Full Text of HB4280 102nd General Assembly
HB4280 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB4280 Introduced 1/5/2022, by Rep. Anne Stava-Murray SYNOPSIS AS INTRODUCED: |
| 815 ILCS 505/2EE | | 815 ILCS 505/2DDD | |
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Amends the Consumer Fraud and Deceptive Business Practices Act. Prohibits alternative retail electric suppliers and alternative gas suppliers from enrolling a customer unless enrollment is for a fixed-rate commodity product that is priced at no more than 5% greater than the trailing 12-month average utility supply rate. Provides that variable rate offers must provide savings compared to the utility price on a monthly basis.
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| | A BILL FOR |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Consumer Fraud and Deceptive Business | 5 | | Practices Act is amended by changing Sections 2EE and 2DDD as | 6 | | follows:
| 7 | | (815 ILCS 505/2EE)
| 8 | | Sec. 2EE. Alternative retail electric supplier selection. | 9 | | (a) An alternative retail electric supplier shall not | 10 | | submit or execute
a change in a consumer's selection of a | 11 | | provider of electric
service unless and until: | 12 | | (i) the alternative retail electric supplier first | 13 | | discloses all material terms and conditions of the offer | 14 | | to the consumer; | 15 | | (ii) if the consumer is a small commercial retail | 16 | | customer as that term is defined in subsection (c) of this | 17 | | Section or a residential consumer, the alternative retail | 18 | | electric supplier discloses the utility electric supply | 19 | | price to compare, which shall be the sum of the electric | 20 | | supply charge and the transmission services charge, and | 21 | | shall not include the purchased electricity adjustment, | 22 | | applicable at the time the offer is made to the consumer; | 23 | | (iii) if the consumer is a small commercial retail |
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| 1 | | customer as that term is defined in subsection (c) of this | 2 | | Section or a residential consumer, the alternative retail | 3 | | electric provider discloses the following statement: | 4 | | "(Name of the alternative retail electric | 5 | | supplier) is not the same entity as your electric | 6 | | delivery company. You are not required to enroll with | 7 | | (name of alternative retail electric supplier). As of | 8 | | (effective date), the electric supply price to compare | 9 | | is currently (price in cents per kilowatt hour). The | 10 | | electric utility electric supply price will expire on | 11 | | (expiration date). The utility electric supply price | 12 | | to compare does not include the purchased electricity | 13 | | adjustment factor. For more information go to the | 14 | | Illinois Commerce Commission's free website at | 15 | | www.pluginillinois.org.". | 16 | | If applicable, the statement shall include the | 17 | | following statement: | 18 | | "The purchased electricity adjustment factor may | 19 | | range between +.5 cents and -.5 cents per kilowatt | 20 | | hour."; | 21 | | (iv) the alternative retail electric supplier has | 22 | | obtained the consumer's express agreement to accept the | 23 | | offer after the disclosure of all material terms and | 24 | | conditions of the offer; and | 25 | | (v) the alternative retail electric supplier has | 26 | | confirmed the request for a change in accordance with one |
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| 1 | | of the following procedures:
| 2 | | (A) The new alternative retail electric supplier | 3 | | has obtained the consumer's
written or electronically | 4 | | signed
authorization in a form that meets the
| 5 | | following requirements:
| 6 | | (1) An alternative retail electric supplier | 7 | | shall obtain any
necessary written or | 8 | | electronically signed authorization from a | 9 | | consumer for a
change in electric service by using | 10 | | a letter of agency as
specified in this
Section. | 11 | | Any letter of agency that does
not conform with | 12 | | this
Section is invalid.
| 13 | | (2) The letter of agency shall be a separate
| 14 | | document (an easily separable document containing | 15 | | only
the authorization language described in | 16 | | subparagraph (5)) whose sole purpose is to | 17 | | authorize an
electric service provider change. The | 18 | | letter of agency
must be signed and dated by the | 19 | | consumer requesting the
electric service provider | 20 | | change.
| 21 | | (3) The letter of agency shall not be combined | 22 | | with
inducements of any kind on the same document.
| 23 | | (4) Notwithstanding subparagraphs (1) and (2), | 24 | | the letter of agency may be combined with
checks | 25 | | that contain only the required letter of agency
| 26 | | language prescribed in subparagraph (5) and
the |
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| 1 | | necessary information to make the check a | 2 | | negotiable
instrument. The letter of agency check | 3 | | shall not contain
any promotional language or | 4 | | material. The letter of
agency check shall contain | 5 | | in easily readable, bold-face
type on the face of | 6 | | the check, a notice that the consumer
is | 7 | | authorizing an electric service provider change by
| 8 | | signing the check. The letter of agency language | 9 | | also
shall be placed near the signature line on | 10 | | the back of
the check.
| 11 | | (5) At a minimum, the letter of agency must be
| 12 | | printed with a print of sufficient size to be | 13 | | clearly
legible, and must contain clear and | 14 | | unambiguous language
that confirms:
| 15 | | (i) The consumer's billing name and | 16 | | address;
| 17 | | (ii) The decision to change the electric | 18 | | service
provider from the current provider to | 19 | | the
prospective provider;
| 20 | | (iii) The terms, conditions, and nature of | 21 | | the
service to be provided to the consumer | 22 | | must be
clearly and conspicuously disclosed, | 23 | | in writing, and
an alternative retail electric | 24 | | supplier must directly establish
the rates for | 25 | | the service contracted for by the consumer; | 26 | | and
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| 1 | | (iv) That the consumer understand that any
| 2 | | alternative retail electric supplier selection | 3 | | the consumer
chooses may involve a charge to | 4 | | the consumer for
changing the consumer's | 5 | | electric service provider.
| 6 | | (6) Letters of agency shall not suggest or | 7 | | require
that a consumer take some action in order | 8 | | to retain the consumer's
current electric service | 9 | | provider.
| 10 | | (7) If any portion of a letter of agency is
| 11 | | translated into another language, then all | 12 | | portions of
the letter of agency must be | 13 | | translated into that
language.
| 14 | | (B) An appropriately qualified independent third | 15 | | party has obtained, in accordance with the procedures | 16 | | set forth in this subsection (b), the consumer's oral | 17 | | authorization to change electric suppliers that | 18 | | confirms and includes appropriate verification data. | 19 | | The independent third party (i) must not be owned, | 20 | | managed, controlled, or directed by the supplier or | 21 | | the supplier's marketing agent; (ii) must not have any | 22 | | financial incentive to confirm supplier change | 23 | | requests for the supplier or the supplier's marketing | 24 | | agent; and (iii) must operate in a location physically | 25 | | separate from the supplier or the supplier's marketing | 26 | | agent.
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| 1 | | Automated third-party verification systems and | 2 | | 3-way conference calls may be used for verification | 3 | | purposes so long as the other requirements of this | 4 | | subsection (b) are satisfied. | 5 | | A supplier or supplier's sales representative | 6 | | initiating a 3-way conference call or a call through | 7 | | an automated verification system must drop off the | 8 | | call once the 3-way connection has been established. | 9 | | All third-party verification methods shall elicit, | 10 | | at a minimum, the following information: (i) the | 11 | | identity of the consumer; (ii) confirmation that the | 12 | | person on the call is the account holder, has been | 13 | | specifically and explicitly authorized by the account | 14 | | holder, or possesses lawful authority to make the | 15 | | supplier change; (iii) confirmation that the person on | 16 | | the call wants to make the supplier change; (iv) the | 17 | | names of the suppliers affected by the change; (v) the | 18 | | service address of the supply to be switched; and (vi) | 19 | | the price of the service to be supplied and the | 20 | | material terms and conditions of the service being | 21 | | offered, including whether any early termination fees | 22 | | apply. Third-party verifiers may not market the | 23 | | supplier's services by providing additional | 24 | | information, including information regarding | 25 | | procedures to block or otherwise freeze an account | 26 | | against further changes. |
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| 1 | | All third-party verifications shall be conducted | 2 | | in the same language that was used in the underlying | 3 | | sales transaction and shall be recorded in their | 4 | | entirety. Submitting suppliers shall maintain and | 5 | | preserve audio records of verification of subscriber | 6 | | authorization for a minimum period of 2 years after | 7 | | obtaining the verification. Automated systems must | 8 | | provide consumers with an option to speak with a live | 9 | | person at any time during the call.
Each disclosure | 10 | | made during the third-party verification must be made | 11 | | individually to obtain clear acknowledgment of each | 12 | | disclosure. The alternative retail electric supplier | 13 | | must be in a location where he or she cannot hear the | 14 | | customer while the third-party verification is | 15 | | conducted. The alternative retail electric supplier | 16 | | shall not contact the customer after the third-party | 17 | | verification for a period of 24 hours unless the | 18 | | customer initiates the contact. | 19 | | (C) When a consumer initiates the call to the | 20 | | prospective alternative retail electric supplier, in | 21 | | order to enroll the consumer as a customer, the | 22 | | prospective alternative retail electric supplier must, | 23 | | with the consent of the customer, make a date-stamped, | 24 | | time-stamped audio recording that elicits, at a | 25 | | minimum, the following information: | 26 | | (1) the identity of the customer; |
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| 1 | | (2) confirmation that the person on the call | 2 | | is authorized to make the supplier change; | 3 | | (3) confirmation that the person on the call | 4 | | wants to make the supplier change; | 5 | | (4) the names of the suppliers affected by the | 6 | | change; | 7 | | (5) the service address of the supply to be | 8 | | switched; and | 9 | | (6) the price of the service to be supplied | 10 | | and the material terms and conditions of the | 11 | | service being offered, including whether any early | 12 | | termination fees apply.
| 13 | | Submitting suppliers shall maintain and preserve | 14 | | the audio records containing the information set forth | 15 | | above for a minimum period of 2 years.
| 16 | | (b)(1) An alternative retail electric supplier shall not | 17 | | utilize the name of a public utility in any manner that is | 18 | | deceptive or misleading, including, but not limited to | 19 | | implying or otherwise leading a consumer to believe that an | 20 | | alternative retail electric supplier is soliciting on behalf | 21 | | of or is an agent of a utility. An alternative retail electric | 22 | | supplier shall not utilize the name, or any other identifying | 23 | | insignia, graphics, or wording that has been used at any time | 24 | | to represent a public utility company or its services, to | 25 | | identify, label, or define any of its electric power and | 26 | | energy service offers. An alternative retail electric supplier |
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| 1 | | may state the name of a public electric utility in order to | 2 | | accurately describe the electric utility service territories | 3 | | in which the supplier is currently offering an electric power | 4 | | and energy service. An alternative retail electric supplier | 5 | | that is the affiliate of an Illinois public utility and that | 6 | | was doing business in Illinois providing alternative retail | 7 | | electric service on January 1, 2016 may continue to use that | 8 | | public utility's name, logo, identifying insignia, graphics, | 9 | | or wording in its business operations occurring outside the | 10 | | service territory of the public utility with which it is | 11 | | affiliated. | 12 | | (2) An alternative retail electric supplier shall not | 13 | | state or otherwise imply that the alternative retail electric | 14 | | supplier is employed by, representing, endorsed by, or acting | 15 | | on behalf of a utility or utility program, a consumer group or | 16 | | consumer group program, or a governmental body, unless the | 17 | | alternative retail electric supplier has entered into a | 18 | | contractual arrangement with the governmental body and has | 19 | | been authorized by the governmental body to make the | 20 | | statements. | 21 | | (c) An alternative retail electric supplier shall not | 22 | | submit or execute a change in a consumer's selection of a | 23 | | provider of electric service unless the alternative retail | 24 | | electric supplier complies with the following requirements of | 25 | | this subsection (c). It is a violation of this Section for an | 26 | | alternative retail electric supplier to fail to comply with |
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| 1 | | this subsection (c). The requirements of this subsection (c) | 2 | | shall only apply to residential and small commercial retail | 3 | | customers. For purposes of this subsection (c) only, "small | 4 | | commercial retail customer" has the meaning given to that term | 5 | | in Section 16-102 of the Public Utilities Act. | 6 | | (1) During a solicitation an alternative retail | 7 | | electric supplier shall state that he or represents an | 8 | | independent seller of electric power and energy service | 9 | | certified by the Illinois Commerce Commission and that he | 10 | | or she is not employed by, representing, endorsed by, or | 11 | | acting on behalf of, a utility, or a utility program, a | 12 | | consumer group or consumer group program, or a | 13 | | governmental body, unless the alternative retail electric | 14 | | supplier has entered into a contractual arrangement with | 15 | | the governmental body and has been authorized with the | 16 | | governmental body to make the statements. | 17 | | (2) Alternative retail electric suppliers who engage | 18 | | in in-person solicitation for the purpose of selling | 19 | | electric power and energy service offered by the | 20 | | alternative retail electric supplier shall display | 21 | | identification on an outer garment. This identification | 22 | | shall be visible at all times and prominently display the | 23 | | following: (i) the alternative retail electric supplier | 24 | | agent's full name in reasonable size font; (ii) an agent | 25 | | identification number; (iii) a photograph of the | 26 | | alternative retail electric supplier agent; and (iv) the |
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| 1 | | trade name and logo of the alternative retail electric | 2 | | supplier the agent is representing. If the agent is | 3 | | selling electric power and energy services from multiple | 4 | | alternative retail electric suppliers to the consumer, the | 5 | | identification shall display the trade name and logo of | 6 | | the agent, broker, or consultant entity as that entity is | 7 | | defined in Section 16-115C of the Public Utilities Act. An | 8 | | alternative retail electric supplier shall leave the | 9 | | premises at the consumer's, owner's, or occupant's | 10 | | request. A copy of the Uniform Disclosure Statement | 11 | | described in 83 Ill. Adm. Code 412.115 and 412.Appendix A | 12 | | is to be left with the consumer, at the conclusion of the | 13 | | visit unless the consumer refuses to accept a copy. An | 14 | | alternative retail electric supplier may provide the | 15 | | Uniform Disclosure Statement electronically instead of in | 16 | | paper form to a consumer upon that customer's request. The | 17 | | alternative retail electric supplier shall also offer to | 18 | | the consumer, at the time of the initiation of the | 19 | | solicitation, a business card or other material that lists | 20 | | the agent's name, identification number and title, and the | 21 | | alternative retail electric supplier's name and contact | 22 | | information, including phone number. The alternative | 23 | | retail electric supplier shall not conduct any in-person | 24 | | solicitations of consumers at any building or premises | 25 | | where any sign, notice, or declaration of any description | 26 | | whatsoever is posted that prohibits sales, marketing, or |
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| 1 | | solicitations. The alternative retail electric supplier | 2 | | shall obtain consent to enter multi-unit residential | 3 | | dwellings. Consent obtained to enter a multi-unit dwelling | 4 | | from one prospective customer or occupant of the dwelling | 5 | | shall not constitute consent to market to any other | 6 | | prospective consumers without separate consent. | 7 | | (3) An alternative retail electric supplier who | 8 | | contacts consumers by telephone for the purpose of selling | 9 | | electric power and energy service shall provide the | 10 | | agent's name and identification number. Any telemarketing | 11 | | solicitations that lead to a telephone enrollment of a | 12 | | consumer must be recorded and retained for a minimum of 2 | 13 | | years. All telemarketing calls of consumers that do not | 14 | | lead to a telephone enrollment, but last at least 2 | 15 | | minutes, shall be recorded and retained for a minimum of 6 | 16 | | months. | 17 | | (4) During an inbound enrollment call, an alternative | 18 | | retail electric supplier shall state that he or she | 19 | | represents an independent seller of electric power and | 20 | | energy service certified by the Illinois Commerce | 21 | | Commission. All inbound enrollment calls that lead to an | 22 | | enrollment shall be recorded, and the recordings shall be | 23 | | retained for a minimum of 2 years. An inbound enrollment | 24 | | call that does not lead to an enrollment, but lasts at | 25 | | least 2 minutes, shall be retained for a minimum of 6 | 26 | | months. The alternative retail electric supplier shall |
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| 1 | | send the Uniform Disclosure Statement and contract to the | 2 | | customer within 3 business days after the electric | 3 | | utility's confirmation to the alternative retail electric | 4 | | supplier of an accepted enrollment. | 5 | | (5) If a direct mail solicitation to a consumer | 6 | | includes a written letter of agency, it shall include the | 7 | | Uniform Disclosure Statement described in 83 Ill. Adm. | 8 | | Code 412.115 and 412.Appendix A. The Uniform Disclosure | 9 | | Statement shall be provided on a separate page from the | 10 | | other marketing materials included in the direct mail | 11 | | solicitation. If a written letter of agency is being used | 12 | | to authorize a consumer's enrollment, the written letter | 13 | | of agency shall comply with this Section. A copy of the | 14 | | contract must be sent to consumer within 3 business days | 15 | | after the electric utility's confirmation to the | 16 | | alternative retail electric supplier of an accepted | 17 | | enrollment. | 18 | | (6) Online Solicitation. | 19 | | (A) Each alternative retail electric supplier | 20 | | offering electric power and energy service to | 21 | | consumers online shall clearly and conspicuously make | 22 | | all disclosures for any services offered through | 23 | | online enrollment before requiring the consumer to | 24 | | enter any personal information other than zip code, | 25 | | electric utility service territory, or type of service | 26 | | sought. |
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| 1 | | (B) Notwithstanding any requirements in this | 2 | | Section to the contrary, an alternative retail | 3 | | electric supplier may secure consent from the consumer | 4 | | to obtain customer-specific billing and usage | 5 | | information for the sole purpose of determining and | 6 | | pricing a product through a letter of agency or method | 7 | | approved through an Illinois Commerce Commission | 8 | | docket before making all disclosure for services | 9 | | offered through online enrollment. It is a violation | 10 | | of this Act for an alternative retail electric | 11 | | supplier to use a consumer's utility account number to | 12 | | execute or change a consumer's enrollment unless the | 13 | | consumer expressly consents to that enrollment as | 14 | | required by law. | 15 | | (C) The enrollment website of the alternative | 16 | | retail electric supplier shall, at a minimum, include: | 17 | | (i) disclosure of all material terms and conditions of | 18 | | the offer; (ii) a statement that electronic acceptance | 19 | | of the terms and conditions is an agreement to | 20 | | initiate service and begin enrollment; (iii) a | 21 | | statement that the consumer shall review the contract | 22 | | or contact the current supplier to learn if any early | 23 | | termination fees are applicable; and (iv) an email | 24 | | address and toll-free phone number of the alternative | 25 | | retail electric supplier where the customer can | 26 | | express a decision to rescind the contract. |
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| 1 | | (7)(A) Beginning January 1, 2020, an alternative | 2 | | retail electric supplier shall not sell or offer to sell | 3 | | any products or services to a consumer pursuant to a | 4 | | contract in which the contract automatically renews, | 5 | | unless an alternative retail electric supplier provides to | 6 | | the consumer at the outset of the offer, in addition to | 7 | | other disclosures required by law, a separate written | 8 | | statement titled "Automatic Contract Renewal" that clearly | 9 | | and conspicuously discloses in bold lettering in at least | 10 | | 12-point font the terms and conditions of the automatic | 11 | | contract renewal provision, including: (i) the estimated | 12 | | bill cycle on which the initial contract term expires and | 13 | | a statement that it could be later based on when the | 14 | | utility accepts the initial enrollment; (ii) the estimated | 15 | | bill cycle on which the new contract term begins and a | 16 | | statement that it will immediately follow the last billing | 17 | | cycle of the current term; (iii) the procedure to | 18 | | terminate the contract before the new contract term | 19 | | applies; and (iv) the cancellation procedure. If the | 20 | | alternative retail electric supplier sells or offers to | 21 | | sell the products or services to a consumer during an | 22 | | in-person solicitation or telemarketing solicitation, the | 23 | | disclosures described in this subparagraph (A) shall also | 24 | | be made to the consumer verbally during the solicitation. | 25 | | Nothing in this subparagraph (A) shall be construed to | 26 | | apply to contracts entered into before January 1, 2020. |
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| 1 | | (B) At least 30 days before, but not more than 60 | 2 | | days prior, to the end of the initial contract term, in | 3 | | any and all contracts that automatically renew after | 4 | | the initial term, the alternative retail electric | 5 | | supplier shall send, in addition to other disclosures | 6 | | required by law, a separate written notice of the | 7 | | contract renewal to the consumer that clearly and | 8 | | conspicuously discloses the following: | 9 | | (i) a statement printed or visible from the | 10 | | outside of the envelope or in the subject line of | 11 | | the email, if the customer has agreed to receive | 12 | | official documents by email, that states "Contract | 13 | | Renewal Notice"; | 14 | | (ii) a statement in bold lettering, in at | 15 | | least 12-point font, that the contract will | 16 | | automatically renew unless the customer cancels | 17 | | it; | 18 | | (iii) the billing cycle in which service under | 19 | | the current term will expire; | 20 | | (iv) the billing cycle in which service under | 21 | | the new term will begin; | 22 | | (v) the process and options available to the | 23 | | consumer to reject the new contract terms; | 24 | | (vi) the cancellation process if the | 25 | | consumer's contract automatically renews before | 26 | | the consumer rejects the new contract terms; |
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| 1 | | (vii) the terms and conditions of the new | 2 | | contract term; | 3 | | (viii) for a fixed rate contract, a | 4 | | side-by-side comparison of the current price and | 5 | | the new price; for a variable rate contract or | 6 | | time-of-use product in which the first month's | 7 | | renewal price can be determined, a side-by-side | 8 | | comparison of the current price and the price for | 9 | | the first month of the new variable or time-of-use | 10 | | price; or for a variable or time-of-use contract | 11 | | based on a publicly available index, a | 12 | | side-by-side comparison of the current formula and | 13 | | the new formula; and | 14 | | (ix) the phone number and email address to | 15 | | submit a consumer inquiry or complaint to the | 16 | | Illinois Commerce Commission and the Office of the | 17 | | Attorney General. | 18 | | (C) An alternative retail electric supplier shall | 19 | | not automatically renew a consumer's enrollment after | 20 | | the current term of the contract expires when the | 21 | | current term of the contract provides that the | 22 | | consumer will be charged a fixed rate and the renewed | 23 | | contract provides that the consumer will be charged a | 24 | | variable rate, unless: (i) the alternative retail | 25 | | electric supplier complies with subparagraphs (A) and | 26 | | (B); and (ii) the customer expressly consents to the |
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| 1 | | contract renewal in writing or by electronic signature | 2 | | at least 30 days, but no more than 60 days, before the | 3 | | contract expires. | 4 | | (D) This paragraph (7) does not apply to customers | 5 | | enrolled in a municipal aggregation program pursuant | 6 | | to Section 1-92 of the Illinois Power Agency Act. | 7 | | (8) All in-person and telephone solicitations shall be | 8 | | conducted in, translated into, and provided in a language | 9 | | in which the consumer subject to the marketing or | 10 | | solicitation is able to understand and communicate. An | 11 | | alternative retail electric supplier shall terminate a | 12 | | solicitation if the consumer subject to the marketing or | 13 | | communication is unable to understand and communicate in | 14 | | the language in which the marketing or solicitation is | 15 | | being conducted. An alternative retail electric supplier | 16 | | shall comply with Section 2N of this Act. | 17 | | (9) Beginning January 1, 2020, consumers shall have | 18 | | the right to terminate their contract with the alternative | 19 | | retail electric supplier at any time without any | 20 | | termination fees or penalties. | 21 | | (10) An alternative retail electric supplier shall not | 22 | | submit a change to a customer's electric service provider | 23 | | in violation of Section 16-115E of the Public Utilities | 24 | | Act. | 25 | | (11) An alternative retail electric supplier shall not | 26 | | enroll a customer unless enrollment is for a fixed-rate |
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| 1 | | commodity product that is priced at no more than 5% | 2 | | greater than the trailing 12-month average utility supply | 3 | | rate; variable rate offers must provide savings compared | 4 | | to the utility price on a monthly basis. | 5 | | (c) Complaints may be filed with the Illinois Commerce | 6 | | Commission under this Section by a consumer whose electric | 7 | | service has been provided by an alternative retail electric | 8 | | supplier in a manner not in compliance with this Section or by | 9 | | the Illinois Commerce Commission on its own motion when it | 10 | | appears to the Commission that an alternative retail electric | 11 | | supplier has provided service in a manner not in compliance | 12 | | with this Section. If, after notice and hearing, the | 13 | | Commission finds that an alternative retail electric supplier | 14 | | has violated this Section, the Commission may in its | 15 | | discretion do any one or more of the following: | 16 | | (1) Require the violating alternative retail electric | 17 | | supplier to refund to the consumer charges collected in | 18 | | excess of those that would have been charged by the | 19 | | consumer's authorized electric service provider. | 20 | | (2) Require the violating alternative retail electric | 21 | | supplier to pay to the consumer's authorized electric | 22 | | service provider the amount the authorized electric | 23 | | service provider would have collected for the electric | 24 | | service. The Commission is authorized to reduce this | 25 | | payment by any amount already paid by the violating | 26 | | alternative retail electric supplier to the consumer's |
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| 1 | | authorized provider for electric service. | 2 | | (3) Require the violating alternative retail electric | 3 | | supplier to pay a fine of up to $1,000 into the Public | 4 | | Utility Fund for each repeated and intentional violation | 5 | | of this Section. | 6 | | (4) Issue a cease and desist order. | 7 | | (5) For a pattern of violation of this Section or for | 8 | | intentionally violating a cease and desist order, revoke | 9 | | the violating alternative retail electric supplier's | 10 | | certificate of service authority.
| 11 | | (d) For purposes of this
Section: | 12 | | "Electric service provider"
shall have the meaning given | 13 | | that phrase in
Section 6.5 of the
Attorney General Act.
| 14 | | "Alternative retail electric supplier" has the meaning | 15 | | given to that term in Section 16-102 of the Public Utilities | 16 | | Act. | 17 | | (Source: P.A. 101-590, eff. 1-1-20 .)
| 18 | | (815 ILCS 505/2DDD) | 19 | | Sec. 2DDD. Alternative gas suppliers. | 20 | | (a) Definitions. | 21 | | (1) "Alternative gas supplier" has the same meaning as | 22 | | in Section 19-105 of the Public Utilities Act. | 23 | | (2) "Gas utility" has the same meaning as in Section | 24 | | 19-105 of the Public Utilities Act. | 25 | | (b) It is an unfair or deceptive act or practice within the |
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| 1 | | meaning of Section 2 of this Act for any person to violate any | 2 | | provision of this Section. | 3 | | (c) Solicitation. | 4 | | (1) An alternative gas supplier shall not utilize the | 5 | | name of a public utility in any manner that is deceptive or | 6 | | misleading, including, but not limited to, implying or | 7 | | otherwise leading a customer to believe that an | 8 | | alternative gas supplier is soliciting on behalf of or is | 9 | | an agent of a utility. An alternative gas supplier shall | 10 | | not utilize the name, or any other identifying insignia, | 11 | | graphics, or wording, that has been used at any time to | 12 | | represent a public utility company or its services or to | 13 | | identify, label, or define any of its natural gas supply | 14 | | offers and shall not misrepresent the affiliation of any | 15 | | alternative supplier with the gas utility, governmental | 16 | | bodies, or consumer groups. | 17 | | (2) If any sales solicitation, agreement, contract, or | 18 | | verification is translated into another language and | 19 | | provided to a customer, all of the documents must be | 20 | | provided to the customer in that other language. | 21 | | (2.3) An alternative gas supplier shall state that it | 22 | | represents an independent seller of gas certified by the | 23 | | Illinois Commerce Commission and that he or she is not | 24 | | employed by, representing, endorsed by, or acting on | 25 | | behalf of a utility, or a utility program. | 26 | | (2.5) All in-person and telephone solicitations shall |
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| 1 | | be conducted in, translated into, and provided in a | 2 | | language in which the consumer subject to the marketing or | 3 | | solicitation is able to understand and communicate. An | 4 | | alternative gas supplier shall terminate a solicitation if | 5 | | the consumer subject to the marketing or communication is | 6 | | unable to understand and communicate in the language in | 7 | | which the marketing or solicitation is being conducted. An | 8 | | alternative gas supplier shall comply with Section 2N of | 9 | | this Act. | 10 | | (3) An alternative gas supplier shall clearly and | 11 | | conspicuously disclose the following information to all | 12 | | customers: | 13 | | (A) the prices, terms, and conditions of the | 14 | | products and services being sold to the customer; | 15 | | (B) where the solicitation occurs in person, | 16 | | including through door-to-door solicitation, the | 17 | | salesperson's name; | 18 | | (C) the alternative gas supplier's contact | 19 | | information, including the address, phone number, and | 20 | | website; | 21 | | (D) contact information for the Illinois Commerce | 22 | | Commission, including the toll-free number for | 23 | | consumer complaints and website; | 24 | | (E) a statement of the customer's right to rescind | 25 | | the offer within 10 business days of the date on the | 26 | | utility's notice confirming the customer's decision to |
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| 1 | | switch suppliers, as well as phone numbers for the | 2 | | supplier and utility that the consumer may use to | 3 | | rescind the contract; | 4 | | (F) the amount of the early termination fee, if | 5 | | any; and | 6 | | (G) the utility gas supply cost rates per therm | 7 | | price available from the Illinois Commerce Commission | 8 | | website applicable at the time the alternative gas | 9 | | supplier is offering or selling the products or | 10 | | services to the customer and shall disclose the | 11 | | following statement: | 12 | | "(Name of the alternative gas supplier) is not the | 13 | | same entity as your gas delivery company. You are not | 14 | | required to enroll with (name of alternative retail | 15 | | gas supplier). Beginning on (effective date), the | 16 | | utility gas supply cost rate per therm is (cost). The | 17 | | utility gas supply cost will expire on (expiration | 18 | | date). For more information go to the Illinois | 19 | | Commerce Commission's free website at | 20 | | www.icc.illinois.gov/ags/consumereducation.aspx.". | 21 | | (3.5) An alternative gas supplier shall not enroll a | 22 | | customer unless enrollment is for a fixed-rate commodity | 23 | | product that is priced at no more than 5% greater than the | 24 | | trailing 12-month average utility supply rate; variable | 25 | | rate offers must provide savings compared to utility price | 26 | | on a monthly basis. |
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| 1 | | (4) Except as provided in paragraph (5) of this | 2 | | subsection (c), an alternative gas supplier shall send the | 3 | | information described in paragraph (3) of this subsection | 4 | | (c) to all customers within one business day of the | 5 | | authorization of a switch. | 6 | | (5) An alternative gas supplier engaging in | 7 | | door-to-door solicitation of consumers shall provide the | 8 | | information described in paragraph (3) of this subsection | 9 | | (c) during all door-to-door solicitations that result in a | 10 | | customer deciding to switch his or her supplier. | 11 | | (d) Customer Authorization. An alternative gas supplier | 12 | | shall not submit or execute a change in a customer's selection | 13 | | of a natural gas provider unless and until (i) the alternative | 14 | | gas supplier first discloses all material terms and conditions | 15 | | of the offer to the customer; (ii) the alternative gas | 16 | | supplier has obtained the customer's express agreement to | 17 | | accept the offer after the disclosure of all material terms | 18 | | and conditions of the offer; and (iii) the alternative gas | 19 | | supplier has confirmed the request for a change in accordance | 20 | | with one of the following procedures: | 21 | | (1) The alternative gas supplier has obtained the | 22 | | customer's written or electronically signed authorization | 23 | | in a form that meets the following requirements: | 24 | | (A) An alternative gas supplier shall obtain any | 25 | | necessary written or electronically signed | 26 | | authorization from a customer for a change in natural |
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| 1 | | gas service by using a letter of agency as specified in | 2 | | this Section. Any letter of agency that does not | 3 | | conform with this Section is invalid. | 4 | | (B) The letter of agency shall be a separate | 5 | | document (or an easily separable document containing | 6 | | only the authorization language described in item (E) | 7 | | of this paragraph (1)) whose sole purpose is to | 8 | | authorize a natural gas provider change. The letter of | 9 | | agency must be signed and dated by the customer | 10 | | requesting the natural gas provider change. | 11 | | (C) The letter of agency shall not be combined | 12 | | with inducements of any kind on the same document. | 13 | | (D) Notwithstanding items (A) and (B) of this | 14 | | paragraph (1), the letter of agency may be combined | 15 | | with checks that contain only the required letter of | 16 | | agency language prescribed in item (E) of this | 17 | | paragraph (1) and the necessary information to make | 18 | | the check a negotiable instrument. The letter of | 19 | | agency check shall not contain any promotional | 20 | | language or material. The letter of agency check shall | 21 | | contain in easily readable, bold face type on the face | 22 | | of the check, a notice that the consumer is | 23 | | authorizing a natural gas provider change by signing | 24 | | the check. The letter of agency language also shall be | 25 | | placed near the signature line on the back of the | 26 | | check. |
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| 1 | | (E) At a minimum, the letter of agency must be | 2 | | printed with a print of sufficient size to be clearly | 3 | | legible, and must contain clear and unambiguous | 4 | | language that confirms: | 5 | | (i) the customer's billing name and address; | 6 | | (ii) the decision to change the natural gas | 7 | | provider from the current provider to the | 8 | | prospective alternative gas supplier; | 9 | | (iii) the terms, conditions, and nature of the | 10 | | service to be provided to the customer, including, | 11 | | but not limited to, the rates for the service | 12 | | contracted for by the customer; and | 13 | | (iv) that the customer understands that any | 14 | | natural gas provider selection the customer | 15 | | chooses may involve a charge to the customer for | 16 | | changing the customer's natural gas provider. | 17 | | (F) Letters of agency shall not suggest or require | 18 | | that a customer take some action in order to retain the | 19 | | customer's current natural gas provider. | 20 | | (G) If any portion of a letter of agency is | 21 | | translated into another language, then all portions of | 22 | | the letter of agency must be translated into that | 23 | | language. | 24 | | (2) An appropriately qualified independent third party | 25 | | has obtained, in accordance with the procedures set forth | 26 | | in this paragraph (2), the customer's oral authorization |
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| 1 | | to change natural gas providers that confirms and includes | 2 | | appropriate verification data. The independent third party | 3 | | must (i) not be owned, managed, controlled, or directed by | 4 | | the alternative gas supplier or the alternative gas | 5 | | supplier's marketing agent; (ii) not have any financial | 6 | | incentive to confirm provider change requests for the | 7 | | alternative gas supplier or the alternative gas supplier's | 8 | | marketing agent; and (iii) operate in a location | 9 | | physically separate from the alternative gas supplier or | 10 | | the alternative gas supplier's marketing agent. Automated | 11 | | third-party verification systems and 3-way conference | 12 | | calls may be used for verification purposes so long as the | 13 | | other requirements of this paragraph (2) are satisfied. An | 14 | | alternative gas supplier or alternative gas supplier's | 15 | | sales representative initiating a 3-way conference call or | 16 | | a call through an automated verification system must drop | 17 | | off the call once the 3-way connection has been | 18 | | established. All third-party verification methods shall | 19 | | elicit, at a minimum, the following information: | 20 | | (A) the identity of the customer; | 21 | | (B) confirmation that the person on the call is | 22 | | authorized to make the provider change; | 23 | | (C) confirmation that the person on the call wants | 24 | | to make the provider change; | 25 | | (D) the names of the providers affected by the | 26 | | change; |
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| 1 | | (E) the service address of the service to be | 2 | | switched; and | 3 | | (F) the price of the service to be provided and the | 4 | | material terms and conditions of the service being | 5 | | offered, including whether any early termination fees | 6 | | apply. | 7 | | Third-party verifiers may not market the alternative | 8 | | gas supplier's services. All third-party verifications | 9 | | shall be conducted in the same language that was used in | 10 | | the underlying sales transaction and shall be recorded in | 11 | | their entirety. Submitting alternative gas suppliers shall | 12 | | maintain and preserve audio records of verification of | 13 | | customer authorization for a minimum period of 2 years | 14 | | after obtaining the verification. Automated systems must | 15 | | provide customers with an option to speak with a live | 16 | | person at any time during the call. Each disclosure made | 17 | | during the third-party verification must be made | 18 | | individually to obtain clear acknowledgment of each | 19 | | disclosure. The alternative gas supplier must be in a | 20 | | location where he or she cannot hear the customer while | 21 | | the third-party verification is conducted. The alternative | 22 | | gas supplier shall not contact the customer after the | 23 | | third-party verification for a period of 24 hours unless | 24 | | the customer initiates the contact. | 25 | | (3) The alternative gas supplier has obtained the | 26 | | customer's electronic authorization to change natural gas |
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| 1 | | service via telephone. Such authorization must elicit the | 2 | | information in subparagraphs (A) through (F) of paragraph | 3 | | (2) of this subsection (d). Alternative gas suppliers | 4 | | electing to confirm sales electronically shall establish | 5 | | one or more toll-free telephone numbers exclusively for | 6 | | that purpose. Calls to the number or numbers shall connect | 7 | | a customer to a voice response unit, or similar mechanism, | 8 | | that makes a date-stamped, time-stamped recording of the | 9 | | required information regarding the alternative gas | 10 | | supplier change. | 11 | | The alternative gas supplier shall not use such | 12 | | electronic authorization systems to market its services. | 13 | | (4) When a consumer initiates the call to the | 14 | | prospective alternative gas supplier, in order to enroll | 15 | | the consumer as a customer, the prospective alternative | 16 | | gas supplier must, with the consent of the customer, make | 17 | | a date-stamped, time-stamped audio recording that elicits, | 18 | | at a minimum, the following information: | 19 | | (A) the identity of the customer; | 20 | | (B) confirmation that the person on the call is | 21 | | authorized to make the provider change; | 22 | | (C) confirmation that the person on the call wants | 23 | | to make the provider change; | 24 | | (D) the names of the providers affected by the | 25 | | change; | 26 | | (E) the service address of the service to be |
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| 1 | | switched; and | 2 | | (F) the price of the service to be supplied and the | 3 | | material terms and conditions of the service being | 4 | | offered, including whether any early termination fees | 5 | | apply. | 6 | | Submitting alternative gas suppliers shall maintain | 7 | | and preserve the audio records containing the information | 8 | | set forth above for a minimum period of 2 years. | 9 | | (5) In the event that a customer enrolls for service | 10 | | from an alternative gas supplier via an Internet website, | 11 | | the alternative gas supplier shall obtain an | 12 | | electronically signed letter of agency in accordance with | 13 | | paragraph (1) of this subsection (d) and any customer | 14 | | information shall be protected in accordance with all | 15 | | applicable statutes and rules. In addition, an alternative | 16 | | gas supplier shall provide the following when marketing | 17 | | via an Internet website: | 18 | | (A) The Internet enrollment website shall, at a | 19 | | minimum, include: | 20 | | (i) a copy of the alternative gas supplier's | 21 | | customer contract, which clearly and conspicuously | 22 | | discloses all terms and conditions; and | 23 | | (ii) a conspicuous prompt for the customer to | 24 | | print or save a copy of the contract. | 25 | | (B) Any electronic version of the contract shall | 26 | | be identified by version number, in order to ensure |
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| 1 | | the ability to verify the particular contract to which | 2 | | the customer assents. | 3 | | (C) Throughout the duration of the alternative gas | 4 | | supplier's contract with a customer, the alternative | 5 | | gas supplier shall retain and, within 3 business days | 6 | | of the customer's request, provide to the customer an | 7 | | e-mail, paper, or facsimile of the terms and | 8 | | conditions of the numbered contract version to which | 9 | | the customer assents. | 10 | | (D) The alternative gas supplier shall provide a | 11 | | mechanism by which both the submission and receipt of | 12 | | the electronic letter of agency are recorded by time | 13 | | and date. | 14 | | (E) After the customer completes the electronic | 15 | | letter of agency, the alternative gas supplier shall | 16 | | disclose conspicuously through its website that the | 17 | | customer has been enrolled and the alternative gas | 18 | | supplier shall provide the customer an enrollment | 19 | | confirmation number. | 20 | | (6) When a customer is solicited in person by the | 21 | | alternative gas supplier's sales agent, the alternative | 22 | | gas supplier may only obtain the customer's authorization | 23 | | to change natural gas service through the method provided | 24 | | for in paragraph (2) of this subsection (d). | 25 | | Alternative gas suppliers must be in compliance with the | 26 | | provisions of this subsection (d) within 90 days after April |
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| 1 | | 10, 2009 (the effective date of Public Act 95-1051). | 2 | | (e) Early Termination. | 3 | | (1) Beginning January 1, 2020, consumers shall have | 4 | | the right to terminate their contract with an alternative | 5 | | gas supplier at any time without any termination fees or | 6 | | penalties. | 7 | | (2) In any agreement that contains an early | 8 | | termination clause, an alternative gas supplier shall | 9 | | provide the customer the opportunity to terminate the | 10 | | agreement without any termination fee or penalty within 10 | 11 | | business days after the date of the first bill issued to | 12 | | the customer for products or services provided by the | 13 | | alternative gas supplier. The agreement shall disclose the | 14 | | opportunity and provide a toll-free phone number that the | 15 | | customer may call in order to terminate the agreement. | 16 | | (f) The alternative gas supplier shall provide each | 17 | | customer the opportunity to rescind its agreement without | 18 | | penalty within 10 business days after the date on the gas | 19 | | utility notice to the customer. The alternative gas supplier | 20 | | shall disclose to the customer all of the following: | 21 | | (1) that the gas utility shall send a notice | 22 | | confirming the switch; | 23 | | (2) that from the date the utility issues the notice | 24 | | confirming the switch, the customer shall have 10 business | 25 | | days before the switch will become effective; | 26 | | (3) that the customer may contact the gas utility or |
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| 1 | | the alternative gas supplier to rescind the switch within | 2 | | 10 business days; and | 3 | | (4) the contact information for the gas utility and | 4 | | the alternative gas supplier. | 5 | | The alternative gas supplier disclosure shall be included | 6 | | in its sales solicitations, contracts, and all applicable | 7 | | sales verification scripts. | 8 | | (f-5)(1) Beginning January 1, 2020, an alternative gas | 9 | | supplier shall not sell or offer to sell any products or | 10 | | services to a consumer pursuant to a contract in which the | 11 | | contract automatically renews, unless an alternative gas | 12 | | supplier provides to the consumer at the outset of the offer, | 13 | | in addition to other disclosures required by law, a separate | 14 | | written statement titled "Automatic Contract Renewal" that | 15 | | clearly and conspicuously discloses in bold lettering in at | 16 | | least 12-point font the terms and conditions of the automatic | 17 | | contract renewal provision, including: (i) the estimated bill | 18 | | cycle on which the initial contract term expires and a | 19 | | statement that it could be later based on when the utility | 20 | | accepts the initial enrollment; (ii) the estimated bill cycle | 21 | | on which the new contract term begins and a statement that it | 22 | | will immediately follow the last billing cycle of the current | 23 | | term; (iii) the procedure to terminate the contract before the | 24 | | new contract term applies; and (iv) the cancellation | 25 | | procedure. If the alternative gas supplier sells or offers to | 26 | | sell the products or services to a consumer during an |
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| 1 | | in-person solicitation or telemarketing solicitation, the | 2 | | disclosures described in this paragraph (1) shall also be made | 3 | | to the consumer verbally during the solicitation. Nothing in | 4 | | this paragraph (1) shall be construed to apply to contracts | 5 | | entered into before January 1, 2020. | 6 | | (2) At least 30 days before, but not more than 60 days | 7 | | prior, to the end of the initial contract term, in any and all | 8 | | contracts that automatically renew after the initial term, the | 9 | | alternative gas supplier shall send, in addition to other | 10 | | disclosures required by law, a separate written notice of the | 11 | | contract renewal to the consumer that clearly and | 12 | | conspicuously discloses the following: | 13 | | (A) a statement printed or visible from the outside of | 14 | | the envelope or in the subject line of the email, if the | 15 | | customer has agreed to receive official documents by | 16 | | email, that states "Contract Renewal Notice"; | 17 | | (B) a statement in bold lettering, in at least | 18 | | 12-point font, that the contract will automatically renew | 19 | | unless the customer cancels it; | 20 | | (C) the billing cycle in which service under the | 21 | | current term will expire; | 22 | | (D) the billing cycle in which service under the new | 23 | | term will begin; | 24 | | (E) the process and options available to the consumer | 25 | | to reject the new contract terms; | 26 | | (F) the cancellation process if the consumer's |
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| 1 | | contract automatically renews before the consumer rejects | 2 | | the new contract terms; | 3 | | (G) the terms and conditions of the new contract term; | 4 | | (H) for a fixed rate or flat bill contract, a | 5 | | side-by-side comparison of the current fixed rate or flat | 6 | | bill to the new fixed rate or flat bill; for a variable | 7 | | rate contract or time-of-use product in which the first | 8 | | month's renewal price can be determined, a side-by-side | 9 | | comparison of the current price and the price for the | 10 | | first month of the new variable or time-of-use price; or | 11 | | for a variable or time-of-use contract based on a publicly | 12 | | available index, a side-by-side comparison of the current | 13 | | formula and the new formula; and | 14 | | (I) the phone number and email address to submit a | 15 | | consumer inquiry or complaint to the Illinois Commerce | 16 | | Commission and the Office of the Attorney General. | 17 | | (3) An alternative gas supplier shall not automatically | 18 | | renew a consumer's enrollment after the current term of the | 19 | | contract expires when the current term of the contract | 20 | | provides that the consumer will be charged a fixed rate and the | 21 | | renewed contract provides that the consumer will be charged a | 22 | | variable rate, unless: (i) the alternative gas supplier | 23 | | complies with paragraphs (1) and (2); and (ii) the customer | 24 | | expressly consents to the contract renewal in writing or by | 25 | | electronic signature at least 30 days, but no more than 60 | 26 | | days, before the contract expires. |
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| 1 | | (4) An alternative gas supplier shall not submit a change | 2 | | to a customer's gas service provider in violation of Section | 3 | | 19-116 of the Public Utilities Act. | 4 | | (g) The provisions of this Section shall apply only to | 5 | | alternative gas suppliers serving or seeking to serve | 6 | | residential and small commercial customers and only to the | 7 | | extent such alternative gas suppliers provide services to | 8 | | residential and small commercial customers.
| 9 | | (Source: P.A. 101-590, eff. 1-1-20; 102-558, eff. 8-20-21.)
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