SB1531ham004 100TH GENERAL ASSEMBLY

Rep. Gregory Harris

Filed: 5/24/2018

 

 


 

 


 
10000SB1531ham004LRB100 05772 AMC 40760 a

1
AMENDMENT TO SENATE BILL 1531

2    AMENDMENT NO. ______. Amend Senate Bill 1531 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Public Utilities Act is amended by changing
5Sections 16-115A, 16-118, 19-115, 19-130, 19-135, and 20-110
6and by adding Sections 16-115E and 19-116 as follows:
 
7    (220 ILCS 5/16-115A)
8    Sec. 16-115A. Obligations of alternative retail electric
9suppliers.
10    (a) An alternative retail electric supplier shall:
11        (i) shall comply with the requirements imposed on
12    public utilities by Sections 8-201 through 8-207, 8-301,
13    8-505 and 8-507 of this Act, to the extent that these
14    Sections have application to the services being offered by
15    the alternative retail electric supplier; and
16        (ii) shall continue to comply with the requirements for

 

 

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1    certification stated in subsection (d) of Section 16-115; .
2        (iii) on January 1, 2019, and every first day of each
3    quarter thereafter, shall submit to the Commission and the
4    Office of the Attorney General the rates the retail
5    electric supplier charged to residential customers in the
6    prior quarter, including each distinct rate charged and
7    whether the rate was a fixed or variable rate, the basis
8    for the variable rate, and any fees charged in addition to
9    the supply rate, including monthly fees, flat fees, or
10    other service charges;
11        (iv) shall make publicly available on its website,
12    without the need for a customer login, rate information for
13    all of its variable, time-of-use, and fixed rate contracts
14    currently available to residential customers, including,
15    but not limited to, fixed monthly charges, early
16    termination charges, and kilowatt-hour charges;
17        (v) no less than 30 days but no more than 60 days
18    before a residential customer's price per kilowatt hour or
19    other charge changes, shall send a separate written notice
20    by United States Mail or electronic mail, as specified by
21    the residential customer, addressed to the residential
22    customer informing the residential customer of the
23    upcoming change in price or other charge; the changed price
24    per kilowatt hour or other charge shall be included in the
25    notice and shall not require the residential customer to
26    visit or log on to a website to obtain the change in price

 

 

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1    or other charge; the telephone number and email address to
2    contact the supplier shall be included in the notice; and
3        (vi) shall not automatically renew a contract with a
4    residential customer at a rate higher than the initial term
5    of the contract or automatically change or renew a fixed
6    rate contract to a variable rate contract. A residential
7    customer may agree to a contract renewal at a rate higher
8    than the initial term of the contract if the notice
9    requirements in paragraph (v) have been met and the
10    residential customer expressly consents to the contract
11    renewal in writing or by an electronic signature. A
12    residential customer may void a variable rate contract
13    unless the residential customer received a disclosure
14    showing the prior 12 months of charges under the variable
15    rate contract and the disclosures required by paragraph (i)
16    of subsection (e) before expressly consenting to the
17    contract renewal.
18    (b) An alternative retail electric supplier shall obtain
19verifiable authorization from a customer, in a form or manner
20approved by the Commission consistent with Section 2EE of the
21Consumer Fraud and Deceptive Business Practices Act, before the
22customer is switched from another supplier.
23    (c) No alternative retail electric supplier, or electric
24utility other than the electric utility in whose service area a
25customer is located, shall (i) enter into or employ any
26arrangements which have the effect of preventing a retail

 

 

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1customer with a maximum electrical demand of less than one
2megawatt from having access to the services of the electric
3utility in whose service area the customer is located or (ii)
4charge retail customers for such access. This subsection shall
5not be construed to prevent an arms-length agreement between a
6supplier and a retail customer that sets a term of service,
7notice period for terminating service and provisions governing
8early termination through a tariff or contract as allowed by
9Section 16-119.
10    (d) An alternative retail electric supplier that is
11certified to serve residential or small commercial retail
12customers shall not:
13        (1) deny service to a customer or group of customers
14    nor establish any differences as to prices, terms,
15    conditions, services, products, facilities, or in any
16    other respect, whereby such denial or differences are based
17    upon race, gender or income, except as provided in Section
18    16-115E.
19        (2) deny service to a customer or group of customers
20    based on locality nor establish any unreasonable
21    difference as to prices, terms, conditions, services,
22    products, or facilities as between localities.
23    (e) An alternative retail electric supplier shall comply
24with the following requirements with respect to the marketing,
25offering and provision of products or services to residential
26and small commercial retail customers:

 

 

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1        (i) All Any marketing materials, including electronic
2    marketing materials, in-person solicitations, and
3    telephone solicitations, which make statements concerning
4    prices, terms and conditions of service shall contain
5    information that adequately discloses the prices, terms
6    and conditions of the products or services that the
7    alternative retail electric supplier is offering or
8    selling to the customer and shall contain the Historical
9    Prices to Compare from the immediately preceding 12 months
10    as displayed on the Plug-In Illinois website maintained by
11    the Illinois Commerce Commission. The disclosure may group
12    months during which the price to compare was unchanged and
13    may include more than 12 months if the immediately
14    preceding 12 months are included. All marketing materials,
15    including, but not limited to, electronic marketing
16    materials, in-person solicitations, and telephone
17    solicitations, shall include the following statement:
18    "(Name of alternative retail electric supplier) is not the
19    same entity as your electric utility delivery company. You
20    are not required to enroll with (name of alternative retail
21    electric supplier). For information on comparison rates
22    for utility electric supply service and understanding your
23    electric supply choices, go to the Illinois Commerce
24    Commission's free website at www.pluginillinois.org.".
25    This paragraph (i) does not apply to goodwill or
26    institutional advertising.

 

 

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1        (ii) Before any customer is switched from another
2    supplier, the alternative retail electric supplier shall
3    give the customer written information that adequately
4    discloses, in plain language, the prices, terms and
5    conditions of the products and services being offered and
6    sold to the customer.
7        (iii) An alternative retail electric supplier shall
8    provide documentation to the Commission and to customers
9    that substantiates any claims made by the alternative
10    retail electric supplier regarding the technologies and
11    fuel types used to generate the electricity offered or sold
12    to customers.
13        (iv) The alternative retail electric supplier shall
14    provide to the customer (1) itemized billing statements
15    that describe the products and services provided to the
16    customer and their prices, and (2) an additional statement,
17    at least annually, that adequately discloses the average
18    monthly prices, and the terms and conditions, of the
19    products and services sold to the customer.
20    (f) An alternative retail electric supplier may limit the
21overall size or availability of a service offering by
22specifying one or more of the following: a maximum number of
23customers, maximum amount of electric load to be served, time
24period during which the offering will be available, or other
25comparable limitation, but not including the geographic
26locations of customers within the area which the alternative

 

 

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1retail electric supplier is certificated to serve. The
2alternative retail electric supplier shall file the terms and
3conditions of such service offering including the applicable
4limitations with the Commission prior to making the service
5offering available to customers.
6    (g) Nothing in this Section shall be construed as
7preventing an alternative retail electric supplier, which is an
8affiliate of, or which contracts with, (i) an industry or trade
9organization or association, (ii) a membership organization or
10association that exists for a purpose other than the purchase
11of electricity, or (iii) another organization that meets
12criteria established in a rule adopted by the Commission, from
13offering through the organization or association services at
14prices, terms and conditions that are available solely to the
15members of the organization or association.
16(Source: P.A. 90-561, eff. 12-16-97.)
 
17    (220 ILCS 5/16-115E new)
18    Sec. 16-115E. Alternative retail electric supplier;
19utility assistance recipient.
20    (a) Beginning 90 days after the effective date of this
21amendatory Act of the 100th General Assembly, no customer who
22has received financial assistance within the preceding 12
23months from the Low Income Home Energy Assistance Program or
24the Percentage of Income Payment Plan shall be switched to an
25alternative retail electric supplier, unless: (1) the customer

 

 

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1is switched pursuant to a government aggregation program
2adopted in accordance with Section 1-92 of the Illinois Power
3Agency Act if the government aggregation program does not
4charge a supply charge that exceeds the public utility supply
5price, which is determined by comparing the total supply charge
6from the government aggregation program with the total supply
7charge that would apply to the customer for the billing period
8if the customer obtained supply from the utility; or (2) the
9customer is switched to a Commission-approved savings
10guarantee plan as described in subsection (b).
11    (b) Beginning January 1, 2020, an alternative retail
12electric supplier may apply to the Commission to offer a
13savings guarantee plan to recipients of Low Income Home Energy
14Assistance Program funding or Percentage of Income Payment Plan
15funding. The Commission shall initiate a public, docketed
16proceeding to consider whether or not to approve an alternative
17retail electric supplier's application to offer a savings
18guarantee plan. At a minimum, the savings guarantee plan shall
19charge customers for electric supply an amount that is less
20than the amount the public utility charges for electric supply.
21The Commission shall adopt rules to implement this subsection.
22    (c) An agreement entered into between an alternative retail
23electric supplier and a customer in violation of this Section
24is void and unenforceable. If an alternative retail electric
25supplier attempts to enroll a customer in violation of this
26Section, the electric utility shall deny the supplier switch

 

 

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

 

 

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

 

 

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1retail electric supplier or electric utility other than the
2electric utility in whose service area the customer is located,
3and a customer served by such alternative retail electric
4supplier or other electric utility, may enter into an agreement
5pursuant to which the alternative retail electric supplier or
6other electric utility pays the charges specified in Section
716-108, or other customer-related charges, including taxes and
8fees, in lieu of such charges being recovered by the electric
9utility directly from the customer.
10    (c) An electric utility with more than 100,000 customers
11shall file a tariff pursuant to Article IX of this Act that
12provides alternative retail electric suppliers, and electric
13utilities other than the electric utility in whose service area
14the retail customers are located, with the option to have the
15electric utility purchase their receivables for power and
16energy service provided to residential retail customers and
17non-residential retail customers with a non-coincident peak
18demand of less than 400 kilowatts. Receivables for power and
19energy service of alternative retail electric suppliers or
20electric utilities other than the electric utility in whose
21service area the retail customers are located shall be
22purchased by the electric utility at a just and reasonable
23discount rate to be reviewed and approved by the Commission
24after notice and hearing. The discount rate shall be based on
25the electric utility's historical bad debt and any reasonable
26start-up costs and administrative costs associated with the

 

 

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1electric utility's purchase of receivables. The discounted
2rate for purchase of receivables shall be included in the
3tariff filed pursuant to this subsection (c). The discount rate
4filed pursuant to this subsection (c) shall be subject to
5periodic Commission review. The electric utility retains the
6right to impose the same terms on retail customers with respect
7to credit and collection, including requests for deposits, and
8retain the electric utility's right to disconnect the retail
9customers, if it does not receive payment for its tariffed
10services or purchased receivables, in the same manner that it
11would be permitted to if the retail customers purchased power
12and energy from the electric utility. The tariff filed pursuant
13to this subsection (c) shall permit the electric utility to
14recover from retail customers any uncollected receivables that
15may arise as a result of the purchase of receivables under this
16subsection (c), may also include other just and reasonable
17terms and conditions, and shall provide for the prudently
18incurred costs associated with the provision of this service
19pursuant to this subsection (c). Nothing in this subsection (c)
20permits the double recovery of bad debt expenses from
21customers.
22    (d) An electric utility with more than 100,000 customers
23shall file a tariff pursuant to Article IX of this Act that
24would provide alternative retail electric suppliers or
25electric utilities other than the electric utility in whose
26service area retail customers are located with the option to

 

 

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

 

 

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1uncollectible receivables for power and energy service
2provided to residential retail customers and to
3non-residential retail customers with a non-coincident peak
4demand of less than 400 kilowatts upon returning that customer
5to that electric utility for delivery and energy service after
6that alternative retail electric supplier, or an electric
7utility other than the electric utility in whose service area
8the retail customer is located, has made reasonable collection
9efforts on that account. Uncollectible receivables for power
10and energy service of alternative retail electric suppliers, or
11electric utilities other than the electric utility in whose
12service area the retail customers are located, shall be
13purchased by the electric utility at a just and reasonable
14discount rate to be reviewed and approved by the Commission,
15after notice and hearing. The discount rate shall be based on
16the electric utility's historical bad debt for receivables that
17are outstanding for a similar length of time and any reasonable
18start-up costs and administrative costs associated with the
19electric utility's purchase of receivables. The discounted
20rate for purchase of uncollectible receivables shall be
21included in the tariff filed pursuant to this subsection (e).
22The electric utility retains the right to impose the same terms
23on these retail customers with respect to credit and
24collection, including requests for deposits, and retains the
25right to disconnect these retail customers, if it does not
26receive payment for its tariffed services or purchased

 

 

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1receivables, in the same manner that it would be permitted to
2if the retail customers had purchased power and energy from the
3electric utility. The tariff filed pursuant to this subsection
4(e) shall permit the electric utility to recover from retail
5customers any uncollectable receivables that may arise as a
6result of the purchase of uncollectible receivables under this
7subsection (e), may also include other just and reasonable
8terms and conditions, and shall provide for the prudently
9incurred costs associated with the provision of this service
10pursuant to this subsection (e). Nothing in this subsection (e)
11permits the double recovery of utility bad debt expenses from
12customers. The electric utility may file a joint tariff for
13this subsection (e) and subsection (c) of this Section.
14    (f) Every electric utility that provides delivery-only and
15supply service to consumers shall include on each bill to
16residential retail customers the electric utility's total
17supply charge that would apply to the customer for the billing
18period if the customer obtained supply from the utility. This
19disclosure shall be made on the bill of each residential retail
20customer who purchases supply services from an alternative
21retail electric supplier and on the bill of each residential
22retail customer who purchases electric supply from the utility.
23(Source: P.A. 95-700, eff. 11-9-07.)
 
24    (220 ILCS 5/19-115)
25    Sec. 19-115. Obligations of alternative gas suppliers.

 

 

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

 

 

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

 

 

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1            (B) number of calls answered;
2            (C) average answer time;
3            (D) number of abandoned calls; and
4            (E) abandon call rate; .
5        (6) on January 1, 2019, and every first day of each
6    quarter thereafter, shall submit to the Commission and the
7    Office of the Attorney General the rates the retail gas
8    supplier charged to residential customers in the prior
9    quarter, including each distinct rate charged and whether
10    the rate was a fixed or variable rate, the basis for the
11    variable rate, and any fees charged in addition to the
12    supply rate, including monthly fees, flat fees, or other
13    service charges;
14        (7) shall make publicly available on its website,
15    without the need for a customer login, rate information for
16    all of its variable, time-of-use, and fixed rate contracts
17    currently available to residential customers, including,
18    but not limited to, fixed monthly charges, early
19    termination charges, and per therm charges;
20        (8) no less than 30 days but no more than 60 days
21    before a residential customer's price per therm or other
22    charge changes, shall send a separate written notice by
23    United States Mail or electronic mail, as specified by the
24    residential customer, addressed to the residential
25    customer informing the residential customer of the
26    upcoming change in price or other charge; the changed price

 

 

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1    per therm or other charge shall be included in the notice
2    and shall not require the residential customer to visit or
3    log on to a website to obtain the change in price or other
4    charge; the telephone number and email address to contact
5    the supplier shall be included in the notice; and
6        (9) shall not automatically renew a contract with a
7    residential customer at a rate higher than the initial term
8    of the contract or automatically change or renew a fixed
9    rate contract to a variable rate contract. A residential
10    customer may agree to a contract renewal at a rate higher
11    than the initial term of the contract if the notice
12    requirements in paragraph (8) have been met and the
13    residential customer expressly consents to the contract
14    renewal in writing or by an electronic signature. A
15    residential customer may void a variable rate contract
16    unless the residential customer received a disclosure
17    showing the prior 12 months of charges under the variable
18    rate contract and the disclosures required by paragraph (1)
19    of subsection (g) before expressly consenting to the
20    contract renewal.
21    Alternative gas suppliers that do not have electronic
22answering capability that meets these requirements shall
23notify the Manager of the Commission's Consumer Services
24Division or its successor within 30 days following the
25effective date of this amendatory Act of the 95th General
26Assembly and work with Staff to develop individualized

 

 

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1reporting requirements as to the call volume and responsiveness
2of the call center.
3    On or before March 1 of every year, each entity shall file
4a report with the Chief Clerk of the Commission for the
5preceding calendar year on its answer time and abandon call
6rate for its call center. A copy of the report shall be sent to
7the Manager of the Consumer Services Division or its successor.
8    (c) An alternative gas supplier shall not submit or execute
9a change in a customer's selection of a natural gas provider
10unless and until (i) the alternative gas supplier first
11discloses all material terms and conditions of the offer,
12including price, to the customer; (ii) the alternative gas
13supplier has obtained the customer's express agreement to
14accept the offer after the disclosure of all material terms and
15conditions of the offer; and (iii) the alternative gas supplier
16has confirmed the request for a change in accordance with one
17of the following procedures:
18        (1) The alternative gas supplier has obtained the
19    customer's written or electronically signed authorization
20    in a form that meets the following requirements:
21            (A) An alternative gas supplier shall obtain any
22        necessary written or electronically signed
23        authorization from a customer for a change in natural
24        gas service by using a letter of agency as specified in
25        this Section. Any letter of agency that does not
26        conform with this Section is invalid.

 

 

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1            (B) The letter of agency shall be a separate
2        document (or an easily separable document containing
3        only the authorization language described in item (E)
4        of this paragraph (1)) whose sole purpose is to
5        authorize a natural gas provider change. The letter of
6        agency must be signed and dated by the customer
7        requesting the natural gas provider change.
8            (C) The letter of agency shall not be combined with
9        inducements of any kind on the same document.
10            (D) Notwithstanding items (A) and (B) of this
11        paragraph (1), the letter of agency may be combined
12        with checks that contain only the required letter of
13        agency language prescribed in item (E) of this
14        paragraph (1) and the necessary information to make the
15        check a negotiable instrument. The letter of agency
16        check shall not contain any promotional language or
17        material. The letter of agency check shall contain in
18        easily readable, bold face type on the face of the
19        check a notice that the consumer is authorizing a
20        natural gas provider change by signing the check. The
21        letter of agency language also shall be placed near the
22        signature line on the back of the check.
23            (E) At a minimum, the letter of agency must be
24        printed with a print of sufficient size to be clearly
25        legible and must contain clear and unambiguous
26        language that confirms:

 

 

10000SB1531ham004- 22 -LRB100 05772 AMC 40760 a

1                (i) the customer's billing name and address;
2                (ii) the decision to change the natural gas
3            provider from the current provider to the
4            prospective alternative gas supplier;
5                (iii) the terms, conditions, and nature of the
6            service to be provided to the customer, including,
7            but not limited to, the rates for the service
8            contracted for by the customer; and
9                (iv) that the customer understands that any
10            natural gas provider selection the customer
11            chooses may involve a charge to the customer for
12            changing the customer's natural gas provider.
13            (F) Letters of agency shall not suggest or require
14        that a customer take some action in order to retain the
15        customer's current natural gas provider.
16            (G) If any portion of a letter of agency is
17        translated into another language, then all portions of
18        the letter of agency must be translated into that
19        language.
20        (2) An appropriately qualified independent third party
21    has obtained, in accordance with the procedures set forth
22    in this paragraph (2), the customer's oral authorization to
23    change natural gas providers that confirms and includes
24    appropriate verification data. The independent third party
25    must (i) not be owned, managed, controlled, or directed by
26    the alternative gas supplier or the alternative gas

 

 

10000SB1531ham004- 23 -LRB100 05772 AMC 40760 a

1    supplier's marketing agent; (ii) not have any financial
2    incentive to confirm provider change requests for the
3    alternative gas supplier or the alternative gas supplier's
4    marketing agent; and (iii) operate in a location physically
5    separate from the alternative gas supplier or the
6    alternative gas supplier's marketing agent. Automated
7    third-party verification systems and 3-way conference
8    calls may be used for verification purposes so long as the
9    other requirements of this paragraph (2) are satisfied. An
10    alternative gas supplier or alternative gas supplier's
11    sales representative initiating a 3-way conference call or
12    a call through an automated verification system must drop
13    off the call once the 3-way connection has been
14    established. All third-party verification methods shall
15    elicit, at a minimum, the following information:
16            (A) the identity of the customer;
17            (B) confirmation that the person on the call is
18        authorized to make the provider change;
19            (C) confirmation that the person on the call wants
20        to make the provider change;
21            (D) the names of the providers affected by the
22        change;
23            (E) the service address of the service to be
24        switched; and
25            (F) the price of the service to be provided and the
26        material terms and conditions of the service being

 

 

10000SB1531ham004- 24 -LRB100 05772 AMC 40760 a

1        offered, including whether any early termination fees
2        apply.
3        Third-party verifiers may not market the alternative
4    gas supplier's services by providing additional
5    information. All third-party verifications shall be
6    conducted in the same language that was used in the
7    underlying sales transaction and shall be recorded in their
8    entirety. Submitting alternative gas suppliers shall
9    maintain and preserve audio records of verification of
10    customer authorization for a minimum period of 2 years
11    after obtaining the verification. Automated systems must
12    provide customers with an option to speak with a live
13    person at any time during the call.
14        (3) The alternative gas supplier has obtained the
15    customer's authorization via an automated verification
16    system to change natural gas service via telephone. An
17    automated verification system is an electronic system
18    that, through pre-recorded prompts, elicits voice
19    responses, touchtone responses, or both, from the customer
20    and records both the prompts and the customer's responses.
21    Such authorization must elicit the information in
22    paragraph (2)(A) through (F) of this subsection (c).
23    Alternative gas suppliers electing to confirm sales
24    electronically through an automated verification system
25    shall establish one or more toll-free telephone numbers
26    exclusively for that purpose. Calls to the number or

 

 

10000SB1531ham004- 25 -LRB100 05772 AMC 40760 a

1    numbers shall connect a customer to a voice response unit,
2    or similar mechanism, that makes a date-stamped,
3    time-stamped recording of the required information
4    regarding the alternative gas supplier change.
5        The alternative gas supplier shall not use such
6    electronic authorization systems to market its services.
7        (4) When a consumer initiates the call to the
8    prospective alternative gas supplier, in order to enroll
9    the consumer as a customer, the prospective alternative gas
10    supplier must, with the consent of the customer, make a
11    date-stamped, time-stamped audio recording that elicits,
12    at a minimum, the following information:
13            (A) the identity of the customer;
14            (B) confirmation that the person on the call is
15        authorized to make the provider change;
16            (C) confirmation that the person on the call wants
17        to make the provider change;
18            (D) the names of the providers affected by the
19        change;
20            (E) the service address of the service to be
21        switched; and
22            (F) the price of the service to be supplied and the
23        material terms and conditions of the service being
24        offered, including whether any early termination fees
25        apply.
26        Submitting alternative gas suppliers shall maintain

 

 

10000SB1531ham004- 26 -LRB100 05772 AMC 40760 a

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

 

 

10000SB1531ham004- 27 -LRB100 05772 AMC 40760 a

1        e-mail, paper, or facsimile of the terms and conditions
2        of the numbered contract version to which the customer
3        assents.
4            (D) The alternative gas supplier shall provide a
5        mechanism by which both the submission and receipt of
6        the electronic letter of agency are recorded by time
7        and date.
8            (E) After the customer completes the electronic
9        letter of agency, the alternative gas supplier shall
10        disclose conspicuously through its website that the
11        customer has been enrolled, and the alternative gas
12        supplier shall provide the customer an enrollment
13        confirmation number.
14        (6) When a customer is solicited in person by the
15    alternative gas supplier's sales agent, the alternative
16    gas supplier may only obtain the customer's authorization
17    to change natural gas service through the method provided
18    for in paragraph (2) of this subsection (c).
19    Alternative gas suppliers must be in compliance with this
20subsection (c) within 90 days after the effective date of this
21amendatory Act of the 95th General Assembly.
22    (d) Complaints may be filed with the Commission under this
23Section by a customer whose natural gas service has been
24provided by an alternative gas supplier in a manner not in
25compliance with subsection (c) of this Section. If, after
26notice and hearing, the Commission finds that an alternative

 

 

10000SB1531ham004- 28 -LRB100 05772 AMC 40760 a

1gas supplier has violated subsection (c), then the Commission
2may in its discretion do any one or more of the following:
3        (1) Require the violating alternative gas supplier to
4    refund the customer charges collected in excess of those
5    that would have been charged by the customer's authorized
6    natural gas provider.
7        (2) Require the violating alternative gas supplier to
8    pay to the customer's authorized natural gas provider the
9    amount the authorized natural gas provider would have
10    collected for natural gas service. The Commission is
11    authorized to reduce this payment by any amount already
12    paid by the violating alternative gas supplier to the
13    customer's authorized natural gas provider.
14        (3) Require the violating alternative gas supplier to
15    pay a fine of up to $1,000 into the Public Utility Fund for
16    each repeated and intentional violation of this Section.
17        (4) Issue a cease and desist order.
18        (5) For a pattern of violation of this Section or for
19    intentionally violating a cease and desist order, revoke
20    the violating alternative gas supplier's certificate of
21    service authority.
22    (e) No alternative gas supplier shall:
23        (1) enter into or employ any arrangements which have
24    the effect of preventing any customer from having access to
25    the services of the gas utility in whose service area the
26    customer is located;

 

 

10000SB1531ham004- 29 -LRB100 05772 AMC 40760 a

1        (2) charge customers for such access;
2        (3) bill for goods or services not authorized by the
3    customer; or
4        (4) bill for a disputed amount where the alternative
5    gas supplier has been provided notice of such dispute. The
6    supplier shall attempt to resolve a dispute with the
7    customer. When the dispute is not resolved to the
8    customer's satisfaction, the supplier shall inform the
9    customer of the right to file an informal complaint with
10    the Commission and provide contact information. While the
11    pending dispute is active at the Commission, an alternative
12    gas supplier may bill only for the undisputed amount until
13    the Commission has taken final action on the complaint.
14    (f) An alternative gas supplier that is certified to serve
15residential or small commercial customers shall not:
16        (1) deny service to a customer or group of customers
17    nor establish any differences as to prices, terms,
18    conditions, services, products, facilities, or in any
19    other respect, whereby such denial or differences are based
20    upon race, gender, or income, except as provided in Section
21    19-116;
22        (2) deny service based on locality, nor establish any
23    unreasonable difference as to prices, terms, conditions,
24    services, products, or facilities as between localities;
25        (3) include in any agreement a provision that obligates
26    a customer to the terms of the agreement if the customer

 

 

10000SB1531ham004- 30 -LRB100 05772 AMC 40760 a

1    (i) moves outside the State of Illinois; (ii) moves to a
2    location without a transportation service program; or
3    (iii) moves to a location where the customer will not
4    require natural gas service, provided that nothing in this
5    subsection precludes an alternative gas supplier from
6    taking any action otherwise available to it to collect a
7    debt that arises out of service provided to the customer
8    before the customer moved; or
9        (4) assign the agreement to any alternative natural gas
10    supplier, unless:
11            (A) the supplier is an alternative gas supplier
12        certified by the Commission;
13            (B) the rates, terms, and conditions of the
14        agreement being assigned do not change during the
15        remainder of the time covered by the agreement;
16            (C) the customer is given no less than 30 days
17        prior written notice of the assignment and contact
18        information for the new supplier; and
19            (D) the supplier assigning the contract provides
20        contact information that a customer can use to resolve
21        a dispute.
22    (g) An alternative gas supplier shall comply with the
23following requirements with respect to the marketing,
24offering, and provision of products or services:
25        (1) All Any marketing materials, including electronic
26    marketing materials, in-person solicitations, and

 

 

10000SB1531ham004- 31 -LRB100 05772 AMC 40760 a

1    telephone solicitations, which make statements concerning
2    prices, terms, and conditions of service shall contain
3    information that adequately discloses the prices, terms
4    and conditions of the products or services and shall
5    contain the immediately preceding 12 months' current
6    utility gas supply charge as displayed on the Natural Gas
7    Choice website maintained by the Illinois Commerce
8    Commission and the suppliers' charges for the same 12-month
9    period for the contract rate offered to the customer. The
10    disclosure may group months during which the price to
11    compare was unchanged and may include more than 12 months
12    if the immediately preceding 12 months are included. All
13    marketing materials, including, but not limited to,
14    electronic marketing materials, in-person solicitations,
15    and telephone solicitations, that include a price per
16    kilowatt hour for competitive electricity service shall
17    include the following statement: "(Name of alternative gas
18    supplier) is not the same entity as your gas utility
19    delivery company. You are not required to enroll with (name
20    of alternative gas supplier). For information on
21    comparison rates for gas electric supply service and
22    understanding your gas supply choices, go to the Illinois
23    Commerce Commission's free website at
24    www.icc.illinois.gov/ags/consumereducation.aspx.". This
25    paragraph (1) does not apply to goodwill or institutional
26    marketing.

 

 

10000SB1531ham004- 32 -LRB100 05772 AMC 40760 a

1        (2) Before any customer is switched from another
2    supplier, the alternative gas supplier shall give the
3    customer written information that clearly and
4    conspicuously discloses, in plain language, the prices,
5    terms, and conditions of the products and services being
6    offered and sold to the customer. Nothing in this paragraph
7    (2) may be read to relieve an alternative gas supplier from
8    the duties imposed on it by item (3) of subsection (c) of
9    Section 2DDD of the Consumer Fraud and Deceptive Business
10    Practices Act.
11        (3) The alternative gas supplier shall provide to the
12    customer:
13            (A) accurate, timely, and itemized billing
14        statements that describe the products and services
15        provided to the customer and their prices and that
16        specify the gas consumption amount and any service
17        charges and taxes; provided that this item (g)(3)(A)
18        does not apply to small commercial customers;
19            (B) billing statements that clearly and
20        conspicuously discloses the name and contact
21        information for the alternative gas supplier;
22            (C) an additional statement, at least annually,
23        that adequately discloses the average monthly prices,
24        and the terms and conditions, of the products and
25        services sold to the customer; provided that this item
26        (g)(3)(C) does not apply to small commercial

 

 

10000SB1531ham004- 33 -LRB100 05772 AMC 40760 a

1        customers;
2            (D) refunds of any deposits with interest within 30
3        days after the date that the customer changes gas
4        suppliers or discontinues service if the customer has
5        satisfied all of his or her outstanding financial
6        obligations to the alternative gas supplier at an
7        interest rate set by the Commission which shall be the
8        same as that required of gas utilities; and
9            (E) refunds, in a timely fashion, of all undisputed
10        overpayments upon the oral or written request of the
11        customer.
12        (4) An alternative gas supplier and its sales agents
13    shall refrain from any direct marketing or soliciting to
14    consumers on the gas utility's "Do Not Contact List", which
15    the alternative gas supplier shall obtain on the 15th
16    calendar day of the month from the gas utility in whose
17    service area the consumer is provided with gas service. If
18    the 15th calendar day is a non-business day, then the
19    alternative gas supplier shall obtain the list on the next
20    business day following the 15th calendar day of that month.
21        (5) Early Termination.
22            (A) Any agreement that contains an early
23        termination clause shall disclose the amount of the
24        early termination fee, provided that any early
25        termination fee or penalty shall not exceed $50 total,
26        regardless of whether or not the agreement is a

 

 

10000SB1531ham004- 34 -LRB100 05772 AMC 40760 a

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

 

 

10000SB1531ham004- 35 -LRB100 05772 AMC 40760 a

1        10 business days to rescind the switch without penalty;
2            (C) that the customer shall contact the gas utility
3        or the alternative gas supplier to rescind the switch;
4        and
5            (D) the contact information for the gas utility.
6        The alternative gas supplier disclosure shall be
7    included in its sales solicitations, contracts, and all
8    applicable sales verification scripts.
9    (h) An alternative gas supplier may limit the overall size
10or availability of a service offering by specifying one or more
11of the following:
12        (1) a maximum number of customers and maximum amount of
13    gas load to be served;
14        (2) time period during which the offering will be
15    available; or
16        (3) other comparable limitation, but not including the
17    geographic locations of customers within the area which the
18    alternative gas supplier is certificated to serve.
19    The alternative gas supplier shall file the terms and
20conditions of such service offering including the applicable
21limitations with the Commission prior to making the service
22offering available to customers.
23    (i) Nothing in this Section shall be construed as
24preventing an alternative gas supplier that is an affiliate of,
25or which contracts with, (i) an industry or trade organization
26or association, (ii) a membership organization or association

 

 

10000SB1531ham004- 36 -LRB100 05772 AMC 40760 a

1that exists for a purpose other than the purchase of gas, or
2(iii) another organization that meets criteria established in a
3rule adopted by the Commission from offering through the
4organization or association services at prices, terms and
5conditions that are available solely to the members of the
6organization or association.
7(Source: P.A. 95-1051, eff. 4-10-09.)
 
8    (220 ILCS 5/19-116 new)
9    Sec. 19-116. Alternative gas supplier; utility assistance
10recipient.
11    (a) Beginning 90 days after the effective date of this
12amendatory Act of the 100th General Assembly, no customer who
13has received financial assistance within the preceding 12
14months from the Low Income Home Energy Assistance Program or
15the Percentage of Income Payment Plan shall be switched to an
16alternative gas supplier unless the customer is switched to a
17Commission-approved savings guarantee plan as described in
18subsection (b).
19    (b) Beginning January 1, 2020, an alternative gas supplier
20may apply to the Commission to offer a savings guarantee plan
21to recipients of Low Income Home Energy Assistance Program
22funding or Percentage of Income Payment Plan funding. The
23Commission shall initiate a public, docketed proceeding to
24consider whether or not to approve an alternative gas
25supplier's application to offer a savings guarantee plan. At a

 

 

10000SB1531ham004- 37 -LRB100 05772 AMC 40760 a

1minimum, the savings guarantee plan shall charge customers for
2gas supply an amount that is less than the amount the public
3utility charges for gas supply. The Commission shall adopt
4rules to implement this subsection.
5    (c) An agreement entered into between an alternative gas
6supplier and a customer in violation of this Section is void
7and unenforceable. If an alternative gas supplier attempts to
8enroll a customer in violation of this Section, the gas utility
9shall deny the supplier switch and inform the alternative gas
10supplier of the reason.
 
11    (220 ILCS 5/19-130)
12    Sec. 19-130. Commission study and report. The Commission's
13Office of Retail Market Development shall prepare an annual
14report regarding the development of competitive retail natural
15gas markets in Illinois. The Office shall monitor existing
16competitive conditions in Illinois, identify barriers to
17retail competition for all customer classes, and actively
18explore and propose to the Commission and to the General
19Assembly solutions to overcome identified barriers. Solutions
20proposed by the Office to promote retail competition must also
21promote safe, reliable, and affordable natural gas service.
22    On or before October 1 of each year, beginning in 2015, the
23Director shall submit a report to the Commission, the General
24Assembly, and the Governor, that includes, at a minimum, the
25following information:

 

 

10000SB1531ham004- 38 -LRB100 05772 AMC 40760 a

1        (1) an analysis of the status and development of the
2    retail natural gas market in the State of Illinois; and
3        (2) a discussion of any identified barriers to the
4    development of competitive retail natural gas markets in
5    Illinois and proposed solutions to overcome identified
6    barriers; and
7        (3) any other information the Office considers
8    significant in assessing the development of natural gas
9    markets in the State of Illinois.
10    Beginning in 2020, the report shall include the information
11submitted to the Commission pursuant to paragraph (6) of
12subsection (b) of Section 19-115.
13(Source: P.A. 97-223, eff. 1-1-12; 98-1121, eff. 8-26-14.)
 
14    (220 ILCS 5/19-135)
15    Sec. 19-135. Single billing.
16    (a) It is the intent of the General Assembly that in any
17service area where customers are able to choose their natural
18gas supplier, a single billing option shall be offered to
19customers for both the services provided by the alternative gas
20supplier and the delivery services provided by the gas utility.
21A gas utility shall file a tariff pursuant to Article IX of
22this Act that allows alternative gas suppliers to issue single
23bills to residential and small commercial customers for both
24the services provided by the alternative gas supplier and the
25delivery services provided by the gas utility to customers;

 

 

10000SB1531ham004- 39 -LRB100 05772 AMC 40760 a

1provided that if a form of single billing is being offered in a
2gas utility's service area on the effective date of this
3amendatory Act of the 92nd General Assembly, that form of
4single billing shall remain in effect unless and until
5otherwise ordered by the Commission. The gas utility shall
6include its current supply rate on the single bills issued to
7residential customers.
8    (b) Every gas utility that provides delivery-only and
9supply service to consumers shall include on each bill to each
10residential retail customer the gas utility's total supply
11charge for the billing period, including all fixed or monthly
12supply charges and other charges, credits, or rates that are
13part of the gas supply price. This disclosure shall be made on
14the bill of each residential retail customer who purchases
15supply services from an alternative gas supplier and on the
16bill of each residential retail customer who purchases gas
17supply from the utility.
18(Source: P.A. 92-852, eff. 8-26-02.)
 
19    (220 ILCS 5/20-110)
20    Sec. 20-110. Office of Retail Market Development. Within 90
21days after the effective date of this amendatory Act of the
2294th General Assembly, subject to appropriation, the
23Commission shall establish an Office of Retail Market
24Development and employ on its staff a Director of Retail Market
25Development to oversee the Office. The Director shall have

 

 

10000SB1531ham004- 40 -LRB100 05772 AMC 40760 a

1authority to employ or otherwise retain at least 2
2professionals dedicated to the task of actively seeking out
3ways to promote retail competition in Illinois to benefit all
4Illinois consumers.
5    The Office shall actively seek input from all interested
6parties and shall develop a thorough understanding and critical
7analyses of the tools and techniques used to promote retail
8competition in other states.
9    The Office shall monitor existing competitive conditions
10in Illinois, identify barriers to retail competition for all
11customer classes, and actively explore and propose to the
12Commission and to the General Assembly solutions to overcome
13identified barriers. The Director may include municipal
14aggregation of customers and creating and designing customer
15choice programs as tools for retail market development.
16Solutions proposed by the Office to promote retail competition
17must also promote safe, reliable, and affordable electric
18service.
19    On or before June 30 of each year, the Director shall
20submit a report to the Commission, the General Assembly, and
21the Governor, that details specific accomplishments achieved
22by the Office in the prior 12 months in promoting retail
23electric competition and that suggests administrative and
24legislative action necessary to promote further improvements
25in retail electric competition. On or before June 30, 2020, and
26every year thereafter, the report shall include the information

 

 

10000SB1531ham004- 41 -LRB100 05772 AMC 40760 a

1submitted to the Commission pursuant to paragraph (iii) of
2subsection (a) of Section 16-115A.
3(Source: P.A. 94-1095, eff. 2-2-07.)
 
4    Section 10. The Consumer Fraud and Deceptive Business
5Practices Act is amended by changing Sections 2EE and 2DDD as
6follows:
 
7    (815 ILCS 505/2EE)
8    Sec. 2EE. Electric service provider selection. An electric
9service provider shall not submit or execute a change in a
10subscriber's selection of a provider of electric service unless
11and until (i) the provider first discloses all material terms
12and conditions of the offer to the subscriber, including
13information that adequately discloses the prices, terms, and
14conditions of the products or services that the alternative
15retail electric supplier is offering or selling to the customer
16and the Historical Prices to Compare from the preceding 12
17months as displayed on the Plug-In Illinois website maintained
18by the Illinois Commerce Commission for the distribution
19utility serving the customer; (ii) the provider meets the
20requirements of Sections 16-115A and 16-115E of the Public
21Utilities Act; (iii) (ii) the provider has obtained the
22subscriber's express agreement to accept the offer after the
23disclosure of all material terms and conditions of the offer;
24and (iv) (iii) the provider has confirmed the request for a

 

 

10000SB1531ham004- 42 -LRB100 05772 AMC 40760 a

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

 

 

10000SB1531ham004- 43 -LRB100 05772 AMC 40760 a

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

 

 

10000SB1531ham004- 44 -LRB100 05772 AMC 40760 a

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

 

 

10000SB1531ham004- 45 -LRB100 05772 AMC 40760 a

1service address of the supply to be switched; and (vi) the
2price of the service to be supplied and the material terms and
3conditions of the service being offered, including whether any
4early termination fees apply. Third-party verifiers may not
5market the supplier's services by providing additional
6information, including information regarding procedures to
7block or otherwise freeze an account against further changes.
8    All third-party verifications shall be conducted in the
9same language that was used in the underlying sales transaction
10and shall be recorded in their entirety. Submitting suppliers
11shall maintain and preserve audio records of verification of
12subscriber authorization for a minimum period of 2 years after
13obtaining the verification. Automated systems must provide
14consumers with an option to speak with a live person at any
15time during the call.
16    (c) When a subscriber initiates the call to the prospective
17electric supplier, in order to enroll the subscriber as a
18customer, the prospective electric supplier must, with the
19consent of the customer, make a date-stamped, time-stamped
20audio recording that elicits, at a minimum, the following
21information:
22        (1) the identity of the subscriber;
23        (2) confirmation that the person on the call is
24    authorized to make the supplier change;
25        (3) confirmation that the person on the call wants to
26    make the supplier change;

 

 

10000SB1531ham004- 46 -LRB100 05772 AMC 40760 a

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

 

 

10000SB1531ham004- 47 -LRB100 05772 AMC 40760 a

1and hearing, the Commission finds that an electric service
2provider has violated this Section, the Commission may in its
3discretion do any one or more of the following:
4        (1) Require the violating electric service provider to
5    refund to the subscriber charges collected in excess of
6    those that would have been charged by the subscriber's
7    authorized electric service provider.
8        (2) Require the violating electric service provider to
9    pay to the subscriber's authorized electric supplier the
10    amount the authorized electric supplier would have
11    collected for the electric service. The Commission is
12    authorized to reduce this payment by any amount already
13    paid by the violating electric supplier to the subscriber's
14    authorized provider for electric service.
15        (3) Require the violating electric subscriber to pay a
16    fine of up to $1,000 into the Public Utility Fund for each
17    repeated and intentional violation of this Section.
18        (4) Issue a cease and desist order.
19        (5) For a pattern of violation of this Section or for
20    intentionally violating a cease and desist order, revoke
21    the violating provider's certificate of service authority.
22    (d-5) A violation of Section 16-115A or 16-115E of the
23Public Utilities Act or the administrative rules adopted
24thereunder at 83 Ill. Adm. Code Part 412 constitutes a
25violation of this Section.
26    (e) For purposes of this Section, "electric service

 

 

10000SB1531ham004- 48 -LRB100 05772 AMC 40760 a

1provider" shall have the meaning given that phrase in Section
26.5 of the Attorney General Act.
3(Source: P.A. 95-700, eff. 11-9-07.)
 
4    (815 ILCS 505/2DDD)
5    Sec. 2DDD. Alternative gas suppliers.
6    (a) Definitions.
7        (1) "Alternative gas supplier" has the same meaning as
8    in Section 19-105 of the Public Utilities Act.
9        (2) "Gas utility" has the same meaning as in Section
10    19-105 of the Public Utilities Act.
11    (b) It is an unfair or deceptive act or practice within the
12meaning of Section 2 of this Act for any person to violate any
13provision of this Section. A violation of Section 19-115 or
1419-116 of the Alternative Gas Supplier Law or the
15administrative rules adopted thereunder at 83 Ill. Adm. Code
16Parts 501 and 551 also constitutes a violation of this Section.
17    (c) Solicitation.
18        (1) An alternative gas supplier shall not misrepresent
19    the affiliation of any alternative supplier with the gas
20    utility, governmental bodies, or consumer groups.
21        (2) If any sales solicitation, agreement, contract, or
22    verification is translated into another language and
23    provided to a customer, all of the documents must be
24    provided to the customer in that other language.
25        (3) An alternative gas supplier shall clearly and

 

 

10000SB1531ham004- 49 -LRB100 05772 AMC 40760 a

1    conspicuously disclose the following information to all
2    customers:
3            (A) the prices, terms, and conditions of the
4        products and services being sold to the customer;
5            (B) where the solicitation occurs in person,
6        including through door-to-door solicitation, the
7        salesperson's name;
8            (C) the alternative gas supplier's contact
9        information, including the address, phone number, and
10        website;
11            (D) contact information for the Illinois Commerce
12        Commission, including the toll-free number for
13        consumer complaints and website;
14            (E) a statement of the customer's right to rescind
15        the offer within 10 business days of the date on the
16        utility's notice confirming the customer's decision to
17        switch suppliers, as well as phone numbers for the
18        supplier and utility that the consumer may use to
19        rescind the contract; and
20            (F) the amount of the early termination fee, if
21        any.
22        (4) Except as provided in paragraph (5) of this
23    subsection (c), an alternative gas supplier shall send the
24    information described in paragraph (3) of this subsection
25    (c) to all customers within one business day of the
26    authorization of a switch.

 

 

10000SB1531ham004- 50 -LRB100 05772 AMC 40760 a

1        (5) An alternative gas supplier engaging in
2    door-to-door solicitation of consumers shall provide the
3    information described in paragraph (3) of this subsection
4    (c) during all door-to-door solicitations that result in a
5    customer deciding to switch their supplier.
6    (d) Customer Authorization. An alternative gas supplier
7shall not submit or execute a change in a customer's selection
8of a natural gas provider unless and until (i) the alternative
9gas supplier first discloses all material terms and conditions
10of the offer to the customer, including information that
11adequately discloses the prices, terms, and conditions of the
12products or services that the alternative gas supplier is
13offering or selling to the customer and the preceding 12
14months' current utility gas supply charge as displayed on the
15Natural Gas Choice website maintained by the Illinois Commerce
16Commission for the distribution utility serving the customer;
17(ii) the alternative gas supplier meets the requirements of
18Sections 19-115 and 19-116 of the Public Utilities Act; (iii)
19(ii) the alternative gas supplier has obtained the customer's
20express agreement to accept the offer after the disclosure of
21all material terms and conditions of the offer; and (iv) (iii)
22the alternative gas supplier has confirmed the request for a
23change in accordance with one of the following procedures:
24        (1) The alternative gas supplier has obtained the
25    customer's written or electronically signed authorization
26    in a form that meets the following requirements:

 

 

10000SB1531ham004- 51 -LRB100 05772 AMC 40760 a

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

 

 

10000SB1531ham004- 52 -LRB100 05772 AMC 40760 a

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

 

 

10000SB1531ham004- 53 -LRB100 05772 AMC 40760 a

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

 

 

10000SB1531ham004- 54 -LRB100 05772 AMC 40760 a

1            (D) the names of the providers affected by the
2        change;
3            (E) the service address of the service to be
4        switched; and
5            (F) the price of the service to be provided and the
6        material terms and conditions of the service being
7        offered, including whether any early termination fees
8        apply.
9        Third-party verifiers may not market the alternative
10    gas supplier's services. All third-party verifications
11    shall be conducted in the same language that was used in
12    the underlying sales transaction and shall be recorded in
13    their entirety. Submitting alternative gas suppliers shall
14    maintain and preserve audio records of verification of
15    customer authorization for a minimum period of 2 years
16    after obtaining the verification. Automated systems must
17    provide customers with an option to speak with a live
18    person at any time during the call.
19        (3) The alternative gas supplier has obtained the
20    customer's electronic authorization to change natural gas
21    service via telephone. Such authorization must elicit the
22    information in paragraph (2)(A) through (F) of this
23    subsection (d). Alternative gas suppliers electing to
24    confirm sales electronically shall establish one or more
25    toll-free telephone numbers exclusively for that purpose.
26    Calls to the number or numbers shall connect a customer to

 

 

10000SB1531ham004- 55 -LRB100 05772 AMC 40760 a

1    a voice response unit, or similar mechanism, that makes a
2    date-stamped, time-stamped recording of the required
3    information regarding the alternative gas supplier change.
4        The alternative gas supplier shall not use such
5    electronic authorization systems to market its services.
6        (4) When a consumer initiates the call to the
7    prospective alternative gas supplier, in order to enroll
8    the consumer as a customer, the prospective alternative gas
9    supplier must, with the consent of the customer, make a
10    date-stamped, time-stamped audio recording that elicits,
11    at a minimum, the following information:
12            (A) the identity of the customer;
13            (B) confirmation that the person on the call is
14        authorized to make the provider change;
15            (C) confirmation that the person on the call wants
16        to make the provider change;
17            (D) the names of the providers affected by the
18        change;
19            (E) the service address of the service to be
20        switched; and
21            (F) the price of the service to be supplied and the
22        material terms and conditions of the service being
23        offered, including whether any early termination fees
24        apply.
25        Submitting alternative gas suppliers shall maintain
26    and preserve the audio records containing the information

 

 

10000SB1531ham004- 56 -LRB100 05772 AMC 40760 a

1    set forth above for a minimum period of 2 years.
2        (5) In the event that a customer enrolls for service
3    from an alternative gas supplier via an Internet website,
4    the alternative gas supplier shall obtain an
5    electronically signed letter of agency in accordance with
6    paragraph (1) of this subsection (d) and any customer
7    information shall be protected in accordance with all
8    applicable statutes and rules. In addition, an alternative
9    gas supplier shall provide the following when marketing via
10    an Internet website:
11            (A) The Internet enrollment website shall, at a
12        minimum, include:
13                (i) a copy of the alternative gas supplier's
14            customer contract, which clearly and conspicuously
15            discloses all terms and conditions; and
16                (ii) a conspicuous prompt for the customer to
17            print or save a copy of the contract.
18            (B) Any electronic version of the contract shall be
19        identified by version number, in order to ensure the
20        ability to verify the particular contract to which the
21        customer assents.
22            (C) Throughout the duration of the alternative gas
23        supplier's contract with a customer, the alternative
24        gas supplier shall retain and, within 3 business days
25        of the customer's request, provide to the customer an
26        e-mail, paper, or facsimile of the terms and conditions

 

 

10000SB1531ham004- 57 -LRB100 05772 AMC 40760 a

1        of the numbered contract version to which the customer
2        assents.
3            (D) The alternative gas supplier shall provide a
4        mechanism by which both the submission and receipt of
5        the electronic letter of agency are recorded by time
6        and date.
7            (E) After the customer completes the electronic
8        letter of agency, the alternative gas supplier shall
9        disclose conspicuously through its website that the
10        customer has been enrolled and the alternative gas
11        supplier shall provide the customer an enrollment
12        confirmation number.
13        (6) When a customer is solicited in person by the
14    alternative gas supplier's sales agent, the alternative
15    gas supplier may only obtain the customer's authorization
16    to change natural gas service through the method provided
17    for in paragraph (2) of this subsection (d).
18    Alternative gas suppliers must be in compliance with the
19provisions of this subsection (d) within 90 days after the
20effective date of this amendatory Act of the 95th General
21Assembly.
22    (d-5) A gas supplier shall not automatically renew a
23contract with a residential customer at a rate higher than the
24initial term of the contract or automatically change or renew a
25fixed rate contract to a variable rate contract. A residential
26customer may agree to a contract renewal at a rate higher than

 

 

10000SB1531ham004- 58 -LRB100 05772 AMC 40760 a

1the initial term of the contract if the requirements in
2paragraphs (8) and (9) of subsection (b) of Section 19-115 of
3the Public Utilities Act have been met and the residential
4customer expressly consents to the contract renewal in writing
5or by an electronic signature. A residential customer may void
6a contract renewal or a variable rate contract if the
7requirements in paragraphs (8) and (9) of subsection (b) of
8Section 19-115 of the Public Utilities Act have not been met.
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
25customer the opportunity to rescind its agreement without
26penalty within 10 business days after the date on the gas

 

 

10000SB1531ham004- 59 -LRB100 05772 AMC 40760 a

1utility notice to the customer. The alternative gas supplier
2shall 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
14in its sales solicitations, contracts, and all applicable sales
15verification scripts.
16    (g) The provisions of this Section shall apply only to
17alternative gas suppliers serving or seeking to serve
18residential and small commercial customers and only to the
19extent such alternative gas suppliers provide services to
20residential and small commercial customers.
21(Source: P.A. 97-333, eff. 8-12-11.)
 
22    Section 90. This Act supersedes any conflicting provision
23of 83 Ill. Adm. Code 280, and any ambiguity shall be resolved
24in favor of the customer or prospective customer.
 

 

 

10000SB1531ham004- 60 -LRB100 05772 AMC 40760 a

1    Section 99. Effective date. This Act takes effect upon
2becoming law.".