Full Text of HJR0137 100th General Assembly
HJ0137 100TH GENERAL ASSEMBLY |
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| 1 | | HOUSE JOINT RESOLUTION
| 2 | | WHEREAS, Attorney General Lisa Madigan initiated Senate | 3 | | Bill 1531 to increase oversight of alternative retail electric | 4 | | and alternative gas suppliers and to guard against aggressive | 5 | | and misleading marketing and sales practices in the competitive | 6 | | energy supply market; and
| 7 | | WHEREAS, Currently in Illinois, there are nearly 55 | 8 | | alternative retail electric suppliers that are authorized to | 9 | | sell electricity to residential customers; and
| 10 | | WHEREAS, According to the Illinois Commerce Commission, | 11 | | alternative retail electric supplier customers in Illinois as a | 12 | | whole paid more than $198 million more for electricity than | 13 | | traditional utility customers from June 1, 2016 through May 31, | 14 | | 2017 and, statewide, residential, and small commercial | 15 | | customers enrolled with alternative retail electric suppliers | 16 | | have paid almost $400 million more in electricity costs in the | 17 | | last three years; and | 18 | | WHEREAS, According to the Attorney General, nearly all | 19 | | customers that switch to alternative retail electric or | 20 | | alternative gas suppliers pay more for their energy bills than | 21 | | traditional utility customers, and residential customers do | 22 | | not have the ability to determine whether a company's |
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| 1 | | money-saving claims are true; and | 2 | | WHEREAS, Allegations exist that certain alternative retail | 3 | | electric and alternative gas suppliers frequently target older | 4 | | citizens, low-income customers, and individuals for whom | 5 | | English is a second language and use bait and switch marketing | 6 | | tactics where they entice consumers with savings claims and low | 7 | | teaser rates and then end up charging consumers up to three | 8 | | times the traditional utility rate; and | 9 | | WHEREAS, The goal of the legislation is to rein in bad | 10 | | actors in the competitive energy supply industry who use | 11 | | aggressive and misleading marketing practices to lure people | 12 | | into paying more than they need to for their electricity and to | 13 | | create transparency and equip consumers with meaningful | 14 | | information so that they can make educated decisions about | 15 | | energy supply service; and | 16 | | WHEREAS, Senate Bill 1531 intends to improve enforcement | 17 | | actions against alternative retail energy suppliers' unlawful | 18 | | and deceptive marketing practices by giving the Attorney | 19 | | General's Office additional legal tools under the Illinois | 20 | | Consumer Fraud Act; and | 21 | | WHEREAS, Senate Bill 1531 intends to increase transparency | 22 | | around rate pricing by requiring alternative retail electric |
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| 1 | | suppliers and alternative gas suppliers to include a | 2 | | "price-to-compare" utility supply rate on all marketing | 3 | | materials, during phone or door-to-door solicitations and on | 4 | | every customer's utility bill; and | 5 | | WHEREAS, The legislation will require disclosure of price | 6 | | changes and will prevent suppliers from automatically renewing | 7 | | a customer's contract without the customer affirmatively | 8 | | opting-in to new terms; and | 9 | | WHEREAS, Alternative retail electric and alternative gas | 10 | | suppliers will also be required to submit their rates to the | 11 | | Illinois Commerce Commission and the Attorney General's Office | 12 | | quarterly under this legislation; and | 13 | | WHEREAS, The legislation intends to protect public energy | 14 | | assistance funds by ensuring that Low-Income Home Energy | 15 | | Assistance Program and the Percentage of Income Payment Plan | 16 | | funds do not go toward paying the higher prices for electric | 17 | | and gas supply that alternative retail electric or alternative | 18 | | gas suppliers charge; and | 19 | | WHEREAS, Senate Bill 1531 is supported by a coalition of | 20 | | consumer advocates including AARP, Illinois PIRG, Center for | 21 | | Changing Lives, Citizen Action, Citizens Utility Board, | 22 | | Community Organizing and Family Issues (COFI), Heartland |
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| 1 | | Alliance for Human Needs & Human Rights, Housing Action | 2 | | Illinois, Pilsen Alliance, and the Environmental Law and Policy | 3 | | Center; and | 4 | | WHEREAS, The legislation has also received support from the | 5 | | City of Chicago, the Spanish Community Center, the Inner-City | 6 | | Muslim Action Network, LUCHA, and Preservation of Affordable | 7 | | Housing (POAH); and | 8 | | WHEREAS, The Illinois Competitive Energy Association, the | 9 | | Retail Energy Supply Association, and other competitive energy | 10 | | suppliers, who provide consumers with customized energy | 11 | | products and services in addition to electric supply service, | 12 | | support stronger enforcement measures to root out unscrupulous | 13 | | suppliers from the competitive energy market, additional rate | 14 | | disclosure requirements, and further consumer education and | 15 | | protection improvements; and
| 16 | | WHEREAS, The Illinois Commerce Commission is a | 17 | | quasi-judicial body responsible for regulating several | 18 | | industries, as directed by the Illinois General Assembly, | 19 | | including licensing alternative retail electric and | 20 | | alternative gas suppliers, and regulating their marketing and | 21 | | sales practices; and
| 22 | | WHEREAS, The Illinois Commerce Commission's mission is to |
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| 1 | | promote the development of an effectively competitive | 2 | | electricity market that operates efficiently and is equitable | 3 | | to all consumers consistent with the Electric Service Customer | 4 | | Choice and Rate Relief Law of 1997, the Retail Electric | 5 | | Competition Act of 2006, the Alternative Gas Supplier Law; the | 6 | | Public Utilities Act, and Commission Rules; and
| 7 | | WHEREAS, The Illinois Commerce Commission provides | 8 | | analysis, policy development, public safety, and enforcement | 9 | | activities related to electric and natural gas companies; | 10 | | therefore, be it
| 11 | | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE | 12 | | HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE SENATE | 13 | | CONCURRING HEREIN, that the Illinois Commerce Commission shall | 14 | | study the provisions of and circumstances surrounding Senate | 15 | | Bill 1531 and any other pertinent pending or proposed | 16 | | legislation; and be it further | 17 | | RESOLVED, That the Illinois Commerce Commission shall | 18 | | conduct at least three public meetings in which comments and | 19 | | proposals can be presented that address the concerns and | 20 | | allegations regarding the alternative retail electric and | 21 | | alternative gas suppliers and competitive energy markets from | 22 | | the Attorney General's Office, the aforementioned coalition of | 23 | | consumer advocates, the Illinois Competitive Energy |
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| 1 | | Association, the Retail Energy Supply Association, other | 2 | | competitive energy suppliers, and any other interested party; | 3 | | and be it further
| 4 | | RESOLVED, That the Illinois Commerce Commission shall | 5 | | submit its findings, conclusions, and recommendations, either | 6 | | through changes in future legislation, or Commission Rules, or | 7 | | Commission Docketed Proceedings, in a report to the Illinois | 8 | | General Assembly on or before January 9, 2019; and be it | 9 | | further | 10 | | RESOLVED, That the report filed with the General Assembly | 11 | | shall be filed with the Clerk of the House of Representatives | 12 | | and the Secretary of the Senate in electronic form only, in the | 13 | | manner that the Clerk and Secretary shall direct.
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