Chapter 03. Electricity Supplier License Requirements
Regulation .01 Licensee's Updated Information.LinkCopy Citation
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.LinkCopy Citation
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.LinkCopy Citation
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.LinkCopy Citation
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.LinkCopy Citation
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.LinkCopy Citation
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.LinkCopy Citation
The Commission may enforce the regulations in this subtitle under the provisions of Public Utilities Article, §7-507, Annotated Code of Maryland.
Chapter annotations
Authority: Public Utilities Article, §§2-113, 2-121, and 7-507, Annotated Code of Maryland
History: Effective date: September 1, 2003 (30:17 Md. R. 1204)
History: Regulation .01 amended effective April 11, 2005 (32:7 Md. R. 683)
History: Regulation .01A, B amended effective March 7, 2022 (49:5 Md. R. 366)
History: Regulation .03C amended effective March 7, 2022 (49:5 Md. R. 366)
History: Regulation .05A amended effective September 15, 2014 (41:18 Md. R. 1010); March 7, 2022 (49:5 Md. R. 366)
History: Regulation .05C, D adopted effective March 7, 2022 (49:5 Md. R. 366)