# COMAR Title 20 — Public Service Commission

## Subtitle 54 — Gas Suppliers

### Chapter 02 — Administrative Provisions

**Authority:** Public Utilities Article, §§2-113, 2-121, 4-308, 5-101, 7-507, 7-511, and 7-601—7-606, Annotated Code of Maryland

**Administrative History:** Effective date: August 18, 2003 (30:16 Md. R. 1076)

**Administrative History:** Regulation .01 amended effective March 7, 2022 (49:5 Md. R. 367)

**Administrative History:** Regulation .02B amended effective March 7, 2022 (49:5 Md. R. 367)

**Administrative History:** Regulation .02C, D adopted effective March 7, 2022 (49:5 Md. R. 367)

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

**Administrative History:** Regulation .07 amended effective March 7, 2022 (49:5 Md. R. 367)

**Administrative History:** Regulation .08 amended effective March 7, 2022 (49:5 Md. R. 367)

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

#### Regulation .01 Gas Supplier License Required.

*COMAR 20.54.02.01*

A. A person may not engage in the business of a gas 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 granted under this subtitle 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 20.54.02.02*

A. 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.

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 Federal Energy Regulatory Commission.

  (3) A statement of compliance with applicable federal and State consumer protection laws, and environmental laws and regulations relating to the gas services;

  (4) Proof of financial integrity;

  (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 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;

  (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 gas company and the gas supplier that:

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

      (ii) 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;

  (8) 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;

  (9) 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

  (10) 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. 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:

  (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 minimum 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 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;

  (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.

D. A licensed gas 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 20.54.02.03*

A. An applicant shall file an original and 15 paper copies and an electronic copy of 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 20.54.02.04*

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 20.54.02.05*

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 20.54.02.06*

A. 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.

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

  (1) Denial of a gas 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 gas supplier or person charged in attempting to achieve compliance after the Commission provides notice of the violation.

#### Regulation .07 Classification of Information.

*COMAR 20.54.02.07*

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 20.54.02.08*

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.

#### Regulation .09 Granting a License.

*COMAR 20.54.02.09*

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.

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

*COMAR 20.54.02.10*

A. 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.

B. A gas 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 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;

  (6) 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;

  (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.