Public Act 095-0700
 
SB1299 Enrolled LRB095 03672 MJR 23699 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Public Utilities Act is amended by adding
Section 20-130 and by changing Sections 8-406, 8-503, and
16-118 as follows:
 
    (220 ILCS 5/8-406)  (from Ch. 111 2/3, par. 8-406)
    Sec. 8-406. Certificate of public convenience and
necessity.
    (a) No public utility not owning any city or village
franchise nor engaged in performing any public service or in
furnishing any product or commodity within this State as of
July 1, 1921 and not possessing a certificate of public
convenience and necessity from the Illinois Commerce
Commission, the State Public Utilities Commission or the Public
Utilities Commission, at the time this amendatory Act of 1985
goes into effect, shall transact any business in this State
until it shall have obtained a certificate from the Commission
that public convenience and necessity require the transaction
of such business.
    (b) No public utility shall begin the construction of any
new plant, equipment, property or facility which is not in
substitution of any existing plant, equipment, property or
facility or any extension or alteration thereof or in addition
thereto, unless and until it shall have obtained from the
Commission a certificate that public convenience and necessity
require such construction. Whenever after a hearing the
Commission determines that any new construction or the
transaction of any business by a public utility will promote
the public convenience and is necessary thereto, it shall have
the power to issue certificates of public convenience and
necessity. The Commission shall determine that proposed
construction will promote the public convenience and necessity
only if the utility demonstrates: (1) that the proposed
construction is necessary to provide adequate, reliable, and
efficient service to its customers and is the least-cost means
of satisfying the service needs of its customers or that the
proposed construction will promote the development of an
effectively competitive electricity market that operates
efficiently, is equitable to all customers, and is the least
cost means of satisfying those objectives; (2) that the utility
is capable of efficiently managing and supervising the
construction process and has taken sufficient action to ensure
adequate and efficient construction and supervision thereof;
and (3) that the utility is capable of financing the proposed
construction without significant adverse financial
consequences for the utility or its customers.
    (c) After the effective date of this amendatory Act of
1987, no construction shall commence on any new nuclear power
plant to be located within this State, and no certificate of
public convenience and necessity or other authorization shall
be issued therefor by the Commission, until the Director of the
Illinois Environmental Protection Agency finds that the United
States Government, through its authorized agency, has
identified and approved a demonstrable technology or means for
the disposal of high level nuclear waste, or until such
construction has been specifically approved by a statute
enacted by the General Assembly.
    As used in this Section, "high level nuclear waste" means
those aqueous wastes resulting from the operation of the first
cycle of the solvent extraction system or equivalent and the
concentrated wastes of the subsequent extraction cycles or
equivalent in a facility for reprocessing irradiated reactor
fuel and shall include spent fuel assemblies prior to fuel
reprocessing.
    (d) In making its determination, the Commission shall
attach primary weight to the cost or cost savings to the
customers of the utility. The Commission may consider any or
all factors which will or may affect such cost or cost savings.
    (e) The Commission may issue a temporary certificate which
shall remain in force not to exceed one year in cases of
emergency, to assure maintenance of adequate service or to
serve particular customers, without notice or hearing, pending
the determination of an application for a certificate, and may
by regulation exempt from the requirements of this Section
temporary acts or operations for which the issuance of a
certificate will not be required in the public interest.
    A public utility shall not be required to obtain but may
apply for and obtain a certificate of public convenience and
necessity pursuant to this Section with respect to any matter
as to which it has received the authorization or order of the
Commission under the Electric Supplier Act, and any such
authorization or order granted a public utility by the
Commission under that Act shall as between public utilities be
deemed to be, and shall have except as provided in that Act the
same force and effect as, a certificate of public convenience
and necessity issued pursuant to this Section.
    No electric cooperative shall be made or shall become a
party to or shall be entitled to be heard or to otherwise
appear or participate in any proceeding initiated under this
Section for authorization of power plant construction and as to
matters as to which a remedy is available under The Electric
Supplier Act.
    (f) Such certificates may be altered or modified by the
Commission, upon its own motion or upon application by the
person or corporation affected. Unless exercised within a
period of 2 years from the grant thereof authority conferred by
a certificate of convenience and necessity issued by the
Commission shall be null and void.
    No certificate of public convenience and necessity shall be
construed as granting a monopoly or an exclusive privilege,
immunity or franchise.
(Source: P.A. 90-561, eff. 12-16-97.)
 
    (220 ILCS 5/8-503)  (from Ch. 111 2/3, par. 8-503)
    Sec. 8-503. Whenever the Commission, after a hearing, shall
find that additions, extensions, repairs or improvements to, or
changes in, the existing plant, equipment, apparatus,
facilities or other physical property of any public utility or
of any 2 or more public utilities are necessary and ought
reasonably to be made or that a new structure or structures is
or are necessary and should be erected, to promote the security
or convenience of its employees or the public or promote the
development of an effectively competitive electricity market,
or in any other way to secure adequate service or facilities,
the Commission shall make and serve an order authorizing or
directing that such additions, extensions, repairs,
improvements or changes be made, or such structure or
structures be erected at the location, in the manner and within
the time specified in said order; provided, however, that the
Commission shall have no authority to order the construction,
addition or extension of any electric generating plant unless
the public utility requests a certificate for the construction
of the plant pursuant to Section 8-406 and in conjunction with
such request also requests the entry of an order under this
Section. If any additions, extensions, repairs, improvements
or changes, or any new structure or structures, which the
Commission has authorized or ordered to be erected, require
joint action by 2 or more public utilities, the Commission
shall notify the said public utilities that such additions,
extensions, repairs, improvements or changes or new structure
or structures have been authorized or ordered and that the same
shall be made at the joint cost whereupon the said public
utilities shall have such reasonable time as the Commission may
grant within which to agree upon the apportionment or division
of cost of such additions, extensions, repairs, improvements or
changes or new structure or structures, which each shall bear.
If at the expiration of such time such public utilities shall
fail to file with the Commission a statement that an agreement
has been made for a division or apportionment of the cost or
expense of such additions, extensions, repairs, improvements
or changes, or new structure or structures, the Commission
shall have authority, after further hearing, to make an order
fixing the proportion of such cost or expense to be borne by
each public utility and the manner in which the same shall be
paid or secured.
    Nothing in this Act shall prevent the Commission, upon its
own motion or upon petition, from ordering, after a hearing,
the extension, construction, connection or interconnection of
plant, equipment, pipe, line, facilities or other physical
property of a public utility in whatever configuration the
Commission finds necessary to ensure that natural gas is made
available to consumers at no increased cost to the customers of
the utility supplying the gas.
    Whenever the Commission finds, after a hearing, that the
public convenience or necessity requires it, the Commission may
order public utilities subject to its jurisdiction to work
jointly (1) for the purpose of purchasing and distributing
natural gas or gas substitutes, provided it shall not increase
the cost of gas to the customers of the participating
utilities, or (2) for any other reasonable purpose.
(Source: P.A. 90-561, eff. 12-16-97.)
 
    (220 ILCS 5/16-118)
    Sec. 16-118. Services provided by electric utilities to
alternative retail electric suppliers.
    (a) It is in the best interest of Illinois energy consumers
to promote fair and open competition in the provision of
electric power and energy and to prevent anticompetitive
practices in the provision of electric power and energy.
Therefore, to the extent an electric utility provides electric
power and energy or delivery services to alternative retail
electric suppliers and such services are not subject to the
jurisdiction of the Federal Energy Regulatory Commission, and
are not competitive services, they shall be provided through
tariffs that are filed with the Commission, pursuant to Article
IX of this Act. Each electric utility shall permit alternative
retail electric suppliers to interconnect facilities to those
owned by the utility provided they meet established standards
for such interconnection, and may provide standby or other
services to alternative retail electric suppliers. The
alternative retail electric supplier shall sign a contract
setting forth the prices, terms and conditions for
interconnection with the electric utility and the prices, terms
and conditions for services provided by the electric utility to
the alternative retail electric supplier in connection with the
delivery by the electric utility of electric power and energy
supplied by the alternative retail electric supplier.
    (b) An electric utility shall file a tariff pursuant to
Article IX of the Act that would allow alternative retail
electric suppliers or electric utilities other than the
electric utility in whose service area retail customers are
located to issue single bills to the retail customers for both
the services provided by such alternative retail electric
supplier or other electric utility and the delivery services
provided by the electric utility to such customers. The tariff
filed pursuant to this subsection shall (i) require partial
payments made by retail customers to be credited first to the
electric utility's tariffed services, (ii) impose commercially
reasonable terms with respect to credit and collection,
including requests for deposits, (iii) retain the electric
utility's right to disconnect the retail customers, if it does
not receive payment for its tariffed services, in the same
manner that it would be permitted to if it had billed for the
services itself, and (iv) require the alternative retail
electric supplier or other electric utility that elects the
billing option provided by this tariff to include on each bill
to retail customers an identification of the electric utility
providing the delivery services and a listing of the charges
applicable to such services. The tariff filed pursuant to this
subsection may also include other just and reasonable terms and
conditions. In addition, an electric utility, an alternative
retail electric supplier or electric utility other than the
electric utility in whose service area the customer is located,
and a customer served by such alternative retail electric
supplier or other electric utility, may enter into an agreement
pursuant to which the alternative retail electric supplier or
other electric utility pays the charges specified in Section
16-108, or other customer-related charges, including taxes and
fees, in lieu of such charges being recovered by the electric
utility directly from the customer.
    (c) An electric utility with more than 100,000 customers
shall file a tariff pursuant to Article IX of this Act that
provides alternative retail electric suppliers, and electric
utilities other than the electric utility in whose service area
the retail customers are located, with the option to have the
electric utility purchase their receivables for power and
energy service provided to residential retail customers and
non-residential retail customers with a non-coincident peak
demand of less than 400 kilowatts. Receivables for power and
energy service of alternative retail electric suppliers or
electric utilities other than the electric utility in whose
service area the retail customers are located shall be
purchased by the electric utility at a just and reasonable
discount rate to be reviewed and approved by the Commission
after notice and hearing. The discount rate shall be based on
the electric utility's historical bad debt and any reasonable
start-up costs and administrative costs associated with the
electric utility's purchase of receivables. The discounted
rate for purchase of receivables shall be included in the
tariff filed pursuant to this subsection (c). The discount rate
filed pursuant to this subsection (c) shall be subject to
periodic Commission review. The electric utility retains the
right to impose the same terms on retail customers with respect
to credit and collection, including requests for deposits, and
retain the electric utility's right to disconnect the retail
customers, if it does not receive payment for its tariffed
services or purchased receivables, in the same manner that it
would be permitted to if the retail customers purchased power
and energy from the electric utility. The tariff filed pursuant
to this subsection (c) shall permit the electric utility to
recover from retail customers any uncollected receivables that
may arise as a result of the purchase of receivables under this
subsection (c), may also include other just and reasonable
terms and conditions, and shall provide for the prudently
incurred costs associated with the provision of this service
pursuant to this subsection (c). Nothing in this subsection (c)
permits the double recovery of bad debt expenses from
customers.
    (d) An electric utility with more than 100,000 customers
shall file a tariff pursuant to Article IX of this Act that
would provide alternative retail electric suppliers or
electric utilities other than the electric utility in whose
service area retail customers are located with the option to
have the electric utility produce and provide single bills to
the retail customers for both the electric power and energy
service provided by the alternative retail electric supplier or
other electric utility and the delivery services provided by
the electric utility to the customers. The tariffs filed
pursuant to this subsection shall require the electric utility
to collect and remit customer payments for electric power and
energy service provided by alternative retail electric
suppliers or electric utilities other than the electric utility
in whose service area retail customers are located. The tariff
filed pursuant to this subsection shall require the electric
utility to include on each bill to retail customers an
identification of the alternative retail electric supplier or
other electric utility that elects the billing option. The
tariff filed pursuant to this subsection (d) may also include
other just and reasonable terms and conditions and shall
provide for the recovery of prudently incurred costs associated
with the provision of service pursuant to this subsection (d).
The costs associated with the provision of service pursuant to
this Section shall be subject to periodic Commission review.
    (e) An electric utility with more than 100,000 customers in
this State shall file a tariff pursuant to Article IX of this
Act that provides alternative retail electric suppliers, and
electric utilities other than the electric utility in whose
service area the retail customers are located, with the option
to have the electric utility purchase 2 billing cycles worth of
uncollectible receivables for power and energy service
provided to residential retail customers and to
non-residential retail customers with a non-coincident peak
demand of less than 400 kilowatts upon returning that customer
to that electric utility for delivery and energy service after
that alternative retail electric supplier, or an electric
utility other than the electric utility in whose service area
the retail customer is located, has made reasonable collection
efforts on that account. Uncollectible receivables for power
and energy service of alternative retail electric suppliers, or
electric utilities other than the electric utility in whose
service area the retail customers are located, shall be
purchased by the electric utility at a just and reasonable
discount rate to be reviewed and approved by the Commission,
after notice and hearing. The discount rate shall be based on
the electric utility's historical bad debt for receivables that
are outstanding for a similar length of time and any reasonable
start-up costs and administrative costs associated with the
electric utility's purchase of receivables. The discounted
rate for purchase of uncollectible receivables shall be
included in the tariff filed pursuant to this subsection (e).
The electric utility retains the right to impose the same terms
on these retail customers with respect to credit and
collection, including requests for deposits, and retains the
right to disconnect these retail customers, if it does not
receive payment for its tariffed services or purchased
receivables, in the same manner that it would be permitted to
if the retail customers had purchased power and energy from the
electric utility. The tariff filed pursuant to this subsection
(e) shall permit the electric utility to recover from retail
customers any uncollectable receivables that may arise as a
result of the purchase of uncollectible receivables under this
subsection (e), may also include other just and reasonable
terms and conditions, and shall provide for the prudently
incurred costs associated with the provision of this service
pursuant to this subsection (e). Nothing in this subsection (e)
permits the double recovery of utility bad debt expenses from
customers. The electric utility may file a joint tariff for
this subsection (e) and subsection (c) of this Section.
(Source: P.A. 90-561, eff. 12-16-97.)
 
    (220 ILCS 5/20-130 new)
    Sec. 20-130. Retail choice and referral programs.
    (a) The Commission shall have the authority to establish
retail choice and referral programs to be administered by an
electric utility or the State in which residential and small
commercial customers receive incentives, including, but not
limited to, discounted rate introductory offers for switching
to participating electric suppliers.
    (b) Reasonable costs associated with the implementation
and operation of customer choice and referral programs may be
recovered in an electric utility's distribution rates, except
that any costs associated with any introductory discount for
switching to a supplier shall be assumed by that supplier.
Reasonable costs associated with the implementation and
operation of a customer choice program may also be recovered
from retail electric suppliers participating in a customer
choice and referral program. In no event, however, shall the
Commission mandate a cost recovery mechanism without first
providing all interested parties notice and an opportunity to
be heard in a hearing before the Commission.
    (c) The Office of Retail Market Development shall serve as
the clearinghouse for the development of retail choice and
referral programs and shall work with electric utilities and
interested parties on a continuous basis to implement and
improve upon the programs. Nothing in this Section, however,
shall prevent an electric utility on its own accord from
implementing retail choice and referral programs.
    (d) Only customers that qualify for utility service shall
be eligible for retail choice and referral programs.
    (e) The Office of Retail Market Development shall
immediately upon the effective date of this amendatory Act of
the 95th General Assembly explore for possible implementation
on as expedited a basis as possible the following retail choice
and referral programs:
        (1) An introductory fixed discount program in which
    suppliers participating in the program offer customers a
    fixed percentage discount off of the electric utility's
    supply rate for a set number of billing periods. Customers
    would be able to enroll in the program by using an online
    enrollment form, completing an enrollment card found in
    their monthly electric utility bill, or by calling a
    toll-free number. Customers would be free to withdraw from
    the program at any time and select another alternative
    retail electric supplier or return to the electric utility.
        (2) A new customer program in which electric utilities
    would offer consumers initiating new electric service a
    choice of offers from participating electric suppliers to
    provide the consumer's electric supply service. Customers
    expressing a preference for a specific electric supplier
    would be enrolled with that supplier. Customers not
    expressing a preference for a specific electric supplier
    would be offered the opportunity to enroll with an electric
    supplier selected randomly on a rotating basis.
        (3) A customer service call center referral program in
    which customers calling an electric utility's call center
    would be offered enrollment with an alternative retail
    electric supplier and informed that they have the option to
    receive immediate savings or introductory offers by
    participating in the referral program. Customers choosing
    to participate would be transferred to a customer service
    representative for the program and would either select the
    electric supplier from which they would like to take
    service or be placed with a participating electric supplier
    chosen at random on a rotating basis.
    Nothing in this Section shall prevent the Office of Retail
Market Development or the Commission from considering retail
choice and referral programs in addition to the programs
outlined in this Section.
 
    Section 10. The Consumer Fraud and Deceptive Business
Practices Act is amended by changing Section 2EE as follows:
 
    (815 ILCS 505/2EE)
    Sec. 2EE. Electric service provider selection. An electric
service provider shall not submit or execute a change in a
subscriber's selection of a provider of electric service unless
and until (i) the provider first discloses all material terms
and conditions of the offer to the subscriber; (ii) the
provider has obtained the subscriber's express agreement to
accept the offer after the disclosure of all material terms and
conditions of the offer; and (iii) the provider has confirmed
the request for a change in accordance with one of the
following procedures except as follows:
    (a) The new electric service provider has obtained the
subscriber's customer's written or electronically signed
authorization in a form that meets the following requirements:
        (1) An electric service provider shall obtain any
    necessary written or electronically signed authorization
    from a subscriber for a change in electric service by using
    a letter of agency as specified in this Section. Any letter
    of agency that does not conform with this Section is
    invalid.
        (2) The letter of agency shall be a separate document
    (an easily separable document containing only the
    authorization language described in subparagraph (a)(5) of
    this Section) whose sole purpose is to authorize an
    electric service provider change. The letter of agency must
    be signed and dated by the subscriber requesting the
    electric service provider change.
        (3) The letter of agency shall not be combined with
    inducements of any kind on the same document.
        (4) Notwithstanding subparagraphs (a)(1) and (a)(2) of
    this Section, the letter of agency may be combined with
    checks that contain only the required letter of agency
    language prescribed in subparagraph (a)(5) paragraph (5)
    of this Section and the necessary information to make the
    check a negotiable instrument. The letter of agency check
    shall not contain any promotional language or material. The
    letter of agency check shall contain in easily readable,
    bold-face type on the face of the check, a notice that the
    consumer is authorizing an electric service provider
    change by signing the check. The letter of agency language
    also shall be placed near the signature line on the back of
    the check.
        (5) At a minimum, the letter of agency must be printed
    with a print of sufficient size to be clearly legible, and
    must contain clear and unambiguous language that confirms:
            (i) The subscriber's billing name and address;
            (ii) The decision to change the electric service
        provider from the current provider to the prospective
        provider;
            (iii) The terms, conditions, and nature of the
        service to be provided to the subscriber must be
        clearly and conspicuously disclosed, in writing, and
        an electric service provider must directly establish
        the rates for the service contracted for by the
        subscriber; and
            (iv) That the subscriber understand that any
        electric service provider selection the subscriber
        chooses may involve a charge to the subscriber for
        changing the subscriber's electric service provider.
        (6) Letters of agency shall not suggest or require that
    a subscriber take some action in order to retain the
    subscriber's current electric service provider.
        (7) If any portion of a letter of agency is translated
    into another language, then all portions of the letter of
    agency must be translated into that language.
    (b) An appropriately qualified independent third party has
obtained, in accordance with the procedures set forth in this
subsection (b), the subscriber's oral authorization to change
electric suppliers that confirms and includes appropriate
verification data. The independent third party (i) must not be
owned, managed, controlled, or directed by the supplier or the
supplier's marketing agent; (ii) must not have any financial
incentive to confirm supplier change requests for the supplier
or the supplier's marketing agent; and (iii) must operate in a
location physically separate from the supplier or the
supplier's marketing agent.
    Automated third-party verification systems and 3-way
conference calls may be used for verification purposes so long
as the other requirements of this subsection (b) are satisfied.
    A supplier or supplier's sales representative initiating a
3-way conference call or a call through an automated
verification system must drop off the call once the 3-way
connection has been established.
    All third-party verification methods shall elicit, at a
minimum, the following information: (i) the identity of the
subscriber; (ii) confirmation that the person on the call is
authorized to make the supplier change; (iii) confirmation that
the person on the call wants to make the supplier change; (iv)
the names of the suppliers affected by the change; (v) the
service address of the supply to be switched; and (vi) the
price of the service to be supplied and the material terms and
conditions of the service being offered, including whether any
early termination fees apply. Third-party verifiers may not
market the supplier's services by providing additional
information, including information regarding procedures to
block or otherwise freeze an account against further changes.
    All third-party verifications shall be conducted in the
same language that was used in the underlying sales transaction
and shall be recorded in their entirety. Submitting suppliers
shall maintain and preserve audio records of verification of
subscriber authorization for a minimum period of 2 years after
obtaining the verification. Automated systems must provide
consumers with an option to speak with a live person at any
time during the call.
    (c) When a subscriber initiates the call to the prospective
electric supplier, in order to enroll the subscriber as a
customer, the prospective electric supplier must, with the
consent of the customer, make a date-stamped, time-stamped
audio recording that elicits, at a minimum, the following
information:
        (1) the identity of the subscriber;
        (2) confirmation that the person on the call is
    authorized to make the supplier change;
        (3) confirmation that the person on the call wants to
    make the supplier change;
        (4) the names of the suppliers affected by the change;
        (5) the service address of the supply to be switched;
    and
        (6) the price of the service to be supplied and the
    material terms and conditions of the service being offered,
    including whether any early termination fees apply.
    Submitting suppliers shall maintain and preserve the audio
records containing the information set forth above for a
minimum period of 2 years.
    (d) Complaints may be filed with the Illinois Commerce
Commission under this Section by a subscriber whose electric
service has been provided by an electric service supplier in a
manner not in compliance with this Section. If, after notice
and hearing, the Commission finds that an electric service
provider has violated this Section, the Commission may in its
discretion do any one or more of the following:
        (1) Require the violating electric service provider to
    refund to the subscriber charges collected in excess of
    those that would have been charged by the subscriber's
    authorized electric service provider.
        (2) Require the violating electric service provider to
    pay to the subscriber's authorized electric supplier the
    amount the authorized electric supplier would have
    collected for the electric service. The Commission is
    authorized to reduce this payment by any amount already
    paid by the violating electric supplier to the subscriber's
    authorized provider for electric service.
        (3) Require the violating electric subscriber to pay a
    fine of up to $1,000 into the Public Utility Fund for each
    repeated and intentional violation of this Section.
        (4) Issue a cease and desist order.
        (5) For a pattern of violation of this Section or for
    intentionally violating a cease and desist order, revoke
    the violating provider's certificate of service authority.
    (e) For purposes of this Section, "electric service
provider" shall have the meaning given that phrase in Section
6.5 of the Attorney General Act.
(Source: P.A. 90-561, eff. 12-16-97.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.