Consumer Advocate Presses For Limit on Receivables Purchased From Retail Suppliers Charging Variable Rates

In comments in an Illinois rulemaking concerning retail supplier sales and marketing (click here for background), the Citizens Utility Board proposed that the ICC open a proceeding to limit the receivables purchased from suppliers under the POR programs

"The amendment envisioned by CUB would limit the receivables purchased by the utility for variable rate supplier offers to no more than the utility/Illinois Power Agency price per kWh price-to-compare rate during the contemporaneous time period," CUB said

"Limiting the amount of the receivable purchased by the utility with regards to variable price supplier offers would send the correct economic signal to the market," CUB said

"Requiring RES [suppliers] to be accountable with regard to the amount of receivables their customers impose on all electric customers is a 'just and reasonable' means to protecting ratepayers from unnecessarily inflated rates. Since all ratepayers are made to pay for uncollectibles above and beyond the utility default price resulting from unregulated supplier offers, it is a just economic outcome to require a RES to have some economic responsibility for the offers and contracts it is entering into, and would send a more efficient economic price signal to the market," CUB said

Docket No. 15-0512