Md. Code Regs. 20.51.03.03

Current through Register Vol. 51, No. 26, December 27, 2024

Section 20.51.03.03 - Requirement - Collection of Prepayment or Deposit

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.

Md. Code Regs. 20.51.03.03

Regulation .03 amended effective 49:5 Md. R.366, eff. 3/7/2022