Illinois General Assembly - Full Text of HB4973
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Full Text of HB4973  102nd General Assembly

HB4973sam001 102ND GENERAL ASSEMBLY

Sen. Cristina Castro

Filed: 3/25/2022

 

 


 

 


 
10200HB4973sam001LRB102 21371 AMQ 38034 a

1
AMENDMENT TO HOUSE BILL 4973

2    AMENDMENT NO. ______. Amend House Bill 4973 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Public Utilities Act is amended by
5changing Sections 16-115, 16-115B, 16-115C, 19-110, and 19-120
6as follows:
 
7    (220 ILCS 5/16-115)
8    Sec. 16-115. Certification of alternative retail electric
9suppliers.
10    (a) Any alternative retail electric supplier must obtain a
11certificate of service authority from the Commission in
12accordance with this Section before serving any retail
13customer or other user located in this State. An alternative
14retail electric supplier may request, and the Commission may
15grant, a certificate of service authority for the entire State
16or for a specified geographic area of the State. A certificate

 

 

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1granted pursuant to this Section is not property, and the
2grant of a certificate to an entity does not create a property
3interest in the certificate. This Section does not diminish
4the existing rights of a certificate holder to notice and
5hearing as proscribed by the Illinois Administrative Procedure
6Act and in rules adopted by the Commission.
7    (b) An alternative retail electric supplier seeking a
8certificate of service authority shall file with the
9Commission a verified application containing information
10showing that the applicant meets the requirements of this
11Section. The alternative retail electric supplier shall
12publish notice of its application in the official State
13newspaper within 10 days following the date of its filing. No
14later than 45 days after a complete the application is
15properly filed with the Commission, and such notice is
16published, the Commission shall issue its order granting or
17denying the application.
18    (c) An application for a certificate of service authority
19shall identify the area or areas in which the applicant
20intends to offer service and the types of services it intends
21to offer. Applicants that seek to serve residential or small
22commercial retail customers within a geographic area that is
23smaller than an electric utility's service area shall submit
24evidence demonstrating that the designation of this smaller
25area does not violate Section 16-115A. An applicant that seeks
26to serve residential or small commercial retail customers may

 

 

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1state in its application for certification any limitations
2that will be imposed on the number of customers or maximum load
3to be served.
4    (d) The Commission shall grant the application for a
5certificate of service authority if it makes the findings set
6forth in this subsection based on the verified application and
7such other information as the applicant may submit:
8        (1) That the applicant possesses sufficient technical,
9    financial, and managerial resources and abilities to
10    provide the service for which it seeks a certificate of
11    service authority. In determining the level of technical,
12    financial, and managerial resources and abilities which
13    the applicant must demonstrate, the Commission shall
14    consider (i) the characteristics, including the size and
15    financial sophistication, of the customers that the
16    applicant seeks to serve, and (ii) whether the applicant
17    seeks to provide electric power and energy using property,
18    plant, and equipment which it owns, controls, or operates;
19        (2) That the applicant will comply with all applicable
20    federal, State, regional, and industry rules, policies,
21    practices, and procedures for the use, operation, and
22    maintenance of the safety, integrity, and reliability, of
23    the interconnected electric transmission system;
24        (3) That the applicant will only provide service to
25    retail customers in an electric utility's service area
26    that are eligible to take delivery services under this

 

 

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1    Act;
2        (4) That the applicant will comply with such
3    informational or reporting requirements as the Commission
4    may by rule establish and provide the information required
5    by Section 16-112. Any data related to contracts for the
6    purchase and sale of electric power and energy shall be
7    made available for review by the Staff of the Commission
8    on a confidential and proprietary basis and only to the
9    extent and for the purposes which the Commission
10    determines are reasonably necessary in order to carry out
11    the purposes of this Act;
12        (5) That the applicant will procure renewable energy
13    resources in accordance with Section 16-115D of this Act,
14    and will source electricity from clean coal facilities, as
15    defined in Section 1-10 of the Illinois Power Agency Act,
16    in amounts at least equal to the percentages set forth in
17    subsections (c) and (d) of Section 1-75 of the Illinois
18    Power Agency Act. For purposes of this Section:
19            (i) (blank);
20            (ii) (blank);
21            (iii) the required sourcing of electricity
22        generated by clean coal facilities, other than the
23        initial clean coal facility, shall be limited to the
24        amount of electricity that can be procured or sourced
25        at a price at or below the benchmarks approved by the
26        Commission each year in accordance with item (1) of

 

 

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

 

 

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

 

 

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1            requirements of this paragraph (5) of subsection
2            (d) of this Section and subsection (d) of Section
3            1-75 of the Illinois Power Agency Act plus the
4            total sales of electricity (expressed in
5            kilowatthours sold) by utilities outside of their
6            service areas during such prior month, pursuant to
7            subsection (c) of Section 16-116 of this Act;
8            (v) if, in any year after the first year of
9        commercial operation, the owner of the clean coal
10        facility fails to demonstrate to the Commission that
11        the initial clean coal facility captured and
12        sequestered at least 50% of the total carbon emissions
13        that the facility would otherwise emit or that
14        sequestration of emissions from prior years has
15        failed, resulting in the release of carbon into the
16        atmosphere, the owner of the facility must offset
17        excess emissions. Any such carbon offsets must be
18        permanent, additional, verifiable, real, located
19        within the State of Illinois, and legally and
20        practicably enforceable. The costs of any such offsets
21        that are not recoverable shall not exceed $15,000,000
22        $15 million in any given year. No costs of any such
23        purchases of carbon offsets may be recovered from an
24        alternative retail electric supplier or its customers.
25        All carbon offsets purchased for this purpose and any
26        carbon emission credits associated with sequestration

 

 

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1        of carbon from the facility must be permanently
2        retired. The initial clean coal facility shall not
3        forfeit its designation as a clean coal facility if
4        the facility fails to fully comply with the applicable
5        carbon sequestration requirements in any given year,
6        provided the requisite offsets are purchased. However,
7        the Attorney General, on behalf of the People of the
8        State of Illinois, may specifically enforce the
9        facility's sequestration requirement and the other
10        terms of this contract provision. Compliance with the
11        sequestration requirements and offset purchase
12        requirements that apply to the initial clean coal
13        facility shall be reviewed annually by an independent
14        expert retained by the owner of the initial clean coal
15        facility, with the advance written approval of the
16        Attorney General;
17            (vi) The Commission shall, after notice and
18        hearing, revoke the certification of any alternative
19        retail electric supplier that fails to execute a
20        sourcing agreement with the initial clean coal
21        facility as required by item (5) of subsection (d) of
22        this Section. The sourcing agreements with this
23        initial clean coal facility shall be subject to both
24        approval of the initial clean coal facility by the
25        General Assembly and satisfaction of the requirements
26        of item (4) of subsection (d) of Section 1-75 of the

 

 

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1        Illinois Power Agency Act, and shall be executed
2        within 90 days after any such approval by the General
3        Assembly. The Commission shall not accept an
4        application for certification from an alternative
5        retail electric supplier that has lost certification
6        under this subsection (d), or any corporate affiliate
7        thereof, for at least one year from the date of
8        revocation;
9        (6) With respect to an applicant that seeks to serve
10    residential or small commercial retail customers, that the
11    area to be served by the applicant and any limitations it
12    proposes on the number of customers or maximum amount of
13    load to be served meet the provisions of Section 16-115A,
14    provided, that the Commission can extend the time for
15    considering such a certificate request by up to 90 days,
16    and can schedule hearings on such a request;
17        (7) That the applicant meets the requirements of
18    subsection (a) of Section 16-128;
19        (8) That the applicant discloses whether the applicant
20    is the subject of any lawsuit filed in a court of law or
21    formal complaint filed with a regulatory agency alleging
22    fraud, deception, or unfair marketing practices or other
23    similar allegations and, if the applicant is the subject
24    of such lawsuit or formal complaint, the applicant shall
25    identify the name, case number, and jurisdiction of each
26    lawsuit or complaint, and that the applicant is capable of

 

 

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1    fulfilling its obligations as an alternative retail
2    electric supplier in Illinois notwithstanding any lawsuit
3    or complaint. For the purpose of this item (8), "formal
4    complaint" includes only those complaints that seek a
5    binding determination from a State or federal regulatory
6    body;
7        (9) That the applicant shall at all times remain in
8    compliance continue to comply with requirements for
9    certification stated in this Section and as the Commission
10    may establish by rule;
11        (10) That the applicant shall execute and maintain a
12    license or permit bond issued by a qualifying surety or
13    insurance company authorized to transact business in the
14    State of Illinois in favor of the People of the State of
15    Illinois. The amount of the bond shall equal $30,000 if
16    the applicant seeks to serve only nonresidential retail
17    customers with maximum electrical demands of one megawatt
18    or more, $150,000 if the applicant seeks to serve only
19    nonresidential non-residential retail customers with
20    annual electrical consumption greater than 15,000
21    kilowatt-hours kWh, or $500,000 if the applicant seeks to
22    serve all eligible customers. Applicants shall be required
23    to submit an additional $500,000 bond if the applicant
24    intends to market to residential customers using in-person
25    solicitations. The bonds bond shall be conditioned upon
26    the full and faithful performance of all duties and

 

 

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1    obligations of the applicant as an alternative retail
2    electric supplier, and shall be valid for a period of not
3    less than one year, and may be drawn upon in whole or in
4    part to satisfy any penalties imposed, and finally
5    adjudicated, by the Commission pursuant to Section 16-115B
6    for a violation of the applicant's duties or obligations,
7    except that the total amount of claims and penalties
8    against the bond shall not exceed the penal sum of the bond
9    and shall not include any consequential or punitive
10    damage. The cost of the bond shall be paid by the
11    applicant. The applicant shall file a copy of this bond,
12    with a notarized verification page from the issuer, as
13    part of its application for certification under 83 Ill.
14    Adm. Code 451; and
15        (11) That the applicant will comply with all other
16    applicable laws and regulations.
17    (d-3) The Commission may deny with prejudice an
18application in which the applicant fails to provide the
19Commission with information sufficient for the Commission to
20grant the application.
21    (d-5) (Blank).
22    (e) A retail customer that owns a cogeneration or
23self-generation facility and that seeks certification only to
24provide electric power and energy from such facility to retail
25customers at separate locations which customers are both (i)
26owned by, or a subsidiary or other corporate affiliate of,

 

 

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

 

 

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1service required by paragraph (1) of subsection (d) (1) of
2this Section, such as a requirement to post a bond or letter of
3credit, from a responsible surety or financial institution, of
4sufficient size for the nature and scope of the services to be
5provided; demonstration of adequate insurance for the scope
6and nature of the services to be provided; and experience in
7providing similar services in other jurisdictions.
8    (g) An alternative retail electric supplier may seek
9confidential treatment for the following information by filing
10an affidavit with the Commission so long as the affidavit
11meets the requirements in this subsection (g):
12        (1) the total annual kilowatt-hours delivered and sold
13    by an alternative retail electric supplier to retail
14    customers within each utility service territory and the
15    total annual kilowatt-hours delivered and sold by an
16    alternative retail electric supplier to retail customers
17    in all utility service territories in the preceding
18    calendar year as required by 83 Ill. Adm. Code 451.770;
19        (2) the total peak demand supplied by an alternative
20    retail electric supplier during the previous year in each
21    utility service territory as required by 83 Ill. Adm. Code
22    465.40;
23        (3) a good faith estimate of the amount an alternative
24    retail electric supplier expects to be obliged to pay the
25    utility under single billing tariffs during the next 12
26    months and the amount of any bond or letter of credit used

 

 

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1    to demonstrate an alternative retail electric supplier's
2    credit worthiness to provide single billing services
3    pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
4    The affidavit must be filed contemporaneously with the
5information for which confidential treatment is sought and
6must clearly state that the affiant seeks confidential
7treatment pursuant to this subsection (g) and the information
8for which confidential treatment is sought must be clearly
9identified on the confidential version of the document filed
10with the Commission. The affidavit must be accompanied by a
11"confidential" and a "public" version of the document or
12documents containing the information for which confidential
13treatment is sought.
14    If the alternative retail electric supplier has met the
15affidavit requirements of this subsection (g), then the
16Commission shall afford confidential treatment to the
17information identified in the affidavit for a period of 2
18years after the date the affidavit is received by the
19Commission.
20    Nothing in this subsection (g) prevents an alternative
21retail electric supplier from filing a petition with the
22Commission seeking confidential treatment for information
23beyond that identified in this subsection (g) or for
24information contained in other reports or documents filed with
25the Commission other than annual rate reports.
26    Nothing in this subsection (g) prevents the Commission, on

 

 

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1its own motion, or any party from filing a formal petition with
2the Commission seeking to reconsider the conferring of
3confidential status on an item of information afforded
4confidential treatment pursuant to this subsection (g).
5    The Commission, on its own motion, may at any time
6initiate a docketed proceeding to investigate the continued
7applicability of this subsection (g) to the information
8contained in items (i), (ii), and (iii) of this subsection
9(g). If, at the end of such investigation, the Commission
10determines that a particular item of information should no
11longer be eligible for the affidavit-based process outlined in
12this subsection (g), the Commission may enter an order to
13remove that item from the list of items eligible for the
14process set forth in this subsection (g). Notwithstanding any
15such order, in the event the Commission makes such a
16determination, nothing in this subsection (g) prevents an
17alternative retail electric supplier desiring confidential
18treatment for such information from filing a formal petition
19with the Commission seeking confidential treatment for such
20information.
21(Source: P.A. 101-590, eff. 1-1-20.)
 
22    (220 ILCS 5/16-115B)
23    Sec. 16-115B. Commission oversight of services provided by
24alternative retail electric suppliers.
25    (a) The Commission shall have jurisdiction in accordance

 

 

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1with the provisions of Article X of this Act to entertain and
2dispose of any complaint made by the Commission, on its own
3motion, or by any person or corporation, chamber of commerce,
4board of trade, or any industrial, commercial, mercantile,
5agricultural or manufacturing society, or any body politic or
6municipal corporation against any alternative retail electric
7supplier alleging (i) that the alternative retail electric
8supplier has violated or is in nonconformance with any
9applicable provisions of Section 16-115 through Section
1016-115A; (ii) that the alternative retail electric supplier
11violated rules adopted by the Commission to govern the sales,
12marketing, or operations of retail electric suppliers; (iii)
13that an alternative retail electric supplier serving any
14residential and small commercial customers retail customers
15having maximum demands of less than one megawatt has failed to
16provide service in accordance with the terms of its contract
17or contracts with such customer or customers; (iii) that the
18alternative retail electric supplier has violated or is in
19nonconformance non-conformance with the delivery services
20tariff of, or any of its agreements relating to delivery
21services with, the electric utility, municipal system, or
22electric cooperative providing delivery services; or (iv) that
23the alternative retail electric supplier has violated or
24failed to comply with the requirements of Sections 8-201
25through 8-207, 8-301, 8-505, or 8-507 of this Act as made
26applicable to alternative retail electric suppliers.

 

 

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1    (b) The Commission shall have authority, after such
2administrative notice as is required by the Illinois
3Administrative Procedure Act and after an administrative
4hearing held on complaint or on the Commission's own motion:
5        (1) To order an alternative retail electric supplier
6    to cease and desist, or correct, any violation of or
7    nonconformance non-conformance with the provisions of
8    Section 16-115 or 16-115A or any violation or
9    nonconformance over which the Commission has jurisdiction
10    under subsection (a) of Section 16-115B;
11        (2) To impose financial penalties for violations of or
12    nonconformances non-conformances with the provisions of
13    Section 16-115 or 16-115A, not to exceed (i) $10,000 per
14    occurrence, and for any violations or nonconformances that
15    continue after the Commission issues a cease and desist
16    order, up to an additional or (ii) $30,000 for each day the
17    violations or nonconformances continue per day for those
18    violations or non-conformances which continue after the
19    Commission issues a cease and desist order; and
20        (3) To alter, modify, revoke, or suspend the
21    certificate of service authority of an alternative retail
22    electric supplier for substantial or repeated violations
23    of or nonconformances non-conformances with the provisions
24    of Section 16-115 or 16-115A.
25    (c) In addition to other powers and authority granted to
26it under this Act, the Commission may require an alternative

 

 

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1retail electric supplier to enter into a compliance plan. If
2the Commission comes into possession of information causing it
3to conclude that an alternative retail electric supplier is
4violating this Act or the Commission's rules, the Commission
5may, after notice and hearing, enter an order directing the
6alternative retail electric supplier to implement practices,
7procedures, oversight, or other measures or refrain from
8practices, conduct, or activities that the Commission finds is
9necessary or reasonable to ensure the alternative retail
10electric supplier's compliance with this Act and the
11Commission's rules. Failure by an alternative retail electric
12supplier to implement or comply with a Commission-ordered
13compliance plan is a violation of this Section. The
14Commission, in its discretion, may order a compliance plan
15under such circumstances as it considers warranted and is not
16required to order a compliance plan prior to taking other
17enforcement action against an alternative retail electric
18supplier. Nothing in this subsection (c) shall be interpreted
19to limit the authority or right of the Attorney General.
20(Source: P.A. 101-590, eff. 1-1-20.)
 
21    (220 ILCS 5/16-115C)
22    Sec. 16-115C. Licensure of agents, brokers, and
23consultants engaged in the procurement or sale of retail
24electricity supply for third parties.
25    (a) The purpose of this Section is to adopt licensing and

 

 

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1code of conduct rules in a competitive retail electricity
2market to protect Illinois consumers from unfair or deceptive
3acts or practices and to provide persons acting as agents,
4brokers, and consultants engaged in the procurement or sale of
5retail electricity supply for third parties with notice of the
6illegality of those acts or practices.
7    (a-5) All third-party sales representatives engaged in the
8marketing of retail electricity supply must, prior to the
9customer signing a contract, disclose that they are not
10employed by the electric utility operating in the applicable
11service territory.
12    (b) For purposes of this Section, "agents, brokers, and
13consultants engaged in the procurement or sale of retail
14electricity supply for third parties" means any person or
15entity that attempts to procure on behalf of or sell retail
16electric service to an electric customer in the State.
17"Agents, brokers, and consultants engaged in the procurement
18or sale of retail electricity supply for third parties" does
19not include the Illinois Power Agency or any of its employees,
20any entity licensed as an alternative retail electric supplier
21pursuant to 83 Ill. Adm. Code 451 offering retail electric
22service on its own behalf, any person acting exclusively on
23behalf of a single alternative retail electric supplier on
24condition that exclusivity is disclosed to any third party
25contracted in such agent capacity, any person acting
26exclusively on behalf of a retail electric supplier on

 

 

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1condition that exclusivity is disclosed to any third party
2contracted in such agent capacity, any person or entity
3representing a municipal power agency, as defined in Section
411-119.1-3 of the Illinois Municipal Code, or any person or
5entity that is attempting to procure on behalf of or sell
6retail electric service to a third party that has aggregate
7billing demand of all of its affiliated electric service
8accounts in Illinois of greater than 1,500 kilowatts kW.
9    (c) No person or entity shall act as an agent, broker, or
10consultant engaged in the procurement or sale of retail
11electricity supply for third parties unless that person or
12entity is licensed by the Commission under this Section or is
13offering services on their own behalf under 83 Ill. Adm. Code
14451. A license granted pursuant to this Section is not
15property, and the grant of a license to an entity does not
16create a property interest in the license.
17    (d) The Commission shall create requirements for licensure
18as an agent, broker, or consultant engaged in the procurement
19or sale of retail electricity supply for third parties, which
20shall include all of the following criteria:
21        (1) Technical competence.
22        (2) Managerial competence.
23        (3) Financial responsibility, including the posting of
24    an appropriate performance bond.
25        (4) Annual reporting requirements.
26    (e) Any person or entity required to be licensed under

 

 

10200HB4973sam001- 21 -LRB102 21371 AMQ 38034 a

1this Section must:
2        (1) disclose in plain language in writing to all
3    persons it solicits (i) before July 1, 2011, the total
4    anticipated remuneration to be paid to it by any third
5    party over the period of the proposed underlying customer
6    contract and (ii) on or after July 1, 2011, the total price
7    per kilowatt-hour, and the total anticipated cost,
8    inclusive of all fees or commissions received by the
9    licensee, to be paid by the customer over the period of the
10    proposed underlying customer contract;
11        (2) disclose, if applicable, to all customers, prior
12    to the customer signing a contract, the fact that they
13    will be receiving compensation from the supplier;
14        (3) not hold itself out as independent or unaffiliated
15    with any supplier, or both, or use words reasonably
16    calculated to give that impression, unless the person
17    offering service under this Section has no contractual
18    relationship with any retail electricity supplier or its
19    affiliates regarding retail electric service in Illinois;
20        (4) not utilize false, misleading, materially
21    inaccurate, defamatory, or otherwise deceptive language or
22    materials in the soliciting or providing of its services;
23        (5) maintain copies of all marketing materials
24    disseminated to third parties for a period of not less
25    than 3 years;
26        (6) not present electricity pricing information in a

 

 

10200HB4973sam001- 22 -LRB102 21371 AMQ 38034 a

1    manner that favors one supplier over another, unless a
2    valid pricing comparison is made utilizing all relevant
3    costs and terms; and
4        (7) comply with the requirements of Sections 2EE, 2FF,
5    2GG, and 2HH of the Consumer Fraud and Deceptive Business
6    Practices Act.
7    (f) Any person or entity licensed under this Section shall
8file with the Commission all of the following information no
9later than March of each year:
10        (1) A verified report detailing any and all
11    contractual relationships that it has with certified
12    electricity suppliers in the State regarding retail
13    electric service in Illinois.
14        (2) A verified report detailing the distribution of
15    its customers with the various certified electricity
16    suppliers in Illinois during the prior calendar year. A
17    report under this Section shall not be required to contain
18    customer-identifying information.
19        A public redacted version of the verified report may
20    be submitted to the Commission along with a proprietary
21    version. The public redacted version may redact from the
22    verified report the name or names of every certified
23    electricity supplier contained in the report to protect
24    against disclosure of competitively sensitive market share
25    information. The information shall be afforded proprietary
26    treatment for 2 years after the date of the filing of the

 

 

10200HB4973sam001- 23 -LRB102 21371 AMQ 38034 a

1    verified report.
2        (3) A verified statement of any changes to the
3    original licensure qualifications and notice of continuing
4    compliance with all requirements.
5    (g) The Commission shall have jurisdiction over
6disciplinary proceedings and complaints, including on the
7Commission's own motion, for violations of this Section. The
8findings of a violation of this Section by the Commission
9shall result in discipline on a progressive a progressive
10disciplinary scale. For a first violation, the Commission may,
11in its discretion, suspend the license of the person or entity
12so disciplined for a period of no less than one month. For a
13second violation within a 5-year period, the Commission shall
14suspend the license of for the person or entity so disciplined
15for a period of not less than 6 months. For a third or
16subsequent violation within a 5-year period, the Commission
17shall suspend the license of the disciplined person for a
18period of not less than 2 years. Notwithstanding the minimum
19progressive suspensions, the Commission shall have authority,
20in its discretion, to impose whatever reasonable disciplinary
21measures it deems appropriate for any violation, including,
22but not limited to, terminating the license of the person or
23entity.
24    (h) This Section shall not apply to a retail customer that
25operates or manages either directly or indirectly any
26facilities, equipment, or property used or contemplated to be

 

 

10200HB4973sam001- 24 -LRB102 21371 AMQ 38034 a

1used to distribute electric power or energy if that retail
2customer is a political subdivision or public institution of
3higher education of this State, or any corporation, company,
4limited liability company, association, joint-stock company or
5association, firm, partnership, or individual, or their
6lessees, trusts, or receivers appointed by any court
7whatsoever that are owned or controlled by the political
8subdivision, public institution of higher education, or
9operated by any of its lessees or operating agents.
10(Source: P.A. 95-679, eff. 10-11-07; 96-1385, eff. 7-29-10.)
 
11    (220 ILCS 5/19-110)
12    Sec. 19-110. Certification of alternative gas suppliers.
13    (a) The provisions of this Section shall apply only to
14alternative gas suppliers serving or seeking to serve
15residential or small commercial customers and only to the
16extent such alternative gas suppliers provide services to
17residential or small commercial customers.
18    (b) An alternative gas supplier must obtain a certificate
19of service authority from the Commission in accordance with
20this Section before serving any customer or other user located
21in this State. An alternative gas supplier may request, and
22the Commission may grant, a certificate of service authority
23for the entire State or for a specified geographic area of the
24State. A certificate granted pursuant to this Section is not
25property, and the grant of a certificate to an entity does not

 

 

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1create a property interest in the certificate. This Section
2does not diminish the existing rights of a certificate holder
3to notice and hearing as proscribed by the Illinois
4Administrative Procedure Act and in rules adopted by the
5Commission. A person, corporation, or other entity acting as
6an alternative gas supplier on the effective date of this
7amendatory Act of the 92nd General Assembly shall have 180
8days from the effective date of this amendatory Act of the 92nd
9General Assembly to comply with the requirements of this
10Section in order to continue to operate as an alternative gas
11supplier.
12    (c) An alternative gas supplier seeking a certificate of
13service authority shall file with the Commission a verified
14application containing information showing that the applicant
15meets the requirements of this Section. The alternative gas
16supplier shall publish notice of its application in the
17official State newspaper within 10 days following the date of
18its filing. No later than 45 days after a complete the
19application is properly filed with the Commission, and such
20notice is published, the Commission shall issue its order
21granting or denying the application.
22    (d) An application for a certificate of service authority
23shall identify the area or areas in which the applicant
24intends to offer service and the types of services it intends
25to offer. Applicants that seek to serve residential or small
26commercial customers within a geographic area that is smaller

 

 

10200HB4973sam001- 26 -LRB102 21371 AMQ 38034 a

1than a gas utility's service area shall submit evidence
2demonstrating that the designation of this smaller area does
3not violate Section 19-115. An applicant may state in its
4application for certification any limitations that will be
5imposed on the number of customers or maximum load to be
6served. The applicant shall submit as part of its application
7a statement indicating:
8        (1) Whether the applicant has been denied a natural
9    gas supplier license in any state in the United States.
10        (2) Whether the applicant has had a natural gas
11    supplier license suspended or revoked by any state in the
12    United States.
13        (3) Where, if any, other natural gas supplier license
14    applications are pending in the United States.
15        (4) Whether the applicant is the subject of any
16    lawsuits filed in a court of law or formal complaints
17    filed with a regulatory agency alleging fraud, deception,
18    or unfair marketing practices, or other similar
19    allegations, identifying the name, case number, and
20    jurisdiction of each such lawsuit or complaint.
21    For the purposes of this subsection (d), formal complaints
22include only those complaints that seek a binding
23determination from a state or federal regulatory body.
24    (e) The Commission shall grant the application for a
25certificate of service authority if it makes the findings set
26forth in this subsection based on the verified application and

 

 

10200HB4973sam001- 27 -LRB102 21371 AMQ 38034 a

1such other information as the applicant may submit.
2        (1) That the applicant possesses sufficient technical,
3    financial, and managerial resources and abilities to
4    provide the service for which it seeks a certificate of
5    service authority. In determining the level of technical,
6    financial, and managerial resources and abilities which
7    the applicant must demonstrate, the Commission shall
8    consider:
9            (A) the characteristics, including the size and
10        financial sophistication of the customers that the
11        applicant seeks to serve;
12            (B) whether the applicant seeks to provide gas
13        using property, plant, and equipment that it owns,
14        controls, or operates; and
15            (C) the applicant's commitment of resources to the
16        management of sales and marketing staff, through
17        affirmative managerial policies, independent audits,
18        technology, hands-on field monitoring and training,
19        and, in the case of applicants who will have sales
20        personnel or sales agents within the State of
21        Illinois, the applicant's managerial presence within
22        the State.
23        (2) That the applicant will comply with all applicable
24    federal, State, regional, and industry rules, policies,
25    practices, and procedures for the use, operation, and
26    maintenance of the safety, integrity, and reliability of

 

 

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1    the gas transmission system.
2        (3) That the applicant will comply with such
3    informational or reporting requirements as the Commission
4    may by rule establish.
5        (4) That the area to be served by the applicant and any
6    limitations it proposes on the number of customers or
7    maximum amount of load to be served meet the provisions of
8    Section 19-115, provided, that if the applicant seeks to
9    serve an area smaller than the service area of a gas
10    utility or proposes other limitations on the number of
11    customers or maximum amount of load to be served, the
12    Commission can extend the time for considering such a
13    certificate request by up to 90 days, and can schedule
14    hearings on such a request.
15        (5) That the applicant shall continue to comply with
16    requirements for certification stated in this Section.
17        (6) That the applicant shall execute and maintain a
18    license or permit bond issued by a qualifying surety or
19    insurance company authorized to transact business in the
20    State of Illinois in favor of the People of the State of
21    Illinois. The amount of the bond shall equal $150,000 if
22    the applicant seeks to serve only nonresidential retail
23    customers or $500,000 if the applicant seeks to serve all
24    eligible customers. Applicants shall be required to submit
25    an additional $500,000 bond if the applicant intends to
26    market to residential customers using in-person

 

 

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1    solicitations. The bonds bond shall be conditioned upon
2    the full and faithful performance of all duties and
3    obligations of the applicant as an alternative retail gas
4    supplier, and shall be valid for a period of not less than
5    one year, and may be drawn up to satisfy any penalties
6    imposed and finally adjudicated, by the Commission
7    pursuant to Section 19-120 for a violation of the
8    applicant's duties or obligations, except that the total
9    amount of claims and penalties against the bond shall not
10    exceed the penal sum of the bond and shall not include any
11    consequential or punitive damage. The cost of the bond
12    shall be paid by the applicant. The applicant shall file a
13    copy of this bond, with a notarized verification page from
14    the issuer, as part of its application for certification
15    under 83 Ill. Adm. Code 551.
16        (7) That the applicant will comply with all other
17    applicable laws and rules.
18    (e-5) The Commission may deny with prejudice an
19application in which the applicant fails to provide the
20Commission with information sufficient for the Commission to
21grant the application.
22    (f) The Commission can extend the time for considering
23such a certificate request by up to 90 days, and can schedule
24hearings on such a request if:
25        (1) a party to the application proceeding has formally
26    requested that the Commission hold hearings in a pleading

 

 

10200HB4973sam001- 30 -LRB102 21371 AMQ 38034 a

1    that alleges that one or more of the allegations or
2    certifications in the application is false or misleading;
3    or
4        (2) other facts or circumstances exist that will
5    necessitate additional time or evidence in order to
6    determine whether a certificate should be issued.
7    (g) The Commission shall have the authority to promulgate
8rules to carry out the provisions of this Section. Within 30
9days after the effective date of this amendatory Act of the
1092nd General Assembly, the Commission shall adopt an emergency
11rule or rules applicable to the certification of those gas
12suppliers that seek to serve residential customers. Within 180
13days of the effective date of this amendatory Act of the 92nd
14General Assembly, the Commission shall adopt rules that
15specify criteria which, if met by any such alternative gas
16supplier, shall constitute the demonstration of technical,
17financial, and managerial resources and abilities to provide
18service required by paragraph item (1) of subsection (e) of
19this Section, such as a requirement to post a bond or letter of
20credit, from a responsible surety or financial institution, of
21sufficient size for the nature and scope of the services to be
22provided, demonstration of adequate insurance for the scope
23and nature of the services to be provided, and experience in
24providing similar services in other jurisdictions.
25    (h) The Commission may deny with prejudice any application
26that repeatedly fails to include the attachments,

 

 

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1documentation, and affidavits required by the application form
2or that repeatedly fails to provide any other information
3required by this Section.
4    (i) An alternative gas supplier may seek confidential
5treatment for the reporting to the Commission of its total
6annual dekatherms delivered and sold by it to residential and
7small commercial customers by utility service territory during
8the preceding year via the filing of an affidavit with the
9Commission so long as the affidavit meets the requirements of
10this subsection (i). The affidavit must be filed
11contemporaneously with the information for which confidential
12treatment is sought and must clearly state that the affiant
13seeks confidential treatment pursuant to this subsection (i)
14and the information for which confidential treatment is sought
15must be clearly identified on the confidential version of the
16document filed with the Commission. The affidavit must be
17accompanied by both a "confidential" and a "public" version of
18the document or documents containing the information for which
19confidential treatment is sought.
20    If the alternative gas supplier has met the affidavit
21requirements of this subsection (i), then the Commission shall
22afford confidential treatment to the information identified in
23the affidavit for a period of 2 years after the date the
24affidavit is received by the Commission.
25    Nothing in this subsection (i) prevents an alternative gas
26supplier from filing a petition with the Commission seeking

 

 

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1confidential treatment for information beyond that identified
2in this subsection (i) or for information contained in other
3reports or documents filed with the Commission other than
4annual rate reports.
5    Nothing in this subsection (i) prevents the Commission, on
6its own motion, or any party from filing a formal petition with
7the Commission seeking to reconsider the conferring of
8confidential status pursuant to this subsection (i).
9    The Commission, on its own motion, may at any time
10initiate a docketed proceeding to investigate the continued
11applicability of this affidavit-based process for seeking
12confidential treatment. If, at the end of such investigation,
13the Commission determines that this affidavit-based process
14for seeking confidential treatment for the information is no
15longer necessary, the Commission may enter an order to that
16effect. Notwithstanding any such order, in the event the
17Commission makes such a determination, nothing in this
18subsection (i) prevents an alternative gas supplier desiring
19confidential treatment for such information from filing a
20formal petition with the Commission seeking confidential
21treatment for such information.
22(Source: P.A. 101-590, eff. 1-1-20.)
 
23    (220 ILCS 5/19-120)
24    Sec. 19-120. Commission oversight of services provided by
25gas suppliers.

 

 

10200HB4973sam001- 33 -LRB102 21371 AMQ 38034 a

1    (a) The provisions of this Section shall apply only to
2alternative gas suppliers serving or seeking to serve
3residential or small commercial customers and only to the
4extent such alternative gas suppliers provide services to
5residential or small commercial customers.
6    (b) The Commission shall have jurisdiction in accordance
7with the provisions of Article X of this Act either to
8investigate on its own motion in order to determine whether or
9to entertain and dispose of any complaint by any person or
10corporation, chamber of commerce, board of trade, or any
11industrial, commercial, mercantile, agricultural or
12manufacturing society, or any body politic or municipal
13corporation against any alternative gas supplier alleging
14that:
15        (1) the alternative gas supplier has violated or is in
16    nonconformance with any applicable provisions of Section
17    19-110, 19-111, 19-112, or Section 19-115;
18        (1.5) that the alternative retail gas supplier
19    violated any rule adopted by the Commission to govern the
20    sales, marketing, or operations of retail gas suppliers;
21        (2) an alternative gas supplier has failed to provide
22    service in accordance with the terms of its contract or
23    contracts with a customer or customers;
24        (3) the alternative gas supplier has violated or is in
25    nonconformance with the transportation services tariff of,
26    or any of its agreements relating to transportation

 

 

10200HB4973sam001- 34 -LRB102 21371 AMQ 38034 a

1    services with, the gas utility or municipal system
2    providing transportation services; or
3        (4) the alternative gas supplier has violated or
4    failed to comply with the requirements of Sections 8-201
5    through 8-207, 8-301, 8-505, or 8-507 of this Act as made
6    applicable to alternative gas suppliers.
7    (c) The Commission shall have authority after such
8administrative notice as is required by the Illinois
9Administrative Procedure Act and after an administrative
10hearing held on complaint or on the Commission's own motion to
11order any or all of the following remedies, penalties, or
12forms of relief:
13        (1) order an alternative gas supplier to cease and
14    desist, or correct, any violation of or nonconformance
15    with the provisions of Section 19-110, 19-111, 19-112, or
16    19-115, or any violation or nonconformance over which the
17    Commission has jurisdiction under subsection (a) of
18    Section 19-120;
19        (2) impose financial penalties for violations of or
20    nonconformances with the provisions of Section 19-110,
21    19-111, 19-112, or 19-115, not to exceed (i) $10,000 per
22    occurrence, and for any violations or nonconformances that
23    continue after the Commission issues a cease and desist
24    order, up to an additional or (ii) $30,000 for each day the
25    violations or nonconformances continue per day for those
26    violations or nonconformances which continue after the

 

 

10200HB4973sam001- 35 -LRB102 21371 AMQ 38034 a

1    Commission issues a cease-and-desist order; and
2        (3) alter, modify, revoke, or suspend the certificate
3    of service authority of an alternative gas supplier for
4    substantial or repeated violations of or nonconformances
5    with the provisions of Section 19-110, 19-111, 19-112, or
6    19-115.
7    (d) Nothing in this Act shall be construed to limit,
8restrict, or mitigate in any way the power and authority of the
9State's Attorneys or the Attorney General under the Consumer
10Fraud and Deceptive Business Practices Act.
11    (e) In addition to other powers and authority granted to
12it under this Act, the Commission may require an alternative
13gas supplier to enter into a compliance plan. If the
14Commission comes into possession of information causing it to
15conclude that an alternative gas supplier is violating this
16Act or the Commission's rules, the Commission may, after
17notice and hearing, enter an order directing the alternative
18gas supplier to implement practices, procedures, oversight, or
19other measures or refrain from practices, conduct, or
20activities as the Commission finds is necessary or reasonable
21to ensure the alternative gas supplier's compliance with this
22Act and the Commission's rules. Failure by an alternative gas
23supplier to implement or comply with a Commission-ordered
24compliance plan is a violation of this Section. The
25Commission, in its discretion, may order a compliance plan
26under such circumstances as it considers warranted and is not

 

 

10200HB4973sam001- 36 -LRB102 21371 AMQ 38034 a

1required to order a compliance plan prior to taking other
2enforcement action against an alternative retail gas supplier.
3Nothing in this subsection (e) shall be interpreted to limit
4the authority or right of the Attorney General.
5(Source: P.A. 101-590, eff. 1-1-20.)
 
6    Section 10. The Consumer Fraud and Deceptive Business
7Practices Act is amended by changing Sections 2EE and 2DDD as
8follows:
 
9    (815 ILCS 505/2EE)
10    Sec. 2EE. Alternative retail electric supplier selection.
11    (a) An alternative retail electric supplier shall not
12submit or execute a change in a consumer's selection of a
13provider of electric service unless and until:
14        (i) the alternative retail electric supplier first
15    discloses all material terms and conditions of the offer
16    to the consumer;
17        (ii) if the consumer is a small commercial retail
18    customer as that term is defined in subsection (c) of this
19    Section or a residential consumer, the alternative retail
20    electric supplier discloses the utility electric supply
21    price to compare, which shall be the sum of the electric
22    supply charge and the transmission services charge, and
23    shall not include the purchased electricity adjustment,
24    applicable at the time the offer is made to the consumer;

 

 

10200HB4973sam001- 37 -LRB102 21371 AMQ 38034 a

1        (iii) if the consumer is a small commercial retail
2    customer as that term is defined in subsection (c) of this
3    Section or a residential consumer, the alternative retail
4    electric provider discloses the following statement:
5            "(Name of the alternative retail electric
6        supplier) is not the same entity as your electric
7        delivery company. You are not required to enroll with
8        (name of alternative retail electric supplier). As of
9        (effective date), the electric supply price to compare
10        is currently (price in cents per kilowatt hour). The
11        electric utility electric supply price will expire on
12        (expiration date). The utility electric supply price
13        to compare does not include the purchased electricity
14        adjustment factor. For more information go to the
15        Illinois Commerce Commission's free website at
16        www.pluginillinois.org.".
17        If applicable, the statement shall include the
18    following statement:
19            "The purchased electricity adjustment factor may
20        range between +.5 cents and -.5 cents per kilowatt
21        hour.";
22        (iv) the alternative retail electric supplier has
23    obtained the consumer's express agreement to accept the
24    offer after the disclosure of all material terms and
25    conditions of the offer; and
26        (v) the alternative retail electric supplier has

 

 

10200HB4973sam001- 38 -LRB102 21371 AMQ 38034 a

1    confirmed the request for a change in accordance with one
2    of the following procedures:
3            (A) The new alternative retail electric supplier
4        has obtained the consumer's written or electronically
5        signed authorization in a form that meets the
6        following requirements:
7                (1) An alternative retail electric supplier
8            shall obtain any necessary written or
9            electronically signed authorization from a
10            consumer for a change in electric service by using
11            a letter of agency as specified in this Section.
12            Any letter of agency that does not conform with
13            this Section is invalid.
14                (2) The letter of agency shall be a separate
15            document (an easily separable document containing
16            only the authorization language described in
17            subparagraph (5)) whose sole purpose is to
18            authorize an electric service provider change. The
19            letter of agency must be signed and dated by the
20            consumer requesting the electric service provider
21            change.
22                (3) The letter of agency shall not be combined
23            with inducements of any kind on the same document.
24                (4) Notwithstanding subparagraphs (1) and (2),
25            the letter of agency may be combined with checks
26            that contain only the required letter of agency

 

 

10200HB4973sam001- 39 -LRB102 21371 AMQ 38034 a

1            language prescribed in subparagraph (5) and the
2            necessary information to make the check a
3            negotiable instrument. The letter of agency check
4            shall not contain any promotional language or
5            material. The letter of agency check shall contain
6            in easily readable, bold-face type on the face of
7            the check, a notice that the consumer is
8            authorizing an electric service provider change by
9            signing the check. The letter of agency language
10            also shall be placed near the signature line on
11            the back of the check.
12                (5) At a minimum, the letter of agency must be
13            printed with a print of sufficient size to be
14            clearly legible, and must contain clear and
15            unambiguous language that confirms:
16                    (i) The consumer's billing name and
17                address;
18                    (ii) The decision to change the electric
19                service provider from the current provider to
20                the prospective provider;
21                    (iii) The terms, conditions, and nature of
22                the service to be provided to the consumer
23                must be clearly and conspicuously disclosed,
24                in writing, and an alternative retail electric
25                supplier must directly establish the rates for
26                the service contracted for by the consumer;

 

 

10200HB4973sam001- 40 -LRB102 21371 AMQ 38034 a

1                and
2                    (iv) That the consumer understand that any
3                alternative retail electric supplier selection
4                the consumer chooses may involve a charge to
5                the consumer for changing the consumer's
6                electric service provider.
7                (6) Letters of agency shall not suggest or
8            require that a consumer take some action in order
9            to retain the consumer's current electric service
10            provider.
11                (7) If any portion of a letter of agency is
12            translated into another language, then all
13            portions of the letter of agency must be
14            translated into that language.
15            (B) An appropriately qualified independent third
16        party has obtained, in accordance with the procedures
17        set forth in this subsection (b), the consumer's oral
18        authorization to change electric suppliers that
19        confirms and includes appropriate verification data.
20        The independent third party (i) must not be owned,
21        managed, controlled, or directed by the supplier or
22        the supplier's marketing agent; (ii) must not have any
23        financial incentive to confirm supplier change
24        requests for the supplier or the supplier's marketing
25        agent; and (iii) must operate in a location physically
26        separate from the supplier or the supplier's marketing

 

 

10200HB4973sam001- 41 -LRB102 21371 AMQ 38034 a

1        agent.
2            Automated third-party verification systems and
3        3-way conference calls may be used for verification
4        purposes so long as the other requirements of this
5        subsection (b) are satisfied.
6            A supplier or supplier's sales representative
7        initiating a 3-way conference call or a call through
8        an automated verification system must drop off the
9        call once the 3-way connection has been established.
10            All third-party verification methods shall elicit,
11        at a minimum, the following information: (i) the
12        identity of the consumer; (ii) confirmation that the
13        person on the call is the account holder, has been
14        specifically and explicitly authorized by the account
15        holder, or possesses lawful authority to make the
16        supplier change; (iii) confirmation that the person on
17        the call wants to make the supplier change; (iv) the
18        names of the suppliers affected by the change; (v) the
19        service address of the supply to be switched; and (vi)
20        the price of the service to be supplied and the
21        material terms and conditions of the service being
22        offered, including whether any early termination fees
23        apply. Third-party verifiers may not market the
24        supplier's services by providing additional
25        information, including information regarding
26        procedures to block or otherwise freeze an account

 

 

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1        against further changes.
2            All third-party verifications shall be conducted
3        in the same language that was used in the underlying
4        sales transaction and shall be recorded in their
5        entirety. Submitting suppliers shall maintain and
6        preserve audio records of verification of subscriber
7        authorization for a minimum period of 2 years after
8        obtaining the verification. Automated systems must
9        provide consumers with an option to speak with a live
10        person at any time during the call. Each disclosure
11        made during the third-party verification must be made
12        individually to obtain clear acknowledgment of each
13        disclosure. The alternative retail electric supplier
14        must be in a location where he or she cannot hear the
15        customer while the third-party verification is
16        conducted. The alternative retail electric supplier
17        shall not contact the customer after the third-party
18        verification for a period of 24 hours unless the
19        customer initiates the contact.
20            (C) When a consumer initiates the call to the
21        prospective alternative retail electric supplier, in
22        order to enroll the consumer as a customer, the
23        prospective alternative retail electric supplier must,
24        with the consent of the customer, make a date-stamped,
25        time-stamped audio recording that elicits, at a
26        minimum, the following information:

 

 

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1                (1) the identity of the customer;
2                (2) confirmation that the person on the call
3            is authorized to make the supplier change;
4                (3) confirmation that the person on the call
5            wants to make the supplier change;
6                (4) the names of the suppliers affected by the
7            change;
8                (5) the service address of the supply to be
9            switched; and
10                (6) the price of the service to be supplied
11            and the material terms and conditions of the
12            service being offered, including whether any early
13            termination fees apply.
14            Submitting suppliers shall maintain and preserve
15        the audio records containing the information set forth
16        above for a minimum period of 2 years.
17    (b)(1) An alternative retail electric supplier shall not
18utilize the name of a public utility in any manner that is
19deceptive or misleading, including, but not limited to,
20implying or otherwise leading a consumer to believe that an
21alternative retail electric supplier is soliciting on behalf
22of or is an agent of a utility. An alternative retail electric
23supplier shall not utilize the name, or any other identifying
24insignia, graphics, or wording that has been used at any time
25to represent a public utility company or its services, to
26identify, label, or define any of its electric power and

 

 

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1energy service offers. An alternative retail electric supplier
2may state the name of a public electric utility in order to
3accurately describe the electric utility service territories
4in which the supplier is currently offering an electric power
5and energy service. An alternative retail electric supplier
6that is the affiliate of an Illinois public utility and that
7was doing business in Illinois providing alternative retail
8electric service on January 1, 2016 may continue to use that
9public utility's name, logo, identifying insignia, graphics,
10or wording in its business operations occurring outside the
11service territory of the public utility with which it is
12affiliated.
13    (2) An alternative retail electric supplier shall not
14state or otherwise imply that the alternative retail electric
15supplier is employed by, representing, endorsed by, or acting
16on behalf of a utility or utility program, a consumer group or
17consumer group program, or a governmental body, unless the
18alternative retail electric supplier has entered into a
19contractual arrangement with the governmental body and has
20been authorized by the governmental body to make the
21statements.
22    (c) An alternative retail electric supplier shall not
23submit or execute a change in a consumer's selection of a
24provider of electric service unless the alternative retail
25electric supplier complies with the following requirements of
26this subsection (c). It is a violation of this Section for an

 

 

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1alternative retail electric supplier to fail to comply with
2this subsection (c). The requirements of this subsection (c)
3shall only apply to residential and small commercial retail
4customers. For purposes of this subsection (c) only, "small
5commercial retail customer" has the meaning given to that term
6in Section 16-102 of the Public Utilities Act.
7        (1) During a solicitation an alternative retail
8    electric supplier shall state that he or represents an
9    independent seller of electric power and energy service
10    certified by the Illinois Commerce Commission and that he
11    or she is not employed by, representing, endorsed by, or
12    acting on behalf of, a utility, or a utility program, a
13    consumer group or consumer group program, or a
14    governmental body, unless the alternative retail electric
15    supplier has entered into a contractual arrangement with
16    the governmental body and has been authorized with the
17    governmental body to make the statements.
18        (2) Alternative retail electric suppliers who engage
19    in in-person solicitation for the purpose of selling
20    electric power and energy service offered by the
21    alternative retail electric supplier shall display
22    identification on an outer garment. This identification
23    shall be visible at all times and prominently display the
24    following: (i) the alternative retail electric supplier
25    agent's full name in reasonable size font; (ii) an agent
26    identification number; (iii) a photograph of the

 

 

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1    alternative retail electric supplier agent; and (iv) the
2    trade name and logo of the alternative retail electric
3    supplier the agent is representing. If the agent is
4    selling electric power and energy services from multiple
5    alternative retail electric suppliers to the consumer, the
6    identification shall display the trade name and logo of
7    the agent, broker, or consultant entity as that entity is
8    defined in Section 16-115C of the Public Utilities Act. An
9    alternative retail electric supplier shall leave the
10    premises at the consumer's, owner's, or occupant's
11    request. A copy of the Uniform Disclosure Statement
12    described in 83 Ill. Adm. Code 412.115 and 412.Appendix A
13    is to be left with the consumer, at the conclusion of the
14    visit unless the consumer refuses to accept a copy. An
15    alternative retail electric supplier may provide the
16    Uniform Disclosure Statement electronically instead of in
17    paper form to a consumer upon that customer's request. The
18    alternative retail electric supplier shall also offer to
19    the consumer, at the time of the initiation of the
20    solicitation, a business card or other material that lists
21    the agent's name, identification number and title, and the
22    alternative retail electric supplier's name and contact
23    information, including phone number. The alternative
24    retail electric supplier shall not conduct any in-person
25    solicitations of consumers at any building or premises
26    where any sign, notice, or declaration of any description

 

 

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1    whatsoever is posted that prohibits sales, marketing, or
2    solicitations. The alternative retail electric supplier
3    shall obtain consent to enter multi-unit residential
4    dwellings. Consent obtained to enter a multi-unit dwelling
5    from one prospective customer or occupant of the dwelling
6    shall not constitute consent to market to any other
7    prospective consumers without separate consent.
8        (3) An alternative retail electric supplier who
9    contacts consumers by telephone for the purpose of selling
10    electric power and energy service shall provide the
11    agent's name and identification number. Any telemarketing
12    solicitations that lead to a telephone enrollment of a
13    consumer must be recorded and retained for a minimum of 2
14    years. All telemarketing calls of consumers that do not
15    lead to a telephone enrollment, but last at least 2
16    minutes, shall be recorded and retained for a minimum of 6
17    months.
18        (4) During an inbound enrollment call, an alternative
19    retail electric supplier shall state that he or she
20    represents an independent seller of electric power and
21    energy service certified by the Illinois Commerce
22    Commission. All inbound enrollment calls that lead to an
23    enrollment shall be recorded, and the recordings shall be
24    retained for a minimum of 2 years. An inbound enrollment
25    call that does not lead to an enrollment, but lasts at
26    least 2 minutes, shall be retained for a minimum of 6

 

 

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1    months. The alternative retail electric supplier shall
2    send the Uniform Disclosure Statement and contract to the
3    customer within 3 business days after the electric
4    utility's confirmation to the alternative retail electric
5    supplier of an accepted enrollment.
6        (5) If a direct mail solicitation to a consumer
7    includes a written letter of agency, it shall include the
8    Uniform Disclosure Statement described in 83 Ill. Adm.
9    Code 412.115 and 412.Appendix A. The Uniform Disclosure
10    Statement shall be provided on a separate page from the
11    other marketing materials included in the direct mail
12    solicitation. If a written letter of agency is being used
13    to authorize a consumer's enrollment, the written letter
14    of agency shall comply with this Section. A copy of the
15    contract must be sent to consumer within 3 business days
16    after the electric utility's confirmation to the
17    alternative retail electric supplier of an accepted
18    enrollment.
19        (6) Online Solicitation.
20            (A) Each alternative retail electric supplier
21        offering electric power and energy service to
22        consumers online shall clearly and conspicuously make
23        all disclosures for any services offered through
24        online enrollment before requiring the consumer to
25        enter any personal information other than zip code,
26        electric utility service territory, or type of service

 

 

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1        sought.
2            (B) Notwithstanding any requirements in this
3        Section to the contrary, an alternative retail
4        electric supplier may secure consent from the consumer
5        to obtain customer-specific billing and usage
6        information for the sole purpose of determining and
7        pricing a product through a letter of agency or method
8        approved through an Illinois Commerce Commission
9        docket before making all disclosure for services
10        offered through online enrollment. It is a violation
11        of this Act for an alternative retail electric
12        supplier to use a consumer's utility account number to
13        execute or change a consumer's enrollment unless the
14        consumer expressly consents to that enrollment as
15        required by law.
16            (C) The enrollment website of the alternative
17        retail electric supplier shall, at a minimum, include:
18        (i) disclosure of all material terms and conditions of
19        the offer; (ii) a statement that electronic acceptance
20        of the terms and conditions is an agreement to
21        initiate service and begin enrollment; (iii) a
22        statement that the consumer shall review the contract
23        or contact the current supplier to learn if any early
24        termination fees are applicable; and (iv) an email
25        address and toll-free phone number of the alternative
26        retail electric supplier where the customer can

 

 

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1        express a decision to rescind the contract.
2        (7)(A) Beginning January 1, 2020, an alternative
3    retail electric supplier shall not sell or offer to sell
4    any products or services to a consumer pursuant to a
5    contract in which the contract automatically renews,
6    unless an alternative retail electric supplier provides to
7    the consumer at the outset of the offer, in addition to
8    other disclosures required by law, a separate written
9    statement titled "Automatic Contract Renewal" that clearly
10    and conspicuously discloses in bold lettering in at least
11    12-point font the terms and conditions of the automatic
12    contract renewal provision, including: (i) the estimated
13    bill cycle on which the initial contract term expires and
14    a statement that it could be later based on when the
15    utility accepts the initial enrollment; (ii) the estimated
16    bill cycle on which the new contract term begins and a
17    statement that it will immediately follow the last billing
18    cycle of the current term; (iii) the procedure to
19    terminate the contract before the new contract term
20    applies; and (iv) the cancellation procedure. If the
21    alternative retail electric supplier sells or offers to
22    sell the products or services to a consumer during an
23    in-person solicitation or telemarketing solicitation, the
24    disclosures described in this subparagraph (A) shall also
25    be made to the consumer verbally during the solicitation.
26    Nothing in this subparagraph (A) shall be construed to

 

 

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1    apply to contracts entered into before January 1, 2020.
2            (B) At least 30 days before, but not more than 60
3        days prior, to the end of the initial contract term, in
4        any and all contracts that automatically renew after
5        the initial term, the alternative retail electric
6        supplier shall send, in addition to other disclosures
7        required by law, a separate written notice of the
8        contract renewal to the consumer that clearly and
9        conspicuously discloses the following:
10                (i) a statement printed or visible from the
11            outside of the envelope or in the subject line of
12            the email, if the customer has agreed to receive
13            official documents by email, that states "Contract
14            Renewal Notice";
15                (ii) a statement in bold lettering, in at
16            least 12-point font, that the contract will
17            automatically renew unless the customer cancels
18            it;
19                (iii) the billing cycle in which service under
20            the current term will expire;
21                (iv) the billing cycle in which service under
22            the new term will begin;
23                (v) the process and options available to the
24            consumer to reject the new contract terms;
25                (vi) the cancellation process if the
26            consumer's contract automatically renews before

 

 

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1            the consumer rejects the new contract terms;
2                (vii) the terms and conditions of the new
3            contract term;
4                (viii) for a fixed rate contract, a
5            side-by-side comparison of the current price and
6            the new price; for a variable rate contract or
7            time-of-use product in which the first month's
8            renewal price can be determined, a side-by-side
9            comparison of the current price and the price for
10            the first month of the new variable or time-of-use
11            price; or for a variable or time-of-use contract
12            based on a publicly available index, a
13            side-by-side comparison of the current formula and
14            the new formula; and
15                (ix) the phone number and Internet email
16            address to submit a consumer inquiry or complaint
17            to the Illinois Commerce Commission and the Office
18            of the Attorney General.
19            (C) An alternative retail electric supplier shall
20        not automatically renew a consumer's enrollment after
21        the current term of the contract expires when the
22        current term of the contract provides that the
23        consumer will be charged a fixed rate and the renewed
24        contract provides that the consumer will be charged a
25        variable rate, unless: (i) the alternative retail
26        electric supplier complies with subparagraphs (A) and

 

 

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1        (B); and (ii) the customer expressly consents to the
2        contract renewal in writing or by electronic signature
3        at least 30 days, but no more than 60 days, before the
4        contract expires.
5            (D) This paragraph (7) does not apply to customers
6        enrolled in a municipal aggregation program pursuant
7        to Section 1-92 of the Illinois Power Agency Act.
8        (8) All in-person and telephone solicitations shall be
9    conducted in, translated into, and provided in a language
10    in which the consumer subject to the marketing or
11    solicitation is able to understand and communicate. An
12    alternative retail electric supplier shall terminate a
13    solicitation if the consumer subject to the marketing or
14    communication is unable to understand and communicate in
15    the language in which the marketing or solicitation is
16    being conducted. An alternative retail electric supplier
17    shall comply with Section 2N of this Act.
18        (9) Beginning January 1, 2020, consumers shall have
19    the right to terminate their contract with the alternative
20    retail electric supplier at any time without any
21    termination fees or penalties.
22        (10) An alternative retail electric supplier shall not
23    submit a change to a customer's electric service provider
24    in violation of Section 16-115E of the Public Utilities
25    Act.
26    (d) (c) Complaints may be filed with the Illinois Commerce

 

 

10200HB4973sam001- 54 -LRB102 21371 AMQ 38034 a

1Commission under this Section by a consumer whose electric
2service has been provided by an alternative retail electric
3supplier in a manner not in compliance with this Section or by
4the Illinois Commerce Commission on its own motion when it
5appears to the Commission that an alternative retail electric
6supplier has provided service in a manner not in compliance
7with this Section. If, after notice and hearing, the
8Commission finds that an alternative retail electric supplier
9has violated this Section, the Commission may in its
10discretion do any one or more of the following:
11        (1) Require the violating alternative retail electric
12    supplier to refund to the consumer charges collected in
13    excess of those that would have been charged by the
14    consumer's authorized electric service provider.
15        (2) Require the violating alternative retail electric
16    supplier to pay to the consumer's authorized electric
17    service provider the amount the authorized electric
18    service provider would have collected for the electric
19    service. The Commission is authorized to reduce this
20    payment by any amount already paid by the violating
21    alternative retail electric supplier to the consumer's
22    authorized provider for electric service.
23        (3) Require the violating alternative retail electric
24    supplier to pay a fine of up to $10,000 $1,000 into the
25    Public Utility Fund for each repeated and intentional
26    violation of this Section.

 

 

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1        (4) Issue a cease and desist order.
2        (5) For a pattern of violation of this Section or for
3    violations that continue after intentionally violating a
4    cease and desist order, revoke the violating alternative
5    retail electric supplier's certificate of service
6    authority.
7    (e) (d) For purposes of this Section:
8    "Electric service provider" shall have the meaning given
9that phrase in Section 6.5 of the Attorney General Act.
10    "Alternative retail electric supplier" has the meaning
11given to that term in Section 16-102 of the Public Utilities
12Act.
13(Source: P.A. 101-590, eff. 1-1-20.)
 
14    (815 ILCS 505/2DDD)
15    Sec. 2DDD. Alternative gas suppliers.
16    (a) Definitions.
17        (1) "Alternative gas supplier" has the same meaning as
18    in Section 19-105 of the Public Utilities Act.
19        (2) "Gas utility" has the same meaning as in Section
20    19-105 of the Public Utilities Act.
21    (b) It is an unfair or deceptive act or practice within the
22meaning of Section 2 of this Act for any person to violate any
23provision of this Section.
24    (c) Solicitation.
25        (1) An alternative gas supplier shall not utilize the

 

 

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1    name of a public utility in any manner that is deceptive or
2    misleading, including, but not limited to, implying or
3    otherwise leading a customer to believe that an
4    alternative gas supplier is soliciting on behalf of or is
5    an agent of a utility. An alternative gas supplier shall
6    not utilize the name, or any other identifying insignia,
7    graphics, or wording, that has been used at any time to
8    represent a public utility company or its services or to
9    identify, label, or define any of its natural gas supply
10    offers and shall not misrepresent the affiliation of any
11    alternative supplier with the gas utility, governmental
12    bodies, or consumer groups.
13        (2) If any sales solicitation, agreement, contract, or
14    verification is translated into another language and
15    provided to a customer, all of the documents must be
16    provided to the customer in that other language.
17        (2.3) An alternative gas supplier shall state that it
18    represents an independent seller of gas certified by the
19    Illinois Commerce Commission and that he or she is not
20    employed by, representing, endorsed by, or acting on
21    behalf of a utility, or a utility program.
22        (2.5) All in-person and telephone solicitations shall
23    be conducted in, translated into, and provided in a
24    language in which the consumer subject to the marketing or
25    solicitation is able to understand and communicate. An
26    alternative gas supplier shall terminate a solicitation if

 

 

10200HB4973sam001- 57 -LRB102 21371 AMQ 38034 a

1    the consumer subject to the marketing or communication is
2    unable to understand and communicate in the language in
3    which the marketing or solicitation is being conducted. An
4    alternative gas supplier shall comply with Section 2N of
5    this Act.
6        (3) An alternative gas supplier shall clearly and
7    conspicuously disclose the following information to all
8    customers:
9            (A) the prices, terms, and conditions of the
10        products and services being sold to the customer;
11            (B) where the solicitation occurs in person,
12        including through door-to-door solicitation, the
13        salesperson's name;
14            (C) the alternative gas supplier's contact
15        information, including the address, phone number, and
16        website;
17            (D) contact information for the Illinois Commerce
18        Commission, including the toll-free number for
19        consumer complaints and website;
20            (E) a statement of the customer's right to rescind
21        the offer within 10 business days of the date on the
22        utility's notice confirming the customer's decision to
23        switch suppliers, as well as phone numbers for the
24        supplier and utility that the consumer may use to
25        rescind the contract;
26            (F) the amount of the early termination fee, if

 

 

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1        any; and
2            (G) the utility gas supply cost rates per therm
3        price available from the Illinois Commerce Commission
4        website applicable at the time the alternative gas
5        supplier is offering or selling the products or
6        services to the customer and shall disclose the
7        following statement:
8            "(Name of the alternative gas supplier) is not the
9        same entity as your gas delivery company. You are not
10        required to enroll with (name of alternative retail
11        gas supplier). Beginning on (effective date), the
12        utility gas supply cost rate per therm is (cost). The
13        utility gas supply cost will expire on (expiration
14        date). For more information go to the Illinois
15        Commerce Commission's free website at
16        www.icc.illinois.gov/ags/consumereducation.aspx.".
17        (4) Except as provided in paragraph (5) of this
18    subsection (c), an alternative gas supplier shall send the
19    information described in paragraph (3) of this subsection
20    (c) to all customers within one business day of the
21    authorization of a switch.
22        (5) An alternative gas supplier engaging in
23    door-to-door solicitation of consumers shall provide the
24    information described in paragraph (3) of this subsection
25    (c) during all door-to-door solicitations that result in a
26    customer deciding to switch his or her supplier.

 

 

10200HB4973sam001- 59 -LRB102 21371 AMQ 38034 a

1    (d) Customer Authorization. An alternative gas supplier
2shall not submit or execute a change in a customer's selection
3of a natural gas provider unless and until: (i) the
4alternative gas supplier first discloses all material terms
5and conditions of the offer to the customer; (ii) the
6alternative gas supplier has obtained the customer's express
7agreement to accept the offer after the disclosure of all
8material terms and conditions of the offer; and (iii) the
9alternative gas supplier has confirmed the request for a
10change in accordance with one of the following procedures:
11        (1) The alternative gas supplier has obtained the
12    customer's written or electronically signed authorization
13    in a form that meets the following requirements:
14            (A) An alternative gas supplier shall obtain any
15        necessary written or electronically signed
16        authorization from a customer for a change in natural
17        gas service by using a letter of agency as specified in
18        this Section. Any letter of agency that does not
19        conform with this Section is invalid.
20            (B) The letter of agency shall be a separate
21        document (or an easily separable document containing
22        only the authorization language described in item (E)
23        of this paragraph (1)) whose sole purpose is to
24        authorize a natural gas provider change. The letter of
25        agency must be signed and dated by the customer
26        requesting the natural gas provider change.

 

 

10200HB4973sam001- 60 -LRB102 21371 AMQ 38034 a

1            (C) The letter of agency shall not be combined
2        with inducements of any kind on the same document.
3            (D) Notwithstanding items (A) and (B) of this
4        paragraph (1), the letter of agency may be combined
5        with checks that contain only the required letter of
6        agency language prescribed in item (E) of this
7        paragraph (1) and the necessary information to make
8        the check a negotiable instrument. The letter of
9        agency check shall not contain any promotional
10        language or material. The letter of agency check shall
11        contain in easily readable, bold face type on the face
12        of the check, a notice that the consumer is
13        authorizing a natural gas provider change by signing
14        the check. The letter of agency language also shall be
15        placed near the signature line on the back of the
16        check.
17            (E) At a minimum, the letter of agency must be
18        printed with a print of sufficient size to be clearly
19        legible, and must contain clear and unambiguous
20        language that confirms:
21                (i) the customer's billing name and address;
22                (ii) the decision to change the natural gas
23            provider from the current provider to the
24            prospective alternative gas supplier;
25                (iii) the terms, conditions, and nature of the
26            service to be provided to the customer, including,

 

 

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1            but not limited to, the rates for the service
2            contracted for by the customer; and
3                (iv) that the customer understands that any
4            natural gas provider selection the customer
5            chooses may involve a charge to the customer for
6            changing the customer's natural gas provider.
7            (F) Letters of agency shall not suggest or require
8        that a customer take some action in order to retain the
9        customer's current natural gas provider.
10            (G) If any portion of a letter of agency is
11        translated into another language, then all portions of
12        the letter of agency must be translated into that
13        language.
14        (2) An appropriately qualified independent third party
15    has obtained, in accordance with the procedures set forth
16    in this paragraph (2), the customer's oral authorization
17    to change natural gas providers that confirms and includes
18    appropriate verification data. The independent third party
19    must: (i) not be owned, managed, controlled, or directed
20    by the alternative gas supplier or the alternative gas
21    supplier's marketing agent; (ii) not have any financial
22    incentive to confirm provider change requests for the
23    alternative gas supplier or the alternative gas supplier's
24    marketing agent; and (iii) operate in a location
25    physically separate from the alternative gas supplier or
26    the alternative gas supplier's marketing agent. Automated

 

 

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1    third-party verification systems and 3-way conference
2    calls may be used for verification purposes so long as the
3    other requirements of this paragraph (2) are satisfied. An
4    alternative gas supplier or alternative gas supplier's
5    sales representative initiating a 3-way conference call or
6    a call through an automated verification system must drop
7    off the call once the 3-way connection has been
8    established. All third-party verification methods shall
9    elicit, at a minimum, the following information:
10            (A) the identity of the customer;
11            (B) confirmation that the person on the call is
12        authorized to make the provider change;
13            (C) confirmation that the person on the call wants
14        to make the provider change;
15            (D) the names of the providers affected by the
16        change;
17            (E) the service address of the service to be
18        switched; and
19            (F) the price of the service to be provided and the
20        material terms and conditions of the service being
21        offered, including whether any early termination fees
22        apply.
23        Third-party verifiers may not market the alternative
24    gas supplier's services. All third-party verifications
25    shall be conducted in the same language that was used in
26    the underlying sales transaction and shall be recorded in

 

 

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1    their entirety. Submitting alternative gas suppliers shall
2    maintain and preserve audio records of verification of
3    customer authorization for a minimum period of 2 years
4    after obtaining the verification. Automated systems must
5    provide customers with an option to speak with a live
6    person at any time during the call. Each disclosure made
7    during the third-party verification must be made
8    individually to obtain clear acknowledgment of each
9    disclosure. The alternative gas supplier must be in a
10    location where he or she cannot hear the customer while
11    the third-party verification is conducted. The alternative
12    gas supplier shall not contact the customer after the
13    third-party verification for a period of 24 hours unless
14    the customer initiates the contact.
15        (3) The alternative gas supplier has obtained the
16    customer's electronic authorization to change natural gas
17    service via telephone. Such authorization must elicit the
18    information in subparagraphs (A) through (F) of paragraph
19    (2) of this subsection (d). Alternative gas suppliers
20    electing to confirm sales electronically shall establish
21    one or more toll-free telephone numbers exclusively for
22    that purpose. Calls to the number or numbers shall connect
23    a customer to a voice response unit, or similar mechanism,
24    that makes a date-stamped, time-stamped recording of the
25    required information regarding the alternative gas
26    supplier change.

 

 

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1        The alternative gas supplier shall not use such
2    electronic authorization systems to market its services.
3        (4) When a consumer initiates the call to the
4    prospective alternative gas supplier, in order to enroll
5    the consumer as a customer, the prospective alternative
6    gas supplier must, with the consent of the customer, make
7    a date-stamped, time-stamped audio recording that elicits,
8    at a minimum, the following information:
9            (A) the identity of the customer;
10            (B) confirmation that the person on the call is
11        authorized to make the provider change;
12            (C) confirmation that the person on the call wants
13        to make the provider change;
14            (D) the names of the providers affected by the
15        change;
16            (E) the service address of the service to be
17        switched; and
18            (F) the price of the service to be supplied and the
19        material terms and conditions of the service being
20        offered, including whether any early termination fees
21        apply.
22        Submitting alternative gas suppliers shall maintain
23    and preserve the audio records containing the information
24    set forth above for a minimum period of 2 years.
25        (5) In the event that a customer enrolls for service
26    from an alternative gas supplier via an Internet website,

 

 

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1    the alternative gas supplier shall obtain an
2    electronically signed letter of agency in accordance with
3    paragraph (1) of this subsection (d) and any customer
4    information shall be protected in accordance with all
5    applicable statutes and rules. In addition, an alternative
6    gas supplier shall provide the following when marketing
7    via an Internet website:
8            (A) The Internet enrollment website shall, at a
9        minimum, include:
10                (i) a copy of the alternative gas supplier's
11            customer contract, which clearly and conspicuously
12            discloses all terms and conditions; and
13                (ii) a conspicuous prompt for the customer to
14            print or save a copy of the contract.
15            (B) Any electronic version of the contract shall
16        be identified by version number, in order to ensure
17        the ability to verify the particular contract to which
18        the customer assents.
19            (C) Throughout the duration of the alternative gas
20        supplier's contract with a customer, the alternative
21        gas supplier shall retain and, within 3 business days
22        of the customer's request, provide to the customer an
23        email e-mail, paper, or facsimile of the terms and
24        conditions of the numbered contract version to which
25        the customer assents.
26            (D) The alternative gas supplier shall provide a

 

 

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1        mechanism by which both the submission and receipt of
2        the electronic letter of agency are recorded by time
3        and date.
4            (E) After the customer completes the electronic
5        letter of agency, the alternative gas supplier shall
6        disclose conspicuously through its website that the
7        customer has been enrolled and the alternative gas
8        supplier shall provide the customer an enrollment
9        confirmation number.
10        (6) When a customer is solicited in person by the
11    alternative gas supplier's sales agent, the alternative
12    gas supplier may only obtain the customer's authorization
13    to change natural gas service through the method provided
14    for in paragraph (2) of this subsection (d).
15    Alternative gas suppliers must be in compliance with the
16provisions of this subsection (d) within 90 days after April
1710, 2009 (the effective date of Public Act 95-1051).
18    (e) Early Termination.
19        (1) Beginning January 1, 2020, consumers shall have
20    the right to terminate their contract with an alternative
21    gas supplier at any time without any termination fees or
22    penalties.
23        (2) In any agreement that contains an early
24    termination clause, an alternative gas supplier shall
25    provide the customer the opportunity to terminate the
26    agreement without any termination fee or penalty within 10

 

 

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1    business days after the date of the first bill issued to
2    the customer for products or services provided by the
3    alternative gas supplier. The agreement shall disclose the
4    opportunity and provide a toll-free phone number that the
5    customer may call in order to terminate the agreement.
6    (f) The alternative gas supplier shall provide each
7customer the opportunity to rescind its agreement without
8penalty within 10 business days after the date on the gas
9utility notice to the customer. The alternative gas supplier
10shall disclose to the customer all of the following:
11        (1) that the gas utility shall send a notice
12    confirming the switch;
13        (2) that from the date the utility issues the notice
14    confirming the switch, the customer shall have 10 business
15    days before the switch will become effective;
16        (3) that the customer may contact the gas utility or
17    the alternative gas supplier to rescind the switch within
18    10 business days; and
19        (4) the contact information for the gas utility and
20    the alternative gas supplier.
21    The alternative gas supplier disclosure shall be included
22in its sales solicitations, contracts, and all applicable
23sales verification scripts.
24    (f-5)(1) Beginning January 1, 2020, an alternative gas
25supplier shall not sell or offer to sell any products or
26services to a consumer pursuant to a contract in which the

 

 

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1contract automatically renews, unless an alternative gas
2supplier provides to the consumer at the outset of the offer,
3in addition to other disclosures required by law, a separate
4written statement titled "Automatic Contract Renewal" that
5clearly and conspicuously discloses in bold lettering in at
6least 12-point font the terms and conditions of the automatic
7contract renewal provision, including: (i) the estimated bill
8cycle on which the initial contract term expires and a
9statement that it could be later based on when the utility
10accepts the initial enrollment; (ii) the estimated bill cycle
11on which the new contract term begins and a statement that it
12will immediately follow the last billing cycle of the current
13term; (iii) the procedure to terminate the contract before the
14new contract term applies; and (iv) the cancellation
15procedure. If the alternative gas supplier sells or offers to
16sell the products or services to a consumer during an
17in-person solicitation or telemarketing solicitation, the
18disclosures described in this paragraph (1) shall also be made
19to the consumer verbally during the solicitation. Nothing in
20this paragraph (1) shall be construed to apply to contracts
21entered into before January 1, 2020.
22    (2) At least 30 days before, but not more than 60 days
23prior, to the end of the initial contract term, in any and all
24contracts that automatically renew after the initial term, the
25alternative gas supplier shall send, in addition to other
26disclosures required by law, a separate written notice of the

 

 

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1contract renewal to the consumer that clearly and
2conspicuously discloses the following:
3        (A) a statement printed or visible from the outside of
4    the envelope or in the subject line of the email, if the
5    customer has agreed to receive official documents by
6    email, that states "Contract Renewal Notice";
7        (B) a statement in bold lettering, in at least
8    12-point font, that the contract will automatically renew
9    unless the customer cancels it;
10        (C) the billing cycle in which service under the
11    current term will expire;
12        (D) the billing cycle in which service under the new
13    term will begin;
14        (E) the process and options available to the consumer
15    to reject the new contract terms;
16        (F) the cancellation process if the consumer's
17    contract automatically renews before the consumer rejects
18    the new contract terms;
19        (G) the terms and conditions of the new contract term;
20        (H) for a fixed rate or flat bill contract, a
21    side-by-side comparison of the current fixed rate or flat
22    bill to the new fixed rate or flat bill; for a variable
23    rate contract or time-of-use product in which the first
24    month's renewal price can be determined, a side-by-side
25    comparison of the current price and the price for the
26    first month of the new variable or time-of-use price; or

 

 

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1    for a variable or time-of-use contract based on a publicly
2    available index, a side-by-side comparison of the current
3    formula and the new formula; and
4        (I) the phone number and Internet email address to
5    submit a consumer inquiry or complaint to the Illinois
6    Commerce Commission and the Office of the Attorney
7    General.
8    (3) An alternative gas supplier shall not automatically
9renew a consumer's enrollment after the current term of the
10contract expires when the current term of the contract
11provides that the consumer will be charged a fixed rate and the
12renewed contract provides that the consumer will be charged a
13variable rate, unless: (i) the alternative gas supplier
14complies with paragraphs (1) and (2); and (ii) the customer
15expressly consents to the contract renewal in writing or by
16electronic signature at least 30 days, but no more than 60
17days, before the contract expires.
18    (4) An alternative gas supplier shall not submit a change
19to a customer's gas service provider in violation of Section
2019-116 of the Public Utilities Act.
21    (g) The provisions of this Section shall apply only to
22alternative gas suppliers serving or seeking to serve
23residential and small commercial customers and only to the
24extent such alternative gas suppliers provide services to
25residential and small commercial customers.
26    (h) Complaints may be filed with the Commission under this

 

 

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1Section by a consumer whose gas service has been provided by an
2alternative retail gas supplier in a manner not in compliance
3with this Section or by the Commission on its own motion when
4it appears to the Commission that an alternative retail gas
5supplier has provided service in a manner not in compliance
6with this Section. If, after notice and hearing, the
7Commission finds that an alternative retail gas supplier has
8violated this Section, the Commission may in its discretion do
9any one or more of the following:
10        (1) require the alternative retail gas supplier to
11    refund to the consumer charges collected in excess of
12    those that would have been charged by the consumer's
13    authorized gas service provider;
14        (2) require the alternative retail gas supplier to pay
15    to the consumer's authorized gas service provider the
16    amount the authorized gas service provider would have
17    collected for the gas service. The Commission is
18    authorized to reduce this payment by any amount already
19    paid by the alternative retail gas to the consumer's
20    authorized provider for gas service;
21        (3) require the alternative retail electric supplier
22    to pay a fine of up to $10,000 per occurrence into the
23    Public Utility Fund for each violation of this Section;
24        (4) issue a cease and desist order; and
25        (5) for a pattern of violation of this Section or for
26    violations that continue after a cease and desist order,

 

 

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1    revoke the alternative retail gas supplier's certificate
2    of service authority.
3(Source: P.A. 101-590, eff. 1-1-20; 102-558, eff. 8-20-21.)".