SB0171 Enrolled LRB095 06643 MJR 26749 b

1     AN ACT concerning regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Public Utilities Act is amended by changing
5 Sections 19-105, 19-110, 19-115, 19-120, and 19-125 and by
6 adding Sections 19-111 and 19-112 as follows:
 
7     (220 ILCS 5/19-105)
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.
11     "Alternative gas supplier" means every person,
12 cooperative, corporation, municipal corporation, company,
13 association, joint stock company or association, firm,
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
17 received to one or more customers, or that engages in the
18 furnishing of gas to one or more customers, and shall include
19 affiliated interests of a gas utility, resellers, aggregators
20 and marketers, but shall not include (i) gas utilities (or any
21 agent of the gas utility to the extent the gas utility provides
22 tariffed services to customers through an agent); (ii) public
23 utilities that are owned and operated by any political

 

 

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1 subdivision, public institution of higher education or
2 municipal corporation of this State, or public utilities that
3 are owned by a political subdivision, public institution of
4 higher education, or municipal corporation and operated by any
5 of its lessees or operating agents; (iii) natural gas
6 cooperatives that are not-for-profit corporations operated for
7 the purpose of administering, on a cooperative basis, the
8 furnishing of natural gas for the benefit of their members who
9 are consumers of natural gas; and (iv) the ownership or
10 operation of a facility that sells compressed natural gas at
11 retail to the public for use only as a motor vehicle fuel and
12 the selling of compressed natural gas at retail to the public
13 for use only as a motor vehicle fuel.
14     "Gas utility" means a public utility, as defined in Section
15 3-105 of this Act, that has a franchise, license, permit, or
16 right to furnish or sell gas or transportation services to
17 customers within a service area.
18     "Residential customer" means a customer who receives gas
19 utility service for household purposes distributed to a
20 dwelling of 2 or fewer units which is billed under a
21 residential rate or gas utility service for household purposes
22 distributed to a dwelling unit or units which is billed under a
23 residential rate and is registered by a separate meter for each
24 dwelling unit.
25     "Sales agent" means any employee, agent, independent
26 contractor, consultant, or other person that is engaged by the

 

 

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1 alternative gas supplier to solicit customers to purchase,
2 enroll in, or contract for alternative gas service on behalf of
3 an alternative gas supplier.
4     "Service area" means (i) the geographic area within which a
5 gas utility was lawfully entitled to provide gas to customers
6 as of the effective date of this amendatory Act of the 92nd
7 General Assembly and includes (ii) the location of any customer
8 to which the gas utility was lawfully providing gas utility
9 services on such effective date.
10     "Small commercial customer" means a nonresidential retail
11 customer of a natural gas utility who consumed is identified by
12 the alternative gas supplier, prior to becoming a customer of
13 the alternative gas supplier, as consuming 5,000 or fewer
14 therms of natural gas during the previous year; provided that
15 any alternative gas supplier may remove the customer from
16 designation as a "small commercial customer" if the customer
17 consumes more than 5,000 therms of natural gas in any calendar
18 year after becoming a customer of the alternative gas supplier.
19 In determining whether a customer has consumed 5,000 or fewer
20 therms of natural gas during the previous year, usage by the
21 same commercial customer shall be aggregated to include usage
22 at the same premises even if measured by more than one meter,
23 and to include usage at multiple premises. Nothing in this
24 Section creates an affirmative obligation on a gas utility to
25 monitor or inform customers or alternative gas suppliers as to
26 a customer's status as a small commercial customer as that term

 

 

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1 is defined herein. Nothing in this Section relieves a gas
2 utility from any obligation to provide information upon request
3 to a customer, alternative gas supplier, the Commission, or
4 others necessary to determine whether a customer meets the
5 classification of small commercial customers as that term is
6 defined herein.
7     "Tariffed service" means a service provided to customers by
8 a gas utility as defined by its rates on file with the
9 Commission pursuant to the provisions of Article IX of this
10 Act.
11     "Transportation services" means those services provided by
12 the gas utility that are necessary in order for the storage,
13 transmission and distribution systems to function so that
14 customers located in the gas utility's service area can receive
15 gas from suppliers other than the gas utility and shall
16 include, without limitation, standard metering and billing
17 services.
18 (Source: P.A. 94-738, eff. 5-4-06.)
 
19     (220 ILCS 5/19-110)
20     Sec. 19-110. Certification of alternative gas suppliers.
21     (a) The provisions of this Section shall apply only to
22 alternative gas suppliers serving or seeking to serve
23 residential or small commercial customers and only to the
24 extent such alternative gas suppliers provide services to
25 residential or small commercial customers.

 

 

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1     (b) An alternative gas supplier must obtain a certificate
2 of service authority from the Commission in accordance with
3 this Section before serving any customer or other user located
4 in this State. An alternative gas supplier may request, and the
5 Commission may grant, a certificate of service authority for
6 the entire State or for a specified geographic area of the
7 State. A person, corporation, or other entity acting as an
8 alternative gas supplier on the effective date of this
9 amendatory Act of the 92nd General Assembly shall have 180 days
10 from the effective date of this amendatory Act of the 92nd
11 General Assembly to comply with the requirements of this
12 Section in order to continue to operate as an alternative gas
13 supplier.
14     (c) An alternative gas supplier seeking a certificate of
15 service authority shall file with the Commission a verified
16 application containing information showing that the applicant
17 meets the requirements of this Section. The alternative gas
18 supplier shall publish notice of its application in the
19 official State newspaper within 10 days following the date of
20 its filing. No later than 45 days after the application is
21 properly filed with the Commission, and such notice is
22 published, the Commission shall issue its order granting or
23 denying the application.
24     (d) An application for a certificate of service authority
25 shall identify the area or areas in which the applicant intends
26 to offer service and the types of services it intends to offer.

 

 

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1 Applicants that seek to serve residential or small commercial
2 customers within a geographic area that is smaller than a gas
3 utility's service area shall submit evidence demonstrating
4 that the designation of this smaller area does not violate
5 Section 19-115. An applicant may state in its application for
6 certification any limitations that will be imposed on the
7 number of customers or maximum load to be served. The applicant
8 shall submit as part of its application a statement indicating:
9         (1) Whether the applicant has been denied a natural gas
10     supplier license in any state in the United States.
11         (2) Whether the applicant has had a natural gas
12     supplier license suspended or revoked by any state in the
13     United States.
14         (3) Where, if any, other natural gas supplier license
15     applications are pending in the United States.
16         (4) Whether the applicant is the subject of any
17     lawsuits filed in a court of law or formal complaints filed
18     with a regulatory agency alleging fraud, deception or
19     unfair marketing practices, or other similar allegations,
20     identifying the name, case number, and jurisdiction of each
21     such lawsuit or complaint.
22     For the purposes of this subsection (d), formal complaints
23 include only those complaints that seek a binding determination
24 from a state or federal regulatory body.
25     (e) The Commission shall grant the application for a
26 certificate of service authority if it makes the findings set

 

 

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1 forth in this subsection based on the verified application and
2 such other information as the applicant may submit.
3         (1) That the applicant possesses possess sufficient
4     technical, financial, and managerial resources and
5     abilities to provide the service for which it seeks a
6     certificate of service authority. In determining the level
7     of technical, financial, and managerial resources and
8     abilities which the applicant must demonstrate, the
9     Commission shall consider:
10             (A) the characteristics, including the size and
11         financial sophistication of the customers that the
12         applicant seeks to serve; , and shall consider
13             (B) whether the applicant seeks to provide gas
14         using property, plant, and equipment that it owns,
15         controls, or operates; and
16             (C) the applicant's commitment of resources to the
17         management of sales and marketing staff, through
18         affirmative managerial policies, independent audits,
19         technology, hands-on field monitoring and training,
20         and, in the case of applicants who will have sales
21         personnel or sales agents within the State of Illinois,
22         the applicant's managerial presence within the State.
23         (2) That the applicant will comply with all applicable
24     federal, State, regional, and industry rules, policies,
25     practices, and procedures for the use, operation, and
26     maintenance of the safety, integrity, and reliability of

 

 

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1     the gas transmission system.
2         (3) That the applicant will comply with such
3     informational or reporting requirements as the Commission
4     may by rule establish.
5         (4) That the area to be served by the applicant and any
6     limitations it proposes on the number of customers or
7     maximum amount of load to be served meet the provisions of
8     Section 19-115, provided, that if the applicant seeks to
9     serve an area smaller than the service area of a gas
10     utility or proposes other limitations on the number of
11     customers or maximum amount of load to be served, the
12     Commission can extend the time for considering such a
13     certificate request by up to 90 days, and can schedule
14     hearings on such a request.
15         (5) That the applicant and the applicant's sales agents
16     will comply with all other applicable laws and rules.
17     (f) The Commission can extend the time for considering such
18 a certificate request by up to 90 days, and can schedule
19 hearings on such a request if:
20         (1) a party to the application proceeding has formally
21     requested that the Commission hold hearings in a pleading
22     that alleges that one or more of the allegations or
23     certifications in the application is false or misleading;
24     or
25         (2) other facts or circumstances exist that will
26     necessitate additional time or evidence in order to

 

 

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1     determine whether a certificate should be issued.
2     (g) (f) The Commission shall have the authority to
3 promulgate rules to carry out the provisions of this Section.
4 Within 30 days after the effective date of this amendatory Act
5 of the 92nd General Assembly, the Commission shall adopt an
6 emergency rule or rules applicable to the certification of
7 those gas suppliers that seek to serve residential customers.
8 Within 180 days of the effective date of this amendatory Act of
9 the 92nd General Assembly, the Commission shall adopt rules
10 that specify criteria which, if met by any such alternative gas
11 supplier, shall constitute the demonstration of technical,
12 financial, and managerial resources and abilities to provide
13 service required by item (1) of subsection (e) of this Section,
14 such as a requirement to post a bond or letter of credit, from
15 a responsible surety or financial institution, of sufficient
16 size for the nature and scope of the services to be provided,
17 demonstration of adequate insurance for the scope and nature of
18 the services to be provided, and experience in providing
19 similar services in other jurisdictions.
20     (h) The Commission may deny with prejudice any application
21 that repeatedly fails to include the attachments,
22 documentation, and affidavits required by the application form
23 or that repeatedly fails to provide any other information
24 required by this Section.
25 (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
 

 

 

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1     (220 ILCS 5/19-111 new)
2     Sec. 19-111. Material changes in business.
3     (a) The provisions of this Section shall apply only to
4 alternative gas suppliers serving or seeking to serve
5 residential or small commercial customers and only to the
6 extent such alternative gas suppliers provide services to
7 residential or small commercial customers.
8     (b) Alternative gas suppliers shall file with the
9 Commission a notification of any material change to the
10 information supplied in a certification application within 30
11 days of such material change.
12         (1) An alternative gas supplier shall file such notice
13     under the docket number assigned to the alternative gas
14     supplier's certification application, whichever is the
15     most recent. The supplier shall also serve such notice upon
16     the gas utility company serving customers in the service
17     area where the alternative gas supplier is certified to
18     provide service.
19         (2) After notice and an opportunity for a hearing, the
20     Commission may (i) suspend, rescind, or conditionally
21     rescind an alternative gas supplier's certificate if it
22     determines that the material change will adversely affect
23     the alternative gas supplier's fitness or ability to
24     provide the services for which it is certified or (ii)
25     require the alternative gas supplier to provide reasonable
26     financial assurances sufficient to protect their customers

 

 

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1     and gas utilities from default.
2     (c) Material changes to the information contained in or
3 supplied with a certification application include, but are not
4 limited to, the following:
5         (1) Any significant change in ownership (an ownership
6     interest of 5% or more) of the applicant or alternative gas
7     supplier.
8         (2) An affiliation with any gas utility or change of an
9     affiliation with a gas utility in this State.
10         (3) Retirement or other long-term changes to the
11     operational status of supply resources relied upon by the
12     alternative gas supplier to provide alternative gas
13     service. Changes in the volume of supply from any given
14     supply resource replaced by a comparable supply resource do
15     not need to be reported.
16         (4) Revocation, restriction, or termination of any
17     interconnection or service agreement with a pipeline
18     company or natural gas company relied upon by an
19     alternative gas supplier to provide alternative retail
20     natural gas service, but only if such revocation,
21     restriction, or termination creates a situation in which
22     the alternative gas supplier does not meet the tariffed
23     capacity requirements of the relevant Illinois natural gas
24     utility or utilities.
25         (5) If the alternative gas supplier has a long-term
26     bond rating from Standard & Poor's or its successor, or

 

 

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1     Fitch Ratings or its successor, or Moody's Investor Service
2     or its successor, and the alternative gas supplier's
3     long-term bond rating falls below BBB as reported by
4     Standard & Poor's or its successor or Fitch Ratings or its
5     successor or below Baa3 as reported by Moody's Investors
6     Service or its successor.
7         (6) The applicant or alternative gas supplier has or
8     intends to file for reorganization, protection from
9     creditors, or any other form of bankruptcy with any court.
10         (7) Any judgment, finding, or ruling by a court or
11     regulatory agency that could affect an alternative gas
12     supplier's fitness or ability to provide service in this
13     State.
14         (8) Any change in the alternative gas supplier's name
15     or logo, including without limitation any change in the
16     alternative gas supplier's legal name, fictitious names,
17     or assumed business names, except for logos and names the
18     alternative gas supplier provided as part of its original
19     certification process or that the alternative gas supplier
20     previously provided to the Commission under this Section.
 
21     (220 ILCS 5/19-112 new)
22     Sec. 19-112. Managerial resources.
23     (a) An alternative gas supplier must maintain sufficient
24 managerial resources and abilities to provide the service for
25 which it has a certificate of service authority. In determining

 

 

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1 the level of managerial resources and abilities that the
2 alternative gas supplier must demonstrate, the Commission
3 shall consider, in addition to the requirements in
4 19-110(e)(1), the following:
5         (1) complaints to the Commission by consumers
6     regarding the alternative gas supplier, including those
7     that reflect on the alternative gas supplier's ability to
8     properly manage solicitation and authorization; and
9         (2) the alternative gas supplier's involvement in the
10     Commission's consumer complaint process, including the
11     resources the alternative gas supplier dedicates to the
12     process and the alternative gas supplier's ability to
13     manage the issues raised by complaints, and the resolutions
14     of the complaints.
15     (b) The provisions of this Section shall apply only to
16 alternative gas suppliers serving or seeking to serve
17 residential or small commercial customers and only to the
18 extent such alternative gas suppliers provide services to
19 residential or small commercial customers, unless otherwise
20 noted.
 
21     (220 ILCS 5/19-115)
22     Sec. 19-115. Obligations of alternative gas suppliers.
23     (a) The provisions of this Section shall apply only to
24 alternative gas suppliers serving or seeking to serve
25 residential or small commercial customers and only to the

 

 

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

 

 

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1     after changes in any of the documents or information
2     required to be filed by this item (4); and
3         (5) maintain a customer call center where customers can
4     reach a representative and receive current information. At
5     least once every 6 months, each alternative gas supplier
6     shall provide written information to customers explaining
7     how to contact the call center. The average answer time for
8     calls placed to the call center shall not exceed 60 seconds
9     where a representative or automated system is ready to
10     render assistance and/or accept information to process
11     calls. The abandon rate for calls placed to the call center
12     shall not exceed 10%. Each alternative gas supplier shall
13     maintain records of the call center's telephone answer time
14     performance and abandon call rate. These records shall be
15     kept for a minimum of 2 years and shall be made available
16     to Commission personnel upon request. In the event that
17     answer times and/or abandon rates exceed the limits
18     established above, the reporting alternative gas supplier
19     may provide the Commission or its personnel with
20     explanatory details. At a minimum, these records shall
21     contain the following information in monthly increments:
22             (A) total number of calls received;
23             (B) number of calls answered;
24             (C) average answer time;
25             (D) number of abandoned calls; and
26             (E) abandon call rate.

 

 

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

 

 

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

 

 

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1         letter of agency language also shall be placed near the
2         signature line on the back of the check.
3             (E) At a minimum, the letter of agency must be
4         printed with a print of sufficient size to be clearly
5         legible and must contain clear and unambiguous
6         language that confirms:
7                 (i) the customer's billing name and address;
8                 (ii) the decision to change the natural gas
9             provider from the current provider to the
10             prospective alternative gas supplier;
11                 (iii) the terms, conditions, and nature of the
12             service to be provided to the customer, including,
13             but not limited to, the rates for the service
14             contracted for by the customer; and
15                 (iv) that the customer understands that any
16             natural gas provider selection the customer
17             chooses may involve a charge to the customer for
18             changing the customer's natural gas provider.
19             (F) Letters 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             (G) If any portion of a letter of agency is
23         translated into another language, then all portions of
24         the letter of agency must be translated into that
25         language.
26         (2) An appropriately qualified independent third party

 

 

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

 

 

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

 

 

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1     Such authorization must elicit the information in
2     paragraph (2)(A) through (F) of this subsection (c).
3     Alternative gas suppliers electing to confirm sales
4     electronically through an automated verification system
5     shall establish one or more toll-free telephone numbers
6     exclusively for that purpose. Calls to the number or
7     numbers shall connect a customer to a voice response unit,
8     or similar mechanism, that makes a date-stamped,
9     time-stamped recording of the required information
10     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

 

 

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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 (c) and any customer
14     information shall be protected in accordance with all
15     applicable statutes and regulations. In addition, an
16     alternative gas supplier shall provide the following when
17     marketing via 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 that 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

 

 

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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 (c).
25     Alternative gas suppliers must be in compliance with this
26 subsection (c) within 90 days after the effective date of this

 

 

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

 

 

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

 

 

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1     nor establish any differences as to prices, terms,
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
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; .
8         (3) include in any agreement a provision that obligates
9     a customer to the terms of the agreement if the customer
10     (i) moves outside the State of Illinois; (ii) moves to a
11     location without a transportation service program; or
12     (iii) moves to a location where the customer will not
13     require natural gas service, provided that nothing in this
14     subsection precludes an alternative gas supplier from
15     taking any action otherwise available to it to collect a
16     debt that arises out of service provided to the customer
17     before the customer moved; or
18         (4) assign the agreement to any alternative natural gas
19     supplier, unless:
20             (A) the supplier is an alternative gas supplier
21         certified by the Commission;
22             (B) the rates, terms, and conditions of the
23         agreement being assigned do not change during the
24         remainder of the time covered by the agreement;
25             (C) the customer is given no less than 30 days
26         prior written notice of the assignment and contact

 

 

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1         information for the new supplier; and
2             (D) the supplier assigning the contract provides
3         contact information that a customer can use to resolve
4         a dispute.
5     (g) (f) An alternative gas supplier shall comply with the
6 following requirements with respect to the marketing,
7 offering, and provision of products or services:
8         (1) Any marketing materials which make statements
9     concerning prices, terms, and conditions of service shall
10     contain information that adequately discloses the prices,
11     terms and conditions of the products or services.
12         (2) Before any customer is switched from another
13     supplier, the alternative gas supplier shall give the
14     customer written information that clearly and
15     conspicuously adequately discloses, in plain language, the
16     prices, terms, and conditions of the products and services
17     being offered and sold to the customer. Nothing in this
18     paragraph (2) may be read to relieve an alternative gas
19     supplier from the duties imposed on it by item (3) of
20     subsection (c) of Section 2DDD of the Consumer Fraud and
21     Deceptive Business Practices Act.
22         (3) The alternative gas supplier shall provide to the
23     customer:
24             (A) accurate, timely, and itemized billing
25         statements that describe the products and services
26         provided to the customer and their prices and that

 

 

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

 

 

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

 

 

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

 

 

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1     available; or
2         (3) other comparable limitation, but not including the
3     geographic locations of customers within the area which the
4     alternative gas supplier is certificated to serve.
5     The alternative gas supplier shall file the terms and
6 conditions of such service offering including the applicable
7 limitations with the Commission prior to making the service
8 offering available to customers.
9     (i) (h) Nothing in this Section shall be construed as
10 preventing an alternative gas supplier that is an affiliate of,
11 or which contracts with, (i) an industry or trade organization
12 or association, (ii) a membership organization or association
13 that exists for a purpose other than the purchase of gas, or
14 (iii) another organization that meets criteria established in a
15 rule adopted by the Commission from offering through the
16 organization or association services at prices, terms and
17 conditions that are available solely to the members of the
18 organization or association.
19 (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
 
20     (220 ILCS 5/19-120)
21     Sec. 19-120. Commission oversight of services provided by
22 gas suppliers.
23     (a) The provisions of this Section shall apply only to
24 alternative gas suppliers serving or seeking to serve
25 residential or small commercial customers and only to the

 

 

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1 extent such alternative gas suppliers provide services to
2 residential or small commercial customers.
3     (b) The Commission shall have jurisdiction in accordance
4 with the provisions of Article X of this Act either to
5 investigate on its own motion in order to determine whether or
6 to entertain and dispose of any complaint against any
7 alternative gas supplier alleging that:
8         (1) the alternative gas supplier has violated or is in
9     nonconformance with any applicable provisions of Section
10     19-110, 19-111, 19-112, or Section 19-115;
11         (2) an alternative gas supplier has failed to provide
12     service in accordance with the terms of its contract or
13     contracts with a customer or customers;
14         (3) the alternative gas supplier has violated or is in
15     nonconformance with the transportation services tariff of,
16     or any of its agreements relating to transportation
17     services with, the gas utility or municipal system
18     providing transportation services; or
19         (4) the alternative gas supplier has violated or failed
20     to comply with the requirements of Sections 8-201 through
21     8-207, 8-301, 8-505, or 8-507 of this Act as made
22     applicable to alternative gas suppliers.
23     (c) The Commission shall have authority after notice and
24 hearing held on complaint or on the Commission's own motion to
25 order any or all of the following remedies, penalties, or forms
26 of relief:

 

 

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1         (1) order an alternative gas supplier to cease and
2     desist, or correct, any violation of or nonconformance with
3     the provisions of Section 19-110, 19-111, 19-112, or
4     19-115;
5         (2) impose financial penalties for violations of or
6     nonconformances with the provisions of Section 19-110,
7     19-111, 19-112, or 19-115, not to exceed (i) $10,000 per
8     occurrence or (ii) $30,000 per day for those violations or
9     nonconformances which continue after the Commission issues
10     a cease-and-desist order; and
11         (3) alter, modify, revoke, or suspend the certificate
12     of service authority of an alternative gas supplier for
13     substantial or repeated violations of or nonconformances
14     with the provisions of Section 19-110, 19-111, 19-112, or
15     19-115.
16     (d) Nothing in this Act shall be construed to limit,
17 restrict, or mitigate in any way the power and authority of the
18 State's Attorneys or the Attorney General under the Consumer
19 Fraud and Deceptive Business Practices Act.
20 (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
 
21     (220 ILCS 5/19-125)
22     Sec. 19-125. Consumer education.
23     (a) The Commission shall make available upon request and at
24 no charge, and shall make available to the public on the
25 Internet through the State of Illinois World Wide Web site:

 

 

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1         (1) a list of all certified alternative gas suppliers
2     serving residential and small commercial customers within
3     the service area of each gas utility including, in the case
4     of the Internet, computer links to available web sites of
5     the certified alternative gas suppliers;
6         (2) a list of all certified alternative gas suppliers
7     serving residential or small commercial customers that
8     have been found in the last 3 years by the Commission
9     pursuant to Section 10-108 to have failed to provide
10     service in accordance with this Act;
11         (3) guidelines to assist customers in determining
12     which gas supplier is most appropriate for each customer;
13     and
14         (4) Internet links to providers of information that
15     enables customers to compare prices and services of gas
16     utilities and alternative gas suppliers, if and when that
17     information is available.
18     (a-5) The Commission shall develop no later than 6 months
19 after the effective date of this amendatory Act of the 95th
20 General Assembly and maintain consumer education information
21 to help residential and small commercial consumers understand
22 their gas supply options and their rights and responsibilities.
23 The Commission shall publish the consumer education
24 information on its World Wide Web site.
25     (a-10) To assist the Commission in developing consumer
26 education information, the Commission shall form a working

 

 

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1 group that shall consist of representatives of gas utilities
2 with residential and small commercial gas transportation
3 service programs, alternative gas suppliers, the Attorney
4 General, the Citizens Utility Board, and the Commission.
5     (a-15) At a minimum, the consumer education information
6 developed by the Commission shall include explanations or
7 descriptions of the following:
8         (1) The choices available to consumers to take gas
9     service from an alternative retail gas supplier or remain
10     as a retail customer of the gas utility.
11         (2) A consumer's rights and responsibilities in
12     receiving service from an alternative retail gas supplier
13     or remaining as a retail customer of the gas utility.
14         (3) The gas utility's role in delivering gas,
15     including, but not limited to, utility response to calls
16     for service and gas leaks.
17         (4) The legal obligations of alternative retail gas
18     suppliers.
19         (5) The components of a bill that could be received by
20     a customer taking delivery services.
21         (6) The procedures available to customers to address
22     complaints against a gas utility or an alternative retail
23     gas supplier and a list of phone numbers and other contact
24     information for the Commission, the Attorney General, or
25     the Citizens Utility Board.
26         (7) Guidance to assist consumers in making educated

 

 

SB0171 Enrolled - 36 - LRB095 06643 MJR 26749 b

1     decisions when choosing their natural gas provider,
2     including:
3             (A) how to compare prices;
4             (B) questions to ask when considering natural gas
5         providers; and
6             (C) current and historical utility gas rates.
7         (8) The availability of the "Do Not Contact List" for
8     those who do not wish to be solicited by natural gas
9     providers.
10     (b) In any service area where customers are able to choose
11 their natural gas supplier, the Commission shall require gas
12 utilities and alternative gas suppliers to inform customers of
13 how they may contact the Commission in order to obtain
14 information about the customer choice program.
15     (c) The Commission shall adopt a uniform disclosure that
16 alternative gas suppliers shall be required to complete for
17 each product offering. The uniform disclosure shall contain, at
18 a minimum:
19         (1) for products with a fixed price per therm, the
20     price per therm;
21         (2) the length of the initial term of the product, or,
22     if applicable, the expiration date of the initial term of
23     the product;
24         (3) the amount of the termination fees, if any;
25         (4) the amount of the administrative fees, other fees,
26     or recurring charges, if any, to be listed separately for

 

 

SB0171 Enrolled - 37 - LRB095 06643 MJR 26749 b

1     each and every fee or charge;
2         (5) for products with a variable price per therm, the
3     terms of such variability, including, but not limited to,
4     any index that is used to calculate the price and any
5     additional charges, costs and fees; and
6         (6) for products where a customer's charges are a fixed
7     amount per billing period regardless of the market price
8     for natural gas or the customer's natural gas consumption
9     during the billing period, the billing period covered.
10         If the alternative gas supplier will not offer a
11     different product for new customers as of the first of the
12     month, then the alternative gas supplier does not have to
13     provide new information until the first day of the month in
14     which a different product or products are being offered.
15         The Commission shall post this information on its World
16     Wide Web site in a manner that shall enable customers to
17     compare prices, terms, and conditions offered by the
18     alternative gas suppliers. The website shall be updated at
19     least monthly and the Commission shall maintain this
20     information on its website for at least 12 months to allow
21     customers to compare the historical plans and prices for
22     all alternative gas suppliers.
23     (d) The Commission shall make available in print, upon
24 request and at no charge and on its World Wide Web site,
25 information on which customers of alternative gas suppliers
26 serving residential and small commercial customers may address

 

 

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1 any complaint with regard to an alternative gas supplier's
2 obligations under Section 19-115 of this Article, including the
3 provision of service in accordance with the terms of its
4 contract, sales tactics, and rates. The Commission shall
5 maintain a summary by category and provider of all formal and
6 informal complaints it receives pursuant to this Section, and
7 it shall publish the summary on a quarterly basis on its World
8 Wide Web site. Individual customer information shall not be
9 included in the summary.
10     (e) The provisions of this Section shall apply only to
11 alternative gas suppliers serving or seeking to serve
12 residential and small commercial customers and only to the
13 extent such alternative gas suppliers provide services to
14 residential and small commercial customers.
15 (Source: P.A. 92-852, eff. 8-26-02.)
 
16     Section 10. The Consumer Fraud and Deceptive Business
17 Practices Act is amended by adding Sections 2DDD, 2EEE, 2FFF,
18 and 2GGG as follows:
 
19     (815 ILCS 505/2DDD new)
20     Sec. 2DDD. Alternative gas suppliers.
21     (a) Definitions.
22         (1) "Alternative gas supplier" has the same meaning as
23     in Section 19-105 of the Public Utilities Act.
24         (2) "Gas utility" has the same meaning as in Section

 

 

SB0171 Enrolled - 39 - LRB095 06643 MJR 26749 b

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

 

 

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

 

 

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1 confirmed the request for a change in accordance with one of
2 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

 

 

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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.

 

 

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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. A
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:

 

 

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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. All third-party verifications
16     shall be conducted in the same language that was used in
17     the underlying sales transaction and shall be recorded in
18     their entirety. Submitting alternative gas suppliers shall
19     maintain and preserve audio records of verification of
20     customer authorization for a minimum period of 2 years
21     after obtaining the verification. Automated systems must
22     provide customers with an option to speak with a live
23     person at any time during the call.
24         (3) The alternative gas supplier has obtained the
25     customer's electronic authorization to change in natural
26     gas service via telephone. Such authorization must elicit

 

 

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

 

 

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

 

 

SB0171 Enrolled - 47 - LRB095 06643 MJR 26749 b

1         customer assents.
2             (C) Throughout the duration of the alternative gas
3         supplier's contract with a customer, the alternative
4         gas supplier shall retain and, within 3 business days
5         of the customer's request, provide to the customer an
6         e-mail, paper, or facsimile of the terms and conditions
7         of the numbered contract version to which the customer
8         assents.
9             (D) The alternative gas supplier shall provide a
10         mechanism by which both the submission and receipt of
11         the electronic letter of agency are recorded by time
12         and date.
13             (E) After the customer completes the electronic
14         letter of agency, the alternative gas supplier shall
15         disclose conspicuously through its website that the
16         customer has been enrolled and the alternative gas
17         supplier shall provide the customer an enrollment
18         confirmation number.
19         (6) When a customer is solicited in person by the
20     alternative gas supplier's sales agent, the alternative
21     gas supplier may only obtain the customer's authorization
22     to change natural gas service through the method provided
23     for in paragraph (2) of this subsection (d).
24     Alternative gas suppliers must be in compliance with the
25 provisions of this subsection (d) within 90 days after the
26 effective date of this amendatory Act of the 95th General

 

 

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

 

 

SB0171 Enrolled - 49 - LRB095 06643 MJR 26749 b

1         (3) that the customer may contact the gas utility or
2     the alternative gas supplier to rescind the switch within
3     10 business days; and
4         (4) the contact information for the gas utility and the
5     alternative gas supplier.
6     The alternative gas supplier disclosure shall be included
7 in its sales solicitations, contracts, and all applicable sales
8 verification scripts.
9     (g) The provisions of this Section shall apply only to
10 alternative gas suppliers serving or seeking to serve
11 residential and small commercial customers and only to the
12 extent such alternative gas suppliers provide services to
13 residential and small commercial customers.
 
14     (815 ILCS 505/2EEE new)
15     Sec. 2EEE. Natural gas service advertising. Any
16 advertisement for natural gas service that lists rates shall
17 clearly and conspicuously disclose all associated costs for
18 such service including, but not limited to, access fees and
19 service fees. It is an unfair or deceptive act or practice
20 within the meaning of Section 2 of this Act for any person to
21 violate this Section.
22     The provisions of this Section shall apply only to
23 alternative gas suppliers serving or seeking to serve
24 residential and small commercial customers and only to the
25 extent such alternative gas suppliers provide services to

 

 

SB0171 Enrolled - 50 - LRB095 06643 MJR 26749 b

1 residential and small commercial customers.
 
2     (815 ILCS 505/2FFF new)
3     Sec. 2FFF. All personal information relating to the
4 customer of transmission, distribution, metering, or billing
5 of natural gas service, or the customer purchasing the
6 commodity of natural gas to be delivered through the
7 distribution system of a natural gas provider, shall be
8 maintained by the natural gas providers solely for the purpose
9 of generating the bill for such sales and services, and shall
10 not be divulged to any other persons with the exception of
11 credit bureaus, collection agencies, and persons licensed to
12 market natural gas service in the State of Illinois, without
13 the written consent of the customer. It is an unfair or
14 deceptive act or practice within the meaning of Section 2 of
15 this Act for any person to violate this Section.
16     The provisions of this Section shall apply only to
17 alternative gas suppliers serving or seeking to serve
18 residential and small commercial customers and only to the
19 extent such alternative gas suppliers provide services to
20 residential and small commercial customers.
 
21     (815 ILCS 505/2GGG new)
22     Sec. 2GGG. Prohibition of prize promotions to solicit
23 authority to provide alternative natural gas service.
24     (a) It is an unfair or deceptive act or practice within the

 

 

SB0171 Enrolled - 51 - LRB095 06643 MJR 26749 b

1 meaning of Section 2 of this Act for any person to solicit
2 authority to execute a change of gas suppliers or to solicit
3 authority to provide any alternative gas service through the
4 use of any sweepstakes, contests, or drawings.
5     (b) Forms or documents used or intended to be used by
6 consumers to enter sweepstakes, contests, or drawings of any
7 description may not be used by any person as written authority
8 to execute a change of any person's gas supplier or to render
9 any gas supply service.
10     (c) The provisions of this Section shall apply only to
11 alternative gas suppliers serving or seeking to serve
12 residential and small commercial customers and only to the
13 extent such alternative gas suppliers provide services to
14 residential and small commercial customers.
 
15     Section 99. Effective date. This Act takes effect upon
16 becoming law.