Plain Text Law

Regulation .08 Financial Integrity.

Regulation .08 Financial Integrity.Copy Citation

A.
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.
B.
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.
C.
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 §A 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.
D.
Any bond required under §A or C of this regulation 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)
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
(4)
Permit the Commission to direct that the proceeds of the bond be paid or disbursed.
E.
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.
F.
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.