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Electric Utility Oversight Committee
Adopted in House Comm. on May 30, 2007
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| AMENDMENT TO SENATE BILL 1299
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| AMENDMENT NO. ______. Amend Senate Bill 1299 by replacing |
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| everything after the enacting clause with the following:
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| "Section 5. The Public Utilities Act is amended by changing |
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| Sections 8-406, 8-503, and 16-118 and by adding Section 20-130 |
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| as follows:
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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 5/16-118)
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| Sec. 16-118. Services provided by electric utilities to
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| alternative retail electric suppliers.
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| (a) It is in the best interest of Illinois energy
consumers |
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| to promote fair and open competition in the
provision of |
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| electric power and energy and to prevent
anticompetitive |
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| practices in the provision of electric power
and energy.
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| Therefore, to the extent an electric utility provides electric |
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| power and energy
or delivery services to alternative retail |
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| electric suppliers and such services
are not subject to the |
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| jurisdiction of the Federal Energy
Regulatory Commission, and |
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| are not competitive services, they
shall be provided through |
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| tariffs that are filed with the
Commission, pursuant to Article |
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| IX of this Act.
Each electric utility shall permit alternative
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| retail electric suppliers to interconnect facilities to those
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| owned by the utility provided they meet established standards
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| for such interconnection, and may provide standby or other
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| services to alternative retail electric suppliers. The
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| alternative retail electric supplier shall sign a contract
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| setting forth the prices, terms and conditions for
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| interconnection with the electric utility and the prices,
terms |
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| and conditions for services provided by the electric
utility to |
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| the alternative retail electric supplier in
connection with the |
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| delivery by the electric utility of
electric power and energy |
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| supplied by the alternative retail
electric supplier.
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| (b) An electric utility shall file a tariff pursuant to |
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| Article IX of the
Act that would allow alternative retail |
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| electric suppliers or electric
utilities other than the |
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| electric utility in whose service area retail
customers are
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| located to issue single bills to the retail customers for both |
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| the services
provided by such alternative retail electric |
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| supplier or other electric utility
and the delivery services |
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| provided by the electric utility to such customers.
The tariff |
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| filed pursuant to this subsection shall (i) require partial |
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| payments
made by retail customers to be credited first to the |
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| electric utility's
tariffed services, (ii) impose commercially |
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| reasonable terms with respect to
credit and collection, |
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| including requests for deposits, (iii) retain the
electric |
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| utility's right to disconnect the retail customers, if it does |
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| not
receive payment for its tariffed services, in the same |
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| manner that it would be
permitted to if it had billed for the |
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| services itself, and (iv) require the
alternative retail |
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| electric supplier or other electric utility that elects the
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| billing option provided by this tariff to include on each bill |
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| to retail
customers an identification of the electric utility |
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| providing the delivery
services and a listing of the charges |
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| applicable to such services. The tariff
filed pursuant to this |
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| subsection may also include other just and reasonable
terms and |
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| conditions. In addition,
an electric utility, an alternative |
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| retail electric
supplier or electric utility other than the |
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| electric utility
in whose service area the customer is located, |
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| and a customer
served by such alternative retail electric |
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| supplier or other
electric utility, may enter into an agreement |
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| pursuant to
which the alternative retail electric supplier or |
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| other
electric utility pays the charges specified in Section |
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| 16-108,
or other customer-related charges, including taxes and |
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| fees,
in lieu of such charges being recovered by the electric
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| utility directly from the customer. |
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| (c) An electric utility with more than 100,000 customers |
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| shall file a tariff pursuant to Article IX of this Act that |
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| provides alternative retail electric suppliers, and electric |
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| utilities other than the electric utility in whose service area |
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| the retail customers are located with the option to have the |
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| electric utility purchase their receivables for power and |
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| energy service provided to retail customers with a |
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| non-coincident peak demand of less than 400 kilowatts. |
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| Receivables for power and energy of alternative retail electric |
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| suppliers or electric utilities other than the electric utility |
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| in whose service area the retail customers are located shall be |
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| purchased by the electric utility at a just and reasonable |
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| discount rate to be reviewed and approved by the Commission |
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| after notice and hearing. The discount rate shall be based on |
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| the electric utility's historical bad debt and any |
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| administrative costs associated with the electric utility's |
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| purchase of receivables. The discounted rate for purchase of |
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| receivables shall be included in the tariff filed pursuant to |
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| this subsection (c). The discount rate filed pursuant to this |
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| subsection shall be subject to periodic reconciliations and |
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| Commission review. The electric utility shall impose the same |
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| terms on retail customers with respect to credit and |
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| collection, including requests for deposits, and retain the |
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| electric utility's right to disconnect the retail customers, if |
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| it does not receive payment for its tariffed services or |
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| purchased receivables, in the same manner that it would be |
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| permitted to if the retail customers purchased power and energy |
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| from the electric utility. The tariff filed pursuant to this |
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| subsection (c) may also include other just and reasonable terms |
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| and conditions. |
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| (d) An electric utility with more than 100,000 customers |
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| shall file a tariff pursuant to Article IX of this Act that |
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| would provide alternative retail electric suppliers or |
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| electric utilities other than the electric utility in whose |
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| service area retail customers are located with the option to |
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| have the electric utility produce and provide single bills to |
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| the retail customers for both the services provided by the |
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| alternative retail electric supplier or other electric utility |
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| and the delivery services provided by the electric utility to |
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| the customers. The tariffs filed pursuant to this subsection |
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| shall require the electric utility to collect and remit |
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| customer payments for services provided by alternative retail |
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| electric suppliers or electric utilities other than the |
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| electric utility in whose service area retail customers are |
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| located. The tariff filed pursuant to this subsection shall |
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| require the electric utility to include on each bill to retail |
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| customers an identification of the alternative retail electric |
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| supplier or other electric utility that elects the billing |
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| option. The tariff filed pursuant to this subsection (d) may |
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| also include other just and reasonable terms and conditions and |
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| provide for the recovery of prudently incurred costs associated |
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| with the provision of service pursuant to this subsection (d). |
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| The costs associated with the provision of service pursuant to |
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| this section shall be subject to periodic Commission review.
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| (e) Within 45 days after the effective date of this |
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| amendatory Act of the 95th General Assembly, each electric |
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| utility with more than 100,000 customers in this State shall |
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| file a tariff pursuant to Article IX of this Act that provides |
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| alternative retail electric suppliers with the option to have |
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| the electric utility purchase 2 billing cycles worth of |
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| uncollectible receivables for power and energy service |
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| provided to a retail customer with a non-coincident peak demand |
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| of less than 400 kilowatts upon returning that customer to that |
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| electric utility for delivery and energy service after that |
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| alternative retail electric supplier has made reasonable |
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| collection efforts on that account. The electric utility shall |
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| recover any prudently incurred administrative expenses |
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| incurred in connection with this subsection through its |
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| delivery case filings with the Commission but shall not permit |
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| the double recovery of utility bad debt expenses from |
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| customers.
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| (Source: P.A. 90-561, eff. 12-16-97.)
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| (220 ILCS 5/20-130 new) |
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| Sec. 20-130. Retail choice and referral programs. |
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| (a) The Commission shall have the authority to establish |
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| retail choice and referral programs to be administered by an |
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| electric utility or the State in which residential and small |
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| commercial customers receive incentives, including, but not |
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| limited to, discounted rate introductory offers for switching |
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| to participating electric suppliers. |
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| (b) Reasonable costs associated with the implementation |
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| and operation of customer choice and referral programs may be |
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| recovered in an electric utility's distribution rates. |
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| Reasonable costs associated with the implementation and |
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| operation of a customer choice program may also be recovered |
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| from retail electric suppliers participating in a customer |
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| choice and referral program. In no event, however, shall the |
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| Commission mandate a cost recovery mechanism without first |
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| providing all interested parties notice and an opportunity to |
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| be heard in a hearing before the Commission. |
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| (c) The Office of Retail Market Development shall serve as |
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| the clearinghouse for the development of retail choice and |
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| referral programs and shall work with electric utilities and |
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| interested parties on a continuous basis to implement and |
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| improve upon the programs. Nothing in this Section, however, |
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| shall prevent an electric utility on its own accord from |
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| implementing retail choice and referral programs. |
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| (d) Only customers that qualify for utility service shall |
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| be eligible for retail choice and referral programs. |
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| (e) The Office of Retail Market Development shall |
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| immediately upon the effective date of this amendatory Act of |
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| the 95th General Assembly explore for possible implementation |
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| on as expedited basis as possible the following retail choice |
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| and referral programs: |
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| (1) An introductory fixed discount program in which |
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| suppliers participating in the program offer customers a |
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| fixed percentage discount off of the electric utility's |
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| supply rate for a set number of billing periods. Customers |
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| would be able to enroll in the program by using an online |
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| enrollment form, completing an enrollment card found in |
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| their monthly electric utility bill, or by calling a |
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| toll-free number. Customers would be free to withdraw from |
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| the program at any time and select another alternative |
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| retail electric supplier or return to the electric utility. |
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| (2) A new customer program in which electric utilities |
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| would offer consumers initiating new electric service a |
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| choice of offers from participating electric suppliers to |
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| provide the consumer's electric supply service. Customers |
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| expressing a preference for a specific electric supplier |
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| would be enrolled with that supplier. Customers not |
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| expressing a preference for a specific electric supplier |
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| would be offered the opportunity to enroll with an electric |
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| supplier selected randomly on a rotating basis. |
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| (3) A customer service call center referral program in |
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| which customers calling an electric utility's call center |
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| would be offered enrollment with an alternative retail |
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| electric supplier and informed that they have the option to |
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| receive immediate savings or introductory offers by |
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| participating in the referral program. Customers choosing |
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| to participate would be transferred to a customer service |
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| representative for the program and would either select the |
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| electric supplier from which they would like to take |
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| service or be placed with a participating electric supplier |
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| chosen at random on a rotating basis.
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| Nothing in this Section shall prevent the Office of Retail |
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| Market Development or the Commission from considering retail |
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| choice and referral programs in addition to the programs |
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| outlined in this Section.
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| Section 10. The Consumer Fraud and Deceptive Business |
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| Practices Act is amended by changing Section 2EE as follows:
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| (815 ILCS 505/2EE)
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| Sec. 2EE. Electric service provider selection. An electric |
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| service provider shall not submit or execute
a change in a |
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| subscriber's selection of a provider of electric
service unless |
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| and until the request for a change has been confirmed in |
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| accordance with one of the following procedures
except as |
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| follows :
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| (a) The new electric service provider has obtained the
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| subscriber's
customer's written or electronically signed
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| authorization in a form that meets the
following requirements:
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| (1) An electric service provider shall obtain any
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| necessary written authorization from a subscriber for a
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| change in electric service by using a letter of agency as
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| specified in this
Section. Any letter of agency that does
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| not conform with this
Section is invalid.
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| (2) The letter of agency shall be a separate
document |
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| (an easily separable document containing only
the |
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| authorization language described in subparagraph (a) (5)
of |
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| this
Section) whose sole purpose is to authorize an
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| electric service provider change. The letter of agency
must |
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| be signed and dated by the subscriber requesting the
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| electric service provider change.
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| (3) The letter of agency shall not be combined with
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| inducements of any kind on the same document.
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| (4) Notwithstanding subparagraphs (a) (1) and (a) (2) of
|
10 |
| this
Section, the letter of agency may be combined with
|
11 |
| checks that contain only the required letter of agency
|
12 |
| language prescribed in subparagraph (a)(5)
paragraph (5)
|
13 |
| of this Section and
the necessary information to make the |
14 |
| check a negotiable
instrument. The letter of agency check |
15 |
| shall not contain
any promotional language or material. The |
16 |
| letter of
agency check shall contain in easily readable, |
17 |
| bold-face
type on the face of the check, a notice that the |
18 |
| consumer
is authorizing an electric service provider |
19 |
| change by
signing the check. The letter of agency language |
20 |
| also
shall be placed near the signature line on the back of
|
21 |
| the check.
|
22 |
| (5) At a minimum, the letter of agency must be
printed |
23 |
| with a print of sufficient size to be clearly
legible, and |
24 |
| must contain clear and unambiguous language
that confirms:
|
25 |
| (i) The subscriber's billing name and address;
|
26 |
| (ii) The decision to change the electric service
|
|
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| provider from the current provider to the
prospective |
2 |
| provider;
|
3 |
| (iii) The terms, conditions, and nature of the
|
4 |
| service to be provided to the subscriber must be
|
5 |
| clearly and conspicuously disclosed, in writing, and
|
6 |
| an electric service provider must directly establish
|
7 |
| the rates for the service contracted for by the
|
8 |
| subscriber; and
|
9 |
| (iv) That the subscriber understand that any
|
10 |
| electric service provider selection the subscriber
|
11 |
| chooses may involve a charge to the subscriber for
|
12 |
| changing the subscriber's electric service provider.
|
13 |
| (6) Letters of agency shall not suggest or require
that |
14 |
| a subscriber take some action in order to retain the
|
15 |
| subscriber's current electric service provider.
|
16 |
| (7) If any portion of a letter of agency is
translated |
17 |
| into another language, then all portions of
the letter of |
18 |
| agency must be translated into that
language.
|
19 |
| (b) An appropriately qualified independent third party has |
20 |
| obtained, in accordance with the procedures set forth in |
21 |
| paragraphs (1) through (4) of this subsection (b), the |
22 |
| subscriber's oral authorization to change electric suppliers |
23 |
| that confirms and includes appropriate verification data. The |
24 |
| independent third party (i) must not be owned, managed, |
25 |
| controlled, or directed by the supplier or the supplier's |
26 |
| marketing agent; (ii) must not have any financial incentive to |
|
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LRB095 03672 MJR 37298 a |
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| confirm supplier change requests for the supplier or the |
2 |
| supplier's marketing agent; and (iii) must operate in a |
3 |
| location physically separate from the supplier or the |
4 |
| supplier's marketing agent.
|
5 |
| Automated third-party verification systems and 3-way |
6 |
| conference calls may be used for verification purposes so long |
7 |
| as the other requirements of paragraphs (2) through (4) of this |
8 |
| subsection (b) are satisfied. |
9 |
| A supplier or supplier's sales representative initiating a |
10 |
| 3-way conference call or a call through an automated |
11 |
| verification system must drop off the call once the 3-way |
12 |
| connection has been established. |
13 |
| All third-party verification methods shall elicit, at a |
14 |
| minimum, the following information: (i) the identify of the |
15 |
| subscriber; (ii) confirmation that the person on the call is |
16 |
| authorized to make the supplier change; (iii) confirmation that |
17 |
| the person on the call wants to make the supplier change; (iv) |
18 |
| the names of the suppliers affected by the change; and (v) the |
19 |
| service address of the supply to be switched. Third-party |
20 |
| verifiers may not market the supplier's services by providing |
21 |
| additional information, including information regarding |
22 |
| procedures to block or otherwise freeze an account against |
23 |
| further changes. |
24 |
| All third-party verifications shall be conducted in the |
25 |
| same language that was used in the underlying sales transaction |
26 |
| and shall be recorded in their entirety. Submitting suppliers |
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LRB095 03672 MJR 37298 a |
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| shall maintain and preserve audio records of verification of |
2 |
| subscriber authorization for a minimum period of 2 years after |
3 |
| obtaining the verification. Automated systems must provide |
4 |
| consumers with an option to speak with a live person at any |
5 |
| time during the call.
|
6 |
| (c) When a subscriber initiates the call to the prospective |
7 |
| electric supplier and the prospective electric supplier has, |
8 |
| with the consent of the customer, made a date-stamped and |
9 |
| time-stamped audio recording that elicits, at a minimum, the |
10 |
| following information: |
11 |
| (1) the identity of the subscriber; |
12 |
| (2) confirmation that the person on the call is |
13 |
| authorized to make the supplier change; |
14 |
| (3) confirmation that the person on the call wants to |
15 |
| make the supplier change; |
16 |
| (4) the names of the suppliers affected by the change; |
17 |
| and |
18 |
| (5) the service address of the supply to be switched. |
19 |
| Submitting suppliers shall maintain and preserve the audio |
20 |
| records containing the information set forth above for a |
21 |
| minimum period of 2 years.
|
22 |
| (d) For purposes of this
Section, "electric service |
23 |
| provider"
shall have the meaning given that phrase in
Section |
24 |
| 6.5 of the
Attorney General Act.
|
25 |
| (Source: P.A. 90-561, eff. 12-16-97.)".
|