Bill Capping Commercial, Residential Termination Fees Sent To Governor

An Illinois bill (HB 3766) which caps electric early termination fees for both residential and small commercial customers has been sent to the Governor.

HB 3766 provides that for any electric contract renewed or entered into on and after its effective date, any early termination fee or penalty shall not exceed $50 total for residential customers and $150 for small commercial retail customers as defined in Section 16-102 of the Public Utilities Act, regardless of whether or not the contract is a multiyear contract

As defined by the PUA, small commercial retail customer means those nonresidential retail customers of an electric utility consuming 15,000 kilowatt-hours or less of electricity annually in its service area.

A separate bill, SB 1312, would further amend termination fee law in Illinois. SB 1312 would provide that the caps on early termination fees as set forth in HB 3766 shall apply only to early termination fees and penalties for early termination of electric service, and that such caps, "shall not apply to charges or fees for devices, equipment, or other services provided by the utility or alternative retail electric supplier."

SB 1312 has passed both houses but has not yet been sent to the governor.