# COMAR Title 20 — Public Service Commission

## Subtitle 51 — Electricity Suppliers

### Chapter 01 — General Provisions

**Authority:** Public Utilities Article, §§2-113, 2-121, 4-308, and 7-507, Annotated Code of Maryland

**Administrative History:** Effective date: September 1, 2003 (30:17 Md. R. 1204)

**Administrative History:** Regulation .02B amended effective April 11, 2005 (32:7 Md. R. 684); September 15, 2014 (41:18 Md. R. 1010); March 7, 2022 (49:5 Md. R. 366); July 10, 2023 (50:13 Md. R. 513)

#### Regulation .01 Scope.

*COMAR 20.51.01.01*

Except for an electric company providing standard offer service as defined in Public Utilities Article, §7-501, Annotated Code of Maryland, or a municipal electric utility serving customers solely in its distribution territory, this subtitle applies to all electricity suppliers.

#### Regulation .02 Definitions.

*COMAR 20.51.01.02*

A. In this subtitle, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Administrator” means the person appointed as administrator for a qualified offshore wind project under COMAR 20.61.06.09.

  (1-1) “Affiliate” means a person that directly or indirectly, or through one or more intermediaries, controls, is controlled by, is under common control with, or has any economic interest in another person.

  (2) Aggregator.

    (a) “Aggregator” means an entity or an individual that acts on behalf of a customer to purchase electricity.

    (b) “Aggregator” does not include:

      (i) An entity or individual that purchases electricity for its own use or for the use of its subsidiaries or affiliates;

      (ii) A municipal electric utility serving only in its distribution territory; or

      (iii) A combination of governmental units that purchases electricity for use by the governmental units.

  (3) “Applicant” means a person applying for an electricity supplier license.

  (4) “Application” means a written request for an electricity supplier license.

  (5) “Broker” means an entity or individual that acts as an agent or intermediary in the sale and purchase of electricity but does not take title to electricity.

  (6) “Commission” means the Public Service Commission of Maryland.

  (7) “Competitive billing service” means the:

    (a) Invoicing for electricity supply or electricity supply services to a retail customer; and

    (b) Processing of payment for electricity supply or electricity supply services to a retail customer.

  (8) “Contract for energy assistance households” means a residential retail energy supply contract that meets the legal requirements of Public Utilities Article, §4-308, Annotated Code of Maryland, and any other applicable requirements in the Public Utilities Article in connection with a supplier’s supply service for customers who are part of an energy assistance household.

  (9) “Debt service coverage” means a ratio of cash flow dedicated to pay a specific debt to the total amount of debt payments required to be made.

  (10) Electric Company.

    (a) “Electric company” means a person that physically transmits or distributes electricity in the State to a retail electric customer.

    (b) “Electric company” does not include:

      (i) An owner/operator that holds ownership in and manages the internal distribution system serving a building and supplies electricity and electricity supply services solely to occupants of the building for use by occupants;

      (ii) A lessee/operator that holds a leasehold interest in and manages the internal distribution system serving a building and supplies electricity and electricity supply services solely to occupants of the building for use by occupants;

      (iii) Any person that generates on-site generated electricity; or

      (iv) A person that transmits or distributes electricity within a site owned by the person or person's affiliate that is incidental to a primary landlord-tenant relationship.

  (11) Electricity Supplier.

    (a) “Electricity supplier” means a licensed person that:

      (i) Sells electricity, electricity supply services, competitive billing services, or competitive metering services; or

      (ii) Purchases, brokers, arranges, or markets electricity or electricity supply services for sale to a retail electric customer.

    (b) “Electricity supplier” includes an electric company, an aggregator, a broker, and a marketer of electricity, including by means of supplier-consolidated billing.

    (c) “Electricity supplier” does not include:

      (i) An owner/operator that holds ownership in and manages the internal distribution system serving a building, and supplies electricity and electricity supply services solely to occupants of the building for use by the occupants;

      (ii) A lessee/operator that holds a leasehold interest in and manages the internal distribution system serving a building, and supplies electricity and electricity supply services solely to occupants of the building for use by the occupants; or

      (iii) A person that generates on-site generated electricity.

  (12) “Electricity supply services” means the retail procurement of:

    (a) An electricity supplier;

    (b) Metering, billing, including supplier-consolidated billing under Subtitle 53 of this title or meter data management services; or

    (c) Other competitive services traditionally provided by an electric company.

  (13) “Energy assistance household” means that the Office of Home Energy Programs found that the service address or household associated with the utility account qualified for an electric assistance program during the current or previous fiscal year. For a utility that provides both gas and electric service, an energy assistance household means that the Office of Home Energy Programs found that the service address or household associated with the utility account qualified for an electric or gas assistance program during the current or previous fiscal year.

  (14) “Energy assistance program” means the following programs administered by the Maryland Office of Home Energy Programs by which a customer receives financial assistance paying their electricity utility bills, which includes but is not necessarily limited to:

    (a) The Maryland Energy Assistance Program;

    (b) The Electric Universal Service Program; and

    (c) The Arrearage Retirement Assistance Program.

  (15) “Fiscal year” means the 12-month period that begins on July 1 of a calendar year and ends June 30 of the next calendar year.

  (16) “Independent system operator” means an entity authorized by the Federal Energy Regulatory Commission to control a regional transmission grid.

  (17) “License” means the authority granted by the Commission to a person to do business as an electricity supplier.

  (18) “Marketer” means a person that purchases and takes title to electricity as an intermediary for sale to a customer.

  (19) “Negative stockholders' equity” means total assets are less than the sum of total liabilities, preferred stock, and intangibles.

  (20) “Net income” means sales less costs incurred from operations.

  (21) “Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, partnership, firm, association, corporation, or other entity.

  (22) “Positive current working capital” means current assets exceed current liabilities.

  (23) “Positive stockholders' equity” means total assets exceed the sum of total liabilities, preferred stock, and intangibles.

  (24) “Regional transmission operator” means a person that performs the same transmission system coordination functions as an independent system operator.

  (25) Retail Electric Customer.

    (a) “Retail electric customer” means a purchaser of electricity for end use in the State.

    (b) “Retail electric customer” does not include:

      (i) An occupant of a building in which the owner/operator or lessee/operator manages the internal distribution system serving the building and supplies electricity and electricity supply services solely to occupants of the building for use by the occupants; and

      (ii) A person that generates on-site generated electricity, to the extent the on-site generated electricity is consumed by that person or its tenants.

  (26) “Standard offer service” has the meaning stated in Public Utilities Article, §7-501, Annotated Code of Maryland.

  (27) “Supplier-consolidated billing (SCB)” means a form of competitive billing service in which a gas or electricity supplier is authorized by the Commission to render a bill to a retail gas or electric customer that includes both the supplier charges and the gas or electric company’s regulated charges.

  (28) “System transmission operator” means a person that performs the same transmission system coordination functions as an independent system operator.

### Chapter 02 — Administrative Provisions

**Authority:** §§2-113, 2-121, 4-308, 5-101, 7-507, and 7-511, Annotated Code of Maryland

**Administrative History:** Effective date: September 1, 2003 (30:17 Md. R. 1204)

**Administrative History:** Regulation .01 amended effective March 7, 2022 (49:5 Md. R. 366)

**Administrative History:** Regulation .02B amended effective April 11, 2005 (32:7 Md. R. 684); September 15, 2014 (41:18 Md. R. 1010); March 7, 2022 (49:5 Md. R. 366)

**Administrative History:** Regulation .02C, D adopted effective April 11, 2005 (32:7 Md. R. 684)

**Administrative History:** Regulation .02E, F adopted effective March 7, 2022 (49:5 Md. R. 366)

**Administrative History:** Regulation .03A amended effective July 10, 2023 (50:13 Md. R. 513)

**Administrative History:** Regulation .07A amended effective March 7, 2022 (49:5 Md. R. 366)

**Administrative History:** Regulation .08 amended effective April 11, 2005 (32:7 Md. R. 684); March 7, 2022 (49:5 Md. R. 366)

**Administrative History:** Regulation .08K adopted effective September 15, 2014 (41:18 Md. R. 1010)

**Administrative History:** Regulation .10 adopted effective July 10, 2023 (50:13 Md. R. 513)

#### Regulation .01 Electricity Supplier License Required.

*COMAR 20.51.02.01*

A. A person may not engage in the business of an electricity supplier in the State without obtaining a license from the Commission.

B. A person is limited by the terms of the license issued by the Commission.

C. A license is valid unless suspended or revoked by the Commission.

D. A license issued under this chapter may not be transferred without prior approval of the Commission.

#### Regulation .02 Application Requirements.

*COMAR 20.51.02.02*

A. A person applying for an electricity supplier license or to transfer an existing license shall file an application on the form provided by the Commission.

B. The application shall contain at least the following information:

  (1) The technical and managerial competency of the applicant;

  (2) A statement indicating compliance with all applicable requirements of the:

    (a) Federal Energy Regulatory Commission; and

    (b) Any independent system operator, regional transmission operator, or system transmission operator to be used by the applicant;

  (3) A statement of compliance with:

    (a) Applicable federal and State consumer protection laws; and

    (b) Environmental laws and regulations relating to the generation of electricity;

  (4) Financial documents as follows:

    (a) One of the following:

      (i) Balance sheets and income statements for the two most recent 12-month periods for which information is available;

      (ii) If the applicant has not been in existence for at least two-12 month periods, balance sheets and income statements for the life of the business; or

      (iii) If a parent corporation or other person undertakes to ensure the financial integrity of the applicant, the parent corporation's or other person's balance sheets and income statements, for at least the two most recent 12 month periods, together with documentation of the undertaking;

    (b) Credit reports or ratings prepared by a nationally recognized statistical rating organization regarding the applicant's payment and credit history, to the extent available or allowed;

    (c) A current long-term bond rating, or other senior debt rating, if available;

    (d) Proof that the applicant has met the credit requirements of PJM Interconnection, LLC, if the applicant has done so, and a detailed description of any credit security requirements PJM Interconnection, LLC has imposed upon the applicant; or

    (e) Other evidence of financial integrity the applicant wishes to provide for the Commission's consideration;

  (5) A certificate from:

    (a) The state under which the applicant's business is formed, indicating that the applicant is in good standing and qualified to do business in the state of formation; and

    (b) The Maryland Department of Assessments and Taxation indicating that the applicant is qualified to do business in the State, if the business of the applicant is formed under the laws of a state other than Maryland;

  (6) An affidavit of tax compliance, including local taxes and surcharges;

  (7) If the applicant provides competitive billing services:

    (a) A statement of compliance with any local licensing and bonding requirement; and

    (b) A copy of the agreement between the electric company and the applicant that:

      (i) Details the reciprocal responsibilities for collection and ownership of accounts receivable; and

      (ii) Prohibits the electric company from commencing collection or service termination action of any kind against a retail customer for nonpayment of utility charges billed by the electricity supplier unless the retail customer fails upon request to provide evidence of payment to the electricity supplier of the utility charges;

  (8) If the applicant intends to collect a deposit or prepayment from a retail customer, a bond as required under COMAR 20.51.03.03 or similar instrument approved by the Commission;

  (9) If applicable, a certificate of compliance with the provisions of the Labor and Employment Article, Title 9, Annotated Code of Maryland, relating to Maryland Workers' Compensation;

  (10) A statement confirming that upon the Commission granting a license to the electricity supplier under Regulation .09 of this chapter, the electricity supplier will notify each of the administrators appointed under COMAR 20.61.06.09 of its name, contact details and any other relevant administrative details that an administrator may require in order to efficiently invoice such electricity supplier as required by COMAR 20.61.06.11; and

  (11) A statement confirming that the applicant will not offer or provide supplier-consolidated billing without Commission licensing that authorizes the provision of supplier-consolidated billing.

C. An applicant seeking to act solely as a broker or aggregator of electricity supply and electricity supply services shall submit a $10,000 bond in the form described in Regulation .08G of this chapter.

D. An applicant who provides financial documents under §B(4)(a) of this regulation shall provide audited balance statements, if available.

E. In addition to the requirements of §§A—D of this regulation, an applicant seeking to provide supplier-consolidated billing shall, at a minimum, provide the following:

  (1) Certification that the applicant will comply with all laws and regulatory requirements for Maryland bills that contain regulated utility charges and retail energy charges;

  (2) Certification that the applicant will comply with all applicable statutes and regulatory requirements and maintain the following functions:

    (a) Call center operations;

    (b) Complaint resolution procedures; and

    (c) Billing, credit, and collection procedures;

  (3) Certification that the applicant will coordinate with the electric company to exchange information and data using Statewide uniform formats and standards approved by the Commission when engaging in supplier-consolidated billing in the electric company's service territory;

  (4) Proof of an ongoing quality assurance process that documents the accuracy of customer bills; and

  (5) Such additional information as the Commission may require.

F. A licensed electricity supplier that seeks to perform supplier-consolidated billing shall apply to amend its authority under the terms of this subtitle.

#### Regulation .03 Number of Copies; Service.

*COMAR 20.51.02.03*

A. An applicant shall file an application with the Commission.

B. In addition to filing the application with the Commission, the applicant shall simultaneously provide a copy of the completed application to the Maryland Office of People's Counsel, along with the supporting documentation and any supplemental or updated information.

#### Regulation .04 Material Change in Application Information.

*COMAR 20.51.02.04*

An applicant shall immediately inform the Commission of any material change in the information provided in the application during the application review process.

#### Regulation .05 Fees.

*COMAR 20.51.02.05*

When the initial application is filed, the applicant shall pay a nonrefundable filing fee, as specified by the Commission in the application form.

#### Regulation .06 Accuracy of Information.

*COMAR 20.51.02.06*

A. An applicant who submits misleading, incomplete, inaccurate information or fails to provide the updated information required under COMAR 20.51.03.01 may be penalized under the Public Utilities Article, Annotated Code of Maryland.

B. A penalty under §A of this regulation may include the:

  (1) Denial of an electricity supplier license;

  (2) Revocation or suspension of a license issued under Regulation .09 of this chapter;

  (3) Imposition of a civil penalty of up to $10,000 per violation;

  (4) Imposition of a moratorium on adding or soliciting additional customers; or

  (5) Any other action the Commission considers appropriate.

C. The Commission shall consider, in determining the amount of the civil penalty imposed under §B(3) of this regulation, the:

  (1) Number of previous violations of any provision of Commission law or regulations;

  (2) Gravity of the current violation; and

  (3) Good faith of the electricity supplier or person charged in attempting to achieve compliance after the Commission provides notice of the violation.

#### Regulation .07 Classification of Information.

*COMAR 20.51.02.07*

A. An applicant may designate answers or documents proprietary or confidential only if there is a valid legal or factual basis supporting the designation.

B. Applicant answers or documents designated as proprietary or confidential shall be reviewed by the Commission.

C. Following review, the Commission shall classify answers or documents identified as proprietary or confidential by the applicant as either public, proprietary, or confidential.

D. Only answers identified as public may be inspected by the general public.

#### Regulation .08 Financial Integrity.

*COMAR 20.51.02.08*

A. Each applicant for a license shall file audited financial documents as listed in Regulation .02B(4) of this chapter.

B. The Commission shall consider an applicant to have acceptable financial integrity if it:

  (1) Receives an unsecured credit allowance greater than $2,000,000 from PJM Interconnection, LLC, and provides documentation of the credit allowance; or

  (2) Demonstrates financial integrity under §D of this regulation.

C. Any demonstration of financial integrity under §D of this regulation shall be based on the most recent fiscal year-end and, if available, quarterly audited, financial statements of the applicant, from the parent corporation or other person that has undertaken to guarantee the applicant's financial integrity.

D. If the applicant has less than 12 months of financial history, review of financial integrity shall be based on an evaluation of indicators including:

  (1) Company growth;

  (2) Customer base;

  (3) History of attracting capital;

  (4) Productivity of assets; and

  (5) Margin of safety for creditors.

E. An applicant for a license shall demonstrate financial integrity by having:

  (1) One of the following:

    (a) Positive working capital; or

    (b) Debt service coverage equal to or greater than two times the annual interest costs;

  (2) One of the following:

    (a) Positive stockholder equity; or

    (b) Positive working capital and a dedicated source of additional financing including a line of credit, a pending stock issuance or debt issuance, or other committed source of financing; and

  (3) One of the following:

    (a) Positive net income; or

    (b) Stockholder equity equal to or greater than two times the amount of net loss.

F. If an applicant, a parent corporation, or other person who has undertaken to guarantee the applicant's financial integrity, cannot satisfy the financial integrity tests specified in §E of this regulation, or has not received an unsecured credit allowance greater than $2,000,000 from PJM Interconnection, LLC, the applicant, parent corporation, or other person who has undertaken to guarantee the applicant's financial integrity shall provide the Commission with security in the form of the bond described in §H of this regulation, or other security as required under §I of this regulation.

G. Bonding; Financial Guarantees.

  (1) A supplier seeking to be licensed to provide supplier-consolidated billing shall provide and maintain bonding or financial guarantees with the Commission in the amount of $500,000.

  (2) The total financial guarantee required under this regulation may include the bond or other form of financial guarantee submitted as proof of financial integrity under §I of this regulation.

  (3) A supplier seeking to be licensed to provide supplier-consolidated billing services or providing supplier-consolidated billing services may petition the Commission to lower the total bonding or financial guarantee requirement of $500,000.

H. A bond required under §F or G of this regulation shall:

  (1) Identify the Maryland Public Service Commission as the sole beneficiary;

  (2) Be continuous and subject to cancellation on 60 days notice to the Commission unless, for good cause shown, the Commission orders that the bond be maintained;

  (3) Except for an applicant under Regulation .02C or .08G of this chapter, be in the amount of $250,000;

  (4) Contain the following language or similar language acceptable to the Commission: "Payment under this bond shall be due if:

    (a) The Commission determines that (electricity supplier name) is financially insolvent or unable to meet its obligations as a licensed electricity supplier in Maryland; or

    (b) Ordered by a Maryland court after a person who has obtained a judgment against a licensed supplier has previously attempted to collect the judgment through all other means available to the court";

  (5) Permit the Commission to direct that the proceeds of the bond be paid or disbursed to satisfy the electricity supplier's financial obligations to the Commission or other Maryland governmental entity;

  (6) Permit a Maryland court to direct proceeds of the bond be paid to a person that has obtained a judgment against a licensed supplier and has previously attempted to collect the judgment through all other means available to the Court;

  (7) Permit payment of obligations up to the amount of the bond; and

  (8) Be obtained from a company licensed in Maryland to write surety types of insurance.

I. Proof of Financial Integrity.

  (1) For proof of financial integrity, an applicant may rely upon a guarantee provided by a parent corporation or other person.

  (2) If a parent corporation or other person undertakes to guarantee the financial integrity of the applicant, the parent corporation or other person shall supply the information and meet the financial standards that would otherwise be required of the applicant.

  (3) An applicant may submit an instrument similar to a bond, or other financial surety or guarantee, in the amount of $250,000, for the Commission's consideration.

  (4) The Commission may accept an alternate form of financial guarantee in place of the bond required under Regulation .02C of this chapter or §F of this regulation.

J. Maintaining a Bond as Proof of Financial Integrity.

  (1) At the request of an electricity supplier, upon expiration or withdrawal of a bond submitted under this regulation, or on a periodic basis, the Commission shall review the financial information submitted by a licensed electricity supplier.

  (2) Based on new or additional information submitted by the electricity supplier, the Commission may find that the electricity supplier meets the Commission's financial integrity standards and no longer needs to provide a bond.

  (3) In the absence of a Commission finding that a bond is no longer necessary, a supplier shall renew or replace a bond before the expiration of the bond.

  (4) Failure to maintain a valid bond required under this regulation may result in the suspension or revocation of an electricity supplier's license.

K. A licensed electricity supplier may seek to withdraw a bond or other form of financial integrity guarantee provided to the Commission, if:

  (1) PJM Interconnection, LLC grants the electricity supplier an unsecured credit allowance in an amount greater than $2,000,000; and

  (2) The supplier provides documentation of the credit allowance to the Commission.

L. The Commission may in its discretion require that an electricity supplier that will have an OREC purchase obligation deliver to the Commission, no later than 30 days prior to the year in which the offshore wind energy RPS takes effect, a performance bond or other form of collateral support in such amounts, from such providers and in such form as shall be determined by the Commission to secure the payment obligations of the electricity supplier under COMAR 20.61.06.

#### Regulation .09 Granting a License.

*COMAR 20.51.02.09*

After review, the Commission may grant a license on finding that the issuance will promote a competitive retail electricity supply and electricity supply services market.

#### Regulation .10 Approving a Contract for Energy Assistance Households.

*COMAR 20.51.02.10*

A. For contracts signed on or after July 1, 2023, an electricity supplier may not serve a customer in an energy assistance household except pursuant to a Commission-approved contract for energy assistance households.

B. An electricity supplier applying for approval of a contract for energy assistance households shall file on a form provided by the Commission.

C. The submission shall include:

  (1) The identity of the applicant;

  (2) The service territories and commodities applied for;

  (3) A copy of the contract and contract summary form that will be used for sales to energy assistance households;

  (4) A description of the price a customer will pay, as it will appear on the customer contract;

  (5) For any months where the utility standard offer service rate is not known at the time of application, a description of how the supplier will ensure that the retail supplier’s rate for energy assistance households remains at or below the utility standard offer service rate;

  (6) A commitment for the entirety of the term of the supply contract to charge at or below the utility standard offer service rate;

  (7) A commitment to follow the terms of Public Utilities Article, §4-308, Annotated Code of Maryland; and

  (8) A commitment to uniquely identify the offer in such a way as to distinguish the Commission-approved contract for energy assistance households from other supply products the supplier may be offering for sale in Maryland.

D. The Commission may approve a supplier’s application for a contract for energy assistance households subject to any conditions the Commission determines appropriate.

### Chapter 03 — Electricity Supplier License Requirements

**Authority:** Public Utilities Article, §§2-113, 2-121, and 7-507, Annotated Code of Maryland

**Administrative History:** Effective date: September 1, 2003 (30:17 Md. R. 1204)

**Administrative History:** Regulation .01 amended effective April 11, 2005 (32:7 Md. R. 683)

**Administrative History:** Regulation .01A, B amended effective March 7, 2022 (49:5 Md. R. 366)

**Administrative History:** Regulation .03C amended effective March 7, 2022 (49:5 Md. R. 366)

**Administrative History:** Regulation .05A amended effective September 15, 2014 (41:18 Md. R. 1010); March 7, 2022 (49:5 Md. R. 366)

**Administrative History:** Regulation .05C, D adopted effective March 7, 2022 (49:5 Md. R. 366)

#### Regulation .01 Licensee's Updated Information.

*COMAR 20.51.03.01*

A. In this chapter, a material change means one or more of the following conditions:

  (1) PJM Interconnection, LLC has reduced the licensee's unsecured credit allowance to a level below $2,000,000.

  (2) The licensee is denied credit by a Maryland electric company.

  (3) At least two of the nationally recognized statistical rating organizations have reduced the licensee's rating by two or more grades, or to a level below investment grade.

  (4) The licensee has filed for bankruptcy protection or been subjected to involuntary bankruptcy proceedings.

  (5) The licensee has had a license revoked, suspended, or restricted in another state.

  (6) A parent corporation or other person who has undertaken to guarantee the licensee's financial integrity withdraws the guarantee.

  (7) In addition to any of the conditions under §A(1)—(6) of this regulation, if a supplier provides supplier-consolidated billing, a material change includes:

    (a) The transfer of supplier-consolidated billing services from a supplier to a third-party agent;

    (b) The transfer of supplier-consolidated billing services from one third-party agent to another third-party agent; or

    (c) Cancellation of the bonding or collateral for supplier-consolidated billing required under COMAR 20.51.02.08G.

B. Within 10 business days of a material change, a licensed electricity supplier shall:

  (1) Update or supplement the information required in the application under COMAR 20.51.02.02B(1), (4), and (5) and COMAR 20.51.02.02E; and

  (2) File a copy of the updated or supplemental information with the Commission.

C. Except for information pertaining to the financial integrity of the licensee, a licensee shall provide to the Commission annual updates of the information required in the application under COMAR 20.51.02. The annual update required by this section shall be filed within 120 days of the close of the fiscal year of the licensee.

D. A licensed electricity supplier shall provide additional information as may be required by the Commission.

#### Regulation .02 Required Filing — Electric Company Service Agreement.

*COMAR 20.51.03.02*

An electricity supplier shall file with the Commission a copy of every service agreement entered into with an electric company within 10 business days of the execution of the agreement.

#### Regulation .03 Requirement — Collection of Prepayment or Deposit.

*COMAR 20.51.03.03*

A. An applicant who intends to collect or an electricity supplier who collects a deposit or prepayment for electric supply from a customer shall post a bond as required under this regulation.

B. The initial bond requirement for an applicant or electricity supplier who intends to collect a deposit or prepayment from a customer shall be $50,000.

C. Six months after the posting of the initial bond, or when the supplier's amount of deposits or prepayments exceeds its initial bond required by this regulation, whichever is earlier, an electricity supplier shall:

  (1) Conduct an audit, performed by an independent certified public accountant or a Commission auditor;

  (2) If an independent certified public accountant is used, provide a copy to the Commission; and

  (3) Comply with the bonding requirements in §§D and E of this regulation.

D. Except as provided in §B of this regulation, the bond required under §A of this regulation shall equal or exceed the total amount of any deposits or prepayments an electricity supplier collects.

E. In calculating the bonding requirement under §D of this regulation, prepayments or deposits do not include funds:

  (1) Collected from a customer whose metered demand is expected to or does exceed 1 MW during any month of the previous 12-month period; or

  (2) Received in advance of service from a customer who voluntarily participates in a billing plan under which the customer's electric costs are averaged over a period of time.

F. The bond required by §A of this regulation shall be obtained from a company licensed in the State to write surety types of insurance.

#### Regulation .04 Form of Bond.

*COMAR 20.51.03.04*

A. The bond required by COMAR 20.51.02.08 or Regulation .03 of this chapter shall be in the form required by the Commission.

B. The bond required by Regulation .03 of this chapter shall at a minimum:

  (1) Identify the Maryland Public Service Commission as the sole beneficiary;

  (2) Be continuous and subject to cancellation only after 60 days notice to the Commission;

  (3) Be in the amount determined under Regulation .03 of this chapter;

  (4) Contain the following language or similar language acceptable to the Commission: “Payment under this bond shall be due in the event the Commission determines that the (electricity supplier name) is financially insolvent or unable to meet their obligations as a licensed electricity supplier in Maryland”; and

  (5) Permit the Commission to direct that the proceeds of the bond be paid or disbursed.

#### Regulation .05 Electricity Supplier License — Cessation of Business.

*COMAR 20.51.03.05*

A. A licensee shall provide 60 days prior written notice to the Commission and to the administrators appointed under COMAR 20.61.06.09 of an intention to cease providing services to all customers in:

  (1) The State;

  (2) A specified electric company service area;

  (3) A specified customer class; or

  (4) A specified type of billing.

B. Following receipt of the notice required by §A of this regulation, the Commission may require the licensee to provide notice to the public and take other appropriate action.

C. If a supplier ceases providing a particular type of billing service, notice to customers, at a minimum, shall specify the following:

  (1) That the supplier will no longer provide the specific type of billing service to customers in the State, service territory, or to a customer class, as applicable;

  (2) The billing method to which the customer will be subject after the supplier ceases to offer the current billing method it was providing; and

  (3) The date on which the customers current billing service will cease and the new billing service will begin.

D. If a supplier that is ceasing a specific type of billing service intends to retain a customer on a different billing model, the supplier shall follow COMAR 20.53.05.08.

#### Regulation .06 License Revocation or Suspension.

*COMAR 20.51.03.06*

The Commission may revoke or suspend a license, if a licensee:

A. Intentionally provides false information;

B. Switches, or causes to be switched, the electricity supply for a customer without first obtaining the customer's permission;

C. Fails to provide electricity for its customers;

D. Commits fraud or engages in deceptive practices;

E. Fails to maintain financial integrity;

F. Violates any applicable provision of this title;

G. Violates a Commission Order;

H. Fails to comply with State or local tax laws;

I. Violates any applicable provision of the Public Utilities Article, Annotated Code of Maryland, or any other State consumer protection law;

J. Is convicted of, or has a principal who is convicted of, a felony or any crime involving fraud, theft, or deceit; or

K. Has a similar license issued by another state or the federal government suspended or revoked.

#### Regulation .07 Enforcement.

*COMAR 20.51.03.07*

The Commission may enforce the regulations in this subtitle under the provisions of Public Utilities Article, §7-507, Annotated Code of Maryland.