Sen. Don Harmon
Filed: 4/9/2008
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1 | AMENDMENT TO SENATE BILL 2783
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2 | AMENDMENT NO. ______. Amend Senate Bill 2783, AS AMENDED, | ||||||
3 | by replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Public Utilities Act is amended by changing | ||||||
6 | Sections 19-105, 19-110, 19-115, 19-120, and 19-125 as follows:
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7 | (220 ILCS 5/19-105)
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8 | Sec. 19-105. Definitions. For the purposes of this Article, | ||||||
9 | the following
terms shall be defined as set forth in this | ||||||
10 | Section.
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11 | "Alternative gas supplier" means every person, | ||||||
12 | cooperative, corporation,
municipal corporation, company, | ||||||
13 | association, joint stock company or
association, firm,
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14 | partnership, individual, or other entity, their lessees, | ||||||
15 | trustees, or receivers
appointed by
any court whatsoever, that | ||||||
16 | offers gas for sale, lease, or in exchange for other
value
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1 | received to one or more customers, or that engages in the | ||||||
2 | furnishing of gas to
one or
more customers, and shall include | ||||||
3 | affiliated interests of a gas utility,
resellers,
aggregators | ||||||
4 | and marketers, but shall not include (i) gas utilities (or any
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5 | agent of the gas
utility to the extent the gas utility provides | ||||||
6 | tariffed services to customers
through an
agent); (ii) public | ||||||
7 | utilities that are owned and operated by any political
| ||||||
8 | subdivision, public institution of higher education or | ||||||
9 | municipal corporation
of this State, or public utilities that | ||||||
10 | are owned by a political
subdivision, public institution of | ||||||
11 | higher education, or municipal corporation
and operated by any | ||||||
12 | of its lessees or operating agents; (iii)
natural gas | ||||||
13 | cooperatives that are not-for-profit corporations operated for
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14 | the purpose of administering, on a cooperative basis, the
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15 | furnishing of natural gas for the benefit of their members who
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16 | are
consumers of natural gas; and (iv) the ownership or | ||||||
17 | operation
of a facility that sells compressed natural gas at | ||||||
18 | retail to the public for use
only as a motor vehicle fuel and | ||||||
19 | the selling of compressed natural gas at
retail to the public | ||||||
20 | for use only as a motor vehicle fuel.
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21 | "Gas utility" means a public utility, as defined in Section | ||||||
22 | 3-105 of this
Act,
that
has a franchise, license, permit, or | ||||||
23 | right to furnish or sell gas
or transportation services to
| ||||||
24 | customers within a service area.
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25 | "Residential customer" means a customer who receives gas | ||||||
26 | utility service for
household purposes distributed to a |
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1 | dwelling of 2 or fewer units which is
billed under
a | ||||||
2 | residential rate or gas utility service for household purposes | ||||||
3 | distributed to
a dwelling
unit or units which is billed under a | ||||||
4 | residential rate and is registered by a
separate meter
for each | ||||||
5 | dwelling unit.
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6 | "Sales agent" means any employee, agent, independent | ||||||
7 | contractor, consultant, or other person that solicits | ||||||
8 | customers to purchase, enroll in, or contract for alternative | ||||||
9 | gas service on behalf of an alternative gas supplier. | ||||||
10 | "Service area" means (i) the geographic area within which a | ||||||
11 | gas utility was
lawfully entitled to provide gas to customers | ||||||
12 | as of the effective date
of this
amendatory
Act of the 92nd | ||||||
13 | General Assembly and includes (ii) the location of any
customer | ||||||
14 | to
which the gas utility was lawfully providing gas utility | ||||||
15 | services on such
effective date.
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16 | "Small commercial customer" means a nonresidential retail | ||||||
17 | customer of
a
natural gas utility
who is identified by the | ||||||
18 | alternative gas supplier, prior
to becoming a customer of the | ||||||
19 | alternative gas supplier, as
consuming 5,000 or fewer therms of | ||||||
20 | natural gas
during the previous year; provided that any | ||||||
21 | alternative gas
supplier may remove the customer from | ||||||
22 | designation as a "small
commercial customer" if the customer | ||||||
23 | consumes more than 5,000 therms
of natural gas in any calendar | ||||||
24 | year after becoming a customer of the
alternative gas supplier.
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25 | "Tariffed service" means a service provided to customers by | ||||||
26 | a gas
utility as
defined by its rates on file with the |
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1 | Commission pursuant to the provisions of
Article IX
of this | ||||||
2 | Act.
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3 | "Transportation services" means those services provided by | ||||||
4 | the gas utility
that
are necessary in order for the storage, | ||||||
5 | transmission and distribution systems
to
function so that
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6 | customers located in the gas utility's service area can receive | ||||||
7 | gas from
suppliers other
than the gas utility and shall | ||||||
8 | include, without limitation, standard metering
and billing
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9 | services.
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10 | (Source: P.A. 94-738, eff. 5-4-06.)
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11 | (220 ILCS 5/19-110)
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12 | Sec. 19-110. Certification of alternative gas suppliers.
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13 | (a) The provisions of this Section shall apply only to | ||||||
14 | alternative gas
suppliers
serving or seeking to serve | ||||||
15 | residential or small commercial customers and
only to the | ||||||
16 | extent such
alternative gas suppliers provide services to | ||||||
17 | residential or small
commercial customers.
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18 | (b) An alternative gas supplier must obtain a certificate | ||||||
19 | of service
authority from the Commission in accordance with | ||||||
20 | this Section before serving
any customer or other user located | ||||||
21 | in this State. An alternative gas supplier
may request, and the | ||||||
22 | Commission may grant, a certificate of service authority
for | ||||||
23 | the entire State or for a specified geographic area of the | ||||||
24 | State. A
person, corporation, or other entity acting as an | ||||||
25 | alternative gas supplier on
the effective date of this |
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1 | amendatory Act of the 92nd General Assembly shall
have 180 days | ||||||
2 | from the effective date of this amendatory Act of the 92nd
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3 | General Assembly to comply with the requirements of this | ||||||
4 | Section in order to
continue to operate as an alternative gas | ||||||
5 | supplier.
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6 | (c) An alternative gas supplier seeking a certificate of | ||||||
7 | service authority
shall
file with the Commission a verified | ||||||
8 | application containing information showing
that the
applicant | ||||||
9 | meets the requirements of this Section. The alternative gas | ||||||
10 | supplier
shall
publish notice of its application in the | ||||||
11 | official State newspaper within 10
days following
the date of | ||||||
12 | its filing. No later than 45 days after the application is
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13 | properly filed with the
Commission, and such notice is | ||||||
14 | published, the Commission shall issue its order
granting or | ||||||
15 | denying the application.
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16 | (d) An application for a certificate of service authority | ||||||
17 | shall identify the
area or
areas in which the applicant intends | ||||||
18 | to offer service and the types of services
it intends
to offer. | ||||||
19 | Applicants that seek to serve residential or small commercial
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20 | customers within a
geographic area that is smaller than a gas | ||||||
21 | utility's service area shall submit
evidence demonstrating | ||||||
22 | that the designation of this smaller area does not
violate | ||||||
23 | Section 19-115. An
applicant may
state in its application for | ||||||
24 | certification any limitations that will be imposed
on the | ||||||
25 | number
of customers or maximum load to be served.
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26 | (e) The Commission shall grant the application for a |
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1 | certificate of service
authority if it makes the findings set | ||||||
2 | forth in this subsection based on the
verified
application and | ||||||
3 | such other information as the applicant may submit.
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4 | (1) That the applicant possess sufficient technical, | ||||||
5 | financial, and
managerial resources and abilities to | ||||||
6 | provide the service for which it
seeks a certificate of | ||||||
7 | service authority. In determining the level of
technical, | ||||||
8 | financial, and managerial resources and abilities which | ||||||
9 | the
applicant must demonstrate, the Commission shall | ||||||
10 | consider
the characteristics, including the size and | ||||||
11 | financial sophistication of the
customers that the | ||||||
12 | applicant seeks to serve, and shall consider whether the
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13 | applicant seeks to provide gas using property, plant, and | ||||||
14 | equipment that it
owns, controls, or operates.
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15 | (2) That the applicant will comply with all applicable | ||||||
16 | federal, State,
regional, and industry rules, policies, | ||||||
17 | practices, and procedures
for the use, operation, and | ||||||
18 | maintenance of the safety, integrity, and
reliability of | ||||||
19 | the gas transmission system.
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20 | (3) That the applicant will comply with such | ||||||
21 | informational or reporting
requirements as the Commission | ||||||
22 | may by rule establish.
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23 | (4) That
the area to be served by the applicant and any | ||||||
24 | limitations it proposes on the
number of customers or | ||||||
25 | maximum amount of load to be served meet the provisions
of | ||||||
26 | Section 19-115, provided, that if the applicant seeks to |
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1 | serve an area
smaller than the service area of a gas | ||||||
2 | utility or proposes other limitations
on the number of | ||||||
3 | customers or maximum amount of load to be served, the
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4 | Commission can extend the time for
considering such a | ||||||
5 | certificate request by up to 90 days, and can schedule
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6 | hearings on such a request.
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7 | (5) That the applicant will comply with all other | ||||||
8 | applicable laws and
rules.
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9 | (6) That the applicant and the applicant's sales agents | ||||||
10 | will comply with all applicable federal, State, and | ||||||
11 | industry rules, policies, practices, and procedures for | ||||||
12 | marketing and soliciting customers. | ||||||
13 | (f) The Commission shall have the authority to promulgate | ||||||
14 | rules
to carry out the provisions of this Section. Within 30 | ||||||
15 | days after the
effective date of this amendatory Act of the | ||||||
16 | 92nd General Assembly, the
Commission shall adopt an emergency | ||||||
17 | rule or rules applicable to the
certification of those gas | ||||||
18 | suppliers that seek to serve residential customers.
Within 180 | ||||||
19 | days of
the effective
date of this amendatory Act of the 92nd | ||||||
20 | General Assembly, the Commission shall
adopt
rules that specify | ||||||
21 | criteria which, if met by any such alternative gas
supplier, | ||||||
22 | shall
constitute the demonstration of technical, financial, | ||||||
23 | and managerial resources
and
abilities to provide service | ||||||
24 | required by item (1) of subsection (e) of this
Section,
such as | ||||||
25 | a
requirement to post a bond or letter of credit, from a | ||||||
26 | responsible surety or
financial
institution, of sufficient |
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1 | size for the nature and scope of the services to be
provided,
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2 | demonstration of adequate insurance for the scope and nature of | ||||||
3 | the services to
be
provided, and experience in providing | ||||||
4 | similar services in other
jurisdictions.
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5 | | ||||||
6 | (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
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7 | (220 ILCS 5/19-115)
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8 | Sec. 19-115. Obligations of alternative gas suppliers.
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9 | (a) The provisions of this Section shall apply only to | ||||||
10 | alternative gas
suppliers
serving or seeking to serve | ||||||
11 | residential or small commercial customers and
only to the | ||||||
12 | extent such
alternative gas suppliers provide services to | ||||||
13 | residential or small
commercial customers.
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14 | (b) An alternative gas supplier shall:
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15 | (1) comply with the requirements imposed on public | ||||||
16 | utilities by Sections
8-201 through 8-207, 8-301, 8-505 and | ||||||
17 | 8-507 of this Act, to the
extent that these Sections have | ||||||
18 | application to the services being
offered by the | ||||||
19 | alternative gas supplier; and
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20 | (2) continue to comply with the requirements for | ||||||
21 | certification stated
in
Section 19-110 ; .
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22 | (3) comply with complaint procedures established by | ||||||
23 | the Commission; | ||||||
24 | (4) file with the Commission, within 5 business days | ||||||
25 | after the effective date of this amendatory Act of the 95th |
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1 | General Assembly, a copy of bill formats, standard customer | ||||||
2 | contract and customer complaint and resolution procedures, | ||||||
3 | and the name and telephone number of the company | ||||||
4 | representative whom Commission employees may contact to | ||||||
5 | resolve customer complaints and other matters, and file | ||||||
6 | updated information within 5 business days after changes in | ||||||
7 | any of the requirements of this item (4); and | ||||||
8 | (5) maintain a customer call center where customers can | ||||||
9 | reach a representative and receive current information, | ||||||
10 | and notify customers no less often than once every 6 months | ||||||
11 | on how to reach the call center. | ||||||
12 | (c) An alternative gas supplier shall obtain verifiable | ||||||
13 | authorization from a
customer, in a form or manner approved by | ||||||
14 | the Commission, before the customer
is
switched from another | ||||||
15 | supplier.
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16 | (d) No alternative gas supplier shall:
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17 | (1) enter into or employ any
arrangements which have | ||||||
18 | the effect of preventing any customer from having
access to
| ||||||
19 | the services of the gas utility in whose service area the | ||||||
20 | customer is located;
or
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21 | (2) charge customers for such access ; or . | ||||||
22 | (3) bill for goods or services not authorized by the | ||||||
23 | customer.
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24 | (e) An alternative gas supplier that is certified to serve | ||||||
25 | residential
or small commercial customers shall not:
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26 | (1) deny service to a customer or group of customers |
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1 | nor
establish any differences as to prices, terms,
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2 | conditions, services, products, facilities, or in any | ||||||
3 | other respect, whereby
such denial or differences are based | ||||||
4 | upon race, gender, or income; or
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5 | (2) deny service based on locality, nor establish any | ||||||
6 | unreasonable
difference as to prices, terms, conditions, | ||||||
7 | services, products, or facilities
as
between localities ; .
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8 | (3) include in any agreement a provision that obligates | ||||||
9 | a customer to the terms of the agreement if the customer | ||||||
10 | moves outside the gas utility service territory or moves to | ||||||
11 | a location within the service territory where the customer | ||||||
12 | will not require natural gas service; or | ||||||
13 | (4) assign the agreement to any alternative natural gas | ||||||
14 | supplier unless: | ||||||
15 | (A) the supplier is an alternative gas supplier | ||||||
16 | certified by the Commission, | ||||||
17 | (B) the rates, terms, and conditions of the | ||||||
18 | agreement being assigned do not change during the | ||||||
19 | remainder of the time covered by the agreement, | ||||||
20 | (C) the customer is given no less than 30 days | ||||||
21 | prior written notice of the assignment and contact | ||||||
22 | information for the new supplier, and | ||||||
23 | (D) the supplier assigning the contract provides | ||||||
24 | contact information that a customer can use to resolve | ||||||
25 | a dispute. | ||||||
26 | (f) An alternative gas supplier shall comply with the |
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1 | following requirements
with respect to the marketing, | ||||||
2 | offering, and provision of products or services:
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3 | (1) Any marketing materials which make statements | ||||||
4 | concerning prices,
terms, and conditions of service shall | ||||||
5 | contain information that
adequately discloses the prices, | ||||||
6 | terms and conditions of the products
or services.
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7 | (2) Before any customer is switched from another | ||||||
8 | supplier, the
alternative gas supplier shall give the | ||||||
9 | customer written information
that adequately discloses, in | ||||||
10 | plain language, the prices, terms, and
conditions of the | ||||||
11 | products and services being offered and sold to the
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12 | customer.
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13 | (3) The alternative gas supplier shall provide to the | ||||||
14 | customer:
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15 | (A) accurate, timely, and itemized billing | ||||||
16 | statements that describe
the products and services
| ||||||
17 | provided to the customer and their prices
and that | ||||||
18 | specify the
gas consumption amount and any service
| ||||||
19 | charges and taxes; provided that this item (f)(3)(A) | ||||||
20 | does not apply to small
commercial customers;
| ||||||
21 | (B) an additional
statement, at least annually, | ||||||
22 | that adequately discloses the average
monthly prices, | ||||||
23 | and the terms and conditions, of the products and
| ||||||
24 | services sold to the customer; provided that this item | ||||||
25 | (f)(3)(B) does not
apply to small commercial | ||||||
26 | customers;
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1 | (C) refunds of any deposits with interest within 30 | ||||||
2 | days after the
date
that the customer changes gas | ||||||
3 | suppliers or discontinues service if the customer
has | ||||||
4 | satisfied all of his or her outstanding financial | ||||||
5 | obligations to the
alternative gas supplier at an | ||||||
6 | interest rate set by the Commission which shall
be the | ||||||
7 | same as that required of gas utilities; and
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8 | (D) refunds, in a timely fashion, of all undisputed | ||||||
9 | overpayments upon
the oral or written request of the | ||||||
10 | customer.
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11 | (4) An alternative gas supplier and its sales agents | ||||||
12 | shall refrain from any direct marketing or soliciting to | ||||||
13 | consumers on the gas utility's "Do Not Contact List", which | ||||||
14 | the alternative gas supplier shall obtain each week from | ||||||
15 | the gas utility in whose service area the consumer is | ||||||
16 | provided with gas service. | ||||||
17 | (5) An alternative gas supplier and its sales agents | ||||||
18 | shall not utilize false, misleading, materially | ||||||
19 | inaccurate, or otherwise deceptive language or materials | ||||||
20 | in soliciting or providing services. | ||||||
21 | (6) An alternative gas supplier and its sales agents | ||||||
22 | shall refrain from misrepresenting the affiliation of the | ||||||
23 | alternative supplier with the gas utility, governmental | ||||||
24 | bodies or consumer groups. | ||||||
25 | (7) If any sales solicitation, agreement, contract, or | ||||||
26 | verification is translated into another language and |
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| |||||||
1 | provided to a customer, all of the documents must be | ||||||
2 | provided to the customer in that other language. | ||||||
3 | (8) Any sales solicitation shall adequately disclose | ||||||
4 | the prices, terms, and conditions of the products and | ||||||
5 | service. | ||||||
6 | (9) Any agreement that contains an early termination | ||||||
7 | clause shall disclose the amount of the early termination | ||||||
8 | fee, provided, however, that any early termination fee or | ||||||
9 | penalty shall not exceed $50. | ||||||
10 | (10) Within one day after electronic receipt of a | ||||||
11 | customer switch from the alternative gas supplier and | ||||||
12 | confirmation of eligibility, the gas utility shall provide | ||||||
13 | the customer written notice confirming the switch. The | ||||||
14 | alternative gas supplier shall provide each customer the | ||||||
15 | opportunity to rescind its agreement without penalty | ||||||
16 | within 10 business days after the date on the gas utility | ||||||
17 | notice to the customer. The alternative gas supplier shall | ||||||
18 | disclose to the customer all of the following: | ||||||
19 | (A) that the gas utility will send a notice | ||||||
20 | confirming the switch; | ||||||
21 | (B) that from the date the utility issues the | ||||||
22 | notice confirming the switch, the customer shall have | ||||||
23 | 10 business days to rescind the switch without penalty; | ||||||
24 | (C) that the customer shall contact the gas utility | ||||||
25 | to rescind the switch; and | ||||||
26 | (D) the contact information for the gas utility. |
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| |||||||
1 | The alternative gas supplier disclosure shall be | ||||||
2 | included in its sales solicitations, contracts, and all | ||||||
3 | applicable sales verification scripts. | ||||||
4 | (g) An alternative gas supplier may limit the overall size | ||||||
5 | or availability
of
a
service offering by specifying one or more | ||||||
6 | of the following:
| ||||||
7 | (1) a maximum number
of
customers and maximum amount of | ||||||
8 | gas load to be served;
| ||||||
9 | (2) time period during which
the
offering will be | ||||||
10 | available; or
| ||||||
11 | (3) other comparable limitation, but not including
the
| ||||||
12 | geographic locations of customers within the area which the | ||||||
13 | alternative gas
supplier is
certificated to serve.
| ||||||
14 | The alternative gas supplier shall file the terms and
| ||||||
15 | conditions of
such service offering including the applicable | ||||||
16 | limitations with the Commission
prior to
making the service | ||||||
17 | offering available to customers.
| ||||||
18 | (h) Nothing in this Section shall be construed as | ||||||
19 | preventing an alternative
gas
supplier that is an affiliate of, | ||||||
20 | or which contracts with,
(i) an industry or
trade
organization | ||||||
21 | or association,
(ii) a membership organization or association | ||||||
22 | that
exists for
a purpose other than the purchase of gas, or
| ||||||
23 | (iii) another organization that
meets criteria
established in a | ||||||
24 | rule adopted by the Commission from offering through the
| ||||||
25 | organization
or association services at prices, terms and | ||||||
26 | conditions that are available
solely to the
members of the |
| |||||||
| |||||||
1 | organization or association.
| ||||||
2 | (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
| ||||||
3 | (220 ILCS 5/19-120)
| ||||||
4 | 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.
| ||||||
11 | (b) The Commission shall have jurisdiction in accordance | ||||||
12 | with the provisions
of Article X of this Act to entertain and | ||||||
13 | dispose of any complaint against any
alternative
gas supplier | ||||||
14 | alleging that:
| ||||||
15 | (1) the alternative gas supplier has violated or is
in
| ||||||
16 | nonconformance with any applicable provisions of Section | ||||||
17 | 19-110 or Section
19-115;
| ||||||
18 | (2) an alternative gas supplier has failed to provide | ||||||
19 | service in
accordance with the
terms of its contract or | ||||||
20 | contracts with a customer or customers;
| ||||||
21 | (3) the
alternative
gas supplier has violated or is in | ||||||
22 | nonconformance with the transportation
services tariff
of, | ||||||
23 | or any of its agreements relating to transportation | ||||||
24 | services with, the gas
utility or
municipal system | ||||||
25 | providing transportation services; or
|
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| |||||||
1 | (4) the
alternative gas
supplier has violated or failed | ||||||
2 | 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 |
| |||||||
| |||||||
1 | 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 |
| |||||||
| |||||||
1 | 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 |
| |||||||
| |||||||
1 | 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 |
| |||||||
| |||||||
1 | 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). |
| |||||||
| |||||||
1 | (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. |
| |||||||
| |||||||
1 | (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 |
| |||||||
| |||||||
1 | 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 |
| |||||||
| |||||||
1 | 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 |
| |||||||
| |||||||
1 | 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 |
| |||||||
| |||||||
1 | 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. |
| |||||||
| |||||||
1 | (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 |
| |||||||
| |||||||
1 | 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.".
|