Zahn v. North American Power & Gas, LLC
72 N.E.3d 333
| Ill. | 2016Background
- Peggy Zahn, a residential electricity customer, alleged she was overcharged by North American Power & Gas, LLC (NAPG), an alternative retail electric supplier (ARES), after switching from Commonwealth Edison.
- Zahn sued in federal district court under diversity jurisdiction for consumer fraud, breach of contract, and unjust enrichment; the district court dismissed for lack of subject-matter jurisdiction.
- The Seventh Circuit certified the question whether the Illinois Commerce Commission (ICC) has exclusive jurisdiction over "reparation" claims (as defined in Sheffler) brought by residential consumers against ARESs.
- ARESs are expressly excluded from the statutory definition of "public utility" and are licensed nonutilities whose prices are generally governed by contract rather than ICC rate-making.
- The Public Utilities Act grants the ICC exclusive original jurisdiction over reparations claims against public utilities (220 ILCS 5/9-252), but the statute does not expressly say the ICC has exclusive jurisdiction over claims against ARESs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the ICC has exclusive original jurisdiction over a Sheffler-style "reparation" claim by a residential consumer against an ARES | Zahn: Because ARESs are not "public utilities" and the statute does not explicitly grant the ICC exclusive jurisdiction to order reparations against ARESs, courts retain jurisdiction | NAPG: The statutory scheme and ICC regulatory authority over ARESs show legislative intent to vest exclusive jurisdiction in the ICC for such claims | Held: No. The ICC does not have exclusive original jurisdiction; Illinois circuit courts have subject-matter jurisdiction to hear these claims |
Key Cases Cited
- Sheffler v. Commonwealth Edison Co., 2011 IL 110166 (distinguishes reparations claims against public utilities subject to ICC rate jurisdiction)
- J&J Ventures Gaming, LLC v. Wild, Inc., 2016 IL 119870 (statutory scheme must clearly show legislative intent to divest courts of jurisdiction)
- Commonwealth Edison Co. v. Illinois Commerce Comm’n, 328 Ill. App. 3d 937 (2002) (ARES characterized as nonutilities licensed to sell retail electricity)
- Local 777 v. Illinois Commerce Comm’n, 45 Ill. 2d 527 (1970) (purpose of Public Utilities Act to ensure adequate utility service at reasonable cost)