Illinois General Assembly - Full Text of SB0651
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Full Text of SB0651  101st General Assembly

SB0651sam001 101ST GENERAL ASSEMBLY

Sen. Kimberly A. Lightford

Filed: 3/12/2019

 

 


 

 


 
10100SB0651sam001LRB101 04244 RJF 57466 a

1
AMENDMENT TO SENATE BILL 651

2    AMENDMENT NO. ______. Amend Senate Bill 651 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, 2020, 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) An alternative retail electric supplier shall not
21submit or execute a change in a customer's electric supplier if
22the confirmation described in subsection (c) discloses that the
23utility's records indicate that either: (1) the customer has
24been verified by an approved agency within the preceding 12
25months as eligible to receive financial assistance from either

 

 

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1the Low Income Home Energy Assistance Program or the Percentage
2of Income Payment Plan; or (2) the customer has received
3financial assistance within the preceding 12 months from either
4the Low Income Home Energy Assistance Program or the Percentage
5of Income Payment Plan, unless (A) the customer's change in
6electric supplier is pursuant to a government aggregation
7program adopted in accordance with Section 1-92 of the Illinois
8Power Agency Act, or (B) the customer's change in electric
9supplier is pursuant to a Commission-approved savings
10guarantee plan as described in subsection (b).
11    (b) Beginning January 1, 2021, 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. Before the alternative retail
25electric supplier submits or executes a change in a customer's
26supplier, other than a change pursuant to a government

 

 

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1aggregation program adopted in accordance with Section 1-92 of
2the Illinois Power Agency Act or pursuant to a
3Commission-approved savings guarantee plan as described in
4subsection (b), the alternative retail electric supplier
5shall: (1) confirm with the customer whether the customer is
6either eligible to receive or has received financial assistance
7within the preceding 12 months from the Low Income Home Energy
8Assistance Program or the Percentage of Income Payment Plan;
9and (2) confirm with the utility whether the utility's records
10at the time of the request indicate that the customer either
11(A) has been verified by an approved agency as a customer who
12is eligible to receive financial assistance within the
13preceding 12 months from either the Low Income Home Energy
14Assistance Program or the Percentage of Income Payment Plan, or
15(B) has received financial assistance within the preceding 12
16months from either the Low Income Home Energy Assistance
17Program or the Percentage of Income Payment Plan.
 
18    (220 ILCS 5/16-118)
19    Sec. 16-118. Services provided by electric utilities to
20alternative retail electric suppliers.
21    (a) It is in the best interest of Illinois energy consumers
22to promote fair and open competition in the provision of
23electric power and energy and to prevent anticompetitive
24practices in the provision of electric power and energy.
25Therefore, to the extent an electric utility provides electric

 

 

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1power and energy or delivery services to alternative retail
2electric suppliers and such services are not subject to the
3jurisdiction of the Federal Energy Regulatory Commission, and
4are not competitive services, they shall be provided through
5tariffs that are filed with the Commission, pursuant to Article
6IX of this Act. Each electric utility shall permit alternative
7retail electric suppliers to interconnect facilities to those
8owned by the utility provided they meet established standards
9for such interconnection, and may provide standby or other
10services to alternative retail electric suppliers. The
11alternative retail electric supplier shall sign a contract
12setting forth the prices, terms and conditions for
13interconnection with the electric utility and the prices, terms
14and conditions for services provided by the electric utility to
15the alternative retail electric supplier in connection with the
16delivery by the electric utility of electric power and energy
17supplied by the alternative retail electric supplier.
18    (b) An electric utility shall file a tariff pursuant to
19Article IX of the Act that would allow alternative retail
20electric suppliers or electric utilities other than the
21electric utility in whose service area retail customers are
22located to issue single bills to the retail customers for both
23the services provided by such alternative retail electric
24supplier or other electric utility and the delivery services
25provided by the electric utility to such customers. The tariff
26filed pursuant to this subsection shall (i) require partial

 

 

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1payments made by retail customers to be credited first to the
2electric utility's tariffed services, (ii) impose commercially
3reasonable terms with respect to credit and collection,
4including requests for deposits, (iii) retain the electric
5utility's right to disconnect the retail customers, if it does
6not receive payment for its tariffed services, in the same
7manner that it would be permitted to if it had billed for the
8services itself, and (iv) require the alternative retail
9electric supplier or other electric utility that elects the
10billing option provided by this tariff to include on each bill
11to retail customers an identification of the electric utility
12providing the delivery services and a listing of the charges
13applicable to such services. The tariff filed pursuant to this
14subsection may also include other just and reasonable terms and
15conditions. In addition, an electric utility, an alternative
16retail electric supplier or electric utility other than the
17electric utility in whose service area the customer is located,
18and a customer served by such alternative retail electric
19supplier or other electric utility, may enter into an agreement
20pursuant to which the alternative retail electric supplier or
21other electric utility pays the charges specified in Section
2216-108, or other customer-related charges, including taxes and
23fees, in lieu of such charges being recovered by the electric
24utility directly from the customer.
25    (c) An electric utility with more than 100,000 customers
26shall file a tariff pursuant to Article IX of this Act that

 

 

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1provides alternative retail electric suppliers, and electric
2utilities other than the electric utility in whose service area
3the retail customers are located, with the option to have the
4electric utility purchase their receivables for power and
5energy service provided to residential retail customers and
6non-residential retail customers with a non-coincident peak
7demand of less than 400 kilowatts. Receivables for power and
8energy service of alternative retail electric suppliers or
9electric utilities other than the electric utility in whose
10service area the retail customers are located shall be
11purchased by the electric utility at a just and reasonable
12discount rate to be reviewed and approved by the Commission
13after notice and hearing. The discount rate shall be based on
14the electric utility's historical bad debt and any reasonable
15start-up costs and administrative costs associated with the
16electric utility's purchase of receivables. The discounted
17rate for purchase of receivables shall be included in the
18tariff filed pursuant to this subsection (c). The discount rate
19filed pursuant to this subsection (c) shall be subject to
20periodic Commission review. The electric utility retains the
21right to impose the same terms on retail customers with respect
22to credit and collection, including requests for deposits, and
23retain the electric utility's right to disconnect the retail
24customers, if it does not receive payment for its tariffed
25services or purchased receivables, in the same manner that it
26would be permitted to if the retail customers purchased power

 

 

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1and energy from the electric utility. The tariff filed pursuant
2to this subsection (c) shall permit the electric utility to
3recover from retail customers any uncollected receivables that
4may arise as a result of the purchase of receivables under this
5subsection (c), may also include other just and reasonable
6terms and conditions, and shall provide for the prudently
7incurred costs associated with the provision of this service
8pursuant to this subsection (c). Nothing in this subsection (c)
9permits the double recovery of bad debt expenses from
10customers.
11    (d) An electric utility with more than 100,000 customers
12shall file a tariff pursuant to Article IX of this Act that
13would provide alternative retail electric suppliers or
14electric utilities other than the electric utility in whose
15service area retail customers are located with the option to
16have the electric utility produce and provide single bills to
17the retail customers for both the electric power and energy
18service provided by the alternative retail electric supplier or
19other electric utility and the delivery services provided by
20the electric utility to the customers. The tariffs filed
21pursuant to this subsection shall require the electric utility
22to collect and remit customer payments for electric power and
23energy service provided by alternative retail electric
24suppliers or electric utilities other than the electric utility
25in whose service area retail customers are located. The tariff
26filed pursuant to this subsection shall require the electric

 

 

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1utility to include on each bill to retail customers an
2identification of the alternative retail electric supplier or
3other electric utility that elects the billing option. The
4tariff filed pursuant to this subsection (d) may also include
5other just and reasonable terms and conditions and shall
6provide for the recovery of prudently incurred costs associated
7with the provision of service pursuant to this subsection (d).
8The costs associated with the provision of service pursuant to
9this Section shall be subject to periodic Commission review.
10    (e) An electric utility with more than 100,000 customers in
11this State shall file a tariff pursuant to Article IX of this
12Act that provides alternative retail electric suppliers, and
13electric utilities other than the electric utility in whose
14service area the retail customers are located, with the option
15to have the electric utility purchase 2 billing cycles worth of
16uncollectible receivables for power and energy service
17provided to residential retail customers and to
18non-residential retail customers with a non-coincident peak
19demand of less than 400 kilowatts upon returning that customer
20to that electric utility for delivery and energy service after
21that alternative retail electric supplier, or an electric
22utility other than the electric utility in whose service area
23the retail customer is located, has made reasonable collection
24efforts on that account. Uncollectible receivables for power
25and energy service of alternative retail electric suppliers, or
26electric utilities other than the electric utility in whose

 

 

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

 

 

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1customers. The electric utility may file a joint tariff for
2this subsection (e) and subsection (c) of this Section.
3    (f) Every alternative retail electric supplier or electric
4utility other than the electric utility in whose service area
5retail customers are located that issue single bills to the
6retail customers for the services provided by such alternative
7retail electric supplier or other electric utility and the
8delivery services provided by the electric utility to such
9customers shall include on the single bills issued to
10residential customers the current utility supply charge that
11would apply to the customer for the billing period if the
12customer obtained supply from the utility, including all fixed
13or monthly supply charges and other charges, credits, or rates
14that are part of the electric supply price.
15    (g) Every electric utility that provides delivery and
16supply services shall include on each bill to residential
17customers who obtain supply from an alternative retail electric
18supplier the electric utility's total supply charge that would
19apply to the customer for the billing period if the customer
20obtained supply from the utility, including all fixed or
21monthly supply charges and other charges, credits, or rates
22that are part of the electric supply price.
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, 2020, 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.

 

 

10100SB0651sam001- 22 -LRB101 04244 RJF 57466 a

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:

 

 

10100SB0651sam001- 23 -LRB101 04244 RJF 57466 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

 

 

10100SB0651sam001- 24 -LRB101 04244 RJF 57466 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

 

 

10100SB0651sam001- 25 -LRB101 04244 RJF 57466 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

 

 

10100SB0651sam001- 26 -LRB101 04244 RJF 57466 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

 

 

10100SB0651sam001- 27 -LRB101 04244 RJF 57466 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

 

 

10100SB0651sam001- 28 -LRB101 04244 RJF 57466 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

 

 

10100SB0651sam001- 29 -LRB101 04244 RJF 57466 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;

 

 

10100SB0651sam001- 30 -LRB101 04244 RJF 57466 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

 

 

10100SB0651sam001- 31 -LRB101 04244 RJF 57466 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

 

 

10100SB0651sam001- 32 -LRB101 04244 RJF 57466 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 therm
16    for competitive gas supply shall include the following
17    statement: "(Name of alternative gas supplier) is not the
18    same entity as your gas utility delivery company. You are
19    not required to enroll with (name of alternative gas
20    supplier). For information on comparison rates for gas
21    supply and understanding your gas supply choices, go to the
22    Illinois Commerce Commission's free website at
23    www.icc.illinois.gov/ags/consumereducation.aspx.". This
24    paragraph (1) does not apply to goodwill or institutional
25    marketing.
26        (2) Before any customer is switched from another

 

 

10100SB0651sam001- 33 -LRB101 04244 RJF 57466 a

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

 

 

10100SB0651sam001- 34 -LRB101 04244 RJF 57466 a

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

 

 

10100SB0651sam001- 35 -LRB101 04244 RJF 57466 a

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

 

 

10100SB0651sam001- 36 -LRB101 04244 RJF 57466 a

1            (C) that the customer shall contact the gas utility
2        or the alternative gas supplier to rescind the switch;
3        and
4            (D) the contact information for the gas utility.
5        The alternative gas supplier disclosure shall be
6    included in its sales solicitations, contracts, and all
7    applicable sales verification scripts.
8    (h) An alternative gas supplier may limit the overall size
9or availability of a service offering by specifying one or more
10of the following:
11        (1) a maximum number of customers and maximum amount of
12    gas load to be served;
13        (2) time period during which the offering will be
14    available; or
15        (3) other comparable limitation, but not including the
16    geographic locations of customers within the area which the
17    alternative gas supplier is certificated to serve.
18    The alternative gas supplier shall file the terms and
19conditions of such service offering including the applicable
20limitations with the Commission prior to making the service
21offering available to customers.
22    (i) Nothing in this Section shall be construed as
23preventing an alternative gas supplier that is an affiliate of,
24or which contracts with, (i) an industry or trade organization
25or association, (ii) a membership organization or association
26that exists for a purpose other than the purchase of gas, or

 

 

10100SB0651sam001- 37 -LRB101 04244 RJF 57466 a

1(iii) another organization that meets criteria established in a
2rule adopted by the Commission from offering through the
3organization or association services at prices, terms and
4conditions that are available solely to the members of the
5organization or association.
6(Source: P.A. 95-1051, eff. 4-10-09.)
 
7    (220 ILCS 5/19-116 new)
8    Sec. 19-116. Alternative gas supplier; utility assistance
9recipient.
10    (a) An alternative gas supplier shall not submit or execute
11a change in a customer's gas supplier if the confirmation
12described in subsection (c) discloses that the utility's
13records indicate that either: (1) the customer has been
14verified by an approved agency within the preceding 12 months
15as eligible to receive financial assistance from either the Low
16Income Home Energy Assistance Program or the Percentage of
17Income Payment Plan; or (2) the customer has received financial
18assistance within the preceding 12 months from either the Low
19Income Home Energy Assistance Program or the Percentage of
20Income Payment Plan, unless the customer's change in gas
21supplier is pursuant to a Commission-approved savings
22guarantee plan as described in subsection (b).
23    (b) Beginning January 1, 2021, an alternative gas supplier
24may apply to the Commission to offer a savings guarantee plan
25to recipients of Low Income Home Energy Assistance Program

 

 

10100SB0651sam001- 38 -LRB101 04244 RJF 57466 a

1funding or Percentage of Income Payment Plan funding. The
2Commission shall initiate a public, docketed proceeding to
3consider whether or not to approve an alternative gas
4supplier's application to offer a savings guarantee plan. At a
5minimum, the savings guarantee plan shall charge customers for
6gas supply an amount that is less than the amount the public
7utility charges for gas supply. The Commission shall adopt
8rules to implement this subsection.
9    (c) An agreement entered into between an alternative gas
10supplier and a customer in violation of this Section is void
11and unenforceable. Before the alternative gas supplier submits
12or executes a change in a customer's supplier, other than a
13change pursuant to a Commission-approved savings guarantee
14plan as described in subsection (b), the alternative gas
15supplier shall: (1) confirm with the customer whether the
16customer is either eligible to receive or has received
17financial assistance within the preceding 12 months from the
18Low Income Home Energy Assistance Program or the Percentage of
19Income Payment Plan; and (2) confirm with the utility whether
20the utility's records indicate at the time of the request
21whether the customer either (A) has been verified by an
22approved agency as a customer who is eligible to receive
23financial assistance within the preceding 12 months from either
24the Low Income Home Energy Assistance Program or the Percentage
25of Income Payment Plan, or (B) has received financial
26assistance within the preceding 12 months from either the Low

 

 

10100SB0651sam001- 39 -LRB101 04244 RJF 57466 a

1Income Home Energy Assistance Program or the Percentage of
2Income Payment Plan.
 
3    (220 ILCS 5/19-130)
4    Sec. 19-130. Commission study and report. The Commission's
5Office of Retail Market Development shall prepare an annual
6report regarding the development of competitive retail natural
7gas markets in Illinois. The Office shall monitor existing
8competitive conditions in Illinois, identify barriers to
9retail competition for all customer classes, and actively
10explore and propose to the Commission and to the General
11Assembly solutions to overcome identified barriers. Solutions
12proposed by the Office to promote retail competition must also
13promote safe, reliable, and affordable natural gas service.
14    On or before October 1 of each year, beginning in 2015, the
15Director shall submit a report to the Commission, the General
16Assembly, and the Governor, that includes, at a minimum, the
17following information:
18        (1) an analysis of the status and development of the
19    retail natural gas market in the State of Illinois; and
20        (2) a discussion of any identified barriers to the
21    development of competitive retail natural gas markets in
22    Illinois and proposed solutions to overcome identified
23    barriers; and
24        (3) any other information the Office considers
25    significant in assessing the development of natural gas

 

 

10100SB0651sam001- 40 -LRB101 04244 RJF 57466 a

1    markets in the State of Illinois.
2    Beginning in 2021, the report shall include the information
3submitted to the Commission pursuant to paragraph (6) of
4subsection (b) of Section 19-115.
5(Source: P.A. 97-223, eff. 1-1-12; 98-1121, eff. 8-26-14.)
 
6    (220 ILCS 5/19-135)
7    Sec. 19-135. Single billing.
8    (a) It is the intent of the General Assembly that in any
9service area where customers are able to choose their natural
10gas supplier, a single billing option shall be offered to
11customers for both the services provided by the alternative gas
12supplier and the delivery services provided by the gas utility.
13A gas utility shall file a tariff pursuant to Article IX of
14this Act that allows alternative gas suppliers to issue single
15bills to residential and small commercial customers for both
16the services provided by the alternative gas supplier and the
17delivery services provided by the gas utility to customers;
18provided that if a form of single billing is being offered in a
19gas utility's service area on the effective date of this
20amendatory Act of the 92nd General Assembly, that form of
21single billing shall remain in effect unless and until
22otherwise ordered by the Commission. Every alternative gas
23supplier that issues a single bill for delivery and supply
24shall include on the single bill issued to a residential
25customer the current utility supply charge that would apply to

 

 

10100SB0651sam001- 41 -LRB101 04244 RJF 57466 a

1the customer for the billing period if the customer obtained
2supply from the utility, including all fixed or monthly supply
3charges and other charges, credits, or rates that are part of
4the gas supply price.
5    (b) Every gas utility that offers supply choice and
6provides delivery and alternative gas supply service on a
7single bill to its residential customers shall include on the
8bill of each residential customer who purchases supply services
9from an alternative gas supplier the gas utility's total supply
10charge for the billing period that would apply to the customer
11for the billing period if the customer obtained supply from the
12utility, including all fixed or monthly supply charges and
13other charges, credits, or rates that are part of the gas
14supply price.
15(Source: P.A. 92-852, eff. 8-26-02.)
 
16    (220 ILCS 5/20-110)
17    Sec. 20-110. Office of Retail Market Development. Within 90
18days after the effective date of this amendatory Act of the
1994th General Assembly, subject to appropriation, the
20Commission shall establish an Office of Retail Market
21Development and employ on its staff a Director of Retail Market
22Development to oversee the Office. The Director shall have
23authority to employ or otherwise retain at least 2
24professionals dedicated to the task of actively seeking out
25ways to promote retail competition in Illinois to benefit all

 

 

10100SB0651sam001- 42 -LRB101 04244 RJF 57466 a

1Illinois consumers.
2    The Office shall actively seek input from all interested
3parties and shall develop a thorough understanding and critical
4analyses of the tools and techniques used to promote retail
5competition in other states.
6    The Office shall monitor existing competitive conditions
7in Illinois, identify barriers to retail competition for all
8customer classes, and actively explore and propose to the
9Commission and to the General Assembly solutions to overcome
10identified barriers. The Director may include municipal
11aggregation of customers and creating and designing customer
12choice programs as tools for retail market development.
13Solutions proposed by the Office to promote retail competition
14must also promote safe, reliable, and affordable electric
15service.
16    On or before June 30 of each year, the Director shall
17submit a report to the Commission, the General Assembly, and
18the Governor, that details specific accomplishments achieved
19by the Office in the prior 12 months in promoting retail
20electric competition and that suggests administrative and
21legislative action necessary to promote further improvements
22in retail electric competition. On or before June 30, 2021, and
23every year thereafter, the report shall include the information
24submitted to the Commission pursuant to paragraph (iii) of
25subsection (a) of Section 16-115A.
26(Source: P.A. 94-1095, eff. 2-2-07.)
 

 

 

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1    Section 10. The Consumer Fraud and Deceptive Business
2Practices Act is amended by changing Sections 2EE and 2DDD as
3follows:
 
4    (815 ILCS 505/2EE)
5    Sec. 2EE. Alternative retail electric supplier Electric
6service provider selection. An alternative retail electric
7supplier electric service provider shall not submit or execute
8a change in a subscriber's selection of a provider of electric
9service unless and until (i) the alternative retail electric
10supplier provider first discloses all material terms and
11conditions of the offer to the subscriber; (ii) the alternative
12retail electric supplier provider has obtained the
13subscriber's express agreement to accept the offer after the
14disclosure of all material terms and conditions of the offer;
15and (iii) the alternative retail electric supplier meets the
16requirements of Sections 16-115A and 16-115E of the Public
17Utilities Act; and (iv) the alternative retail electric
18supplier provider has confirmed the request for a change in
19accordance with one of the following procedures:
20    (a) The new alternative retail electric supplier electric
21service provider has obtained the subscriber's written or
22electronically signed authorization in a form that meets the
23following requirements:
24        (1) An alternative retail electric supplier electric

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10100SB0651sam001- 48 -LRB101 04244 RJF 57466 a

1    material terms and conditions of the service being offered,
2    including whether any early termination fees apply.
3    Submitting suppliers shall maintain and preserve the audio
4records containing the information set forth above for a
5minimum period of 2 years.
6    (d) Complaints may be filed with the Illinois Commerce
7Commission under this Section by a subscriber whose electric
8service has been provided by an alternative retail electric
9supplier electric service supplier in a manner not in
10compliance with this Section. If, after notice and hearing, the
11Commission finds that an alternative retail electric supplier
12electric service provider has violated this Section, the
13Commission may in its discretion do any one or more of the
14following:
15        (1) Require the violating alternative retail electric
16    supplier electric service provider to refund to the
17    subscriber charges collected in excess of those that would
18    have been charged by the subscriber's authorized electric
19    service provider.
20        (2) Require the violating alternative retail electric
21    supplier electric service provider to pay to the
22    subscriber's authorized electric supplier the amount the
23    authorized electric supplier would have collected for the
24    electric service. The Commission is authorized to reduce
25    this payment by any amount already paid by the violating
26    electric supplier to the subscriber's authorized provider

 

 

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1    for electric service.
2        (3) Require the violating electric subscriber to pay a
3    fine of up to $1,000 into the Public Utility Fund for each
4    repeated and intentional violation of this Section.
5        (4) Issue a cease and desist order.
6        (5) For a pattern of violation of this Section or for
7    intentionally violating a cease and desist order, revoke
8    the violating provider's certificate of service authority.
9    (d-5) A violation by an alternative retail electric
10supplier of Section 16-115A or 16-115E of the Public Utilities
11Act or the administrative rules adopted thereunder at 83 Ill.
12Adm. Code Part 412 constitutes a violation of this Section.
13    (e) For purposes of this Section, "electric service
14provider" shall have the meaning given that phrase in Section
156.5 of the Attorney General Act.
16    (f) For purposes of this Section, "alternative retail
17electric supplier" has the meaning given to it in Section
1816-102 of the Public Utilities Act.
19(Source: P.A. 95-700, eff. 11-9-07.)
 
20    (815 ILCS 505/2DDD)
21    Sec. 2DDD. Alternative gas suppliers.
22    (a) Definitions.
23        (1) "Alternative gas supplier" has the same meaning as
24    in Section 19-105 of the Public Utilities Act.
25        (2) "Gas utility" has the same meaning as in Section

 

 

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1    19-105 of the Public Utilities Act.
2    (b) It is an unfair or deceptive act or practice within the
3meaning of Section 2 of this Act for any person to violate any
4provision of this Section. A violation by an alternative gas
5supplier of Section 19-115 or 19-116 of the Public Utilities
6Act or the rules adopted thereunder at 83 Ill. Adm. Code Part
7551 also constitutes a violation of this Section.
8    (c) Solicitation.
9        (1) An alternative gas supplier shall not misrepresent
10    the affiliation of any alternative supplier with the gas
11    utility, governmental bodies, or consumer groups.
12        (2) If any sales solicitation, agreement, contract, or
13    verification is translated into another language and
14    provided to a customer, all of the documents must be
15    provided to the customer in that other language.
16        (3) An alternative gas supplier shall clearly and
17    conspicuously disclose the following information to all
18    customers:
19            (A) the prices, terms, and conditions of the
20        products and services being sold to the customer;
21            (B) where the solicitation occurs in person,
22        including through door-to-door solicitation, the
23        salesperson's name;
24            (C) the alternative gas supplier's contact
25        information, including the address, phone number, and
26        website;

 

 

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

 

 

10100SB0651sam001- 52 -LRB101 04244 RJF 57466 a

1has obtained the customer's express agreement to accept the
2offer after the disclosure of all material terms and conditions
3of the offer; and (iii) the alternative gas supplier meets the
4requirements of Sections 19-115 and 19-116 of the Public
5Utilities Act; and (iv) the alternative gas supplier has
6confirmed the request for a change in accordance with one of
7the following procedures:
8        (1) The alternative gas supplier has obtained the
9    customer's written or electronically signed authorization
10    in a form that meets the following requirements:
11            (A) An alternative gas supplier shall obtain any
12        necessary written or electronically signed
13        authorization from a customer for a change in natural
14        gas service by using a letter of agency as specified in
15        this Section. Any letter of agency that does not
16        conform with this Section is invalid.
17            (B) The letter of agency shall be a separate
18        document (or an easily separable document containing
19        only the authorization language described in item (E)
20        of this paragraph (1)) whose sole purpose is to
21        authorize a natural gas provider change. The letter of
22        agency must be signed and dated by the customer
23        requesting the natural gas provider change.
24            (C) The letter of agency shall not be combined with
25        inducements of any kind on the same document.
26            (D) Notwithstanding items (A) and (B) of this

 

 

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

 

 

10100SB0651sam001- 54 -LRB101 04244 RJF 57466 a

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

 

 

10100SB0651sam001- 55 -LRB101 04244 RJF 57466 a

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

 

 

10100SB0651sam001- 56 -LRB101 04244 RJF 57466 a

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

 

 

10100SB0651sam001- 57 -LRB101 04244 RJF 57466 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 supplied and the
6        material terms and conditions of the service being
7        offered, including whether any early termination fees
8        apply.
9        Submitting alternative gas suppliers shall maintain
10    and preserve the audio records containing the information
11    set forth above for a minimum period of 2 years.
12        (5) In the event that a customer enrolls for service
13    from an alternative gas supplier via an Internet website,
14    the alternative gas supplier shall obtain an
15    electronically signed letter of agency in accordance with
16    paragraph (1) of this subsection (d) and any customer
17    information shall be protected in accordance with all
18    applicable statutes and rules. In addition, an alternative
19    gas supplier shall provide the following when marketing via
20    an Internet website:
21            (A) The Internet enrollment website shall, at a
22        minimum, include:
23                (i) a copy of the alternative gas supplier's
24            customer contract, which clearly and conspicuously
25            discloses all terms and conditions; and
26                (ii) a conspicuous prompt for the customer to

 

 

10100SB0651sam001- 58 -LRB101 04244 RJF 57466 a

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

 

 

10100SB0651sam001- 59 -LRB101 04244 RJF 57466 a

1    for in paragraph (2) of this subsection (d).
2    Alternative gas suppliers must be in compliance with the
3provisions of this subsection (d) within 90 days after the
4effective date of this amendatory Act of the 95th General
5Assembly.
6    (e) Early Termination.
7        (1) Any agreement that contains an early termination
8    clause shall disclose the amount of the early termination
9    fee, provided that any early termination fee or penalty
10    shall not exceed $50 total, regardless of whether or not
11    the agreement is a multiyear agreement.
12        (2) In any agreement that contains an early termination
13    clause, an alternative gas supplier shall provide the
14    customer the opportunity to terminate the agreement
15    without any termination fee or penalty within 10 business
16    days after the date of the first bill issued to the
17    customer for products or services provided by the
18    alternative gas supplier. The agreement shall disclose the
19    opportunity and provide a toll-free phone number that the
20    customer may call in order to terminate the agreement.
21    (f) The alternative gas supplier shall provide each
22customer the opportunity to rescind its agreement without
23penalty within 10 business days after the date on the gas
24utility notice to the customer. The alternative gas supplier
25shall disclose to the customer all of the following:
26        (1) that the gas utility shall send a notice confirming

 

 

10100SB0651sam001- 60 -LRB101 04244 RJF 57466 a

1    the switch;
2        (2) that from the date the utility issues the notice
3    confirming the switch, the customer shall have 10 business
4    days before the switch will become effective;
5        (3) that the customer may contact the gas utility or
6    the alternative gas supplier to rescind the switch within
7    10 business days; and
8        (4) the contact information for the gas utility and the
9    alternative gas supplier.
10    The alternative gas supplier disclosure shall be included
11in its sales solicitations, contracts, and all applicable sales
12verification scripts.
13    (g) The provisions of this Section shall apply only to
14alternative gas suppliers serving or seeking to serve
15residential and small commercial customers and only to the
16extent such alternative gas suppliers provide services to
17residential and small commercial customers.
18(Source: P.A. 97-333, eff. 8-12-11.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".