Full Text of SB0171 95th General Assembly
SB0171ham002 95TH GENERAL ASSEMBLY
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Rep. Thomas Holbrook
Filed: 1/12/2009
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| AMENDMENT TO SENATE BILL 171
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| AMENDMENT NO. ______. Amend Senate Bill 171 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Public Utilities Act is amended by changing | 5 |
| Sections 19-105, 19-110, 19-115, 19-120, and 19-125 and by | 6 |
| adding Sections 19-111 and 19-112 as follows:
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| (220 ILCS 5/19-105)
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| Sec. 19-105. Definitions. For the purposes of this Article, | 9 |
| the following
terms shall be defined as set forth in this | 10 |
| Section.
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| "Alternative gas supplier" means every person, | 12 |
| cooperative, corporation,
municipal corporation, company, | 13 |
| association, joint stock company or
association, firm,
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| partnership, individual, or other entity, their lessees, | 15 |
| trustees, or receivers
appointed by
any court whatsoever, that | 16 |
| offers gas for sale, lease, or in exchange for other
value
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| 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
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| 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
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| the purpose of administering, on a cooperative basis, the
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| furnishing of natural gas for the benefit of their members who
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| 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.
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| "Gas utility" means a public utility, as defined in Section | 22 |
| 3-105 of this
Act,
that
has a franchise, license, permit, or | 23 |
| right to furnish or sell gas
or transportation services to
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| customers within a service area.
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| "Residential customer" means a customer who receives gas | 26 |
| utility service for
household purposes distributed to a |
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| dwelling of 2 or fewer units which is
billed under
a | 2 |
| residential rate or gas utility service for household purposes | 3 |
| distributed to
a dwelling
unit or units which is billed under a | 4 |
| residential rate and is registered by a
separate meter
for each | 5 |
| dwelling unit.
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| "Sales agent" means any employee, agent, independent | 7 |
| contractor, consultant, or other person that is engaged by the | 8 |
| alternative gas supplier to solicit customers to purchase, | 9 |
| enroll in, or contract for alternative gas service on behalf of | 10 |
| an alternative gas supplier. | 11 |
| "Service area" means (i) the geographic area within which a | 12 |
| gas utility was
lawfully entitled to provide gas to customers | 13 |
| as of the effective date
of this
amendatory
Act of the 92nd | 14 |
| General Assembly and includes (ii) the location of any
customer | 15 |
| to
which the gas utility was lawfully providing gas utility | 16 |
| services on such
effective date.
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| "Small commercial customer" means a nonresidential retail | 18 |
| customer of
a
natural gas utility
who consumed is identified by | 19 |
| the alternative gas supplier, prior
to becoming a customer of | 20 |
| the alternative gas supplier, as
consuming 5,000 or fewer | 21 |
| therms of natural gas
during the previous year; provided that | 22 |
| any alternative gas
supplier may remove the customer from | 23 |
| designation as a "small
commercial customer" if the customer | 24 |
| consumes more than 5,000 therms
of natural gas in any calendar | 25 |
| year after becoming a customer of the
alternative gas supplier. | 26 |
| In determining whether a customer has consumed 5,000 or fewer |
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| therms of natural gas during the previous year, usage by the | 2 |
| same commercial customer shall be aggregated to include usage | 3 |
| at the same premises even if measured by more than one meter, | 4 |
| and to include usage at multiple premises. Nothing in this | 5 |
| Section creates an affirmative obligation on a gas utility to | 6 |
| monitor or inform customers or alternative gas suppliers as to | 7 |
| a customer's status as a small commercial customer as that term | 8 |
| is defined herein. Nothing in this Section relieves a gas | 9 |
| utility from any obligation to provide information upon request | 10 |
| to a customer, alternative gas supplier, the Commission, or | 11 |
| others necessary to determine whether a customer meets the | 12 |
| classification of small commercial customers as that term is | 13 |
| defined herein.
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| "Tariffed service" means a service provided to customers by | 15 |
| a gas
utility as
defined by its rates on file with the | 16 |
| Commission pursuant to the provisions of
Article IX
of this | 17 |
| Act.
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| "Transportation services" means those services provided by | 19 |
| the gas utility
that
are necessary in order for the storage, | 20 |
| transmission and distribution systems
to
function so that
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| customers located in the gas utility's service area can receive | 22 |
| gas from
suppliers other
than the gas utility and shall | 23 |
| include, without limitation, standard metering
and billing
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| services.
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| (Source: P.A. 94-738, eff. 5-4-06.)
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| (220 ILCS 5/19-110)
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| Sec. 19-110. Certification of alternative gas suppliers.
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| (a) The provisions of this Section shall apply only to | 4 |
| alternative gas
suppliers
serving or seeking to serve | 5 |
| residential or small commercial customers and
only to the | 6 |
| extent such
alternative gas suppliers provide services to | 7 |
| residential or small
commercial customers.
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| (b) An alternative gas supplier must obtain a certificate | 9 |
| of service
authority from the Commission in accordance with | 10 |
| this Section before serving
any customer or other user located | 11 |
| in this State. An alternative gas supplier
may request, and the | 12 |
| Commission may grant, a certificate of service authority
for | 13 |
| the entire State or for a specified geographic area of the | 14 |
| State. A
person, corporation, or other entity acting as an | 15 |
| alternative gas supplier on
the effective date of this | 16 |
| amendatory Act of the 92nd General Assembly shall
have 180 days | 17 |
| from the effective date of this amendatory Act of the 92nd
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| General Assembly to comply with the requirements of this | 19 |
| Section in order to
continue to operate as an alternative gas | 20 |
| supplier.
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| (c) An alternative gas supplier seeking a certificate of | 22 |
| service authority
shall
file with the Commission a verified | 23 |
| application containing information showing
that the
applicant | 24 |
| meets the requirements of this Section. The alternative gas | 25 |
| supplier
shall
publish notice of its application in the | 26 |
| official State newspaper within 10
days following
the date of |
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| its filing. No later than 45 days after the application is
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| properly filed with the
Commission, and such notice is | 3 |
| published, the Commission shall issue its order
granting or | 4 |
| denying the application.
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| (d) An application for a certificate of service authority | 6 |
| shall identify the
area or
areas in which the applicant intends | 7 |
| to offer service and the types of services
it intends
to offer. | 8 |
| Applicants that seek to serve residential or small commercial
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| customers within a
geographic area that is smaller than a gas | 10 |
| utility's service area shall submit
evidence demonstrating | 11 |
| that the designation of this smaller area does not
violate | 12 |
| Section 19-115. An
applicant may
state in its application for | 13 |
| certification any limitations that will be imposed
on the | 14 |
| number
of customers or maximum load to be served. The applicant | 15 |
| shall submit as part of its application a statement indicating:
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| (1) Whether the applicant has been denied a natural gas | 17 |
| supplier license in any state in the United States. | 18 |
| (2) Whether the applicant has had a natural gas | 19 |
| supplier license suspended or revoked by any state in the | 20 |
| United States. | 21 |
| (3) Where, if any, other natural gas supplier license | 22 |
| applications are pending in the United States. | 23 |
| (4) Whether the applicant is the subject of any | 24 |
| lawsuits filed in a court of law or formal complaints filed | 25 |
| with a regulatory agency alleging fraud, deception or | 26 |
| unfair marketing practices, or other similar allegations, |
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| identifying the name, case number, and jurisdiction of each | 2 |
| such lawsuit or complaint. | 3 |
| For the purposes of this subsection (d), formal complaints | 4 |
| include only those complaints that seek a binding determination | 5 |
| from a state or federal regulatory body. | 6 |
| (e) The Commission shall grant the application for a | 7 |
| certificate of service
authority if it makes the findings set | 8 |
| forth in this subsection based on the
verified
application and | 9 |
| such other information as the applicant may submit.
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| (1) That the applicant possesses possess sufficient | 11 |
| technical, financial, and
managerial resources and | 12 |
| abilities to provide the service for which it
seeks a | 13 |
| certificate of service authority. In determining the level | 14 |
| of
technical, financial, and managerial resources and | 15 |
| abilities which the
applicant must demonstrate, the | 16 |
| Commission shall consider :
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| (A) the characteristics, including the size and | 18 |
| financial sophistication of the
customers that the | 19 |
| applicant seeks to serve ; , and shall consider | 20 |
| (B) whether the
applicant seeks to provide gas | 21 |
| using property, plant, and equipment that it
owns, | 22 |
| controls, or operates ; and | 23 |
| (C) the applicant's commitment of resources to the | 24 |
| management of sales and marketing staff, through | 25 |
| affirmative managerial policies, independent audits, | 26 |
| technology, hands-on field monitoring and training, |
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| and, in the case of applicants who will have sales | 2 |
| personnel or sales agents within the State of Illinois, | 3 |
| the applicant's managerial presence within the State .
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| (2) That the applicant will comply with all applicable | 5 |
| federal, State,
regional, and industry rules, policies, | 6 |
| practices, and procedures
for the use, operation, and | 7 |
| maintenance of the safety, integrity, and
reliability of | 8 |
| the gas transmission system.
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| (3) That the applicant will comply with such | 10 |
| informational or reporting
requirements as the Commission | 11 |
| may by rule establish.
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| (4) That
the area to be served by the applicant and any | 13 |
| limitations it proposes on the
number of customers or | 14 |
| maximum amount of load to be served meet the provisions
of | 15 |
| Section 19-115, provided, that if the applicant seeks to | 16 |
| serve an area
smaller than the service area of a gas | 17 |
| utility or proposes other limitations
on the number of | 18 |
| customers or maximum amount of load to be served, the
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| Commission can extend the time for
considering such a | 20 |
| certificate request by up to 90 days, and can schedule
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| hearings on such a request.
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| (5) That the applicant and the applicant's sales agents | 23 |
| will comply with all other applicable laws and
rules.
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| (f) The Commission can extend the time for considering such | 25 |
| a certificate request by up to 90 days, and can schedule | 26 |
| hearings on such a request if: |
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| (1) a party to the application proceeding has formally | 2 |
| requested that the Commission hold hearings in a pleading | 3 |
| that alleges that one or more of the allegations or | 4 |
| certifications in the application is false or misleading; | 5 |
| or | 6 |
| (2) other facts or circumstances exist that will | 7 |
| necessitate additional time or evidence in order to | 8 |
| determine whether a certificate should be issued. | 9 |
| (g) (f) The Commission shall have the authority to | 10 |
| promulgate rules
to carry out the provisions of this Section. | 11 |
| Within 30 days after the
effective date of this amendatory Act | 12 |
| of the 92nd General Assembly, the
Commission shall adopt an | 13 |
| emergency rule or rules applicable to the
certification of | 14 |
| those gas suppliers that seek to serve residential customers.
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| Within 180 days of
the effective
date of this amendatory Act of | 16 |
| the 92nd General Assembly, the Commission shall
adopt
rules | 17 |
| that specify criteria which, if met by any such alternative gas
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| supplier, shall
constitute the demonstration of technical, | 19 |
| financial, and managerial resources
and
abilities to provide | 20 |
| service required by item (1) of subsection (e) of this
Section,
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| such as a
requirement to post a bond or letter of credit, from | 22 |
| a responsible surety or
financial
institution, of sufficient | 23 |
| size for the nature and scope of the services to be
provided,
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| demonstration of adequate insurance for the scope and nature of | 25 |
| the services to
be
provided, and experience in providing | 26 |
| similar services in other
jurisdictions.
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| (h) The Commission may deny with prejudice any application | 2 |
| that repeatedly fails to include the attachments, | 3 |
| documentation, and affidavits required by the application form | 4 |
| or that repeatedly fails to provide any other information | 5 |
| required by this Section. | 6 |
| (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
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| (220 ILCS 5/19-111 new) | 8 |
| Sec. 19-111. Material changes in business. | 9 |
| (a) The provisions of this Section shall apply only to | 10 |
| alternative gas suppliers serving or seeking to serve | 11 |
| residential or small commercial customers and only to the | 12 |
| extent such alternative gas suppliers provide services to | 13 |
| residential or small commercial customers. | 14 |
| (b) Alternative gas suppliers shall file with the | 15 |
| Commission a notification of any material change to the | 16 |
| information supplied in a certification application within 30 | 17 |
| days of such material change. | 18 |
| (1) An alternative gas supplier shall file such notice | 19 |
| under the docket number assigned to the alternative gas | 20 |
| supplier's certification application, whichever is the | 21 |
| most recent. The supplier shall also serve such notice upon | 22 |
| the gas utility company serving customers in the service | 23 |
| area where the alternative gas supplier is certified to | 24 |
| provide service. | 25 |
| (2) After notice and an opportunity for a hearing, the |
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| Commission may (i) suspend, rescind, or conditionally | 2 |
| rescind an alternative gas supplier's certificate if it | 3 |
| determines that the material change will adversely affect | 4 |
| the alternative gas supplier's fitness or ability to | 5 |
| provide the services for which it is certified or (ii) | 6 |
| require the alternative gas supplier to provide reasonable | 7 |
| financial assurances sufficient to protect their customers | 8 |
| and gas utilities from default. | 9 |
| (c) Material changes to the information contained in or | 10 |
| supplied with a certification application include, but are not | 11 |
| limited to, the following: | 12 |
| (1) Any significant change in ownership (an ownership | 13 |
| interest of 5% or more) of the applicant or alternative gas | 14 |
| supplier. | 15 |
| (2) An affiliation with any gas utility or change of an | 16 |
| affiliation with a gas utility in this State. | 17 |
| (3) Retirement or other long-term changes to the | 18 |
| operational status of supply resources relied upon by the | 19 |
| alternative gas supplier to provide alternative gas | 20 |
| service. Changes in the volume of supply from any given | 21 |
| supply resource replaced by a comparable supply resource do | 22 |
| not need to be reported. | 23 |
| (4) Revocation, restriction, or termination of any | 24 |
| interconnection or service agreement with a pipeline | 25 |
| company or natural gas company relied upon by an | 26 |
| alternative gas supplier to provide alternative retail |
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| natural gas service, but only if such revocation, | 2 |
| restriction, or termination creates a situation in which | 3 |
| the alternative gas supplier does not meet the tariffed | 4 |
| capacity requirements of the relevant Illinois natural gas | 5 |
| utility or utilities. | 6 |
| (5) If the alternative gas supplier has a long-term | 7 |
| bond rating from Standard & Poor's or its successor, or | 8 |
| Fitch Ratings or its successor, or Moody's Investor Service | 9 |
| or its successor, and the alternative gas supplier's | 10 |
| long-term bond rating falls below BBB as reported by | 11 |
| Standard & Poor's or its successor or Fitch Ratings or its | 12 |
| successor or below Baa3 as reported by Moody's Investors | 13 |
| Service or its successor. | 14 |
| (6) The applicant or alternative gas supplier has or | 15 |
| intends to file for reorganization, protection from | 16 |
| creditors, or any other form of bankruptcy with any court. | 17 |
| (7) Any judgment, finding, or ruling by a court or | 18 |
| regulatory agency that could affect an alternative gas | 19 |
| supplier's fitness or ability to provide service in this | 20 |
| State. | 21 |
| (8) Any change in the alternative gas supplier's name | 22 |
| or logo, including without limitation any change in the | 23 |
| alternative gas supplier's legal name, fictitious names, | 24 |
| or assumed business names, except for logos and names the | 25 |
| alternative gas supplier provided as part of its original | 26 |
| certification process or that the alternative gas supplier |
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| previously provided to the Commission under this Section. | 2 |
| (220 ILCS 5/19-112 new) | 3 |
| Sec. 19-112. Managerial resources. | 4 |
| (a) An alternative gas supplier must maintain sufficient | 5 |
| managerial resources and abilities to provide the service for | 6 |
| which it has a certificate of service authority. In determining | 7 |
| the level of managerial resources and abilities that the | 8 |
| alternative gas supplier must demonstrate, the Commission | 9 |
| shall consider, in addition to the requirements in | 10 |
| 19-110(e)(1), the following: | 11 |
| (1) complaints to the Commission by consumers | 12 |
| regarding the alternative gas supplier, including those | 13 |
| that reflect on the alternative gas supplier's ability to | 14 |
| properly manage solicitation and authorization; and | 15 |
| (2) the alternative gas supplier's involvement in the | 16 |
| Commission's consumer complaint process, including the | 17 |
| resources the alternative gas supplier dedicates to the | 18 |
| process and the alternative gas supplier's ability to | 19 |
| manage the issues raised by complaints, and the resolutions | 20 |
| of the complaints. | 21 |
| (b) The provisions of this Section shall apply only to | 22 |
| alternative gas suppliers serving or seeking to serve | 23 |
| residential or small commercial customers and only to the | 24 |
| extent such alternative gas suppliers provide services to | 25 |
| residential or small commercial customers, unless otherwise |
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| noted.
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| (220 ILCS 5/19-115)
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| Sec. 19-115. Obligations of alternative gas suppliers.
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| (a) The provisions of this Section shall apply only to | 5 |
| alternative gas
suppliers
serving or seeking to serve | 6 |
| residential or small commercial customers and
only to the | 7 |
| extent such
alternative gas suppliers provide services to | 8 |
| residential or small
commercial customers.
| 9 |
| (b) An alternative gas supplier shall:
| 10 |
| (1) comply with the requirements imposed on public | 11 |
| utilities by Sections
8-201 through 8-207, 8-301, 8-505 and | 12 |
| 8-507 of this Act, to the
extent that these Sections have | 13 |
| application to the services being
offered by the | 14 |
| alternative gas supplier; and
| 15 |
| (2) continue to comply with the requirements for | 16 |
| certification stated
in
Section 19-110.
| 17 |
| (3) comply with complaint procedures established by | 18 |
| the Commission; | 19 |
| (4) except as provided in subsection (h) of this | 20 |
| Section, file with the Chief Clerk of the Commission, | 21 |
| within 20 business days after the effective date of this | 22 |
| amendatory Act of the 95th General Assembly, a copy of bill | 23 |
| formats, standard customer contract and customer complaint | 24 |
| and resolution procedures, and the name and telephone | 25 |
| number of the company representative whom Commission |
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| employees may contact to resolve customer complaints and | 2 |
| other matters. In the case of a gas supplier that engages | 3 |
| in door-to-door solicitation, the company shall file with | 4 |
| the Commission the consumer information disclosure | 5 |
| required by item (3) of subsection (c) of Section 2DDD the | 6 |
| Consumer Fraud and Deceptive Business Practices Act and | 7 |
| shall file updated information within 10 business days | 8 |
| after changes in any of the documents or information | 9 |
| required to be filed by this item (4); and | 10 |
| (5) maintain a customer call center where customers can | 11 |
| reach a representative and receive current information. At | 12 |
| least once every 6 months, each alternative gas supplier | 13 |
| shall provide written information to customers explaining | 14 |
| how to contact the call center. The average answer time for | 15 |
| calls placed to the call center shall not exceed 60 seconds | 16 |
| where a representative or automated system is ready to | 17 |
| render assistance and/or accept information to process | 18 |
| calls. The abandon rate for calls placed to the call center | 19 |
| shall not exceed 10%. Each alternative gas supplier shall | 20 |
| maintain records of the call center's telephone answer time | 21 |
| performance and abandon call rate. These records shall be | 22 |
| kept for a minimum of 2 years and shall be made available | 23 |
| to Commission personnel upon request. In the event that | 24 |
| answer times and/or abandon rates exceed the limits | 25 |
| established above, the reporting alternative gas supplier | 26 |
| may provide the Commission or its personnel with |
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| explanatory details. At a minimum, these records shall | 2 |
| contain the following information in monthly increments: | 3 |
| (A) total number of calls received; | 4 |
| (B) number of calls answered; | 5 |
| (C) average answer time; | 6 |
| (D) number of abandoned calls; and | 7 |
| (E) abandon call rate. | 8 |
| Alternative gas suppliers that do not have electronic | 9 |
| answering capability that meets these requirements shall | 10 |
| notify the Manager of the Commission's Consumer Services | 11 |
| Division or its successor within 30 days following the | 12 |
| effective date of this amendatory Act of the 95th General | 13 |
| Assembly and work with Staff to develop individualized | 14 |
| reporting requirements as to the call volume and responsiveness | 15 |
| of the call center. | 16 |
| On or before March 1 of every year, each entity shall file | 17 |
| a report with the Chief Clerk of the Commission for the | 18 |
| preceding calendar year on its answer time and abandon call | 19 |
| rate for its call center. A copy of the report shall be sent to | 20 |
| the Manager of the Consumer Services Division or its successor. | 21 |
| (c) An alternative gas supplier shall not submit or execute | 22 |
| a change in a customer's selection of a natural gas provider | 23 |
| unless and until (i) the alternative gas supplier first | 24 |
| discloses all material terms and conditions of the offer to the | 25 |
| customer; (ii) the alternative gas supplier has obtained the | 26 |
| customer's express agreement to accept the offer after the |
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| disclosure of all material terms and conditions of the offer; | 2 |
| and (iii) the alternative gas supplier has confirmed the | 3 |
| request for a change in accordance with one of the following | 4 |
| procedures: | 5 |
| (1) The alternative gas supplier has obtained the | 6 |
| customer's written or electronically signed authorization | 7 |
| in a form that meets the following requirements: | 8 |
| (A) An alternative gas supplier shall obtain any | 9 |
| necessary written or electronically signed | 10 |
| authorization from a customer for a change in natural | 11 |
| gas service by using a letter of agency as specified in | 12 |
| this Section. Any letter of agency that does not | 13 |
| conform with this Section is invalid. | 14 |
| (B) The letter of agency shall be a separate | 15 |
| document (or an easily separable document containing | 16 |
| only the authorization language described in item (E) | 17 |
| of this paragraph (1)) whose sole purpose is to | 18 |
| authorize a natural gas provider change. The letter of | 19 |
| agency must be signed and dated by the customer | 20 |
| requesting the natural gas provider change. | 21 |
| (C) The letter of agency shall not be combined with | 22 |
| inducements of any kind on the same document. | 23 |
| (D) Notwithstanding items (A) and (B) of this | 24 |
| paragraph (1), the letter of agency may be combined | 25 |
| with checks that contain only the required letter of | 26 |
| agency language prescribed in item (E) of this |
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| paragraph (1) and the necessary information to make the | 2 |
| check a negotiable instrument. The letter of agency | 3 |
| check shall not contain any promotional language or | 4 |
| material. The letter of agency check shall contain in | 5 |
| easily readable, bold face type on the face of the | 6 |
| check a notice that the consumer is authorizing a | 7 |
| natural gas provider change by signing the check. The | 8 |
| letter of agency language also shall be placed near the | 9 |
| signature line on the back of the check. | 10 |
| (E) At a minimum, the letter of agency must be | 11 |
| printed with a print of sufficient size to be clearly | 12 |
| legible and must contain clear and unambiguous | 13 |
| language that confirms: | 14 |
| (i) the customer's billing name and address; | 15 |
| (ii) the decision to change the natural gas | 16 |
| provider from the current provider to the | 17 |
| prospective alternative gas supplier; | 18 |
| (iii) the terms, conditions, and nature of the | 19 |
| service to be provided to the customer, including, | 20 |
| but not limited to, the rates for the service | 21 |
| contracted for by the customer; and | 22 |
| (iv) that the customer understands that any | 23 |
| natural gas provider selection the customer | 24 |
| chooses may involve a charge to the customer for | 25 |
| changing the customer's natural gas provider. | 26 |
| (F) Letters of agency shall not suggest or require |
|
|
|
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| 1 |
| that a customer take some action in order to retain the | 2 |
| customer's current natural gas provider. | 3 |
| (G) If any portion of a letter of agency is | 4 |
| translated into another language, then all portions of | 5 |
| the letter of agency must be translated into that | 6 |
| language. | 7 |
| (2) An appropriately qualified independent third party | 8 |
| has obtained, in accordance with the procedures set forth | 9 |
| in this paragraph (2), the customer's oral authorization to | 10 |
| change natural gas providers that confirms and includes | 11 |
| appropriate verification data. The independent third party | 12 |
| must (i) not be owned, managed, controlled, or directed by | 13 |
| the alternative gas supplier or the alternative gas | 14 |
| supplier's marketing agent; (ii) not have any financial | 15 |
| incentive to confirm provider change requests for the | 16 |
| alternative gas supplier or the alternative gas supplier's | 17 |
| marketing agent; and (iii) operate in a location physically | 18 |
| separate from the alternative gas supplier or the | 19 |
| alternative gas supplier's marketing agent. Automated | 20 |
| third-party verification systems and 3-way conference | 21 |
| calls may be used for verification purposes so long as the | 22 |
| other requirements of this paragraph (2) are satisfied. An | 23 |
| alternative gas supplier or alternative gas supplier's | 24 |
| sales representative initiating a 3-way conference call or | 25 |
| a call through an automated verification system must drop | 26 |
| off the call once the 3-way connection has been |
|
|
|
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| established. All third-party verification methods shall | 2 |
| elicit, at a minimum, the following information: | 3 |
| (A) the identity of the customer; | 4 |
| (B) confirmation that the person on the call is | 5 |
| authorized to make the provider change; | 6 |
| (C) confirmation that the person on the call wants | 7 |
| to make the provider change; | 8 |
| (D) the names of the providers affected by the | 9 |
| change; | 10 |
| (E) the service address of the service to be | 11 |
| switched; and | 12 |
| (F) the price of the service to be provided and the | 13 |
| material terms and conditions of the service being | 14 |
| offered, including whether any early termination fees | 15 |
| apply. | 16 |
| Third-party verifiers may not market the alternative | 17 |
| gas supplier's services by providing additional | 18 |
| information. All third-party verifications shall be | 19 |
| conducted in the same language that was used in the | 20 |
| underlying sales transaction and shall be recorded in their | 21 |
| entirety. Submitting alternative gas suppliers shall | 22 |
| maintain and preserve audio records of verification of | 23 |
| customer authorization for a minimum period of 2 years | 24 |
| after obtaining the verification. Automated systems must | 25 |
| provide customers with an option to speak with a live | 26 |
| person at any time during the call. |
|
|
|
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| (3) The alternative gas supplier has obtained the | 2 |
| customer's authorization via an automated verification | 3 |
| system to change natural gas service via telephone. An | 4 |
| automated verification system is an electronic system | 5 |
| that, through pre-recorded prompts, elicits voice | 6 |
| responses, touchtone responses, or both, from the customer | 7 |
| and records both the prompts and the customer's responses. | 8 |
| Such authorization must elicit the information in | 9 |
| paragraph (2)(A) through (F) of this subsection (c). | 10 |
| Alternative gas suppliers electing to confirm sales | 11 |
| electronically through an automated verification system | 12 |
| shall establish one or more toll-free telephone numbers | 13 |
| exclusively for that purpose. Calls to the number or | 14 |
| numbers shall connect a customer to a voice response unit, | 15 |
| or similar mechanism, that makes a date-stamped, | 16 |
| time-stamped recording of the required information | 17 |
| regarding the alternative gas supplier change. | 18 |
| The alternative gas supplier shall not use such | 19 |
| electronic authorization systems to market its services. | 20 |
| (4) When a consumer initiates the call to the | 21 |
| prospective alternative gas supplier, in order to enroll | 22 |
| the consumer as a customer, the prospective alternative gas | 23 |
| supplier must, with the consent of the customer, make a | 24 |
| date-stamped, time-stamped audio recording that elicits, | 25 |
| at a minimum, the following information: | 26 |
| (A) the identity of the customer; |
|
|
|
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| (B) confirmation that the person on the call is | 2 |
| authorized to make the provider change; | 3 |
| (C) confirmation that the person on the call wants | 4 |
| to make the provider change; | 5 |
| (D) the names of the providers affected by the | 6 |
| change; | 7 |
| (E) the service address of the service to be | 8 |
| switched; and | 9 |
| (F) the price of the service to be supplied and the | 10 |
| material terms and conditions of the service being | 11 |
| offered, including whether any early termination fees | 12 |
| apply. | 13 |
| Submitting alternative gas suppliers shall maintain | 14 |
| and preserve the audio records containing the information | 15 |
| set forth above for a minimum period of 2 years. | 16 |
| (5) In the event that a customer enrolls for service | 17 |
| from an alternative gas supplier via an Internet website, | 18 |
| the alternative gas supplier shall obtain an | 19 |
| electronically signed letter of agency in accordance with | 20 |
| paragraph (1) of this subsection (c) and any customer | 21 |
| information shall be protected in accordance with all | 22 |
| applicable statutes and regulations. In addition, an | 23 |
| alternative gas supplier shall provide the following when | 24 |
| marketing via an Internet website: | 25 |
| (A) The Internet enrollment website shall, at a | 26 |
| minimum, include: |
|
|
|
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| (i) a copy of the alternative gas supplier's | 2 |
| customer contract that clearly and conspicuously | 3 |
| discloses all terms and conditions; and | 4 |
| (ii) a conspicuous prompt for the customer to | 5 |
| print or save a copy of the contract. | 6 |
| (B) Any electronic version of the contract shall be | 7 |
| identified by version number, in order to ensure the | 8 |
| ability to verify the particular contract to which the | 9 |
| customer assents. | 10 |
| (C) Throughout the duration of the alternative gas | 11 |
| supplier's contract with a customer, the alternative | 12 |
| gas supplier shall retain and, within 3 business days | 13 |
| of the customer's request, provide to the customer an | 14 |
| e-mail, paper, or facsimile of the terms and conditions | 15 |
| of the numbered contract version to which the customer | 16 |
| assents. | 17 |
| (D) The alternative gas supplier shall provide a | 18 |
| mechanism by which both the submission and receipt of | 19 |
| the electronic letter of agency are recorded by time | 20 |
| and date. | 21 |
| (E) After the customer completes the electronic | 22 |
| letter of agency, the alternative gas supplier shall | 23 |
| disclose conspicuously through its website that the | 24 |
| customer has been enrolled, and the alternative gas | 25 |
| supplier shall provide the customer an enrollment | 26 |
| confirmation number. |
|
|
|
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LRB095 06643 AMC 53992 a |
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| (6) When a customer is solicited in person by the | 2 |
| alternative gas supplier's sales agent, the alternative | 3 |
| gas supplier may only obtain the customer's authorization | 4 |
| to change natural gas service through the method provided | 5 |
| for in paragraph (2) of this subsection (c). | 6 |
| Alternative gas suppliers must be in compliance with this | 7 |
| subsection (c) with 90 days after the effective date of this | 8 |
| amendatory Act of the 95th General Assembly. | 9 |
| (d) Complaints may be filed with the Commission under this | 10 |
| Section by a customer whose natural gas service has been | 11 |
| provided by an alternative gas supplier in a manner not in | 12 |
| compliance with subsection (c) of this Section. If, after | 13 |
| notice and hearing, the Commission finds that an alternative | 14 |
| gas supplier has violated subsection (c), then the Commission | 15 |
| may in its discretion do any one or more of the following: | 16 |
| (1) Require the violating alternative gas supplier to | 17 |
| refund the customer charges collected in excess of those | 18 |
| that would have been charged by the customer's authorized | 19 |
| natural gas provider. | 20 |
| (2) Require the violating alternative gas supplier to | 21 |
| pay to the customer's authorized natural gas provider the | 22 |
| amount the authorized natural gas provider would have | 23 |
| collected for natural gas service. The Commission is | 24 |
| authorized to reduce this payment by any amount already | 25 |
| paid by the violating alternative gas supplier to the | 26 |
| customer's authorized natural gas provider. |
|
|
|
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| (3) Require the violating alternative gas supplier to | 2 |
| pay a fine of up to $1,000 into the Public Utility Fund for | 3 |
| each repeated and intentional violation of this Section. | 4 |
| (4) Issue a cease and desist order. | 5 |
| (5) For a pattern of violation of this Section or for | 6 |
| intentionally violating a cease and desist order, revoke | 7 |
| the violating alternative gas supplier's certificate of | 8 |
| service authority. | 9 |
| (e) (c) An alternative gas supplier shall obtain verifiable | 10 |
| authorization from a
customer, in a form or manner approved by | 11 |
| the Commission, before the customer
is
switched from another | 12 |
| supplier.
| 13 |
| (f) (d) No alternative gas supplier shall:
| 14 |
| (1) enter into or employ any
arrangements which have | 15 |
| the effect of preventing any customer from having
access to
| 16 |
| the services of the gas utility in whose service area the | 17 |
| customer is located;
or
| 18 |
| (2) charge customers for such access ; .
| 19 |
| (3) bill for goods or services not authorized by the | 20 |
| customer; or | 21 |
| (4) bill for a disputed amount where the alternative | 22 |
| gas supplier has been provided notice of such dispute. The | 23 |
| supplier shall attempt to resolve a dispute with the | 24 |
| customer. When the dispute is not resolved to the | 25 |
| customer's satisfaction, the supplier shall inform the | 26 |
| customer of the right to file an informal complaint with |
|
|
|
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| the Commission and provide contact information. While the | 2 |
| pending dispute is active at the Commission, an alternative | 3 |
| gas supplier may bill only for the undisputed amount until | 4 |
| the Commission has taken final action on the complaint. | 5 |
| (g) (e) An alternative gas supplier that is certified to | 6 |
| serve residential
or small commercial customers shall not:
| 7 |
| (1) deny service to a customer or group of customers | 8 |
| nor
establish any differences as to prices, terms,
| 9 |
| conditions, services, products, facilities, or in any | 10 |
| other respect, whereby
such denial or differences are based | 11 |
| upon race, gender, or income; or
| 12 |
| (2) deny service based on locality, nor establish any | 13 |
| unreasonable
difference as to prices, terms, conditions, | 14 |
| services, products, or facilities
as
between localities ; .
| 15 |
| (3) include in any agreement a provision that obligates | 16 |
| a customer to the terms of the agreement if the customer | 17 |
| (i) moves outside the State of Illinois; (ii) moves to a | 18 |
| location without a transportation service program; or | 19 |
| (iii) moves to a location where the customer will not | 20 |
| require natural gas service, provided that nothing in this | 21 |
| subsection precludes an alternative gas supplier from | 22 |
| taking any action otherwise available to it to collect a | 23 |
| debt that arises out of service provided to the customer | 24 |
| before the customer moved; or | 25 |
| (4) assign the agreement to any alternative natural gas | 26 |
| supplier, unless: |
|
|
|
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| (A) the supplier is an alternative gas supplier | 2 |
| certified by the Commission; | 3 |
| (B) the rates, terms, and conditions of the | 4 |
| agreement being assigned do not change during the | 5 |
| remainder of the time covered by the agreement; | 6 |
| (C) the customer is given no less than 30 days | 7 |
| prior written notice of the assignment and contact | 8 |
| information for the new supplier; and | 9 |
| (D) the supplier assigning the contract provides | 10 |
| contact information that a customer can use to resolve | 11 |
| a dispute. | 12 |
| (h) (f) An alternative gas supplier shall comply with the | 13 |
| following requirements
with respect to the marketing, | 14 |
| offering, and provision of products or services:
| 15 |
| (1) Any marketing materials which make statements | 16 |
| concerning prices,
terms, and conditions of service shall | 17 |
| contain information that
adequately discloses the prices, | 18 |
| terms and conditions of the products
or services.
| 19 |
| (2) Before any customer is switched from another | 20 |
| supplier, the
alternative gas supplier shall give the | 21 |
| customer written information
that clearly and | 22 |
| conspicuously adequately discloses, in plain language, the | 23 |
| prices, terms, and
conditions of the products and services | 24 |
| being offered and sold to the
customer. Nothing in this | 25 |
| paragraph (2) may be read to relieve an alternative gas | 26 |
| supplier from the duties imposed on it by item (3) of |
|
|
|
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|
| 1 |
| subsection (c) of Section 2DDD of the Consumer Fraud and | 2 |
| Deceptive Business Practices Act.
| 3 |
| (3) The alternative gas supplier shall provide to the | 4 |
| customer:
| 5 |
| (A) accurate, timely, and itemized billing | 6 |
| statements that describe
the products and services
| 7 |
| provided to the customer and their prices
and that | 8 |
| specify the
gas consumption amount and any service
| 9 |
| charges and taxes; provided that this item (h)(3)(A) | 10 |
| (f)(3)(A) does not apply to small
commercial | 11 |
| customers;
| 12 |
| (B) billing statements that clearly and | 13 |
| conspicuously discloses the name and contact | 14 |
| information for the alternative gas supplier; | 15 |
| (C) an additional
statement, at least annually, | 16 |
| that adequately discloses the average
monthly prices, | 17 |
| and the terms and conditions, of the products and
| 18 |
| services sold to the customer; provided that this item | 19 |
| (h)(3)(B) (f)(3)(B) does not
apply to small commercial | 20 |
| customers;
| 21 |
| (D) (C) refunds of any deposits with interest | 22 |
| within 30 days after the
date
that the customer changes | 23 |
| gas suppliers or discontinues service if the customer
| 24 |
| has satisfied all of his or her outstanding financial | 25 |
| obligations to the
alternative gas supplier at an | 26 |
| interest rate set by the Commission which shall
be the |
|
|
|
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| 1 |
| same as that required of gas utilities; and
| 2 |
| (E) (D) refunds, in a timely fashion, of all | 3 |
| undisputed overpayments upon
the oral or written | 4 |
| request of the customer.
| 5 |
| (4) An alternative gas supplier and its sales agents | 6 |
| shall refrain from any direct marketing or soliciting to | 7 |
| consumers on the gas utility's "Do Not Contact List", which | 8 |
| the alternative gas supplier shall obtain on the 15th | 9 |
| calendar day of the month from the gas utility in whose | 10 |
| service area the consumer is provided with gas service. If | 11 |
| the 15th calendar day is a non-business day, then the | 12 |
| alternative gas supplier shall obtain the list on the next | 13 |
| business day following the 15th calendar day of that month. | 14 |
| (5) Early Termination. | 15 |
| (A) Any agreement that contains an early | 16 |
| termination clause shall disclose the amount of the | 17 |
| early termination fee, provided that any early | 18 |
| termination fee or penalty shall not exceed $50 total, | 19 |
| regardless of whether or not the agreement is a | 20 |
| multiyear agreement. | 21 |
| (B) In any agreement that contains an early | 22 |
| termination clause, an alternative gas supplier shall | 23 |
| provide the customer the opportunity to terminate the | 24 |
| agreement without any termination fee or penalty | 25 |
| within 10 business days after the date of the first | 26 |
| bill issued to the customer for products or services |
|
|
|
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| 1 |
| provided by the alternative gas supplier. The | 2 |
| agreement shall disclose the opportunity and provide a | 3 |
| toll-free phone number that the customer may call in | 4 |
| order to terminate the agreement. | 5 |
| (6) Within 2 business days after electronic receipt of | 6 |
| a customer switch from the alternative gas supplier and | 7 |
| confirmation of eligibility, the gas utility shall provide | 8 |
| the customer written notice confirming the switch. The gas | 9 |
| utility shall not switch the service until 10 business days | 10 |
| after the date on the notice to the customer. | 11 |
| (7) The alternative gas supplier shall provide each | 12 |
| customer the opportunity to rescind its agreement without | 13 |
| penalty within 10 business days after the date on the gas | 14 |
| utility notice to the customer. The alternative gas | 15 |
| supplier shall disclose all of the following: | 16 |
| (A) that the gas utility shall send a notice | 17 |
| confirming the switch; | 18 |
| (B) that from the date the utility issues the | 19 |
| notice confirming the switch, the customer shall have | 20 |
| 10 business days to rescind the switch without penalty; | 21 |
| (C) that the customer shall contact the gas utility | 22 |
| or the alternative gas supplier to rescind the switch; | 23 |
| and | 24 |
| (D) the contact information for the gas utility. | 25 |
| The alternative gas supplier disclosure shall be | 26 |
| included in its sales solicitations, contracts, and all |
|
|
|
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| applicable sales verification scripts. | 2 |
| (i) (g) An alternative gas supplier may limit the overall | 3 |
| size or availability
of
a
service offering by specifying one or | 4 |
| more of the following:
| 5 |
| (1) a maximum number
of
customers and maximum amount of | 6 |
| gas load to be served;
| 7 |
| (2) time period during which
the
offering will be | 8 |
| available; or
| 9 |
| (3) other comparable limitation, but not including
the
| 10 |
| geographic locations of customers within the area which the | 11 |
| alternative gas
supplier is
certificated to serve.
| 12 |
| The alternative gas supplier shall file the terms and
| 13 |
| conditions of
such service offering including the applicable | 14 |
| limitations with the Commission
prior to
making the service | 15 |
| offering available to customers.
| 16 |
| (j) (h) Nothing in this Section shall be construed as | 17 |
| preventing an alternative
gas
supplier that is an affiliate of, | 18 |
| or which contracts with,
(i) an industry or
trade
organization | 19 |
| or association,
(ii) a membership organization or association | 20 |
| that
exists for
a purpose other than the purchase of gas, or
| 21 |
| (iii) another organization that
meets criteria
established in a | 22 |
| rule adopted by the Commission from offering through the
| 23 |
| organization
or association services at prices, terms and | 24 |
| conditions that are available
solely to the
members of the | 25 |
| organization or association.
| 26 |
| (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
|
|
|
|
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| 1 |
| (220 ILCS 5/19-120)
| 2 |
| Sec. 19-120.
Commission oversight of services provided by | 3 |
| gas
suppliers.
| 4 |
| (a) The provisions of this Section shall apply only to | 5 |
| alternative gas
suppliers
serving or seeking to serve | 6 |
| residential or small commercial customers and
only to the | 7 |
| extent such
alternative gas suppliers provide services to | 8 |
| residential or small
commercial customers.
| 9 |
| (b) The Commission shall have jurisdiction in accordance | 10 |
| with the provisions
of Article X of this Act either to | 11 |
| investigate on its own motion in order to determine whether or | 12 |
| to entertain and dispose of any complaint against any
| 13 |
| alternative
gas supplier alleging that:
| 14 |
| (1) the alternative gas supplier has violated or is
in
| 15 |
| nonconformance with any applicable provisions of Section | 16 |
| 19-110 , 19-111, 19-112, or Section
19-115;
| 17 |
| (2) an alternative gas supplier has failed to provide | 18 |
| service in
accordance with the
terms of its contract or | 19 |
| contracts with a customer or customers;
| 20 |
| (3) the
alternative
gas supplier has violated or is in | 21 |
| nonconformance with the transportation
services tariff
of, | 22 |
| or any of its agreements relating to transportation | 23 |
| services with, the gas
utility or
municipal system | 24 |
| providing transportation services; or
| 25 |
| (4) the
alternative gas
supplier has violated or failed |
|
|
|
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| 1 |
| to comply with the requirements of Sections
8-201
through | 2 |
| 8-207, 8-301, 8-505, or 8-507 of this Act as made | 3 |
| applicable to
alternative gas
suppliers.
| 4 |
| (c) The Commission shall have authority after notice and | 5 |
| hearing held on
complaint or on the Commission's own motion to | 6 |
| order any or all of the following remedies, penalties, or forms | 7 |
| of relief :
| 8 |
| (1) order an alternative gas supplier to cease and | 9 |
| desist, or correct,
any violation of or nonconformance with | 10 |
| the provisions of Section
19-110 , 19-111, 19-112, or | 11 |
| 19-115;
| 12 |
| (2) impose financial penalties for violations of or | 13 |
| nonconformances
with the provisions of Section 19-110 , | 14 |
| 19-111, 19-112, or 19-115, not to exceed (i)
$10,000 per | 15 |
| occurrence or (ii) $30,000 per day for those violations or
| 16 |
| nonconformances which continue after the Commission issues | 17 |
| a
cease-and-desist order; and
| 18 |
| (3) alter, modify, revoke, or suspend the certificate | 19 |
| of service
authority
of an alternative gas supplier for | 20 |
| substantial or repeated violations of
or nonconformances | 21 |
| with the provisions of Section 19-110 , 19-111, 19-112, or | 22 |
| 19-115.
| 23 |
| (d) Nothing in this Act shall be construed to limit, | 24 |
| restrict, or
mitigate
in
any way the power and authority of the | 25 |
| State's Attorneys or the Attorney
General under the Consumer | 26 |
| Fraud and Deceptive Business Practices Act.
|
|
|
|
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| 1 |
| (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
| 2 |
| (220 ILCS 5/19-125)
| 3 |
| Sec. 19-125. Consumer education.
| 4 |
| (a) The Commission shall make available upon request and at | 5 |
| no charge, and
shall make available to the public
on the | 6 |
| Internet through the State of Illinois World Wide Web site:
| 7 |
| (1) a list of all certified alternative gas suppliers | 8 |
| serving residential
and
small commercial customers
within | 9 |
| the service area of each gas utility including, in the case | 10 |
| of the
Internet, computer links to available web sites of | 11 |
| the certified alternative
gas
suppliers;
| 12 |
| (2) a list of all certified alternative gas suppliers | 13 |
| serving residential
or
small commercial customers
that | 14 |
| have been found in the last 3 years by the Commission | 15 |
| pursuant to Section
10-108 to have failed
to provide | 16 |
| service in accordance with this Act;
| 17 |
| (3) guidelines to assist customers in determining | 18 |
| which gas supplier is
most
appropriate for each
customer; | 19 |
| and
| 20 |
| (4) Internet links to providers of information
that | 21 |
| enables customers
to
compare prices and
services of gas | 22 |
| utilities and alternative gas suppliers, if and
when that | 23 |
| information is available.
| 24 |
| (a-5) The Commission shall develop no later than 6 months | 25 |
| after the effective date of this amendatory act of the 95th |
|
|
|
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| General Assembly and maintain consumer education information | 2 |
| to help residential and small commercial consumers understand | 3 |
| their gas supply options and their rights and responsibilities. | 4 |
| The Commission shall publish the consumer education | 5 |
| information on its World Wide Web site. | 6 |
| (a-10) To assist the Commission in developing consumer | 7 |
| education information, the Commission shall form a working | 8 |
| group that shall consist of representatives of gas utilities | 9 |
| with residential and small commercial gas transportation | 10 |
| service programs, alternative gas suppliers, the Attorney | 11 |
| General, the Citizens Utility Board, and the Commission. | 12 |
| (a-15) At a minimum, the consumer education information | 13 |
| developed by the Commission shall include explanations or | 14 |
| descriptions of the following: | 15 |
| (1) The choices available to consumers to take gas | 16 |
| service from an alternative retail gas supplier or remain | 17 |
| as a retail customer of the gas utility. | 18 |
| (2) A consumer's rights and responsibilities in | 19 |
| receiving service from an alternative retail gas supplier | 20 |
| or remaining as a retail customer of the gas utility. | 21 |
| (3) The gas utility's role in delivering gas, | 22 |
| including, but not limited to, utility response to calls | 23 |
| for service and gas leaks. | 24 |
| (4) The legal obligations of alternative retail gas | 25 |
| suppliers. | 26 |
| (5) The components of a bill that could be received by |
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| a customer taking delivery services. | 2 |
| (6) The procedures available to customers to address | 3 |
| complaints against a gas utility or an alternative retail | 4 |
| gas supplier and a list of phone numbers and other contact | 5 |
| information for the Commission, the Attorney General, or | 6 |
| the Citizens Utility Board. | 7 |
| (7) Guidance to assist consumers in making educated | 8 |
| decisions when choosing their natural gas provider, | 9 |
| including: | 10 |
| (A) how to compare prices; | 11 |
| (B) questions to ask when considering natural gas | 12 |
| providers; and | 13 |
| (C) current and historical utility gas rates. | 14 |
| (8) The availability of the "Do Not Contact List" for | 15 |
| those who do not wish to be solicited by natural gas | 16 |
| providers. | 17 |
| (b) In any service area where customers are able to choose | 18 |
| their natural gas
supplier, the Commission shall require gas | 19 |
| utilities and alternative gas
suppliers to inform customers of | 20 |
| how they may contact the Commission in order
to
obtain | 21 |
| information about the customer choice program.
| 22 |
| (c) The Commission shall adopt a uniform disclosure that | 23 |
| alternative gas suppliers shall be required to complete for | 24 |
| each product offering. The uniform disclosure shall contain, at | 25 |
| a minimum: | 26 |
| (1) for products with a fixed price per therm, the |
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| price per therm; | 2 |
| (2) the length of the initial term of the product, or, | 3 |
| if applicable, the expiration date of the initial term of | 4 |
| the product; | 5 |
| (3) the amount of the termination fees, if any; | 6 |
| (4) the amount of the administrative fees, other fees, | 7 |
| or recurring charges, if any, to be listed separately for | 8 |
| each and every fee or charge; | 9 |
| (5) for products with a variable price per therm, the | 10 |
| terms of such variability, including, but not limited to, | 11 |
| any index that is used to calculate the price and any | 12 |
| additional charges, costs and fees; and | 13 |
| (6) for products where a customer's charges are a fixed | 14 |
| amount per billing period regardless of the market price | 15 |
| for natural gas or the customer's natural gas consumption | 16 |
| during the billing period, the billing period covered. | 17 |
| If the alternative gas supplier will not offer a | 18 |
| different product for new customers as of the first of the | 19 |
| month, then the alternative gas supplier does not have to | 20 |
| provide new information until the first day of the month in | 21 |
| which a different product or products are being offered. | 22 |
| The Commission shall post this information on its World | 23 |
| Wide Web site in a manner that shall enable customers to | 24 |
| compare prices, terms, and conditions offered by the | 25 |
| alternative gas suppliers. The website shall be updated at | 26 |
| least monthly and the Commission shall maintain this |
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| information on its website for at least 12 months to allow | 2 |
| customers to compare the historical plans and prices for | 3 |
| all alternative gas suppliers. | 4 |
| (d) The Commission shall make available in print, upon | 5 |
| request and at no charge and on its World Wide Web site, | 6 |
| information on which customers of alternative gas suppliers | 7 |
| serving residential and small commercial customers may address | 8 |
| any complaint with regard to an alternative gas supplier's | 9 |
| obligations under Section 19-115 of this Article, including the | 10 |
| provision of service in accordance with the terms of its | 11 |
| contract, sales tactics, and rates. The Commission shall | 12 |
| maintain a summary by category and provider of all formal and | 13 |
| informal complaints it receives pursuant to this Section, and | 14 |
| it shall publish the summary on a quarterly basis on its World | 15 |
| Wide Web site. Individual customer information shall not be | 16 |
| included in the summary. | 17 |
| (e) The provisions of this Section shall apply only to | 18 |
| alternative gas suppliers serving or seeking to serve | 19 |
| residential and small commercial customers and only to the | 20 |
| extent such alternative gas suppliers provide services to | 21 |
| residential and small commercial customers. | 22 |
| (Source: P.A. 92-852, eff. 8-26-02.)
| 23 |
| Section 10. The Consumer Fraud and Deceptive Business | 24 |
| Practices Act is amended by adding Sections 2DDD, 2EEE, 2FFF, | 25 |
| and 2GGG as follows: |
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| (815 ILCS 505/2DDD new)
| 2 |
| Sec. 2DDD. Alternative gas suppliers. | 3 |
| (a) Definitions. | 4 |
| (1) "Alternative gas supplier" has the same meaning as | 5 |
| in Section 19-105 of the Public Utilities Act. | 6 |
| (2) "Gas utility" has the same meaning as in Section | 7 |
| 19-105 of the Public Utilities Act. | 8 |
| (b) It is an unfair or deceptive act or practice within the | 9 |
| meaning of Section 2 of this Act for any person to violate any | 10 |
| provision of this Section. | 11 |
| (c) Solicitation. | 12 |
| (1) An alternative gas supplier shall not misrepresent | 13 |
| the affiliation of any alternative supplier with the gas | 14 |
| utility, governmental bodies, or consumer groups. | 15 |
| (2) If any sales solicitation, agreement, contract, or | 16 |
| verification is translated into another language and | 17 |
| provided to a customer, all of the documents must be | 18 |
| provided to the customer in that other language. | 19 |
| (3) An alternative gas supplier shall clearly and | 20 |
| conspicuously disclose the following information to all | 21 |
| customers: | 22 |
| (A) the prices, terms, and conditions of the | 23 |
| products and services being sold to the customer; | 24 |
| (B) where the solicitation occurs in person, | 25 |
| including through door-to-door solicitation, the |
|
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| salesperson's name; | 2 |
| (C) the alternative gas supplier's contact | 3 |
| information, including the address, phone number, and | 4 |
| website; | 5 |
| (D) contact information for the Illinois Commerce | 6 |
| Commission, including the toll-free number for | 7 |
| consumer complaints and website; | 8 |
| (E) a statement of the customer's right to rescind | 9 |
| the offer within 10 business days of the date on the | 10 |
| utility's notice confirming the customer's decision to | 11 |
| switch suppliers, as well as phone numbers for the | 12 |
| supplier and utility that the consumer may use to | 13 |
| rescind the contract; and | 14 |
| (F) the amount of the early termination fee, if | 15 |
| any. | 16 |
| (4) Except as provided in paragraph (5) of this | 17 |
| subsection (c), an alternative gas supplier shall send the | 18 |
| information described in paragraph (3) of this subsection | 19 |
| (c) to all customers within one business day of the | 20 |
| authorization of a switch. | 21 |
| (5) An alternative gas supplier engaging in | 22 |
| door-to-door solicitation of consumers shall provide the | 23 |
| information described in paragraph (3) of this subsection | 24 |
| (c) during all door-to-door solicitations that result in a | 25 |
| customer deciding to switch their supplier. | 26 |
| (d) Customer Authorization. An alternative gas supplier |
|
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| shall not submit or execute a change in a customer's selection | 2 |
| of a natural gas provider unless and until (i) the alternative | 3 |
| gas supplier first discloses all material terms and conditions | 4 |
| of the offer to the customer; (ii) the alternative gas supplier | 5 |
| has obtained the customer's express agreement to accept the | 6 |
| offer after the disclosure of all material terms and conditions | 7 |
| of the offer; and (iii) the alternative gas supplier has | 8 |
| confirmed the request for a change in accordance with one of | 9 |
| the following procedures: | 10 |
| (1) The alternative gas supplier has obtained the | 11 |
| customer's written or electronically signed authorization | 12 |
| in a form that meets the following requirements: | 13 |
| (A) An alternative gas supplier shall obtain any | 14 |
| necessary written or electronically signed | 15 |
| authorization from a customer for a change in natural | 16 |
| gas service by using a letter of agency as specified in | 17 |
| this Section. Any letter of agency that does not | 18 |
| conform with this Section is invalid. | 19 |
| (B) The letter of agency shall be a separate | 20 |
| document (or an easily separable document containing | 21 |
| only the authorization language described in item (E) | 22 |
| of this paragraph (1)) whose sole purpose is to | 23 |
| authorize a natural gas provider change. The letter of | 24 |
| agency must be signed and dated by the customer | 25 |
| requesting the natural gas provider change. | 26 |
| (C) The letter of agency shall not be combined with |
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| inducements of any kind on the same document. | 2 |
| (D) Notwithstanding items (A) and (B) of this | 3 |
| paragraph (1), the letter of agency may be combined | 4 |
| with checks that contain only the required letter of | 5 |
| agency language prescribed in item (E) of this | 6 |
| paragraph (1) and the necessary information to make the | 7 |
| check a negotiable instrument. The letter of agency | 8 |
| check shall not contain any promotional language or | 9 |
| material. The letter of agency check shall contain in | 10 |
| easily readable, bold face type on the face of the | 11 |
| check, a notice that the consumer is authorizing a | 12 |
| natural gas provider change by signing the check. The | 13 |
| letter of agency language also shall be placed near the | 14 |
| signature line on the back of the check. | 15 |
| (E) At a minimum, the letter of agency must be | 16 |
| printed with a print of sufficient size to be clearly | 17 |
| legible, and must contain clear and unambiguous | 18 |
| language that confirms: | 19 |
| (i) the customer's billing name and address; | 20 |
| (ii) the decision to change the natural gas | 21 |
| provider from the current provider to the | 22 |
| prospective alternative gas supplier; | 23 |
| (iii) the terms, conditions, and nature of the | 24 |
| service to be provided to the customer, including, | 25 |
| but not limited to, the rates for the service | 26 |
| contracted for by the customer; and |
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| (iv) that the customer understands that any | 2 |
| natural gas provider selection the customer | 3 |
| chooses may involve a charge to the customer for | 4 |
| changing the customer's natural gas provider. | 5 |
| (F) Letters of agency shall not suggest or require | 6 |
| that a customer take some action in order to retain the | 7 |
| customer's current natural gas provider. | 8 |
| (G) If any portion of a letter of agency is | 9 |
| translated into another language, then all portions of | 10 |
| the letter of agency must be translated into that | 11 |
| language. | 12 |
| (2) An appropriately qualified independent third party | 13 |
| has obtained, in accordance with the procedures set forth | 14 |
| in this paragraph (2), the customer's oral authorization to | 15 |
| change natural gas providers that confirms and includes | 16 |
| appropriate verification data. The independent third party | 17 |
| must (i) not be owned, managed, controlled, or directed by | 18 |
| the alternative gas supplier or the alternative gas | 19 |
| supplier's marketing agent; (ii) not have any financial | 20 |
| incentive to confirm provider change requests for the | 21 |
| alternative gas supplier or the alternative gas supplier's | 22 |
| marketing agent; and (iii) operate in a location physically | 23 |
| separate from the alternative gas supplier or the | 24 |
| alternative gas supplier's marketing agent. Automated | 25 |
| third-party verification systems and 3-way conference | 26 |
| calls may be used for verification purposes so long as the |
|
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| other requirements of this paragraph (2) are satisfied. A | 2 |
| alternative gas supplier or alternative gas supplier's | 3 |
| sales representative initiating a 3-way conference call or | 4 |
| a call through an automated verification system must drop | 5 |
| off the call once the 3-way connection has been | 6 |
| established. All third-party verification methods shall | 7 |
| elicit, at a minimum, the following information: | 8 |
| (A) the identity of the customer; | 9 |
| (B) confirmation that the person on the call is | 10 |
| authorized to make the provider change; | 11 |
| (C) confirmation that the person on the call wants | 12 |
| to make the provider change; | 13 |
| (D) the names of the providers affected by the | 14 |
| change; | 15 |
| (E) the service address of the service to be | 16 |
| switched; and | 17 |
| (F) the price of the service to be provided and the | 18 |
| material terms and conditions of the service being | 19 |
| offered, including whether any early termination fees | 20 |
| apply. | 21 |
| Third-party verifiers may not market the alternative | 22 |
| gas supplier's services. All third-party verifications | 23 |
| shall be conducted in the same language that was used in | 24 |
| the underlying sales transaction and shall be recorded in | 25 |
| their entirety. Submitting alternative gas suppliers shall | 26 |
| maintain and preserve audio records of verification of |
|
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| customer authorization for a minimum period of 2 years | 2 |
| after obtaining the verification. Automated systems must | 3 |
| provide customers with an option to speak with a live | 4 |
| person at any time during the call. | 5 |
| (3) The alternative gas supplier has obtained the | 6 |
| customer's electronic authorization to change in natural | 7 |
| gas service via telephone. Such authorization must elicit | 8 |
| the information in paragraph (2)(A) through (F) of this | 9 |
| subsection (d). Alternative gas suppliers electing to | 10 |
| confirm sales electronically shall establish one or more | 11 |
| toll-free telephone numbers exclusively for that purpose. | 12 |
| Calls to the number or numbers shall will connect a | 13 |
| customer to a voice response unit, or similar mechanism, | 14 |
| that makes a date-stamped, time-stamped recording of the | 15 |
| required information regarding the alternative gas | 16 |
| supplier change. | 17 |
| The alternative gas supplier shall not use such | 18 |
| electronic authorization systems to market its services. | 19 |
| (4) When a consumer initiates the call to the | 20 |
| prospective alternative gas supplier, in order to enroll | 21 |
| the consumer as a customer, the prospective alternative gas | 22 |
| supplier must, with the consent of the customer, make a | 23 |
| date-stamped, time-stamped audio recording that elicits, | 24 |
| at a minimum, the following information: | 25 |
| (A) the identity of the customer; | 26 |
| (B) confirmation that the person on the call is |
|
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| authorized to make the provider change; | 2 |
| (C) confirmation that the person on the call wants | 3 |
| to make the provider change; | 4 |
| (D) the names of the providers affected by the | 5 |
| change; | 6 |
| (E) the service address of the service to be | 7 |
| switched; and | 8 |
| (F) the price of the service to be supplied and the | 9 |
| material terms and conditions of the service being | 10 |
| offered, including whether any early termination fees | 11 |
| apply. | 12 |
| Submitting alternative gas suppliers shall maintain | 13 |
| and preserve the audio records containing the information | 14 |
| set forth above for a minimum period of 2 years. | 15 |
| (5) In the event that a customer enrolls for service | 16 |
| from an alternative gas supplier via an Internet website, | 17 |
| the alternative gas supplier shall obtain an | 18 |
| electronically signed letter of agency in accordance with | 19 |
| paragraph (1) of this subsection (d) and any customer | 20 |
| information shall be protected in accordance with all | 21 |
| applicable statutes and rules. In addition, an alternative | 22 |
| gas supplier shall provide the following when marketing via | 23 |
| an Internet website: | 24 |
| (A) The Internet enrollment website shall, at a | 25 |
| minimum, include: | 26 |
| (i) a copy of the alternative gas supplier's |
|
|
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| customer contract, which clearly and conspicuously | 2 |
| discloses all terms and conditions; and | 3 |
| (ii) a conspicuous prompt for the customer to | 4 |
| print or save a copy of the contract. | 5 |
| (B) Any electronic version of the contract shall be | 6 |
| identified by version number, in order to ensure the | 7 |
| ability to verify the particular contract to which the | 8 |
| customer assents. | 9 |
| (C) Throughout the duration of the alternative gas | 10 |
| supplier's contract with a customer, the alternative | 11 |
| gas supplier shall retain and, within 3 business days | 12 |
| of the customer's request, provide to the customer an | 13 |
| e-mail, paper, or facsimile of the terms and conditions | 14 |
| of the numbered contract version to which the customer | 15 |
| assents. | 16 |
| (D) The alternative gas supplier shall provide a | 17 |
| mechanism by which both the submission and receipt of | 18 |
| the electronic letter of agency are recorded by time | 19 |
| and date. | 20 |
| (E) After the customer completes the electronic | 21 |
| letter of agency, the alternative gas supplier shall | 22 |
| disclose conspicuously through its website that the | 23 |
| customer has been enrolled and the alternative gas | 24 |
| supplier shall provide the customer an enrollment | 25 |
| confirmation number. | 26 |
| (6) When a customer is solicited in person by the |
|
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| alternative gas supplier's sales agent, the alternative | 2 |
| gas supplier may only obtain the customer's authorization | 3 |
| to change natural gas service through the method provided | 4 |
| for in paragraph (2) of this subsection (d). | 5 |
| Alternative gas suppliers must be in compliance with the | 6 |
| provisions of this subsection (d) within 90 days after the | 7 |
| effective date of this amendatory Act of the 95th General | 8 |
| Assembly. | 9 |
| (e) Early Termination. | 10 |
| (1) Any agreement that contains an early termination | 11 |
| clause shall disclose the amount of the early termination | 12 |
| fee, provided that any early termination fee or penalty | 13 |
| shall not exceed $50 total, regardless of whether or not | 14 |
| the agreement is a multiyear agreement. | 15 |
| (2) In any agreement that contains an early termination | 16 |
| clause, an alternative gas supplier shall provide the | 17 |
| customer the opportunity to terminate the agreement | 18 |
| without any termination fee or penalty within 10 business | 19 |
| days after the date of the first bill issued to the | 20 |
| customer for products or services provided by the | 21 |
| alternative gas supplier. The agreement shall disclose the | 22 |
| opportunity and provide a toll-free phone number that the | 23 |
| customer may call in order to terminate the agreement. | 24 |
| (f) The alternative gas supplier shall provide each | 25 |
| customer the opportunity to rescind its agreement without | 26 |
| penalty within 10 business days after the date on the gas |
|
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| utility notice to the customer. The alternative gas supplier | 2 |
| shall disclose to the customer all of the following: | 3 |
| (1) that the gas utility shall send a notice confirming | 4 |
| the switch; | 5 |
| (2) that from the date the utility issues the notice | 6 |
| confirming the switch, the customer shall have 10 business | 7 |
| days before the switch will become effective; | 8 |
| (3) that the customer may contact the gas utility or | 9 |
| the alternative gas supplier to rescind the switch within | 10 |
| 10 business days; and | 11 |
| (4) the contact information for the gas utility and the | 12 |
| alternative gas supplier. | 13 |
| The alternative gas supplier disclosure shall be included | 14 |
| in its sales solicitations, contracts, and all applicable sales | 15 |
| verification scripts. | 16 |
| (g) The provisions of this Section shall apply only to | 17 |
| alternative gas suppliers serving or seeking to serve | 18 |
| residential and small commercial customers and only to the | 19 |
| extent such alternative gas suppliers provide services to | 20 |
| residential and small commercial customers. | 21 |
| (815 ILCS 505/2EEE new)
| 22 |
| Sec. 2EEE. Natural gas service advertising. Any | 23 |
| advertisement for natural gas service that lists rates shall | 24 |
| clearly and conspicuously disclose all associated costs for | 25 |
| such service including, but not limited to, access fees and |
|
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| service fees. It is an unfair or deceptive act or practice | 2 |
| within the meaning of Section 2 of this Act for any person to | 3 |
| violate this Section. | 4 |
| The provisions of this Section shall apply only to | 5 |
| alternative gas suppliers serving or seeking to serve | 6 |
| residential and small commercial customers and only to the | 7 |
| extent such alternative gas suppliers provide services to | 8 |
| residential and small commercial customers. | 9 |
| (815 ILCS 505/2FFF new)
| 10 |
| Sec. 2FFF. All personal information relating to the | 11 |
| customer of transmission, distribution, metering, or billing | 12 |
| of natural gas service, or the customer purchasing the | 13 |
| commodity of natural gas to be delivered through the | 14 |
| distribution system of a natural gas provider, shall be | 15 |
| maintained by the natural gas providers solely for the purpose | 16 |
| of generating the bill for such sales and services, and shall | 17 |
| not be divulged to any other persons with the exception of | 18 |
| credit bureaus, collection agencies, and persons licensed to | 19 |
| market natural gas service in the State of Illinois, without | 20 |
| the written consent of the customer. It is an unfair or | 21 |
| deceptive act or practice within the meaning of Section 2 of | 22 |
| this Act for any person to violate this Section. | 23 |
| The provisions of this Section shall apply only to | 24 |
| alternative gas suppliers serving or seeking to serve | 25 |
| residential and small commercial customers and only to the |
|
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| extent such alternative gas suppliers provide services to | 2 |
| residential and small commercial customers. | 3 |
| (815 ILCS 505/2GGG new)
| 4 |
| Sec. 2GGG. Prohibition of prize promotions to solicit | 5 |
| authority to provide alternative natural gas service. | 6 |
| (a) It is an unfair or deceptive act or practice within the | 7 |
| meaning of Section 2 of this Act for any person to solicit | 8 |
| authority to execute a change of gas suppliers or to solicit | 9 |
| authority to provide any alternative gas service through the | 10 |
| use of any sweepstakes, contests, or drawings. | 11 |
| (b) Forms or documents used or intended to be used by | 12 |
| consumers to enter sweepstakes, contests, or drawings of any | 13 |
| description may not be used by any person as written authority | 14 |
| to execute a change of any person's gas supplier or to render | 15 |
| any gas supply service. | 16 |
| (c) The provisions of this Section shall apply only to | 17 |
| alternative gas suppliers serving or seeking to serve | 18 |
| residential and small commercial customers and only to the | 19 |
| extent such alternative gas suppliers provide services to | 20 |
| residential and small commercial customers.
| 21 |
| Section 99. Effective date. This Act takes effect upon | 22 |
| becoming law.".
|
|