101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2657

 

Introduced , by Rep. Anna Moeller

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-115A
220 ILCS 5/16-115E new
220 ILCS 5/16-118
220 ILCS 5/19-115
220 ILCS 5/19-116 new
220 ILCS 5/19-135
815 ILCS 505/2EE
815 ILCS 505/2DDD

    Amends the Public Utilities Act. Provides that an alternative retail electric supplier and alternative gas supplier shall: make certain information available on its website; send a separate written notice or electronic mail informing the residential customer of the upcoming change in price or other charge; and not automatically renew a contract with a residential customer at a rate higher than the initial term of the contract or automatically change or renew a fixed contract to a variable rate contract. Provides that all marketing materials shall contain the Historical Price to Compare from the immediately preceding 12 months. Provides, with exceptions, that beginning 90 days after the effective date of the Act, no customer who has received specified financial assistance within the preceding 12 months shall be switched to an alternative retail electric supplier or alternative gas supplier. Provides that beginning January 1, 2021, an alternative retail electric supplier or alternative gas supplier may apply to the Illinois Commerce Commission to offer a savings guarantee plan. Provides that every alternative retail electric supplier and alternative gas supplier shall include specific information on bills issued to a residential customer. Provides that every electric utility or gas utility that provides delivery and supply services shall include specific information on each bill to a residential customer who obtains supply from an alternative retail electric supplier or alternative gas supplier. Amends the Consumer Fraud and Deceptive Business Practices Act. Makes changes in provisions concerning electric service provider selection and alternative gas suppliers.


LRB101 08399 JRG 53469 b

 

 

A BILL FOR

 

HB2657LRB101 08399 JRG 53469 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Sections 16-115A, 16-118, 19-115, and 19-135 and by adding
6Sections 16-115E and 19-116 as follows:
 
7    (220 ILCS 5/16-115A)
8    Sec. 16-115A. Obligations of alternative retail electric
9suppliers.
10    (a) An alternative retail electric supplier shall:
11        (i) comply with the requirements imposed on public
12    utilities by Sections 8-201 through 8-207, 8-301, 8-505 and
13    8-507 of this Act, to the extent that these Sections have
14    application to the services being offered by the
15    alternative retail electric supplier; and
16        (ii) continue to comply with the requirements for
17    certification stated in subsection (d) of Section 16-115; .
18        (iii) make publicly available on its website, without
19    the need for a customer login, rate information for all of
20    its variable, time-of-use, and fixed rate contracts
21    currently available to a residential customer, including,
22    but not limited to, fixed monthly charges, early
23    termination charges, and kilowatt-hour charges;

 

 

HB2657- 2 -LRB101 08399 JRG 53469 b

1        (iv) no less than 30 days, but no more than 60 days,
2    before a residential customer's price per kilowatt hour or
3    other charge changes, send a separate written notice by
4    United States mail or electronic mail, as specified by the
5    residential customer, addressed to the residential
6    customer informing the residential customer of the
7    upcoming change in price or other charge; the changed price
8    per kilowatt hour or other charge shall be included in the
9    notice and shall not require the residential customer to
10    visit or log on to a website to obtain the change in price
11    or other charge; the telephone number and email address to
12    contact the supplier shall be included in the notice; and
13        (v) not automatically renew a contract with a
14    residential customer at a rate higher than the initial term
15    of the contract or automatically change or renew a fixed
16    contract to a variable rate contract. A residential
17    customer may agree to a contract renewal at a rate higher
18    than the initial term of the contract if the notice
19    requirements in paragraph (iv) have been met and the
20    residential customer expressly consents to the contract
21    renewal in writing or by an electronic signature. A
22    residential customer may void a variable rate contract
23    unless the residential customer received a disclosure
24    showing the prior 12 months under the variable rate
25    contract and the disclosures required by paragraph (i) of
26    subsection (e) before expressly consenting to the contract

 

 

HB2657- 3 -LRB101 08399 JRG 53469 b

1    renewal.
2    (b) An alternative retail electric supplier shall obtain
3verifiable authorization from a customer, in a form or manner
4approved by the Commission consistent with Section 2EE of the
5Consumer Fraud and Deceptive Business Practices Act, before the
6customer is switched from another supplier.
7    (c) No alternative retail electric supplier, or electric
8utility other than the electric utility in whose service area a
9customer is located, shall (i) enter into or employ any
10arrangements which have the effect of preventing a retail
11customer with a maximum electrical demand of less than one
12megawatt from having access to the services of the electric
13utility in whose service area the customer is located or (ii)
14charge retail customers for such access. This subsection shall
15not be construed to prevent an arms-length agreement between a
16supplier and a retail customer that sets a term of service,
17notice period for terminating service and provisions governing
18early termination through a tariff or contract as allowed by
19Section 16-119.
20    (d) An alternative retail electric supplier that is
21certified to serve residential or small commercial retail
22customers shall not:
23        (1) deny service to a customer or group of customers
24    nor establish any differences as to prices, terms,
25    conditions, services, products, facilities, or in any
26    other respect, whereby such denial or differences are based

 

 

HB2657- 4 -LRB101 08399 JRG 53469 b

1    upon race, gender or income, except as provided in Section
2    16-115E.
3        (2) deny service to a customer or group of customers
4    based on locality nor establish any unreasonable
5    difference as to prices, terms, conditions, services,
6    products, or facilities as between localities.
7    (e) An alternative retail electric supplier shall comply
8with the following requirements with respect to the marketing,
9offering and provision of products or services to residential
10and small commercial retail customers:
11        (i) All Any marketing materials, including electronic
12    marketing materials, in-person solicitations, and
13    telephone solicitations, which make statements concerning
14    prices, terms and conditions of service shall contain
15    information that adequately discloses the prices, terms,
16    and conditions of the products or services that the
17    alternative retail electric supplier is offering or
18    selling to the customer and the Historical Price to Compare
19    from the immediately preceding 12 months as displayed on
20    the Plug In Illinois website maintained by the Illinois
21    Commerce Commission. The disclosure may group months
22    during which the price to compare was unchanged. All
23    marketing materials, including, but not limited to,
24    electronic marketing materials, in-person solicitations,
25    and telephone solicitations, shall include the following
26    statement: "(Name of alternative retail electric supplier)

 

 

HB2657- 5 -LRB101 08399 JRG 53469 b

1    is not the same entity as your electric delivery company.
2    You are not required to enroll with (name of alternative
3    electric supplier). For information on comparison rates
4    for electric supply service and understanding your
5    electric supply choices, go to the Illinois Commerce
6    Commission's free website at www.pluginillinois.org.".
7    This paragraph does not apply to goodwill or institutional
8    advertising.
9        (ii) Before any customer is switched from another
10    supplier, the alternative retail electric supplier shall
11    give the customer written information that adequately
12    discloses, in plain language, the prices, terms and
13    conditions of the products and services being offered and
14    sold to the customer.
15        (iii) An alternative retail electric supplier shall
16    provide documentation to the Commission and to customers
17    that substantiates any claims made by the alternative
18    retail electric supplier regarding the technologies and
19    fuel types used to generate the electricity offered or sold
20    to customers.
21        (iv) The alternative retail electric supplier shall
22    provide to the customer (1) itemized billing statements
23    that describe the products and services provided to the
24    customer and their prices, and (2) an additional statement,
25    at least annually, that adequately discloses the average
26    monthly prices, and the terms and conditions, of the

 

 

HB2657- 6 -LRB101 08399 JRG 53469 b

1    products and services sold to the customer.
2    (f) An alternative retail electric supplier may limit the
3overall size or availability of a service offering by
4specifying one or more of the following: a maximum number of
5customers, maximum amount of electric load to be served, time
6period during which the offering will be available, or other
7comparable limitation, but not including the geographic
8locations of customers within the area which the alternative
9retail electric supplier is certificated to serve. The
10alternative retail electric supplier shall file the terms and
11conditions of such service offering including the applicable
12limitations with the Commission prior to making the service
13offering available to customers.
14    (g) Nothing in this Section shall be construed as
15preventing an alternative retail electric supplier, which is an
16affiliate of, or which contracts with, (i) an industry or trade
17organization or association, (ii) a membership organization or
18association that exists for a purpose other than the purchase
19of electricity, or (iii) another organization that meets
20criteria established in a rule adopted by the Commission, from
21offering through the organization or association services at
22prices, terms and conditions that are available solely to the
23members of the organization or association.
24(Source: P.A. 90-561, eff. 12-16-97.)
 
25    (220 ILCS 5/16-115E new)

 

 

HB2657- 7 -LRB101 08399 JRG 53469 b

1    Sec. 16-115E. Alternative retail electric supplier;
2utility assistance recipient.
3    (a) Beginning 90 days after the effective date of this
4amendatory Act of the 101st General Assembly, no customer who
5has received financial assistance within the preceding 12
6months from the Low Income Home Energy Assistance Program or
7the Percentage of Income Payment Plan shall be switched to an
8alternative retail electric supplier, unless (1) the customer
9is switched pursuant to a governmental aggregation program
10adopted in accordance with Section 1-92 of the Illinois Power
11Agency Act, or (2) the customer is switched to a
12Commission-approved savings guarantee plan as described in
13subsection (b).
14    (b) Beginning January 1, 2021, an alternative retail
15electric supplier may apply to the Commission to offer a
16savings guarantee plan to recipients of Low Income Home Energy
17Assistance or Percentage of Income Payment Plan funding. The
18Commission shall initiate a public, docketed proceeding to
19consider whether or not to approve an alternative retail
20electric supplier's application to offer a savings guarantee
21plan. At a minimum, the savings guarantee plan shall charge
22customers for electric supply an amount that is less than the
23amount the public utility charges for electric supply. The
24Commission shall adopt rules to implement this subsection.
25    (c) An agreement entered into between an alternative retail
26electric supplier and a customer in violation of this Section

 

 

HB2657- 8 -LRB101 08399 JRG 53469 b

1is void and unenforceable. If an alternative retail electric
2supplier attempts to enroll a customer in violation of this
3Section, the electric utility shall deny the supplier switch
4and inform the alternative retail electric supplier of the
5reason. The electric utility shall not be required to provide a
6customer with written notice of the denial of enrollment. The
7alternative retail electric supplier shall provide the
8customer with written notice of denial of enrollment.
 
9    (220 ILCS 5/16-118)
10    Sec. 16-118. Services provided by electric utilities to
11alternative retail electric suppliers.
12    (a) It is in the best interest of Illinois energy consumers
13to promote fair and open competition in the provision of
14electric power and energy and to prevent anticompetitive
15practices in the provision of electric power and energy.
16Therefore, to the extent an electric utility provides electric
17power and energy or delivery services to alternative retail
18electric suppliers and such services are not subject to the
19jurisdiction of the Federal Energy Regulatory Commission, and
20are not competitive services, they shall be provided through
21tariffs that are filed with the Commission, pursuant to Article
22IX of this Act. Each electric utility shall permit alternative
23retail electric suppliers to interconnect facilities to those
24owned by the utility provided they meet established standards
25for such interconnection, and may provide standby or other

 

 

HB2657- 9 -LRB101 08399 JRG 53469 b

1services to alternative retail electric suppliers. The
2alternative retail electric supplier shall sign a contract
3setting forth the prices, terms and conditions for
4interconnection with the electric utility and the prices, terms
5and conditions for services provided by the electric utility to
6the alternative retail electric supplier in connection with the
7delivery by the electric utility of electric power and energy
8supplied by the alternative retail electric supplier.
9    (b) An electric utility shall file a tariff pursuant to
10Article IX of the Act that would allow alternative retail
11electric suppliers or electric utilities other than the
12electric utility in whose service area retail customers are
13located to issue single bills to the retail customers for both
14the services provided by such alternative retail electric
15supplier or other electric utility and the delivery services
16provided by the electric utility to such customers. The tariff
17filed pursuant to this subsection shall (i) require partial
18payments made by retail customers to be credited first to the
19electric utility's tariffed services, (ii) impose commercially
20reasonable terms with respect to credit and collection,
21including requests for deposits, (iii) retain the electric
22utility's right to disconnect the retail customers, if it does
23not receive payment for its tariffed services, in the same
24manner that it would be permitted to if it had billed for the
25services itself, and (iv) require the alternative retail
26electric supplier or other electric utility that elects the

 

 

HB2657- 10 -LRB101 08399 JRG 53469 b

1billing option provided by this tariff to include on each bill
2to retail customers an identification of the electric utility
3providing the delivery services and a listing of the charges
4applicable to such services. The tariff filed pursuant to this
5subsection may also include other just and reasonable terms and
6conditions. In addition, an electric utility, an alternative
7retail electric supplier or electric utility other than the
8electric utility in whose service area the customer is located,
9and a customer served by such alternative retail electric
10supplier or other electric utility, may enter into an agreement
11pursuant to which the alternative retail electric supplier or
12other electric utility pays the charges specified in Section
1316-108, or other customer-related charges, including taxes and
14fees, in lieu of such charges being recovered by the electric
15utility directly from the customer.
16    (c) An electric utility with more than 100,000 customers
17shall file a tariff pursuant to Article IX of this Act that
18provides alternative retail electric suppliers, and electric
19utilities other than the electric utility in whose service area
20the retail customers are located, with the option to have the
21electric utility purchase their receivables for power and
22energy service provided to residential retail customers and
23non-residential retail customers with a non-coincident peak
24demand of less than 400 kilowatts. Receivables for power and
25energy service of alternative retail electric suppliers or
26electric utilities other than the electric utility in whose

 

 

HB2657- 11 -LRB101 08399 JRG 53469 b

1service area the retail customers are located shall be
2purchased by the electric utility at a just and reasonable
3discount rate to be reviewed and approved by the Commission
4after notice and hearing. The discount rate shall be based on
5the electric utility's historical bad debt and any reasonable
6start-up costs and administrative costs associated with the
7electric utility's purchase of receivables. The discounted
8rate for purchase of receivables shall be included in the
9tariff filed pursuant to this subsection (c). The discount rate
10filed pursuant to this subsection (c) shall be subject to
11periodic Commission review. The electric utility retains the
12right to impose the same terms on retail customers with respect
13to credit and collection, including requests for deposits, and
14retain the electric utility's right to disconnect the retail
15customers, if it does not receive payment for its tariffed
16services or purchased receivables, in the same manner that it
17would be permitted to if the retail customers purchased power
18and energy from the electric utility. The tariff filed pursuant
19to this subsection (c) shall permit the electric utility to
20recover from retail customers any uncollected receivables that
21may arise as a result of the purchase of receivables under this
22subsection (c), may also include other just and reasonable
23terms and conditions, and shall provide for the prudently
24incurred costs associated with the provision of this service
25pursuant to this subsection (c). Nothing in this subsection (c)
26permits the double recovery of bad debt expenses from

 

 

HB2657- 12 -LRB101 08399 JRG 53469 b

1customers.
2    (d) An electric utility with more than 100,000 customers
3shall file a tariff pursuant to Article IX of this Act that
4would provide alternative retail electric suppliers or
5electric utilities other than the electric utility in whose
6service area retail customers are located with the option to
7have the electric utility produce and provide single bills to
8the retail customers for both the electric power and energy
9service provided by the alternative retail electric supplier or
10other electric utility and the delivery services provided by
11the electric utility to the customers. The tariffs filed
12pursuant to this subsection shall require the electric utility
13to collect and remit customer payments for electric power and
14energy service provided by alternative retail electric
15suppliers or electric utilities other than the electric utility
16in whose service area retail customers are located. The tariff
17filed pursuant to this subsection shall require the electric
18utility to include on each bill to retail customers an
19identification of the alternative retail electric supplier or
20other electric utility that elects the billing option. The
21tariff filed pursuant to this subsection (d) may also include
22other just and reasonable terms and conditions and shall
23provide for the recovery of prudently incurred costs associated
24with the provision of service pursuant to this subsection (d).
25The costs associated with the provision of service pursuant to
26this Section shall be subject to periodic Commission review.

 

 

HB2657- 13 -LRB101 08399 JRG 53469 b

1    (e) An electric utility with more than 100,000 customers in
2this State shall file a tariff pursuant to Article IX of this
3Act that provides alternative retail electric suppliers, and
4electric utilities other than the electric utility in whose
5service area the retail customers are located, with the option
6to have the electric utility purchase 2 billing cycles worth of
7uncollectible receivables for power and energy service
8provided to residential retail customers and to
9non-residential retail customers with a non-coincident peak
10demand of less than 400 kilowatts upon returning that customer
11to that electric utility for delivery and energy service after
12that alternative retail electric supplier, or an electric
13utility other than the electric utility in whose service area
14the retail customer is located, has made reasonable collection
15efforts on that account. Uncollectible receivables for power
16and energy service of alternative retail electric suppliers, or
17electric utilities other than the electric utility in whose
18service area the retail customers are located, shall be
19purchased by the electric utility at a just and reasonable
20discount rate to be reviewed and approved by the Commission,
21after notice and hearing. The discount rate shall be based on
22the electric utility's historical bad debt for receivables that
23are outstanding for a similar length of time and any reasonable
24start-up costs and administrative costs associated with the
25electric utility's purchase of receivables. The discounted
26rate for purchase of uncollectible receivables shall be

 

 

HB2657- 14 -LRB101 08399 JRG 53469 b

1included in the tariff filed pursuant to this subsection (e).
2The electric utility retains the right to impose the same terms
3on these retail customers with respect to credit and
4collection, including requests for deposits, and retains the
5right to disconnect these retail customers, if it does not
6receive payment for its tariffed services or purchased
7receivables, in the same manner that it would be permitted to
8if the retail customers had purchased power and energy from the
9electric utility. The tariff filed pursuant to this subsection
10(e) shall permit the electric utility to recover from retail
11customers any uncollectable receivables that may arise as a
12result of the purchase of uncollectible receivables under this
13subsection (e), may also include other just and reasonable
14terms and conditions, and shall provide for the prudently
15incurred costs associated with the provision of this service
16pursuant to this subsection (e). Nothing in this subsection (e)
17permits the double recovery of utility bad debt expenses from
18customers. The electric utility may file a joint tariff for
19this subsection (e) and subsection (c) of this Section.
20    (f) Every alternative retail electric supplier or electric
21utility other than the electric utility in whose service area
22retail customers are located that issues single bills to the
23retail customers for the services provided by such alternative
24retail electric supplier or other electric utility and the
25delivery services provided by the electric utility to such
26customers shall include on the single bills issued to

 

 

HB2657- 15 -LRB101 08399 JRG 53469 b

1residential customers the current utility supply charge that
2would apply to the customer for the billing period if the
3customer obtained supply from the utility, including all fixed
4or monthly supply charges and other charges, credits, or rates
5that are part of the electric supply price. The description of
6the current utility supply charge shall be highlighted on the
7bill and also include a description in the Spanish language.
8    (g) Every electric utility that provides delivery and
9supply services shall include on each bill to residential
10customers who obtain supply from an alternative retail electric
11supplier the electric utility's total supply charge that would
12apply to the customer for the billing period if the customer
13obtained supply from the utility, including all fixed or
14monthly supply charges and other charges, credits, or rates
15that are part of the electric supply price. The description of
16the current utility supply charges shall be highlighted on the
17bill and also include a description in the Spanish language.
18(Source: P.A. 95-700, eff. 11-9-07.)
 
19    (220 ILCS 5/19-115)
20    Sec. 19-115. Obligations of alternative gas suppliers.
21    (a) The provisions of this Section shall apply only to
22alternative gas suppliers serving or seeking to serve
23residential or small commercial customers and only to the
24extent such alternative gas suppliers provide services to
25residential or small commercial customers.

 

 

HB2657- 16 -LRB101 08399 JRG 53469 b

1    (b) An alternative gas supplier shall:
2        (1) comply with the requirements imposed on public
3    utilities by Sections 8-201 through 8-207, 8-301, 8-505 and
4    8-507 of this Act, to the extent that these Sections have
5    application to the services being offered by the
6    alternative gas supplier;
7        (2) continue to comply with the requirements for
8    certification stated in Section 19-110;
9        (3) comply with complaint procedures established by
10    the Commission;
11        (4) except as provided in subsection (h) of this
12    Section, file with the Chief Clerk of the Commission,
13    within 20 business days after the effective date of this
14    amendatory Act of the 95th General Assembly, a copy of bill
15    formats, standard customer contract and customer complaint
16    and resolution procedures, and the name and telephone
17    number of the company representative whom Commission
18    employees may contact to resolve customer complaints and
19    other matters. In the case of a gas supplier that engages
20    in door-to-door solicitation, the company shall file with
21    the Commission the consumer information disclosure
22    required by item (3) of subsection (c) of Section 2DDD of
23    the Consumer Fraud and Deceptive Business Practices Act and
24    shall file updated information within 10 business days
25    after changes in any of the documents or information
26    required to be filed by this item (4); and

 

 

HB2657- 17 -LRB101 08399 JRG 53469 b

1        (5) maintain a customer call center where customers can
2    reach a representative and receive current information. At
3    least once every 6 months, each alternative gas supplier
4    shall provide written information to customers explaining
5    how to contact the call center. The average answer time for
6    calls placed to the call center shall not exceed 60 seconds
7    where a representative or automated system is ready to
8    render assistance and/or accept information to process
9    calls. The abandon rate for calls placed to the call center
10    shall not exceed 10%. Each alternative gas supplier shall
11    maintain records of the call center's telephone answer time
12    performance and abandon call rate. These records shall be
13    kept for a minimum of 2 years and shall be made available
14    to Commission personnel upon request. In the event that
15    answer times and/or abandon rates exceed the limits
16    established above, the reporting alternative gas supplier
17    may provide the Commission or its personnel with
18    explanatory details. At a minimum, these records shall
19    contain the following information in monthly increments:
20            (A) total number of calls received;
21            (B) number of calls answered;
22            (C) average answer time;
23            (D) number of abandoned calls; and
24            (E) abandon call rate.
25        (6) make publicly available on its website, without the
26    need for a customer login, rate information for all of its

 

 

HB2657- 18 -LRB101 08399 JRG 53469 b

1    variable, time-of-use, and fixed rate contracts currently
2    available to residential customers, including, but not
3    limited to, fixed monthly charges, early termination
4    charges, and kilowatt-hour charges;
5        (7) no less than 30 days, but no more than 60 days,
6    before a residential customer's price per therm or other
7    charge changes, send a separate written notice by United
8    States mail or electronic mail, as specified by the
9    residential customer, addressed to the residential
10    customer informing the residential customer of the
11    upcoming change in price or other charge; the changed price
12    per therm or other charge shall be included in the notice
13    and shall not require the residential customer to visit or
14    log on to a website to obtain the change in price or other
15    charge; the telephone number and email address to contact
16    the supplier shall be included in the notice; and
17        (8) not automatically renew a contract with a
18    residential customer at a rate higher than the initial term
19    of the contract or automatically change or renew a fixed
20    contract to a variable rate contract. A residential
21    customer may agree to a contract renewal at a rate higher
22    than the initial term of the contract if the notice
23    requirements in paragraph (7) have been met and the
24    residential customer expressly consents to the contract
25    renewal in writing or by an electronic signature. A
26    residential customer may void a variable rate contract

 

 

HB2657- 19 -LRB101 08399 JRG 53469 b

1    unless the residential customer received a disclosure
2    showing the prior 12 months under the variable rate
3    contract and the disclosures required by paragraph (1) of
4    subsection (g) before expressly consenting to the contract
5    renewal.
6    Alternative gas suppliers that do not have electronic
7answering capability that meets these requirements shall
8notify the Manager of the Commission's Consumer Services
9Division or its successor within 30 days following the
10effective date of this amendatory Act of the 95th General
11Assembly and work with Staff to develop individualized
12reporting requirements as to the call volume and responsiveness
13of the call center.
14    On or before March 1 of every year, each entity shall file
15a report with the Chief Clerk of the Commission for the
16preceding calendar year on its answer time and abandon call
17rate for its call center. A copy of the report shall be sent to
18the Manager of the Consumer Services Division or its successor.
19    (c) An alternative gas supplier shall not submit or execute
20a change in a customer's selection of a natural gas provider
21unless and until (i) the alternative gas supplier first
22discloses all material terms and conditions of the offer,
23including price, to the customer; (ii) the alternative gas
24supplier has obtained the customer's express agreement to
25accept the offer after the disclosure of all material terms and
26conditions of the offer; and (iii) the alternative gas supplier

 

 

HB2657- 20 -LRB101 08399 JRG 53469 b

1has confirmed the request for a change in accordance with one
2of the following procedures:
3        (1) The alternative gas supplier has obtained the
4    customer's written or electronically signed authorization
5    in a form that meets the following requirements:
6            (A) An alternative gas supplier shall obtain any
7        necessary written or electronically signed
8        authorization from a customer for a change in natural
9        gas service by using a letter of agency as specified in
10        this Section. Any letter of agency that does not
11        conform with this Section is invalid.
12            (B) The letter of agency shall be a separate
13        document (or an easily separable document containing
14        only the authorization language described in item (E)
15        of this paragraph (1)) whose sole purpose is to
16        authorize a natural gas provider change. The letter of
17        agency must be signed and dated by the customer
18        requesting the natural gas provider change.
19            (C) The letter of agency shall not be combined with
20        inducements of any kind on the same document.
21            (D) Notwithstanding items (A) and (B) of this
22        paragraph (1), the letter of agency may be combined
23        with checks that contain only the required letter of
24        agency language prescribed in item (E) of this
25        paragraph (1) and the necessary information to make the
26        check a negotiable instrument. The letter of agency

 

 

HB2657- 21 -LRB101 08399 JRG 53469 b

1        check shall not contain any promotional language or
2        material. The letter of agency check shall contain in
3        easily readable, bold face type on the face of the
4        check a notice that the consumer is authorizing a
5        natural gas provider change by signing the check. The
6        letter of agency language also shall be placed near the
7        signature line on the back of the check.
8            (E) At a minimum, the letter of agency must be
9        printed with a print of sufficient size to be clearly
10        legible and must contain clear and unambiguous
11        language that confirms:
12                (i) the customer's billing name and address;
13                (ii) the decision to change the natural gas
14            provider from the current provider to the
15            prospective alternative gas supplier;
16                (iii) the terms, conditions, and nature of the
17            service to be provided to the customer, including,
18            but not limited to, the rates for the service
19            contracted for by the customer; and
20                (iv) that the customer understands that any
21            natural gas provider selection the customer
22            chooses may involve a charge to the customer for
23            changing the customer's natural gas provider.
24            (F) Letters of agency shall not suggest or require
25        that a customer take some action in order to retain the
26        customer's current natural gas provider.

 

 

HB2657- 22 -LRB101 08399 JRG 53469 b

1            (G) If any portion of a letter of agency is
2        translated into another language, then all portions of
3        the letter of agency must be translated into that
4        language.
5        (2) An appropriately qualified independent third party
6    has obtained, in accordance with the procedures set forth
7    in this paragraph (2), the customer's oral authorization to
8    change natural gas providers that confirms and includes
9    appropriate verification data. The independent third party
10    must (i) not be owned, managed, controlled, or directed by
11    the alternative gas supplier or the alternative gas
12    supplier's marketing agent; (ii) not have any financial
13    incentive to confirm provider change requests for the
14    alternative gas supplier or the alternative gas supplier's
15    marketing agent; and (iii) operate in a location physically
16    separate from the alternative gas supplier or the
17    alternative gas supplier's marketing agent. Automated
18    third-party verification systems and 3-way conference
19    calls may be used for verification purposes so long as the
20    other requirements of this paragraph (2) are satisfied. An
21    alternative gas supplier or alternative gas supplier's
22    sales representative initiating a 3-way conference call or
23    a call through an automated verification system must drop
24    off the call once the 3-way connection has been
25    established. All third-party verification methods shall
26    elicit, at a minimum, the following information:

 

 

HB2657- 23 -LRB101 08399 JRG 53469 b

1            (A) the identity of the customer;
2            (B) confirmation that the person on the call is
3        authorized to make the provider change;
4            (C) confirmation that the person on the call wants
5        to make the provider change;
6            (D) the names of the providers affected by the
7        change;
8            (E) the service address of the service to be
9        switched; and
10            (F) the price of the service to be provided and the
11        material terms and conditions of the service being
12        offered, including whether any early termination fees
13        apply.
14        Third-party verifiers may not market the alternative
15    gas supplier's services by providing additional
16    information. All third-party verifications shall be
17    conducted in the same language that was used in the
18    underlying sales transaction and shall be recorded in their
19    entirety. Submitting alternative gas suppliers shall
20    maintain and preserve audio records of verification of
21    customer authorization for a minimum period of 2 years
22    after obtaining the verification. Automated systems must
23    provide customers with an option to speak with a live
24    person at any time during the call.
25        (3) The alternative gas supplier has obtained the
26    customer's authorization via an automated verification

 

 

HB2657- 24 -LRB101 08399 JRG 53469 b

1    system to change natural gas service via telephone. An
2    automated verification system is an electronic system
3    that, through pre-recorded prompts, elicits voice
4    responses, touchtone responses, or both, from the customer
5    and records both the prompts and the customer's responses.
6    Such authorization must elicit the information in
7    paragraph (2)(A) through (F) of this subsection (c).
8    Alternative gas suppliers electing to confirm sales
9    electronically through an automated verification system
10    shall establish one or more toll-free telephone numbers
11    exclusively for that purpose. Calls to the number or
12    numbers shall connect a customer to a voice response unit,
13    or similar mechanism, that makes a date-stamped,
14    time-stamped recording of the required information
15    regarding the alternative gas supplier change.
16        The alternative gas supplier shall not use such
17    electronic authorization systems to market its services.
18        (4) When a consumer initiates the call to the
19    prospective alternative gas supplier, in order to enroll
20    the consumer as a customer, the prospective alternative gas
21    supplier must, with the consent of the customer, make a
22    date-stamped, time-stamped audio recording that elicits,
23    at a minimum, the following information:
24            (A) the identity of the customer;
25            (B) confirmation that the person on the call is
26        authorized to make the provider change;

 

 

HB2657- 25 -LRB101 08399 JRG 53469 b

1            (C) confirmation that the person on the call wants
2        to make the provider change;
3            (D) the names of the providers affected by the
4        change;
5            (E) the service address of the service to be
6        switched; and
7            (F) the price of the service to be supplied and the
8        material terms and conditions of the service being
9        offered, including whether any early termination fees
10        apply.
11        Submitting alternative gas suppliers shall maintain
12    and preserve the audio records containing the information
13    set forth above for a minimum period of 2 years.
14        (5) In the event that a customer enrolls for service
15    from an alternative gas supplier via an Internet website,
16    the alternative gas supplier shall obtain an
17    electronically signed letter of agency in accordance with
18    paragraph (1) of this subsection (c) and any customer
19    information shall be protected in accordance with all
20    applicable statutes and regulations. In addition, an
21    alternative gas supplier shall provide the following when
22    marketing via an Internet website:
23            (A) The Internet enrollment website shall, at a
24        minimum, include:
25                (i) a copy of the alternative gas supplier's
26            customer contract that clearly and conspicuously

 

 

HB2657- 26 -LRB101 08399 JRG 53469 b

1            discloses all terms and conditions; and
2                (ii) a conspicuous prompt for the customer to
3            print or save a copy of the contract.
4            (B) Any electronic version of the contract shall be
5        identified by version number, in order to ensure the
6        ability to verify the particular contract to which the
7        customer assents.
8            (C) Throughout the duration of the alternative gas
9        supplier's contract with a customer, the alternative
10        gas supplier shall retain and, within 3 business days
11        of the customer's request, provide to the customer an
12        e-mail, paper, or facsimile of the terms and conditions
13        of the numbered contract version to which the customer
14        assents.
15            (D) The alternative gas supplier shall provide a
16        mechanism by which both the submission and receipt of
17        the electronic letter of agency are recorded by time
18        and date.
19            (E) After the customer completes the electronic
20        letter of agency, the alternative gas supplier shall
21        disclose conspicuously through its website that the
22        customer has been enrolled, and the alternative gas
23        supplier shall provide the customer an enrollment
24        confirmation number.
25        (6) When a customer is solicited in person by the
26    alternative gas supplier's sales agent, the alternative

 

 

HB2657- 27 -LRB101 08399 JRG 53469 b

1    gas supplier may only obtain the customer's authorization
2    to change natural gas service through the method provided
3    for in paragraph (2) of this subsection (c).
4    Alternative gas suppliers must be in compliance with this
5subsection (c) within 90 days after the effective date of this
6amendatory Act of the 95th General Assembly.
7    (d) Complaints may be filed with the Commission under this
8Section by a customer whose natural gas service has been
9provided by an alternative gas supplier in a manner not in
10compliance with subsection (c) of this Section. If, after
11notice and hearing, the Commission finds that an alternative
12gas supplier has violated subsection (c), then the Commission
13may in its discretion do any one or more of the following:
14        (1) Require the violating alternative gas supplier to
15    refund the customer charges collected in excess of those
16    that would have been charged by the customer's authorized
17    natural gas provider.
18        (2) Require the violating alternative gas supplier to
19    pay to the customer's authorized natural gas provider the
20    amount the authorized natural gas provider would have
21    collected for natural gas service. The Commission is
22    authorized to reduce this payment by any amount already
23    paid by the violating alternative gas supplier to the
24    customer's authorized natural gas provider.
25        (3) Require the violating alternative gas supplier to
26    pay a fine of up to $1,000 into the Public Utility Fund for

 

 

HB2657- 28 -LRB101 08399 JRG 53469 b

1    each repeated and intentional violation of this Section.
2        (4) Issue a cease and desist order.
3        (5) For a pattern of violation of this Section or for
4    intentionally violating a cease and desist order, revoke
5    the violating alternative gas supplier's certificate of
6    service authority.
7    (e) No alternative gas supplier shall:
8        (1) enter into or employ any arrangements which have
9    the effect of preventing any customer from having access to
10    the services of the gas utility in whose service area the
11    customer is located;
12        (2) charge customers for such access;
13        (3) bill for goods or services not authorized by the
14    customer; or
15        (4) bill for a disputed amount where the alternative
16    gas supplier has been provided notice of such dispute. The
17    supplier shall attempt to resolve a dispute with the
18    customer. When the dispute is not resolved to the
19    customer's satisfaction, the supplier shall inform the
20    customer of the right to file an informal complaint with
21    the Commission and provide contact information. While the
22    pending dispute is active at the Commission, an alternative
23    gas supplier may bill only for the undisputed amount until
24    the Commission has taken final action on the complaint.
25    (f) An alternative gas supplier that is certified to serve
26residential or small commercial customers shall not:

 

 

HB2657- 29 -LRB101 08399 JRG 53469 b

1        (1) deny service to a customer or group of customers
2    nor establish any differences as to prices, terms,
3    conditions, services, products, facilities, or in any
4    other respect, whereby such denial or differences are based
5    upon race, gender, or income except as provided in Section
6    19-116;
7        (2) deny service based on locality, nor establish any
8    unreasonable difference as to prices, terms, conditions,
9    services, products, or facilities as between localities;
10        (3) include in any agreement a provision that obligates
11    a customer to the terms of the agreement if the customer
12    (i) moves outside the State of Illinois; (ii) moves to a
13    location without a transportation service program; or
14    (iii) moves to a location where the customer will not
15    require natural gas service, provided that nothing in this
16    subsection precludes an alternative gas supplier from
17    taking any action otherwise available to it to collect a
18    debt that arises out of service provided to the customer
19    before the customer moved; or
20        (4) assign the agreement to any alternative natural gas
21    supplier, unless:
22            (A) the supplier is an alternative gas supplier
23        certified by the Commission;
24            (B) the rates, terms, and conditions of the
25        agreement being assigned do not change during the
26        remainder of the time covered by the agreement;

 

 

HB2657- 30 -LRB101 08399 JRG 53469 b

1            (C) the customer is given no less than 30 days
2        prior written notice of the assignment and contact
3        information for the new supplier; and
4            (D) the supplier assigning the contract provides
5        contact information that a customer can use to resolve
6        a dispute.
7    (g) An alternative gas supplier shall comply with the
8following requirements with respect to the marketing,
9offering, and provision of products or services:
10        (1) All Any marketing materials, including electronic
11    marketing materials, in-person solicitations, and
12    telephone solicitations, which make statements concerning
13    prices, terms, and conditions of service shall contain
14    information that adequately discloses the prices, terms
15    and conditions of the products or services and shall
16    contain the immediately preceding 12 months as displayed on
17    the Natural Gas Choice website maintained by the Illinois
18    Commerce Commission. The disclosure may group months
19    during which the price to compare was unchanged. All
20    marketing materials, including, but not limited to,
21    electronic marketing materials, in-person solicitations,
22    and telephone solicitations, shall include the following
23    statement: "(Name of alternative natural gas supplier) is
24    not the same entity as your natural gas delivery company.
25    You are not required to enroll with (name of alternative
26    gas supplier). For information on comparison rates for

 

 

HB2657- 31 -LRB101 08399 JRG 53469 b

1    natural gas supply service and understanding your natural
2    gas supply choices, go to the Illinois Commerce
3    Commission's free website at
4    www.icc.illinois.gov/ags/consuumereducation.aspx.". This
5    paragraph does not apply to goodwill or institutional
6    advertising.
7        (2) Before any customer is switched from another
8    supplier, the alternative gas supplier shall give the
9    customer written information that clearly and
10    conspicuously discloses, in plain language, the prices,
11    terms, and conditions of the products and services being
12    offered and sold to the customer. Nothing in this paragraph
13    (2) may be read to relieve an alternative gas supplier from
14    the duties imposed on it by item (3) of subsection (c) of
15    Section 2DDD of the Consumer Fraud and Deceptive Business
16    Practices Act.
17        (3) The alternative gas supplier shall provide to the
18    customer:
19            (A) accurate, timely, and itemized billing
20        statements that describe the products and services
21        provided to the customer and their prices and that
22        specify the gas consumption amount and any service
23        charges and taxes; provided that this item (g)(3)(A)
24        does not apply to small commercial customers;
25            (B) billing statements that clearly and
26        conspicuously discloses the name and contact

 

 

HB2657- 32 -LRB101 08399 JRG 53469 b

1        information for the alternative gas supplier;
2            (C) an additional statement, at least annually,
3        that adequately discloses the average monthly prices,
4        and the terms and conditions, of the products and
5        services sold to the customer; provided that this item
6        (g)(3)(C) does not apply to small commercial
7        customers;
8            (D) refunds of any deposits with interest within 30
9        days after the date that the customer changes gas
10        suppliers or discontinues service if the customer has
11        satisfied all of his or her outstanding financial
12        obligations to the alternative gas supplier at an
13        interest rate set by the Commission which shall be the
14        same as that required of gas utilities; and
15            (E) refunds, in a timely fashion, of all undisputed
16        overpayments upon the oral or written request of the
17        customer.
18        (4) An alternative gas supplier and its sales agents
19    shall refrain from any direct marketing or soliciting to
20    consumers on the gas utility's "Do Not Contact List", which
21    the alternative gas supplier shall obtain on the 15th
22    calendar day of the month from the gas utility in whose
23    service area the consumer is provided with gas service. If
24    the 15th calendar day is a non-business day, then the
25    alternative gas supplier shall obtain the list on the next
26    business day following the 15th calendar day of that month.

 

 

HB2657- 33 -LRB101 08399 JRG 53469 b

1        (5) Early Termination.
2            (A) Any agreement that contains an early
3        termination clause shall disclose the amount of the
4        early termination fee, provided that any early
5        termination fee or penalty shall not exceed $50 total,
6        regardless of whether or not the agreement is a
7        multiyear agreement.
8            (B) In any agreement that contains an early
9        termination clause, an alternative gas supplier shall
10        provide the customer the opportunity to terminate the
11        agreement without any termination fee or penalty
12        within 10 business days after the date of the first
13        bill issued to the customer for products or services
14        provided by the alternative gas supplier. The
15        agreement shall disclose the opportunity and provide a
16        toll-free phone number that the customer may call in
17        order to terminate the agreement.
18        (6) Within 2 business days after electronic receipt of
19    a customer switch from the alternative gas supplier and
20    confirmation of eligibility, the gas utility shall provide
21    the customer written notice confirming the switch. The gas
22    utility shall not switch the service until 10 business days
23    after the date on the notice to the customer.
24        (7) The alternative gas supplier shall provide each
25    customer the opportunity to rescind its agreement without
26    penalty within 10 business days after the date on the gas

 

 

HB2657- 34 -LRB101 08399 JRG 53469 b

1    utility notice to the customer. The alternative gas
2    supplier shall disclose all of the following:
3            (A) that the gas utility shall send a notice
4        confirming the switch;
5            (B) that from the date the utility issues the
6        notice confirming the switch, the customer shall have
7        10 business days to rescind the switch without penalty;
8            (C) that the customer shall contact the gas utility
9        or the alternative gas supplier to rescind the switch;
10        and
11            (D) the contact information for the gas utility.
12        The alternative gas supplier disclosure shall be
13    included in its sales solicitations, contracts, and all
14    applicable sales verification scripts.
15    (h) An alternative gas supplier may limit the overall size
16or availability of a service offering by specifying one or more
17of the following:
18        (1) a maximum number of customers and maximum amount of
19    gas load to be served;
20        (2) time period during which the offering will be
21    available; or
22        (3) other comparable limitation, but not including the
23    geographic locations of customers within the area which the
24    alternative gas supplier is certificated to serve.
25    The alternative gas supplier shall file the terms and
26conditions of such service offering including the applicable

 

 

HB2657- 35 -LRB101 08399 JRG 53469 b

1limitations with the Commission prior to making the service
2offering available to customers.
3    (i) Nothing in this Section shall be construed as
4preventing an alternative gas supplier that is an affiliate of,
5or which contracts with, (i) an industry or trade organization
6or association, (ii) a membership organization or association
7that exists for a purpose other than the purchase of gas, or
8(iii) another organization that meets criteria established in a
9rule adopted by the Commission from offering through the
10organization or association services at prices, terms and
11conditions that are available solely to the members of the
12organization or association.
13(Source: P.A. 95-1051, eff. 4-10-09.)
 
14    (220 ILCS 5/19-116 new)
15    Sec. 19-116. Alternative gas supplier; utility assistance
16recipient.
17    (a) Beginning 90 days after the effective date of this
18amendatory Act of the 101st General Assembly, no customer who
19has received financial assistance within the preceding 12
20months from the Low Income Home Energy Assistance Program or
21Percentage of Income Payment Plan shall be switched to an
22alternative gas supplier unless customer is switched to a
23Commission-approved savings guarantee plan as described in
24subsection (b).
25    (b) Beginning January 1, 2021, an alternative gas supplier

 

 

HB2657- 36 -LRB101 08399 JRG 53469 b

1may apply to the Commission to offer a savings guarantee plan
2to recipients of Low Income Home Energy Assistance Program or
3Percentage of Income Payment Plan funding. The Commission shall
4initiate a public, docketed proceeding to consider whether or
5not to approve an alternative natural gas supplier's
6application to offer a savings guarantee plan. At a minimum,
7the savings guarantee plan shall charge a customer for natural
8gas supply in an amount that is less than the amount the public
9utility charges for natural gas supply. The Commission shall
10adopt rules to implement this subsection.
11    (c) An agreement entered into between an alternative gas
12supplier and a customer in violation of this Section is void
13and unenforceable. If an alternative gas supplier attempts to
14enroll a customer in violation of this Section, the gas utility
15shall deny the supplier switch and inform the alternative gas
16supplier of the reason. The gas utility shall not be required
17to provide a customer with written notice of the denial of
18enrollment. The alternative gas supplier shall provide the
19customer with written notice of denial of enrollment.
 
20    (220 ILCS 5/19-135)
21    Sec. 19-135. Single billing.
22    (a) It is the intent of the General Assembly that in any
23service area where customers are able to choose their natural
24gas supplier, a single billing option shall be offered to
25customers for both the services provided by the alternative gas

 

 

HB2657- 37 -LRB101 08399 JRG 53469 b

1supplier and the delivery services provided by the gas utility.
2A gas utility shall file a tariff pursuant to Article IX of
3this Act that allows alternative gas suppliers to issue single
4bills to residential and small commercial customers for both
5the services provided by the alternative gas supplier and the
6delivery services provided by the gas utility to customers;
7provided that if a form of single billing is being offered in a
8gas utility's service area on the effective date of this
9amendatory Act of the 92nd General Assembly, that form of
10single billing shall remain in effect unless and until
11otherwise ordered by the Commission. Every alternative gas
12supplier that issues a single bill for delivery and supply
13shall include on the single bill issued to a residential
14customer the current utility supply charge that would apply to
15the customer for the billing period if the customer obtained
16supply from the utility, including all fixed or monthly supply
17charges and other charges, credits, or rates that are part of
18the gas supply price. The description of the current utility
19supply charge shall be highlighted on the bill and also include
20a description in the Spanish language.
21    (b) Every gas utility that offers supply choice and
22provides delivery and alternative gas supply service on a
23single bill to its residential customers shall include on the
24bill of each residential customer who purchases supply services
25from an alternative gas supplier the gas utility's total supply
26charge for the billing period that would apply to the customer

 

 

HB2657- 38 -LRB101 08399 JRG 53469 b

1for the billing period if the customer obtained supply from the
2utility, including all fixed or monthly supply charges and
3other charges, credits, or rates that are part of the gas
4supply price. The description of the current utility supply
5charge shall be highlighted on the bill and also include a
6description in the Spanish language.
7(Source: P.A. 92-852, eff. 8-26-02.)
 
8    Section 10. The Consumer Fraud and Deceptive Business
9Practices Act is amended by changing Sections 2EE and 2DDD as
10follows:
 
11    (815 ILCS 505/2EE)
12    Sec. 2EE. Electric service provider selection. An electric
13service provider shall not submit or execute a change in a
14subscriber's selection of a provider of electric service unless
15and until (i) the provider first discloses all material terms
16and conditions of the offer to the subscriber; (ii) the
17provider has obtained the subscriber's express agreement to
18accept the offer after the disclosure of all material terms and
19conditions of the offer; and (iii) the provider has confirmed
20the request for a change in accordance with one of the
21following procedures:
22    (a) The new electric service provider has obtained the
23subscriber's written or electronically signed authorization in
24a form that meets the following requirements:

 

 

HB2657- 39 -LRB101 08399 JRG 53469 b

1        (1) An electric service provider shall obtain any
2    necessary written or electronically signed authorization
3    from a subscriber for a change in electric service by using
4    a letter of agency as specified in this Section. Any letter
5    of agency that does not conform with this Section is
6    invalid.
7        (2) The letter of agency shall be a separate document
8    (an easily separable document containing only the
9    authorization language described in subparagraph (a)(5) of
10    this Section) whose sole purpose is to authorize an
11    electric service provider change. The letter of agency must
12    be signed and dated by the subscriber requesting the
13    electric service provider change.
14        (3) The letter of agency shall not be combined with
15    inducements of any kind on the same document.
16        (4) Notwithstanding subparagraphs (a)(1) and (a)(2) of
17    this Section, the letter of agency may be combined with
18    checks that contain only the required letter of agency
19    language prescribed in subparagraph (a)(5) of this Section
20    and the necessary information to make the check a
21    negotiable instrument. The letter of agency check shall not
22    contain any promotional language or material. The letter of
23    agency check shall contain in easily readable, bold-face
24    type on the face of the check, a notice that the consumer
25    is authorizing an electric service provider change by
26    signing the check. The letter of agency language also shall

 

 

HB2657- 40 -LRB101 08399 JRG 53469 b

1    be placed near the signature line on the back of the check.
2        (5) At a minimum, the letter of agency must be printed
3    with a print of sufficient size to be clearly legible, and
4    must contain clear and unambiguous language that confirms:
5            (i) The subscriber's billing name and address;
6            (ii) The decision to change the electric service
7        provider from the current provider to the prospective
8        provider;
9            (iii) The terms, conditions, and nature of the
10        service to be provided to the subscriber must be
11        clearly and conspicuously disclosed, in writing, and
12        an electric service provider must directly establish
13        the rates for the service contracted for by the
14        subscriber; and
15            (iv) That the subscriber understand that any
16        electric service provider selection the subscriber
17        chooses may involve a charge to the subscriber for
18        changing the subscriber's electric service provider.
19        (6) Letters of agency shall not suggest or require that
20    a subscriber take some action in order to retain the
21    subscriber's current electric service 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    (b) An appropriately qualified independent third party has
26obtained, in accordance with the procedures set forth in this

 

 

HB2657- 41 -LRB101 08399 JRG 53469 b

1subsection (b), the subscriber's oral authorization to change
2electric suppliers that confirms and includes appropriate
3verification data. The independent third party (i) must not be
4owned, managed, controlled, or directed by the supplier or the
5supplier's marketing agent; (ii) must not have any financial
6incentive to confirm supplier change requests for the supplier
7or the supplier's marketing agent; and (iii) must operate in a
8location physically separate from the supplier or the
9supplier's marketing agent.
10    Automated third-party verification systems and 3-way
11conference calls may be used for verification purposes so long
12as the other requirements of this subsection (b) are satisfied.
13    A supplier or supplier's sales representative initiating a
143-way conference call or a call through an automated
15verification system must drop off the call once the 3-way
16connection has been established.
17    All third-party verification methods shall elicit, at a
18minimum, the following information: (i) the identity of the
19subscriber; (ii) confirmation that the person on the call is
20authorized to make the supplier change; (iii) confirmation that
21the person on the call wants to make the supplier change; (iv)
22the names of the suppliers affected by the change; (v) the
23service address of the supply to be switched; and (vi) the
24price of the service to be supplied and the material terms and
25conditions of the service being offered, including whether any
26early termination fees apply. Third-party verifiers may not

 

 

HB2657- 42 -LRB101 08399 JRG 53469 b

1market the supplier's services by providing additional
2information, including information regarding procedures to
3block or otherwise freeze an account against further changes.
4    All third-party verifications shall be conducted in the
5same language that was used in the underlying sales transaction
6and shall be recorded in their entirety. Submitting suppliers
7shall maintain and preserve audio records of verification of
8subscriber authorization for a minimum period of 2 years after
9obtaining the verification. Automated systems must provide
10consumers with an option to speak with a live person at any
11time during the call.
12    (c) When a subscriber initiates the call to the prospective
13electric supplier, in order to enroll the subscriber as a
14customer, the prospective electric supplier must, with the
15consent of the customer, make a date-stamped, time-stamped
16audio recording that elicits, at a minimum, the following
17information:
18        (1) the identity of the subscriber;
19        (2) confirmation that the person on the call is
20    authorized to make the supplier change;
21        (3) confirmation that the person on the call wants to
22    make the supplier change;
23        (4) the names of the suppliers affected by the change;
24        (5) the service address of the supply to be switched;
25    and
26        (6) the price of the service to be supplied and the

 

 

HB2657- 43 -LRB101 08399 JRG 53469 b

1    material terms and conditions of the service being offered,
2    including whether any early termination fees apply.
3    Submitting suppliers shall maintain and preserve the audio
4records containing the information set forth above for a
5minimum period of 2 years.
6    (c-5) An electric supplier shall not automatically renew a
7contract with a residential customer at a rate higher than the
8initial term of the contract or automatically change or renew a
9fixed rate contract to a variable rate contract. A residential
10customer may agree to a contract renewal at a rate higher than
11the initial term of the contract if the requirements in
12paragraphs (iv) and (v) of subsection (a) of Section 16-115A of
13the Public Utilities Act have been met and the residential
14customer expressly consents to the contract renewal in writing
15or by an electronic signature. A residential customer may void
16a contract renewal or a variable rate contract if the
17requirements in paragraphs (iv) and (v) of subsection (a) of
18Section 16-115A of the Public Utilities Act have not been met.
19    (d) Complaints may be filed with the Illinois Commerce
20Commission under this Section by a subscriber whose electric
21service has been provided by an electric service supplier in a
22manner not in compliance with this Section. If, after notice
23and hearing, the Commission finds that an electric service
24provider has violated this Section, the Commission may in its
25discretion do any one or more of the following:
26        (1) Require the violating electric service provider to

 

 

HB2657- 44 -LRB101 08399 JRG 53469 b

1    refund to the subscriber charges collected in excess of
2    those that would have been charged by the subscriber's
3    authorized electric service provider.
4        (2) Require the violating electric service provider to
5    pay to the subscriber's authorized electric supplier the
6    amount the authorized electric supplier would have
7    collected for the electric service. The Commission is
8    authorized to reduce this payment by any amount already
9    paid by the violating electric supplier to the subscriber's
10    authorized provider for electric service.
11        (3) Require the violating electric subscriber to pay a
12    fine of up to $1,000 into the Public Utility Fund for each
13    repeated and intentional violation of this Section.
14        (4) Issue a cease and desist order.
15        (5) For a pattern of violation of this Section or for
16    intentionally violating a cease and desist order, revoke
17    the violating provider's certificate of service authority.
18    (e) For purposes of this Section, "electric service
19provider" shall have the meaning given that phrase in Section
206.5 of the Attorney General Act.
21(Source: P.A. 95-700, eff. 11-9-07.)
 
22    (815 ILCS 505/2DDD)
23    Sec. 2DDD. Alternative gas suppliers.
24    (a) Definitions.
25        (1) "Alternative gas supplier" has the same meaning as

 

 

HB2657- 45 -LRB101 08399 JRG 53469 b

1    in Section 19-105 of the Public Utilities Act.
2        (2) "Gas utility" has the same meaning as in Section
3    19-105 of the Public Utilities Act.
4    (b) It is an unfair or deceptive act or practice within the
5meaning of Section 2 of this Act for any person to violate any
6provision of this Section.
7    (c) Solicitation.
8        (1) An alternative gas supplier shall not misrepresent
9    the affiliation of any alternative supplier with the gas
10    utility, governmental bodies, or consumer groups.
11        (2) If any sales solicitation, agreement, contract, or
12    verification is translated into another language and
13    provided to a customer, all of the documents must be
14    provided to the customer in that other language.
15        (3) An alternative gas supplier shall clearly and
16    conspicuously disclose the following information to all
17    customers:
18            (A) the prices, terms, and conditions of the
19        products and services being sold to the customer;
20            (B) where the solicitation occurs in person,
21        including through door-to-door solicitation, the
22        salesperson's name;
23            (C) the alternative gas supplier's contact
24        information, including the address, phone number, and
25        website;
26            (D) contact information for the Illinois Commerce

 

 

HB2657- 46 -LRB101 08399 JRG 53469 b

1        Commission, including the toll-free number for
2        consumer complaints and website;
3            (E) a statement of the customer's right to rescind
4        the offer within 10 business days of the date on the
5        utility's notice confirming the customer's decision to
6        switch suppliers, as well as phone numbers for the
7        supplier and utility that the consumer may use to
8        rescind the contract; and
9            (F) the amount of the early termination fee, if
10        any.
11        (4) Except as provided in paragraph (5) of this
12    subsection (c), an alternative gas supplier shall send the
13    information described in paragraph (3) of this subsection
14    (c) to all customers within one business day of the
15    authorization of a switch.
16        (5) An alternative gas supplier engaging in
17    door-to-door solicitation of consumers shall provide the
18    information described in paragraph (3) of this subsection
19    (c) during all door-to-door solicitations that result in a
20    customer deciding to switch their supplier.
21    (d) Customer Authorization. An alternative gas supplier
22shall not submit or execute a change in a customer's selection
23of a natural gas provider unless and until (i) the alternative
24gas supplier first discloses all material terms and conditions
25of the offer to the customer; (ii) the alternative gas supplier
26has obtained the customer's express agreement to accept the

 

 

HB2657- 47 -LRB101 08399 JRG 53469 b

1offer after the disclosure of all material terms and conditions
2of the offer; and (iii) the alternative gas supplier has
3confirmed the request for a change in accordance with one of
4the following procedures:
5        (1) The alternative gas supplier has obtained the
6    customer's written or electronically signed authorization
7    in a form that meets the following requirements:
8            (A) An alternative gas supplier shall obtain any
9        necessary written or electronically signed
10        authorization from a customer for a change in natural
11        gas service by using a letter of agency as specified in
12        this Section. Any letter of agency that does not
13        conform with this Section is invalid.
14            (B) The letter of agency shall be a separate
15        document (or an easily separable document containing
16        only the authorization language described in item (E)
17        of this paragraph (1)) whose sole purpose is to
18        authorize a natural gas provider change. The letter of
19        agency must be signed and dated by the customer
20        requesting the natural gas provider change.
21            (C) The letter of agency shall not be combined with
22        inducements of any kind on the same document.
23            (D) Notwithstanding items (A) and (B) of this
24        paragraph (1), the letter of agency may be combined
25        with checks that contain only the required letter of
26        agency language prescribed in item (E) of this

 

 

HB2657- 48 -LRB101 08399 JRG 53469 b

1        paragraph (1) and the necessary information to make the
2        check a negotiable instrument. The letter of agency
3        check shall not contain any promotional language or
4        material. The letter of agency check shall contain in
5        easily readable, bold face type on the face of the
6        check, a notice that the consumer is authorizing a
7        natural gas provider change by signing the check. The
8        letter of agency language also shall be placed near the
9        signature line on the back of the check.
10            (E) At a minimum, the letter of agency must be
11        printed with a print of sufficient size to be clearly
12        legible, and must contain clear and unambiguous
13        language that confirms:
14                (i) the customer's billing name and address;
15                (ii) the decision to change the natural gas
16            provider from the current provider to the
17            prospective alternative gas supplier;
18                (iii) the terms, conditions, and nature of the
19            service to be provided to the customer, including,
20            but not limited to, the rates for the service
21            contracted for by the customer; and
22                (iv) that the customer understands that any
23            natural gas provider selection the customer
24            chooses may involve a charge to the customer for
25            changing the customer's natural gas provider.
26            (F) Letters of agency shall not suggest or require

 

 

HB2657- 49 -LRB101 08399 JRG 53469 b

1        that a customer take some action in order to retain the
2        customer's current natural gas provider.
3            (G) If any portion of a letter of agency is
4        translated into another language, then all portions of
5        the letter of agency must be translated into that
6        language.
7        (2) An appropriately qualified independent third party
8    has obtained, in accordance with the procedures set forth
9    in this paragraph (2), the customer's oral authorization to
10    change natural gas providers that confirms and includes
11    appropriate verification data. The independent third party
12    must (i) not be owned, managed, controlled, or directed by
13    the alternative gas supplier or the alternative gas
14    supplier's marketing agent; (ii) not have any financial
15    incentive to confirm provider change requests for the
16    alternative gas supplier or the alternative gas supplier's
17    marketing agent; and (iii) operate in a location physically
18    separate from the alternative gas supplier or the
19    alternative gas supplier's marketing agent. Automated
20    third-party verification systems and 3-way conference
21    calls may be used for verification purposes so long as the
22    other requirements of this paragraph (2) are satisfied. A
23    alternative gas supplier or alternative gas supplier's
24    sales representative initiating a 3-way conference call or
25    a call through an automated verification system must drop
26    off the call once the 3-way connection has been

 

 

HB2657- 50 -LRB101 08399 JRG 53469 b

1    established. All third-party verification methods shall
2    elicit, at a minimum, the following information:
3            (A) the identity of the customer;
4            (B) confirmation that the person on the call is
5        authorized to make the provider change;
6            (C) confirmation that the person on the call wants
7        to make the provider change;
8            (D) the names of the providers affected by the
9        change;
10            (E) the service address of the service to be
11        switched; and
12            (F) the price of the service to be provided and the
13        material terms and conditions of the service being
14        offered, including whether any early termination fees
15        apply.
16        Third-party verifiers may not market the alternative
17    gas supplier's services. All third-party verifications
18    shall be conducted in the same language that was used in
19    the underlying sales transaction and shall be recorded in
20    their entirety. Submitting alternative gas suppliers shall
21    maintain and preserve audio records of verification of
22    customer authorization for a minimum period of 2 years
23    after obtaining the verification. Automated systems must
24    provide customers with an option to speak with a live
25    person at any time during the call.
26        (3) The alternative gas supplier has obtained the

 

 

HB2657- 51 -LRB101 08399 JRG 53469 b

1    customer's electronic authorization to change natural gas
2    service via telephone. Such authorization must elicit the
3    information in paragraph (2)(A) through (F) of this
4    subsection (d). Alternative gas suppliers electing to
5    confirm sales electronically shall establish one or more
6    toll-free telephone numbers exclusively for that purpose.
7    Calls to the number or numbers shall connect a customer to
8    a voice response unit, or similar mechanism, that makes a
9    date-stamped, time-stamped recording of the required
10    information regarding the alternative gas supplier change.
11        The alternative gas supplier shall not use such
12    electronic authorization systems to market its services.
13        (4) When a consumer initiates the call to the
14    prospective alternative gas supplier, in order to enroll
15    the consumer as a customer, the prospective alternative gas
16    supplier must, with the consent of the customer, make a
17    date-stamped, time-stamped audio recording that elicits,
18    at a minimum, the following information:
19            (A) the identity of the customer;
20            (B) confirmation that the person on the call is
21        authorized to make the provider change;
22            (C) confirmation that the person on the call wants
23        to make the provider change;
24            (D) the names of the providers affected by the
25        change;
26            (E) the service address of the service to be

 

 

HB2657- 52 -LRB101 08399 JRG 53469 b

1        switched; and
2            (F) the price of the service to be supplied and the
3        material terms and conditions of the service being
4        offered, including whether any early termination fees
5        apply.
6        Submitting alternative gas suppliers shall maintain
7    and preserve the audio records containing the information
8    set forth above for a minimum period of 2 years.
9        (5) In the event that a customer enrolls for service
10    from an alternative gas supplier via an Internet website,
11    the alternative gas supplier shall obtain an
12    electronically signed letter of agency in accordance with
13    paragraph (1) of this subsection (d) and any customer
14    information shall be protected in accordance with all
15    applicable statutes and rules. In addition, an alternative
16    gas supplier shall provide the following when marketing via
17    an Internet website:
18            (A) The Internet enrollment website shall, at a
19        minimum, include:
20                (i) a copy of the alternative gas supplier's
21            customer contract, which clearly and conspicuously
22            discloses all terms and conditions; and
23                (ii) a conspicuous prompt for the customer to
24            print or save a copy of the contract.
25            (B) Any electronic version of the contract shall be
26        identified by version number, in order to ensure the

 

 

HB2657- 53 -LRB101 08399 JRG 53469 b

1        ability to verify the particular contract to which the
2        customer assents.
3            (C) Throughout the duration of the alternative gas
4        supplier's contract with a customer, the alternative
5        gas supplier shall retain and, within 3 business days
6        of the customer's request, provide to the customer an
7        e-mail, paper, or facsimile of the terms and conditions
8        of the numbered contract version to which the customer
9        assents.
10            (D) The alternative gas supplier shall provide a
11        mechanism by which both the submission and receipt of
12        the electronic letter of agency are recorded by time
13        and date.
14            (E) After the customer completes the electronic
15        letter of agency, the alternative gas supplier shall
16        disclose conspicuously through its website that the
17        customer has been enrolled and the alternative gas
18        supplier shall provide the customer an enrollment
19        confirmation number.
20        (6) When a customer is solicited in person by the
21    alternative gas supplier's sales agent, the alternative
22    gas supplier may only obtain the customer's authorization
23    to change natural gas service through the method provided
24    for in paragraph (2) of this subsection (d).
25    Alternative gas suppliers must be in compliance with the
26provisions of this subsection (d) within 90 days after the

 

 

HB2657- 54 -LRB101 08399 JRG 53469 b

1effective date of this amendatory Act of the 95th General
2Assembly.
3    (d-5) A gas supplier shall not automatically renew a
4contract with a residential customer at a rate higher than the
5initial term of the contract or automatically change or renew a
6fixed rate contract to a variable rate contract. A residential
7customer may agree to a contract renewal at a higher rate than
8the initial term of the contract if the requirements in
9paragraphs (7) and (8) of subsection (b) of Section 19-115 of
10the Public Utilities Act have been met and the residential
11customer expressly consents to the contract renewal in writing
12or by an electronic signature. A residential customer may void
13a contract renewal or a variable rate contract if the
14requirements in paragraphs (7) and (8) of subsection (b) of
15Section 19-115 of the Public Utilities Act have not been met.
16    (e) Early Termination.
17        (1) Any agreement that contains an early termination
18    clause shall disclose the amount of the early termination
19    fee, provided that any early termination fee or penalty
20    shall not exceed $50 total, regardless of whether or not
21    the agreement is a multiyear agreement.
22        (2) In any agreement that contains an early termination
23    clause, an alternative gas supplier shall provide the
24    customer the opportunity to terminate the agreement
25    without any termination fee or penalty within 10 business
26    days after the date of the first bill issued to the

 

 

HB2657- 55 -LRB101 08399 JRG 53469 b

1    customer for products or services provided by the
2    alternative gas supplier. The agreement shall disclose the
3    opportunity and provide a toll-free phone number that the
4    customer may call in order to terminate the agreement.
5    (f) The alternative gas supplier shall provide each
6customer the opportunity to rescind its agreement without
7penalty within 10 business days after the date on the gas
8utility notice to the customer. The alternative gas supplier
9shall disclose to the customer all of the following:
10        (1) that the gas utility shall send a notice confirming
11    the switch;
12        (2) that from the date the utility issues the notice
13    confirming the switch, the customer shall have 10 business
14    days before the switch will become effective;
15        (3) that the customer may contact the gas utility or
16    the alternative gas supplier to rescind the switch within
17    10 business days; and
18        (4) the contact information for the gas utility and the
19    alternative gas supplier.
20    The alternative gas supplier disclosure shall be included
21in its sales solicitations, contracts, and all applicable sales
22verification scripts.
23    (g) The provisions of this Section shall apply only to
24alternative gas suppliers serving or seeking to serve
25residential and small commercial customers and only to the
26extent such alternative gas suppliers provide services to

 

 

HB2657- 56 -LRB101 08399 JRG 53469 b

1residential and small commercial customers.
2(Source: P.A. 97-333, eff. 8-12-11.)