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92nd General Assembly

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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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