| including contracts or rates for consolidated or
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| aggregated billing, under which such customers were
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| receiving electric power and energy from the electric
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| utility during such year;
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| (2) less the amount of revenue, other than revenue
from |
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| transition charges and decommissioning rates, that the |
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| electric utility
would
receive from such retail customers |
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| for delivery services
provided by the electric utility, |
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| assuming such customers
were taking delivery services for |
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| all of their usage,
based on the delivery services tariffs |
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| in effect during
the year for which the transition charge |
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| is being
calculated and on the usage identified in |
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| paragraph (1);
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| (3) less the market value for the electric power
and |
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| energy that the electric utility would have used to
supply |
11 |
| all of such customers' electric power and energy
|
12 |
| requirements, as a tariffed service, based on the usage
|
13 |
| identified in paragraph (1), with such market value
|
14 |
| determined in accordance with Section 16-112 of this Act;
|
15 |
| (4) less the following amount which represents the
|
16 |
| amount to be attributed to new revenue sources and cost
|
17 |
| reductions by the electric utility through the end of the
|
18 |
| period for which transition costs are recovered pursuant
to |
19 |
| Section 16-108, referred to in this Article XVI as a |
20 |
| "mitigation factor":
|
21 |
| (A) for nonresidential retail customers, an amount |
22 |
| equal to the greater
of (i) 0.5 cents per kilowatt-hour |
23 |
| during the period October 1, 1999
through December 31, |
24 |
| 2004, 0.6 cents per kilowatt-hour in calendar year |
25 |
| 2005,
and 0.9 cents per kilowatt-hour in calendar year |
26 |
| 2006, multiplied in
each year by the usage identified |
|
|
|
09500SB1299ham002 |
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LRB095 03672 MJR 37412 a |
|
|
1 |
| in paragraph (1), or (ii) an amount equal to
the |
2 |
| following percentages of the amount produced by |
3 |
| applying the applicable
base rates (adjusted as |
4 |
| described in subparagraph (1)(B)) or contract rate to
|
5 |
| the usage identified in paragraph (1): 8% for the |
6 |
| period October 1, 1999
through December 31, 2002, 10% |
7 |
| in calendar years 2003 and 2004, 11% in calendar
year |
8 |
| 2005 and 12% in calendar year 2006;
and
|
9 |
| (B) for residential retail customers, an amount
|
10 |
| equal to the following percentages of the amount |
11 |
| produced by applying the
base rates in effect on |
12 |
| October 1, 1996 (adjusted as
described in subparagraph |
13 |
| (1)(B)) to the usage
identified in paragraph (1): (i) |
14 |
| 6% from May 1, 2002 through December 31,
2002, (ii) 7% |
15 |
| in calendar years 2003 and 2004, (iii) 8% in calendar |
16 |
| year
2005, and (iv) 10% in calendar year 2006;
|
17 |
| (5) divided by the usage of such customers
identified |
18 |
| in paragraph (1),
|
19 |
| provided that the transition charge shall never be less than
|
20 |
| zero.
|
21 |
| "Unbundled service" means a component or constituent part
|
22 |
| of a tariffed service which the electric utility subsequently
|
23 |
| offers separately to its customers.
|
24 |
| (Source: P.A. 94-977, eff. 6-30-06.)
|
25 |
| (220 ILCS 5/16-103)
|
|
|
|
09500SB1299ham002 |
- 17 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| Sec. 16-103. Service obligations of electric utilities.
|
2 |
| (a) An electric utility shall continue offering to
retail |
3 |
| customers each tariffed service that it offered as a
distinct |
4 |
| and identifiable service on the effective date of
this |
5 |
| amendatory Act of 1997 until the service is (i) declared
|
6 |
| competitive pursuant to Section 16-113, or (ii) abandoned
|
7 |
| pursuant to Section 8-508. Nothing in this subsection shall be
|
8 |
| construed as limiting an electric utility's right to propose,
|
9 |
| or the Commission's power to approve, allow or order
|
10 |
| modifications in the rates, terms and conditions for such
|
11 |
| services pursuant to Article IX or Section 16-111 of this Act.
|
12 |
| (b) An electric utility shall also offer, as tariffed
|
13 |
| services, delivery services in accordance with this Article,
|
14 |
| the power purchase options described in Section 16-110 and
|
15 |
| real-time pricing as provided in Section 16-107.
|
16 |
| (c) Notwithstanding any other provision of this Article,
|
17 |
| each electric utility shall continue offering to all
|
18 |
| residential customers and to all small commercial retail
|
19 |
| customers in its service area, as a tariffed service, bundled |
20 |
| electric power
and
energy delivered to the customer's premises |
21 |
| consistent with
the bundled utility service provided by the |
22 |
| electric utility
on the effective date of this amendatory Act |
23 |
| of 1997. Upon
declaration of the provision of electric power |
24 |
| and energy as
competitive, the electric utility shall continue |
25 |
| to offer to
such customers, as a tariffed service, bundled |
26 |
| service options
at rates which reflect recovery of all cost |
|
|
|
09500SB1299ham002 |
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LRB095 03672 MJR 37412 a |
|
|
1 |
| components for
providing the service. For those components of |
2 |
| the service
which have been declared competitive, cost shall be |
3 |
| the market
based prices. Market based prices as referred to |
4 |
| herein shall
mean, for electric power and energy, either (i) |
5 |
| those prices
for electric power and energy determined as |
6 |
| provided in
Section 16-112, or (ii) the electric utility's cost |
7 |
| of
obtaining the electric power and energy at wholesale through |
8 |
| a
competitive bidding or other arms-length acquisition |
9 |
| process.
|
10 |
| (c-1) Electric utilities that serve at least 1,000,000 |
11 |
| customers must provide tariffed service to Unit Owners' |
12 |
| Associations, as defined by Section 2 of the Condominium |
13 |
| Property Act, for condominium properties that are not |
14 |
| restricted to nonresidential use at rates that do not exceed |
15 |
| the rates offered to residential customers. Within 10 days |
16 |
| after the effective date of this amendatory Act of the 95th |
17 |
| General Assembly, each electric utility shall provide the |
18 |
| tariffed service to Unit Owners' Associations required by this |
19 |
| subsection and shall reinstate any all-electric discount |
20 |
| applicable to any Unit Owners' Association that received such a |
21 |
| discount on December 31, 2006. |
22 |
| (d) Any residential or small commercial retail customer
|
23 |
| which elects delivery services is entitled to return to the
|
24 |
| electric utility's bundled utility tariffed service offering
|
25 |
| provided in accordance with subsection (c) of this Section
upon |
26 |
| payment of a reasonable administrative fee which shall be
set |
|
|
|
09500SB1299ham002 |
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LRB095 03672 MJR 37412 a |
|
|
1 |
| forth in the tariff, provided, however, that the electric
|
2 |
| utility shall be entitled to impose the condition that such
|
3 |
| customer may not elect delivery services for up to 24 months
|
4 |
| thereafter.
|
5 |
| (e) The Commission shall not require an electric utility
to |
6 |
| offer any tariffed service other than the services required
by |
7 |
| this Section, and shall not require an electric utility to
|
8 |
| offer any competitive service.
|
9 |
| (Source: P.A. 90-561, eff. 12-16-97.)
|
10 |
| (220 ILCS 5/16-118)
|
11 |
| Sec. 16-118. Services provided by electric utilities to
|
12 |
| alternative retail electric suppliers.
|
13 |
| (a) It is in the best interest of Illinois energy
consumers |
14 |
| to promote fair and open competition in the
provision of |
15 |
| electric power and energy and to prevent
anticompetitive |
16 |
| practices in the provision of electric power
and energy.
|
17 |
| Therefore, to the extent an electric utility provides electric |
18 |
| power and energy
or delivery services to alternative retail |
19 |
| electric suppliers and such services
are not subject to the |
20 |
| jurisdiction of the Federal Energy
Regulatory Commission, and |
21 |
| are not competitive services, they
shall be provided through |
22 |
| tariffs that are filed with the
Commission, pursuant to Article |
23 |
| IX of this Act.
Each electric utility shall permit alternative
|
24 |
| retail electric suppliers to interconnect facilities to those
|
25 |
| owned by the utility provided they meet established standards
|
|
|
|
09500SB1299ham002 |
- 20 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| for such interconnection, and may provide standby or other
|
2 |
| services to alternative retail electric suppliers. The
|
3 |
| alternative retail electric supplier shall sign a contract
|
4 |
| setting forth the prices, terms and conditions for
|
5 |
| interconnection with the electric utility and the prices,
terms |
6 |
| and conditions for services provided by the electric
utility to |
7 |
| the alternative retail electric supplier in
connection with the |
8 |
| delivery by the electric utility of
electric power and energy |
9 |
| supplied by the alternative retail
electric supplier.
|
10 |
| (b) An electric utility shall file a tariff pursuant to |
11 |
| Article IX of the
Act that would allow alternative retail |
12 |
| electric suppliers or electric
utilities other than the |
13 |
| electric utility in whose service area retail
customers are
|
14 |
| located to issue single bills to the retail customers for both |
15 |
| the services
provided by such alternative retail electric |
16 |
| supplier or other electric utility
and the delivery services |
17 |
| provided by the electric utility to such customers.
The tariff |
18 |
| filed pursuant to this subsection shall (i) require partial |
19 |
| payments
made by retail customers to be credited first to the |
20 |
| electric utility's
tariffed services, (ii) impose commercially |
21 |
| reasonable terms with respect to
credit and collection, |
22 |
| including requests for deposits, (iii) retain the
electric |
23 |
| utility's right to disconnect the retail customers, if it does |
24 |
| not
receive payment for its tariffed services, in the same |
25 |
| manner that it would be
permitted to if it had billed for the |
26 |
| services itself, and (iv) require the
alternative retail |
|
|
|
09500SB1299ham002 |
- 21 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| electric supplier or other electric utility that elects the
|
2 |
| billing option provided by this tariff to include on each bill |
3 |
| to retail
customers an identification of the electric utility |
4 |
| providing the delivery
services and a listing of the charges |
5 |
| applicable to such services. The tariff
filed pursuant to this |
6 |
| subsection may also include other just and reasonable
terms and |
7 |
| conditions. In addition,
an electric utility, an alternative |
8 |
| retail electric
supplier or electric utility other than the |
9 |
| electric utility
in whose service area the customer is located, |
10 |
| and a customer
served by such alternative retail electric |
11 |
| supplier or other
electric utility, may enter into an agreement |
12 |
| pursuant to
which the alternative retail electric supplier or |
13 |
| other
electric utility pays the charges specified in Section |
14 |
| 16-108,
or other customer-related charges, including taxes and |
15 |
| fees,
in lieu of such charges being recovered by the electric
|
16 |
| utility directly from the customer. |
17 |
| (c) An electric utility with more than 100,000 customers |
18 |
| shall file a tariff pursuant to Article IX of this Act that |
19 |
| provides alternative retail electric suppliers, and electric |
20 |
| utilities other than the electric utility in whose service area |
21 |
| the retail customers are located with the option to have the |
22 |
| electric utility purchase their receivables for power and |
23 |
| energy service provided to retail customers with a |
24 |
| non-coincident peak demand of less than 400 kilowatts. |
25 |
| Receivables for power and energy of alternative retail electric |
26 |
| suppliers or electric utilities other than the electric utility |
|
|
|
09500SB1299ham002 |
- 22 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| in whose service area the retail customers are located shall be |
2 |
| purchased by the electric utility at a just and reasonable |
3 |
| discount rate to be reviewed and approved by the Commission |
4 |
| after notice and hearing. The discount rate shall be based on |
5 |
| the electric utility's historical bad debt and any reasonable |
6 |
| start-up costs and administrative costs associated with the |
7 |
| electric utility's purchase of receivables. The discounted |
8 |
| rate for purchase of receivables shall be included in the |
9 |
| tariff filed pursuant to this subsection (c). The discount rate |
10 |
| filed pursuant to this subsection shall be subject to periodic |
11 |
| Commission review. The electric utility shall impose the same |
12 |
| terms on retail customers with respect to credit and |
13 |
| collection, including requests for deposits, and retain the |
14 |
| electric utility's right to disconnect the retail customers, if |
15 |
| it does not receive payment for its tariffed services or |
16 |
| purchased receivables, in the same manner that it would be |
17 |
| permitted to if the retail customers purchased power and energy |
18 |
| from the electric utility. The tariff filed pursuant to this |
19 |
| subsection (c) may also include other just and reasonable terms |
20 |
| and conditions and shall provide for the prudently incurred |
21 |
| costs associated with the provision of this service pursuant to |
22 |
| this subsection (c). |
23 |
| (d) An electric utility with more than 100,000 customers |
24 |
| shall file a tariff pursuant to Article IX of this Act that |
25 |
| would provide alternative retail electric suppliers or |
26 |
| electric utilities other than the electric utility in whose |
|
|
|
09500SB1299ham002 |
- 23 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| service area retail customers are located with the option to |
2 |
| have the electric utility produce and provide single bills to |
3 |
| the retail customers for both the electric power and energy |
4 |
| service provided by the alternative retail electric supplier or |
5 |
| other electric utility and the delivery services provided by |
6 |
| the electric utility to the customers. The tariffs filed |
7 |
| pursuant to this subsection shall require the electric utility |
8 |
| to collect and remit customer payments for electric power and |
9 |
| energy service provided by alternative retail electric |
10 |
| suppliers or electric utilities other than the electric utility |
11 |
| in whose service area retail customers are located. The tariff |
12 |
| filed pursuant to this subsection shall require the electric |
13 |
| utility to include on each bill to retail customers an |
14 |
| identification of the alternative retail electric supplier or |
15 |
| other electric utility that elects the billing option. The |
16 |
| tariff filed pursuant to this subsection (d) may also include |
17 |
| other just and reasonable terms and conditions and provide for |
18 |
| the recovery of prudently incurred costs associated with the |
19 |
| provision of service pursuant to this subsection (d). The costs |
20 |
| associated with the provision of service pursuant to this |
21 |
| section shall be subject to periodic Commission review.
|
22 |
| (e) Within 45 days after the effective date of this |
23 |
| amendatory Act of the 95th General Assembly, each electric |
24 |
| utility with more than 100,000 customers in this State shall |
25 |
| file a tariff pursuant to Article IX of this Act that provides |
26 |
| alternative retail electric suppliers with the option to have |
|
|
|
09500SB1299ham002 |
- 24 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| the electric utility purchase 2 billing cycles worth of |
2 |
| uncollectible receivables for power and energy service |
3 |
| provided to a retail customer with a non-coincident peak demand |
4 |
| of less than 400 kilowatts upon returning that customer to that |
5 |
| electric utility for delivery and energy service after that |
6 |
| alternative retail electric supplier has made reasonable |
7 |
| collection efforts on that account. These receivables will be |
8 |
| purchased at discounted rates based on historical bad debt for |
9 |
| receivables that are outstanding for a similar length of time. |
10 |
| The electric utility retains the right to impose the same terms |
11 |
| on these retail customers with respect to credit and |
12 |
| collection, including requests for deposits, and retain the |
13 |
| right to disconnect these retail customers in the same manner |
14 |
| that it would be permitted to if the customers had purchased |
15 |
| power and energy from the utility. The electric utility shall |
16 |
| recover the cost of such uncollectable receivables purchased, |
17 |
| as well as any prudently incurred administrative expenses |
18 |
| incurred in connection with this subsection through its tariff |
19 |
| filing implementing this service with the Commission but shall |
20 |
| not permit the double recovery of utility bad debt expenses |
21 |
| from customers.
|
22 |
| (Source: P.A. 90-561, eff. 12-16-97.)
|
23 |
| (220 ILCS 5/20-130 new) |
24 |
| Sec. 20-130. Retail choice and referral programs. |
25 |
| (a) The Commission shall have the authority to establish |
|
|
|
09500SB1299ham002 |
- 25 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| retail choice and referral programs to be administered by an |
2 |
| electric utility or the State in which residential and small |
3 |
| commercial customers receive incentives, including, but not |
4 |
| limited to, discounted rate introductory offers for switching |
5 |
| to participating electric suppliers. |
6 |
| (b) Reasonable costs associated with the implementation |
7 |
| and operation of customer choice and referral programs may be |
8 |
| recovered in an electric utility's distribution rates. |
9 |
| Reasonable costs associated with the implementation and |
10 |
| operation of a customer choice program may also be recovered |
11 |
| from retail electric suppliers participating in a customer |
12 |
| choice and referral program. In no event, however, shall the |
13 |
| Commission mandate a cost recovery mechanism without first |
14 |
| providing all interested parties notice and an opportunity to |
15 |
| be heard in a hearing before the Commission. |
16 |
| (c) The Office of Retail Market Development shall serve as |
17 |
| the clearinghouse for the development of retail choice and |
18 |
| referral programs and shall work with electric utilities and |
19 |
| interested parties on a continuous basis to implement and |
20 |
| improve upon the programs. Nothing in this Section, however, |
21 |
| shall prevent an electric utility on its own accord from |
22 |
| implementing retail choice and referral programs. |
23 |
| (d) Only customers that qualify for utility service shall |
24 |
| be eligible for retail choice and referral programs. |
25 |
| (e) The Office of Retail Market Development shall |
26 |
| immediately upon the effective date of this amendatory Act of |
|
|
|
09500SB1299ham002 |
- 26 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| the 95th General Assembly explore for possible implementation |
2 |
| on as expedited basis as possible the following retail choice |
3 |
| and referral programs: |
4 |
| (1) An introductory fixed discount program in which |
5 |
| suppliers participating in the program offer customers a |
6 |
| fixed percentage discount off of the electric utility's |
7 |
| supply rate for a set number of billing periods. Customers |
8 |
| would be able to enroll in the program by using an online |
9 |
| enrollment form, completing an enrollment card found in |
10 |
| their monthly electric utility bill, or by calling a |
11 |
| toll-free number. Customers would be free to withdraw from |
12 |
| the program at any time and select another alternative |
13 |
| retail electric supplier or return to the electric utility. |
14 |
| (2) A new customer program in which electric utilities |
15 |
| would offer consumers initiating new electric service a |
16 |
| choice of offers from participating electric suppliers to |
17 |
| provide the consumer's electric supply service. Customers |
18 |
| expressing a preference for a specific electric supplier |
19 |
| would be enrolled with that supplier. Customers not |
20 |
| expressing a preference for a specific electric supplier |
21 |
| would be offered the opportunity to enroll with an electric |
22 |
| supplier selected randomly on a rotating basis. |
23 |
| (3) A customer service call center referral program in |
24 |
| which customers calling an electric utility's call center |
25 |
| would be offered enrollment with an alternative retail |
26 |
| electric supplier and informed that they have the option to |
|
|
|
09500SB1299ham002 |
- 27 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| receive immediate savings or introductory offers by |
2 |
| participating in the referral program. Customers choosing |
3 |
| to participate would be transferred to a customer service |
4 |
| representative for the program and would either select the |
5 |
| electric supplier from which they would like to take |
6 |
| service or be placed with a participating electric supplier |
7 |
| chosen at random on a rotating basis.
|
8 |
| Nothing in this Section shall prevent the Office of Retail |
9 |
| Market Development or the Commission from considering retail |
10 |
| choice and referral programs in addition to the programs |
11 |
| outlined in this Section.
|
12 |
| Section 10. The Consumer Fraud and Deceptive Business |
13 |
| Practices Act is amended by changing Section 2EE as follows:
|
14 |
| (815 ILCS 505/2EE)
|
15 |
| Sec. 2EE. Electric service provider selection. An electric |
16 |
| service provider shall not submit or execute
a change in a |
17 |
| subscriber's selection of a provider of electric
service unless |
18 |
| and until (i) the provider first discloses all material terms |
19 |
| and conditions of the offer to the subscriber; (ii) the |
20 |
| provider has obtained the subscriber's express agreement to |
21 |
| accept the offer after the disclosure of all material terms and |
22 |
| conditions of the offer; and (iii) the provider has confirmed |
23 |
| the request for a change in accordance with one of the |
24 |
| following procedures
except as follows :
|
|
|
|
09500SB1299ham002 |
- 28 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| (a) The new electric service provider has obtained the
|
2 |
| subscriber's
customer's written or electronically signed
|
3 |
| authorization in a form that meets the
following requirements:
|
4 |
| (1) An electric service provider shall obtain any
|
5 |
| necessary written authorization from a subscriber for a
|
6 |
| change in electric service by using a letter of agency as
|
7 |
| specified in this
Section. Any letter of agency that does
|
8 |
| not conform with this
Section is invalid.
|
9 |
| (2) The letter of agency shall be a separate
document |
10 |
| (an easily separable document containing only
the |
11 |
| authorization language described in subparagraph (a) (5)
of |
12 |
| this
Section) whose sole purpose is to authorize an
|
13 |
| electric service provider change. The letter of agency
must |
14 |
| be signed and dated by the subscriber requesting the
|
15 |
| electric service provider change.
|
16 |
| (3) The letter of agency shall not be combined with
|
17 |
| inducements of any kind on the same document.
|
18 |
| (4) Notwithstanding subparagraphs (a) (1) and (a) (2) of
|
19 |
| this
Section, the letter of agency may be combined with
|
20 |
| checks that contain only the required letter of agency
|
21 |
| language prescribed in subparagraph (a)(5)
paragraph (5)
|
22 |
| of this Section and
the necessary information to make the |
23 |
| check a negotiable
instrument. The letter of agency check |
24 |
| shall not contain
any promotional language or material. The |
25 |
| letter of
agency check shall contain in easily readable, |
26 |
| bold-face
type on the face of the check, a notice that the |
|
|
|
09500SB1299ham002 |
- 29 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| consumer
is authorizing an electric service provider |
2 |
| change by
signing the check. The letter of agency language |
3 |
| also
shall be placed near the signature line on the back of
|
4 |
| the check.
|
5 |
| (5) At a minimum, the letter of agency must be
printed |
6 |
| with a print of sufficient size to be clearly
legible, and |
7 |
| must contain clear and unambiguous language
that confirms:
|
8 |
| (i) The subscriber's billing name and address;
|
9 |
| (ii) The decision to change the electric service
|
10 |
| provider from the current provider to the
prospective |
11 |
| provider;
|
12 |
| (iii) The terms, conditions, and nature of the
|
13 |
| service to be provided to the subscriber must be
|
14 |
| clearly and conspicuously disclosed, in writing, and
|
15 |
| an electric service provider must directly establish
|
16 |
| the rates for the service contracted for by the
|
17 |
| subscriber; and
|
18 |
| (iv) That the subscriber understand that any
|
19 |
| electric service provider selection the subscriber
|
20 |
| chooses may involve a charge to the subscriber for
|
21 |
| changing the subscriber's electric service provider.
|
22 |
| (6) Letters of agency shall not suggest or require
that |
23 |
| a subscriber take some action in order to retain the
|
24 |
| subscriber's current electric service provider.
|
25 |
| (7) If any portion of a letter of agency is
translated |
26 |
| into another language, then all portions of
the letter of |
|
|
|
09500SB1299ham002 |
- 30 - |
LRB095 03672 MJR 37412 a |
|
|
1 |
| agency must be translated into that
language.
|
2 |
| (b) An appropriately qualified independent third party has |
3 |
| obtained, in accordance with the procedures set forth in this |
4 |
| subsection (b), the subscriber's oral authorization to change |
5 |
| electric suppliers that confirms and includes appropriate |
6 |
| verification data. The independent third party (i) must not be |
7 |
| owned, managed, controlled, or directed by the supplier or the |
8 |
| supplier's marketing agent; (ii) must not have any financial |
9 |
| incentive to confirm supplier change requests for the supplier |
10 |
| or the supplier's marketing agent; and (iii) must operate in a |
11 |
| location physically separate from the supplier or the |
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| supplier's marketing agent.
|
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| Automated third-party verification systems and 3-way |
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| conference calls may be used for verification purposes so long |
15 |
| as the other requirements of this subsection (b) are satisfied. |
16 |
| A supplier or supplier's sales representative initiating a |
17 |
| 3-way conference call or a call through an automated |
18 |
| verification system must drop off the call once the 3-way |
19 |
| connection has been established. |
20 |
| All third-party verification methods shall elicit, at a |
21 |
| minimum, the following information: (i) the identify of the |
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| subscriber; (ii) confirmation that the person on the call is |
23 |
| authorized to make the supplier change; (iii) confirmation that |
24 |
| the person on the call wants to make the supplier change; (iv) |
25 |
| the names of the suppliers affected by the change; (v) the |
26 |
| service address of the supply to be switched; and (vi) the |
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| price of the service to be supplied and the material terms and |
2 |
| conditions of the service being offered, including whether any |
3 |
| early termination fees apply. Third-party verifiers may not |
4 |
| market the supplier's services by providing additional |
5 |
| information, including information regarding procedures to |
6 |
| block or otherwise freeze an account against further changes. |
7 |
| All third-party verifications shall be conducted in the |
8 |
| same language that was used in the underlying sales transaction |
9 |
| and shall be recorded in their entirety. Submitting suppliers |
10 |
| shall maintain and preserve audio records of verification of |
11 |
| subscriber authorization for a minimum period of 2 years after |
12 |
| obtaining the verification. Automated systems must provide |
13 |
| consumers with an option to speak with a live person at any |
14 |
| time during the call.
|
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| (c) When a subscriber initiates the call to the prospective |
16 |
| electric supplier and the prospective electric supplier has, |
17 |
| with the consent of the customer, made a date-stamped and |
18 |
| time-stamped audio recording that elicits, at a minimum, the |
19 |
| following information: |
20 |
| (1) the identity of the subscriber; |
21 |
| (2) confirmation that the person on the call is |
22 |
| authorized to make the supplier change; |
23 |
| (3) confirmation that the person on the call wants to |
24 |
| make the supplier change; |
25 |
| (4) the names of the suppliers affected by the change; |
26 |
| (5) the service address of the supply to be switched; |
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LRB095 03672 MJR 37412 a |
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| and |
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| (6) the price of the service to be supplied and the |
3 |
| material terms and conditions of the service being offered, |
4 |
| including whether any early termination fees apply.
|
5 |
| Submitting suppliers shall maintain and preserve the audio |
6 |
| records containing the information set forth above for a |
7 |
| minimum period of 2 years.
|
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| (d) Complaints may be filed with the Illinois Commerce |
9 |
| Commission under this Section by a subscriber whose electric |
10 |
| service has been provided by an electric service supplier in a |
11 |
| manner not in compliance with this Section. If, after notice |
12 |
| and hearing, the Commission finds that a electric service |
13 |
| provider has violated this Section, the Commission may in its |
14 |
| discretion do any one or more of the following: |
15 |
| (1) Require the violating electric service provider to |
16 |
| refund to the subscriber charges collected in excess of |
17 |
| those that would have been charged by the subscriber's |
18 |
| authorized electric service provider. |
19 |
| (2) Require the violating electric service provider to |
20 |
| pay to the subscriber's authorized electric supplier the |
21 |
| amount the authorized electric supplier would have |
22 |
| collected for the electric service. The Commission is |
23 |
| authorized to reduce this payment by any amount already |
24 |
| paid by the violating electric supplier to the subscriber's |
25 |
| authorized provider for electric service. |
26 |
| (3) Require the violating electric subscriber to pay a |
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| fine of up to $1,000 into the Public Utility Fund for each |
2 |
| repeated and intentional violation of this Section. |
3 |
| (4) Issue a cease and desist order. |
4 |
| (5) For a pattern of violation of this Section or for |
5 |
| intentionally violating a cease and desist order, revoke |
6 |
| the violating provider's certificate of service authority.
|
7 |
| (e) For purposes of this
Section, "electric service |
8 |
| provider"
shall have the meaning given that phrase in
Section |
9 |
| 6.5 of the
Attorney General Act.
|
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| (Source: P.A. 90-561, eff. 12-16-97.)
|
11 |
| Section 99. Effective date. This Act takes effect upon |
12 |
| becoming law.".
|