Illinois Commerce Commission adopts new sales, marketing rules for alternative retail electricity suppliers

The Illinois Commerce Commission (ICC) recently adopted new rules regulating alternative retail electricity suppliers’ (ARES) sales and marketing that aim to enhance consumer protection.

“This change represents a major victory for the public interest and all stakeholders by ensuring consumers have clear information to make good choices regarding their energy needs,” ICC Chairman Brien J. Sheahan said. “Adoption of these rules is the culmination of a collaborative effort that began in 2014.”

Following the “polar vortex” winter of 2013-2014, the Commission’s Consumer Services Division experienced a sharp increase in complaints from the public about the marketing practices of certain retail electric suppliers.

The rules establish standardized contract requirements and require a Uniform Disclosure Statement for all retail electric supplier solicitations.

They also require suppliers to inform customers whether rates will vary over time or are fixed, disclose changes in rates to customers in advance, and provide more detailed information about green or environmentally friendly offers.

The ICC also expanded disclosure and verification of sales to all in-person marketing.

Suppliers are required to record and retain all telemarketing sales calls, including in-bound calls, and are prohibited from using utility names and logos in the territory of the electric utility. The rules also include new restrictions regarding solicitation in multiunit residences.

The new rules also improve the Commission’s access to the tool kit that suppliers use to manage and control their marketing operations.

“Although these rules epitomize the Commission’s commitment to fostering a robust competitive market, while making sure customers are well-informed and protected from bad actors, our job does not end here,” ICC Executive Director Cholly Smith said. “Now begins the process of working with industry leaders and stakeholders to ensure uniform implementation across the board.”

The new rules, which amend Part 412 of the Illinois Administrative Code, take effect Nov. 1.