Except for a gas company providing standard Commission rate regulated gas sales or delivery service, this subtitle applies to all gas suppliers. In this subtitle, the following terms have the meanings indicated. Terms Defined. “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. Aggregator. “Aggregator” means an entity or an individual that acts on behalf of a customer to purchase gas. “Aggregator” does not include: An entity or individual that purchases gas for its own use or for the use of its subsidiaries or affiliates; A municipal gas utility serving only in its distribution territory; or A combination of governmental units that purchases gas for use by the governmental units. “Applicant” means a person applying for a gas supplier license. “Application” means a written request for a gas supplier license. “Broker” means an entity or individual that acts as an agent or intermediary in the sale and purchase of gas but does not take title to the gas. “Commission” means the Public Service Commission of Maryland. “Competitive billing service” means the: Invoicing for gas supply or gas supply services to a retail customer; and Processing of payment for gas supply or gas supply services to a retail customer. “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. “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 a gas 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. “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 gas utility bills, which includes but is not necessarily limited to: The Maryland Energy Assistance Program; The Utility Service Protection Program; and The Arrearage Retirement Assistance Program. “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. “Gas commodity price or net purchased gas charge” means the utility rate for a given period as approved in the utility’s applicable sales service tariff that would be charged to a utility gas commodity customer, excluding any charges, adjustments, riders, or taxes related to distribution rates. “Gas company” has the meaning stated in Public Utilities Article, §1-101, Annotated Code of Maryland. Gas Supplier. “Gas supplier” means a licensed person that: Sells gas, gas supply services, or competitive billing services; or Purchases, brokers, arranges, or markets, including by means of supplier-consolidated billing, gas or gas supply services for sale to a retail gas customer. “Gas supplier” includes an aggregator, a broker, and a marketer of gas. “Gas supplier” does not include: A gas company to the extent that the gas company provides gas sales or delivery service at rates regulated by the Commission; An owner/operator that holds ownership in and manages the internal distribution system serving a building, and supplies gas solely to occupants of the building for use by the occupants; A lessee/operator that holds a leasehold interest in and manages the internal distribution system serving a building, and supplies gas solely to occupants of the building for use by the occupants; or A person that transmits or distributes gas within a site owned by the person or the person's affiliate that is incidental to the primary landlord-tenant relationship. “License” means the authority granted by the Commission to a person to do business as a gas supplier. “Marketer” means a person that purchases and takes title to gas as an intermediary for sale to a customer. “Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind and any partnership, firm, association, corporation, or other entity. Retail Gas Customer. “Retail gas customer” means a purchaser of gas for end use in the State. “Retail gas customer” does not include an occupant of a building in which the owner or operator or lessee or operator manages the internal distribution system serving the building and supplies gas and gas supply services solely to occupants of the building for use by the occupants. “Sales service” means the supply of retail gas commodity service by the customer’s gas company. “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. Public Utilities Article, §§2-113, 2-121, 4-308, 5-101, 7-507, 7-511, and 7-601—7-606, Annotated Code of Maryland Effective date: August 18, 2003 (30:16 Md. R. 1076) Regulation .02B amended effective March 7, 2022 (49:5 Md. R. 367); July 10, 2023 (50:13 Md. R. 513) A person may not engage in the business of a gas supplier in the State without obtaining a license from the Commission. A person is limited by the terms of the license issued by the Commission. A license granted under this subtitle is valid unless suspended or revoked by the Commission. A license issued under this chapter may not be transferred without prior approval of the Commission. A person applying for a gas supplier license or to transfer an existing gas supplier license shall file an application on the form provided by the Commission. The application shall contain at least the following information: The technical and managerial competency of the applicant; A statement indicating compliance with all applicable requirements of the Federal Energy Regulatory Commission. A statement of compliance with applicable federal and State consumer protection laws, and environmental laws and regulations relating to the gas services; Proof of financial integrity; A certificate from: 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 The Maryland Department of Assessments and Taxation, indicating that the business 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; An affidavit of tax compliance, including local taxes and surcharges; If the applicant provides competitive billing services: A statement of compliance with any local licensing and bonding requirement; and A copy of the agreement between the gas company and the gas supplier that: Details the reciprocal responsibilities for collection and ownership of accounts receivable; and Prohibits the gas company from commencing collection or service termination action of any kind against a retail customer for nonpayment of utility charges billed by the gas supplier unless the retail customer fails upon request to provide evidence of payment to the gas supplier of the utility charges; If the applicant intends to collect a deposit or prepayment from a retail customer, a bond as required under COMAR 20.54.03.03 or similar instrument approved by the Commission; If applicable, a certificate of compliance with the provisions of Labor and Employment Article, Title 9, Annotated Code of Maryland relating to Maryland Workers' Compensation; and 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. In addition to the requirements of §§A and B of this regulation, an applicant seeking to provide supplier-consolidated billing shall, at a minimum, provide the following: Certification that the applicant will comply with all laws and regulatory requirements for Maryland bills that contain regulated utility charges and retail energy charges; Certification that the applicant will comply with all applicable statutes and regulatory requirements and maintain the following minimum functions: Call center operations; Complaint resolution procedures; and Billing, credit, and collection procedures; Certification that the applicant will coordinate with the gas company to exchange information and data using Statewide uniform transactions and standards approved by the Commission before engaging in supplier-consolidated billing in the gas company's service territory; Proof of an ongoing quality assurance process that documents the accuracy of customer bills; and Such additional information as the Commission may require. A licensed gas supplier that seeks to perform supplier-consolidated billing shall apply to amend its authority under the terms of this subtitle. An applicant shall file an original and 15 paper copies and an electronic copy of an application with the Commission. 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. An applicant shall immediately inform the Commission of any material change in the information provided in the application during the application review process. When the initial application is filed, the applicant shall pay a nonrefundable filing fee, as specified by the Commission in the application form. An applicant that submits misleading, incomplete, inaccurate information or fails to provide updated information as required under COMAR 20.54.03.01 may be penalized under Public Utilities Article, Annotated Code of Maryland. A penalty under §A of this regulation may include the: Denial of a gas supplier license; Revocation or suspension of a license issued under Regulation .09 of this chapter; Imposition of a civil penalty of up to $10,000 per violation; Imposition of a moratorium on adding or soliciting additional customers; or Any other action the Commission considers appropriate. The Commission shall consider, in determining the amount of the civil penalty imposed under §B(3) of this regulation, the: Number of previous violations of any provision of Commission law or regulations; Gravity of the current violation; and Good faith of the gas supplier or person charged in attempting to achieve compliance after the Commission provides notice of the violation. An applicant may designate answers or documents proprietary or confidential only if there is a valid legal or factual basis supporting the designation. Applicant answers or documents designated as proprietary or confidential shall be reviewed by the Commission. Following review, the Commission shall classify answers or documents identified as proprietary or confidential by the applicant as either public, proprietary, or confidential. Only answers identified as public may be inspected by the general public. Following review of the statement of financial integrity provided by the applicant under Regulation .02B(4) of this chapter, the Commission may require a bond, letter of guarantee, or other financial instrument from the applicant, applicant's parent, or other responsible person. The amount of a bond, letter of guarantee, or other financial instrument required under §A of this regulation shall be established by the Commission and be based on an applicant's financial information. Bonding; Financial Guarantees. 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. 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 §A of this regulation. 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. Any bond required under §A or C of this regulation shall at a minimum: Identify the Maryland Public Service Commission as the sole beneficiary; Be continuous and subject to cancellation only after 60 days notice to the Commission; 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 (gas supplier name) is financially insolvent or unable to meet its obligations as a licensed gas supplier in Maryland”; and Permit the Commission to direct that the proceeds of the bond be paid or disbursed. Any bond required under §A or C of this regulation shall be obtained from a company licensed in the State to write surety types of insurance. In the event a letter of guarantee or other financial instrument is required under §A or C of this regulation, the guarantor shall submit a balance sheet and income statement to the Commission. After review, the Commission may grant a license on finding that the issuance will promote a competitive retail gas supply and gas supply services market. Beginning July 1, 2023, a gas supplier may not serve a customer in an energy assistance household except pursuant to a Commission approved contract for energy assistance households. A gas supplier applying for approval of a contract for energy assistance households shall file on a form provided by the Commission. The submission shall include: The identity of the applicant; The service territories and commodities applied for; A copy of the contract and contract summary form that will be used for sales to energy assistance households; A description of the price a customer will pay, as it will appear on the customer contract; For any months where the utility gas commodity price or net purchased gas charge 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 gas commodity price or net purchased gas charge; A commitment for the entirety of the term of the supply contract to charge at or below the utility gas commodity price or net purchased gas charge; A commitment to follow the terms of Public Utilities Article, §4-308, Annotated Code of Maryland; and 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. The Commission may approve a supplier’s application for a contract for energy assistance households subject to any conditions the Commission determines appropriate. Public Utilities Article, §§2-113, 2-121, 4-308, 5-101, 7-507, 7-511, and 7-601—7-606, Annotated Code of Maryland Effective date: August 18, 2003 (30:16 Md. R. 1076) Regulation .01 amended effective March 7, 2022 (49:5 Md. R. 367) Regulation .02B amended effective March 7, 2022 (49:5 Md. R. 367) Regulation .02C, D adopted effective March 7, 2022 (49:5 Md. R. 367) Regulation .03A amended effective July 10, 2023 (50:13 Md. R. 513) Regulation .07 amended effective March 7, 2022 (49:5 Md. R. 367) Regulation .08 amended effective March 7, 2022 (49:5 Md. R. 367) Regulation .10 adopted effective July 10, 2023 (50:13 Md. R. 513) Material Changes. Within 30 days of a material change, a licensed gas supplier shall: Update or supplement the information required in the application under COMAR 20.54.02.02 B(1), (4), (5), and (8) and COMAR 20.54.02.02C; and File a copy of the updated or supplemental information with the Commission. A supplier providing supplier-consolidated billing shall, in addition to §A(1) of this regulation, also update or supplement the following material changes: The transfer of the conduct of supplier-consolidated billing services from the supplier to a third-party agent; The transfer of supplier-consolidated billing services from one third-party agent to another third-party agent; or The cancellation of the bond or collateral guaranteeing protection of customers participating in supplier-consolidated billing required under COMAR 20.54.02.08C. A licensee shall provide to the Commission annual updates of the information required in the application under COMAR 20.51.02, including the information provided under §A of this regulation. The annual update required by this section shall be filed within 120 days of the close of the fiscal year of the licensee. A licensed gas supplier shall provide additional information as may be required by the Commission. A gas supplier shall file with the Commission a copy of every service agreement entered into with a gas company within 10 business days of the execution of the agreement. An applicant who intends to collect or a gas supplier who collects a deposit or prepayment for gas supply from a customer shall post a bond as required under this regulation. The initial bond requirement for an applicant or gas supplier who intends to collect a deposit or prepayment from a customer shall be $50,000. Six months after the posting of the initial bond, or when the amount of deposits or prepayments exceed the initial bond required by this regulation, whichever is earlier, a gas supplier shall: Conduct an audit, performed by an independent certified public accountant or a Commission auditor; If an independent certified public accountant is used, provide a copy to the Commission; and Comply with the bonding requirements in §§D and E of this regulation. 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 a gas supplier collects. In calculating the bonding requirement under §D of this regulation, prepayments or deposits do not include funds: Collected from a customer whose metered use is expected to or does exceed 625 dekatherms during any month of the previous 12-month period; or Received in advance of service from a customer that voluntarily participates in a billing plan under which the customer's electric costs are averaged over a period of time. The bond required by §A of this regulation shall be obtained from a company licensed in the State to write surety types of insurance. The bond required by COMAR 20.54.02.08 or Regulation .03 of this chapter shall be in the form required by the Commission. The bond required by Regulation .03 of this chapter shall at a minimum: Identify the Maryland Public Service Commission as the sole beneficiary; Be continuous and subject to cancellation only after 60 days notice to the Commission; Be in the amount determined under Regulation .03 of this chapter; 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 (gas supplier name) is financially insolvent or unable to meet their obligations as a licensed gas supplier in Maryland”; and Permit the Commission to direct that the proceeds of the bond be paid or disbursed. A licensee shall provide 60 days prior written notice to the Commission of an intention to cease providing service in the State to all customers: In a specified gas company service area; Within a specified customer class; or A specified type of billing. 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. If a supplier ceases providing a particular type of billing service, notice to customers, at a minimum, shall specify the following: 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; The billing method to which the customer will be subject after the supplier ceases to offer the current billing method it was providing; and The date on which the customer's current billing service will cease and the new billing service will begin. If the 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 20.59.05.06. The Commission may revoke or suspend a license, if a licensee: Intentionally provides false information; Switches, or causes to be switched, the gas supply for a customer without first obtaining the customer's permission; Fails to provide gas for its customers; Commits fraud or engages in deceptive practices; Fails to maintain financial integrity; Violates any applicable provision of this title; Violates a Commission Order; Fails to comply with State or local tax laws; Violates any applicable provision of Public Utilities Article, Annotated Code of Maryland, or any State or federal consumer protection law; Is convicted of, or has a principal who is convicted of, a felony or any crime involving fraud, theft, or deceit; or Has a similar license issued by another state or the federal government suspended or revoked. The Commission may enforce the regulations in this subtitle under the provisions of Public Utilities Article, Annotated Code of Maryland. Public Utilities Article, §§2-113, 2-121, 5-101, 7-507, 7-511, and 7-601—7-606, Annotated Code of Maryland Effective date: August 18, 2003 (30:16 Md. R. 1076) Regulation .01A amended effective March 7, 2022 (49:5 Md. R. 367) Regulation .03C amended effective March 7, 2022 (49:5 Md. R. 367) Regulation .05A amended effective March 7, 2022 (49:5 Md. R. 367) Regulation .05C, D adopted effective March 7, 2022 (49:5 Md. R. 367)