State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]
[ Senate Amendment 003 ]


92_SB0694eng

 
SB694 Engrossed                                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
 
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 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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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.

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