Illinois Adopts Final New Broker Rules

The Illinois Commerce Commission recently adopted as final new rules related to agents, brokers, and consultants (Docket 10-0733).

In June, the ICC sent revisions to Part 454 of the Administrative Code, relating to licensure and requirements for electric ABCs, to the Joint Committee on Administrative Rules. The Joint Committee raised no objections to the rules, and the Commission adopted them, without modification, after expiration of the second notice period.

The amended rules are effective November 1, 2011.

As previously reported, the adopted amendments implement statutory changes contained in P.A. 96-1385 regarding the applicability of the rules, the code of conduct, the reporting requirements, and Commission oversight.

As opposed the former anticipated remuneration disclosure required of ABCs, the amended rules require that ABCs disclose the, "total price per kilowatt-hour, and the total anticipated cost, inclusive of all fees or commissions received by the licensee, to be paid by the customer over the period of the proposed underlying customer contract."

In the event a person or entity required to be licensed pursuant to the ABC rules uses an electric supply usage estimate for a particular customer, the person or entity required to be licensed must use the same electric supply usage estimate for all service offers it presents to that particular customer.

ABCs must disclose if applicable, to all customers, prior to the customer signing a contract the fact that they will be receiving compensation from the supplier.

The new rules also make explicit that confidential protection may be sought for annual ABC reports, which are no longer required to include financial statements.

The new rules also do not compel the ICC to suspend an ABC's license for an initial violation of the ABC rules, as required previously.