98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB1453

Introduced , by Rep. Kelly Burke

SYNOPSIS AS INTRODUCED:

`220 ILCS 5/16-102`
`220 ILCS 5/16-115A`
`220 ILCS 5/16-118`
`220 ILCS 5/19-105`
`220 ILCS 5/19-115`

Amends the Public Utilities Act in relation to marketing alternative services and products. Limits the use of early termination clauses and penalties. Requires certain utilities to share customer lists. Defines terms. Effective immediately.

LRB098 07060 JLS 37119 b

A BILL FOR

HB1453

LRB098 07060 JLS 37119 b

1 AN ACT concerning regulation.

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 changing

5 Sections 16-102, 16-115A, 16-118, 19-105, and 19-115 as

6 follows:

7 (220 ILCS 5/16-102)

8 Sec. 16-102. Definitions. For the purposes of this Article

9 the following terms shall be defined as set forth in this

10 Section.

11 "Alternative retail electric 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, that

16 offers electric power or energy for sale, lease or in exchange

17 for other value received to one or more retail customers, or

18 that engages in the delivery or furnishing of electric power or

19 energy to such retail customers, and shall include, without

20 limitation, resellers, aggregators and power marketers, but

21 shall not include (i) electric utilities (or any agent of the

22 electric utility to the extent the electric utility provides

23 tariffed services to retail customers through that agent), (ii)

HB1453

- 2 -

LRB098 07060 JLS 37119 b

1 any electric cooperative or municipal system as defined in

2 Section 17-100 to the extent that the electric cooperative or

3 municipal system is serving retail customers within any area in

4 which it is or would be entitled to provide service under the

5 law in effect immediately prior to the effective date of this

6 amendatory Act of 1997, (iii) a public utility that is owned

7 and operated by any public institution of higher education of

8 this State, or a public utility that is owned by such public

9 institution of higher education and operated by any of its

10 lessees or operating agents, within any area in which it is or

11 would be entitled to provide service under the law in effect

12 immediately prior to the effective date of this amendatory Act

13 of 1997, (iv) a retail customer to the extent that customer

14 obtains its electric power and energy from that customer's own

15 cogeneration or self-generation facilities, (v) an entity that

16 owns, operates, sells, or arranges for the installation of a

17 customer's own cogeneration or self-generation facilities, but

18 only to the extent the entity is engaged in owning, selling or

19 arranging for the installation of such facility, or operating

20 the facility on behalf of such customer, provided however that

21 any such third party owner or operator of a facility built

22 after January 1, 1999, complies with the labor provisions of

23 Section 16-128(a) as though such third party were an

24 alternative retail electric supplier, or (vi) an industrial or

25 manufacturing customer that owns its own distribution

26 facilities, to the extent that the customer provides service

HB1453

- 3 -

LRB098 07060 JLS 37119 b

1 from that distribution system to a third-party contractor

2 located on the customer's premises that is integrally and

3 predominantly engaged in the customer's industrial or

4 manufacturing process; provided, that if the industrial or

5 manufacturing customer has elected delivery services, the

6 customer shall pay transition charges applicable to the

7 electric power and energy consumed by the third-party

8 contractor unless such charges are otherwise paid by the third

9 party contractor, which shall be calculated based on the usage

10 of, and the base rates or the contract rates applicable to, the

11 third-party contractor in accordance with Section 16-102.

12 An entity that furnishes the service of charging electric

13 vehicles does not and shall not be deemed to sell electricity

14 and is not and shall not be deemed an alternative retail

15 electric supplier, and is not subject to regulation as such

16 under this Act notwithstanding the basis on which the service

17 is provided or billed. If, however, the entity is otherwise

18 deemed an alternative retail electric supplier under this Act,

19 or is otherwise subject to regulation under this Act, then that

20 entity is not exempt from and remains subject to the otherwise

21 applicable provisions of this Act. The installation,

22 maintenance, and repair of an electric vehicle charging station

23 shall comply with the requirements of subsection (a) of Section

24 16-128 and Section 16-128A of this Act.

25 For purposes of this Section, the term "electric vehicles"

26 has the meaning ascribed to that term in Section 10 of the

HB1453

- 4 -

LRB098 07060 JLS 37119 b

1 Electric Vehicle Act.

2 "Base rates" means the rates for those tariffed services

3 that the electric utility is required to offer pursuant to

4 subsection (a) of Section 16-103 and that were identified in a

5 rate order for collection of the electric utility's base rate

6 revenue requirement, excluding (i) separate automatic rate

7 adjustment riders then in effect, (ii) special or negotiated

8 contract rates, (iii) delivery services tariffs filed pursuant

9 to Section 16-108, (iv) real-time pricing, or (v) tariffs that

10 were in effect prior to October 1, 1996 and that based charges

11 for services on an index or average of other utilities'

12 charges, but including (vi) any subsequent redesign of such

13 rates for tariffed services that is authorized by the

14 Commission after notice and hearing.

15 "Competitive service" includes (i) any service that has

16 been declared to be competitive pursuant to Section 16-113 of

17 this Act, (ii) contract service, and (iii) services, other than

18 tariffed services, that are related to, but not necessary for,

19 the provision of electric power and energy or delivery

20 services.

21 "Contract service" means (1) services, including the

22 provision of electric power and energy or other services, that

23 are provided by mutual agreement between an electric utility

24 and a retail customer that is located in the electric utility's

25 service area, provided that, delivery services shall not be a

26 contract service until such services are declared competitive

HB1453

- 5 -

LRB098 07060 JLS 37119 b

1 pursuant to Section 16-113; and also means (2) the provision of

2 electric power and energy by an electric utility to retail

3 customers outside the electric utility's service area pursuant

4 to Section 16-116. Provided, however, contract service does not

5 include electric utility services provided pursuant to (i)

6 contracts that retail customers are required to execute as a

7 condition of receiving tariffed services, or (ii) special or

8 negotiated rate contracts for electric utility services that

9 were entered into between an electric utility and a retail

10 customer prior to the effective date of this amendatory Act of

11 1997 and filed with the Commission.

12 "Delivery services" means those services provided by the

13 electric utility that are necessary in order for the

14 transmission and distribution systems to function so that

15 retail customers located in the electric utility's service area

16 can receive electric power and energy from suppliers other than

17 the electric utility, and shall include, without limitation,

18 standard metering and billing services.

19 "Door-to-door solicitation" means a face-to-face

20 solicitation of a residential customer initiated by an

21 alternative retail electric supplier at the home or place of

22 business of the customer through canvassing without an

23 appointment or previous personal relationship.

24 "Electric utility" means a public utility, as defined in

25 Section 3-105 of this Act, that has a franchise, license,

26 permit or right to furnish or sell electricity to retail

HB1453

- 6 -

LRB098 07060 JLS 37119 b

1 customers within a service area.

2 "Mandatory transition period" means the period from the

3 effective date of this amendatory Act of 1997 through January

4 1, 2007.

5 "Municipal system" shall have the meaning set forth in

6 Section 17-100.

7 "Real-time pricing" means tariffed retail charges for

8 delivered electric power and energy that vary hour-to-hour and

9 are determined from wholesale market prices using a methodology

10 approved by the Illinois Commerce Commission.

11 "Retail customer" means a single entity using electric

12 power or energy at a single premises and that (A) either (i) is

13 receiving or is eligible to receive tariffed services from an

14 electric utility, or (ii) that is served by a municipal system

15 or electric cooperative within any area in which the municipal

16 system or electric cooperative is or would be entitled to

17 provide service under the law in effect immediately prior to

18 the effective date of this amendatory Act of 1997, or (B) an

19 entity which on the effective date of this Act was receiving

20 electric service from a public utility and (i) was engaged in

21 the practice of resale and redistribution of such electricity

22 within a building prior to January 2, 1957, or (ii) was

23 providing lighting services to tenants in a multi-occupancy

24 building, but only to the extent such resale, redistribution or

25 lighting service is authorized by the electric utility's

26 tariffs that were on file with the Commission on the effective

HB1453

- 7 -

LRB098 07060 JLS 37119 b

1 date of this Act.

2 "Service area" means (i) the geographic area within which

3 an electric utility was lawfully entitled to provide electric

4 power and energy to retail customers as of the effective date

5 of this amendatory Act of 1997, and includes (ii) the location

6 of any retail customer to which the electric utility was

7 lawfully providing electric utility services on such effective

8 date.

9 "Small commercial retail customer" means those

10 nonresidential retail customers of an electric utility

11 consuming 15,000 kilowatt-hours or less of electricity

12 annually in its service area.

13 "Tariffed service" means services provided to retail

14 customers by an electric utility as defined by its rates on

15 file with the Commission pursuant to the provisions of Article

16 IX of this Act, but shall not include competitive services.

17 "Transition charge" means a charge expressed in cents per

18 kilowatt-hour that is calculated for a customer or class of

19 customers as follows for each year in which an electric utility

20 is entitled to recover transition charges as provided in

21 Section 16-108:

22 (1) the amount of revenue that an electric utility

23 would receive from the retail customer or customers if it

24 were serving such customers' electric power and energy

25 requirements as a tariffed service based on (A) all of the

26 customers' actual usage during the 3 years ending 90 days

HB1453

- 8 -

LRB098 07060 JLS 37119 b

1 prior to the date on which such customers were first

2 eligible for delivery services pursuant to Section 16-104,

3 and (B) on (i) the base rates in effect on October 1, 1996

4 (adjusted for the reductions required by subsection (b) of

5 Section 16-111, for any reduction resulting from a rate

6 decrease under Section 16-101(b), for any restatement of

7 base rates made in conjunction with an elimination of the

8 fuel adjustment clause pursuant to subsection (b), (d), or

9 (f) of Section 9-220 and for any removal of decommissioning

10 costs from base rates pursuant to Section 16-114) and any

11 separate automatic rate adjustment riders (other than a

12 decommissioning rate as defined in Section 16-114) under

13 which the customers were receiving or, had they been

14 customers, would have received electric power and energy

15 from the electric utility during the year immediately

16 preceding the date on which such customers were first

17 eligible for delivery service pursuant to Section 16-104,

18 or (ii) to the extent applicable, any contract rates,

19 including contracts or rates for consolidated or

20 aggregated billing, under which such customers were

21 receiving electric power and energy from the electric

22 utility during such year;

23 (2) less the amount of revenue, other than revenue from

24 transition charges and decommissioning rates, that the

25 electric utility would receive from such retail customers

26 for delivery services provided by the electric utility,

HB1453

- 9 -

LRB098 07060 JLS 37119 b

1 assuming such customers were taking delivery services for

2 all of their usage, based on the delivery services tariffs

3 in effect during the year for which the transition charge

4 is being calculated and on the usage identified in

5 paragraph (1);

6 (3) less the market value for the electric power and

7 energy that the electric utility would have used to supply

8 all of such customers' electric power and energy

9 requirements, as a tariffed service, based on the usage

10 identified in paragraph (1), with such market value

11 determined in accordance with Section 16-112 of this Act;

12 (4) less the following amount which represents the

13 amount to be attributed to new revenue sources and cost

14 reductions by the electric utility through the end of the

15 period for which transition costs are recovered pursuant to

16 Section 16-108, referred to in this Article XVI as a

17 "mitigation factor":

18 (A) for nonresidential retail customers, an amount

19 equal to the greater of (i) 0.5 cents per kilowatt-hour

20 during the period October 1, 1999 through December 31,

21 2004, 0.6 cents per kilowatt-hour in calendar year

22 2005, and 0.9 cents per kilowatt-hour in calendar year

23 2006, multiplied in each year by the usage identified

24 in paragraph (1), or (ii) an amount equal to the

25 following percentages of the amount produced by

26 applying the applicable base rates (adjusted as

HB1453

- 10 -

LRB098 07060 JLS 37119 b

1 described in subparagraph (1)(B)) or contract rate to

2 the usage identified in paragraph (1): 8% for the

3 period October 1, 1999 through December 31, 2002, 10%

4 in calendar years 2003 and 2004, 11% in calendar year

5 2005 and 12% in calendar year 2006; and

6 (B) for residential retail customers, an amount

7 equal to the following percentages of the amount

8 produced by applying the base rates in effect on

9 October 1, 1996 (adjusted as described in subparagraph

10 (1)(B)) to the usage identified in paragraph (1): (i)

11 6% from May 1, 2002 through December 31, 2002, (ii) 7%

12 in calendar years 2003 and 2004, (iii) 8% in calendar

13 year 2005, and (iv) 10% in calendar year 2006;

14 (5) divided by the usage of such customers identified

15 in paragraph (1),

16 provided that the transition charge shall never be less than

17 zero.

18 "Unbundled service" means a component or constituent part

19 of a tariffed service which the electric utility subsequently

20 offers separately to its customers.

21 (Source: P.A. 97-1128, eff. 8-28-12.)

22 (220 ILCS 5/16-115A)

23 Sec. 16-115A. Obligations of alternative retail electric

24 suppliers.

25 (a) An alternative retail electric supplier shall:

HB1453

- 11 -

LRB098 07060 JLS 37119 b

1 (i) comply with the requirements imposed on public

2 utilities by Sections 8-201 through 8-207, 8-301, 8-505 and

3 8-507 of this Act, to the extent that these Sections have

4 application to the services being offered by the

5 alternative retail electric supplier; and

6 (ii) continue to comply with the requirements for

7 certification stated in subsection (d) of Section 16-115.

8 (b) An alternative retail electric supplier shall obtain

9 verifiable authorization from a customer, in a form or manner

10 approved by the Commission consistent with Section 2EE of the

11 Consumer Fraud and Deceptive Business Practices Act, before the

12 customer is switched from another supplier.

13 (c) No alternative retail electric supplier, or electric

14 utility other than the electric utility in whose service area a

15 customer is located, shall (i) enter into or employ any

16 arrangements which have the effect of preventing a retail

17 customer with a maximum electrical demand of less than one

18 megawatt from having access to the services of the electric

19 utility in whose service area the customer is located or (ii)

20 charge retail customers for such access. This subsection shall

21 not be construed to prevent an arms-length agreement between a

22 supplier and a retail customer that sets a term of service,

23 notice period for terminating service and provisions governing

24 early termination through a tariff or contract as allowed by

25 Section 16-119.

26 (d) An alternative retail electric supplier that is

HB1453

- 12 -

LRB098 07060 JLS 37119 b

1 certified to serve residential or small commercial retail

2 customers shall not:

3 (1) deny service to a customer or group of customers

4 nor establish any differences as to prices, terms,

5 conditions, services, products, facilities, or in any

6 other respect, whereby such denial or differences are based

7 upon race, gender or income.

8 (2) deny service to a customer or group of customers

9 based on locality nor establish any unreasonable

10 difference as to prices, terms, conditions, services,

11 products, or facilities as between localities.

12 (e) An alternative retail electric supplier shall comply

13 with the following requirements with respect to the marketing,

14 offering and provision of products or services to residential

15 and small commercial retail customers:

16 (i) Any marketing materials which make statements

17 concerning prices, terms and conditions of service shall

18 contain information that adequately discloses the prices,

19 terms and conditions of the products or services that the

20 alternative retail electric supplier is offering or

21 selling to the customer.

22 (ii) Before any customer is switched from another

23 supplier, the alternative retail electric supplier shall

24 give the customer written information that adequately

25 discloses, in plain language, the prices, terms and

26 conditions of the products and services being offered and

HB1453

- 13 -

LRB098 07060 JLS 37119 b

1 sold to the customer.

2 (iii) An alternative retail electric supplier shall

3 provide documentation to the Commission and to customers

4 that substantiates any claims made by the alternative

5 retail electric supplier regarding the technologies and

6 fuel types used to generate the electricity offered or sold

7 to customers.

8 (iv) The alternative retail electric supplier shall

9 provide to the customer (1) itemized billing statements

10 that describe the products and services provided to the

11 customer and their prices, and (2) an additional statement,

12 at least annually, that adequately discloses the average

13 monthly prices, and the terms and conditions, of the

14 products and services sold to the customer.

15 (v) An alternative retial electric supplier shall

16 include in all residential solicitations that include

17 price offerings an explanation of how to obtain price

18 comparison information provided by the Illinois Commerce

19 Commission Office of Retail Market Development.

20 (e-1) Early termination.

21 (i) Any residential customer agreement that contains

22 an early termination clause shall disclose the amount of

23 the 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 multi-year

26 agreement or a municipal aggregation offer.

HB1453

- 14 -

LRB098 07060 JLS 37119 b

1 (ii) In any residential agreement that contains an

2 early termination clause, an alternative electric supplier

3 shall provide the customer the opportunity to terminate the

4 agreement without any termination fee or penalty until the

5 due date of the first bill issued to the customer for

6 products or services provided by the alternative electric

7 supplier. The agreement shall disclose the opportunity and

8 provide a toll-free phone number that the customer may call

9 in order to terminate the agreement.

10 (iii) Any agreement entered into between a residential

11 customer and an alternative electric supplier through the

12 use of a door-to-door solicitation may not contain an early

13 termination fee.

14 (iv) Any agreement or marketing solicitation that

15 offers a variable price that guarantees savings for any

16 period of time based upon a utility default rate may not

17 charge an early termination fee if the retail electric

18 supplier price charged exceeds the utility default rate.

19 (v) Nothing in this subsection (e-1) removes the

20 obligation of the customer to pay for the products or

21 services provided by the alternative electric supplier.

22 (f) An alternative retail electric supplier may limit the

23 overall size or availability of a service offering by

24 specifying one or more of the following: a maximum number of

25 customers, maximum amount of electric load to be served, time

26 period during which the offering will be available, or other

HB1453

- 15 -

LRB098 07060 JLS 37119 b

1 comparable limitation, but not including the geographic

2 locations of customers within the area which the alternative

3 retail electric supplier is certificated to serve. The

4 alternative retail electric supplier shall file the terms and

5 conditions of such service offering including the applicable

6 limitations with the Commission prior to making the service

7 offering available to customers.

8 (g) Nothing in this Section shall be construed as

9 preventing an alternative retail electric supplier, which is an

10 affiliate of, or which contracts with, (i) an industry or trade

11 organization or association, (ii) a membership organization or

12 association that exists for a purpose other than the purchase

13 of electricity, or (iii) another organization that meets

14 criteria established in a rule adopted by the Commission, from

15 offering through the organization or association services at

16 prices, terms and conditions that are available solely to the

17 members of the organization or association.

18 (Source: P.A. 90-561, eff. 12-16-97.)

19 (220 ILCS 5/16-118)

20 Sec. 16-118. Services provided by electric utilities to

21 alternative retail electric suppliers.

22 (a) It is in the best interest of Illinois energy consumers

23 to promote fair and open competition in the provision of

24 electric power and energy and to prevent anticompetitive

25 practices in the provision of electric power and energy.

HB1453

- 16 -

LRB098 07060 JLS 37119 b

1 Therefore, to the extent an electric utility provides electric

2 power and energy or delivery services to alternative retail

3 electric suppliers and such services are not subject to the

4 jurisdiction of the Federal Energy Regulatory Commission, and

5 are not competitive services, they shall be provided through

6 tariffs that are filed with the Commission, pursuant to Article

7 IX of this Act. Each electric utility shall permit alternative

8 retail electric suppliers to interconnect facilities to those

9 owned by the utility provided they meet established standards

10 for such interconnection, and may provide standby or other

11 services to alternative retail electric suppliers. The

12 alternative retail electric supplier shall sign a contract

13 setting forth the prices, terms and conditions for

14 interconnection with the electric utility and the prices, terms

15 and conditions for services provided by the electric utility to

16 the alternative retail electric supplier in connection with the

17 delivery by the electric utility of electric power and energy

18 supplied by the alternative retail electric supplier.

19 (b) An electric utility shall file a tariff pursuant to

20 Article IX of the Act that would allow alternative retail

21 electric suppliers or electric utilities other than the

22 electric utility in whose service area retail customers are

23 located to issue single bills to the retail customers for both

24 the services provided by such alternative retail electric

25 supplier or other electric utility and the delivery services

26 provided by the electric utility to such customers. The tariff

HB1453

- 17 -

LRB098 07060 JLS 37119 b

1 filed pursuant to this subsection shall (i) require partial

2 payments made by retail customers to be credited first to the

3 electric utility's tariffed services, (ii) impose commercially

4 reasonable terms with respect to credit and collection,

5 including requests for deposits, (iii) retain the electric

6 utility's right to disconnect the retail customers, if it does

7 not receive payment for its tariffed services, in the same

8 manner that it would be permitted to if it had billed for the

9 services itself, and (iv) require the alternative retail

10 electric supplier or other electric utility that elects the

11 billing option provided by this tariff to include on each bill

12 to retail customers an identification of the electric utility

13 providing the delivery services and a listing of the charges

14 applicable to such services. The tariff filed pursuant to this

15 subsection may also include other just and reasonable terms and

16 conditions. In addition, an electric utility, an alternative

17 retail electric supplier or electric utility other than the

18 electric utility in whose service area the customer is located,

19 and a customer served by such alternative retail electric

20 supplier or other electric utility, may enter into an agreement

21 pursuant to which the alternative retail electric supplier or

22 other electric utility pays the charges specified in Section

23 16-108, or other customer-related charges, including taxes and

24 fees, in lieu of such charges being recovered by the electric

25 utility directly from the customer.

26 (c) An electric utility with more than 100,000 customers

HB1453

- 18 -

LRB098 07060 JLS 37119 b

1 shall file a tariff pursuant to Article IX of this Act that

2 provides alternative retail electric suppliers, and electric

3 utilities other than the electric utility in whose service area

4 the retail customers are located, with the option to have the

5 electric utility purchase their receivables for power and

6 energy service provided to residential retail customers and

7 non-residential retail customers with a non-coincident peak

8 demand of less than 400 kilowatts. Receivables for power and

9 energy service of alternative retail electric suppliers or

10 electric utilities other than the electric utility in whose

11 service area the retail customers are located shall be

12 purchased by the electric utility at a just and reasonable

13 discount rate to be reviewed and approved by the Commission

14 after notice and hearing. The discount rate shall be based on

15 the electric utility's historical bad debt and any reasonable

16 start-up costs and administrative costs associated with the

17 electric utility's purchase of receivables. The discounted

18 rate for purchase of receivables shall be included in the

19 tariff filed pursuant to this subsection (c). The discount rate

20 filed pursuant to this subsection (c) shall be subject to

21 periodic Commission review. The electric utility retains the

22 right to impose the same terms on retail customers with respect

23 to credit and collection, including requests for deposits, and

24 retain the electric utility's right to disconnect the retail

25 customers, if it does not receive payment for its tariffed

26 services or purchased receivables, in the same manner that it

HB1453

- 19 -

LRB098 07060 JLS 37119 b

1 would be permitted to if the retail customers purchased power

2 and energy from the electric utility. The tariff filed pursuant

3 to this subsection (c) shall permit the electric utility to

4 recover from retail customers any uncollected receivables that

5 may arise as a result of the purchase of receivables under this

6 subsection (c), may also include other just and reasonable

7 terms and conditions, and shall provide for the prudently

8 incurred costs associated with the provision of this service

9 pursuant to this subsection (c). Nothing in this subsection (c)

10 permits the double recovery of bad debt expenses from

11 customers.

12 (d) An electric utility with more than 100,000 customers

13 shall file a tariff pursuant to Article IX of this Act that

14 would provide alternative retail electric suppliers or

15 electric utilities other than the electric utility in whose

16 service area retail customers are located with the option to

17 have the electric utility produce and provide single bills to

18 the retail customers for both the electric power and energy

19 service provided by the alternative retail electric supplier or

20 other electric utility and the delivery services provided by

21 the electric utility to the customers. The tariffs filed

22 pursuant to this subsection shall require the electric utility

23 to collect and remit customer payments for electric power and

24 energy service provided by alternative retail electric

25 suppliers or electric utilities other than the electric utility

26 in whose service area retail customers are located. The tariff

HB1453

- 20 -

LRB098 07060 JLS 37119 b

1 filed pursuant to this subsection shall require the electric

2 utility to include on each bill to retail customers an

3 identification of the alternative retail electric supplier or

4 other electric utility that elects the billing option. The

5 tariff filed pursuant to this subsection (d) may also include

6 other just and reasonable terms and conditions and shall

7 provide for the recovery of prudently incurred costs associated

8 with the provision of service pursuant to this subsection (d).

9 The costs associated with the provision of service pursuant to

10 this Section shall be subject to periodic Commission review.

11 (e) An electric utility with more than 100,000 customers in

12 this State shall file a tariff pursuant to Article IX of this

13 Act that provides alternative retail electric suppliers, and

14 electric utilities other than the electric utility in whose

15 service area the retail customers are located, with the option

16 to have the electric utility purchase 2 billing cycles worth of

17 uncollectible receivables for power and energy service

18 provided to residential retail customers and to

19 non-residential retail customers with a non-coincident peak

20 demand of less than 400 kilowatts upon returning that customer

21 to that electric utility for delivery and energy service after

22 that alternative retail electric supplier, or an electric

23 utility other than the electric utility in whose service area

24 the retail customer is located, has made reasonable collection

25 efforts on that account. Uncollectible receivables for power

26 and energy service of alternative retail electric suppliers, or

HB1453

- 21 -

LRB098 07060 JLS 37119 b

1 electric utilities other than the electric utility in whose

2 service area the retail customers are located, shall be

3 purchased by the electric utility at a just and reasonable

4 discount rate to be reviewed and approved by the Commission,

5 after notice and hearing. The discount rate shall be based on

6 the electric utility's historical bad debt for receivables that

7 are outstanding for a similar length of time and any reasonable

8 start-up costs and administrative costs associated with the

9 electric utility's purchase of receivables. The discounted

10 rate for purchase of uncollectible receivables shall be

11 included in the tariff filed pursuant to this subsection (e).

12 The electric utility retains the right to impose the same terms

13 on these retail customers with respect to credit and

14 collection, including requests for deposits, and retains the

15 right to disconnect these retail customers, if it does not

16 receive payment for its tariffed services or purchased

17 receivables, in the same manner that it would be permitted to

18 if the retail customers had purchased power and energy from the

19 electric utility. The tariff filed pursuant to this subsection

20 (e) shall permit the electric utility to recover from retail

21 customers any uncollectable receivables that may arise as a

22 result of the purchase of uncollectible receivables under this

23 subsection (e), may also include other just and reasonable

24 terms and conditions, and shall provide for the prudently

25 incurred costs associated with the provision of this service

26 pursuant to this subsection (e). Nothing in this subsection (e)

HB1453

- 22 -

LRB098 07060 JLS 37119 b

1 permits the double recovery of utility bad debt expenses from

2 customers. The electric utility may file a joint tariff for

3 this subsection (e) and subsection (c) of this Section.

4 (f) An electric utility with more than 100,000 customers in

5 this State shall make available to alternative retail

6 electricity suppliers a list of customer names, addresses, and

7 other information as the Commission may deem necessary to allow

8 for effective marketing of retail electricity and related

9 services from alternative retail electricity suppliers.

10 Customers shall be provided an annual notice that indicates

11 that their name appears on the list and information on how to

12 remove their information by contacting the utility. Nothing in

13 this Section limits the ability of customers to request their

14 names be removed at any other time.

15 (Source: P.A. 95-700, eff. 11-9-07.)

16 (220 ILCS 5/19-105)

17 Sec. 19-105. Definitions. For the purposes of this Article,

18 the following terms shall be defined as set forth in this

19 Section.

20 "Alternative gas supplier" means every person,

21 cooperative, corporation, municipal corporation, company,

22 association, joint stock company or association, firm,

23 partnership, individual, or other entity, their lessees,

24 trustees, or receivers appointed by any court whatsoever, that

25 offers gas for sale, lease, or in exchange for other value

HB1453

- 23 -

LRB098 07060 JLS 37119 b

1 received to one or more customers, or that engages in the

2 furnishing of gas to one or more customers, and shall include

3 affiliated interests of a gas utility, resellers, aggregators

4 and marketers, but shall not include (i) gas utilities (or any

5 agent of the gas utility to the extent the gas utility provides

6 tariffed services to customers through an agent); (ii) public

7 utilities that are owned and operated by any political

8 subdivision, public institution of higher education or

9 municipal corporation of this State, or public utilities that

10 are owned by a political subdivision, public institution of

11 higher education, or municipal corporation and operated by any

12 of its lessees or operating agents; (iii) natural gas

13 cooperatives that are not-for-profit corporations operated for

14 the purpose of administering, on a cooperative basis, the

15 furnishing of natural gas for the benefit of their members who

16 are consumers of natural gas; and (iv) the ownership or

17 operation of a facility that sells compressed natural gas at

18 retail to the public for use only as a motor vehicle fuel and

19 the selling of compressed natural gas at retail to the public

20 for use only as a motor vehicle fuel.

21 "Door-to-door solicitation" means face-to-face

22 solicitation of a residential customer initiated by a retail

23 natural gas supplier at the home or place of business of the

24 customer through canvassing without an appointment or previous

25 personal relationship.

26 "Gas utility" means a public utility, as defined in Section

HB1453

- 24 -

LRB098 07060 JLS 37119 b

1 3-105 of this Act, that has a franchise, license, permit, or

2 right to furnish or sell gas or transportation services to

3 customers within a service area.

4 "Residential customer" means a customer who receives gas

5 utility service for household purposes distributed to a

6 dwelling of 2 or fewer units which is billed under a

7 residential rate or gas utility service for household purposes

8 distributed to a dwelling unit or units which is billed under a

9 residential rate and is registered by a separate meter for each

10 dwelling unit.

11 "Sales agent" means any employee, agent, independent

12 contractor, consultant, or other person that is engaged by the

13 alternative gas supplier to solicit customers to purchase,

14 enroll in, or contract for alternative gas service on behalf of

15 an alternative gas supplier.

16 "Service area" means (i) the geographic area within which a

17 gas utility was lawfully entitled to provide gas to customers

18 as of the effective date of this amendatory Act of the 92nd

19 General Assembly and includes (ii) the location of any customer

20 to which the gas utility was lawfully providing gas utility

21 services on such effective date.

22 "Single billing" means the combined billing of the services

23 provided by both a natural gas utility and an alternative gas

24 supplier to any customer who has enrolled in a customer choice

25 program.

26 "Small commercial customer" means a nonresidential retail

HB1453

- 25 -

LRB098 07060 JLS 37119 b

1 customer of a natural gas utility who consumed 5,000 or fewer

2 therms of natural gas during the previous year; provided that

3 any alternative gas supplier may remove the customer from

4 designation as a "small commercial customer" if the customer

5 consumes more than 5,000 therms of natural gas in any calendar

6 year after becoming a customer of the alternative gas supplier.

7 In determining whether a customer has consumed 5,000 or fewer

8 therms of natural gas during the previous year, usage by the

9 same commercial customer shall be aggregated to include usage

10 at the same premises even if measured by more than one meter,

11 and to include usage at multiple premises. Nothing in this

12 Section creates an affirmative obligation on a gas utility to

13 monitor or inform customers or alternative gas suppliers as to

14 a customer's status as a small commercial customer as that term

15 is defined herein. Nothing in this Section relieves a gas

16 utility from any obligation to provide information upon request

17 to a customer, alternative gas supplier, the Commission, or

18 others necessary to determine whether a customer meets the

19 classification of small commercial customers as that term is

20 defined herein.

21 "Tariffed service" means a service provided to customers by

22 a gas utility as defined by its rates on file with the

23 Commission pursuant to the provisions of Article IX of this

24 Act.

25 "Transportation services" means those services provided by

26 the gas utility that are necessary in order for the storage,

HB1453

- 26 -

LRB098 07060 JLS 37119 b

1 transmission and distribution systems to function so that

2 customers located in the gas utility's service area can receive

3 gas from suppliers other than the gas utility and shall

4 include, without limitation, standard metering and billing

5 services.

6 (Source: P.A. 95-1051, eff. 4-10-09; 96-435, eff. 1-1-10;

7 96-1000, eff. 7-2-10.)

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 and

18 8-507 of this Act, to the extent that these Sections have

19 application to the services being offered by the

20 alternative gas supplier;

21 (2) continue to comply with the requirements for

22 certification stated in Section 19-110;

23 (3) comply with complaint procedures established by

24 the Commission;

25 (4) except as provided in subsection (h) of this

HB1453

- 27 -

LRB098 07060 JLS 37119 b

1 Section, file with the Chief Clerk of the Commission,

2 within 20 business days after the effective date of this

3 amendatory Act of the 95th General Assembly, a copy of bill

4 formats, standard customer contract and customer complaint

5 and resolution procedures, and the name and telephone

6 number of the company representative whom Commission

7 employees may contact to resolve customer complaints and

8 other matters. In the case of a gas supplier that engages

9 in door-to-door solicitation, the company shall file with

10 the Commission the consumer information disclosure

11 required by item (3) of subsection (c) of Section 2DDD of

12 the Consumer Fraud and Deceptive Business Practices Act and

13 shall file updated information within 10 business days

14 after changes in any of the documents or information

15 required to be filed by this item (4); and

16 (5) maintain a customer call center where customers can

17 reach a representative and receive current information. At

18 least once every 6 months, each alternative gas supplier

19 shall provide written information to customers explaining

20 how to contact the call center. The average answer time for

21 calls placed to the call center shall not exceed 60 seconds

22 where a representative or automated system is ready to

23 render assistance and/or accept information to process

24 calls. The abandon rate for calls placed to the call center

25 shall not exceed 10%. Each alternative gas supplier shall

26 maintain records of the call center's telephone answer time

HB1453

- 28 -

LRB098 07060 JLS 37119 b

1 performance and abandon call rate. These records shall be

2 kept for a minimum of 2 years and shall be made available

3 to Commission personnel upon request. In the event that

4 answer times and/or abandon rates exceed the limits

5 established above, the reporting alternative gas supplier

6 may provide the Commission or its personnel with

7 explanatory details. At a minimum, these records shall

8 contain the following information in monthly increments:

9 (A) total number of calls received;

10 (B) number of calls answered;

11 (C) average answer time;

12 (D) number of abandoned calls; and

13 (E) abandon call rate.

14 Alternative gas suppliers that do not have electronic

15 answering capability that meets these requirements shall

16 notify the Manager of the Commission's Consumer Services

17 Division or its successor within 30 days following the

18 effective date of this amendatory Act of the 95th General

19 Assembly and work with Staff to develop individualized

20 reporting requirements as to the call volume and responsiveness

21 of the call center.

22 On or before March 1 of every year, each entity shall file

23 a report with the Chief Clerk of the Commission for the

24 preceding calendar year on its answer time and abandon call

25 rate for its call center. A copy of the report shall be sent to

26 the Manager of the Consumer Services Division or its successor.

HB1453

- 29 -

LRB098 07060 JLS 37119 b

1 (c) An alternative gas supplier shall not submit or execute

2 a change in a customer's selection of a natural gas provider

3 unless and until (i) the alternative gas supplier first

4 discloses all material terms and conditions of the offer to the

5 customer; (ii) the alternative gas supplier has obtained the

6 customer's express agreement to accept the offer after the

7 disclosure of all material terms and conditions of the offer;

8 and (iii) the alternative gas supplier has confirmed the

9 request for a change in accordance with one of the following

10 procedures:

11 (1) The alternative gas supplier has obtained the

12 customer's written or electronically signed authorization

13 in a form that meets the following requirements:

14 (A) An alternative gas supplier shall obtain any

15 necessary written or electronically signed

16 authorization from a customer for a change in natural

17 gas service by using a letter of agency as specified in

18 this Section. Any letter of agency that does not

19 conform with this Section is invalid.

20 (B) The letter of agency shall be a separate

21 document (or an easily separable document containing

22 only the authorization language described in item (E)

23 of this paragraph (1)) whose sole purpose is to

24 authorize a natural gas provider change. The letter of

25 agency must be signed and dated by the customer

26 requesting the natural gas provider change.

HB1453

- 30 -

LRB098 07060 JLS 37119 b

1 (C) The letter of agency shall not be combined with

2 inducements of any kind on the same document.

3 (D) Notwithstanding items (A) and (B) of this

4 paragraph (1), the letter of agency may be combined

5 with checks that contain only the required letter of

6 agency language prescribed in item (E) of this

7 paragraph (1) and the necessary information to make the

8 check a negotiable instrument. The letter of agency

9 check shall not contain any promotional language or

10 material. The letter of agency check shall contain in

11 easily readable, bold face type on the face of the

12 check a notice that the consumer is authorizing a

13 natural gas provider change by signing the check. The

14 letter of agency language also shall be placed near the

15 signature line on the back of the check.

16 (E) At a minimum, the letter of agency must be

17 printed with a print of sufficient size to be clearly

18 legible and must contain clear and unambiguous

19 language that confirms:

20 (i) the customer's billing name and address;

21 (ii) the decision to change the natural gas

22 provider from the current provider to the

23 prospective alternative gas supplier;

24 (iii) the terms, conditions, and nature of the

25 service to be provided to the customer, including,

26 but not limited to, the rates for the service

HB1453

- 31 -

LRB098 07060 JLS 37119 b

1 contracted for by the customer; and

2 (iv) that the customer understands that any

3 natural gas provider selection the customer

4 chooses may involve a charge to the customer for

5 changing the customer's natural gas provider.

6 (F) Letters of agency shall not suggest or require

7 that a customer take some action in order to retain the

8 customer's current natural gas provider.

9 (G) If any portion of a letter of agency is

10 translated into another language, then all portions of

11 the letter of agency must be translated into that

12 language.

13 (2) An appropriately qualified independent third party

14 has obtained, in accordance with the procedures set forth

15 in this paragraph (2), the customer's oral authorization to

16 change natural gas providers that confirms and includes

17 appropriate verification data. The independent third party

18 must (i) not be owned, managed, controlled, or directed by

19 the alternative gas supplier or the alternative gas

20 supplier's marketing agent; (ii) not have any financial

21 incentive to confirm provider change requests for the

22 alternative gas supplier or the alternative gas supplier's

23 marketing agent; and (iii) operate in a location physically

24 separate from the alternative gas supplier or the

25 alternative gas supplier's marketing agent. Automated

26 third-party verification systems and 3-way conference

HB1453

- 32 -

LRB098 07060 JLS 37119 b

1 calls may be used for verification purposes so long as the

2 other requirements of this paragraph (2) are satisfied. An

3 alternative gas supplier or alternative gas supplier's

4 sales representative initiating a 3-way conference call or

5 a call through an automated verification system must drop

6 off the call once the 3-way connection has been

7 established. All third-party verification methods shall

8 elicit, at a minimum, the following information:

9 (A) the identity of the customer;

10 (B) confirmation that the person on the call is

11 authorized to make the provider change;

12 (C) confirmation that the person on the call wants

13 to make the provider change;

14 (D) the names of the providers affected by the

15 change;

16 (E) the service address of the service to be

17 switched; and

18 (F) the price of the service to be provided and the

19 material terms and conditions of the service being

20 offered, including whether any early termination fees

21 apply.

22 Third-party verifiers may not market the alternative

23 gas supplier's services by providing additional

24 information. All third-party verifications shall be

25 conducted in the same language that was used in the

26 underlying sales transaction and shall be recorded in their

HB1453

- 33 -

LRB098 07060 JLS 37119 b

1 entirety. Submitting alternative gas suppliers shall

2 maintain and preserve audio records of verification of

3 customer authorization for a minimum period of 2 years

4 after obtaining the verification. Automated systems must

5 provide customers with an option to speak with a live

6 person at any time during the call.

7 (3) The alternative gas supplier has obtained the

8 customer's authorization via an automated verification

9 system to change natural gas service via telephone. An

10 automated verification system is an electronic system

11 that, through pre-recorded prompts, elicits voice

12 responses, touchtone responses, or both, from the customer

13 and records both the prompts and the customer's responses.

14 Such authorization must elicit the information in

15 paragraph (2)(A) through (F) of this subsection (c).

16 Alternative gas suppliers electing to confirm sales

17 electronically through an automated verification system

18 shall establish one or more toll-free telephone numbers

19 exclusively for that purpose. Calls to the number or

20 numbers shall connect a customer to a voice response unit,

21 or similar mechanism, that makes a date-stamped,

22 time-stamped recording of the required information

23 regarding the alternative gas supplier change.

24 The alternative gas supplier shall not use such

25 electronic authorization systems to market its services.

26 (4) When a consumer initiates the call to the

HB1453

- 34 -

LRB098 07060 JLS 37119 b

1 prospective alternative gas supplier, in order to enroll

2 the consumer as a customer, the prospective alternative gas

3 supplier must, with the consent of the customer, make a

4 date-stamped, time-stamped audio recording that elicits,

5 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 supplied and the

16 material terms and conditions of the service being

17 offered, including whether any early termination fees

18 apply.

19 Submitting alternative gas suppliers shall maintain

20 and preserve the audio records containing the information

21 set forth above for a minimum period of 2 years.

22 (5) In the event that a customer enrolls for service

23 from an alternative gas supplier via an Internet website,

24 the alternative gas supplier shall obtain an

25 electronically signed letter of agency in accordance with

26 paragraph (1) of this subsection (c) and any customer

HB1453

- 35 -

LRB098 07060 JLS 37119 b

1 information shall be protected in accordance with all

2 applicable statutes and regulations. In addition, an

3 alternative gas supplier shall provide the following when

4 marketing via an Internet website:

5 (A) The Internet enrollment website shall, at a

6 minimum, include:

7 (i) a copy of the alternative gas supplier's

8 customer contract that clearly and conspicuously

9 discloses all terms and conditions; and

10 (ii) a conspicuous prompt for the customer to

11 print or save a copy of the contract.

12 (B) Any electronic version of the contract shall be

13 identified by version number, in order to ensure the

14 ability to verify the particular contract to which the

15 customer assents.

16 (C) Throughout the duration of the alternative gas

17 supplier's contract with a customer, the alternative

18 gas supplier shall retain and, within 3 business days

19 of the customer's request, provide to the customer an

20 e-mail, paper, or facsimile of the terms and conditions

21 of the numbered contract version to which the customer

22 assents.

23 (D) The alternative gas supplier shall provide a

24 mechanism by which both the submission and receipt of

25 the electronic letter of agency are recorded by time

26 and date.

HB1453

- 36 -

LRB098 07060 JLS 37119 b

1 (E) After the customer completes the electronic

2 letter of agency, the alternative gas supplier shall

3 disclose conspicuously through its website that the

4 customer has been enrolled, and the alternative gas

5 supplier shall provide the customer an enrollment

6 confirmation number.

7 (6) When a customer is solicited in person by the

8 alternative gas supplier's sales agent, the alternative

9 gas supplier may only obtain the customer's authorization

10 to change natural gas service through the method provided

11 for in paragraph (2) of this subsection (c).

12 Alternative gas suppliers must be in compliance with this

13 subsection (c) within 90 days after the effective date of this

14 amendatory Act of the 95th General Assembly.

15 (d) Complaints may be filed with the Commission under this

16 Section by a customer whose natural gas service has been

17 provided by an alternative gas supplier in a manner not in

18 compliance with subsection (c) of this Section. If, after

19 notice and hearing, the Commission finds that an alternative

20 gas supplier has violated subsection (c), then the Commission

21 may in its discretion do any one or more of the following:

22 (1) Require the violating alternative gas supplier to

23 refund the customer charges collected in excess of those

24 that would have been charged by the customer's authorized

25 natural gas provider.

26 (2) Require the violating alternative gas supplier to

HB1453

- 37 -

LRB098 07060 JLS 37119 b

1 pay to the customer's authorized natural gas provider the

2 amount the authorized natural gas provider would have

3 collected for natural gas service. The Commission is

4 authorized to reduce this payment by any amount already

5 paid by the violating alternative gas supplier to the

6 customer's authorized natural gas provider.

7 (3) Require the violating alternative gas supplier to

8 pay a fine of up to $1,000 into the Public Utility Fund for

9 each repeated and intentional violation of this Section.

10 (4) Issue a cease and desist order.

11 (5) For a pattern of violation of this Section or for

12 intentionally violating a cease and desist order, revoke

13 the violating alternative gas supplier's certificate of

14 service authority.

15 (e) No alternative gas supplier shall:

16 (1) enter into or employ any arrangements which have

17 the effect of preventing any customer from having access to

18 the services of the gas utility in whose service area the

19 customer is located;

20 (2) charge customers for such access;

21 (3) bill for goods or services not authorized by the

22 customer; or

23 (4) bill for a disputed amount where the alternative

24 gas supplier has been provided notice of such dispute. The

25 supplier shall attempt to resolve a dispute with the

26 customer. When the dispute is not resolved to the

HB1453

- 38 -

LRB098 07060 JLS 37119 b

1 customer's satisfaction, the supplier shall inform the

2 customer of the right to file an informal complaint with

3 the Commission and provide contact information. While the

4 pending dispute is active at the Commission, an alternative

5 gas supplier may bill only for the undisputed amount until

6 the Commission has taken final action on the complaint.

7 (f) An alternative gas supplier that is certified to serve

8 residential or small commercial customers shall not:

9 (1) deny service to a customer or group of customers

10 nor establish any differences as to prices, terms,

11 conditions, services, products, facilities, or in any

12 other respect, whereby such denial or differences are based

13 upon race, gender, or income;

14 (2) deny service based on locality, nor establish any

15 unreasonable difference as to prices, terms, conditions,

16 services, products, or facilities as between localities;

17 (3) include in any agreement a provision that obligates

18 a customer to the terms of the agreement if the customer

19 (i) moves outside the State of Illinois; (ii) moves to a

20 location without a transportation service program; or

21 (iii) moves to a location where the customer will not

22 require natural gas service, provided that nothing in this

23 subsection precludes an alternative gas supplier from

24 taking any action otherwise available to it to collect a

25 debt that arises out of service provided to the customer

26 before the customer moved; or

HB1453

- 39 -

LRB098 07060 JLS 37119 b

1 (4) assign the agreement to any alternative natural gas

2 supplier, unless:

3 (A) the supplier is an alternative gas supplier

4 certified by the Commission;

5 (B) the rates, terms, and conditions of the

6 agreement being assigned do not change during the

7 remainder of the time covered by the agreement;

8 (C) the customer is given no less than 30 days

9 prior written notice of the assignment and contact

10 information for the new supplier; and

11 (D) the supplier assigning the contract provides

12 contact information that a customer can use to resolve

13 a dispute.

14 (g) An alternative gas supplier shall comply with the

15 following requirements with respect to the marketing,

16 offering, and provision of products or services:

17 (1) Any marketing materials which make statements

18 concerning prices, terms, and conditions of service shall

19 contain information that adequately discloses the prices,

20 terms and conditions of the products or services.

21 (2) Before any customer is switched from another

22 supplier, the alternative gas supplier shall give the

23 customer written information that clearly and

24 conspicuously discloses, in plain language, the prices,

25 terms, and conditions of the products and services being

26 offered and sold to the customer. Nothing in this paragraph

HB1453

- 40 -

LRB098 07060 JLS 37119 b

1 (2) may be read to relieve an alternative gas supplier from

2 the duties imposed on it by item (3) of subsection (c) of

3 Section 2DDD of the Consumer Fraud and Deceptive Business

4 Practices Act.

5 (3) The alternative gas supplier shall provide to the

6 customer:

7 (A) accurate, timely, and itemized billing

8 statements that describe the products and services

9 provided to the customer and their prices and that

10 specify the gas consumption amount and any service

11 charges and taxes; provided that this item (g)(3)(A)

12 does not apply to small commercial customers;

13 (B) billing statements that clearly and

14 conspicuously discloses the name and contact

15 information for the alternative gas supplier;

16 (C) an additional statement, at least annually,

17 that adequately discloses the average monthly prices,

18 and the terms and conditions, of the products and

19 services sold to the customer; provided that this item

20 (g)(3)(C) does not apply to small commercial

21 customers;

22 (D) refunds of any deposits with interest within 30

23 days after the date that the customer changes gas

24 suppliers or discontinues service if the customer has

25 satisfied all of his or her outstanding financial

26 obligations to the alternative gas supplier at an

HB1453

- 41 -

LRB098 07060 JLS 37119 b

1 interest rate set by the Commission which shall be the

2 same as that required of gas utilities; and

3 (E) refunds, in a timely fashion, of all undisputed

4 overpayments upon the oral or written request of the

5 customer.

6 (4) An alternative gas supplier and its sales agents

7 shall refrain from any direct marketing or soliciting to

8 consumers on the gas utility's "Do Not Contact List", which

9 the alternative gas supplier shall obtain on the 15th

10 calendar day of the month from the gas utility in whose

11 service area the consumer is provided with gas service. If

12 the 15th calendar day is a non-business day, then the

13 alternative gas supplier shall obtain the list on the next

14 business day following the 15th calendar day of that month.

15 (5) Early Termination.

16 (A) Any agreement that contains an early

17 termination clause shall disclose the amount of the

18 early termination fee, provided that any early

19 termination fee or penalty shall not exceed $50 total,

20 regardless of whether or not the agreement is a

21 multiyear agreement.

22 (B) In any agreement that contains an early

23 termination clause, an alternative gas supplier shall

24 provide the customer the opportunity to terminate the

25 agreement without any termination fee or penalty until

26 ~~within 10 business days after~~ the due date of the first

HB1453

- 42 -

LRB098 07060 JLS 37119 b

1 bill issued to the customer for products or services

2 provided by the alternative gas supplier. The

3 agreement shall disclose the opportunity and provide a

4 toll-free phone number that the customer may call in

5 order to terminate the agreement.

6 (C) Any agreement entered into between a

7 residential customer and an alternative gas supplier

8 through the use of a door-to-door solicitation may not

9 contain an early termination fee.

10 (D) Any agreement or marketing solicitation that

11 offers a variable price that guarantees savings for any

12 period of time based upon a utility default rate may

13 not charge an early termination fee if the alternative

14 gas supplier price charged exceeds the utility default

15 rate.

16 (E) Nothing in this paragraph (5) removes the

17 obligation of the customer to pay for the products or

18 services provided by the alternative electric

19 supplier.

20 (6) Within 2 business days after electronic receipt of

21 a customer switch from the alternative gas supplier and

22 confirmation of eligibility, the gas utility shall provide

23 the customer written notice confirming the switch. The gas

24 utility shall not switch the service until 10 business days

25 after the date on the notice to the customer.

26 (7) The alternative gas supplier shall provide each

HB1453

- 43 -

LRB098 07060 JLS 37119 b

1 customer the opportunity to rescind its agreement without

2 penalty within 10 business days after the date on the gas

3 utility notice to the customer. The alternative gas

4 supplier shall disclose all of the following:

5 (A) that the gas utility shall send a notice

6 confirming the switch;

7 (B) that from the date the utility issues the

8 notice confirming the switch, the customer shall have

9 10 business days to rescind the switch without penalty;

10 (C) that the customer shall contact the gas utility

11 or the alternative gas supplier to rescind the switch;

12 and

13 (D) the contact information for the gas utility.

14 The alternative gas supplier disclosure shall be

15 included in its sales solicitations, contracts, and all

16 applicable sales verification scripts.

17 (h) An alternative gas supplier may limit the overall size

18 or availability of a service offering by specifying one or more

19 of the following:

20 (1) a maximum number of customers and maximum amount of

21 gas load to be served;

22 (2) time period during which the offering will be

23 available; or

24 (3) other comparable limitation, but not including the

25 geographic locations of customers within the area which the

26 alternative gas supplier is certificated to serve.

HB1453

- 44 -

LRB098 07060 JLS 37119 b

1 The alternative gas supplier shall file the terms and

2 conditions of such service offering including the applicable

3 limitations with the Commission prior to making the service

4 offering available to customers.

5 (i) Nothing in this Section shall be construed as

6 preventing an alternative gas supplier that is an affiliate of,

7 or which contracts with, (i) an industry or trade organization

8 or association, (ii) a membership organization or association

9 that exists for a purpose other than the purchase of gas, or

10 (iii) another organization that meets criteria established in a

11 rule adopted by the Commission from offering through the

12 organization or association services at prices, terms and

13 conditions that are available solely to the members of the

14 organization or association.

15 (Source: P.A. 95-1051, eff. 4-10-09.)

16 Section 99. Effective date. This Act takes effect upon

17 becoming law.