[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Enrolled ] | [ House Amendment 001 ] |
| [ Senate Amendment 001 ] | [ Senate Amendment 002 ] |
92_HB4667eng HB4667 Engrossed LRB9212076JSpc 1 AN ACT in relation to utilities. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Public Utilities Act is amended by 5 changing Sections 19-105, 19-110, 19-115, and 19-120 and 6 adding Sections 19-125, 19-130, and 19-135 as follows: 7 (220 ILCS 5/19-105) 8 Sec. 19-105. Definitions. For the purposes of this 9 Article, the following terms shall be defined as set forth in 10 this Section. 11 "Alternative gas supplier" means every person, 12 cooperative, corporation, municipal corporation, company, 13 association, joint stock company or association, firm, 14 partnership, individual, or other entity, their lessees, 15 trustees, or receivers appointed by any court whatsoever, 16 that offers gas for sale, lease, or in exchange for other 17 value received to one or more customers, or that engages in 18 the furnishing of gas to one or more customers, and shall 19 include affiliated interests of a gas utility, resellers, 20 aggregators and marketers, but shall not include (i) gas 21 utilities (or any agent of the gas utility to the extent the 22 gas utility provides tariffed services to customers through 23 an agent); (ii) public utilities that are owned and operated 24 by any political subdivision, public institution of higher 25 education or municipal corporation of this State, or public 26 utilities that are owned by a political subdivision, public 27 institution of higher education, or municipal corporation and 28 operated by any of its lessees or operating agents; (iii) 29 residential natural gas cooperatives that are not-for-profit 30 corporations established for the purpose of administering and 31 operating, on a cooperative basis, the furnishing of natural HB4667 Engrossed -2- LRB9212076JSpc 1 gas to residences for the benefit of their members who are 2 residential consumers of natural gas; and (iv) the ownership 3 or operation of a facility that sells compressed natural gas 4 at retail to the public for use only as a motor vehicle fuel 5 and the selling of compressed natural gas at retail to the 6 public for use only as a motor vehicle fuel. 7 "Gas utility" means a public utility, as defined in 8 Section 3-105 of this Act, that has a franchise, license, 9 permit, or right to furnish or sell gas or transportation 10 services to customers within a service area. 11 "Residential customer" means a customer who receives gas 12 utility service for household purposes distributed to a 13 dwelling of 2 or fewer units which is billed under a 14 residential rate or gas utility service for household 15 purposes distributed to a dwelling unit or units which is 16 billed under a residential rate and is registered by a 17 separate meter for each dwelling unit. 18 "Service area" means (i) the geographic area within which 19 a gas utility was lawfully entitled to provide gas to 20 customers as of the effective date of this amendatory Act of 21 the 92nd General Assembly and includes (ii) the location of 22 any customer to which the gas utility was lawfully providing 23 gas utility services on such effective date. 24 "Small commercial customer" means a nonresidential retail 25 customer of a natural gas utility who is identified by the 26 alternative gas supplier, prior to becoming a customer of the 27 alternative gas supplier, as consuming 5,000 or fewer therms 28 of natural gas during the previous year; provided that any 29 alternative gas supplier may remove the customer from 30 designation as a "small commercial customer" if the customer 31 consumes more than 5,000 therms of natural gas in any 32 calendar year after becoming a customer of the alternative 33 gas supplier. 34 "Tariffed service" means a service provided to customers HB4667 Engrossed -3- LRB9212076JSpc 1 by a gas utility as defined by its rates on file with the 2 Commission pursuant to the provisions of Article IX of this 3 Act. 4 "Transportation services" means those services provided 5 by the gas utility that are necessary in order for the 6 storage, transmission and distribution systems to function so 7 that customers located in the gas utility's service area can 8 receive gas from suppliers other than the gas utility and 9 shall include, without limitation, standard metering and 10 billing services. 11 (Source: P.A. 92-529, eff. 2-8-02.) 12 (220 ILCS 5/19-110) 13 Sec. 19-110. Certification of alternative gas suppliers. 14 (a) The provisions of this Section shall apply only to 15 alternative gas suppliers serving or seeking to serve 16 residential or small commercial customers and only to the 17 extent such alternative gas suppliers provide services to 18 residential or small commercial customers. 19 (b) An alternative gas supplier must obtain a 20 certificate of service authority from the Commission in 21 accordance with this Section before serving any customer or 22 other user located in this State. An alternative gas 23 supplier may request, and the Commission may grant, a 24 certificate of service authority for the entire State or for 25 a specified geographic area of the State. A person, 26 corporation, or other entity acting as an alternative gas 27 supplier on the effective date of this amendatory Act of the 28 92nd General Assembly shall have 180 days from the effective 29 date of this amendatory Act of the 92nd General Assembly to 30 comply with the requirements of this Section in order to 31 continue to operate as an alternative gas supplier. 32 (c) An alternative gas supplier seeking a certificate of 33 service authority shall file with the Commission a verified HB4667 Engrossed -4- LRB9212076JSpc 1 application containing information showing that the applicant 2 meets the requirements of this Section. The alternative gas 3 supplier shall publish notice of its application in the 4 official State newspaper within 10 days following the date of 5 its filing. No later than 45 days after the application is 6 properly filed with the Commission, and such notice is 7 published, the Commission shall issue its order granting or 8 denying the application. 9 (d) An application for a certificate of service 10 authority shall identify the area or areas in which the 11 applicant intends to offer service and the types of services 12 it intends to offer. Applicants that seek to serve 13 residential or small commercial customers within a geographic 14 area that is smaller than a gas utility's service area shall 15 submit evidence demonstrating that the designation of this 16 smaller area does not violate Section 19-115. An applicant 17 may state in its application for certification any 18 limitations that will be imposed on the number of customers 19 or maximum load to be served. 20 (e) The Commission shall grant the application for a 21 certificate of service authority if it makes the findings set 22 forth in this subsection based on the verified application 23 and such other information as the applicant may submit. 24 (1) That the applicant possess sufficient 25 technical, financial, and managerial resources and 26 abilities to provide the service for which it seeks a 27 certificate of service authority. In determining the 28 level of technical, financial, and managerial resources 29 and abilities which the applicant must demonstrate, the 30 Commission shall consider the characteristics, including 31 the size and financial sophistication of the customers 32 that the applicant seeks to serve, and shall consider 33 whether the applicant seeks to provide gas using 34 property, plant, and equipment that it owns, controls, or HB4667 Engrossed -5- LRB9212076JSpc 1 operates. 2 (2) That the applicant will comply with all 3 applicable federal, State, regional, and industry rules, 4 policies, practices, and procedures for the use, 5 operation, and maintenance of the safety, integrity, and 6 reliability of the gas transmission system. 7 (3) That the applicant will comply with such 8 informational or reporting requirements as the Commission 9 may by rule establish. 10 (4) That the area to be served by the applicant and 11 any limitations it proposes on the number of customers or 12 maximum amount of load to be served meet the provisions 13 of Section 19-115, provided, that if the applicant seeks 14 to serve an area smaller than the service area of a gas 15 utility or proposes other limitations on the number of 16 customers or maximum amount of load to be served, the 17 Commission can extend the time for considering such a 18 certificate request by up to 90 days, and can schedule 19 hearings on such a request. 20 (5) That the applicant will comply with all other 21 applicable laws and rules. 22 (f) The Commission shall have the authority to 23 promulgate rules to carry out the provisions of this Section. 24 Within 30 days after the effective date of this amendatory 25 Act of the 92nd General Assembly, the Commission shall adopt 26 an emergency rule or rules applicable to the certification of 27 those gas suppliers that seek to serve residential customers. 28 Within 180 days of the effective date of this amendatory Act 29 of the 92nd General Assembly, the Commission shall adopt 30 rules that specify criteria which, if met by any such 31 alternative gas supplier, shall constitute the demonstration 32 of technical, financial, and managerial resources and 33 abilities to provide service required by item (1) of 34 subsection (e) of this Section, such as a requirement to post HB4667 Engrossed -6- LRB9212076JSpc 1 a bond or letter of credit, from a responsible surety or 2 financial institution, of sufficient size for the nature and 3 scope of the services to be provided, demonstration of 4 adequate insurance for the scope and nature of the services 5 to be provided, and experience in providing similar services 6 in other jurisdictions. 7 (Source: P.A. 92-529, eff. 2-8-02.) 8 (220 ILCS 5/19-115) 9 Sec. 19-115. Obligations of alternative gas suppliers. 10 (a) The provisions of this Section shall apply only to 11 alternative gas suppliers serving or seeking to serve 12 residential or small commercial customers and only to the 13 extent such alternative gas suppliers provide services to 14 residential or small commercial customers. 15 (b) An alternative gas supplier shall: 16 (1) comply with the requirements imposed on public 17 utilities by Sections 8-201 through 8-207, 8-301, 8-505 18 and 8-507 of this Act, to the extent that these Sections 19 have application to the services being offered by the 20 alternative gas supplier; and 21 (2) continue to comply with the requirements for 22 certification stated in Section 19-110. 23 (c) An alternative gas supplier shall obtain verifiable 24 authorization from a customer, in a form or manner approved 25 by the Commission, before the customer is switched from 26 another supplier. 27 (d) No alternative gas supplier shall: 28 (1) enter into or employ any arrangements which 29 have the effect of preventing any customer from having 30 access to the services of the gas utility in whose 31 service area the customer is located; or 32 (2) charge customers for such access. 33 (e) An alternative gas supplier that is certified to HB4667 Engrossed -7- LRB9212076JSpc 1 serve residential or small commercial customers shall not: 2 (1) deny service to a customer or group of 3 customers nor establish any differences as to prices, 4 terms, conditions, services, products, facilities, or in 5 any other respect, whereby such denial or differences are 6 based upon race, gender, or income; or 7 (2) deny service based on locality, nor establish 8 any unreasonable difference as to prices, terms, 9 conditions, services, products, or facilities as between 10 localities. 11 (f) An alternative gas supplier shall comply with the 12 following requirements with respect to the marketing, 13 offering, and provision of products or services: 14 (1) Any marketing materials which make statements 15 concerning prices, terms, and conditions of service shall 16 contain information that adequately discloses the prices, 17 terms and conditions of the products or services. 18 (2) Before any customer is switched from another 19 supplier, the alternative gas supplier shall give the 20 customer written information that adequately discloses, 21 in plain language, the prices, terms, and conditions of 22 the products and services being offered and sold to the 23 customer. 24 (3) The alternative gas supplier shall provide to 25 the customer: 26 (A) accurate, timely, and itemized billing 27 statements that describe the products and services 28 provided to the customer and their prices and that 29 specify the gas consumption amount and any service 30 charges and taxes; provided that this item (f)(3)(A) 31 does not apply to small commercial customers;and32 (B) an additional statement, at least 33 annually, that adequately discloses the average 34 monthly prices, and the terms and conditions, of the HB4667 Engrossed -8- LRB9212076JSpc 1 products and services sold to the customer; provided 2 that this item (f)(3)(B) does not apply to small 3 commercial customers;.4 (C) refunds of any deposits with interest 5 within 30 days after the date that the customer 6 changes gas suppliers or discontinues service if the 7 customer has satisfied all of his or her outstanding 8 financial obligations to the alternative gas 9 supplier at an interest rate set by the Commission 10 which shall be the same as that required of gas 11 utilities; and 12 (D) refunds, in a timely fashion, of all 13 undisputed overpayments upon the oral or written 14 request of the customer. 15 (g) An alternative gas supplier may limit the overall 16 size or availability of a service offering by specifying one 17 or more of the following: 18 (1) a maximum number of customers and maximum 19 amount of gas load to be served; 20 (2) time period during which the offering will be 21 available; or 22 (3) other comparable limitation, but not including 23 the geographic locations of customers within the area 24 which the alternative gas supplier is certificated to 25 serve. 26 The alternative gas supplier shall file the terms and 27 conditions of such service offering including the applicable 28 limitations with the Commission prior to making the service 29 offering available to customers. 30 (h) Nothing in this Section shall be construed as 31 preventing an alternative gas supplier that is an affiliate 32 of, or which contracts with, (i) an industry or trade 33 organization or association, (ii) a membership organization 34 or association that exists for a purpose other than the HB4667 Engrossed -9- LRB9212076JSpc 1 purchase of gas, or (iii) another organization that meets 2 criteria established in a rule adopted by the Commission from 3 offering through the organization or association services at 4 prices, terms and conditions that are available solely to the 5 members of the organization or association. 6 (Source: P.A. 92-529, eff. 2-8-02.) 7 (220 ILCS 5/19-120) 8 Sec. 19-120. Commission oversight of services provided 9 by gas suppliers. 10 (a) The provisions of this Section shall apply only to 11 alternative gas suppliers serving or seeking to serve 12 residential or small commercial customers and only to the 13 extent such alternative gas suppliers provide services to 14 residential or small commercial customers. 15 (b) The Commission shall have jurisdiction in accordance 16 with the provisions of Article X of this Act to entertain and 17 dispose of any complaint against any alternative gas supplier 18 alleging that: 19 (1) the alternative gas supplier has violated or is 20 in nonconformance with any applicable provisions of 21 Section 19-110 or Section 19-115; 22 (2) an alternative gas supplier has failed to 23 provide service in accordance with the terms of its 24 contract or contracts with a customer or customers; 25 (3) the alternative gas supplier has violated or is 26 in nonconformance with the transportation services tariff 27 of, or any of its agreements relating to transportation 28 services with, the gas utility or municipal system 29 providing transportation services; or 30 (4) the alternative gas supplier has violated or 31 failed to comply with the requirements of Sections 8-201 32 through 8-207, 8-301, 8-505, or 8-507 of this Act as made 33 applicable to alternative gas suppliers. HB4667 Engrossed -10- LRB9212076JSpc 1 (c) The Commission shall have authority after notice and 2 hearing held on complaint or on the Commission's own motion 3 to: 4 (1) order an alternative gas supplier to cease and 5 desist, or correct, any violation of or nonconformance 6 with the provisions of Section 19-110 or 19-115; 7 (2) impose financial penalties for violations of or 8 nonconformances with the provisions of Section 19-110 or 9 19-115, not to exceed (i) $10,000 per occurrence or (ii) 10 $30,000 per day for those violations or nonconformances 11 which continue after the Commission issues a 12 cease-and-desist order; and 13 (3) alter, modify, revoke, or suspend the 14 certificate of service authority of an alternative gas 15 supplier for substantial or repeated violations of or 16 nonconformances with the provisions of Section 19-110 or 17 19-115. 18 (Source: P.A. 92-529, eff. 2-8-02.) 19 (220 ILCS 5/19-125 new) 20 Sec. 19-125. Consumer education. 21 (a) The Commission shall make available upon request and 22 at no charge, and shall make available to the public on the 23 Internet through the State of Illinois World Wide Web site: 24 (1) a list of all certified alternative gas 25 suppliers serving residential and small commercial 26 customers within the service area of each gas utility 27 including, in the case of the Internet, computer links to 28 available web sites of the certified alternative gas 29 suppliers; 30 (2) a list of all certified alternative gas 31 suppliers serving residential or small commercial 32 customers that have been found in the last 3 years by the 33 Commission pursuant to Section 10-108 to have failed to HB4667 Engrossed -11- LRB9212076JSpc 1 provide service in accordance with this Act; 2 (3) guidelines to assist customers in determining 3 which gas supplier is most appropriate for each customer; 4 and 5 (4) Internet links to providers of information that 6 enables customers to compare prices and services of gas 7 utilities and alternative gas suppliers, if and when that 8 information is available. 9 (b) In any service area where customers are able to 10 choose their natural gas supplier, the Commission shall 11 require gas utilities and alternative gas suppliers to inform 12 customers of how they may contact the Commission in order to 13 obtain information about the customer choice program. 14 (220 ILCS 5/19-130 new) 15 Sec. 19-130. Commission study and report. Beginning in 16 2003, and ending in 2007, the Commission shall prepare an 17 annual report regarding the development of natural gas 18 markets in Illinois. The report shall be filed by July 1 of 19 each year with the Joint Committee on Legislative Support 20 Services of the General Assembly and the Governor and shall 21 be publicly available. The report shall include, at a 22 minimum, the following information: 23 (1) the aggregate annual demand of retail natural 24 gas customers in the State of Illinois in the preceding 25 calendar year; 26 (2) the total annual therms delivered and sold to 27 retail customers in the State of Illinois by each gas 28 utility and each alternative gas supplier in the 29 preceding calendar year; 30 (3) the percentage of therms delivered and sold to 31 customers in the State of Illinois in the preceding 32 calendar year by each gas utility and each alternative 33 gas supplier; HB4667 Engrossed -12- LRB9212076JSpc 1 (4) the total number of customers in the State of 2 Illinois served in the preceding calendar year by each 3 gas utility and each alternative gas supplier; 4 (5) an analysis of the status and development of 5 the retail natural gas market in the State of Illinois; 6 and 7 (6) any other information the Commission considers 8 significant in assessing the development of gas markets 9 in the State of Illinois. 10 (220 ILCS 5/19-135 new) 11 Sec. 19-135. Single billing. It is the intent of the 12 General Assembly that in any service area where customers are 13 able to choose their natural gas supplier, a single billing 14 option shall be offered to customers for both the services 15 provided by the alternative gas supplier and the delivery 16 services provided by the gas utility. A gas utility shall 17 file a tariff pursuant to Article IX of this Act that allows 18 alternative gas suppliers to issue single bills to 19 residential and small commercial customers for both the 20 services provided by the alternative gas supplier and the 21 delivery services provided by the gas utility to customers; 22 provided that if a form of single billing is being offered in 23 a gas utility's service area on the effective date of this 24 amendatory Act of the 92nd General Assembly, that form of 25 single billing shall remain in effect unless and until 26 otherwise ordered by the Commission. 27 Section 99. Effective date. This Act takes effect upon 28 becoming law.