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| [ Senate Amendment 003 ] |
92_SB0694enr SB694 Enrolled LRB9205928JSpc 1 AN ACT in relation to utilities. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Public Utilities Act is amended by adding 5 Article XIX as follows: 6 (220 ILCS 5/Art. XIX heading new) 7 ARTICLE XIX. ALTERNATIVE GAS SUPPLIER LAW 8 (220 ILCS 5/19-100 new) 9 Sec. 19-100. Short title. This Article may be cited as 10 the Alternative Gas Supplier Law. 11 (220 ILCS 5/19-105 new) 12 Sec. 19-105. Definitions. For the purposes of this 13 Article, the following terms shall be defined as set forth 14 in this Section. 15 "Alternative gas supplier" means every person, 16 cooperative, corporation, municipal corporation, company, 17 association, joint stock company or association, firm, 18 partnership, individual, or other entity, their lessees, 19 trustees, or receivers appointed by any court whatsoever, 20 that offers gas for sale, lease, or in exchange for other 21 value received to one or more customers, or that engages in 22 the furnishing of gas to one or more customers, and shall 23 include affiliated interests of a gas utility, resellers, 24 aggregators and marketers, but shall not include (i) gas 25 utilities (or any agent of the gas utility to the extent the 26 gas utility provides tariffed services to customers through 27 an agent); (ii) public utilities that are owned and operated 28 by any political subdivision, public institution of higher 29 education or municipal corporation of this State, or public SB694 Enrolled -2- LRB9205928JSpc 1 utilities that are owned by a political subdivision, public 2 institution of higher education, or municipal corporation and 3 operated by any of its lessees or operating agents; (iii) 4 residential natural gas cooperatives that are not-for-profit 5 corporations established for the purpose of administering and 6 operating, on a cooperative basis, the furnishing of natural 7 gas to residences for the benefit of their members who are 8 residential consumers of natural gas; and (iv) the ownership 9 or operation of a facility that sells compressed natural gas 10 at retail to the public for use only as a motor vehicle fuel 11 and the selling of compressed natural gas at retail to the 12 public for use only as a motor vehicle fuel. 13 "Gas utility" means a public utility, as defined in 14 Section 3-105 of this Act, that has a franchise, license, 15 permit, or right to furnish or sell gas or transportation 16 services to customers within a service area. 17 "Residential customer" means a customer who receives gas 18 utility service for household purposes distributed to a 19 dwelling of 2 or fewer units which is billed under a 20 residential rate or gas utility service for household 21 purposes distributed to a dwelling unit or units which is 22 billed under a residential rate and is registered by a 23 separate meter for each dwelling unit. 24 "Service area" means (i) the geographic area within which 25 a gas utility was lawfully entitled to provide gas to 26 customers as of the effective date of this amendatory Act of 27 the 92nd General Assembly and includes (ii) the location of 28 any customer to which the gas utility was lawfully providing 29 gas utility services on such effective date. 30 "Tariffed service" means a service provided to customers 31 by a gas utility as defined by its rates on file with the 32 Commission pursuant to the provisions of Article IX of this 33 Act. 34 "Transportation services" means those services provided SB694 Enrolled -3- LRB9205928JSpc 1 by the gas utility that are necessary in order for the 2 storage, transmission and distribution systems to function so 3 that customers located in the gas utility's service area can 4 receive gas from suppliers other than the gas utility and 5 shall include, without limitation, standard metering and 6 billing services. 7 (220 ILCS 5/19-110 new) 8 Sec. 19-110. Certification of alternative gas suppliers. 9 (a) The provisions of this Section shall apply only to 10 alternative gas suppliers serving or seeking to serve 11 residential customers and only to the extent such alternative 12 gas suppliers provide services to residential customers. 13 (b) An alternative gas supplier must obtain a 14 certificate of service authority from the Commission in 15 accordance with this Section before serving any customer or 16 other user located in this State. An alternative gas 17 supplier may request, and the Commission may grant, a 18 certificate of service authority for the entire State or for 19 a specified geographic area of the State. A person, 20 corporation, or other entity acting as an alternative gas 21 supplier on the effective date of this amendatory Act of the 22 92nd General Assembly shall have 180 days from the effective 23 date of this amendatory Act of the 92nd General Assembly to 24 comply with the requirements of this Section in order to 25 continue to operate as an alternative gas supplier. 26 (c) An alternative gas supplier seeking a certificate of 27 service authority shall file with the Commission a verified 28 application containing information showing that the applicant 29 meets the requirements of this Section. The alternative gas 30 supplier shall publish notice of its application in the 31 official State newspaper within 10 days following the date of 32 its filing. No later than 45 days after the application is 33 properly filed with the Commission, and such notice is SB694 Enrolled -4- LRB9205928JSpc 1 published, the Commission shall issue its order granting or 2 denying the application. 3 (d) An application for a certificate of service 4 authority shall identify the area or areas in which the 5 applicant intends to offer service and the types of services 6 it intends to offer. Applicants that seek to serve 7 residential customers within a geographic area that is 8 smaller than a gas utility's service area shall submit 9 evidence demonstrating that the designation of this smaller 10 area does not violate Section 19-115. An applicant may state 11 in its application for certification any limitations that 12 will be imposed on the number of customers or maximum load to 13 be served. 14 (e) The Commission shall grant the application for a 15 certificate of service authority if it makes the findings set 16 forth in this subsection based on the verified application 17 and such other information as the applicant may submit. 18 (1) That the applicant possess sufficient 19 technical, financial, and managerial resources and 20 abilities to provide the service for which it seeks a 21 certificate of service authority. In determining the 22 level of technical, financial, and managerial resources 23 and abilities which the applicant must demonstrate, the 24 Commission shall consider the characteristics, including 25 the size and financial sophistication of the customers 26 that the applicant seeks to serve, and shall consider 27 whether the applicant seeks to provide gas using 28 property, plant, and equipment that it owns, controls, or 29 operates. 30 (2) That the applicant will comply with all 31 applicable federal, State, regional, and industry rules, 32 policies, practices, and procedures for the use, 33 operation, and maintenance of the safety, integrity, and 34 reliability of the gas transmission system. SB694 Enrolled -5- LRB9205928JSpc 1 (3) That the applicant will comply with such 2 informational or reporting requirements as the Commission 3 may by rule establish. 4 (4) That the area to be served by the applicant and 5 any limitations it proposes on the number of customers or 6 maximum amount of load to be served meet the provisions 7 of Section 19-115, provided, that if the applicant seeks 8 to serve an area smaller than the service area of a gas 9 utility or proposes other limitations on the number of 10 customers or maximum amount of load to be served, the 11 Commission can extend the time for considering such a 12 certificate request by up to 90 days, and can schedule 13 hearings on such a request. 14 (5) That the applicant will comply with all other 15 applicable laws and rules. 16 (f) The Commission shall have the authority to 17 promulgate rules to carry out the provisions of this Section. 18 Within 30 days after the effective date of this amendatory 19 Act of the 92nd General Assembly, the Commission shall adopt 20 an emergency rule or rules applicable to the certification of 21 those gas suppliers that seek to serve residential customers. 22 Within 180 days of the effective date of this amendatory Act 23 of the 92nd General Assembly, the Commission shall adopt 24 rules that specify criteria which, if met by any such 25 alternative gas supplier, shall constitute the demonstration 26 of technical, financial, and managerial resources and 27 abilities to provide service required by item (1) of 28 subsection (e) of this Section, such as a requirement to post 29 a bond or letter of credit, from a responsible surety or 30 financial institution, of sufficient size for the nature and 31 scope of the services to be provided, demonstration of 32 adequate insurance for the scope and nature of the services 33 to be provided, and experience in providing similar services 34 in other jurisdictions. SB694 Enrolled -6- LRB9205928JSpc 1 (220 ILCS 5/19-115 new) 2 Sec. 19-115. Obligations of alternative gas suppliers. 3 (a) The provisions of this Section shall apply only to 4 alternative gas suppliers serving or seeking to serve 5 residential customers and only to the extent such alternative 6 gas suppliers provide services to residential customers. 7 (b) An alternative gas supplier shall: 8 (1) comply with the requirements imposed on public 9 utilities by Sections 8-201 through 8-207, 8-301, 8-505 10 and 8-507 of this Act, to the extent that these Sections 11 have application to the services being offered by the 12 alternative gas supplier; and 13 (2) continue to comply with the requirements for 14 certification stated in Section 19-110. 15 (c) An alternative gas supplier shall obtain verifiable 16 authorization from a customer, in a form or manner approved 17 by the Commission, before the customer is switched from 18 another supplier. 19 (d) No alternative gas supplier shall: 20 (1) enter into or employ any arrangements which 21 have the effect of preventing any customer from having 22 access to the services of the gas utility in whose 23 service area the customer is located; or 24 (2) charge customers for such access. 25 (e) An alternative gas supplier that is certified to 26 serve residential customers shall not: 27 (1) deny service to a customer or group of 28 customers nor establish any differences as to prices, 29 terms, conditions, services, products, facilities, or in 30 any other respect, whereby such denial or differences are 31 based upon race, gender, or income; or 32 (2) deny service based on locality, nor establish 33 any unreasonable difference as to prices, terms, 34 conditions, services, products, or facilities as between SB694 Enrolled -7- LRB9205928JSpc 1 localities. 2 (f) An alternative gas supplier shall comply with the 3 following requirements with respect to the marketing, 4 offering, and provision of products or services: 5 (1) Any marketing materials which make statements 6 concerning prices, terms, and conditions of service shall 7 contain information that adequately discloses the prices, 8 terms and conditions of the products or services. 9 (2) Before any customer is switched from another 10 supplier, the alternative gas supplier shall give the 11 customer written information that adequately discloses, 12 in plain language, the prices, terms, and conditions of 13 the products and services being offered and sold to the 14 customer. 15 (3) The alternative gas supplier shall provide to 16 the customer: 17 (A) itemized billing statements that describe 18 the products and services provided to the customer 19 and their prices; and 20 (B) an additional statement, at least 21 annually, that adequately discloses the average 22 monthly prices, and the terms and conditions, of the 23 products and services sold to the customer. 24 (g) An alternative gas supplier may limit the overall 25 size or availability of a service offering by specifying one 26 or more of the following: 27 (1) a maximum number of customers and maximum 28 amount of gas load to be served; 29 (2) time period during which the offering will be 30 available; or 31 (3) other comparable limitation, but not including 32 the geographic locations of customers within the area 33 which the alternative gas supplier is certificated to 34 serve. SB694 Enrolled -8- LRB9205928JSpc 1 The alternative gas supplier shall file the terms and 2 conditions of such service offering including the applicable 3 limitations with the Commission prior to making the service 4 offering available to customers. 5 (h) Nothing in this Section shall be construed as 6 preventing an alternative gas supplier that is an affiliate 7 of, or which contracts with, (i) an industry or trade 8 organization or association, (ii) a membership organization 9 or association that exists for a purpose other than the 10 purchase of gas, or (iii) another organization that meets 11 criteria established in a rule adopted by the Commission from 12 offering through the organization or association services at 13 prices, terms and conditions that are available solely to the 14 members of the organization or association. 15 (220 ILCS 5/19-120 new) 16 Sec. 19-120. Commission oversight of services provided 17 by gas suppliers. 18 (a) The provisions of this Section shall apply only to 19 alternative gas suppliers serving or seeking to serve 20 residential customers and only to the extent such alternative 21 gas suppliers provide services to residential customers. 22 (b) The Commission shall have jurisdiction in accordance 23 with the provisions of Article X of this Act to entertain and 24 dispose of any complaint against any alternative gas supplier 25 alleging that: 26 (1) the alternative gas supplier has violated or is 27 in nonconformance with any applicable provisions of 28 Section 19-110 or Section 19-115; 29 (2) an alternative gas supplier has failed to 30 provide service in accordance with the terms of its 31 contract or contracts with a customer or customers; 32 (3) the alternative gas supplier has violated or is 33 in nonconformance with the transportation services tariff SB694 Enrolled -9- LRB9205928JSpc 1 of, or any of its agreements relating to transportation 2 services with, the gas utility or municipal system 3 providing transportation services; or 4 (4) the alternative gas supplier has violated or 5 failed to comply with the requirements of Sections 8-201 6 through 8-207, 8-301, 8-505, or 8-507 of this Act as made 7 applicable to alternative gas suppliers. 8 (c) The Commission shall have authority after notice and 9 hearing held on complaint or on the Commission's own motion 10 to: 11 (1) order an alternative gas supplier to cease and 12 desist, or correct, any violation of or nonconformance 13 with the provisions of Section 19-110 or 19-115; 14 (2) impose financial penalties for violations of or 15 nonconformances with the provisions of Section 19-110 or 16 19-115, not to exceed (i) $10,000 per occurrence or (ii) 17 $30,000 per day for those violations or nonconformances 18 which continue after the Commission issues a 19 cease-and-desist order; and 20 (3) alter, modify, revoke, or suspend the 21 certificate of service authority of an alternative gas 22 supplier for substantial or repeated violations of or 23 nonconformances with the provisions of Section 19-110 or 24 19-115. 25 Section 99. Effective date. This Act takes effect upon 26 becoming law.