State House wants Limits on Utilities' Bill Collection Practices

Ameren, a utility company that provides power to Illinois, is having its collection activities curtailed by the Illinois House.  It’s the latest action the state has taken against the electricity provider.

Illinois is in rate-relief talks with Ameren and ComEd.  Under new rate structures, some Illinois residents saw their energy bills triple in the last year.  In the meantime, while these talks continue, the Illinois House wanted to make sure that energy companies like Ameren do not lean heavily on customers who are falling behind on their electric bills.

The move Illinois is seeking to make is requiring utility companies to be governed by the same laws that the state has put in place for traditional, stand-alone collection agencies.  Those include prohibitions on late-night phone calls, calling debtors' employers and falsely threatening legal action.

"I want to ensure ... that those types of collection techniques, which are not permitted for collection agencies, will also not be permitted for public utilities," said Rep. George Scully, D-Flossmoor, sponsor of the legislation.

The legislation has a “guilty before proven” feel to it.  Scully was forced to admit that he didn't know of any instances in which the utilities were engaging in those activities. He said the legislation was meant to ensure that such tactics weren't used on consumers as the Legislature continued threatening to freeze and roll back Ameren's rates.

Both Ameren and ComEd raised their rates dramatically after Illinois lifted almost a decade of rate controls. The utilities say the increases were necessary to cover their costs after years of artificially low rates, but critics say those rates jumped more than was justifiable.  It certainly seems to beggar belief that Ameren and ComEd were limping along on the brink of financial ruin for most of the last 10 years.