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Sen. Don Harmon
Filed: 4/9/2008
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| AMENDMENT TO SENATE BILL 2783
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| AMENDMENT NO. ______. Amend Senate Bill 2783, AS AMENDED, |
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| by replacing everything after the enacting clause with the |
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| following:
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| "Section 5. The Public Utilities Act is amended by changing |
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| Sections 19-105, 19-110, 19-115, 19-120, and 19-125 as follows:
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| (220 ILCS 5/19-105)
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| Sec. 19-105. Definitions. For the purposes of this Article, |
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| the following
terms shall be defined as set forth in this |
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| Section.
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| "Alternative gas supplier" means every person, |
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| cooperative, corporation,
municipal corporation, company, |
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| association, joint stock company or
association, firm,
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| partnership, individual, or other entity, their lessees, |
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| trustees, or receivers
appointed by
any court whatsoever, that |
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| offers gas for sale, lease, or in exchange for other
value
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| received to one or more customers, or that engages in the |
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| furnishing of gas to
one or
more customers, and shall include |
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| affiliated interests of a gas utility,
resellers,
aggregators |
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| and marketers, but shall not include (i) gas utilities (or any
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| agent of the gas
utility to the extent the gas utility provides |
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| tariffed services to customers
through an
agent); (ii) public |
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| utilities that are owned and operated by any political
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| subdivision, public institution of higher education or |
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| municipal corporation
of this State, or public utilities that |
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| are owned by a political
subdivision, public institution of |
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| higher education, or municipal corporation
and operated by any |
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| of its lessees or operating agents; (iii)
natural gas |
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| cooperatives that are not-for-profit corporations operated for
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| the purpose of administering, on a cooperative basis, the
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| furnishing of natural gas for the benefit of their members who
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| are
consumers of natural gas; and (iv) the ownership or |
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| operation
of a facility that sells compressed natural gas at |
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| retail to the public for use
only as a motor vehicle fuel and |
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| the selling of compressed natural gas at
retail to the public |
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| for use only as a motor vehicle fuel.
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| "Gas utility" means a public utility, as defined in Section |
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| 3-105 of this
Act,
that
has a franchise, license, permit, or |
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| right to furnish or sell gas
or transportation services to
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| customers within a service area.
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| "Residential customer" means a customer who receives gas |
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| utility service for
household purposes distributed to a |
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| dwelling of 2 or fewer units which is
billed under
a |
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| residential rate or gas utility service for household purposes |
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| distributed to
a dwelling
unit or units which is billed under a |
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| residential rate and is registered by a
separate meter
for each |
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| dwelling unit.
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| "Sales agent" means any employee, agent, independent |
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| contractor, consultant, or other person that solicits |
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| customers to purchase, enroll in, or contract for alternative |
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| gas service on behalf of an alternative gas supplier. |
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| "Service area" means (i) the geographic area within which a |
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| gas utility was
lawfully entitled to provide gas to customers |
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| as of the effective date
of this
amendatory
Act of the 92nd |
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| General Assembly and includes (ii) the location of any
customer |
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| to
which the gas utility was lawfully providing gas utility |
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| services on such
effective date.
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| "Small commercial customer" means a nonresidential retail |
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| customer of
a
natural gas utility
who is identified by the |
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| alternative gas supplier, prior
to becoming a customer of the |
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| alternative gas supplier, as
consuming 5,000 or fewer therms of |
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| natural gas
during the previous year; provided that any |
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| alternative gas
supplier may remove the customer from |
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| designation as a "small
commercial customer" if the customer |
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| consumes more than 5,000 therms
of natural gas in any calendar |
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| year after becoming a customer of the
alternative gas supplier.
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| "Tariffed service" means a service provided to customers by |
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| a gas
utility as
defined by its rates on file with the |
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| Commission pursuant to the provisions of
Article IX
of this |
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| Act.
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| "Transportation services" means those services provided by |
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| the gas utility
that
are necessary in order for the storage, |
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| transmission and distribution systems
to
function so that
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| customers located in the gas utility's service area can receive |
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| gas from
suppliers other
than the gas utility and shall |
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| include, without limitation, standard metering
and billing
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| services.
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| (Source: P.A. 94-738, eff. 5-4-06.)
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| (220 ILCS 5/19-110)
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| Sec. 19-110. Certification of alternative gas suppliers.
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| (a) The provisions of this Section shall apply only to |
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| alternative gas
suppliers
serving or seeking to serve |
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| residential or small commercial customers and
only to the |
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| extent such
alternative gas suppliers provide services to |
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| residential or small
commercial customers.
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| (b) An alternative gas supplier must obtain a certificate |
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| of service
authority from the Commission in accordance with |
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| this Section before serving
any customer or other user located |
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| in this State. An alternative gas supplier
may request, and the |
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| Commission may grant, a certificate of service authority
for |
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| the entire State or for a specified geographic area of the |
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| State. A
person, corporation, or other entity acting as an |
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| alternative gas supplier on
the effective date of this |
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| amendatory Act of the 92nd General Assembly shall
have 180 days |
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| from the effective date of this amendatory Act of the 92nd
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| General Assembly to comply with the requirements of this |
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| Section in order to
continue to operate as an alternative gas |
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| supplier.
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| (c) An alternative gas supplier seeking a certificate of |
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| service authority
shall
file with the Commission a verified |
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| application containing information showing
that the
applicant |
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| meets the requirements of this Section. The alternative gas |
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| supplier
shall
publish notice of its application in the |
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| official State newspaper within 10
days following
the date of |
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| its filing. No later than 45 days after the application is
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| properly filed with the
Commission, and such notice is |
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| published, the Commission shall issue its order
granting or |
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| denying the application.
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| (d) An application for a certificate of service authority |
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| shall identify the
area or
areas in which the applicant intends |
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| to offer service and the types of services
it intends
to offer. |
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| Applicants that seek to serve residential or small commercial
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| customers within a
geographic area that is smaller than a gas |
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| utility's service area shall submit
evidence demonstrating |
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| that the designation of this smaller area does not
violate |
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| Section 19-115. An
applicant may
state in its application for |
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| certification any limitations that will be imposed
on the |
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| number
of customers or maximum load to be served.
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| (e) The Commission shall grant the application for a |
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| certificate of service
authority if it makes the findings set |
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| forth in this subsection based on the
verified
application and |
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| such other information as the applicant may submit.
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| (1) That the applicant possess sufficient technical, |
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| financial, and
managerial resources and abilities to |
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| provide the service for which it
seeks a certificate of |
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| service authority. In determining the level of
technical, |
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| financial, and managerial resources and abilities which |
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| the
applicant must demonstrate, the Commission shall |
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| consider
the characteristics, including the size and |
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| financial sophistication of the
customers that the |
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| applicant seeks to serve, and shall consider whether the
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| applicant seeks to provide gas using property, plant, and |
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| equipment that it
owns, controls, or operates.
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| (2) That the applicant will comply with all applicable |
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| federal, State,
regional, and industry rules, policies, |
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| practices, and procedures
for the use, operation, and |
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| maintenance of the safety, integrity, and
reliability of |
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| the gas transmission system.
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| (3) That the applicant will comply with such |
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| informational or reporting
requirements as the Commission |
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| may by rule establish.
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| (4) That
the area to be served by the applicant and any |
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| limitations it proposes on the
number of customers or |
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| maximum amount of load to be served meet the provisions
of |
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| Section 19-115, provided, that if the applicant seeks to |
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| serve an area
smaller than the service area of a gas |
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| utility or proposes other limitations
on the number of |
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| customers or maximum amount of load to be served, the
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| Commission can extend the time for
considering such a |
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| certificate request by up to 90 days, and can schedule
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| hearings on such a request.
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| (5) That the applicant will comply with all other |
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| applicable laws and
rules.
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| (6) That the applicant and the applicant's sales agents |
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| will comply with all applicable federal, State, and |
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| industry rules, policies, practices, and procedures for |
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| marketing and soliciting customers. |
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| (f) The Commission shall have the authority to promulgate |
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| rules
to carry out the provisions of this Section. Within 30 |
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| days after the
effective date of this amendatory Act of the |
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| 92nd General Assembly, the
Commission shall adopt an emergency |
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| rule or rules applicable to the
certification of those gas |
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| suppliers that seek to serve residential customers.
Within 180 |
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| days of
the effective
date of this amendatory Act of the 92nd |
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| General Assembly, the Commission shall
adopt
rules that specify |
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| criteria which, if met by any such alternative gas
supplier, |
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| shall
constitute the demonstration of technical, financial, |
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| and managerial resources
and
abilities to provide service |
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| required by item (1) of subsection (e) of this
Section,
such as |
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| a
requirement to post a bond or letter of credit, from a |
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| responsible surety or
financial
institution, of sufficient |
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| size for the nature and scope of the services to be
provided,
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| demonstration of adequate insurance for the scope and nature of |
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| the services to
be
provided, and experience in providing |
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| similar services in other
jurisdictions.
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| |
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| (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
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| (220 ILCS 5/19-115)
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| Sec. 19-115. Obligations of alternative gas suppliers.
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| (a) The provisions of this Section shall apply only to |
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| alternative gas
suppliers
serving or seeking to serve |
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| residential or small commercial customers and
only to the |
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| extent such
alternative gas suppliers provide services to |
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| residential or small
commercial customers.
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| (b) An alternative gas supplier shall:
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| (1) comply with the requirements imposed on public |
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| utilities by Sections
8-201 through 8-207, 8-301, 8-505 and |
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| 8-507 of this Act, to the
extent that these Sections have |
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| application to the services being
offered by the |
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| alternative gas supplier; and
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| (2) continue to comply with the requirements for |
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| certification stated
in
Section 19-110 ; .
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| (3) comply with complaint procedures established by |
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| the Commission; |
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| (4) file with the Commission, within 5 business days |
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| after the effective date of this amendatory Act of the 95th |
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| General Assembly, a copy of bill formats, standard customer |
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| contract and customer complaint and resolution procedures, |
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| and the name and telephone number of the company |
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| representative whom Commission employees may contact to |
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| resolve customer complaints and other matters, and file |
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| updated information within 5 business days after changes in |
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| any of the requirements of this item (4); and |
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| (5) maintain a customer call center where customers can |
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| reach a representative and receive current information, |
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| and notify customers no less often than once every 6 months |
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| on how to reach the call center. |
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| (c) An alternative gas supplier shall obtain verifiable |
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| authorization from a
customer, in a form or manner approved by |
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| the Commission, before the customer
is
switched from another |
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| supplier.
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| (d) No alternative gas supplier shall:
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| (1) enter into or employ any
arrangements which have |
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| the effect of preventing any customer from having
access to
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| the services of the gas utility in whose service area the |
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| customer is located;
or
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| (2) charge customers for such access ; or . |
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| (3) bill for goods or services not authorized by the |
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| customer.
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| (e) An alternative gas supplier that is certified to serve |
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| residential
or small commercial customers shall not:
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| (1) deny service to a customer or group of customers |
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| nor
establish any differences as to prices, terms,
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| conditions, services, products, facilities, or in any |
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| other respect, whereby
such denial or differences are based |
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| upon race, gender, or income; or
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| (2) deny service based on locality, nor establish any |
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| unreasonable
difference as to prices, terms, conditions, |
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| services, products, or facilities
as
between localities ; .
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| (3) include in any agreement a provision that obligates |
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| a customer to the terms of the agreement if the customer |
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| moves outside the gas utility service territory or moves to |
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| a location within the service territory where the customer |
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| will not require natural gas service; or |
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| (4) assign the agreement to any alternative natural gas |
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| supplier unless: |
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| (A) the supplier is an alternative gas supplier |
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| certified by the Commission, |
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| (B) the rates, terms, and conditions of the |
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| agreement being assigned do not change during the |
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| remainder of the time covered by the agreement, |
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| (C) the customer is given no less than 30 days |
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| prior written notice of the assignment and contact |
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| information for the new supplier, and |
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| (D) the supplier assigning the contract provides |
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| contact information that a customer can use to resolve |
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| a dispute. |
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| (f) An alternative gas supplier shall comply with the |
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LRB095 18103 MJR 49106 a |
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| following requirements
with respect to the marketing, |
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| offering, and provision of products or services:
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| (1) Any marketing materials which make statements |
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| concerning prices,
terms, and conditions of service shall |
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| contain information that
adequately discloses the prices, |
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| terms and conditions of the products
or services.
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| (2) Before any customer is switched from another |
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| supplier, the
alternative gas supplier shall give the |
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| customer written information
that adequately discloses, in |
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| plain language, the prices, terms, and
conditions of the |
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| products and services being offered and sold to the
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| customer.
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| (3) The alternative gas supplier shall provide to the |
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| customer:
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| (A) accurate, timely, and itemized billing |
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| statements that describe
the products and services
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| provided to the customer and their prices
and that |
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| specify the
gas consumption amount and any service
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| charges and taxes; provided that this item (f)(3)(A) |
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| does not apply to small
commercial customers;
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| (B) an additional
statement, at least annually, |
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| that adequately discloses the average
monthly prices, |
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| and the terms and conditions, of the products and
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| services sold to the customer; provided that this item |
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| (f)(3)(B) does not
apply to small commercial |
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| customers;
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| (C) refunds of any deposits with interest within 30 |
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| days after the
date
that the customer changes gas |
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| suppliers or discontinues service if the customer
has |
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| satisfied all of his or her outstanding financial |
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| obligations to the
alternative gas supplier at an |
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| interest rate set by the Commission which shall
be the |
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| same as that required of gas utilities; and
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| (D) refunds, in a timely fashion, of all undisputed |
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| overpayments upon
the oral or written request of the |
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| customer.
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| (4) An alternative gas supplier and its sales agents |
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| shall refrain from any direct marketing or soliciting to |
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| consumers on the gas utility's "Do Not Contact List", which |
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| the alternative gas supplier shall obtain each week from |
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| the gas utility in whose service area the consumer is |
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| provided with gas service. |
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| (5) An alternative gas supplier and its sales agents |
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| shall not utilize false, misleading, materially |
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| inaccurate, or otherwise deceptive language or materials |
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| in soliciting or providing services. |
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| (6) An alternative gas supplier and its sales agents |
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| shall refrain from misrepresenting the affiliation of the |
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| alternative supplier with the gas utility, governmental |
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| bodies or consumer groups. |
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| (7) If any sales solicitation, agreement, contract, or |
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| verification is translated into another language and |
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| provided to a customer, all of the documents must be |
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| provided to the customer in that other language. |
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| (8) Any sales solicitation shall adequately disclose |
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| the prices, terms, and conditions of the products and |
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| service. |
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| (9) Any agreement that contains an early termination |
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| clause shall disclose the amount of the early termination |
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| fee, provided, however, that any early termination fee or |
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| penalty shall not exceed $50. |
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| (10) Within one day after electronic receipt of a |
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| customer switch from the alternative gas supplier and |
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| confirmation of eligibility, the gas utility shall provide |
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| the customer written notice confirming the switch. The |
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| alternative gas supplier shall provide each customer the |
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| opportunity to rescind its agreement without penalty |
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| within 10 business days after the date on the gas utility |
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| notice to the customer. The alternative gas supplier shall |
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| disclose to the customer all of the following: |
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| (A) that the gas utility will send a notice |
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| confirming the switch; |
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| (B) that from the date the utility issues the |
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| notice confirming the switch, the customer shall have |
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| 10 business days to rescind the switch without penalty; |
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| (C) that the customer shall contact the gas utility |
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| to rescind the switch; and |
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| (D) the contact information for the gas utility. |
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| The alternative gas supplier disclosure shall be |
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| included in its sales solicitations, contracts, and all |
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| applicable sales verification scripts. |
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| (g) An alternative gas supplier may limit the overall size |
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| or availability
of
a
service offering by specifying one or more |
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| of the following:
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| (1) a maximum number
of
customers and maximum amount of |
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| gas load to be served;
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| (2) time period during which
the
offering will be |
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| available; or
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| (3) other comparable limitation, but not including
the
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| geographic locations of customers within the area which the |
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| alternative gas
supplier is
certificated to serve.
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| The alternative gas supplier shall file the terms and
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| conditions of
such service offering including the applicable |
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| limitations with the Commission
prior to
making the service |
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| offering available to customers.
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| (h) Nothing in this Section shall be construed as |
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| preventing an alternative
gas
supplier that is an affiliate of, |
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| or which contracts with,
(i) an industry or
trade
organization |
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| or association,
(ii) a membership organization or association |
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| that
exists for
a purpose other than the purchase of gas, or
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| (iii) another organization that
meets criteria
established in a |
24 |
| rule adopted by the Commission from offering through the
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| organization
or association services at prices, terms and |
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| conditions that are available
solely to the
members of the |
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| organization or association.
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| (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
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| (220 ILCS 5/19-120)
|
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| Sec. 19-120. Commission oversight of services provided by |
5 |
| gas
suppliers.
|
6 |
| (a) The provisions of this Section shall apply only to |
7 |
| alternative gas
suppliers
serving or seeking to serve |
8 |
| residential or small commercial customers and
only to the |
9 |
| extent such
alternative gas suppliers provide services to |
10 |
| residential or small
commercial customers.
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| (b) The Commission shall have jurisdiction in accordance |
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| with the provisions
of Article X of this Act to entertain and |
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| dispose of any complaint against any
alternative
gas supplier |
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| alleging that:
|
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| (1) the alternative gas supplier has violated or is
in
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| nonconformance with any applicable provisions of Section |
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| 19-110 or Section
19-115;
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| (2) an alternative gas supplier has failed to provide |
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| service in
accordance with the
terms of its contract or |
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| contracts with a customer or customers;
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| (3) the
alternative
gas supplier has violated or is in |
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| nonconformance with the transportation
services tariff
of, |
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| or any of its agreements relating to transportation |
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| services with, the gas
utility or
municipal system |
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| providing transportation services; or
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LRB095 18103 MJR 49106 a |
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| (4) the
alternative gas
supplier has violated or failed |
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| to comply with the requirements of Sections
8-201
through |
3 |
| 8-207, 8-301, 8-505, or 8-507 of this Act as made |
4 |
| applicable to
alternative gas
suppliers.
|
5 |
| (c) The Commission shall have authority after notice and |
6 |
| hearing held on
complaint or on the Commission's own motion to |
7 |
| order any or all of the following remedies, penalties, or forms |
8 |
| of relief :
|
9 |
| (1) order an alternative gas supplier to cease and |
10 |
| desist, or correct,
any violation of or nonconformance with |
11 |
| the provisions of Section
19-110 or 19-115;
|
12 |
| (2) impose financial penalties for violations of or |
13 |
| nonconformances
with the provisions of Section 19-110 or |
14 |
| 19-115, not to exceed (i)
$10,000 per occurrence ; or |
15 |
| (3) impose financial penalties for violations of or |
16 |
| nonconformances with the provisions of Section 19-110 or |
17 |
| 19-115, not to exceed (ii) $30,000 per day for those |
18 |
| violations or
nonconformances which continue after the |
19 |
| Commission issues a
cease-and-desist order; or and
|
20 |
| (3) alter, modify, revoke, or suspend the certificate |
21 |
| of service
authority
of an alternative gas supplier for |
22 |
| substantial or repeated violations of
or nonconformances |
23 |
| with the provisions of Section 19-110 or 19-115.
|
24 |
| (c-5) The Commission shall have the authority to |
25 |
| investigate, upon complaint or on its own motion, the marketing |
26 |
| practices of any alternative gas supplier that has been granted |
|
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09500SB2783sam002 |
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| a certificate of service authority. As used in this subsection |
2 |
| (c-5), "marketing practices" includes, but is not limited to, |
3 |
| all oral, written, and electronic communications made by the |
4 |
| alternative gas supplier to any person for the purpose of |
5 |
| selling gas service to the person. If, after notice and |
6 |
| hearing, the Commission finds that an alternative gas supplier |
7 |
| has engaged in any deception, fraud, false pretense, false |
8 |
| promise, or misrepresentation or the concealment, suppression |
9 |
| or omission of any material fact in its marketing practices, |
10 |
| whether or not any person has in fact been misled, deceived or |
11 |
| damaged thereby, the Commission may order any or all of the |
12 |
| following remedies, penalties, or forms of relief: |
13 |
| (1) order an alternative gas supplier to cease and |
14 |
| desist, or correct, any marketing practices found to have |
15 |
| been deceptive, fraudulent, or containing a false promise |
16 |
| or misrepresentation, or that concealed, suppressed, or |
17 |
| omitted any material fact; |
18 |
| (2) impose financial penalties on the alternative gas |
19 |
| supplier for engaging in marketing practices found to have |
20 |
| been deceptive, fraudulent, or containing a false promise |
21 |
| or misrepresentation, or that concealed, suppressed, or |
22 |
| omitted any material fact, not to exceed $10,000 per |
23 |
| occurrence; |
24 |
| (3) impose financial penalties on the alternative gas |
25 |
| supplier for engaging in marketing practices found to have |
26 |
| been deceptive, fraudulent, or containing a false promise |
|
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| or misrepresentation, or that concealed, suppressed, or |
2 |
| omitted any material fact, not to exceed $30,000 per day |
3 |
| for those violations or nonconformances that continue |
4 |
| after the Commission issues a cease and desist order; or |
5 |
| (4) revoke or suspend the certificate of service |
6 |
| authority of the alternative gas supplier for repeated |
7 |
| violations in which the Commission has found that the |
8 |
| alternative gas supplier has engaged in marketing |
9 |
| practices that are deceptive, fraudulent, or containing a |
10 |
| false promise or misrepresentation, or that concealed, |
11 |
| suppressed, or omitted any material fact. |
12 |
| (d) Nothing in this Act shall be construed to limit, |
13 |
| restrict, or
mitigate
in
any way the power and authority of the |
14 |
| State's Attorneys or the Attorney
General under the Consumer |
15 |
| Fraud and Deceptive Business Practices Act.
|
16 |
| (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
|
17 |
| (220 ILCS 5/19-125)
|
18 |
| Sec. 19-125. Consumer education.
|
19 |
| (a) The Commission shall make available upon request and at |
20 |
| no charge, and
shall make available to the public
on the |
21 |
| Internet through the State of Illinois World Wide Web site:
|
22 |
| (1) a list of all certified alternative gas suppliers |
23 |
| serving residential
and
small commercial customers
within |
24 |
| the service area of each gas utility including, in the case |
25 |
| of the
Internet, computer links to available web sites of |
|
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| the certified alternative
gas
suppliers;
|
2 |
| (2) a list of all certified alternative gas suppliers |
3 |
| serving residential
or
small commercial customers
that |
4 |
| have been found in the last 3 years by the Commission |
5 |
| pursuant to Section
10-108 to have failed
to provide |
6 |
| service in accordance with this Act;
|
7 |
| (3) guidelines to assist customers in determining |
8 |
| which gas supplier is
most
appropriate for each
customer; |
9 |
| and
|
10 |
| (4) Internet links to providers of information
that |
11 |
| enables customers
to
compare prices and
services of gas |
12 |
| utilities and alternative gas suppliers, if and
when that |
13 |
| information is available.
|
14 |
| (b) In any service area where customers are able to choose |
15 |
| their natural gas
supplier, the Commission shall require gas |
16 |
| utilities and alternative gas
suppliers to inform customers of |
17 |
| how they may contact the Commission in order
to
obtain |
18 |
| information about the customer choice program.
|
19 |
| (c) The Commission shall make available in print, upon |
20 |
| request and at no charge, and on its World Wide Web site, |
21 |
| information on which customers of alternative gas suppliers |
22 |
| serving residential and small commercial customers may address |
23 |
| any complaint with regard to an alternative gas supplier's |
24 |
| obligations under Section 19-115 of this Article, including the |
25 |
| provision of service in accordance with the terms of its |
26 |
| contract, sales tactics, and rates. The Commission shall |
|
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| maintain a summary by category and provider of all informal |
2 |
| complaints it receives pursuant to this Section, and it shall |
3 |
| publish the summary on a quarterly basis on its World Wide Web |
4 |
| site. Individual customer information shall not be included in |
5 |
| the summary. |
6 |
| (Source: P.A. 92-852, eff. 8-26-02.)
|
7 |
| Section 10. The Consumer Fraud and Deceptive Business |
8 |
| Practices Act is amended by adding Sections 2BBB, 2CCC, 2DDD, |
9 |
| and 2EEE as follows: |
10 |
| (815 ILCS 505/2BBB new)
|
11 |
| Sec. 2BBB. Natural gas provider selection. |
12 |
| (a) A natural gas provider shall not submit or execute a |
13 |
| change in a customer's selection of a provider of natural gas |
14 |
| service unless and until: |
15 |
| (1) the provider first discloses all material terms and |
16 |
| conditions of the offer to the customer; |
17 |
| (2) the provider has obtained the customer's express |
18 |
| agreement to accept the offer, after the disclosure of all |
19 |
| material terms and conditions of the offer, in a form that |
20 |
| meets the requirements of this Section; and |
21 |
| (3) the provider has confirmed the request for a change |
22 |
| in natural gas provider either (i) using a letter of agency |
23 |
| as provided in subsection (b) or (ii) using an independent |
24 |
| third-party verification as provided in subsection (c). |
|
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| (b) Letter of agency. |
2 |
| (1) A natural gas provider may obtain the necessary |
3 |
| confirmation from a customer for a change in natural gas |
4 |
| service by using a letter of agency as specified in this |
5 |
| subsection. Any letter of agency that does not conform with |
6 |
| this subsection is invalid. |
7 |
| (2) The letter of agency is not effective unless it has |
8 |
| been signed and dated by the customer requesting the |
9 |
| natural gas provider change. |
10 |
| (3) At a minimum, the letter of agency must be printed |
11 |
| with a print of sufficient size to be clearly legible and |
12 |
| must contain clear and unambiguous language that: |
13 |
| (A) confirms the customer's billing name and |
14 |
| address; |
15 |
| (B) confirms the customer's decision to change the |
16 |
| natural gas provider from the current provider to the |
17 |
| prospective provider; |
18 |
| (C) clearly and conspicuously discloses, in |
19 |
| writing, the terms, conditions, and nature of the |
20 |
| service to be provided to the customer, and directly |
21 |
| identifies or establishes the rates for the service |
22 |
| contracted for by the customer; and |
23 |
| (D) states that the customer understands that any |
24 |
| change in natural gas provider that the customer |
25 |
| chooses may involve a charge to the customer for |
26 |
| changing the customer's natural gas provider. |
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| (4) Except as allowed in item (5), the letter of agency |
2 |
| shall be a separate or easily separable document, |
3 |
| containing only the language described in item (3), and the |
4 |
| sole purpose of which is to authorize a natural gas |
5 |
| provider change. Except as allowed in item (5), the letter |
6 |
| of agency shall not be combined with inducements of any |
7 |
| kind in the same document. |
8 |
| (5) The letter of agency may be combined with a check |
9 |
| that contains only the required letter of agency language |
10 |
| prescribed in item (3) and the necessary information to |
11 |
| make the check a negotiable instrument. The letter of |
12 |
| agency check shall not contain any promotional language or |
13 |
| material. The letter of agency check shall contain, in |
14 |
| easily readable bold-face type on the face of the check, a |
15 |
| notice that the consumer is authorizing a change in natural |
16 |
| gas provider by signing the check. The letter of agency |
17 |
| language shall also be placed near the signature line on |
18 |
| the back of the check. |
19 |
| (6) A letter of agency shall not suggest or require |
20 |
| that a customer take some action in order to retain the |
21 |
| customer's current natural gas provider. |
22 |
| (7) If any portion of a letter of agency is translated |
23 |
| into another language, then all portions of the letter of |
24 |
| agency must be translated into that language. |
25 |
| (c) Third-party verification. |
26 |
| (1) A natural gas provider may obtain the necessary |
|
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| confirmation from a customer for a change in natural gas |
2 |
| service by using an appropriately qualified independent |
3 |
| third party, in accordance with this subsection, to confirm |
4 |
| the customer's oral authorization to change natural gas |
5 |
| providers. Third-party confirmation must include |
6 |
| appropriate verification data. The independent third |
7 |
| party: |
8 |
| (i) must not be owned, managed, controlled, or |
9 |
| directed by the provider or the provider's marketing |
10 |
| agent; |
11 |
| (ii) must not have any financial incentive to |
12 |
| confirm provider change requests for the provider or |
13 |
| the provider's marketing agent; and |
14 |
| (iii) must operate in a location physically |
15 |
| separate from the provider or the provider's marketing |
16 |
| agent. |
17 |
| (2) Automated third-party verification systems and |
18 |
| 3-way conference calls may be used for verification |
19 |
| purposes, so long as the other requirements of this |
20 |
| subsection (c) are satisfied. A provider or provider's |
21 |
| sales representative initiating a 3-way conference call or |
22 |
| a call through an automated verification system must drop |
23 |
| off the call once the 3-way connection has been |
24 |
| established. |
25 |
| (3) All third-party verification methods must elicit, |
26 |
| at a minimum, the following information: (i) the identity |
|
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| of the customer; (ii) confirmation that the person on the |
2 |
| call is authorized to make the provider change; (iii) |
3 |
| confirmation that the person on the call wants to make the |
4 |
| provider change; (iv) the names of the providers affected |
5 |
| by the change; (v) the service address of the service to be |
6 |
| switched; and (vi) the price of the service to be provided |
7 |
| and the material terms and conditions of the service being |
8 |
| offered, including whether any early termination fees |
9 |
| apply. |
10 |
| (4) Third-party verifiers may not market the |
11 |
| provider's services by providing additional information, |
12 |
| including information regarding procedures to block or |
13 |
| otherwise freeze an account against further changes. |
14 |
| (5) All third-party verifications shall be conducted |
15 |
| in the same language that was used in the underlying sales |
16 |
| transaction and shall be recorded in their entirety. A |
17 |
| natural gas provider shall maintain and preserve audio |
18 |
| records of verification of customer authorization for a |
19 |
| minimum period of 2 years after obtaining the verification. |
20 |
| Automated systems must provide customers with an option to |
21 |
| speak with a live person at any time during the call. |
22 |
| (d) When a consumer initiates the call to the prospective |
23 |
| natural gas provider, in order to enroll the consumer as a |
24 |
| customer, the prospective natural gas provider must, with the |
25 |
| consent of the customer, make a date-stamped and time-stamped |
26 |
| audio recording that elicits, at a minimum, the following |
|
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09500SB2783sam002 |
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| information: (i) the identity of the customer; (ii) |
2 |
| confirmation that the person on the call is authorized to make |
3 |
| the provider change; (iii) confirmation that the person on the |
4 |
| call wants to make the provider change; (iv) the names of the |
5 |
| providers affected by the change; (v) the service address of |
6 |
| the service to be switched; and (vi) the price of the service |
7 |
| to be provided and the material terms and conditions of the |
8 |
| service being offered, including whether any early termination |
9 |
| fees apply. A natural gas provider must maintain and preserve |
10 |
| the audio records required under this subsection (d) for a |
11 |
| minimum period of 2 years. |
12 |
| (e) Complaints may be filed with the Illinois Commerce |
13 |
| Commission under this Section by a customer whose natural gas |
14 |
| service provider has been changed or affected by a natural gas |
15 |
| provider in a manner not in compliance with this Section. If, |
16 |
| after notice and hearing, the Commission finds that a natural |
17 |
| gas provider has violated this Section, the Commission may in |
18 |
| its discretion do any one or more of the following: |
19 |
| (1) Require the violating natural gas provider to |
20 |
| refund to the customer charges collected in excess of those |
21 |
| that would have been charged by the customer's authorized |
22 |
| natural gas provider. |
23 |
| (2) Require the violating natural gas provider to pay |
24 |
| to the customer's authorized natural gas provider the |
25 |
| amount the authorized natural gas provider would have |
26 |
| collected for the customer's natural gas service. The |
|
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09500SB2783sam002 |
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| Commission is authorized to reduce this payment by any |
2 |
| amount already paid by the violating natural gas provider |
3 |
| to the customer's authorized provider for that natural gas |
4 |
| service. |
5 |
| (3) Require the violating natural gas provider to pay a |
6 |
| fine of up to $1,000 into the Public Utility Fund for each |
7 |
| repeated and intentional violation of this Section. |
8 |
| (4) Issue a cease and desist order. |
9 |
| (5) For a pattern of violation of this Section or for |
10 |
| intentionally violating a cease and desist order, revoke |
11 |
| the violating provider's certificate of service authority. |
12 |
| (f) For purposes of this Section and Sections 2CCC, 2DDD, |
13 |
| and 2EEE of this Act, "natural gas provider" means a "gas |
14 |
| utility" or an "alternative gas supplier", as those terms are |
15 |
| defined in Section 19-105 of the Public Utilities Act, and |
16 |
| "natural gas service" means natural gas service sold by a gas |
17 |
| utility or alternative gas supplier. |
18 |
| (815 ILCS 505/2CCC new)
|
19 |
| Sec. 2CCC. Natural gas service fraud; elderly persons or |
20 |
| disabled persons; additional penalties. |
21 |
| (a) With respect to unlawful advertising, sale, provider |
22 |
| selection, billings, or collections relating to the provision |
23 |
| of natural gas service, where the consumer is an elderly person |
24 |
| or disabled person, a civil penalty of $50,000 may be imposed |
25 |
| for each violation of this Act. |
|
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09500SB2783sam002 |
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LRB095 18103 MJR 49106 a |
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| (b) For the purposes of this Section: |
2 |
| "Elderly person" means a person 60 years of age or |
3 |
| older. |
4 |
| "Disabled person" means a person who suffers from a |
5 |
| permanent physical or mental impairment resulting from |
6 |
| disease, injury, functional disorder or congenital |
7 |
| condition. |
8 |
| "Natural gas service" has the meaning given that term |
9 |
| in Section 2BBB of this Act. |
10 |
| (815 ILCS 505/2DDD new)
|
11 |
| Sec. 2DDD. Natural gas service advertising. Any |
12 |
| advertisement for natural gas service that lists rates shall |
13 |
| clearly and conspicuously disclose all associated costs for |
14 |
| that service, including, but not limited to, access fees and |
15 |
| service fees. |
16 |
| (815 ILCS 505/2EEE new)
|
17 |
| Sec. 2EEE. Billing and collection practices of natural gas |
18 |
| providers. Each person selling transmission, distribution, |
19 |
| metering, or billing of natural gas service, or the commodity |
20 |
| of natural gas to be delivered to a customer through the |
21 |
| distribution system of a natural gas provider, shall display |
22 |
| the name, the toll-free telephone number of the natural gas |
23 |
| provider, and a description of the services provided on all |
24 |
| bills submitted to customers of such services. All personal |
|
|
|
09500SB2783sam002 |
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LRB095 18103 MJR 49106 a |
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| information relating to the customer of transmission, |
2 |
| distribution, metering, or billing of natural gas service, or |
3 |
| the customer purchasing the commodity of natural gas to be |
4 |
| delivered through the distribution system of a natural gas |
5 |
| provider, shall be maintained by the service providers solely |
6 |
| for the purpose of generating the bill for the sales and |
7 |
| services, and shall not be divulged to any other persons with |
8 |
| the exception of credit bureaus, collection agencies, and |
9 |
| persons licensed to market natural gas service in this State, |
10 |
| without the written consent of the customer.
|
11 |
| Section 99. Effective date. This Act takes effect upon |
12 |
| becoming law.".
|