SB3903 EngrossedLRB102 24709 SPS 33949 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Sections 16-115 and 16-115A as follows:
 
6    (220 ILCS 5/16-115)
7    Sec. 16-115. Certification of alternative retail electric
8suppliers.
9    (a) Any alternative retail electric supplier must obtain a
10certificate of service authority from the Commission in
11accordance with this Section before serving any retail
12customer or other user located in this State. An alternative
13retail electric supplier may request, and the Commission may
14grant, a certificate of service authority for the entire State
15or for a specified geographic area of the State.
16    (b) An alternative retail electric supplier seeking a
17certificate of service authority shall file with the
18Commission a verified application containing information
19showing that the applicant meets the requirements of this
20Section. The alternative retail electric supplier shall
21publish notice of its application in the official State
22newspaper within 10 days following the date of its filing. No
23later than 45 days after the application is properly filed

 

 

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1with the Commission, and such notice is published, the
2Commission shall issue its order granting or denying the
3application.
4    (c) An application for a certificate of service authority
5shall identify the area or areas in which the applicant
6intends to offer service and the types of services it intends
7to offer. Applicants that seek to serve residential or small
8commercial retail customers within a geographic area that is
9smaller than an electric utility's service area shall submit
10evidence demonstrating that the designation of this smaller
11area does not violate Section 16-115A. An applicant that seeks
12to serve residential or small commercial retail customers may
13state in its application for certification any limitations
14that will be imposed on the number of customers or maximum load
15to be served.
16    (d) The Commission shall grant the application for a
17certificate of service authority if it makes the findings set
18forth in this subsection based on the verified application and
19such other information as the applicant may submit:
20        (1) That the applicant possesses sufficient technical,
21    financial and managerial resources and abilities to
22    provide the service for which it seeks a certificate of
23    service authority. In determining the level of technical,
24    financial and managerial resources and abilities which the
25    applicant must demonstrate, the Commission shall consider
26    (i) the characteristics, including the size and financial

 

 

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1    sophistication, of the customers that the applicant seeks
2    to serve; , and (ii) whether the applicant seeks to provide
3    electric power and energy using property, plant and
4    equipment which it owns, controls or operates; and (iii)
5    the applicant's commitment of resources to the management
6    of sales and marketing staff, through affirmative
7    managerial policies, independent audits, technology,
8    hands-on field monitoring, and training, and in the case
9    of applicants who have sales personnel or sales agents
10    within the State, the applicant's managerial presence
11    within the State;
12        (2) That the applicant will comply with all applicable
13    federal, State, regional and industry rules, policies,
14    practices and procedures for the use, operation, and
15    maintenance of the safety, integrity and reliability, of
16    the interconnected electric transmission system;
17        (3) That the applicant will only provide service to
18    retail customers in an electric utility's service area
19    that are eligible to take delivery services under this
20    Act;
21        (4) That the applicant will comply with such
22    informational or reporting requirements as the Commission
23    may by rule establish and provide the information required
24    by Section 16-112. Any data related to contracts for the
25    purchase and sale of electric power and energy shall be
26    made available for review by the Staff of the Commission

 

 

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1    on a confidential and proprietary basis and only to the
2    extent and for the purposes which the Commission
3    determines are reasonably necessary in order to carry out
4    the purposes of this Act;
5        (5) That the applicant will procure renewable energy
6    resources in accordance with Section 16-115D of this Act,
7    and will source electricity from clean coal facilities, as
8    defined in Section 1-10 of the Illinois Power Agency Act,
9    in amounts at least equal to the percentages set forth in
10    subsections (c) and (d) of Section 1-75 of the Illinois
11    Power Agency Act. For purposes of this Section:
12            (i) (blank);
13            (ii) (blank);
14            (iii) the required sourcing of electricity
15        generated by clean coal facilities, other than the
16        initial clean coal facility, shall be limited to the
17        amount of electricity that can be procured or sourced
18        at a price at or below the benchmarks approved by the
19        Commission each year in accordance with item (1) of
20        subsection (c) and items (1) and (5) of subsection (d)
21        of Section 1-75 of the Illinois Power Agency Act;
22            (iv) all alternative retail electric suppliers
23        shall execute a sourcing agreement to source
24        electricity from the initial clean coal facility, on
25        the terms set forth in paragraphs (3) and (4) of
26        subsection (d) of Section 1-75 of the Illinois Power

 

 

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1        Agency Act, except that in lieu of the requirements in
2        subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
3        paragraph (3) of that subsection (d), the applicant
4        shall execute one or more of the following:
5                (1) if the sourcing agreement is a power
6            purchase agreement, a contract with the initial
7            clean coal facility to purchase in each hour an
8            amount of electricity equal to all clean coal
9            energy made available from the initial clean coal
10            facility during such hour, which the utilities are
11            not required to procure under the terms of
12            subsection (d) of Section 1-75 of the Illinois
13            Power Agency Act, multiplied by a fraction, the
14            numerator of which is the alternative retail
15            electric supplier's retail market sales of
16            electricity (expressed in kilowatthours sold) in
17            the State during the prior calendar month and the
18            denominator of which is the total sales of
19            electricity (expressed in kilowatthours sold) in
20            the State by alternative retail electric suppliers
21            during such prior month that are subject to the
22            requirements of this paragraph (5) of subsection
23            (d) of this Section and subsection (d) of Section
24            1-75 of the Illinois Power Agency Act plus the
25            total sales of electricity (expressed in
26            kilowatthours sold) by utilities outside of their

 

 

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1            service areas during such prior month, pursuant to
2            subsection (c) of Section 16-116 of this Act; or
3                (2) if the sourcing agreement is a contract
4            for differences, a contract with the initial clean
5            coal facility in each hour with respect to an
6            amount of electricity equal to all clean coal
7            energy made available from the initial clean coal
8            facility during such hour, which the utilities are
9            not required to procure under the terms of
10            subsection (d) of Section 1-75 of the Illinois
11            Power Agency Act, multiplied by a fraction, the
12            numerator of which is the alternative retail
13            electric supplier's retail market sales of
14            electricity (expressed in kilowatthours sold) in
15            the State during the prior calendar month and the
16            denominator of which is the total sales of
17            electricity (expressed in kilowatthours sold) in
18            the State by alternative retail electric suppliers
19            during such prior month that are subject to the
20            requirements of this paragraph (5) of subsection
21            (d) of this Section and subsection (d) of Section
22            1-75 of the Illinois Power Agency Act plus the
23            total sales of electricity (expressed in
24            kilowatthours sold) by utilities outside of their
25            service areas during such prior month, pursuant to
26            subsection (c) of Section 16-116 of this Act;

 

 

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1            (v) if, in any year after the first year of
2        commercial operation, the owner of the clean coal
3        facility fails to demonstrate to the Commission that
4        the initial clean coal facility captured and
5        sequestered at least 50% of the total carbon emissions
6        that the facility would otherwise emit or that
7        sequestration of emissions from prior years has
8        failed, resulting in the release of carbon into the
9        atmosphere, the owner of the facility must offset
10        excess emissions. Any such carbon offsets must be
11        permanent, additional, verifiable, real, located
12        within the State of Illinois, and legally and
13        practicably enforceable. The costs of any such offsets
14        that are not recoverable shall not exceed $15 million
15        in any given year. No costs of any such purchases of
16        carbon offsets may be recovered from an alternative
17        retail electric supplier or its customers. All carbon
18        offsets purchased for this purpose and any carbon
19        emission credits associated with sequestration of
20        carbon from the facility must be permanently retired.
21        The initial clean coal facility shall not forfeit its
22        designation as a clean coal facility if the facility
23        fails to fully comply with the applicable carbon
24        sequestration requirements in any given year, provided
25        the requisite offsets are purchased. However, the
26        Attorney General, on behalf of the People of the State

 

 

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1        of Illinois, may specifically enforce the facility's
2        sequestration requirement and the other terms of this
3        contract provision. Compliance with the sequestration
4        requirements and offset purchase requirements that
5        apply to the initial clean coal facility shall be
6        reviewed annually by an independent expert retained by
7        the owner of the initial clean coal facility, with the
8        advance written approval of the Attorney General;
9            (vi) The Commission shall, after notice and
10        hearing, revoke the certification of any alternative
11        retail electric supplier that fails to execute a
12        sourcing agreement with the initial clean coal
13        facility as required by item (5) of subsection (d) of
14        this Section. The sourcing agreements with this
15        initial clean coal facility shall be subject to both
16        approval of the initial clean coal facility by the
17        General Assembly and satisfaction of the requirements
18        of item (4) of subsection (d) of Section 1-75 of the
19        Illinois Power Agency Act, and shall be executed
20        within 90 days after any such approval by the General
21        Assembly. The Commission shall not accept an
22        application for certification from an alternative
23        retail electric supplier that has lost certification
24        under this subsection (d), or any corporate affiliate
25        thereof, for at least one year from the date of
26        revocation;

 

 

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1        (6) With respect to an applicant that seeks to serve
2    residential or small commercial retail customers, that the
3    area to be served by the applicant and any limitations it
4    proposes on the number of customers or maximum amount of
5    load to be served meet the provisions of Section 16-115A,
6    provided, that the Commission can extend the time for
7    considering such a certificate request by up to 90 days,
8    and can schedule hearings on such a request;
9        (7) That the applicant meets the requirements of
10    subsection (a) of Section 16-128;
11        (8) That the applicant discloses whether the applicant
12    is the subject of any lawsuit filed in a court of law or
13    formal complaint filed with a regulatory agency alleging
14    fraud, deception, or unfair marketing practices or other
15    similar allegations and, if the applicant is the subject
16    of such lawsuit or formal complaint, the applicant shall
17    identify the name, case number, and jurisdiction of each
18    lawsuit or complaint. For the purpose of this item (8),
19    "formal complaint" includes only those complaints that
20    seek a binding determination from a State or federal
21    regulatory body;
22        (9) That the applicant shall continue to comply with
23    requirements for certification stated in this Section;
24        (10) That the applicant shall execute and maintain a
25    license or permit bond issued by a qualifying surety or
26    insurance company authorized to transact business in the

 

 

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1    State of Illinois in favor of the People of the State of
2    Illinois. The amount of the bond shall equal $30,000 if
3    the applicant seeks to serve only nonresidential retail
4    customers with maximum electrical demands of one megawatt
5    or more, $150,000 if the applicant seeks to serve only
6    non-residential retail customers with annual electrical
7    consumption greater than 15,000 kWh, or $500,000 if the
8    applicant seeks to serve all eligible customers.
9    Applicants shall be required to submit an additional
10    $500,000 bond if the applicant intends to market to
11    residential customers using in-person solicitations. The
12    bond shall be conditioned upon the full and faithful
13    performance of all duties and obligations of the applicant
14    as an alternative retail electric supplier and shall be
15    valid for a period of not less than one year. The cost of
16    the bond shall be paid by the applicant. The applicant
17    shall file a copy of this bond, with a notarized
18    verification page from the issuer, as part of its
19    application for certification under 83 Ill. Adm. Code 451;
20    and
21        (11) That the applicant will comply with all other
22    applicable laws and regulations.
23    (d-3) The Commission may deny with prejudice an
24application in which the applicant fails to provide the
25Commission with information sufficient for the Commission to
26grant the application.

 

 

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1    (d-5) (Blank).
2    (e) A retail customer that owns a cogeneration or
3self-generation facility and that seeks certification only to
4provide electric power and energy from such facility to retail
5customers at separate locations which customers are both (i)
6owned by, or a subsidiary or other corporate affiliate of,
7such applicant and (ii) eligible for delivery services, shall
8be granted a certificate of service authority upon filing an
9application and notifying the Commission that it has entered
10into an agreement with the relevant electric utilities
11pursuant to Section 16-118. Provided, however, that if the
12retail customer owning such cogeneration or self-generation
13facility would not be charged a transition charge due to the
14exemption provided under subsection (f) of Section 16-108
15prior to the certification, and the retail customers at
16separate locations are taking delivery services in conjunction
17with purchasing power and energy from the facility, the retail
18customer on whose premises the facility is located shall not
19thereafter be required to pay transition charges on the power
20and energy that such retail customer takes from the facility.
21    (f) The Commission shall have the authority to promulgate
22rules and regulations to carry out the provisions of this
23Section. On or before May 1, 1999, the Commission shall adopt a
24rule or rules applicable to the certification of those
25alternative retail electric suppliers that seek to serve only
26nonresidential retail customers with maximum electrical

 

 

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1demands of one megawatt or more which shall provide for (i)
2expedited and streamlined procedures for certification of such
3alternative retail electric suppliers and (ii) specific
4criteria which, if met by any such alternative retail electric
5supplier, shall constitute the demonstration of technical,
6financial and managerial resources and abilities to provide
7service required by subsection (d) (1) of this Section, such
8as a requirement to post a bond or letter of credit, from a
9responsible surety or financial institution, of sufficient
10size for the nature and scope of the services to be provided;
11demonstration of adequate insurance for the scope and nature
12of the services to be provided; and experience in providing
13similar services in other jurisdictions.
14    (g) An alternative retail electric supplier may seek
15confidential treatment for the following information by filing
16an affidavit with the Commission so long as the affidavit
17meets the requirements in this subsection (g):
18        (1) the total annual kilowatt-hours delivered and sold
19    by an alternative retail electric supplier to retail
20    customers within each utility service territory and the
21    total annual kilowatt-hours delivered and sold by an
22    alternative retail electric supplier to retail customers
23    in all utility service territories in the preceding
24    calendar year as required by 83 Ill. Adm. Code 451.770;
25        (2) the total peak demand supplied by an alternative
26    retail electric supplier during the previous year in each

 

 

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1    utility service territory as required by 83 Ill. Adm. Code
2    465.40;
3        (3) a good faith estimate of the amount an alternative
4    retail electric supplier expects to be obliged to pay the
5    utility under single billing tariffs during the next 12
6    months and the amount of any bond or letter of credit used
7    to demonstrate an alternative retail electric supplier's
8    credit worthiness to provide single billing services
9    pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
10    The affidavit must be filed contemporaneously with the
11information for which confidential treatment is sought and
12must clearly state that the affiant seeks confidential
13treatment pursuant to this subsection (g) and the information
14for which confidential treatment is sought must be clearly
15identified on the confidential version of the document filed
16with the Commission. The affidavit must be accompanied by a
17"confidential" and a "public" version of the document or
18documents containing the information for which confidential
19treatment is sought.
20    If the alternative retail electric supplier has met the
21affidavit requirements of this subsection (g), then the
22Commission shall afford confidential treatment to the
23information identified in the affidavit for a period of 2
24years after the date the affidavit is received by the
25Commission.
26    Nothing in this subsection (g) prevents an alternative

 

 

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1retail electric supplier from filing a petition with the
2Commission seeking confidential treatment for information
3beyond that identified in this subsection (g) or for
4information contained in other reports or documents filed with
5the Commission.
6    Nothing in this subsection (g) prevents the Commission, on
7its own motion, or any party from filing a formal petition with
8the Commission seeking to reconsider the conferring of
9confidential status on an item of information afforded
10confidential treatment pursuant to this subsection (g).
11    The Commission, on its own motion, may at any time
12initiate a docketed proceeding to investigate the continued
13applicability of this subsection (g) to the information
14contained in items (i), (ii), and (iii) of this subsection
15(g). If, at the end of such investigation, the Commission
16determines that a particular item of information should no
17longer be eligible for the affidavit-based process outlined in
18this subsection (g), the Commission may enter an order to
19remove that item from the list of items eligible for the
20process set forth in this subsection (g). Notwithstanding any
21such order, in the event the Commission makes such a
22determination, nothing in this subsection (g) prevents an
23alternative retail electric supplier desiring confidential
24treatment for such information from filing a formal petition
25with the Commission seeking confidential treatment for such
26information.

 

 

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1(Source: P.A. 101-590, eff. 1-1-20.)
 
2    (220 ILCS 5/16-115A)
3    Sec. 16-115A. Obligations of alternative retail electric
4suppliers.
5    (a) An alternative retail electric supplier:
6        (i) shall comply with the requirements imposed on
7    public utilities by Sections 8-201 through 8-207, 8-301,
8    8-505 and 8-507 of this Act, to the extent that these
9    Sections have application to the services being offered by
10    the alternative retail electric supplier;
11        (ii) shall continue to comply with the requirements
12    for certification stated in subsection (d) of Section
13    16-115;
14        (iii) by May 31, 2020 and every June 30 thereafter,
15    shall submit to the Commission and the Office of the
16    Attorney General the rates the retail electric supplier
17    charged to residential customers in the prior year,
18    including each distinct rate charged and whether the rate
19    was a fixed or variable rate, the basis for the variable
20    rate, and any fees charged in addition to the supply rate,
21    including monthly fees, flat fees, or other service
22    charges; and
23        (iv) shall make publicly available on its website,
24    without the need for a customer login, rate information
25    for all of its variable, time-of-use, and fixed rate

 

 

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1    contracts currently available to residential customers,
2    including, but not limited to, fixed monthly charges,
3    early termination fees, and kilowatt-hour charges.
4    (b) An alternative retail electric supplier shall obtain
5verifiable authorization from a customer, in a form or manner
6approved by the Commission consistent with Section 2EE of the
7Consumer Fraud and Deceptive Business Practices Act, before
8the customer is switched from another supplier.
9    (c) No alternative retail electric supplier, or electric
10utility other than the electric utility in whose service area
11a customer is located, shall (i) enter into or employ any
12arrangements which have the effect of preventing a retail
13customer with a maximum electrical demand of less than one
14megawatt from having access to the services of the electric
15utility in whose service area the customer is located or (ii)
16charge retail customers for such access. This subsection shall
17not be construed to prevent an arms-length agreement between a
18supplier and a retail customer that sets a term of service,
19notice period for terminating service and provisions governing
20early termination through a tariff or contract as allowed by
21Section 16-119.
22    (d) An alternative retail electric supplier that is
23certified to serve residential or small commercial retail
24customers shall not:
25        (1) deny service to a customer or group of customers
26    nor establish any differences as to prices, terms,

 

 

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1    conditions, services, products, facilities, or in any
2    other respect, whereby such denial or differences are
3    based upon race, gender or income, except as provided in
4    Section 16-115E.
5        (2) deny service to a customer or group of customers
6    based on locality nor establish any unreasonable
7    difference as to prices, terms, conditions, services,
8    products, or facilities as between localities.
9    (e) An alternative retail electric supplier shall comply
10with the following requirements with respect to the marketing,
11offering and provision of products or services to residential
12and small commercial retail customers:
13        (i) All marketing materials, including, but not
14    limited to, electronic marketing materials, in-person
15    solicitations, and telephone solicitations, shall contain
16    information that adequately discloses the prices, terms,
17    and conditions of the products or services that the
18    alternative retail electric supplier is offering or
19    selling to the customer and shall disclose the current
20    utility electric supply price to compare applicable at the
21    time the alternative retail electric supplier is offering
22    or selling the products or services to the customer and
23    shall disclose the date on which the utility electric
24    supply price to compare became effective and the date on
25    which it will expire. The utility electric supply price to
26    compare shall be the sum of the electric supply charge and

 

 

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1    the transmission services charge and shall not include the
2    purchased electricity adjustment. The disclosure shall
3    include a statement that the price to compare does not
4    include the purchased electricity adjustment, and, if
5    applicable, the range of the purchased electricity
6    adjustment. All marketing materials, including, but not
7    limited to, electronic marketing materials, in-person
8    solicitations, and telephone solicitations, shall include
9    the following statement:
10            "(Name of the alternative retail electric
11        supplier) is not the same entity as your electric
12        delivery company. You are not required to enroll with
13        (name of alternative retail electric supplier).
14        Beginning on (effective date), the electric supply
15        price to compare is (price in cents per kilowatt
16        hour). The electric utility electric supply price will
17        expire on (expiration date). The utility electric
18        supply price to compare does not include the purchased
19        electricity adjustment factor. For more information go
20        to the Illinois Commerce Commission's free website at
21        www.pluginillinois.org.".
22        If applicable, the statement shall also include the
23    following statement:
24            "The purchased electricity adjustment factor may
25        range between +.5 cents and -.5 cents per kilowatt
26        hour.".

 

 

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1        This paragraph (i) does not apply to goodwill or
2    institutional advertising.
3        (ii) Before any customer is switched from another
4    supplier, the alternative retail electric supplier shall
5    give the customer written information that adequately
6    discloses, in plain language, the prices, terms and
7    conditions of the products and services being offered and
8    sold to the customer. This written information shall be
9    provided in a language in which the customer subject to
10    the marketing or solicitation is able to understand and
11    communicate, and the alternative retail electric supplier
12    shall not switch a customer who is unable to understand
13    and communicate in a language in which the marketing or
14    solicitation was conducted. The alternative retail
15    electric supplier shall comply with Section 2N of the
16    Consumer Fraud and Deceptive Business Practices Act.
17        (iii) An alternative retail electric supplier shall
18    provide documentation to the Commission and to customers
19    that substantiates any claims made by the alternative
20    retail electric supplier regarding the technologies and
21    fuel types used to generate the electricity offered or
22    sold to customers.
23        (iv) The alternative retail electric supplier shall
24    provide to the customer (1) itemized billing statements
25    that describe the products and services provided to the
26    customer and their prices, and (2) an additional

 

 

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1    statement, at least annually, that adequately discloses
2    the average monthly prices, and the terms and conditions,
3    of the products and services sold to the customer.
4        (v) All in-person and telephone solicitations shall be
5    conducted in, translated into, and provided in a language
6    in which the consumer subject to the marketing or
7    solicitation is able to understand and communicate. An
8    alternative retail electric supplier shall terminate a
9    solicitation if the consumer subject to the marketing or
10    communication is unable to understand and communicate in
11    the language in which the marketing or solicitation is
12    being conducted. An alternative retail electric supplier
13    shall comply with Section 2N of the Consumer Fraud and
14    Deceptive Business Practices Act.
15        (vi) Each alternative retail electric supplier shall
16    conduct training for individual representatives engaged in
17    in-person solicitation and telemarketing to residential
18    customers on behalf of that alternative retail electric
19    supplier prior to conducting any such solicitations on the
20    alternative retail electric supplier's behalf. Each
21    alternative retail electric supplier shall submit a copy
22    of its training material to the Commission on an annual
23    basis and the Commission shall have the right to review
24    and require updates to the material. After initial
25    training, each alternative retail electric supplier shall
26    be required to conduct refresher training for its

 

 

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1    individual representatives every 6 months.
2    (f) An alternative retail electric supplier may limit the
3overall size or availability of a service offering by
4specifying one or more of the following: a maximum number of
5customers, maximum amount of electric load to be served, time
6period during which the offering will be available, or other
7comparable limitation, but not including the geographic
8locations of customers within the area which the alternative
9retail electric supplier is certificated to serve. The
10alternative retail electric supplier shall file the terms and
11conditions of such service offering including the applicable
12limitations with the Commission prior to making the service
13offering available to customers.
14    (f-5) An alternative retail electric supplier shall
15maintain sufficient managerial resources and abilities to
16provide the service for which it has a certificate of service
17authority. In determining the level of managerial resources
18and abilities that the alternative retail electric supplier
19must demonstrate, the Commission shall consider, in addition
20to the requirements in Section 16-115, the following:
21        (1) complaints to the Commission by consumers
22    regarding the alternative retail electric supplier,
23    including those that reflect on the alternative retail
24    electric supplier's ability to properly manage
25    solicitation and authorization; and
26        (2) the alternative retail electric's supplier's

 

 

SB3903 Engrossed- 22 -LRB102 24709 SPS 33949 b

1    involvement, including resources the alternative retail
2    electric supplier dedicates to the process and the
3    alternative retail electric supplier's ability to manage
4    the issues raised by complaints, and the resolutions of
5    the complaints.
6    (f-10) An alternative retail electric supplier shall file
7with the Commission a notification of any material change, as
8defined and prescribed by the Commission, to the information
9supplied in a certification application within 30 days after
10the material change.
11    (g) Nothing in this Section shall be construed as
12preventing an alternative retail electric supplier, which is
13an affiliate of, or which contracts with, (i) an industry or
14trade organization or association, (ii) a membership
15organization or association that exists for a purpose other
16than the purchase of electricity, or (iii) another
17organization that meets criteria established in a rule adopted
18by the Commission, from offering through the organization or
19association services at prices, terms and conditions that are
20available solely to the members of the organization or
21association.
22(Source: P.A. 101-590, eff. 1-1-20; 102-459, eff. 8-20-21.)