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Floor Amendment To Retail Energy Bill Would Adopt Switch Block

April 30,2019



Filed floor amendment 002 to Illinois SB0651 would, among other things, allow customers to request a switch block on their account, and prohibit early termination fees for time-of-use products

As detailed in EnergyChoiceMatters.com's exclusive analysis (see details here), SB0651 is most notable for prohibiting retail suppliers from serving customers eligible for certain assistance programs, banning auto-renewals for rates exceeding the current rate or onto a variable plan from a fixed plan, and requiring disclosure of the Price to Compare in all marketing materials and on suppliers' bills.

Floor amendment 002 provides that, "Customers on a month-to-month variable rate or time-of-use product shall have the right to terminate their contract with the alternative retail electric supplier at any time without any termination fee."

Floor amendment 002 also would generally allow the utilities to discuss retail pricing information with the customers of retail suppliers (similar to a previously reported proposal from ComEd).

Notably, as part of such provision of floor amendment 002, the bill would allow customers to direct that the utility place a switch block on their account

Specifically, floor amendment 002 provides, notwithstanding anything to the contrary, an electric utility may:

(1) disclose the current utility electric supply price to a retail customer who takes electric power and energy supply service from an alternative retail electric supplier;

(2) disclose the supply price the customer is paying as reflected on the customer's bill, if known;

(3) furnish to a retail customer a list of frequently asked questions to be used by the retail customer in evaluating electric power and energy supply rate offers by alternative retail electric suppliers; this list may include, but is not limited to, the following: (A) length of the contract; (B) the price per kilowatt hour, and whether the contract price is fixed or variable, and if variable, the circumstances under which the rate may change; (C) whether penalties or early termination fees apply if the customer terminates the contract before the expiration of its term; and (D) whether the customer may be subject to any other adjustments, penalties, surcharges, or costs beyond the electric power and energy supply rate;

(4) provide to a retail customer education information published by the Office of Retail Market Development and the Office of the Attorney General regarding the selection and evaluation of electric power and energy supply rate offers by alternative retail electric suppliers; and

(5) place a restriction on a retail customer's account, at the customer's request, that prohibits any switching of the customer's electric power and energy supply service to an alternative retail electric supplier; the restriction shall only be removed at the customer's express direction to the utility.

Floor amendment 002 also provides that language concerning the Price to Compare, already proposed in the prior version of the bill as required in marketing materials, be included in the enrollment disclosures. Specifically, and enrollment cannot be submitted unless the supplier discloses that, "(Name of the alternative retail electric supplier) is not the same entity as your electric delivery company. You are not required to enroll with (name of alternative retail electric supplier). As of (effective date), the electric supply price to compare is currently (price in cents per kilowatt hour)."

Floor amendment 002 also adds new provisions to the TPV process, including that each disclosure made during the third-party verification must be made individually to obtain clear acknowledgment of each disclosure. For a TPV, "[t]he alternative retail electric supplier [sic] must be in a location where he or she cannot hear the customer while the third-party verification is conducted," the amendment states. After the initiation of the TPV process, "The alternative retail electric supplier shall not contact the customer after the third-party verification for a period of 24 hours unless the customer initiates the contact."

The amendment does tweak certain of the proposed requirements

For example, the bill's previously reported language, which essentially requires all marketing materials to disclose the PTC, would, under floor amendment 002, "does not apply to goodwill or institutional advertising."

Additionally, the previously reported ban on supplier service to low-income customers would apply if the customer received financial assistance in the last 12 months from either the Low Income Home Energy Assistance Program or, at the time of enrollment, is participating in the Percentage of Income Payment Plan (PIPP). Previously, the language stated the ban would apply if the customer had been eligible for PIPP in the preceding 12 months

Floor amendment 002 provides that any telemarketing solicitations that lead to a telephone enrollment must be recorded and retained for a minimum of 2 years. All telemarketing calls that do not lead to a telephone enrollment, but last at least 2 minutes, shall be recorded and retained for a minimum of 6 months. All inbound enrollment calls that lead to an enrollment shall be recorded, and the recordings shall be retained for a minimum of 2 years. An inbound enrollment call that does not lead to an enrollment, but lasts at least 2 minutes, shall be retained for a minimum of 6 months.

The provisions described above generally apply to both gas and electric suppliers

Floor amendment 002 includes new provisions concerning the use of utility logos by retail electric suppliers

The amendment provides that an alternative retail electric supplier shall not utilize the name of a public utility in any manner that is deceptive or misleading, including, but not limited to, implying or otherwise leading a customer to believe that an alternative retail electric supplier is soliciting on behalf of or is an agent of a utility. An alternative retail electric supplier shall not utilize the name, or any other identifying insignia, graphics, or wording that has been used at any time to represent a public utility company or its services, to identify, label, or define any of its electric power and energy service offers. An alternative retail electric supplier that is an affiliate of an Illinois public utility and that was doing business in Illinois providing alternative retail electric service on January 1, 2016 may continue to use that public utility's name, logo, identifying insignia, graphics, or wording in its business operations occurring outside the service territory of the public utility with which it is affiliated.

The amendment also provides that an alternative retail electric supplier agent shall obtain consent to enter multi-unit residential dwellings. Consent obtained to enter a multi-unit dwelling from one prospective customer or occupant of the dwelling shall not constitute consent to market to any other prospective customers in the dwelling without separate consent



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Illinois   Sales & Marketing  

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