Bills Capping Commercial, Residential Termination Fees Become Law

Two Illinois bills (HB 3766, SB 1312) addressing retail electricity termination fees have been approved by the governor and have become law

HB 3766, enacted as Public Act 99-0103, 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.

Additionally, SB 1312, enacted as Public Act 99-0107, provides 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."