CUB calls for probe of Illinois power market
June 15, 2014 | By
Barbara Vergetis Lundin
The City of Chicago and the Citizens Utility Board (CUB) has formally requested a probe of the Illinois electric market. The move is unprecedented, prompted by reports of confusing offers from alternative suppliers, misleading pitches, and prices up to six times higher than the utility rate. The petition calls on the Illinois Commerce Commission (ICC) to investigate whether suppliers are complying with price-transparency provisions in Illinois' Public Utilities Act (PUA), which requires companies to provide customers with "written information that adequately discloses, in plain language, the prices, terms and conditions" of their offers. Last month, CUB warned consumers about the highest rates ever seen from unregulated power suppliers in Illinois. The city's Department of Business Affairs and Consumer Protection (BACP) is actively investigating a number of consumer complaints and will prosecute those companies found defrauding consumers. "Many Illinois consumers want to be able to shop for a power supplier, but complaints suggest a disturbing trend of marketing abuses that hit customers hard in their pocketbooks," CUB Executive Director David Kolata said. "This petition is a first step to reform Illinois' power market and protect consumers from needlessly confusing, less-than-transparent offers." Since 2010, more than 3 million Illinois consumers have switched to companies other than the regulated utilities (Commonwealth Edison or Ameren Illinois). From January through April 2014, CUB saw a 115 percent increase in complaints/inquires about unregulated electricity suppliers, compared with the same period in 2013. Most complaints were questions about power offers -- reflecting confusion in the market. The Illinois Commerce Commission (ICC) is expected to rule soon on whether to open an investigation. If it moves forward, the ICC has the authority to order a supplier to correct any violations of the Public Utilities Act. Non-compliant companies face penalties of up to $30,000 per day until the violation is corrected and possible revocation of their certifications to conduct business in the state. For more:
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