Title 20 — Subtitle 30. Customer Deposits, Late Payment Charges, and Customers' Rights Pamphlet

The Public Service Commission of Maryland, in these regulations referred to as the “Commission”, declares that it is in the public interest for each utility to administer fairly and without discrimination a reasonable policy reflected by written regulations, in accordance with these regulations, which will permit an applicant for permanent nonresidential service to establish, or an existing nonresidential customer to reestablish, credit with the utility for the use of its service.

The Commission further declares that when it is necessary for an applicant or customer to make a cash deposit to establish or reestablish credit in accordance with these regulations, the making of this deposit is in the public interest because it avoids, to the extent practicable, the creation of a burden arising from uncollectible bills which would have to be borne ultimately by all the utility's ratepayers.

The Commission further declares that the essential ingredient in each utility's administration of its deposit policy, as expressed by these regulations, is the equitable and indiscriminate application of that policy to all applicants for service and customers throughout its service area without regard to the economic character of the area or any part of it, and that this deposit policy shall be predicated upon the credit risk of the applicant (or customer) without regard to the collective credit reputation of the area in which the applicant does business.

A utility may require each applicant for nonresidential service to establish credit in compliance with the methods and procedures listed in §B of this regulation.

Methods of Establishing Credit.

A utility may require an applicant for service who is a present or former nonresidential customer of that utility to reestablish credit under Regulation .02 of this chapter at the time of application if one of the following exists:

A nonresidential customer who has established credit and is receiving service but who fails to pay a bill by the expiration date of a termination of service notice, may be required by the utility to reestablish credit by depositing the amount prescribed in Regulation .04 of this chapter, in addition to paying the outstanding bill and a reasonable reconnection charge.

Except as prohibited by State or federal law, a utility may refuse to connect or may disconnect service for a former nonresidential customer unless the customer has paid or made satisfactory arrangements to pay any outstanding bill, or undisputed portion of a disputed bill, for prior nonresidential service.

A utility may not refuse service to a customer for nonpayment of an outstanding bill that is over 7 years old, unless the:

Amount of Deposit. The deposit required by the utility may not be less than $5, and it may not be more than the maximum estimated charge for service for two consecutive billing periods, or 90 days, whichever is less, or as may reasonably be required by the utility in cases involving service for short periods or special occasions.

Payment of Deposit. If requested by the applicant, the utility shall provide some means by which a deposit amount of $100 or more may be paid by the customer in installments over a period of at least 8 weeks. The customer shall be notified of this right at the time of the initial request for deposit. The provisions of this section do not apply to utilities providing telephone service.

Deposit Receipt. Each utility shall issue a receipt of deposit to each customer from whom a deposit is received, and shall provide means by which a depositor may establish his claim if his receipt is lost.

Interest on Deposits.

Payment of Interest. Interest shall be paid annually, if requested by the customer, or at the time the deposit is returned.

Cessation of Interest. The obligation to pay interest on a deposit shall cease upon:

Record of Deposit. Each utility shall keep records to show:

Record of Unclaimed Deposits. A record of each unclaimed deposit shall be maintained for at least 3 years, during which time the utility shall make reasonable efforts to return the deposit.

Unclaimed Deposits. Unclaimed deposits, with accrued interest, shall be credited to an appropriate account, or shall otherwise be disposed of in accordance with Commercial Law Article, Title 17, Annotated Code of Maryland.

Discontinuance of Service. Upon discontinuance of service, the utility, within 45 days, shall automatically refund the customer's deposit plus accrued interest, or the balance, if any, in excess of the unpaid bills including any penalties assessed for service furnished by the utility. A transfer of service from one premises to another within the service area of the utility may not be deemed a discontinuance of service within the meaning of these regulations.

Good Payment Record.

Establishment of Credit. The utility shall promptly return the deposit plus accrued interest at any time upon request if the customer's credit has been established in accordance with the methods specified in Regulation .02B of this chapter, provided the customer does not owe outstanding bills for the service and meets the criteria set forth in §B of this regulation.

Option of Utility. The utility may refund a deposit plus accrued interest, in whole or in part, earlier than the times prescribed in this regulation.

Appeal to Utility Supervisory Personnel. Each utility shall direct its personnel engaged in initial contact with an applicant for service, or customer seeking to establish or reestablish credit under the provisions of these regulations, to refer the applicant or customer, at his request, to supervisory personnel for further consideration of his problem.

Appeal to Commission Personnel. Each utility shall further direct this supervisory personnel to inform the applicant or customer who expresses dissatisfaction with the decision of the supervisory personnel, of his right to have the problem reviewed by the Commission, and shall furnish him with the business address and telephone number of the Commission.

The Public Service Commission of Maryland, in these regulations referred to as the “Commission,” declares that it is in the public interest for each utility to fairly and without discrimination administer a reasonable policy reflected by written regulations, in accord with these regulations, which will permit an applicant for permanent residential service to establish, or an existing residence customer to re-establish, credit with the utility for the use of its service.

The Commission further declares that when it is necessary for an applicant or customer to make a cash deposit to establish or re-establish credit in accord with these regulations, the making of the deposit is in the public interest because it avoids, to the extent practicable, the creation of a burden arising from uncollectible bills which would have to be borne ultimately by all the utility's rate payers.

The Commission further declares that the essential ingredient in each utility's administration of its deposit policy, as expressed by these regulations, is the equitable and indiscriminate application of that policy to all applicants for service and customers throughout its service area without regard to the economic character of the area or any part of it, and that this deposit policy shall be predicated upon the credit risk of the individual without regard to the collective credit reputation of the area in which he lives.

Except as provided in §C of this regulation, a utility may require each applicant for residential service to establish credit in compliance with the methods and procedures listed in §B of this regulation.

Methods of Establishing Credit.

Exemption for Individuals 60 Years Old or Older. An individual 60 years old or older applying only for residential service is exempt from any cash deposit requirement if the individual presents satisfactory proof of:

A utility may require an applicant for residential service who is a present or former residential customer of that utility to reestablish credit under Regulation .02 of this chapter at the time of the application if one of the following exists:

A residential customer who has established credit and is receiving service, but who fails to pay a bill by the expiration date of a termination of service notice, may be required by the utility to reestablish credit by depositing the amount prescribed in Regulation .04 of this chapter in addition to paying the outstanding bill and a reasonable reconnection charge, provided that any prior deposit paid by the customer has been refunded.

Amount of Deposit. The deposit required by the utility may not be less than $5 or more in amount than 2/12 of the estimated charges for service for the ensuing 12 months, except that an amount equal to 3/12 of the estimated charge for service for the ensuing 12 months will be permitted for those utilities which bill quarterly. If the actual billing is substantially different from the estimated charge for service, then the amount of the deposit may be adjusted to the applicable proportion of the actual billing.

Deposit Receipt. Each utility shall issue a receipt of deposit to each customer from whom a deposit is received, and shall provide means by which a depositor may establish his claim if his receipt is lost.

Interest on Deposits.

Payment of Interest. Interest shall be paid annually, if requested by the customer, or at the time the deposit is returned.

Cessation of Interest. The obligation to pay interest on a deposit shall cease upon one of the following events:

Record of Deposit. Each utility shall keep records to show:

Unclaimed Deposits. Unclaimed deposits, with accrued interest, shall be credited to an appropriate account, or shall otherwise be disposed of in accordance with Commercial Law Article, Title 17, Annotated Code of Maryland.

Payment of Deposit.

Discontinuance of Service. Upon discontinuance of service, the utility shall promptly and automatically refund the customer's deposit plus accrued interest, or the balance, if any, in excess of the unpaid bills for service furnished by the utility. A transfer of service from one premises to another within the service area of the utility may not be deemed a discontinuance of service within the meaning of these regulations.

Good Payment Record. If the customer has paid bills for service for the first 12 months of service following payment of his deposit without having had service discontinued for non-payment of bill or without having had more than two occasions in which a bill was not paid when it became due, and the customer is not then delinquent in the payment of his bills, the utility shall promptly and automatically refund the deposit plus accrued interest. If the customer has had service terminated for non-payment of his bill or had more than two past due bills for the period, the utility shall thereafter review the account every 12 months and shall promptly and automatically refund the deposit plus accrued interest after the customer has not had service terminated for non-payment of bill or bill or had more than two past due bills during the 12 months before any review and is not then delinquent in the payment of his bills.

Establishment of Credit. The utility shall promptly return the deposit plus accrued interest at any time upon request if the customer's credit has been established in accordance with the methods specified in Regulation .02B, provided the customer owes no outstanding bills for the service and during the last 12 consecutive months that service was provided has not had more than two occasions in which a bill was not paid within a reasonable period after it became due or had service terminated for non-payment of the bill.

Customers 60 Years Old or Older. A utility shall promptly refund the deposit plus interest of a present customer who is 60 years old or older provided the customer:

Option of Utility. At the option of the utility, a deposit plus accrued interest may be refunded, in whole or in part, at any time earlier than the times prescribed in this regulation.

Appeal to Utility Supervisory Personnel. Each utility shall direct its personnel engaged in initial contact with an applicant for service, or customer seeking to establish or re-establish credit under the provisions of these regulations to refer the applicant or customer, at his request, to supervisory personnel for further consideration of his problem.

Appeal to Commission Personnel. Each utility shall further direct the supervisory personnel to inform the applicant or customer who expresses dissatisfaction with the decision of the supervisory personnel, of his right to have the problem reviewed by the Commission and shall furnish him with the business address and telephone number of the Commission.

Residential Customers and Residential Cooperatives.

All Other Classes of Customers.

“Late payment charge” means an additional charge, over the net total cost of utility service provided, which is applied to any past-due bill under this regulation.

Bill Extender Plan.

An allowance shall be made for conflicting governmental and company holidays;

Consideration shall be given by the utilities for an extension of the due date when, within the discretion of the company, conditions warrant, such as hardship, claims of late delivery of bill, etc.

Service application procedures including a provision permitting more than one individual in a dwelling unit to request classification as a customer and to be listed on the service account;

Billing procedures, including the late payment charges;

Methods for customers to verify billing accuracy;

Explanation of the utility's fuel adjustment clause, or purchased gas clause, or both;

Explanation of seasonal rate differentials;

Customer payment policies, including a general summary of alternate payment plans and the Winter Heating Protection Program;

Security deposit policies;

The Termination Policy Statement as set forth in COMAR 20.31.01.06;

Inquiry, service, and complaint procedures;

Information on the Maryland Energy Assistance Program and on access to other programs to assist low-income customers;

Other pertinent information including the telephone number of the Consumer Affairs Division;

Information on the utility's bill extender plan;

The residential rate schedules available; and

For electric utilities and combination electric and gas utilities only:

Be mailed or, at the option of the utility and upon request by the customer, delivered by electronic means to each customer of the utility once each year during the month of August, September, or October;

Be delivered or mailed to each new customer of the utility when the new customer initiates service;

Be available at all times upon request; and

Indicate that it is being provided in accordance with the Commission's regulations.