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Regulator Moves To Require "Side By Side" Comparison of Rates Under Current Contract, Renewal Offer

September 28, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

As part of its first notice order concerning retail electric supplier marketing rules, the Illinois Commerce Commission is proposing to require a "side by side" comparison of current and new rates when a customer is provided a renewal offer or notice.

Adoption of a first notice order means the ICC will now submit the revisions to 83 Ill. Adm. Code 412 and 83 Ill. Adm. Code 453 to the Secretary of State to begin the first notice period required for rulemakings. The ICC will have to vote on the rules again before they are final.

For automatic renewals where the initial term of the contract was six months or more and where the contract automatically renews for a specified term of more than one month, the proposed rules require suppliers to send customers a separate renewal notice which includes, if the new contract’s terms differ from the existing contract, "a side-by-side comparison of the existing terms and the new terms."

Renewal offers provided to customers on contracts which do not automatically renew must also include the side-by-side comparison of the existing terms and the new terms

"New changed terms in a renewed contract (either automatically renewed or by customer confirmation) should not be hidden in a lengthy contract description. Rather, changes in key terms should be prominently and conspicuously disclosed in the renewal notices so that customers may fully understand to what they are agreeing," the ICC said

In addition to a mailed (or emailed if agreed to by the customer) automatic renewal notice, the proposed rules provide that, for auto-renewals, suppliers shall also call customers twice concerning the upcoming automatic renewal (except in cases where the supplier has no record of the customer's phone number), providing information included in the written notice, including the comparison of current and new rates.

The provisions described herein only apply to residential and small commercial customers

Docket 15-0512

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