Md. Code Regs. 20.54.02.08

Current through Register Vol. 51, No. 24, December 2, 2024

Section 20.54.02.08 - Financial Integrity

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.

Md. Code Regs. 20.54.02.08

Regulation .08 amended effective 49:5 Md. R.367, eff. 3/7/2022