Full Text of SB1299 95th General Assembly
SB1299ham004 95TH GENERAL ASSEMBLY
|
Rep. Thomas Holbrook
Filed: 8/3/2007
|
|
09500SB1299ham004 |
|
LRB095 03672 MJR 38420 a |
|
| 1 |
| AMENDMENT TO SENATE BILL 1299
| 2 |
| AMENDMENT NO. ______. Amend Senate Bill 1299, AS AMENDED, | 3 |
| by replacing everything after the enacting clause with the | 4 |
| following:
| 5 |
| "Section 5. The Public Utilities Act is amended by adding | 6 |
| Section 20-130 and by changing Sections 8-406, 8-503, and | 7 |
| 16-118 as follows:
| 8 |
| (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
| 9 |
| Sec. 8-406. Certificate of public convenience and | 10 |
| necessity.
| 11 |
| (a) No public utility not owning any city or village
| 12 |
| franchise nor engaged in performing any public service or in | 13 |
| furnishing any
product or commodity within this State as of | 14 |
| July 1, 1921 and not
possessing a certificate of
public | 15 |
| convenience and necessity from the Illinois Commerce | 16 |
| Commission,
the State Public Utilities Commission or
the Public |
|
|
|
09500SB1299ham004 |
- 2 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| Utilities Commission, at the time this amendatory Act of 1985 | 2 |
| goes
into effect, shall transact any business in this State | 3 |
| until it shall have
obtained a certificate from the Commission | 4 |
| that public convenience and
necessity require the transaction | 5 |
| of such business.
| 6 |
| (b) No public utility shall begin the construction of any | 7 |
| new plant,
equipment, property or facility which is not in | 8 |
| substitution of any
existing plant, equipment, property or | 9 |
| facility or any extension or
alteration thereof or in addition | 10 |
| thereto,
unless and until it shall have obtained from the
| 11 |
| Commission a certificate that public convenience and necessity | 12 |
| require such
construction. Whenever after a hearing the | 13 |
| Commission determines that any
new construction or the | 14 |
| transaction of any business by a public utility will
promote | 15 |
| the public convenience and is necessary thereto, it shall have | 16 |
| the
power to issue certificates of public convenience and | 17 |
| necessity. The
Commission shall determine that proposed | 18 |
| construction will promote the
public convenience and necessity | 19 |
| only if the utility demonstrates: (1) that the
proposed | 20 |
| construction is necessary to provide adequate, reliable, and
| 21 |
| efficient service to its customers and is the
least-cost means | 22 |
| of
satisfying the service needs of its customers or that the | 23 |
| proposed construction will promote the development of an | 24 |
| effectively competitive electricity market that operates | 25 |
| efficiently, is equitable to all customers, and is the least | 26 |
| cost means of satisfying those objectives ;
(2) that the utility |
|
|
|
09500SB1299ham004 |
- 3 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| is capable of efficiently managing and
supervising the | 2 |
| construction process and has taken sufficient action to
ensure | 3 |
| adequate and efficient construction and supervision thereof; | 4 |
| and (3)
that the utility is capable of financing the proposed | 5 |
| construction without
significant adverse financial | 6 |
| consequences for the utility or its
customers.
| 7 |
| (c) After the effective date of this amendatory Act of | 8 |
| 1987, no
construction shall commence on any new nuclear
power | 9 |
| plant to be located within this State, and no certificate of | 10 |
| public
convenience and necessity or other authorization shall | 11 |
| be issued therefor
by the Commission, until the Director of the | 12 |
| Illinois Environmental
Protection Agency finds that the United | 13 |
| States Government, through its
authorized agency, has | 14 |
| identified and approved a demonstrable technology or
means for | 15 |
| the disposal of high level nuclear waste, or until such
| 16 |
| construction has been specifically approved by a statute | 17 |
| enacted by the General
Assembly.
| 18 |
| As used in this Section, "high level nuclear waste" means | 19 |
| those aqueous
wastes resulting from the operation of the first | 20 |
| cycle of the solvent
extraction system or equivalent and the | 21 |
| concentrated wastes of the
subsequent extraction cycles or | 22 |
| equivalent in a facility for reprocessing
irradiated reactor | 23 |
| fuel and shall include spent fuel assemblies prior to
fuel | 24 |
| reprocessing.
| 25 |
| (d) In making its determination, the Commission shall | 26 |
| attach primary
weight to the cost or cost savings to the |
|
|
|
09500SB1299ham004 |
- 4 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| customers of the utility. The
Commission may consider any or | 2 |
| all factors which will or may affect such
cost or cost savings.
| 3 |
| (e) The Commission may issue a temporary certificate which | 4 |
| shall remain
in force not to exceed one year in cases of | 5 |
| emergency, to assure maintenance
of adequate service or to | 6 |
| serve particular customers, without notice or
hearing, pending | 7 |
| the determination of an application for a certificate, and
may | 8 |
| by regulation exempt from the requirements of this Section | 9 |
| temporary
acts or operations for which the issuance of a | 10 |
| certificate will not be
required in the public interest.
| 11 |
| A public utility shall not be required to obtain but may | 12 |
| apply for and
obtain a certificate of public convenience and | 13 |
| necessity pursuant to this
Section with respect to any matter | 14 |
| as to which it has received the
authorization or order of the | 15 |
| Commission under the Electric Supplier Act,
and any such | 16 |
| authorization or order granted a public utility by the
| 17 |
| Commission under that Act shall as between public utilities be | 18 |
| deemed to
be, and shall have except as provided in that Act the | 19 |
| same force and effect
as, a certificate of public convenience | 20 |
| and necessity issued pursuant to this
Section.
| 21 |
| No electric cooperative shall be made or shall become a | 22 |
| party to or shall
be entitled to be heard or to otherwise | 23 |
| appear or participate in any
proceeding initiated under this | 24 |
| Section for authorization of power plant
construction and as to | 25 |
| matters as to which a remedy is available under The
Electric | 26 |
| Supplier Act.
|
|
|
|
09500SB1299ham004 |
- 5 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| (f) Such certificates may be altered or modified by the | 2 |
| Commission, upon
its own motion or upon application by the | 3 |
| person or corporation affected.
Unless exercised within a | 4 |
| period of 2 years from the grant thereof
authority conferred by | 5 |
| a certificate of convenience and necessity issued by
the | 6 |
| Commission shall be null and void.
| 7 |
| No certificate of public convenience and necessity shall be | 8 |
| construed as
granting a monopoly or an exclusive privilege, | 9 |
| immunity or franchise.
| 10 |
| (Source: P.A. 90-561, eff. 12-16-97.)
| 11 |
| (220 ILCS 5/8-503) (from Ch. 111 2/3, par. 8-503)
| 12 |
| Sec. 8-503. Whenever the Commission, after a hearing, shall | 13 |
| find that
additions, extensions, repairs or improvements to, or | 14 |
| changes in, the
existing plant, equipment, apparatus, | 15 |
| facilities or other physical property
of any public utility or | 16 |
| of any 2 or more public utilities are
necessary
and ought | 17 |
| reasonably to be made or that a new structure or structures is | 18 |
| or
are necessary and should be erected, to promote the security | 19 |
| or convenience
of its employees or the public or promote the | 20 |
| development of an effectively competitive electricity market , | 21 |
| or in any other way to secure adequate
service or facilities, | 22 |
| the Commission shall make and serve an order
authorizing or | 23 |
| directing that such additions, extensions, repairs,
| 24 |
| improvements or changes be made, or such structure or | 25 |
| structures be erected
at the location, in the manner and within |
|
|
|
09500SB1299ham004 |
- 6 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| the time specified in said order;
provided, however, that the
| 2 |
| Commission shall have no authority to order the construction,
| 3 |
| addition or extension of any electric generating plant unless
| 4 |
| the public utility requests a certificate for the construction
| 5 |
| of the plant pursuant to Section 8-406 and in conjunction with
| 6 |
| such request also requests the entry of an order under this
| 7 |
| Section.
If any additions, extensions, repairs, improvements | 8 |
| or changes, or any new
structure or structures, which the | 9 |
| Commission has authorized or ordered to
be erected, require | 10 |
| joint action by 2 or more public utilities, the
Commission | 11 |
| shall notify the said public utilities that such additions,
| 12 |
| extensions, repairs, improvements or changes or new structure | 13 |
| or structures
have been authorized or ordered and that the same | 14 |
| shall be made at the
joint cost whereupon the said public | 15 |
| utilities shall have such reasonable
time as the Commission may | 16 |
| grant within which to agree upon the
apportionment or division | 17 |
| of cost of such additions, extensions, repairs,
improvements or | 18 |
| changes or new structure or structures, which each shall
bear. | 19 |
| If at the expiration of such time such public utilities shall | 20 |
| fail to
file with the Commission a statement that an agreement | 21 |
| has been made for a
division or apportionment of the cost or | 22 |
| expense of such additions,
extensions, repairs, improvements | 23 |
| or changes, or new structure or
structures, the Commission | 24 |
| shall have authority, after further hearing, to
make an order | 25 |
| fixing the proportion of such cost or expense to be borne by
| 26 |
| each public utility and the manner in which the same shall be |
|
|
|
09500SB1299ham004 |
- 7 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| paid or secured.
| 2 |
| Nothing in this Act shall prevent the Commission, upon its | 3 |
| own motion
or upon petition, from ordering, after a hearing, | 4 |
| the extension, construction,
connection or interconnection of | 5 |
| plant, equipment, pipe, line, facilities
or other physical | 6 |
| property of a public utility in whatever configuration the
| 7 |
| Commission finds necessary to ensure that natural gas is made | 8 |
| available to
consumers at no increased cost to the customers of | 9 |
| the utility supplying the gas.
| 10 |
| Whenever the Commission finds, after a hearing, that the | 11 |
| public convenience
or necessity requires it, the Commission may | 12 |
| order public utilities subject
to its jurisdiction to work | 13 |
| jointly (1) for the purpose of purchasing and
distributing | 14 |
| natural gas or gas substitutes, provided it shall not increase
| 15 |
| the cost of gas to the customers of the participating | 16 |
| utilities, or (2) for
any other reasonable purpose.
| 17 |
| (Source: P.A. 90-561, eff. 12-16-97.)
| 18 |
| (220 ILCS 5/16-118)
| 19 |
| Sec. 16-118. Services provided by electric utilities to
| 20 |
| alternative retail electric suppliers.
| 21 |
| (a) It is in the best interest of Illinois energy
consumers | 22 |
| to promote fair and open competition in the
provision of | 23 |
| electric power and energy and to prevent
anticompetitive | 24 |
| practices in the provision of electric power
and energy.
| 25 |
| Therefore, to the extent an electric utility provides electric |
|
|
|
09500SB1299ham004 |
- 8 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| power and energy
or delivery services to alternative retail | 2 |
| electric suppliers and such services
are not subject to the | 3 |
| jurisdiction of the Federal Energy
Regulatory Commission, and | 4 |
| are not competitive services, they
shall be provided through | 5 |
| tariffs that are filed with the
Commission, pursuant to Article | 6 |
| IX of this Act.
Each electric utility shall permit alternative
| 7 |
| retail electric suppliers to interconnect facilities to those
| 8 |
| owned by the utility provided they meet established standards
| 9 |
| for such interconnection, and may provide standby or other
| 10 |
| services to alternative retail electric suppliers. The
| 11 |
| alternative retail electric supplier shall sign a contract
| 12 |
| setting forth the prices, terms and conditions for
| 13 |
| interconnection with the electric utility and the prices,
terms | 14 |
| and conditions for services provided by the electric
utility to | 15 |
| the alternative retail electric supplier in
connection with the | 16 |
| delivery by the electric utility of
electric power and energy | 17 |
| supplied by the alternative retail
electric supplier.
| 18 |
| (b) An electric utility shall file a tariff pursuant to | 19 |
| Article IX of the
Act that would allow alternative retail | 20 |
| electric suppliers or electric
utilities other than the | 21 |
| electric utility in whose service area retail
customers are
| 22 |
| located to issue single bills to the retail customers for both | 23 |
| the services
provided by such alternative retail electric | 24 |
| supplier or other electric utility
and the delivery services | 25 |
| provided by the electric utility to such customers.
The tariff | 26 |
| filed pursuant to this subsection shall (i) require partial |
|
|
|
09500SB1299ham004 |
- 9 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| payments
made by retail customers to be credited first to the | 2 |
| electric utility's
tariffed services, (ii) impose commercially | 3 |
| reasonable terms with respect to
credit and collection, | 4 |
| including requests for deposits, (iii) retain the
electric | 5 |
| utility's right to disconnect the retail customers, if it does | 6 |
| not
receive payment for its tariffed services, in the same | 7 |
| manner that it would be
permitted to if it had billed for the | 8 |
| services itself, and (iv) require the
alternative retail | 9 |
| electric supplier or other electric utility that elects the
| 10 |
| billing option provided by this tariff to include on each bill | 11 |
| to retail
customers an identification of the electric utility | 12 |
| providing the delivery
services and a listing of the charges | 13 |
| applicable to such services. The tariff
filed pursuant to this | 14 |
| subsection may also include other just and reasonable
terms and | 15 |
| conditions. In addition,
an electric utility, an alternative | 16 |
| retail electric
supplier or electric utility other than the | 17 |
| electric utility
in whose service area the customer is located, | 18 |
| and a customer
served by such alternative retail electric | 19 |
| supplier or other
electric utility, may enter into an agreement | 20 |
| pursuant to
which the alternative retail electric supplier or | 21 |
| other
electric utility pays the charges specified in Section | 22 |
| 16-108,
or other customer-related charges, including taxes and | 23 |
| fees,
in lieu of such charges being recovered by the electric
| 24 |
| utility directly from the customer. | 25 |
| (c) An electric utility with more than 100,000 customers | 26 |
| shall file a tariff pursuant to Article IX of this Act that |
|
|
|
09500SB1299ham004 |
- 10 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| provides alternative retail electric suppliers, and electric | 2 |
| utilities other than the electric utility in whose service area | 3 |
| the retail customers are located with the option to have the | 4 |
| electric utility purchase their receivables for power and | 5 |
| energy service provided to residential retail customers and | 6 |
| non-residential retail customers with a non-coincident peak | 7 |
| demand of less than 400 kilowatts. Receivables for power and | 8 |
| energy service of alternative retail electric suppliers or | 9 |
| electric utilities other than the electric utility in whose | 10 |
| service area the retail customers are located shall be | 11 |
| purchased by the electric utility at a just and reasonable | 12 |
| discount rate to be reviewed and approved by the Commission | 13 |
| after notice and hearing. The discount rate shall be based on | 14 |
| the electric utility's historical bad debt and any reasonable | 15 |
| start-up costs and administrative costs associated with the | 16 |
| electric utility's purchase of receivables. The discounted | 17 |
| rate for purchase of receivables shall be included in the | 18 |
| tariff filed pursuant to this subsection (c). The discount rate | 19 |
| filed pursuant to this subsection (c) shall be subject to | 20 |
| periodic Commission review. The electric utility retains the | 21 |
| right to impose the same terms on retail customers with respect | 22 |
| to credit and collection, including requests for deposits, and | 23 |
| retain the electric utility's right to disconnect the retail | 24 |
| customers, if it does not receive payment for its tariffed | 25 |
| services or purchased receivables, in the same manner that it | 26 |
| would be permitted to if the retail customers purchased power |
|
|
|
09500SB1299ham004 |
- 11 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| and energy from the electric utility. The tariff filed pursuant | 2 |
| to this subsection (c) shall permit the electric utility to | 3 |
| recover from retail customers any uncollected receivables that | 4 |
| may arise as a result of the purchase of receivables under this | 5 |
| subsection (c), may also include other just and reasonable | 6 |
| terms and conditions, and shall provide for the prudently | 7 |
| incurred costs associated with the provision of this service | 8 |
| pursuant to this subsection (c). Nothing in this subsection (c) | 9 |
| permits the double recovery of bad debt expenses from | 10 |
| customers. | 11 |
| (d) An electric utility with more than 100,000 customers | 12 |
| shall file a tariff pursuant to Article IX of this Act that | 13 |
| would provide alternative retail electric suppliers or | 14 |
| electric utilities other than the electric utility in whose | 15 |
| service area retail customers are located with the option to | 16 |
| have the electric utility produce and provide single bills to | 17 |
| the retail customers for both the electric power and energy | 18 |
| service provided by the alternative retail electric supplier or | 19 |
| other electric utility and the delivery services provided by | 20 |
| the electric utility to the customers. The tariffs filed | 21 |
| pursuant to this subsection shall require the electric utility | 22 |
| to collect and remit customer payments for electric power and | 23 |
| energy service provided by alternative retail electric | 24 |
| suppliers or electric utilities other than the electric utility | 25 |
| in whose service area retail customers are located. The tariff | 26 |
| filed pursuant to this subsection shall require the electric |
|
|
|
09500SB1299ham004 |
- 12 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| utility to include on each bill to retail customers an | 2 |
| identification of the alternative retail electric supplier or | 3 |
| other electric utility that elects the billing option. The | 4 |
| tariff filed pursuant to this subsection (d) may also include | 5 |
| other just and reasonable terms and conditions and shall | 6 |
| provide for the recovery of prudently incurred costs associated | 7 |
| with the provision of service pursuant to this subsection (d). | 8 |
| The costs associated with the provision of service pursuant to | 9 |
| this section shall be subject to periodic Commission review.
| 10 |
| (e) An electric utility with more than 100,000 customers in | 11 |
| this State shall file a tariff pursuant to Article IX of this | 12 |
| Act that provides alternative retail electric suppliers, and | 13 |
| electric utilities other than the electric utility in whose | 14 |
| service area the retail customers are located, with the option | 15 |
| to have the electric utility purchase 2 billing cycles worth of | 16 |
| uncollectible receivables for power and energy service | 17 |
| provided to residential retail customers and to | 18 |
| non-residential retail customers with a non-coincident peak | 19 |
| demand of less than 400 kilowatts upon returning that customer | 20 |
| to that electric utility for delivery and energy service after | 21 |
| that alternative retail electric supplier, or an electric | 22 |
| utility other than the electric utility in whose service area | 23 |
| the retail customer is located, has made reasonable collection | 24 |
| efforts on that account. Uncollectible receivables for power | 25 |
| and energy service of alternative retail electric suppliers, or | 26 |
| electric utilities other than the electric utility in whose |
|
|
|
09500SB1299ham004 |
- 13 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| service area the retail customers are located, shall be | 2 |
| purchased by the electric utility at a just and reasonable | 3 |
| discount rate to be reviewed and approved by the Commission, | 4 |
| after notice and hearing. The discount rate shall be based on | 5 |
| the electric utility's historical bad debt for receivables that | 6 |
| are outstanding for a similar length of time and any reasonable | 7 |
| start-up costs and administrative costs associated with the | 8 |
| electric utility's purchase of receivables. The discounted | 9 |
| rate for purchase of uncollectible receivables shall be | 10 |
| included in the tariff filed pursuant to this subsection (e). | 11 |
| The electric utility retains the right to impose the same terms | 12 |
| on these retail customers with respect to credit and | 13 |
| collection, including requests for deposits, and retains the | 14 |
| right to disconnect these retail customers, if it does not | 15 |
| receive payment for its tariffed services or purchased | 16 |
| receivables, in the same manner that it would be permitted to | 17 |
| if the retail customers had purchased power and energy from the | 18 |
| electric utility. The tariff filed pursuant to this subsection | 19 |
| (e) shall permit the electric utility to recover from retail | 20 |
| customers any uncollectable receivables that may arise as a | 21 |
| result of the purchase of uncollectible receivables under this | 22 |
| subsection (e), may also include other just and reasonable | 23 |
| terms and conditions, and shall provide for the prudently | 24 |
| incurred costs associated with the provision of this service | 25 |
| pursuant to this subsection (e). Nothing in this subsection (e) | 26 |
| permits the double recovery of utility bad debt expenses from |
|
|
|
09500SB1299ham004 |
- 14 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| customers. The electric utility may file a joint tariff for | 2 |
| this subsection (e) and subsection (c) of this Section.
| 3 |
| (Source: P.A. 90-561, eff. 12-16-97.)
| 4 |
| (220 ILCS 5/20-130 new) | 5 |
| Sec. 20-130. Retail choice and referral programs. | 6 |
| (a) The Commission shall have the authority to establish | 7 |
| retail choice and referral programs to be administered by an | 8 |
| electric utility or the State in which residential and small | 9 |
| commercial customers receive incentives, including, but not | 10 |
| limited to, discounted rate introductory offers for switching | 11 |
| to participating electric suppliers. | 12 |
| (b) Reasonable costs associated with the implementation | 13 |
| and operation of customer choice and referral programs may be | 14 |
| recovered in an electric utility's distribution rates, except | 15 |
| that any costs associated with any introductory discount for | 16 |
| switching to a supplier shall be assumed by that supplier. | 17 |
| Reasonable costs associated with the implementation and | 18 |
| operation of a customer choice program may also be recovered | 19 |
| from retail electric suppliers participating in a customer | 20 |
| choice and referral program. In no event, however, shall the | 21 |
| Commission mandate a cost recovery mechanism without first | 22 |
| providing all interested parties notice and an opportunity to | 23 |
| be heard in a hearing before the Commission. | 24 |
| (c) The Office of Retail Market Development shall serve as | 25 |
| the clearinghouse for the development of retail choice and |
|
|
|
09500SB1299ham004 |
- 15 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| referral programs and shall work with electric utilities and | 2 |
| interested parties on a continuous basis to implement and | 3 |
| improve upon the programs. Nothing in this Section, however, | 4 |
| shall prevent an electric utility on its own accord from | 5 |
| implementing retail choice and referral programs. | 6 |
| (d) Only customers that qualify for utility service shall | 7 |
| be eligible for retail choice and referral programs. | 8 |
| (e) The Office of Retail Market Development shall | 9 |
| immediately upon the effective date of this amendatory Act of | 10 |
| the 95th General Assembly explore for possible implementation | 11 |
| on as expedited a basis as possible the following retail choice | 12 |
| and referral programs: | 13 |
| (1) An introductory fixed discount program in which | 14 |
| suppliers participating in the program offer customers a | 15 |
| fixed percentage discount off of the electric utility's | 16 |
| supply rate for a set number of billing periods. Customers | 17 |
| would be able to enroll in the program by using an online | 18 |
| enrollment form, completing an enrollment card found in | 19 |
| their monthly electric utility bill, or by calling a | 20 |
| toll-free number. Customers would be free to withdraw from | 21 |
| the program at any time and select another alternative | 22 |
| retail electric supplier or return to the electric utility. | 23 |
| (2) A new customer program in which electric utilities | 24 |
| would offer consumers initiating new electric service a | 25 |
| choice of offers from participating electric suppliers to | 26 |
| provide the consumer's electric supply service. Customers |
|
|
|
09500SB1299ham004 |
- 16 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| expressing a preference for a specific electric supplier | 2 |
| would be enrolled with that supplier. Customers not | 3 |
| expressing a preference for a specific electric supplier | 4 |
| would be offered the opportunity to enroll with an electric | 5 |
| supplier selected randomly on a rotating basis. | 6 |
| (3) A customer service call center referral program in | 7 |
| which customers calling an electric utility's call center | 8 |
| would be offered enrollment with an alternative retail | 9 |
| electric supplier and informed that they have the option to | 10 |
| receive immediate savings or introductory offers by | 11 |
| participating in the referral program. Customers choosing | 12 |
| to participate would be transferred to a customer service | 13 |
| representative for the program and would either select the | 14 |
| electric supplier from which they would like to take | 15 |
| service or be placed with a participating electric supplier | 16 |
| chosen at random on a rotating basis.
| 17 |
| Nothing in this Section shall prevent the Office of Retail | 18 |
| Market Development or the Commission from considering retail | 19 |
| choice and referral programs in addition to the programs | 20 |
| outlined in this Section.
| 21 |
| Section 10. The Consumer Fraud and Deceptive Business | 22 |
| Practices Act is amended by changing Section 2EE as follows:
| 23 |
| (815 ILCS 505/2EE)
| 24 |
| Sec. 2EE. Electric service provider selection. An electric |
|
|
|
09500SB1299ham004 |
- 17 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| service provider shall not submit or execute
a change in a | 2 |
| subscriber's selection of a provider of electric
service unless | 3 |
| and until (i) the provider first discloses all material terms | 4 |
| and conditions of the offer to the subscriber; (ii) the | 5 |
| provider has obtained the subscriber's express agreement to | 6 |
| accept the offer after the disclosure of all material terms and | 7 |
| conditions of the offer; and (iii) the provider has confirmed | 8 |
| the request for a change in accordance with one of the | 9 |
| following procedures
except as follows :
| 10 |
| (a) The new electric service provider has obtained the
| 11 |
| subscriber's
customer's written or electronically signed
| 12 |
| authorization in a form that meets the
following requirements:
| 13 |
| (1) An electric service provider shall obtain any
| 14 |
| necessary written authorization from a subscriber for a
| 15 |
| change in electric service by using a letter of agency as
| 16 |
| specified in this
Section. Any letter of agency that does
| 17 |
| not conform with this
Section is invalid.
| 18 |
| (2) The letter of agency shall be a separate
document | 19 |
| (an easily separable document containing only
the | 20 |
| authorization language described in subparagraph (a) (5)
of | 21 |
| this
Section) whose sole purpose is to authorize an
| 22 |
| electric service provider change. The letter of agency
must | 23 |
| be signed and dated by the subscriber requesting the
| 24 |
| electric service provider change.
| 25 |
| (3) The letter of agency shall not be combined with
| 26 |
| inducements of any kind on the same document.
|
|
|
|
09500SB1299ham004 |
- 18 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| (4) Notwithstanding subparagraphs (a) (1) and (a) (2) of
| 2 |
| this
Section, the letter of agency may be combined with
| 3 |
| checks that contain only the required letter of agency
| 4 |
| language prescribed in subparagraph (a)(5)
paragraph (5)
| 5 |
| of this Section and
the necessary information to make the | 6 |
| check a negotiable
instrument. The letter of agency check | 7 |
| shall not contain
any promotional language or material. The | 8 |
| letter of
agency check shall contain in easily readable, | 9 |
| bold-face
type on the face of the check, a notice that the | 10 |
| consumer
is authorizing an electric service provider | 11 |
| change by
signing the check. The letter of agency language | 12 |
| also
shall be placed near the signature line on the back of
| 13 |
| the check.
| 14 |
| (5) At a minimum, the letter of agency must be
printed | 15 |
| with a print of sufficient size to be clearly
legible, and | 16 |
| must contain clear and unambiguous language
that confirms:
| 17 |
| (i) The subscriber's billing name and address;
| 18 |
| (ii) The decision to change the electric service
| 19 |
| provider from the current provider to the
prospective | 20 |
| provider;
| 21 |
| (iii) The terms, conditions, and nature of the
| 22 |
| service to be provided to the subscriber must be
| 23 |
| clearly and conspicuously disclosed, in writing, and
| 24 |
| an electric service provider must directly establish
| 25 |
| the rates for the service contracted for by the
| 26 |
| subscriber; and
|
|
|
|
09500SB1299ham004 |
- 19 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| (iv) That the subscriber understand that any
| 2 |
| electric service provider selection the subscriber
| 3 |
| chooses may involve a charge to the subscriber for
| 4 |
| changing the subscriber's electric service provider.
| 5 |
| (6) Letters of agency shall not suggest or require
that | 6 |
| a subscriber take some action in order to retain the
| 7 |
| subscriber's current electric service provider.
| 8 |
| (7) If any portion of a letter of agency is
translated | 9 |
| into another language, then all portions of
the letter of | 10 |
| agency must be translated into that
language.
| 11 |
| (b) An appropriately qualified independent third party has | 12 |
| obtained, in accordance with the procedures set forth in this | 13 |
| subsection (b), the subscriber's oral authorization to change | 14 |
| electric suppliers that confirms and includes appropriate | 15 |
| verification data. The independent third party (i) must not be | 16 |
| owned, managed, controlled, or directed by the supplier or the | 17 |
| supplier's marketing agent; (ii) must not have any financial | 18 |
| incentive to confirm supplier change requests for the supplier | 19 |
| or the supplier's marketing agent; and (iii) must operate in a | 20 |
| location physically separate from the supplier or the | 21 |
| supplier's marketing agent.
| 22 |
| Automated third-party verification systems and 3-way | 23 |
| conference calls may be used for verification purposes so long | 24 |
| as the other requirements of this subsection (b) are satisfied. | 25 |
| A supplier or supplier's sales representative initiating a | 26 |
| 3-way conference call or a call through an automated |
|
|
|
09500SB1299ham004 |
- 20 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| verification system must drop off the call once the 3-way | 2 |
| connection has been established. | 3 |
| All third-party verification methods shall elicit, at a | 4 |
| minimum, the following information: (i) the identity of the | 5 |
| subscriber; (ii) confirmation that the person on the call is | 6 |
| authorized to make the supplier change; (iii) confirmation that | 7 |
| the person on the call wants to make the supplier change; (iv) | 8 |
| the names of the suppliers affected by the change; (v) the | 9 |
| service address of the supply to be switched; and (vi) the | 10 |
| price of the service to be supplied and the material terms and | 11 |
| conditions of the service being offered, including whether any | 12 |
| early termination fees apply. Third-party verifiers may not | 13 |
| market the supplier's services by providing additional | 14 |
| information, including information regarding procedures to | 15 |
| block or otherwise freeze an account against further changes. | 16 |
| All third-party verifications shall be conducted in the | 17 |
| same language that was used in the underlying sales transaction | 18 |
| and shall be recorded in their entirety. Submitting suppliers | 19 |
| shall maintain and preserve audio records of verification of | 20 |
| subscriber authorization for a minimum period of 2 years after | 21 |
| obtaining the verification. Automated systems must provide | 22 |
| consumers with an option to speak with a live person at any | 23 |
| time during the call.
| 24 |
| (c) When a subscriber initiates the call to the prospective | 25 |
| electric supplier and the prospective electric supplier has, | 26 |
| with the consent of the customer, made a date-stamped and |
|
|
|
09500SB1299ham004 |
- 21 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| time-stamped audio recording that elicits, at a minimum, the | 2 |
| following information: | 3 |
| (1) the identity of the subscriber; | 4 |
| (2) confirmation that the person on the call is | 5 |
| authorized to make the supplier change; | 6 |
| (3) confirmation that the person on the call wants to | 7 |
| make the supplier change; | 8 |
| (4) the names of the suppliers affected by the change; | 9 |
| (5) the service address of the supply to be switched; | 10 |
| and | 11 |
| (6) the price of the service to be supplied and the | 12 |
| material terms and conditions of the service being offered, | 13 |
| including whether any early termination fees apply.
| 14 |
| Submitting suppliers shall maintain and preserve the audio | 15 |
| records containing the information set forth above for a | 16 |
| minimum period of 2 years.
| 17 |
| (d) Complaints may be filed with the Illinois Commerce | 18 |
| Commission under this Section by a subscriber whose electric | 19 |
| service has been provided by an electric service supplier in a | 20 |
| manner not in compliance with this Section. If, after notice | 21 |
| and hearing, the Commission finds that an electric service | 22 |
| provider has violated this Section, the Commission may in its | 23 |
| discretion do any one or more of the following: | 24 |
| (1) Require the violating electric service provider to | 25 |
| refund to the subscriber charges collected in excess of | 26 |
| those that would have been charged by the subscriber's |
|
|
|
09500SB1299ham004 |
- 22 - |
LRB095 03672 MJR 38420 a |
|
| 1 |
| authorized electric service provider. | 2 |
| (2) Require the violating electric service provider to | 3 |
| pay to the subscriber's authorized electric supplier the | 4 |
| amount the authorized electric supplier would have | 5 |
| collected for the electric service. The Commission is | 6 |
| authorized to reduce this payment by any amount already | 7 |
| paid by the violating electric supplier to the subscriber's | 8 |
| authorized provider for electric service. | 9 |
| (3) Require the violating electric subscriber to pay a | 10 |
| fine of up to $1,000 into the Public Utility Fund for each | 11 |
| repeated and intentional violation of this Section. | 12 |
| (4) Issue a cease and desist order. | 13 |
| (5) For a pattern of violation of this Section or for | 14 |
| intentionally violating a cease and desist order, revoke | 15 |
| the violating provider's certificate of service authority.
| 16 |
| (e) For purposes of this
Section, "electric service | 17 |
| provider"
shall have the meaning given that phrase in
Section | 18 |
| 6.5 of the
Attorney General Act.
| 19 |
| (Source: P.A. 90-561, eff. 12-16-97.)
| 20 |
| Section 99. Effective date. This Act takes effect upon | 21 |
| becoming law.".
|
|