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Draft Rules Would Prohibit Retail Suppliers' Use of Utility Logo (Includes Corporate Sharing of Logo)

January 20, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

A proposed first notice order from two Illinois ALJs in a broad rulemaking concerning retail electric supplier marketing and disclosure rules would prohibit retail electric suppliers from using the logo of any public utility.

"The Commission finds a ban on the use of any utility’s logo to be an appropriate consumer protection, and it is adopted," a draft first notice order states.

More specifically, the proposed rules under the draft first notice order would prohibit, "the use of all utility names or logos, not simply the customer’s utility."

Retail supplier marketing materials would be prohibited from using, "the name or any other identifying insignia, graphics or wording that has been used at any time to represent a public utility company or its services to identify, label or define any of its energy or power offers."

The draft first notice order makes clear that this prohibition is intended to apply to situations in which a corporate logo is shared among the utility as well as non-utility affiliates, such as in the case of Nicor Advanced Energy, which had objected to the prohibition.

The draft first notice order states an intent to repeal existing rules under a separate section of the administrative code (Section 450.25(b)) which explicitly states that, "Nothing in subsection (a) shall be construed as prohibiting an affiliated interest in competition with ARES from using the corporate name or logo of an electric utility or electric utility holding company."

"Part 450 was in effect prior to the practices being addressed in this rulemaking. Marketplace developments since its enactment convince the Commission that it is no longer appropriate. Thus, rather than finding Part 450.25(b) to support NAE’s position, the Commission finds that a limited rulemaking addressing the repeal of Part 450.25 should be conducted and Staff is so directed. The Commission finds a ban on the use of any utility’s logo to be an appropriate consumer protection, and it is adopted," the draft first order states

Notably, the term public utility is not defined in the retail supplier marketing rules (though the specific term electric utility is), opening the question as to whether the prohibition on the use of utility logos extends to public utilities without Illinois franchises or service areas.

The draft order would also prohibit the use of a public utility name in any manner that is deceptive or misleading. "This prohibition applies to any public utility, not just an electric utility, because the use of any public utility name can be very misleading to customers. In the Commission’s view, not all customers are aware of the distinction between gas or electric utilities. Even more importantly, the Commission is convinced that customers are not aware of the distinction between RESs [retail electric suppliers] and public utilities – whether gas or electric," the draft order states

Docket 15-0512

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