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Public Act 92-0852
HB4667 Enrolled LRB9212076JSpc
AN ACT in relation to utilities.
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
changing Sections 19-105, 19-110, 19-115, and 19-120 and
adding Sections 7-208, 7-209, 19-125, 19-130, and 19-135 as
follows:
(220 ILCS 5/7-208 new)
Sec. 7-208. HVAC affiliate marketing.
(a) "HVAC affiliate" means all affiliated interests of a
gas utility that provide heating, ventilating, or air
conditioning services to customers within the service
territory of the affiliated gas utility.
(b) When an HVAC affiliate advertises or markets
heating, ventilating, or air conditioning services to the
public, it shall include a disclaimer that, if audible, is
conspicuous and if printed is of sufficient size to be
clearly legible, and that states:
(Insert name of affiliate) is an affiliate of (insert
name of gas utility) and is not regulated by the Illinois
Commerce Commission. Customers are not required to buy
products or services from (insert name of affiliate) in order
to receive the same quality of service from the gas utility.
(c) The requirements in subsection (b) apply to all
forms of advertising and marketing, including, but not
limited to, print, television, radio, internet, telephonic,
bill inserts, and newsletters.
(220 ILCS 5/7-209 new)
Sec. 7-209. Marketing limitation; gas utilities. If a
gas utility has an HVAC affiliate, the prohibition contained
in this Section applies to the employees of the gas utility.
While a gas utility employee is responding to a service call
related to services provided under tariffs on file with the
Illinois Commerce Commission, the employee of the gas utility
is prohibited from marketing the services of an HVAC
affiliate; provided, however, the gas utility employee may
refer the customer to the telephone directory in response to
specific requests for referrals. If a customer's gas
appliance or gas service has been disconnected due to an
emergency situation that requires immediate attention, a gas
utility employee may provide to that customer a list,
including contact phone numbers, that includes HVAC
affiliates and non-affiliated entities that provide heating,
ventilating, or air conditioning services.
(220 ILCS 5/19-105)
Sec. 19-105. Definitions. For the purposes of this
Article, the following terms shall be defined as set forth in
this Section.
"Alternative gas supplier" means every person,
cooperative, corporation, municipal corporation, company,
association, joint stock company or association, firm,
partnership, individual, or other entity, their lessees,
trustees, or receivers appointed by any court whatsoever,
that offers gas for sale, lease, or in exchange for other
value received to one or more customers, or that engages in
the furnishing of gas to one or more customers, and shall
include affiliated interests of a gas utility, resellers,
aggregators and marketers, but shall not include (i) gas
utilities (or any agent of the gas utility to the extent the
gas utility provides tariffed services to customers through
an agent); (ii) public utilities that are owned and operated
by any political subdivision, public institution of higher
education or municipal corporation of this State, or public
utilities that are owned by a political subdivision, public
institution of higher education, or municipal corporation and
operated by any of its lessees or operating agents; (iii)
residential natural gas cooperatives that are not-for-profit
corporations established for the purpose of administering and
operating, on a cooperative basis, the furnishing of natural
gas to residences for the benefit of their members who are
residential consumers of natural gas; and (iv) the ownership
or operation of a facility that sells compressed natural gas
at retail to the public for use only as a motor vehicle fuel
and the selling of compressed natural gas at retail to the
public for use only as a motor vehicle fuel.
"Gas utility" means a public utility, as defined in
Section 3-105 of this Act, that has a franchise, license,
permit, or right to furnish or sell gas or transportation
services to customers within a service area.
"Residential customer" means a customer who receives gas
utility service for household purposes distributed to a
dwelling of 2 or fewer units which is billed under a
residential rate or gas utility service for household
purposes distributed to a dwelling unit or units which is
billed under a residential rate and is registered by a
separate meter for each dwelling unit.
"Service area" means (i) the geographic area within which
a gas utility was lawfully entitled to provide gas to
customers as of the effective date of this amendatory Act of
the 92nd General Assembly and includes (ii) the location of
any customer to which the gas utility was lawfully providing
gas utility services on such effective date.
"Small commercial customer" means a nonresidential retail
customer of a natural gas utility who is identified by the
alternative gas supplier, prior to becoming a customer of the
alternative gas supplier, as consuming 5,000 or fewer therms
of natural gas during the previous year; provided that any
alternative gas supplier may remove the customer from
designation as a "small commercial customer" if the customer
consumes more than 5,000 therms of natural gas in any
calendar year after becoming a customer of the alternative
gas supplier.
"Tariffed service" means a service provided to customers
by a gas utility as defined by its rates on file with the
Commission pursuant to the provisions of Article IX of this
Act.
"Transportation services" means those services provided
by the gas utility that are necessary in order for the
storage, transmission and distribution systems to function so
that customers located in the gas utility's service area can
receive gas from suppliers other than the gas utility and
shall include, without limitation, standard metering and
billing services.
(Source: P.A. 92-529, eff. 2-8-02.)
(220 ILCS 5/19-110)
Sec. 19-110. Certification of alternative gas suppliers.
(a) The provisions of this Section shall apply only to
alternative gas suppliers serving or seeking to serve
residential or small commercial customers and only to the
extent such alternative gas suppliers provide services to
residential or small commercial customers.
(b) An alternative gas supplier must obtain a
certificate of service authority from the Commission in
accordance with this Section before serving any customer or
other user located in this State. An alternative gas
supplier may request, and the Commission may grant, a
certificate of service authority for the entire State or for
a specified geographic area of the State. A person,
corporation, or other entity acting as an alternative gas
supplier on the effective date of this amendatory Act of the
92nd General Assembly shall have 180 days from the effective
date of this amendatory Act of the 92nd General Assembly to
comply with the requirements of this Section in order to
continue to operate as an alternative gas supplier.
(c) An alternative gas supplier seeking a certificate of
service authority shall file with the Commission a verified
application containing information showing that the applicant
meets the requirements of this Section. The alternative gas
supplier shall publish notice of its application in the
official State newspaper within 10 days following the date of
its filing. No later than 45 days after the application is
properly filed with the Commission, and such notice is
published, the Commission shall issue its order granting or
denying the application.
(d) An application for a certificate of service
authority shall identify the area or areas in which the
applicant intends to offer service and the types of services
it intends to offer. Applicants that seek to serve
residential or small commercial customers within a geographic
area that is smaller than a gas utility's service area shall
submit evidence demonstrating that the designation of this
smaller area does not violate Section 19-115. An applicant
may state in its application for certification any
limitations that will be imposed on the number of customers
or maximum load to be served.
(e) The Commission shall grant the application for a
certificate of service authority if it makes the findings set
forth in this subsection based on the verified application
and such other information as the applicant may submit.
(1) That the applicant possess sufficient
technical, financial, and managerial resources and
abilities to provide the service for which it seeks a
certificate of service authority. In determining the
level of technical, financial, and managerial resources
and abilities which the applicant must demonstrate, the
Commission shall consider the characteristics, including
the size and financial sophistication of the customers
that the applicant seeks to serve, and shall consider
whether the applicant seeks to provide gas using
property, plant, and equipment that it owns, controls, or
operates.
(2) That the applicant will comply with all
applicable federal, State, regional, and industry rules,
policies, practices, and procedures for the use,
operation, and maintenance of the safety, integrity, and
reliability of the gas transmission system.
(3) That the applicant will comply with such
informational or reporting requirements as the Commission
may by rule establish.
(4) That the area to be served by the applicant and
any limitations it proposes on the number of customers or
maximum amount of load to be served meet the provisions
of Section 19-115, provided, that if the applicant seeks
to serve an area smaller than the service area of a gas
utility or proposes other limitations on the number of
customers or maximum amount of load to be served, the
Commission can extend the time for considering such a
certificate request by up to 90 days, and can schedule
hearings on such a request.
(5) That the applicant will comply with all other
applicable laws and rules.
(f) The Commission shall have the authority to
promulgate rules to carry out the provisions of this Section.
Within 30 days after the effective date of this amendatory
Act of the 92nd General Assembly, the Commission shall adopt
an emergency rule or rules applicable to the certification of
those gas suppliers that seek to serve residential customers.
Within 180 days of the effective date of this amendatory Act
of the 92nd General Assembly, the Commission shall adopt
rules that specify criteria which, if met by any such
alternative gas supplier, shall constitute the demonstration
of technical, financial, and managerial resources and
abilities to provide service required by item (1) of
subsection (e) of this Section, such as a requirement to post
a bond or letter of credit, from a responsible surety or
financial institution, of sufficient size for the nature and
scope of the services to be provided, demonstration of
adequate insurance for the scope and nature of the services
to be provided, and experience in providing similar services
in other jurisdictions.
(Source: P.A. 92-529, eff. 2-8-02.)
(220 ILCS 5/19-115)
Sec. 19-115. Obligations of alternative gas suppliers.
(a) The provisions of this Section shall apply only to
alternative gas suppliers serving or seeking to serve
residential or small commercial customers and only to the
extent such alternative gas suppliers provide services to
residential or small commercial customers.
(b) An alternative gas supplier shall:
(1) comply with the requirements imposed on public
utilities by Sections 8-201 through 8-207, 8-301, 8-505
and 8-507 of this Act, to the extent that these Sections
have application to the services being offered by the
alternative gas supplier; and
(2) continue to comply with the requirements for
certification stated in Section 19-110.
(c) An alternative gas supplier shall obtain verifiable
authorization from a customer, in a form or manner approved
by the Commission, before the customer is switched from
another supplier.
(d) No alternative gas supplier shall:
(1) enter into or employ any arrangements which
have the effect of preventing any customer from having
access to the services of the gas utility in whose
service area the customer is located; or
(2) charge customers for such access.
(e) An alternative gas supplier that is certified to
serve residential or small commercial customers shall not:
(1) deny service to a customer or group of
customers nor establish any differences as to prices,
terms, conditions, services, products, facilities, or in
any other respect, whereby such denial or differences are
based upon race, gender, or income; or
(2) deny service based on locality, nor establish
any unreasonable difference as to prices, terms,
conditions, services, products, or facilities as between
localities.
(f) An alternative gas supplier shall comply with the
following requirements with respect to the marketing,
offering, and provision of products or services:
(1) Any marketing materials which make statements
concerning prices, terms, and conditions of service shall
contain information that adequately discloses the prices,
terms and conditions of the products or services.
(2) Before any customer is switched from another
supplier, the alternative gas supplier shall give the
customer written information that adequately discloses,
in plain language, the prices, terms, and conditions of
the products and services being offered and sold to the
customer.
(3) The alternative gas supplier shall provide to
the customer:
(A) accurate, timely, and itemized billing
statements that describe the products and services
provided to the customer and their prices and that
specify the gas consumption amount and any service
charges and taxes; provided that this item (f)(3)(A)
does not apply to small commercial customers; and
(B) an additional statement, at least
annually, that adequately discloses the average
monthly prices, and the terms and conditions, of the
products and services sold to the customer; provided
that this item (f)(3)(B) does not apply to small
commercial customers;.
(C) refunds of any deposits with interest
within 30 days after the date that the customer
changes gas suppliers or discontinues service if the
customer has satisfied all of his or her outstanding
financial obligations to the alternative gas
supplier at an interest rate set by the Commission
which shall be the same as that required of gas
utilities; and
(D) refunds, in a timely fashion, of all
undisputed overpayments upon the oral or written
request of the customer.
(g) An alternative gas supplier may limit the overall
size or availability of a service offering by specifying one
or more of the following:
(1) a maximum number of customers and maximum
amount of gas load to be served;
(2) time period during which the offering will be
available; or
(3) other comparable limitation, but not including
the geographic locations of customers within the area
which the alternative gas supplier is certificated to
serve.
The alternative gas supplier shall file the terms and
conditions of such service offering including the applicable
limitations with the Commission prior to making the service
offering available to customers.
(h) Nothing in this Section shall be construed as
preventing an alternative gas supplier that is an affiliate
of, or which contracts with, (i) an industry or trade
organization or association, (ii) a membership organization
or association that exists for a purpose other than the
purchase of gas, or (iii) another organization that meets
criteria established in a rule adopted by the Commission from
offering through the organization or association services at
prices, terms and conditions that are available solely to the
members of the organization or association.
(Source: P.A. 92-529, eff. 2-8-02.)
(220 ILCS 5/19-120)
Sec. 19-120. Commission oversight of services provided
by gas suppliers.
(a) The provisions of this Section shall apply only to
alternative gas suppliers serving or seeking to serve
residential or small commercial customers and only to the
extent such alternative gas suppliers provide services to
residential or small commercial customers.
(b) The Commission shall have jurisdiction in accordance
with the provisions of Article X of this Act to entertain and
dispose of any complaint against any alternative gas supplier
alleging that:
(1) the alternative gas supplier has violated or is
in nonconformance with any applicable provisions of
Section 19-110 or Section 19-115;
(2) an alternative gas supplier has failed to
provide service in accordance with the terms of its
contract or contracts with a customer or customers;
(3) the alternative gas supplier has violated or is
in nonconformance with the transportation services tariff
of, or any of its agreements relating to transportation
services with, the gas utility or municipal system
providing transportation services; or
(4) the alternative gas supplier has violated or
failed to comply with the requirements of Sections 8-201
through 8-207, 8-301, 8-505, or 8-507 of this Act as made
applicable to alternative gas suppliers.
(c) The Commission shall have authority after notice and
hearing held on complaint or on the Commission's own motion
to:
(1) order an alternative gas supplier to cease and
desist, or correct, any violation of or nonconformance
with the provisions of Section 19-110 or 19-115;
(2) impose financial penalties for violations of or
nonconformances with the provisions of Section 19-110 or
19-115, not to exceed (i) $10,000 per occurrence or (ii)
$30,000 per day for those violations or nonconformances
which continue after the Commission issues a
cease-and-desist order; and
(3) alter, modify, revoke, or suspend the
certificate of service authority of an alternative gas
supplier for substantial or repeated violations of or
nonconformances with the provisions of Section 19-110 or
19-115.
(d) Nothing in this Act shall be construed to limit,
restrict, or mitigate in any way the power and authority of
the State's Attorneys or the Attorney General under the
Consumer Fraud and Deceptive Business Practices Act.
(Source: P.A. 92-529, eff. 2-8-02.)
(220 ILCS 5/19-125 new)
Sec. 19-125. Consumer education.
(a) The Commission shall make available upon request and
at no charge, and shall make available to the public on the
Internet through the State of Illinois World Wide Web site:
(1) a list of all certified alternative gas
suppliers serving residential and small commercial
customers within the service area of each gas utility
including, in the case of the Internet, computer links to
available web sites of the certified alternative gas
suppliers;
(2) a list of all certified alternative gas
suppliers serving residential or small commercial
customers that have been found in the last 3 years by the
Commission pursuant to Section 10-108 to have failed to
provide service in accordance with this Act;
(3) guidelines to assist customers in determining
which gas supplier is most appropriate for each customer;
and
(4) Internet links to providers of information that
enables customers to compare prices and services of gas
utilities and alternative gas suppliers, if and when that
information is available.
(b) In any service area where customers are able to
choose their natural gas supplier, the Commission shall
require gas utilities and alternative gas suppliers to inform
customers of how they may contact the Commission in order to
obtain information about the customer choice program.
(220 ILCS 5/19-130 new)
Sec. 19-130. Commission study and report. Beginning in
2003, and ending in 2007, the Commission shall prepare an
annual report regarding the development of natural gas
markets in Illinois. The report shall be filed by July 1 of
each year with the Joint Committee on Legislative Support
Services of the General Assembly and the Governor and shall
be publicly available. The report shall include, at a
minimum, the following information:
(1) the aggregate annual demand of retail natural
gas customers in the State of Illinois in the preceding
calendar year;
(2) the total annual therms delivered and sold to
retail customers in the State of Illinois by each gas
utility and each alternative gas supplier in the
preceding calendar year;
(3) the percentage of therms delivered and sold to
customers in the State of Illinois in the preceding
calendar year by each gas utility and each alternative
gas supplier;
(4) the total number of customers in the State of
Illinois served in the preceding calendar year by each
gas utility and each alternative gas supplier;
(5) an analysis of the status and development of
the retail natural gas market in the State of Illinois;
and
(6) any other information the Commission considers
significant in assessing the development of gas markets
in the State of Illinois.
(220 ILCS 5/19-135 new)
Sec. 19-135. Single billing. It is the intent of the
General Assembly that in any service area where customers are
able to choose their natural gas supplier, a single billing
option shall be offered to customers for both the services
provided by the alternative gas supplier and the delivery
services provided by the gas utility. A gas utility shall
file a tariff pursuant to Article IX of this Act that allows
alternative gas suppliers to issue single bills to
residential and small commercial customers for both the
services provided by the alternative gas supplier and the
delivery services provided by the gas utility to customers;
provided that if a form of single billing is being offered in
a gas utility's service area on the effective date of this
amendatory Act of the 92nd General Assembly, that form of
single billing shall remain in effect unless and until
otherwise ordered by the Commission.
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 30, 2002.
Approved August 26, 2002.
Effective August 26, 2002.
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