SB1896 101ST GENERAL ASSEMBLY

LRB101 07787 JRG 52837 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1896

Introduced 2/15/2019, by Sen. Don Harmon

SYNOPSIS AS INTRODUCED:

220 ILCS 5/4-604 new

Amends the Public Utilities Act. Provides for licensure of persons and entities engaged in the procurement or sale of retail electricity supply, retail natural gas supply, energy efficiency products or services, or demand response services for third parties as energy services agents and energy services entities and for licensure of energy services course providers by the Illinois Commerce Commission. Provides for mandatory disclosures by energy services agents or energy services entities. Requires all energy services agents engaged in the marketing of retail electricity supply, retail natural gas supply, energy efficiency products or services, or demand response services, before providing any sales information to a potential customer, to disclose that they are not employed by the local utility within the territory they are selling retail electricity supply, retail natural gas supply, energy efficiency products, or demand response services. Requires the Commission to establish procedures for licensure as an energy services agent, energy services entity, or energy services course provider, and specifies certain criteria. Provides that the Commission has jurisdiction over disciplinary proceedings and complaints for violations. Requires the Commission to maintain a list of disciplined and suspended energy services agents and a list of all disciplined, suspended, or revoked energy services entities.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Public Utilities Act is amended by adding Section 4-604 as follows:

(220 ILCS 5/4-604 new)

Sec. 4-604. Licensure of persons and entities engaged in the procurement or sale of retail electricity supply, retail natural gas supply, energy efficiency products or services, or demand response services for third parties.

(a) In this Section:

"Energy services agent" means a person that attempts to procure or sell retail electric service, retail natural gas supply, energy efficiency products or services, or demand response services for third parties to a residential or small business customer in this State.

"Energy services entity" means a corporation, a company, a partnership, or another business entity that attempts to procure or sell retail electric service, retail natural gas supply, energy efficiency products or services, or demand response services for third parties to a residential or small business customer in this State.

"Energy services agent" and "energy services entity" do not include the following:

(1) the Illinois Power Agency or any of its employees;

(2) an alternative retail electric supplier as defined in Section 16-102 that offers retail electric service, energy efficiency products or services, or demand response services or any of the alternative retail electric supplier's employees;

(3) an alternative gas supplier as defined in Section 19-105 of this Act that offers gas service, energy efficiency products or services, or demand response services or any of the alternative gas supplier's employees;

(4) a person or entity representing a municipal power agency as defined in Section 11-119.1-3 of the Illinois Municipal Code within its service territory;

(5) a person or entity representing an electrical cooperative as defined in Section 3.4 of the Electric Suppliers Act within its service territory;

(6) a person or entity certified as an energy efficiency installer under Section 16-128B of this Act;

(7) a person or entity licensed as an agent, broker, and consultant engaged in the procurement or sale of retail electricity for third parties under Section 16-115C of this Act; or

(8) a person or entity licensed under Section 16-128A of this Act with regard to distributed generation facilities.

"Energy services course provider" means a business entity that provides training course materials and a training program to energy services agents. Alternative retail electric suppliers and alternative gas suppliers are eligible to be an energy services course provider if the training course materials and training program are approved by the Commission.

"Residential customer" has the meaning given to that term in Section 16-103.1 of this Act with respect to electric service and in Section 19-105 of this Act with respect to natural gas service.

"Small commercial customer" has the meaning given to that term in Section 16-102 of this Act with respect to electric service and in Section 19-105 of this Act with respect to natural gas service.

(b) The purpose of this Section is to adopt licensing and code of conduct rules in a competitive energy market where retail electricity supply, retail natural gas supply, energy efficiency, or demand response products are sold in order to protect Illinois consumers from unfair or deceptive acts or practices and to provide persons acting as energy services agents engaged in the sale to residential and small commercial customer of retail electricity supply, retail natural gas supply, energy efficiency products, or demand response services for third parties with notice of the illegality of those acts or practices.

(c) All energy services agents engaged in the marketing of retail electricity supply, retail natural gas supply, energy efficiency products or services, or demand response services, before providing any sales information to a potential customer, shall disclose that they are not employed by the local utility within the territory they are selling retail electricity supply, retail natural gas supply, energy efficiency products, or demand response services.

(d) Beginning one year after the effective date of this amendatory Act of the 101st General Assembly, no person or entity shall act as an energy services agent or as an energy services entity engaged in the procurement or sale of retail electricity supply, retail natural gas supply, energy efficiency products or services, or demand response services for third parties unless that person or entity is licensed by the Commission under this Section. Any individual or entity found by the Commission in violation of this provision may be prohibited from being licensed for up to 2 years.

(e) The Commission shall establish procedures for licensure as an energy services agent, which shall include all of the following criteria:

(1) Certification of completion of an energy course by an energy course provider as long as the course, the course fee, and the provider have been approved by the Commission.

(2) Payment to the Commission for deposit into the Public Utility Fund an annual fee of no more than $50 to defray the cost of administration by the Commission.

(3) Annual certification of course completion and license renewal.

(4) Failure to comply with the Consumer Fraud and Deceptive Practices Act or any related consumer protection provisions for sales as determined by the Commission, and the provisions of this Section shall subject an energy services agent to the discipline procedures of the Commission.

(f) The Commission shall create requirements for licensure as an energy services entity, which shall include all of the following criteria:

(1) An energy services entity shall ensure and certify the completion of an annual energy course through an energy course provider. The certification must include all employees acting as an energy services agent and contractors acting as an energy services agent including any employee or contractor with direct supervisory responsibility of energy services agents.

(2) Certification by the energy services entity that the entity and all energy services agents it employs or contracts with will comply with all rules of the Commission with regard to consumer protection as it relates to the retail electricity supply, retail natural gas supply, energy efficiency products, or demand response services being sold.

(3) Certification by the entity that the entity and all energy services agents it employs or contracts with shall comply with the requirements of Sections 2EE, 2FF, 2GG, and 2HH of the Consumer Fraud and Deceptive Business Practices Act.

(4) Payment to the Commission for deposit into the Public Utility Fund an annual fee of no less than $250 to defray the cost of administration by the Commission.

(5) As part of the annual license application or renewal, an energy services entity shall file a report detailing: (1) a list of employees and contractors that are energy services agents; and (2) a list, by agent, of complaints filed against the entity's energy services agents and the action taken to resolve such complaints.

A public redacted version of the verified report may be submitted to the Commission along with a proprietary version. The public redacted version may redact from the verified report the name or names of the energy services agents. The information shall be afforded proprietary treatment for 2 years after the date of the filing of the verified report.

(6) Failure to comply with the provisions of this Section shall subject an energy services entity to the discipline procedures of the Commission.

(7) Any energy services entity that knowingly allows an employee or contractor to sell retail electricity supply, retail natural gas supply, energy efficiency products, or demand response services without a valid license, hides the ownership of any individual that has been the subject of a disciplinary action under this Section, or awards false certificates or licenses to unqualified or suspended energy services agents shall be subject to Commission discipline.

(g) The Commission shall establish procedures for licensure, course administration, course subject matter approval, and licensure renewal by energy services course providers.

The Commission may act as the energy services course provider or establish a process to allow a separate entity to act as an energy services course provider.

(1) Courses must be offered at a minimum online; an energy services course provider may also establish a physical location for training.

(2) Courses must not take more than one day to complete.

(3) Courses shall separately present consumer protection requirements and basic information about energy products related to retail electricity supply, retail natural gas supply, energy efficiency products, or demand response services as applicable to that energy services agent but need not contain specific products or services, unless used as examples.

(4) A license shall only be issued for the specific course. However, the Commission may issue a master license which covers retail electricity supply, retail natural gas supply, energy efficiency products, or demand response services in total.

(5) Each course taken by an energy services agent or applicant a unique identifier or pin number associated with the applicant to verify completion.

(6) The Commission may delegate registration of course completion certificates to energy services course providers provided there is a master registry maintained by the Commission.

(7) Payment to the Commission, or if the Commission approves the use of an energy services course provider then to the energy services course provider, an annual fee of no more than $50 per energy services agent license and $50 per renewal license to defray the cost of administration.

(8) Any energy services course provider that knowingly awards licenses or gives a passing grade to unqualified or suspended energy services agents shall be subject to Commission discipline.

(h) The Commission jurisdiction over disciplinary proceedings and complaints for violations of this Section. For any energy services agent or energy services course provider, the findings of a violation of this Section by the Commission shall result in a progressive disciplinary scale. For a first violation, the Commission may, in its discretion, suspend the license of the person or entity so disciplined for a period of no less than one month. For a second violation within a 5-year period, the Commission shall suspend the license for the person or entity so disciplined for a period of not less than 6 months. For a third or subsequent violation within a 5-year period, the Commission shall suspend the license of the disciplined person or entity for a period of not less than 2 years.

The Commission has jurisdiction over disciplinary proceedings and complaints for violations of this Section. For any energy services agent, energy services entity, or energy services course provider, for a first violation, the Commission may, in its discretion, suspend the license of the person or entity so disciplined for a period of not less than one month. For a second violation within a 5-year period, the Commission shall suspend the license for the person or entity so disciplined for a period of not less than 6 months. For a third or subsequent violation within a 5-year period, the Commission shall suspend the license of the disciplined person or entity for a period of not less than 2 years.

The Commission shall maintain a list of disciplined and suspended energy services agents and a list of all disciplined, suspended, or revoked energy services entities. This list shall be made available to any alternative retail electric supplier or alternative gas supplier upon request.