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2005 Illinois Code - 220 ILCS 5/ Public Utilities Act. 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.

"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.

"Small commercial customer" means a nonresidential retail customer of
a
natural gas utility
who is identified by the alternative gas supplier, prior
to becoming a customer of the alternative gas supplier, as
consuming 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.

"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. 94‑738, eff. 5‑4‑06.)

(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.

(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 possess 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 the characteristics, including the size and financial sophistication of the customers that the applicant seeks to serve, and shall consider whether the applicant seeks to provide gas using property, plant, and equipment that it owns, controls, or operates.

(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 will comply with all other

applicable laws and rules.

(f) 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.

(Source: P.A. 92‑529, eff. 2‑8‑02; 92‑852, eff. 8‑26‑02.)

(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; and

(2) continue to comply with the requirements for

certification stated in Section 19‑110.

(c) An alternative gas supplier shall obtain verifiable authorization from a
customer, in a form or manner approved by the Commission, before the customer
is
switched from another supplier.

(d) No alternative gas supplier shall:

(1) enter into or employ any arrangements which have

the effect of preventing any customer from having access to the services of the gas utility in whose service area the customer is located; or

(2) charge customers for such access.

(e) An alternative gas supplier that is certified to serve residential
or small commercial customers shall not:

(1) deny service to a customer or group of customers

nor establish any differences as to prices, terms, conditions, services, products, facilities, or in any other respect, whereby such denial or differences are based upon race, gender, or income; or

(2) deny service based on locality, nor establish

any unreasonable difference as to prices, terms, conditions, services, products, or facilities as between localities.

(f) An alternative gas supplier shall comply with the following requirements
with respect to the marketing, offering, and provision of products or services:

(1) Any marketing materials which make statements

concerning prices, terms, and conditions of service shall contain information that adequately discloses the prices, terms and conditions of the products or services.

(2) Before any customer is switched from another

supplier, the alternative gas supplier shall give the customer written information that adequately discloses, in plain language, the prices, terms, and conditions of the products and services being offered and sold to the customer.

(3) The alternative gas supplier shall provide to

the customer:

(A) accurate, timely, and itemized billing

statements that describe the products and services provided to the customer and their prices and that specify the gas consumption amount and any service charges and taxes; provided that this item (f)(3)(A) does not apply to small commercial customers;

(B) an additional statement, at least annually,

that adequately discloses the average monthly prices, and the terms and conditions, of the products and services sold to the customer; provided that this item (f)(3)(B) does not apply to small commercial customers;

(C) refunds of any deposits with interest within

30 days after the date that the customer changes gas suppliers or discontinues service if the customer has satisfied all of his or her outstanding financial obligations to the alternative gas supplier at an interest rate set by the Commission which shall be the same as that required of gas utilities; and

(D) refunds, in a timely fashion, of all

undisputed overpayments upon the oral or written request of the customer.

(g) An alternative gas supplier may limit the overall size or availability
of
a
service offering by specifying one or more of the following:

(1) a maximum number of customers and maximum amount

of gas load to be served;

(2) time period during which the offering will be

available; or

(3) other comparable limitation, but not including

the geographic locations of customers within the area which the alternative gas supplier is certificated to serve.

The alternative gas supplier shall file the terms and
conditions of
such service offering including the applicable limitations with the Commission
prior to
making the service offering available to customers.

(h) Nothing in this Section shall be construed as preventing an alternative
gas
supplier that is an affiliate of, or which contracts with,
(i) an industry or
trade
organization or association,
(ii) a membership organization or association that
exists for
a purpose other than the purchase of gas, or
(iii) another organization that
meets criteria
established in a rule adopted by the Commission from offering through the
organization
or association services at prices, terms and conditions that are available
solely to the
members of the organization or association.

(Source: P.A. 92‑529, eff. 2‑8‑02; 92‑852, eff. 8‑26‑02.)

(220 ILCS 5/19‑120)

Sec. 19‑120.

Commission oversight of services provided by 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) The Commission shall have jurisdiction in accordance with the provisions
of Article X of this Act to entertain and dispose of any complaint against any
alternative
gas supplier alleging that:

(1) the alternative gas supplier has violated or is

in nonconformance with any applicable provisions of Section 19‑110 or Section 19‑115;

(2) an alternative gas supplier has failed to

provide service in accordance with the terms of its contract or contracts with a customer or customers;

(3) the alternative gas supplier has violated or is

in nonconformance with the transportation services tariff of, or any of its agreements relating to transportation services with, the gas utility or municipal system providing transportation services; or

(4) the alternative gas supplier has violated or

failed to comply with the requirements of Sections 8‑201 through 8‑207, 8‑301, 8‑505, or 8‑507 of this Act as made applicable to alternative gas suppliers.

(c) The Commission shall have authority after notice and hearing held on
complaint or on the Commission's own motion to:

(1) order an alternative gas supplier to cease and

desist, or correct, any violation of or nonconformance with the provisions of Section 19‑110 or 19‑115;

(2) impose financial penalties for violations of or

nonconformances with the provisions of Section 19‑110 or 19‑115, not to exceed (i) $10,000 per occurrence or (ii) $30,000 per day for those violations or nonconformances which continue after the Commission issues a cease‑and‑desist order; and

(3) alter, modify, revoke, or suspend the

certificate of service authority of an alternative gas supplier for substantial or repeated violations of or nonconformances with the provisions of Section 19‑110 or 19‑115.

(d) Nothing in this Act shall be construed to limit, restrict, or
mitigate
in
any way the power and authority of the State's Attorneys or the Attorney
General under the Consumer Fraud and Deceptive Business Practices Act.

(Source: P.A. 92‑529, eff. 2‑8‑02; 92‑852, eff. 8‑26‑02.)

(220 ILCS 5/19‑125)

Sec. 19‑125.

Consumer education.

(a) The Commission shall make available upon request and at no charge, and
shall make available to the public
on the Internet through the State of Illinois World Wide Web site:

(1) a list of all certified alternative gas

suppliers serving residential and small commercial customers within the service area of each gas utility including, in the case of the Internet, computer links to available web sites of the certified alternative gas suppliers;

(2) a list of all certified alternative gas

suppliers serving residential or small commercial customers that have been found in the last 3 years by the Commission pursuant to Section 10‑108 to have failed to provide service in accordance with this Act;

(3) guidelines to assist customers in determining

which gas supplier is most appropriate for each customer; and

(4) Internet links to providers of information that

enables customers to compare prices and services of gas utilities and alternative gas suppliers, if and when that information is available.

(b) In any service area where customers are able to choose their natural gas
supplier, the Commission shall require gas utilities and alternative gas
suppliers to inform customers of how they may contact the Commission in order
to
obtain information about the customer choice program.

(Source: P.A. 92‑852, eff. 8‑26‑02.)

(220 ILCS 5/19‑130)

Sec. 19‑130.

Commission study and report.

Beginning in 2003, and ending
in 2007, the Commission shall prepare an annual
report regarding the
development of natural gas markets in Illinois.  The report shall be filed by
July 1
of each year with the Joint
Committee on Legislative Support Services of the General Assembly and the
Governor and shall be
publicly available. The report shall include, at a minimum, the following
information:

(1) the aggregate annual demand of retail natural

gas customers in the State of Illinois in the preceding calendar year;

(2) the total annual therms delivered and sold to

retail customers in the State of Illinois by each gas utility and each alternative gas supplier in the preceding calendar year;

(3) the percentage of therms delivered and sold to

customers in the State of Illinois in the preceding calendar year by each gas utility and each alternative gas supplier;

(4) the total number of customers in the State of

Illinois served in the preceding calendar year by each gas utility and each alternative gas supplier;

(5) an analysis of the status and development of the

retail natural gas market in the State of Illinois; and

(6) any other information the Commission considers

significant in assessing the development of gas markets in the State of Illinois.

(Source: P.A. 92‑852, eff. 8‑26‑02.)

(220 ILCS 5/19‑135)

Sec. 19‑135.

Single billing.

It is the intent of the General Assembly
that in any service
area where customers are able to choose their natural gas supplier, a single
billing option shall be offered to customers for both the services provided by
the alternative gas supplier and the delivery services provided by the gas
utility.  A gas utility shall file a tariff pursuant to Article IX of this Act
that allows alternative gas suppliers to issue single bills to residential and
small commercial customers for both the services provided by the alternative
gas supplier and the delivery services provided by the gas utility to
customers; provided that if a form of single billing is being offered in a gas
utility's service area on the effective date of this amendatory Act of the
92nd General Assembly, that form of single billing shall remain in effect
unless and until otherwise ordered by the Commission.

(Source: P.A. 92‑852, eff. 8‑26‑02.)

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