Statutes > Illinois Statutes > CHAPTER 220 UTILITIES > 220 ILCS 5/ Public Utilities Act. > Article XIX - Alternative Gas Supplier Law

Article XIX - Alternative Gas Supplier Law


      (220 ILCS 5/Art. XIX heading)
ARTICLE XIX. ALTERNATIVE GAS SUPPLIER LAW

    (220 ILCS 5/19‑100)
    Sec. 19‑100. Short title. This Article may be cited as the Alternative Gas Supplier Law.
(Source: P.A. 92‑529, eff. 2‑8‑02.)

    (220 ILCS 5/19‑105)
    Sec. 19‑105. Definitions. For the purposes of this Article, the following terms shall be defined as set forth in this Section.
    "Alternative gas supplier" means every person, cooperative, corporation, municipal corporation, company, association, joint stock company or association, firm, partnership, individual, or other entity, their lessees, trustees, or receivers appointed by any court whatsoever, that offers gas for sale, lease, or in exchange for other value received to one or more customers, or that engages in the furnishing of gas to one or more customers, and shall include affiliated interests of a gas utility, resellers, aggregators and marketers, but shall not include (i) gas utilities (or any agent of the gas utility to the extent the gas utility provides tariffed services to customers through an agent); (ii) public utilities that are owned and operated by any political subdivision, public institution of higher education or municipal corporation of this State, or public utilities that are owned by a political subdivision, public institution of higher education, or municipal corporation and operated by any of its lessees or operating agents; (iii) natural gas cooperatives that are not‑for‑profit corporations operated for the purpose of administering, on a cooperative basis, the furnishing of natural gas for the benefit of their members who are consumers of natural gas; and (iv) the ownership or operation of a facility that sells compressed natural gas at retail to the public for use only as a motor vehicle fuel and the selling of compressed natural gas at retail to the public for use only as a motor vehicle fuel.
    "Gas utility" means a public utility, as defined in Section 3‑105 of this Act, that has a franchise, license, permit, or right to furnish or sell gas or transportation services to customers within a service area.
    "Residential customer" means a customer who receives gas utility service for household purposes distributed to a dwelling of 2 or fewer units which is billed under a residential rate or gas utility service for household purposes distributed to a dwelling unit or units which is billed under a residential rate and is registered by a separate meter for each dwelling unit.
    "Sales agent" means any employee, agent, independent contractor, consultant, or other person that is engaged by the alternative gas supplier to solicit customers to purchase, enroll in, or contract for alternative gas service on behalf of an alternative gas supplier.
    "Service area" means (i) the geographic area within which a gas utility was lawfully entitled to provide gas to customers as of the effective date of this amendatory Act of the 92nd General Assembly and includes (ii) the location of any customer to which the gas utility was lawfully providing gas utility services on such effective date.
    "Single billing" means the combined billing of the services provided by both a natural gas utility and an alternative gas supplier to any customer who has enrolled in a customer choice program.
    "Small commercial customer" means a nonresidential retail customer of a natural gas utility who consumed 5,000 or fewer therms of natural gas during the previous year; provided that any alternative gas supplier may remove the customer from designation as a "small commercial customer" if the customer consumes more than 5,000 therms of natural gas in any calendar year after becoming a customer of the alternative gas supplier. In determining whether a customer has consumed 5,000 or fewer therms of natural gas during the previous year, usage by the same commercial customer shall be aggregated to include usage at the same premises even if measured by more than one meter, and to include usage at multiple premises. Nothing in this Section creates an affirmative obligation on a gas utility to monitor or inform customers or alternative gas suppliers as to a customer's status as a small commercial customer as that term is defined herein. Nothing in this Section relieves a gas utility from any obligation to provide information upon request to a customer, alternative gas supplier, the Commission, or others necessary to determine whether a customer meets the classification of small commercial customers as that term is defined herein.
    "Tariffed service" means a service provided to customers by a gas utility as defined by its rates on file with the Commission pursuant to the provisions of Article IX of this Act.
    "Transportation services" means those services provided by the gas utility that are necessary in order for the storage, transmission and distribution systems to function so that customers located in the gas utility's service area can receive gas from suppliers other than the gas utility and shall include, without limitation, standard metering and billing services.
(Source: P.A. 95‑1051, eff. 4‑10‑09; 96‑435, eff. 1‑1‑10; 96‑1000, eff. 7‑2‑10.)

    (220 ILCS 5/19‑110)
    Sec. 19‑110. Certification of alternative gas suppliers.
    (a) The provisions of this Section shall apply only to alternative gas suppliers serving or seeking to serve residential or small commercial customers and only to the extent such alternative gas suppliers provide services to residential or small commercial customers.
    (b) An alternative gas supplier must obtain a certificate of service authority from the Commission in accordance with this Section before serving any customer or other user located in this State. An alternative gas supplier may request, and the Commission may grant, a certificate of service authority for the entire State or for a specified geographic area of the State. A person, corporation, or other entity acting as an alternative gas supplier on the effective date of this amendatory Act of the 92nd General Assembly shall have 180 days from the effective date of this amendatory Act of the 92nd General Assembly to comply with the requirements of this Section in order to continue to operate as an alternative gas supplier.
    (c) An alternative gas supplier seeking a certificate of service authority shall file with the Commission a verified application containing information showing that the applicant meets the requirements of this Section. The alternative gas supplier shall publish notice of its application in the official State newspaper within 10 days following the date of its filing. No later than 45 days after the application is properly filed with the Commission, and such notice is published, the Commission shall issue its order granting or denying the application.
    (d) An application for a certificate of service authority shall identify the area or areas in which the applicant intends to offer service and the types of services it intends to offer. Applicants that seek to serve residential or small commercial customers within a geographic area that is smaller than a gas utility's service area shall submit evidence demonstrating that the designation of this smaller area does not violate Section 19‑115. An applicant may state in its application for certification any limitations that will be imposed on the number of customers or maximum load to be served. The applicant shall submit as part of its application a statement indicating:
        (1) Whether the applicant has been denied a natural
     gas supplier license in any state in the United States.
        (2) Whether the applicant has had a natural gas
     supplier license suspended or revoked by any state in the United States.
        (3) Where, if any, other natural gas supplier license
     applications are pending in the United States.
        (4) Whether the applicant is the subject of any
     lawsuits filed in a court of law or formal complaints filed with a regulatory agency alleging fraud, deception or unfair marketing practices, or other similar allegations, identifying the name, case number, and jurisdiction of each such lawsuit or complaint.
    For the purposes of this subsection (d), formal
     complaints include only those complaints that seek a binding determination from a state or federal regulatory body.
    (e) The Commission shall grant the application for a certificate of service authority if it makes the findings set forth in this subsection based on the verified application and such other information as the applicant may submit.
        (1) That the applicant possesses sufficient
     technical, financial, and managerial resources and abilities to provide the service for which it seeks a certificate of service authority. In determining the level of technical, financial, and managerial resources and abilities which the applicant must demonstrate, the Commission shall consider:
            (A) the characteristics, including the size and
         financial sophistication of the customers that the applicant seeks to serve;
            (B) whether the applicant seeks to provide gas
         using property, plant, and equipment that it owns, controls, or operates; and
            (C) the applicant's commitment of resources to
         the management of sales and marketing staff, through affirmative managerial policies, independent audits, technology, hands‑on field monitoring and training, and, in the case of applicants who will have sales personnel or sales agents within the State of Illinois, the applicant's managerial presence within the State.
        (2) That the applicant will comply with all
     applicable federal, State, regional, and industry rules, policies, practices, and procedures for the use, operation, and maintenance of the safety, integrity, and reliability of the gas transmission system.
        (3) That the applicant will comply with such
     informational or reporting requirements as the Commission may by rule establish.
        (4) That the area to be served by the applicant and
     any limitations it proposes on the number of customers or maximum amount of load to be served meet the provisions of Section 19‑115, provided, that if the applicant seeks to serve an area smaller than the service area of a gas utility or proposes other limitations on the number of customers or maximum amount of load to be served, the Commission can extend the time for considering such a certificate request by up to 90 days, and can schedule hearings on such a request.
        (5) That the applicant and the applicant's sales
     agents will comply with all other applicable laws and rules.
    (f) The Commission can extend the time for considering such a certificate request by up to 90 days, and can schedule hearings on such a request if:
        (1) a party to the application proceeding has
     formally requested that the Commission hold hearings in a pleading that alleges that one or more of the allegations or certifications in the application is false or misleading; or
        (2) other facts or circumstances exist that will
     necessitate additional time or evidence in order to determine whether a certificate should be issued.
    (g) The Commission shall have the authority to promulgate rules to carry out the provisions of this Section. Within 30 days after the effective date of this amendatory Act of the 92nd General Assembly, the Commission shall adopt an emergency rule or rules applicable to the certification of those gas suppliers that seek to serve residential customers. Within 180 days of the effective date of this amendatory Act of the 92nd General Assembly, the Commission shall adopt rules that specify criteria which, if met by any such alternative gas supplier, shall constitute the demonstration of technical, financial, and managerial resources and abilities to provide service required by item (1) of subsection (e) of this Section, such as a requirement to post a bond or letter of credit, from a responsible surety or financial institution, of sufficient size for the nature and scope of the services to be provided, demonstration of adequate insurance for the scope and nature of the services to be provided, and experience in providing similar services in other jurisdictions.
    (h) The Commission may deny with prejudice any application that repeatedly fails to include the attachments, documentation, and affidavits required by the application form or that repeatedly fails to provide any other information required by this Section.
(Source: P.A. 95‑1051, eff. 4‑10‑09.)

    (220 ILCS 5/19‑111)
    Sec. 19‑111. Material changes in business.
    (a) The provisions of this Section shall apply only to alternative gas suppliers serving or seeking to serve residential or small commercial customers and only to the extent such alternative gas suppliers provide services to residential or small commercial customers.
    (b) Alternative gas suppliers shall file with the Commission a notification of any material change to the information supplied in a certification application within 30 days of such material change.
        (1) An alternative gas supplier shall file such
     notice under the docket number assigned to the alternative gas supplier's certification application, whichever is the most recent. The supplier shall also serve such notice upon the gas utility company serving customers in the service area where the alternative gas supplier is certified to provide service.
        (2) After notice and an opportunity for a hearing,
     the Commission may (i) suspend, rescind, or conditionally rescind an alternative gas supplier's certificate if it determines that the material change will adversely affect the alternative gas supplier's fitness or ability to provide the services for which it is certified or (ii) require the alternative gas supplier to provide reasonable financial assurances sufficient to protect their customers and gas utilities from default.
    (c) Material changes to the information contained in or supplied with a certification application include, but are not limited to, the following:
        (1) Any significant change in ownership (an ownership
     interest of 5% or more) of the applicant or alternative gas supplier.
        (2) An affiliation with any gas utility or change of
     an affiliation with a gas utility in this State.
        (3) Retirement or other long‑term changes to the
     operational status of supply resources relied upon by the alternative gas supplier to provide alternative gas service. Changes in the volume of supply from any given supply resource replaced by a comparable supply resource do not need to be reported.
        (4) Revocation, restriction, or termination of any
     interconnection or service agreement with a pipeline company or natural gas company relied upon by an alternative gas supplier to provide alternative retail natural gas service, but only if such revocation, restriction, or termination creates a situation in which the alternative gas supplier does not meet the tariffed capacity requirements of the relevant Illinois natural gas utility or utilities.
        (5) If the alternative gas supplier has a long‑term
     bond rating from Standard & Poor's or its successor, or Fitch Ratings or its successor, or Moody's Investor Service or its successor, and the alternative gas supplier's long‑term bond rating falls below BBB as reported by Standard & Poor's or its successor or Fitch Ratings or its successor or below Baa3 as reported by Moody's Investors Service or its successor.
        (6) The applicant or alternative gas supplier has or
     intends to file for reorganization, protection from creditors, or any other form of bankruptcy with any court.
        (7) Any judgment, finding, or ruling by a court or
     regulatory agency that could affect an alternative gas supplier's fitness or ability to provide service in this State.
        (8) Any change in the alternative gas supplier's name
     or logo, including without limitation any change in the alternative gas supplier's legal name, fictitious names, or assumed business names, except for logos and names the alternative gas supplier provided as part of its original certification process or that the alternative gas supplier previously provided to the Commission under this Section.
(Source: P.A. 95‑1051, eff. 4‑10‑09.)

    (220 ILCS 5/19‑112)
    Sec. 19‑112. Managerial resources.
    (a) An alternative gas supplier must maintain sufficient managerial resources and abilities to provide the service for which it has a certificate of service authority. In determining the level of managerial resources and abilities that the alternative gas supplier must demonstrate, the Commission shall consider, in addition to the requirements in Section 19‑110(e)(1), the following:
        (1) complaints to the Commission by consumers
    regarding the alternative gas supplier, including those that reflect on the alternative gas supplier's ability to properly manage solicitation and authorization; and
        (2) the alternative gas supplier's involvement in the
    Commission's consumer complaint process, including the resources the alternative gas supplier dedicates to the process and the alternative gas supplier's ability to manage the issues raised by complaints, and the resolutions of the complaints.
    (b) The provisions of this Section shall apply only to alternative gas suppliers serving or seeking to serve residential or small commercial customers and only to the extent such alternative gas suppliers provide services to residential or small commercial customers, unless otherwise noted.
(Source: P.A. 95‑1051, eff. 4‑10‑09; 96‑1000, eff. 7‑2‑10.)

    (220 ILCS 5/19‑115)
    Sec. 19‑115. Obligations of alternative gas suppliers.
    (a) The provisions of this Section shall apply only to alternative gas suppliers serving or seeking to serve residential or small commercial customers and only to the extent such alternative gas suppliers provide services to residential or small commercial customers.
    (b) An alternative gas supplier shall:
        (1) comply with the requirements imposed on public
     utilities by Sections 8‑201 through 8‑207, 8‑301, 8‑505 and 8‑507 of this Act, to the extent that these Sections have application to the services being offered by the alternative gas supplier;
        (2) continue to comply with the requirements for
     certification stated in Section 19‑110;
        (3) comply with complaint procedures established by
     the Commission;
        (4) except as provided in subsection (h) of this
     Section, file with the Chief Clerk of the Commission, within 20 business days after the effective date of this amendatory Act of the 95th General Assembly, a copy of bill formats, standard customer contract and customer complaint and resolution procedures, and the name and telephone number of the company representative whom Commission employees may contact to resolve customer complaints and other matters. In the case of a gas supplier that engages in door‑to‑door solicitation, the company shall file with the Commission the consumer information disclosure required by item (3) of subsection (c) of Section 2DDD of the Consumer Fraud and Deceptive Business Practices Act and shall file updated information within 10 business days after changes in any of the documents or information required to be filed by this item (4); and
        (5) maintain a customer call center where customers
     can reach a representative and receive current information. At least once every 6 months, each alternative gas supplier shall provide written information to customers explaining how to contact the call center. The average answer time for calls placed to the call center shall not exceed 60 seconds where a representative or automated system is ready to render assistance and/or accept information to process calls. The abandon rate for calls placed to the call center shall not exceed 10%. Each alternative gas supplier shall maintain records of the call center's telephone answer time performance and abandon call rate. These records shall be kept for a minimum of 2 years and shall be made available to Commission personnel upon request. In the event that answer times and/or abandon rates exceed the limits established above, the reporting alternative gas supplier may provide the Commission or its personnel with explanatory details. At a minimum, these records shall contain the following information in monthly increments:
            (A) total number of calls received;
            (B) number of calls answered;
            (C) average answer time;
            (D) number of abandoned calls; and
            (E) abandon call rate.
    Alternative gas suppliers that do not have electronic answering capability that meets these requirements shall notify the Manager of the Commission's Consumer Services Division or its successor within 30 days following the effective date of this amendatory Act of the 95th General Assembly and work with Staff to develop individualized reporting requirements as to the call volume and responsiveness of the call center.
    On or before March 1 of every year, each entity shall file a report with the Chief Clerk of the Commission for the preceding calendar year on its answer time and abandon call rate for its call center. A copy of the report shall be sent to the Manager of the Consumer Services Division or its successor.
    (c) An alternative gas supplier shall not submit or execute a change in a customer's selection of a natural gas provider unless and until (i) the alternative gas supplier first discloses all material terms and conditions of the offer to the customer; (ii) the alternative gas supplier has obtained the customer's express agreement to accept the offer after the disclosure of all material terms and conditions of the offer; and (iii) the alternative gas supplier has confirmed the request for a change in accordance with one of the following procedures:
        (1) The alternative gas supplier has obtained the
     customer's written or electronically signed authorization in a form that meets the following requirements:
            (A) An alternative gas supplier shall obtain any
         necessary written or electronically signed authorization from a customer for a change in natural gas service by using a letter of agency as specified in this Section. Any letter of agency that does not conform with this Section is invalid.
            (B) The letter of agency shall be a separate
         document (or an easily separable document containing only the authorization language described in item (E) of this paragraph (1)) whose sole purpose is to authorize a natural gas provider change. The letter of agency must be signed and dated by the customer requesting the natural gas provider change.
            (C) The letter of agency shall not be combined
         with inducements of any kind on the same document.
            (D) Notwithstanding items (A) and (B) of this
         paragraph (1), the letter of agency may be combined with checks that contain only the required letter of agency language prescribed in item (E) of this paragraph (1) and the necessary information to make the check a negotiable instrument. The letter of agency check shall not contain any promotional language or material. The letter of agency check shall contain in easily readable, bold face type on the face of the check a notice that the consumer is authorizing a natural gas provider change by signing the check. The letter of agency language also shall be placed near the signature line on the back of the check.
            (E) At a minimum, the letter of agency must be
         printed with a print of sufficient size to be clearly legible and must contain clear and unambiguous language that confirms:
                (i) the customer's billing name and address;
                (ii) the decision to change the natural gas
             provider from the current provider to the prospective alternative gas supplier;
                (iii) the terms, conditions, and nature of
             the service to be provided to the customer, including, but not limited to, the rates for the service contracted for by the customer; and
                (iv) that the customer understands that any
             natural gas provider selection the customer chooses may involve a charge to the customer for changing the customer's natural gas provider.
            (F) Letters of agency shall not suggest or
         require that a customer take some action in order to retain the customer's current natural gas provider.
            (G) If any portion of a letter of agency is
         translated into another language, then all portions of the letter of agency must be translated into that language.
        (2) An appropriately qualified independent third
     party has obtained, in accordance with the procedures set forth in this paragraph (2), the customer's oral authorization to change natural gas providers that confirms and includes appropriate verification data. The independent third party must (i) not be owned, managed, controlled, or directed by the alternative gas supplier or the alternative gas supplier's marketing agent; (ii) not have any financial incentive to confirm provider change requests for the alternative gas supplier or the alternative gas supplier's marketing agent; and (iii) operate in a location physically separate from the alternative gas supplier or the alternative gas supplier's marketing agent. Automated third‑party verification systems and 3‑way conference calls may be used for verification purposes so long as the other requirements of this paragraph (2) are satisfied. An alternative gas supplier or alternative gas supplier's sales representative initiating a 3‑way conference call or a call through an automated verification system must drop off the call once the 3‑way connection has been established. All third‑party verification methods shall elicit, at a minimum, the following information:
            (A) the identity of the customer;
            (B) confirmation that the person on the call is
         authorized to make the provider change;
            (C) confirmation that the person on the call
         wants to make the provider change;
            (D) the names of the providers affected by the
         change;
            (E) the service address of the service to be
         switched; and
            (F) the price of the service to be provided and
         the material terms and conditions of the service being offered, including whether any early termination fees apply.
        Third‑party verifiers may not market the alternative
     gas supplier's services by providing additional information. All third‑party verifications shall be conducted in the same language that was used in the underlying sales transaction and shall be recorded in their entirety. Submitting alternative gas suppliers shall maintain and preserve audio records of verification of customer authorization for a minimum period of 2 years after obtaining the verification. Automated systems must provide customers with an option to speak with a live person at any time during the call.
        (3) The alternative gas supplier has obtained the
     customer's authorization via an automated verification system to change natural gas service via telephone. An automated verification system is an electronic system that, through pre‑recorded prompts, elicits voice responses, touchtone responses, or both, from the customer and records both the prompts and the customer's responses. Such authorization must elicit the information in paragraph (2)(A) through (F) of this subsection (c). Alternative gas suppliers electing to confirm sales electronically through an automated verification system shall establish one or more toll‑free telephone numbers exclusively for that purpose. Calls to the number or numbers shall connect a customer to a voice response unit, or similar mechanism, that makes a date‑stamped, time‑stamped recording of the required information regarding the alternative gas supplier change.
        The alternative gas supplier shall not use such
     electronic authorization systems to market its services.
        (4) When a consumer initiates the call to the
     prospective alternative gas supplier, in order to enroll the consumer as a customer, the prospective alternative gas supplier must, with the consent of the customer, make a date‑stamped, time‑stamped audio recording that elicits, at a minimum, the following information:
            (A) the identity of the customer;
            (B) confirmation that the person on the call is
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