Proposed Illinois Order Would Affirm Three-Day Rescission for Internet Enrollments

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March 7, 2011  

An Illinois ALJ would direct Ameren to revise its electric tariff with respect to the rescission period to apply a three day rescission period for internet enrollments of mass market customers, rather than the 10-day period provided for in the tariff, under a proposed order issued Friday (Docket 09-0460).

As only noted in Matters (12/15), BlueStar Energy Services had filed a complaint seeking a finding that Ameren's 10-day rescission period in its tariff for mass market customers conflicted with Section 453.40(a)(4) of the Administrative Code, which provides that residential customers may cancel an internet enrollment with an alternative retail electric supplier within three business days of entering into a contract. However, Ameren's tariff, when revised to include Purchase of Receivables, added a 10-day rescission period for mass market customers. BlueStar has since filed a similar complaint against ComEd (2/21).

"The Commission is inclined to agree with BlueStar that resolution of this matter is rather straightforward. Section 453.40(a)(4) provides that residential customers who enroll with an ARES through the internet, 'may cancel the enrollment within 3 business days after the Internet enrollment.' AIU's tariff language, however, provides that a residential customer, regardless of how it enrolled with the ARES, may cancel the enrollment with the ARES by making such a request to AIU 'within ten calendar days of the Company's processing of the enrollment.' These provisions are clearly inconsistent with regard to residential internet enrollments with an ARES," the ALJ said in the proposed order.

While Ameren, as well as Illinois Commerce Commission Staff, had argued that the 10-day rescission period properly resulted from a contested case, the ALJ said that the fact that the POR tariffs including the expanded rescission period were accepted following the conclusion of Docket Nos. 08-0619 et al., "is without consequence."

"The adoption of any tariff provision that is inconsistent with a rule must be considered an oversight. Allowing tariff provisions to override or 'trump' Commission rules simply because the tariff is more recent would upend the regulatory structure. Effective tariffs must be within the confines of existing Commission rules (absent a waiver granted under a particular rule). If a rule is in need of revision, the rulemaking process exists for that purpose," the ALJ said.

Even if the internet enrollment rescission period is later modified by the global rulemaking regarding consumer protections in Docket No. 09-0592, "any potential revision is not in the near future," the ALJ agreed.

"Accordingly, the Commission finds in favor [of] BlueStar. AIU must revise the inconsistent aspects of its electric tariffs in so far as they relate to internet enrollments by residential customers with ARES," the ALJ said.

The ALJ recognized that Ameren does not currently have a means of knowing how a residential customer enrolls with a supplier (whether it be by internet, telephone, or otherwise), and would thus direct BlueStar and Ameren, "to cooperate in developing a simple method of identifying internet enrollments."

The 10-day rescission period in the tariff would not be adjusted for non-internet enrollments under the proposed order.

The proposed order would direct Ameren to submit revised tariffs in compliance with any final order within 14 days of such order.

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