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Regulator Moves To Formally Adopt Rules Requiring Retail Suppliers To Notify Customers of Rate Changes Greater Than 20%

Regulator Would Adopt "Many" Of Consumer Advocates' Suggestions

September 23, 2016

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

The Illinois Commerce Commission voted to adopt a first notice concerning retail electric supplier marketing rules that would require retail electric suppliers to notify customers of rate changes in excess of 20%

Adoption of a first notice order means the ICC will now submit the revisions to 83 Ill. Adm. Code 412 and 83 Ill. Adm. Code 453 to the Secretary of State to begin the first notice period required for rulemakings. The ICC will have to vote on the rules again before they are final.

A written order, which reflects changes adopted by the ICC yesterday versus a draft issued in January, was not immediately available.

However, Commissioner Ann McCabe said that the adopted first notice order would require retail electric suppliers to notify customers of rate changes in excess of 20%. An earlier Staff proposal would have required such notices only for changes in excess of 30%.

A January proposed order would have required that, if a residential variable rate customer’s rate increases by more than 30% from one monthly billing period to the next, the supplier shall send a separate written notice to the customer informing the customer of the upcoming rate change. It was unclear if the final order would adopt this provision without any other changes other than setting the threshold at 20% (e.g. requirement for written notice, limitation to residential, variable products)

McCabe expressed concern that customers may disregard overly frequent notices

McCabe also generally expressed that the rules were, "overly prescriptive in some areas."

While specifics were not discussed, McCabe also suggested that the rules would require "uniform" training for suppliers and agents

Chairman Brien Sheahan said that the final first notice order adopted "many" of the suggestions of the Attorney General and Citizens Utility Board.

Among other things, Sheahan described the first notice order as, "standardizing," contracts

Docket 15-0512

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