The Illinois Commerce Commission voted to approve a settlement agreement under which National Gas & Electric, LLC, an alternative retail electric supplier, agreed to pay $1.25 million in refunds to customers and $250,000 for energy assistance for low-income residents. National Gas & Electric (NGE) also agreed to a Commission Compliance Plan which includes a three-year ban on marketing and enrollments in Illinois, and remediation steps to ensure appropriate behavior upon reentry in the market. The agreement was reached and signed by Commission Staff, the Illinois Attorney General, the Citizen's Utility Board and NGE.
"The ICC is responsible for ensuring Illinois' retail electricity market remains competitive and takes very seriously the enforcement of state laws and rules governing the industry. This settlement agreement and compliance plan is another example of our commitment to protect consumers while fostering a healthy retail market," said ICC Executive Director Michael Merchant.
Customer refunds will be determined by multiplying the number of kilowatt-hours NGE flowed service to eligible customers by the refund amount per kilowatt-hour of service. Customers should expect to receive refund checks through the mail. As part of the agreement, NGE must hire an administrator, subject to approval by the Attorney General, to take all reasonable efforts to locate eligible customers, aid in the processing and mailing of checks, and ensure refunds are issued in a timely manner. NGE must also keep track of refund checks issued and cashed by customers and report back to the AG with the information every 90 days until December 2022. At the conclusion of this period, if refunds paid are less than the total refund amount, NGE must deposit the remaining funds into the State of Illinois Unclaimed Fund and provide the Attorney General with the names, telephone numbers and last known addresses of all eligible customers whose refund checks were not cashed.
NGE has also agreed to deposit $250,000 into the Department of Commerce and Economic Opportunity Low Income Home Energy Assistance Program which helps qualified low-income residents afford their home energy bills.
The Commission initiated Docket No. 18-1653 on October 18, 2018, to investigate allegations of misconduct by NGE in connection with its customer sales, solicitation, marketing and enrollment practices, policies, procedures, and materials. In a charging document, Commission Staff alleged NGE allowed sales agents to use the utility name in a deceptive and misleading manner; failed to provide customers with printed Minimum Contract Terms and Conditions consistent with the requirements of Part 412; failed to prevent agents from using deceptive materials to incent Illinois consumers to enroll with NGE and failed to effectively monitor the sales and marketing activities of its agents.
Without an admission of criminal, civil, or any other liability, NGE voluntarily agreed as part of the settlement to undertake steps outlined in the accompanying Compliance Plan. These terms apply to activities undertaken by NGE, whether by an employee or a vendor, contractor, or any third-party authorized to represent the company in Illinois.
In the event NGE fails to comply with any terms of settlement, Staff, CUB, or the AG may request the Commission reopen the docket.
Categories: Illinois, General