Nicor Gas has filed a plan with the Illinois Commerce Commissionthat would allow customers to continue to participate in thecompany’s Customer Select program until the ICC completes itsinvestigation of the program.

ICC temporarily blocked a proposed expansion of the program inSeptember until Nicor substantiates its customer benefits (seeDaily GPI, Sept. 21).

The Customer Select program, still in its pilot stage, allowscommercial customers and 15% of residential customers to choosetheir own natural gas suppliers, and Nicor wants all of its 1.9million Illinois customers to be able to apply for the programbeginning next year. However, the Citizens Utility Board (CUB), anonprofit utility watchdog group, said it had “concerns” about theway the three-year-old pilot was structured, and asked ICC toinvestigate.

ICC issued a suspension order Sept. 20 on the proposed ratesheets for the expansion for 105 days, and hopes to wrap up itsinvestigation before Nicor’s proposed expansion in early 2001. ICCalso agreed to look into customer complaints concerning misleadingadvertising and marketing agreements.

Nicor has to prove to ICC that its choice plan is “more thanjust a marketing exercise designed to shift customers to itsunregulated utility,” said Robert J. Kelter, CUB’s litigationdirector.

Kelter said that before the program is expanded, ICC will haveto regulate the service providers, implement affiliate rules andeducates customers. “We are hoping they do those things before theyexpand the pilot,” he said.

Under Nicor’s proposal to ICC last week, customers who wereeligible for the program earlier this year would still be given theopportunity to choose an alternative supplier during a sign-upperiod between January and March 2001. More than 122,000 customershad already signed up, which is close to 30% of those eligible.

In January 1998, the Customer Select pilot began offeringcustomers a choice in natural gas suppliers. Nicor continues torespond to service and emergency calls, deliver natural gas, readmeters and maintain the pipeline system. Those customers who choosenot to participate in the program may still buy and receive gasfrom Nicor.

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