Rep. Thomas Holbrook

Filed: 1/13/2009

 

 


 

 


 
09500SB0171ham003 LRB095 06643 AMC 54012 a

1
AMENDMENT TO SENATE BILL 171

2     AMENDMENT NO. ______. Amend Senate Bill 171 by replacing
3 everything after the enacting clause with the following:
 
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

 

 

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1 received to one or more customers, or that engages in the
2 furnishing of gas to one or more customers, and shall include
3 affiliated interests of a gas utility, resellers, aggregators
4 and marketers, but shall not include (i) gas utilities (or any
5 agent of the gas utility to the extent the gas utility provides
6 tariffed services to customers through an agent); (ii) public
7 utilities that are owned and operated by any political
8 subdivision, public institution of higher education or
9 municipal corporation of this State, or public utilities that
10 are owned by a political subdivision, public institution of
11 higher education, or municipal corporation and operated by any
12 of its lessees or operating agents; (iii) natural gas
13 cooperatives that are not-for-profit corporations operated for
14 the purpose of administering, on a cooperative basis, the
15 furnishing of natural gas for the benefit of their members who
16 are consumers of natural gas; and (iv) the ownership or
17 operation of a facility that sells compressed natural gas at
18 retail to the public for use only as a motor vehicle fuel and
19 the selling of compressed natural gas at retail to the public
20 for use only as a motor vehicle fuel.
21     "Gas utility" means a public utility, as defined in Section
22 3-105 of this Act, that has a franchise, license, permit, or
23 right to furnish or sell gas or transportation services to
24 customers within a service area.
25     "Residential customer" means a customer who receives gas
26 utility service for household purposes distributed to a

 

 

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1 dwelling of 2 or fewer units which is billed under a
2 residential rate or gas utility service for household purposes
3 distributed to a dwelling unit or units which is billed under a
4 residential rate and is registered by a separate meter for each
5 dwelling unit.
6     "Sales agent" means any employee, agent, independent
7 contractor, consultant, or other person that is engaged by the
8 alternative gas supplier to solicit customers to purchase,
9 enroll in, or contract for alternative gas service on behalf of
10 an alternative gas supplier.
11     "Service area" means (i) the geographic area within which a
12 gas utility was lawfully entitled to provide gas to customers
13 as of the effective date of this amendatory Act of the 92nd
14 General Assembly and includes (ii) the location of any customer
15 to which the gas utility was lawfully providing gas utility
16 services on such effective date.
17     "Small commercial customer" means a nonresidential retail
18 customer of a natural gas utility who consumed is identified by
19 the alternative gas supplier, prior to becoming a customer of
20 the alternative gas supplier, as consuming 5,000 or fewer
21 therms of natural gas during the previous year; provided that
22 any alternative gas supplier may remove the customer from
23 designation as a "small commercial customer" if the customer
24 consumes more than 5,000 therms of natural gas in any calendar
25 year after becoming a customer of the alternative gas supplier.
26 In determining whether a customer has consumed 5,000 or fewer

 

 

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1 therms of natural gas during the previous year, usage by the
2 same commercial customer shall be aggregated to include usage
3 at the same premises even if measured by more than one meter,
4 and to include usage at multiple premises. Nothing in this
5 Section creates an affirmative obligation on a gas utility to
6 monitor or inform customers or alternative gas suppliers as to
7 a customer's status as a small commercial customer as that term
8 is defined herein. Nothing in this Section relieves a gas
9 utility from any obligation to provide information upon request
10 to a customer, alternative gas supplier, the Commission, or
11 others necessary to determine whether a customer meets the
12 classification of small commercial customers as that term is
13 defined herein.
14     "Tariffed service" means a service provided to customers by
15 a gas utility as defined by its rates on file with the
16 Commission pursuant to the provisions of Article IX of this
17 Act.
18     "Transportation services" means those services provided by
19 the gas utility that are necessary in order for the storage,
20 transmission and distribution systems to function so that
21 customers located in the gas utility's service area can receive
22 gas from suppliers other than the gas utility and shall
23 include, without limitation, standard metering and billing
24 services.
25 (Source: P.A. 94-738, eff. 5-4-06.)
 

 

 

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1     (220 ILCS 5/19-110)
2     Sec. 19-110. Certification of alternative gas suppliers.
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) An alternative gas supplier must obtain a certificate
9 of service authority from the Commission in accordance with
10 this Section before serving any customer or other user located
11 in this State. An alternative gas supplier may request, and the
12 Commission may grant, a certificate of service authority for
13 the entire State or for a specified geographic area of the
14 State. A person, corporation, or other entity acting as an
15 alternative gas supplier on the effective date of this
16 amendatory Act of the 92nd General Assembly shall have 180 days
17 from the effective date of this amendatory Act of the 92nd
18 General Assembly to comply with the requirements of this
19 Section in order to continue to operate as an alternative gas
20 supplier.
21     (c) An alternative gas supplier seeking a certificate of
22 service authority shall file with the Commission a verified
23 application containing information showing that the applicant
24 meets the requirements of this Section. The alternative gas
25 supplier shall publish notice of its application in the
26 official State newspaper within 10 days following the date of

 

 

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1 its filing. No later than 45 days after the application is
2 properly filed with the Commission, and such notice is
3 published, the Commission shall issue its order granting or
4 denying the application.
5     (d) An application for a certificate of service authority
6 shall identify the area or areas in which the applicant intends
7 to offer service and the types of services it intends to offer.
8 Applicants that seek to serve residential or small commercial
9 customers within a geographic area that is smaller than a gas
10 utility's service area shall submit evidence demonstrating
11 that the designation of this smaller area does not violate
12 Section 19-115. An applicant may state in its application for
13 certification any limitations that will be imposed on the
14 number of customers or maximum load to be served. The applicant
15 shall submit as part of its application a statement indicating:
16         (1) Whether the applicant has been denied a natural gas
17     supplier license in any state in the United States.
18         (2) Whether the applicant has had a natural gas
19     supplier license suspended or revoked by any state in the
20     United States.
21         (3) Where, if any, other natural gas supplier license
22     applications are pending in the United States.
23         (4) Whether the applicant is the subject of any
24     lawsuits filed in a court of law or formal complaints filed
25     with a regulatory agency alleging fraud, deception or
26     unfair marketing practices, or other similar allegations,

 

 

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1     identifying the name, case number, and jurisdiction of each
2     such lawsuit or complaint.
3     For the purposes of this subsection (d), formal complaints
4 include only those complaints that seek a binding determination
5 from a state or federal regulatory body.
6     (e) The Commission shall grant the application for a
7 certificate of service authority if it makes the findings set
8 forth in this subsection based on the verified application and
9 such other information as the applicant may submit.
10         (1) That the applicant possesses possess sufficient
11     technical, financial, and managerial resources and
12     abilities to provide the service for which it seeks a
13     certificate of service authority. In determining the level
14     of technical, financial, and managerial resources and
15     abilities which the applicant must demonstrate, the
16     Commission shall consider:
17             (A) the characteristics, including the size and
18         financial sophistication of the customers that the
19         applicant seeks to serve; , and shall consider
20             (B) whether the applicant seeks to provide gas
21         using property, plant, and equipment that it owns,
22         controls, or operates; and
23             (C) the applicant's commitment of resources to the
24         management of sales and marketing staff, through
25         affirmative managerial policies, independent audits,
26         technology, hands-on field monitoring and training,

 

 

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1         and, in the case of applicants who will have sales
2         personnel or sales agents within the State of Illinois,
3         the applicant's managerial presence within the State.
4         (2) That the applicant will comply with all applicable
5     federal, State, regional, and industry rules, policies,
6     practices, and procedures for the use, operation, and
7     maintenance of the safety, integrity, and reliability of
8     the gas transmission system.
9         (3) That the applicant will comply with such
10     informational or reporting requirements as the Commission
11     may by rule establish.
12         (4) That the area to be served by the applicant and any
13     limitations it proposes on the number of customers or
14     maximum amount of load to be served meet the provisions of
15     Section 19-115, provided, that if the applicant seeks to
16     serve an area smaller than the service area of a gas
17     utility or proposes other limitations on the number of
18     customers or maximum amount of load to be served, the
19     Commission can extend the time for considering such a
20     certificate request by up to 90 days, and can schedule
21     hearings on such a request.
22         (5) That the applicant and the applicant's sales agents
23     will comply with all other applicable laws and rules.
24     (f) The Commission can extend the time for considering such
25 a certificate request by up to 90 days, and can schedule
26 hearings on such a request if:

 

 

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1         (1) a party to the application proceeding has formally
2     requested that the Commission hold hearings in a pleading
3     that alleges that one or more of the allegations or
4     certifications in the application is false or misleading;
5     or
6         (2) other facts or circumstances exist that will
7     necessitate additional time or evidence in order to
8     determine whether a certificate should be issued.
9     (g) (f) The Commission shall have the authority to
10 promulgate rules to carry out the provisions of this Section.
11 Within 30 days after the effective date of this amendatory Act
12 of the 92nd General Assembly, the Commission shall adopt an
13 emergency rule or rules applicable to the certification of
14 those gas suppliers that seek to serve residential customers.
15 Within 180 days of the effective date of this amendatory Act of
16 the 92nd General Assembly, the Commission shall adopt rules
17 that specify criteria which, if met by any such alternative gas
18 supplier, shall constitute the demonstration of technical,
19 financial, and managerial resources and abilities to provide
20 service required by item (1) of subsection (e) of this Section,
21 such as a requirement to post a bond or letter of credit, from
22 a responsible surety or financial institution, of sufficient
23 size for the nature and scope of the services to be provided,
24 demonstration of adequate insurance for the scope and nature of
25 the services to be provided, and experience in providing
26 similar services in other jurisdictions.

 

 

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1     (h) The Commission may deny with prejudice any application
2 that repeatedly fails to include the attachments,
3 documentation, and affidavits required by the application form
4 or that repeatedly fails to provide any other information
5 required by this Section.
6 (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
 
7     (220 ILCS 5/19-111 new)
8     Sec. 19-111. Material changes in business.
9     (a) The provisions of this Section shall apply only to
10 alternative gas suppliers serving or seeking to serve
11 residential or small commercial customers and only to the
12 extent such alternative gas suppliers provide services to
13 residential or small commercial customers.
14     (b) Alternative gas suppliers shall file with the
15 Commission a notification of any material change to the
16 information supplied in a certification application within 30
17 days of such material change.
18         (1) An alternative gas supplier shall file such notice
19     under the docket number assigned to the alternative gas
20     supplier's certification application, whichever is the
21     most recent. The supplier shall also serve such notice upon
22     the gas utility company serving customers in the service
23     area where the alternative gas supplier is certified to
24     provide service.
25         (2) After notice and an opportunity for a hearing, the

 

 

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1     Commission may (i) suspend, rescind, or conditionally
2     rescind an alternative gas supplier's certificate if it
3     determines that the material change will adversely affect
4     the alternative gas supplier's fitness or ability to
5     provide the services for which it is certified or (ii)
6     require the alternative gas supplier to provide reasonable
7     financial assurances sufficient to protect their customers
8     and gas utilities from default.
9     (c) Material changes to the information contained in or
10 supplied with a certification application include, but are not
11 limited to, the following:
12         (1) Any significant change in ownership (an ownership
13     interest of 5% or more) of the applicant or alternative gas
14     supplier.
15         (2) An affiliation with any gas utility or change of an
16     affiliation with a gas utility in this State.
17         (3) Retirement or other long-term changes to the
18     operational status of supply resources relied upon by the
19     alternative gas supplier to provide alternative gas
20     service. Changes in the volume of supply from any given
21     supply resource replaced by a comparable supply resource do
22     not need to be reported.
23         (4) Revocation, restriction, or termination of any
24     interconnection or service agreement with a pipeline
25     company or natural gas company relied upon by an
26     alternative gas supplier to provide alternative retail

 

 

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1     natural gas service, but only if such revocation,
2     restriction, or termination creates a situation in which
3     the alternative gas supplier does not meet the tariffed
4     capacity requirements of the relevant Illinois natural gas
5     utility or utilities.
6         (5) If the alternative gas supplier has a long-term
7     bond rating from Standard & Poor's or its successor, or
8     Fitch Ratings or its successor, or Moody's Investor Service
9     or its successor, and the alternative gas supplier's
10     long-term bond rating falls below BBB as reported by
11     Standard & Poor's or its successor or Fitch Ratings or its
12     successor or below Baa3 as reported by Moody's Investors
13     Service or its successor.
14         (6) The applicant or alternative gas supplier has or
15     intends to file for reorganization, protection from
16     creditors, or any other form of bankruptcy with any court.
17         (7) Any judgment, finding, or ruling by a court or
18     regulatory agency that could affect an alternative gas
19     supplier's fitness or ability to provide service in this
20     State.
21         (8) Any change in the alternative gas supplier's name
22     or logo, including without limitation any change in the
23     alternative gas supplier's legal name, fictitious names,
24     or assumed business names, except for logos and names the
25     alternative gas supplier provided as part of its original
26     certification process or that the alternative gas supplier

 

 

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1     previously provided to the Commission under this Section.
 
2     (220 ILCS 5/19-112 new)
3     Sec. 19-112. Managerial resources.
4     (a) An alternative gas supplier must maintain sufficient
5 managerial resources and abilities to provide the service for
6 which it has a certificate of service authority. In determining
7 the level of managerial resources and abilities that the
8 alternative gas supplier must demonstrate, the Commission
9 shall consider, in addition to the requirements in
10 19-110(e)(1), the following:
11         (1) complaints to the Commission by consumers
12     regarding the alternative gas supplier, including those
13     that reflect on the alternative gas supplier's ability to
14     properly manage solicitation and authorization; and
15         (2) the alternative gas supplier's involvement in the
16     Commission's consumer complaint process, including the
17     resources the alternative gas supplier dedicates to the
18     process and the alternative gas supplier's ability to
19     manage the issues raised by complaints, and the resolutions
20     of the complaints.
21     (b) 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, unless otherwise

 

 

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1 noted.
 
2     (220 ILCS 5/19-115)
3     Sec. 19-115. Obligations of alternative gas suppliers.
4     (a) The provisions of this Section shall apply only to
5 alternative gas suppliers serving or seeking to serve
6 residential or small commercial customers and only to the
7 extent such alternative gas suppliers provide services to
8 residential or small commercial customers.
9     (b) An alternative gas supplier shall:
10         (1) comply with the requirements imposed on public
11     utilities by Sections 8-201 through 8-207, 8-301, 8-505 and
12     8-507 of this Act, to the extent that these Sections have
13     application to the services being offered by the
14     alternative gas supplier; and
15         (2) continue to comply with the requirements for
16     certification stated in Section 19-110; .
17         (3) comply with complaint procedures established by
18     the Commission;
19         (4) except as provided in subsection (h) of this
20     Section, file with the Chief Clerk of the Commission,
21     within 20 business days after the effective date of this
22     amendatory Act of the 95th General Assembly, a copy of bill
23     formats, standard customer contract and customer complaint
24     and resolution procedures, and the name and telephone
25     number of the company representative whom Commission

 

 

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1     employees may contact to resolve customer complaints and
2     other matters. In the case of a gas supplier that engages
3     in door-to-door solicitation, the company shall file with
4     the Commission the consumer information disclosure
5     required by item (3) of subsection (c) of Section 2DDD the
6     Consumer Fraud and Deceptive Business Practices Act and
7     shall file updated information within 10 business days
8     after changes in any of the documents or information
9     required to be filed by this item (4); and
10         (5) maintain a customer call center where customers can
11     reach a representative and receive current information. At
12     least once every 6 months, each alternative gas supplier
13     shall provide written information to customers explaining
14     how to contact the call center. The average answer time for
15     calls placed to the call center shall not exceed 60 seconds
16     where a representative or automated system is ready to
17     render assistance and/or accept information to process
18     calls. The abandon rate for calls placed to the call center
19     shall not exceed 10%. Each alternative gas supplier shall
20     maintain records of the call center's telephone answer time
21     performance and abandon call rate. These records shall be
22     kept for a minimum of 2 years and shall be made available
23     to Commission personnel upon request. In the event that
24     answer times and/or abandon rates exceed the limits
25     established above, the reporting alternative gas supplier
26     may provide the Commission or its personnel with

 

 

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

 

 

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1 disclosure of all material terms and conditions of the offer;
2 and (iii) the alternative gas supplier has confirmed the
3 request for a change in accordance with one of the following
4 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

 

 

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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

 

 

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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. An
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

 

 

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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 by providing additional
18     information. All third-party verifications shall be
19     conducted in the same language that was used in the
20     underlying sales transaction and shall be recorded in their
21     entirety. Submitting alternative gas suppliers shall
22     maintain and preserve audio records of verification of
23     customer authorization for a minimum period of 2 years
24     after obtaining the verification. Automated systems must
25     provide customers with an option to speak with a live
26     person at any time during the call.

 

 

09500SB0171ham003 - 21 - LRB095 06643 AMC 54012 a

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

 

 

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

 

 

09500SB0171ham003 - 23 - LRB095 06643 AMC 54012 a

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

 

 

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

 

 

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1         (3) Require the violating alternative gas supplier to
2     pay a fine of up to $1,000 into the Public Utility Fund for
3     each repeated and intentional violation of this Section.
4         (4) Issue a cease and desist order.
5         (5) For a pattern of violation of this Section or for
6     intentionally violating a cease and desist order, revoke
7     the violating alternative gas supplier's certificate of
8     service authority.
9     (c) An alternative gas supplier shall obtain verifiable
10 authorization from a customer, in a form or manner approved by
11 the Commission, before the customer is switched from another
12 supplier.
13     (e) (d) No alternative gas supplier shall:
14         (1) enter into or employ any arrangements which have
15     the effect of preventing any customer from having access to
16     the services of the gas utility in whose service area the
17     customer is located; or
18         (2) charge customers for such access; .
19         (3) bill for goods or services not authorized by the
20     customer; or
21         (4) bill for a disputed amount where the alternative
22     gas supplier has been provided notice of such dispute. The
23     supplier shall attempt to resolve a dispute with the
24     customer. When the dispute is not resolved to the
25     customer's satisfaction, the supplier shall inform the
26     customer of the right to file an informal complaint with

 

 

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1     the Commission and provide contact information. While the
2     pending dispute is active at the Commission, an alternative
3     gas supplier may bill only for the undisputed amount until
4     the Commission has taken final action on the complaint.
5     (f) (e) An alternative gas supplier that is certified to
6 serve residential or small commercial customers shall not:
7         (1) deny service to a customer or group of customers
8     nor establish any differences as to prices, terms,
9     conditions, services, products, facilities, or in any
10     other respect, whereby such denial or differences are based
11     upon race, gender, or income; or
12         (2) deny service based on locality, nor establish any
13     unreasonable difference as to prices, terms, conditions,
14     services, products, or facilities as between localities; .
15         (3) include in any agreement a provision that obligates
16     a customer to the terms of the agreement if the customer
17     (i) moves outside the State of Illinois; (ii) moves to a
18     location without a transportation service program; or
19     (iii) moves to a location where the customer will not
20     require natural gas service, provided that nothing in this
21     subsection precludes an alternative gas supplier from
22     taking any action otherwise available to it to collect a
23     debt that arises out of service provided to the customer
24     before the customer moved; or
25         (4) assign the agreement to any alternative natural gas
26     supplier, unless:

 

 

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1             (A) the supplier is an alternative gas supplier
2         certified by the Commission;
3             (B) the rates, terms, and conditions of the
4         agreement being assigned do not change during the
5         remainder of the time covered by the agreement;
6             (C) the customer is given no less than 30 days
7         prior written notice of the assignment and contact
8         information for the new supplier; and
9             (D) the supplier assigning the contract provides
10         contact information that a customer can use to resolve
11         a dispute.
12     (g) (f) An alternative gas supplier shall comply with the
13 following requirements with respect to the marketing,
14 offering, and provision of products or services:
15         (1) Any marketing materials which make statements
16     concerning prices, terms, and conditions of service shall
17     contain information that adequately discloses the prices,
18     terms and conditions of the products or services.
19         (2) Before any customer is switched from another
20     supplier, the alternative gas supplier shall give the
21     customer written information that clearly and
22     conspicuously adequately discloses, in plain language, the
23     prices, terms, and conditions of the products and services
24     being offered and sold to the customer. Nothing in this
25     paragraph (2) may be read to relieve an alternative gas
26     supplier from the duties imposed on it by item (3) of

 

 

09500SB0171ham003 - 28 - LRB095 06643 AMC 54012 a

1     subsection (c) of Section 2DDD of the Consumer Fraud and
2     Deceptive Business Practices Act.
3         (3) The alternative gas supplier shall provide to the
4     customer:
5             (A) accurate, timely, and itemized billing
6         statements that describe the products and services
7         provided to the customer and their prices and that
8         specify the gas consumption amount and any service
9         charges and taxes; provided that this item (g)(3)(A)
10         (f)(3)(A) does not apply to small commercial
11         customers;
12             (B) billing statements that clearly and
13         conspicuously discloses the name and contact
14         information for the alternative gas supplier;
15             (C) an additional statement, at least annually,
16         that adequately discloses the average monthly prices,
17         and the terms and conditions, of the products and
18         services sold to the customer; provided that this item
19         (g)(3)(C) (f)(3)(B) does not apply to small commercial
20         customers;
21             (D) (C) refunds of any deposits with interest
22         within 30 days after the date that the customer changes
23         gas suppliers or discontinues service if the customer
24         has satisfied all of his or her outstanding financial
25         obligations to the alternative gas supplier at an
26         interest rate set by the Commission which shall be the

 

 

09500SB0171ham003 - 29 - LRB095 06643 AMC 54012 a

1         same as that required of gas utilities; and
2             (E) (D) refunds, in a timely fashion, of all
3         undisputed overpayments upon the oral or written
4         request of the customer.
5         (4) An alternative gas supplier and its sales agents
6     shall refrain from any direct marketing or soliciting to
7     consumers on the gas utility's "Do Not Contact List", which
8     the alternative gas supplier shall obtain on the 15th
9     calendar day of the month from the gas utility in whose
10     service area the consumer is provided with gas service. If
11     the 15th calendar day is a non-business day, then the
12     alternative gas supplier shall obtain the list on the next
13     business day following the 15th calendar day of that month.
14         (5) Early Termination.
15             (A) Any agreement that contains an early
16         termination clause shall disclose the amount of the
17         early termination fee, provided that any early
18         termination fee or penalty shall not exceed $50 total,
19         regardless of whether or not the agreement is a
20         multiyear agreement.
21             (B) In any agreement that contains an early
22         termination clause, an alternative gas supplier shall
23         provide the customer the opportunity to terminate the
24         agreement without any termination fee or penalty
25         within 10 business days after the date of the first
26         bill issued to the customer for products or services

 

 

09500SB0171ham003 - 30 - LRB095 06643 AMC 54012 a

1         provided by the alternative gas supplier. The
2         agreement shall disclose the opportunity and provide a
3         toll-free phone number that the customer may call in
4         order to terminate the agreement.
5         (6) Within 2 business days after electronic receipt of
6     a customer switch from the alternative gas supplier and
7     confirmation of eligibility, the gas utility shall provide
8     the customer written notice confirming the switch. The gas
9     utility shall not switch the service until 10 business days
10     after the date on the notice to the customer.
11         (7) The alternative gas supplier shall provide each
12     customer the opportunity to rescind its agreement without
13     penalty within 10 business days after the date on the gas
14     utility notice to the customer. The alternative gas
15     supplier shall disclose all of the following:
16             (A) that the gas utility shall send a notice
17         confirming the switch;
18             (B) that from the date the utility issues the
19         notice confirming the switch, the customer shall have
20         10 business days to rescind the switch without penalty;
21             (C) that the customer shall contact the gas utility
22         or the alternative gas supplier to rescind the switch;
23         and
24             (D) the contact information for the gas utility.
25         The alternative gas supplier disclosure shall be
26     included in its sales solicitations, contracts, and all

 

 

09500SB0171ham003 - 31 - LRB095 06643 AMC 54012 a

1     applicable sales verification scripts.
2     (h) (g) An alternative gas supplier may limit the overall
3 size or availability of a service offering by specifying one or
4 more of the following:
5         (1) a maximum number of customers and maximum amount of
6     gas load to be served;
7         (2) time period during which the offering will be
8     available; or
9         (3) other comparable limitation, but not including the
10     geographic locations of customers within the area which the
11     alternative gas supplier is certificated to serve.
12     The alternative gas supplier shall file the terms and
13 conditions of such service offering including the applicable
14 limitations with the Commission prior to making the service
15 offering available to customers.
16     (i) (h) Nothing in this Section shall be construed as
17 preventing an alternative gas supplier that is an affiliate of,
18 or which contracts with, (i) an industry or trade organization
19 or association, (ii) a membership organization or association
20 that exists for a purpose other than the purchase of gas, or
21 (iii) another organization that meets criteria established in a
22 rule adopted by the Commission from offering through the
23 organization or association services at prices, terms and
24 conditions that are available solely to the members of the
25 organization or association.
26 (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
 

 

 

09500SB0171ham003 - 32 - LRB095 06643 AMC 54012 a

1     (220 ILCS 5/19-120)
2     Sec. 19-120. Commission oversight of services provided by
3 gas suppliers.
4     (a) The provisions of this Section shall apply only to
5 alternative gas suppliers serving or seeking to serve
6 residential or small commercial customers and only to the
7 extent such alternative gas suppliers provide services to
8 residential or small commercial customers.
9     (b) The Commission shall have jurisdiction in accordance
10 with the provisions of Article X of this Act either to
11 investigate on its own motion in order to determine whether or
12 to entertain and dispose of any complaint against any
13 alternative gas supplier alleging that:
14         (1) the alternative gas supplier has violated or is in
15     nonconformance with any applicable provisions of Section
16     19-110, 19-111, 19-112, or Section 19-115;
17         (2) an alternative gas supplier has failed to provide
18     service in accordance with the terms of its contract or
19     contracts with a customer or customers;
20         (3) the alternative gas supplier has violated or is in
21     nonconformance with the transportation services tariff of,
22     or any of its agreements relating to transportation
23     services with, the gas utility or municipal system
24     providing transportation services; or
25         (4) the alternative gas supplier has violated or failed

 

 

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1     to comply with the requirements of Sections 8-201 through
2     8-207, 8-301, 8-505, or 8-507 of this Act as made
3     applicable to alternative gas suppliers.
4     (c) The Commission shall have authority after notice and
5 hearing held on complaint or on the Commission's own motion to
6 order any or all of the following remedies, penalties, or forms
7 of relief:
8         (1) order an alternative gas supplier to cease and
9     desist, or correct, any violation of or nonconformance with
10     the provisions of Section 19-110, 19-111, 19-112, or
11     19-115;
12         (2) impose financial penalties for violations of or
13     nonconformances with the provisions of Section 19-110,
14     19-111, 19-112, or 19-115, not to exceed (i) $10,000 per
15     occurrence or (ii) $30,000 per day for those violations or
16     nonconformances which continue after the Commission issues
17     a cease-and-desist order; and
18         (3) alter, modify, revoke, or suspend the certificate
19     of service authority of an alternative gas supplier for
20     substantial or repeated violations of or nonconformances
21     with the provisions of Section 19-110, 19-111, 19-112, or
22     19-115.
23     (d) Nothing in this Act shall be construed to limit,
24 restrict, or mitigate in any way the power and authority of the
25 State's Attorneys or the Attorney General under the Consumer
26 Fraud and Deceptive Business Practices Act.

 

 

09500SB0171ham003 - 34 - LRB095 06643 AMC 54012 a

1 (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
 
2     (220 ILCS 5/19-125)
3     Sec. 19-125. Consumer education.
4     (a) The Commission shall make available upon request and at
5 no charge, and shall make available to the public on the
6 Internet through the State of Illinois World Wide Web site:
7         (1) a list of all certified alternative gas suppliers
8     serving residential and small commercial customers within
9     the service area of each gas utility including, in the case
10     of the Internet, computer links to available web sites of
11     the certified alternative gas suppliers;
12         (2) a list of all certified alternative gas suppliers
13     serving residential or small commercial customers that
14     have been found in the last 3 years by the Commission
15     pursuant to Section 10-108 to have failed to provide
16     service in accordance with this Act;
17         (3) guidelines to assist customers in determining
18     which gas supplier is most appropriate for each customer;
19     and
20         (4) Internet links to providers of information that
21     enables customers to compare prices and services of gas
22     utilities and alternative gas suppliers, if and when that
23     information is available.
24     (a-5) The Commission shall develop no later than 6 months
25 after the effective date of this amendatory act of the 95th

 

 

09500SB0171ham003 - 35 - LRB095 06643 AMC 54012 a

1 General Assembly and maintain consumer education information
2 to help residential and small commercial consumers understand
3 their gas supply options and their rights and responsibilities.
4 The Commission shall publish the consumer education
5 information on its World Wide Web site.
6     (a-10) To assist the Commission in developing consumer
7 education information, the Commission shall form a working
8 group that shall consist of representatives of gas utilities
9 with residential and small commercial gas transportation
10 service programs, alternative gas suppliers, the Attorney
11 General, the Citizens Utility Board, and the Commission.
12     (a-15) At a minimum, the consumer education information
13 developed by the Commission shall include explanations or
14 descriptions of the following:
15         (1) The choices available to consumers to take gas
16     service from an alternative retail gas supplier or remain
17     as a retail customer of the gas utility.
18         (2) A consumer's rights and responsibilities in
19     receiving service from an alternative retail gas supplier
20     or remaining as a retail customer of the gas utility.
21         (3) The gas utility's role in delivering gas,
22     including, but not limited to, utility response to calls
23     for service and gas leaks.
24         (4) The legal obligations of alternative retail gas
25     suppliers.
26         (5) The components of a bill that could be received by

 

 

09500SB0171ham003 - 36 - LRB095 06643 AMC 54012 a

1     a customer taking delivery services.
2         (6) The procedures available to customers to address
3     complaints against a gas utility or an alternative retail
4     gas supplier and a list of phone numbers and other contact
5     information for the Commission, the Attorney General, or
6     the Citizens Utility Board.
7         (7) Guidance to assist consumers in making educated
8     decisions when choosing their natural gas provider,
9     including:
10             (A) how to compare prices;
11             (B) questions to ask when considering natural gas
12         providers; and
13             (C) current and historical utility gas rates.
14         (8) The availability of the "Do Not Contact List" for
15     those who do not wish to be solicited by natural gas
16     providers.
17     (b) In any service area where customers are able to choose
18 their natural gas supplier, the Commission shall require gas
19 utilities and alternative gas suppliers to inform customers of
20 how they may contact the Commission in order to obtain
21 information about the customer choice program.
22     (c) The Commission shall adopt a uniform disclosure that
23 alternative gas suppliers shall be required to complete for
24 each product offering. The uniform disclosure shall contain, at
25 a minimum:
26         (1) for products with a fixed price per therm, the

 

 

09500SB0171ham003 - 37 - LRB095 06643 AMC 54012 a

1     price per therm;
2         (2) the length of the initial term of the product, or,
3     if applicable, the expiration date of the initial term of
4     the product;
5         (3) the amount of the termination fees, if any;
6         (4) the amount of the administrative fees, other fees,
7     or recurring charges, if any, to be listed separately for
8     each and every fee or charge;
9         (5) for products with a variable price per therm, the
10     terms of such variability, including, but not limited to,
11     any index that is used to calculate the price and any
12     additional charges, costs and fees; and
13         (6) for products where a customer's charges are a fixed
14     amount per billing period regardless of the market price
15     for natural gas or the customer's natural gas consumption
16     during the billing period, the billing period covered.
17         If the alternative gas supplier will not offer a
18     different product for new customers as of the first of the
19     month, then the alternative gas supplier does not have to
20     provide new information until the first day of the month in
21     which a different product or products are being offered.
22         The Commission shall post this information on its World
23     Wide Web site in a manner that shall enable customers to
24     compare prices, terms, and conditions offered by the
25     alternative gas suppliers. The website shall be updated at
26     least monthly and the Commission shall maintain this

 

 

09500SB0171ham003 - 38 - LRB095 06643 AMC 54012 a

1     information on its website for at least 12 months to allow
2     customers to compare the historical plans and prices for
3     all alternative gas suppliers.
4     (d) The Commission shall make available in print, upon
5 request and at no charge and on its World Wide Web site,
6 information on which customers of alternative gas suppliers
7 serving residential and small commercial customers may address
8 any complaint with regard to an alternative gas supplier's
9 obligations under Section 19-115 of this Article, including the
10 provision of service in accordance with the terms of its
11 contract, sales tactics, and rates. The Commission shall
12 maintain a summary by category and provider of all formal and
13 informal complaints it receives pursuant to this Section, and
14 it shall publish the summary on a quarterly basis on its World
15 Wide Web site. Individual customer information shall not be
16 included in the summary.
17     (e) The provisions of this Section shall apply only to
18 alternative gas suppliers serving or seeking to serve
19 residential and small commercial customers and only to the
20 extent such alternative gas suppliers provide services to
21 residential and small commercial customers.
22 (Source: P.A. 92-852, eff. 8-26-02.)
 
23     Section 10. The Consumer Fraud and Deceptive Business
24 Practices Act is amended by adding Sections 2DDD, 2EEE, 2FFF,
25 and 2GGG as follows:
 

 

 

09500SB0171ham003 - 39 - LRB095 06643 AMC 54012 a

1     (815 ILCS 505/2DDD new)
2     Sec. 2DDD. Alternative gas suppliers.
3     (a) Definitions.
4         (1) "Alternative gas supplier" has the same meaning as
5     in Section 19-105 of the Public Utilities Act.
6         (2) "Gas utility" has the same meaning as in Section
7     19-105 of the Public Utilities Act.
8     (b) It is an unfair or deceptive act or practice within the
9 meaning of Section 2 of this Act for any person to violate any
10 provision of this Section.
11     (c) Solicitation.
12         (1) An alternative gas supplier shall not misrepresent
13     the affiliation of any alternative supplier with the gas
14     utility, governmental bodies, or consumer groups.
15         (2) If any sales solicitation, agreement, contract, or
16     verification is translated into another language and
17     provided to a customer, all of the documents must be
18     provided to the customer in that other language.
19         (3) An alternative gas supplier shall clearly and
20     conspicuously disclose the following information to all
21     customers:
22             (A) the prices, terms, and conditions of the
23         products and services being sold to the customer;
24             (B) where the solicitation occurs in person,
25         including through door-to-door solicitation, the

 

 

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1         salesperson's name;
2             (C) the alternative gas supplier's contact
3         information, including the address, phone number, and
4         website;
5             (D) contact information for the Illinois Commerce
6         Commission, including the toll-free number for
7         consumer complaints and website;
8             (E) a statement of the customer's right to rescind
9         the offer within 10 business days of the date on the
10         utility's notice confirming the customer's decision to
11         switch suppliers, as well as phone numbers for the
12         supplier and utility that the consumer may use to
13         rescind the contract; and
14             (F) the amount of the early termination fee, if
15         any.
16         (4) Except as provided in paragraph (5) of this
17     subsection (c), an alternative gas supplier shall send the
18     information described in paragraph (3) of this subsection
19     (c) to all customers within one business day of the
20     authorization of a switch.
21         (5) An alternative gas supplier engaging in
22     door-to-door solicitation of consumers shall provide the
23     information described in paragraph (3) of this subsection
24     (c) during all door-to-door solicitations that result in a
25     customer deciding to switch their supplier.
26     (d) Customer Authorization. An alternative gas supplier

 

 

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

 

 

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

 

 

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

 

 

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1     other requirements of this paragraph (2) are satisfied. A
2     alternative gas supplier or alternative gas supplier's
3     sales representative initiating a 3-way conference call or
4     a call through an automated verification system must drop
5     off the call once the 3-way connection has been
6     established. All third-party verification methods shall
7     elicit, at a minimum, the following information:
8             (A) the identity of the customer;
9             (B) confirmation that the person on the call is
10         authorized to make the provider change;
11             (C) confirmation that the person on the call wants
12         to make the provider change;
13             (D) the names of the providers affected by the
14         change;
15             (E) the service address of the service to be
16         switched; and
17             (F) the price of the service to be provided and the
18         material terms and conditions of the service being
19         offered, including whether any early termination fees
20         apply.
21         Third-party verifiers may not market the alternative
22     gas supplier's services. All third-party verifications
23     shall be conducted in the same language that was used in
24     the underlying sales transaction and shall be recorded in
25     their entirety. Submitting alternative gas suppliers shall
26     maintain and preserve audio records of verification of

 

 

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

 

 

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

 

 

09500SB0171ham003 - 47 - LRB095 06643 AMC 54012 a

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

 

 

09500SB0171ham003 - 48 - LRB095 06643 AMC 54012 a

1     alternative gas supplier's sales agent, the alternative
2     gas supplier may only obtain the customer's authorization
3     to change natural gas service through the method provided
4     for in paragraph (2) of this subsection (d).
5     Alternative gas suppliers must be in compliance with the
6 provisions of this subsection (d) within 90 days after the
7 effective date of this amendatory Act of the 95th General
8 Assembly.
9     (e) Early Termination.
10         (1) Any agreement that contains an early termination
11     clause shall disclose the amount of the early termination
12     fee, provided that any early termination fee or penalty
13     shall not exceed $50 total, regardless of whether or not
14     the agreement is a multiyear agreement.
15         (2) In any agreement that contains an early termination
16     clause, an alternative gas supplier shall provide the
17     customer the opportunity to terminate the agreement
18     without any termination fee or penalty within 10 business
19     days after the date of the first bill issued to the
20     customer for products or services provided by the
21     alternative gas supplier. The agreement shall disclose the
22     opportunity and provide a toll-free phone number that the
23     customer may call in order to terminate the agreement.
24     (f) 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

 

 

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1 utility notice to the customer. The alternative gas supplier
2 shall disclose to the customer all of the following:
3         (1) that the gas utility shall send a notice confirming
4     the switch;
5         (2) that from the date the utility issues the notice
6     confirming the switch, the customer shall have 10 business
7     days before the switch will become effective;
8         (3) that the customer may contact the gas utility or
9     the alternative gas supplier to rescind the switch within
10     10 business days; and
11         (4) the contact information for the gas utility and the
12     alternative gas supplier.
13     The alternative gas supplier disclosure shall be included
14 in its sales solicitations, contracts, and all applicable sales
15 verification scripts.
16     (g) 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 505/2EEE new)
22     Sec. 2EEE. Natural gas service advertising. Any
23 advertisement for natural gas service that lists rates shall
24 clearly and conspicuously disclose all associated costs for
25 such service including, but not limited to, access fees and

 

 

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

 

 

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1 extent such alternative gas suppliers provide services to
2 residential and small commercial customers.
 
3     (815 ILCS 505/2GGG new)
4     Sec. 2GGG. Prohibition of prize promotions to solicit
5 authority to provide alternative natural gas service.
6     (a) It is an unfair or deceptive act or practice within the
7 meaning of Section 2 of this Act for any person to solicit
8 authority to execute a change of gas suppliers or to solicit
9 authority to provide any alternative gas service through the
10 use of any sweepstakes, contests, or drawings.
11     (b) Forms or documents used or intended to be used by
12 consumers to enter sweepstakes, contests, or drawings of any
13 description may not be used by any person as written authority
14 to execute a change of any person's gas supplier or to render
15 any gas supply service.
16     (c) 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     Section 99. Effective date. This Act takes effect upon
22 becoming law.".