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Public Act 92-0529
SB694 Enrolled LRB9205928JSpc
AN ACT in relation to utilities.
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
Article XIX as follows:
(220 ILCS 5/Art. XIX heading new)
ARTICLE XIX. ALTERNATIVE GAS SUPPLIER LAW
(220 ILCS 5/19-100 new)
Sec. 19-100. Short title. This Article may be cited as
the Alternative Gas Supplier Law.
(220 ILCS 5/19-105 new)
Sec. 19-105. Definitions. For the purposes of this
Article, the following terms shall be defined as set forth
in this Section.
"Alternative gas supplier" means every person,
cooperative, corporation, municipal corporation, company,
association, joint stock company or association, firm,
partnership, individual, or other entity, their lessees,
trustees, or receivers appointed by any court whatsoever,
that offers gas for sale, lease, or in exchange for other
value received to one or more customers, or that engages in
the furnishing of gas to one or more customers, and shall
include affiliated interests of a gas utility, resellers,
aggregators and marketers, but shall not include (i) gas
utilities (or any agent of the gas utility to the extent the
gas utility provides tariffed services to customers through
an agent); (ii) public utilities that are owned and operated
by any political subdivision, public institution of higher
education or municipal corporation of this State, or public
utilities that are owned by a political subdivision, public
institution of higher education, or municipal corporation and
operated by any of its lessees or operating agents; (iii)
residential natural gas cooperatives that are not-for-profit
corporations established for the purpose of administering and
operating, on a cooperative basis, the furnishing of natural
gas to residences for the benefit of their members who are
residential consumers of natural gas; and (iv) the ownership
or operation of a facility that sells compressed natural gas
at retail to the public for use only as a motor vehicle fuel
and the selling of compressed natural gas at retail to the
public for use only as a motor vehicle fuel.
"Gas utility" means a public utility, as defined in
Section 3-105 of this Act, that has a franchise, license,
permit, or right to furnish or sell gas or transportation
services to customers within a service area.
"Residential customer" means a customer who receives gas
utility service for household purposes distributed to a
dwelling of 2 or fewer units which is billed under a
residential rate or gas utility service for household
purposes distributed to a dwelling unit or units which is
billed under a residential rate and is registered by a
separate meter for each dwelling unit.
"Service area" means (i) the geographic area within which
a gas utility was lawfully entitled to provide gas to
customers as of the effective date of this amendatory Act of
the 92nd General Assembly and includes (ii) the location of
any customer to which the gas utility was lawfully providing
gas utility services on such effective date.
"Tariffed service" means a service provided to customers
by a gas utility as defined by its rates on file with the
Commission pursuant to the provisions of Article IX of this
Act.
"Transportation services" means those services provided
by the gas utility that are necessary in order for the
storage, transmission and distribution systems to function so
that customers located in the gas utility's service area can
receive gas from suppliers other than the gas utility and
shall include, without limitation, standard metering and
billing services.
(220 ILCS 5/19-110 new)
Sec. 19-110. Certification of alternative gas suppliers.
(a) The provisions of this Section shall apply only to
alternative gas suppliers serving or seeking to serve
residential customers and only to the extent such alternative
gas suppliers provide services to residential customers.
(b) An alternative gas supplier must obtain a
certificate of service authority from the Commission in
accordance with this Section before serving any customer or
other user located in this State. An alternative gas
supplier may request, and the Commission may grant, a
certificate of service authority for the entire State or for
a specified geographic area of the State. A person,
corporation, or other entity acting as an alternative gas
supplier on the effective date of this amendatory Act of the
92nd General Assembly shall have 180 days from the effective
date of this amendatory Act of the 92nd General Assembly to
comply with the requirements of this Section in order to
continue to operate as an alternative gas supplier.
(c) An alternative gas supplier seeking a certificate of
service authority shall file with the Commission a verified
application containing information showing that the applicant
meets the requirements of this Section. The alternative gas
supplier shall publish notice of its application in the
official State newspaper within 10 days following the date of
its filing. No later than 45 days after the application is
properly filed with the Commission, and such notice is
published, the Commission shall issue its order granting or
denying the application.
(d) An application for a certificate of service
authority shall identify the area or areas in which the
applicant intends to offer service and the types of services
it intends to offer. Applicants that seek to serve
residential customers within a geographic area that is
smaller than a gas utility's service area shall submit
evidence demonstrating that the designation of this smaller
area does not violate Section 19-115. An applicant may state
in its application for certification any limitations that
will be imposed on the number of customers or maximum load to
be served.
(e) The Commission shall grant the application for a
certificate of service authority if it makes the findings set
forth in this subsection based on the verified application
and such other information as the applicant may submit.
(1) That the applicant possess sufficient
technical, financial, and managerial resources and
abilities to provide the service for which it seeks a
certificate of service authority. In determining the
level of technical, financial, and managerial resources
and abilities which the applicant must demonstrate, the
Commission shall consider the characteristics, including
the size and financial sophistication of the customers
that the applicant seeks to serve, and shall consider
whether the applicant seeks to provide gas using
property, plant, and equipment that it owns, controls, or
operates.
(2) That the applicant will comply with all
applicable federal, State, regional, and industry rules,
policies, practices, and procedures for the use,
operation, and maintenance of the safety, integrity, and
reliability of the gas transmission system.
(3) That the applicant will comply with such
informational or reporting requirements as the Commission
may by rule establish.
(4) That the area to be served by the applicant and
any limitations it proposes on the number of customers or
maximum amount of load to be served meet the provisions
of Section 19-115, provided, that if the applicant seeks
to serve an area smaller than the service area of a gas
utility or proposes other limitations on the number of
customers or maximum amount of load to be served, the
Commission can extend the time for considering such a
certificate request by up to 90 days, and can schedule
hearings on such a request.
(5) That the applicant will comply with all other
applicable laws and rules.
(f) The Commission shall have the authority to
promulgate rules to carry out the provisions of this Section.
Within 30 days after the effective date of this amendatory
Act of the 92nd General Assembly, the Commission shall adopt
an emergency rule or rules applicable to the certification of
those gas suppliers that seek to serve residential customers.
Within 180 days of the effective date of this amendatory Act
of the 92nd General Assembly, the Commission shall adopt
rules that specify criteria which, if met by any such
alternative gas supplier, shall constitute the demonstration
of technical, financial, and managerial resources and
abilities to provide service required by item (1) of
subsection (e) of this Section, such as a requirement to post
a bond or letter of credit, from a responsible surety or
financial institution, of sufficient size for the nature and
scope of the services to be provided, demonstration of
adequate insurance for the scope and nature of the services
to be provided, and experience in providing similar services
in other jurisdictions.
(220 ILCS 5/19-115 new)
Sec. 19-115. Obligations of alternative gas suppliers.
(a) The provisions of this Section shall apply only to
alternative gas suppliers serving or seeking to serve
residential customers and only to the extent such alternative
gas suppliers provide services to residential customers.
(b) An alternative gas supplier shall:
(1) comply with the requirements imposed on public
utilities by Sections 8-201 through 8-207, 8-301, 8-505
and 8-507 of this Act, to the extent that these Sections
have application to the services being offered by the
alternative gas supplier; and
(2) continue to comply with the requirements for
certification stated in Section 19-110.
(c) An alternative gas supplier shall obtain verifiable
authorization from a customer, in a form or manner approved
by the Commission, before the customer is switched from
another supplier.
(d) No alternative gas supplier shall:
(1) enter into or employ any arrangements which
have the effect of preventing any customer from having
access to the services of the gas utility in whose
service area the customer is located; or
(2) charge customers for such access.
(e) An alternative gas supplier that is certified to
serve residential customers shall not:
(1) deny service to a customer or group of
customers nor establish any differences as to prices,
terms, conditions, services, products, facilities, or in
any other respect, whereby such denial or differences are
based upon race, gender, or income; or
(2) deny service based on locality, nor establish
any unreasonable difference as to prices, terms,
conditions, services, products, or facilities as between
localities.
(f) An alternative gas supplier shall comply with the
following requirements with respect to the marketing,
offering, and provision of products or services:
(1) Any marketing materials which make statements
concerning prices, terms, and conditions of service shall
contain information that adequately discloses the prices,
terms and conditions of the products or services.
(2) Before any customer is switched from another
supplier, the alternative gas supplier shall give the
customer written information that adequately discloses,
in plain language, the prices, terms, and conditions of
the products and services being offered and sold to the
customer.
(3) The alternative gas supplier shall provide to
the customer:
(A) itemized billing statements that describe
the products and services provided to the customer
and their prices; and
(B) an additional statement, at least
annually, that adequately discloses the average
monthly prices, and the terms and conditions, of the
products and services sold to the customer.
(g) An alternative gas supplier may limit the overall
size or availability of a service offering by specifying one
or more of the following:
(1) a maximum number of customers and maximum
amount of gas load to be served;
(2) time period during which the offering will be
available; or
(3) other comparable limitation, but not including
the geographic locations of customers within the area
which the alternative gas supplier is certificated to
serve.
The alternative gas supplier shall file the terms and
conditions of such service offering including the applicable
limitations with the Commission prior to making the service
offering available to customers.
(h) Nothing in this Section shall be construed as
preventing an alternative gas supplier that is an affiliate
of, or which contracts with, (i) an industry or trade
organization or association, (ii) a membership organization
or association that exists for a purpose other than the
purchase of gas, or (iii) another organization that meets
criteria established in a rule adopted by the Commission from
offering through the organization or association services at
prices, terms and conditions that are available solely to the
members of the organization or association.
(220 ILCS 5/19-120 new)
Sec. 19-120. Commission oversight of services provided
by gas suppliers.
(a) The provisions of this Section shall apply only to
alternative gas suppliers serving or seeking to serve
residential customers and only to the extent such alternative
gas suppliers provide services to residential customers.
(b) The Commission shall have jurisdiction in accordance
with the provisions of Article X of this Act to entertain and
dispose of any complaint against any alternative gas supplier
alleging that:
(1) the alternative gas supplier has violated or is
in nonconformance with any applicable provisions of
Section 19-110 or Section 19-115;
(2) an alternative gas supplier has failed to
provide service in accordance with the terms of its
contract or contracts with a customer or customers;
(3) the alternative gas supplier has violated or is
in nonconformance with the transportation services tariff
of, or any of its agreements relating to transportation
services with, the gas utility or municipal system
providing transportation services; or
(4) the alternative gas supplier has violated or
failed to comply with the requirements of Sections 8-201
through 8-207, 8-301, 8-505, or 8-507 of this Act as made
applicable to alternative gas suppliers.
(c) The Commission shall have authority after notice and
hearing held on complaint or on the Commission's own motion
to:
(1) order an alternative gas supplier to cease and
desist, or correct, any violation of or nonconformance
with the provisions of Section 19-110 or 19-115;
(2) impose financial penalties for violations of or
nonconformances with the provisions of Section 19-110 or
19-115, not to exceed (i) $10,000 per occurrence or (ii)
$30,000 per day for those violations or nonconformances
which continue after the Commission issues a
cease-and-desist order; and
(3) alter, modify, revoke, or suspend the
certificate of service authority of an alternative gas
supplier for substantial or repeated violations of or
nonconformances with the provisions of Section 19-110 or
19-115.
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly November 28, 2001.
Approved February 08, 2002.
Effective February 08, 2002.
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