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Regulator Bans Use of Utility Name, Logo By Retail Suppliers

Denies Exemption Language Sought By Utility Affiliate

June 5, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Illinois ICC has issued a second notice order to adopt a host of new retail electric marketing rules, including a prohibition on the use of a utility name (where deceptive) and logo by retail electric suppliers

The second notice order will be submitted to the Secretary of State to begin the second notice period.

Specifically, in the second notice order, the ICC adopted the following language:

a) An RES [retail electric supplier] shall not utilize the logo of a public utility in any manner.

b) An RES shall not utilize the name of a public utility in any manner that is deceptive or misleading, including, but not limited to, implying or otherwise leading a customer to believe that an RES is soliciting on behalf of or is an agent of a utility

c) An RES shall not utilize 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 electric power and energy service offers.

The ICC rejected language proposed by MidAmerican Energy Services, LLC that would have broadly exempted MidAmerican Energy Services from the provisions above. Specifically, MidAmerican Energy Services had proposed, "a RES that is an affiliate of an Illinois public utility, and that was doing business in Illinois providing RES service as of January 1, 2016, may continue to use that public utility's name, logo, identifying insignia, graphics, or wording in its business operations occurring outside the service territory of the public utility with which it is affiliate."

Regarding MidAmerican Energy Services's use of the MidAmerican utility logo, the ICC said, "The Commission does not believe that MES’s requested exemption should be extended to the logo and there is no statutory reason to require that MES be allowed to use MidAmerican’s logo. In the FNO [first notice order], the Commission stated that it 'agrees with CUB that there is no legitimate business need for RESs to use a utility logo in its marketing.' Also, in the area adjacent or near to MEC’s territory, there is the potential for customers to be confused about whether they are signing up for service from MEC or MES."

Regarding MidAmerican Energy Services's use of the MidAmerican name, the ICC said, "The above reasoning concerning a RES’s use of its utility affiliate’s logo in its marketing applies equally to any deceptive or misleading use of the utility name as prohibited by the Proposed Rule. The Commission finds that granting such a blanket exception to accommodate just one utility affiliate undermines the purposes of competition, and are contrary to public policy already established in favor of consumer protections against consumer confusion," the ICC said [emphasis by ICC]

Docket 15-0512

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