<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".03" citation="COMAR 20.54.03.03" title_num="20" subtitle_num="54" chapter_num="03" heading="Requirement — Collection of Prepayment or Deposit.">
  <paragraph num="A.">
    <text>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.</text>
  </paragraph>
  <paragraph num="B.">
    <text>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.</text>
  </paragraph>
  <paragraph num="C.">
    <text>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:</text>
    <paragraph num="(1)">
      <text>Conduct an audit, performed by an independent certified public accountant or a Commission auditor;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>If an independent certified public accountant is used, provide a copy to the Commission; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Comply with the bonding requirements in §§D and E of this regulation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>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.</text>
  </paragraph>
  <paragraph num="E.">
    <text>In calculating the bonding requirement under §D of this regulation, prepayments or deposits do not include funds:</text>
    <paragraph num="(1)">
      <text>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</text>
    </paragraph>
    <paragraph num="(2)">
      <text>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.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>The bond required by §A of this regulation shall be obtained from a company licensed in the State to write surety types of insurance.</text>
  </paragraph>
</regulation>