State Opens New Rulemaking On Retail Marketing, Sales Rules

The Illinois Commerce Commission has opened a new rulemaking proceeding to address the service obligations, sales and marketing practices of Alternative Gas Suppliers

The ICC noted that the Commission recently amended 83 Ill. Adm. Code 412 and 83 Ill. Adm. Code 453, "incorporating best practices in the sales and marketing in the electric retail market, to protect consumers and assist with customer disputes."

"The Commission’s recent successful undertaking in amending the rules governing Alternative Retail Electric Suppliers to incorporate additional consumer protections supports a similar undertaking with respect to Alternative Gas Suppliers," the ICC said in opening the gas rulemaking

Accordingly, the ICC opened a proceeding to consider the making of rules to address the service obligations, sales and marketing practices of Alternative Gas Suppliers

The ICC directed that workshops be held with the goal of having all interested parties reach a consensus on proposed rules, or parts thereof

The ICC directed that Staff, within 30 days, present a draft proposal for discussion at the workshops. Workshops should not extend beyond 75 days of the distribution of the draft proposal, unless at the end of this period the hearing examiner believes that additional workshops will result in a full stipulation on the proposed rules by the parties

As previously reported, the ICC originally intended to adopt, in its new electric rules, the requirement for double verification (written LOA and TPV) for all in-person sales. However, after such provision was struck by JCAR, the electric rules ultimately adopted by the ICC did not include double verification

As previously reported, key electric market reforms (which may be proposed for the gas market) which survived the JCAR process without revision included:

• Requiring electric suppliers send customers a separate written notice when a variable rate will increase by at least 20%. Under the second notice order, "variable rate" is defined as meaning, "the charge for electric power and energy service changes at any time during the term of the contract, but does not change more than once per month." The second notice order stated, "If a residential variable rate customer's rate increases by more than 20% from one monthly billing period to the next, the RES shall send a separate written notice to the customer, informing the customer of the upcoming rate change." The second notice order defined "written" as meaning a hard copy, and the rules provide that an electronic copy satisfies the requirement for "written" notice so long as both RES and customer have agreed to electronic communication.

• Requiring electric suppliers to provide 12 months of pricing history for a variable rate offer (an offer that can change monthly)

• Limiting electric door-to-door marketing to 9 a.m. to 7 p.m. or dusk, whichever comes first.

• Requiring an electric supplier that promises savings to provide a written statement to the customer detailing such a claim.

Docket 17-0857