EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0267*
HOUSE BILL 267
C5, I3, M5 4lr0435
CF SB 1
By: Delegate Crosby
Introduced and read first time: January 12, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Electricity and Gas – Retail Supply – Regulation and Consumer Protection 2
FOR the purpose of establishing an energy salesperson license for certain persons that offer 3
or sell electricity supply agreements or gas supply agreements to customers in the 4
State; providing for the terms of electricity supplier, energy salesperson, and gas 5
supplier licenses issued by the Public Service Commission; establishing certain 6
licensing and renewal requirements for certain persons; providing for certain 7
disciplinary actions by the Commission against electricity suppliers, gas suppliers, 8
and energy salespersons for certain acts; altering and establishing the amounts of 9
certain civil penalties that may be assessed with respect to electricity suppliers, gas 10
suppliers, and energy salespersons for certain violations; establishing certain 11
restrictions on the offer and sale of certain electricity supply; requiring an electric 12
company and an electricity supplier to establish a mechanism for a customer to 13
request and receive a certain replacement number under certain circumstances and 14
to allow a customer to be placed on a certain list regarding electricity service; 15
requiring electric companies to submit to the Commission a certain monthly report 16
on customer choice; altering the contents of a certain annual report that each 17
electricity supplier is required to submit to the Commission; requiring an electricity 18
supplier that offers green power for sale to residential customers to purchase certain 19
renewable energy credits in excess of the renewable energy portfolio standard in a 20
certain year in an amount equal to the amount of electricity sold to residential 21
customers as green power in that year; requiring certain electricity suppliers 22
marketing and selling green power to residential customers to include a certain 23
disclosure in certain marketing materials; stating the intent of the General 24
Assembly regarding the establishment of a certain division within the Commission; 25
allowing the Commission to impose on certain persons up to a certain amount as a 26
special assessment in a certain manner; allowing certain funds to be expended for 27
certain purposes in accordance with an approved budget amendment; and generally 28
relating to retail energy supply and consumer protection. 29
BY repealing and reenacting, without amendments, 30 2 HOUSE BILL 267
Article – Public Utilities 1
Section 1–101(a), (l), (p), (ee), and (ff), 7–310(b), 13–101, and 13–201(a) and (b) 2
Annotated Code of Maryland 3
(2020 Replacement Volume and 2023 Supplement) 4
BY adding to 5
Article – Public Utilities 6
Section 1–101(l–1), 7–507.1, 7–603.1, and 7–707 7
Annotated Code of Maryland 8
(2020 Replacement Volume and 2023 Supplement) 9
BY repealing and reenacting, with amendments, 10
Article – Public Utilities 11
Section 7–310(e), 7–507, 7–510, 7–602, 7–603, 7–604, 7–605, 7–705(a), and 12
13–201(e)(3) 13
Annotated Code of Maryland 14
(2020 Replacement Volume and 2023 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Public Utilities 18
1–101. 19
(a) In this division the following words have the meanings indicated. 20
(l) (1) “Electricity supplier” means a person: 21
(i) who sells: 22
1. electricity; 23
2. electricity supply services; 24
3. competitive billing services; or 25
4. competitive metering services; or 26
(ii) who purchases, brokers, arranges, or markets electricity or 27
electricity supply services for sale to a retail electric customer. 28
(2) “Electricity supplier” includes an electric company, an aggregator, a 29
broker, and a marketer of electricity. 30
(3) “Electricity supplier” does not include: 31
HOUSE BILL 267 3
(i) the following persons who supply electricity and electricity 1
supply services solely to occupants of a building for use by the occupants: 2
1. an owner/operator who holds ownership in and manages 3
the internal distribution system serving the building; or 4
2. a lessee/operator who holds a leasehold interest in and 5
manages the internal distribution system serving the building; 6
(ii) a person who generates on–site generated electricity; or 7
(iii) a person that owns or operates equipment used for charging 8
electric vehicles, including a person that owns or operates: 9
1. an electric vehicle charging station; 10
2. electric vehicle supply equipment; or 11
3. an electric vehicle charging station service company or 12
provider. 13
(L–1) “ENERGY SALESPERSON ” MEANS AN INDIVIDUAL WHO IS LICENSED BY 14
THE COMMISSION TO SELL : 15
(1) ELECTRICITY OR ELECT RICITY SUPPLY SERVIC ES TO RETAIL 16
ELECTRIC CUSTOMERS ON BEHALF OF AN ELEC TRICITY SUPPLIER AS AN EMPLOYEE 17
OR AGENT OF THE ELEC TRICITY SUPPLIER ; OR 18
(2) GAS OR GAS SUPPLY SE RVICES TO RETAIL GAS CUSTOMERS ON 19
BEHALF OF A GAS SUPP LIER AS AN EMPLOYEE OR AGENT OF THE GAS SUPPLIER. 20
(p) (1) “Gas supplier” means a person who: 21
(i) sells: 22
1. gas; 23
2. gas supply services; or 24
3. competitive billing services for gas supply services; or 25
(ii) purchases, brokers, arranges, or markets gas or gas supply 26
services for sale to a retail gas customer. 27
(2) “Gas supplier” includes an aggregator, a broker, and a marketer of gas. 28
4 HOUSE BILL 267
(3) “Gas supplier” does not include: 1
(i) a gas company to the extent that the gas company provides gas 2
sales or delivery service at rates regulated by the Commission; 3
(ii) the following persons who supply gas solely to occupants of a 4
building for use by the occupants: 5
1. an owner/operator who holds ownership in and manages 6
the internal distribution system serving the building; and 7
2. a lessee/operator who holds a leasehold interest in and 8
manages the internal distribution system serving the building; or 9
(iii) a person who transmits or distributes gas within a site owned by 10
the person or the person’s affiliate that is incidental to a primarily landlord–tenant 11
relationship. 12
(ee) (1) “Retail electric customer” means a purchaser of electricity for end use 13
in the State. 14
(2) “Retail electric customer” includes: 15
(i) a person that owns or operates equipment used for charging 16
electric vehicles, including: 17
1. an electric vehicle charging station; 18
2. electric vehicle supply equipment; or 19
3. an electric vehicle charging station service company or 20
provider; and 21
(ii) a person that charges an electric vehicle at an electric vehicle 22
charging station that the person owns or operates. 23
(3) “Retail electric customer” does not include: 24
(i) an occupant of a building in which the owner/operator or 25
lessee/operator manages the internal distribution system serving the building and supplies 26
electricity and electricity supply services solely to occupants of the building for use by the 27
occupants; 28
(ii) a person who generates on–site generated electricity, to the 29
extent the on–site generated electricity is consumed by that person or its tenants; or 30
HOUSE BILL 267 5
(iii) except as provided in paragraph (2)(ii) of this subsection, a 1
person that charges an electric vehicle at an electric vehicle charging station. 2
(ff) (1) “Retail gas customer” means a purchaser of gas for end use in the State. 3
(2) “Retail gas customer” excludes an occupant of a building in which the 4
owner/operator or lessee/operator manages the internal distribution system serving the 5
building and supplies gas and gas supply services solely to occupants of the building for use 6
by the occupants. 7
7–310. 8
(b) There is a Retail Choice Customer Education and Protection Fund. 9
(e) (1) The Fund is a special, [nonlasping] NONLAPSING fund that is not 10
subject to § 7–302 of the State Finance and Procurement Article. 11
(2) The State Treasurer shall hold the Fund separately, and the 12
Comptroller shall account for the Fund. 13
7–507. 14
(a) A person, other than an electric company providing standard offer service 15
under § 7–510(c) of this subtitle, a municipal electric utility serving customers solely in its 16
distribution territory, or a community choice aggregator under § 7–510.3 of this subtitle, 17
may not engage in the business of an electricity supplier in the State unless the person 18
holds a license issued by the Commission. 19
(b) (1) An application for an electricity supplier license shall: 20
[(1)] (I) be made to the Commission in writing on a form adopted by the 21
Commission; 22
[(2)] (II) be verified by oath or affirmation; and 23
[(3)] (III) contain information that the Commission requires, including: 24
[(i)] 1. proof of technical and managerial competence; 25
[(ii)] 2. proof of compliance with all applicable requirements of the 26
Federal Energy Regulatory Commission, and any independent system operator or regional 27
or system transmission operator to be used by the licensee; 28
[(iii)] 3. a certification of compliance with applicable federal and 29
State environmental laws and regulations that relate to the generation of electricity; and 30
6 HOUSE BILL 267
[(iv)] 4. payment of the applicable licensing fee. 1
(2) (I) THE TERM OF AN ELECTRICI TY SUPPLIER LICENSE IS 3 2
YEARS. 3
(II) THE TERMS OF LICENSES MAY BE STAGGERED AS 4
DETERMINED BY THE COMMISSION. 5
(III) UNLESS A LICENSE IS R ENEWED FOR A 3–YEAR TERM IN 6
ACCORDANCE WITH THIS SUBSECTION, THE LICENSE EXPIRES ON THE DAT E THAT 7
THE COMMISSION SETS . 8
(IV) A LICENSEE MAY RENEW A LICENSE FOR AN ADDIT IONAL 9
3–YEAR TERM BEFORE THE LICENSE EXPIRES IF T HE LICENSEE: 10
1. OTHERWISE IS ENTITLE D TO BE LICENSED ; 11
2. SUBMITS TO THE COMMISSION A RENEWAL 12
APPLICATION ON THE F ORM THAT THE COMMISSION PROVIDES ; AND 13
3. PAYS TO THE COMMISSION THE APPLIC ABLE 14
RENEWAL FEE SET BY T HE COMMISSION. 15
(c) The Commission shall, by regulation or order: 16
(1) require proof of financial integrity; 17
(2) require a licensee to post a bond or other similar instrument[,] if, in the 18
Commission’s judgment, the bond or similar instrument is necessary to insure an electricity 19
supplier’s financial integrity; 20
(3) require a licensee to: 21
(i) provide proof that [it] THE LICENSEE is qualified to do business 22
in the State with the Department of Assessments and Taxation; and 23
(ii) agree to be subject to all applicable taxes; and 24
(4) adopt any other requirements [it] THE COMMISSION finds to be in the 25
public interest, which may include different requirements for: 26
(i) electricity suppliers that serve only large customers; and 27
(ii) the different categories of electricity suppliers. 28
HOUSE BILL 267 7
(d) A license issued under this section may not be transferred without prior 1
Commission approval. 2
(e) The Commission shall adopt regulations or issue orders to: 3
(1) protect consumers, electric companies, [and] electricity suppliers, AND 4
ENERGY SALESPERSONS from anticompetitive and abusive practices; 5
(2) require each electricity supplier AND EACH ENERGY SALESPERSON to 6
provide, in addition to the requirements under § 7–505(b)(5) of this subtitle, adequate and 7
accurate customer information to enable customers to make informed choices regarding the 8
purchase of any electricity services offered by the electricity supplier; 9
(3) establish reasonable restrictions on telemarketing; 10
(4) establish procedures for contracting with customers; 11
(5) establish requirements and limitations relating to deposits, billing, 12
collections, and contract cancellations; 13
(6) establish provisions providing for the referral of a delinquent account 14
by an electricity supplier to the standard offer service under § 7–510(c) of this subtitle; and 15
(7) establish procedures for dispute resolution. 16
(f) In accordance with regulations or orders of the Commission, electricity bills, 17
for competitive and regulated electric services, provided to consumers may provide, in 18
addition to the requirements of § 7–505(b)(5) of this subtitle and subsection (e)(2) of this 19
section, the following information: 20
(1) the identity and phone number of the electricity supplier of the service; 21
(2) sufficient information to evaluate prices and services; and 22
(3) information identifying whether the price is regulated or competitive. 23
(g) (1) An electricity supplier, AN ENERGY SALESPERSO N, or any person or 24
governmental unit may not, without first obtaining the customer’s permission: 25
(i) make any change in the electricity supplier for a customer; or 26
(ii) add a new charge for a new or existing service or option. 27
(2) The Commission shall adopt regulations or issue orders establishing 28
procedures to prevent the practices prohibited under paragraph (1) of this subsection. 29
8 HOUSE BILL 267
(h) (1) An electricity supplier may not discriminate against any customer 1
based wholly or partly on race, color, creed, national origin, or sex of an applicant for service 2
or for any arbitrary, capricious, or unfairly discriminatory reason. 3
(2) An electricity supplier may not refuse to provide service to a customer 4
except by the application of standards that are reasonably related to the electricity 5
supplier’s economic and business purposes. 6
(i) An electricity supplier shall be subject to all applicable federal and State 7
environmental laws and regulations. 8
(j) An electricity supplier shall post on the Internet information that is readily 9
understandable about its services and rates for small commercial and residential electric 10
customers. 11
(k) (1) [The] FOR JUST CAUSE ON THE COMMISSION’S OWN 12
INVESTIGATION OR ON COMPLAINT OF THE OFFICE OF PEOPLE’S COUNSEL, THE 13
ATTORNEY GENERAL, OR AN AFFECTED PARTY , THE Commission may: 14
(I) DENY A LICENSE TO , OR revoke [or], suspend, OR REFUSE TO 15
RENEW the license of, an electricity supplier[,] OR ENERGY SALESPERSO N; 16
(II) impose a civil penalty or other remedy[,]; 17
(III) order a refund or credit to a customer[,]; or 18
(IV) impose a moratorium on adding or soliciting additional 19
customers by the electricity supplier[, for just cause on the Commission’s own investigation 20
or on complaint of the Office of People’s Counsel, the Attorney General, or an affected party] 21
OR ENERGY SALESPERSO N. 22
(2) A civil penalty may be imposed in addition to the Commission’s decision 23
to DENY, revoke, suspend, OR REFUSE TO RENEW A LICENSE or impose a moratorium. 24
(3) Just cause includes: 25
(i) intentionally providing false information to the Commission; 26
(ii) switching, or causing to be switched, the electricity supply for a 27
customer without first obtaining the customer’s permission; 28
(iii) failing to provide electricity for its customers; 29
(iv) committing fraud or engaging in deceptive practices; 30
(v) failing to maintain financial integrity; 31 HOUSE BILL 267 9
(vi) violating a Commission regulation or order; 1
(vii) failing to pay, collect, remit, or calculate accurately applicable 2
State or local taxes; 3
(viii) violating a provision of this article or any other applicable 4
consumer protection law of the State; 5
(ix) conviction of a felony by the licensee or principal of the licensee 6
or any crime involving fraud, theft, or deceit; [and] 7
(x) DENIAL, suspension, or revocation of OR REFUSAL TO RENEW 8
a license by any State or federal authority; AND 9
(XI) COMMISSION OF ANY OF THE ACTS DESCRIBED I N ITEMS (I) 10
THROUGH (X) OF THIS PARAGRAPH BY A PERSON THAT IS AN AFFILIATE OF THE 11
LICENSEE OR THAT IS UNDER COMMON CONTROL WITH THE LICENSEE . 12
(l) (1) An electricity supplier, AN ENERGY SALESPERSO N, or ANY OTHER 13
person selling or offering to sell electricity in the State in violation of this section OR § 14
7–507.1 OF THIS SUBTITLE , after notice and an opportunity for a hearing, is subject to: 15
(i) a civil penalty of not more than [$10,000] $25,000 for the 16
violation; [or] 17
(ii) license DENIAL, revocation, or suspension OR REFUSAL TO 18
RENEW THE LICENSE; OR 19
(III) BOTH. 20
(2) Each day OR PART OF A DAY a violation continues is a separate 21
violation. 22
(3) EACH CUSTOMER TO WHOM ELECTRICITY IS SOLD OR OFFERED IN 23
VIOLATION OF THIS SE CTION IS A SEPARATE VIOLATION. 24
(4) The Commission shall determine the amount of any civil penalty after 25
considering: 26
(i) the number of previous violations of any provision of this division 27
BY THE ELECTRICITY S UPPLIER, ENERGY SALESPERSON , OR OTHER PERSON ; 28
(ii) the gravity of the current violation; [and] 29
10 HOUSE BILL 267
(iii) the good faith of the electricity supplier , ENERGY 1
SALESPERSON , or OTHER person charged in attempting to achieve compliance after 2
notification of the violation; AND 3
(IV) ANY OTHER MATTER THA T THE COMMISSION CONSIDERS 4
APPROPRIATE AND RELE VANT. 5
(m) In connection with a consumer complaint or Commission investigation under 6
this section OR § 7–507.1 OF THIS SUBTITLE , an electricity supplier, AN ENERGY 7
SALESPERSON , AND ANY OTHER PERSON SELLING OR OFFERING TO SELL 8
ELECTRICITY IN THE STATE shall provide to the Commission access to any accounts, 9
books, papers, and documents [which] THAT the Commission considers necessary to 10
resolve the matter at issue. 11
(n) The Commission may order the electricity supplier, ENERGY SALESPERSON , 12
OR OTHER PERSON to cease adding or soliciting additional customers or to cease serving 13
customers in the State. 14
(o) The Commission shall consult with the Consumer Protection Division of the 15
Office of the Attorney General before issuing regulations designed to protect consumers. 16
(p) The People’s Counsel shall have the same authority in licensing, complaint, 17
and dispute resolution proceedings as it has in Title 2 of this article. 18
(q) Nothing in this subtitle may be construed to affect the authority of the 19
Division of Consumer Protection in the Office of the Attorney General to enforce violations 20
of Titles 13 and 14 of the Commercial Law Article or any other applicable State law or 21
regulation in connection with the activities of electricity suppliers AND ENERGY 22
SALESPERSONS . 23
7–507.1. 24
(A) (1) A PERSON MAY NOT ENGAGE IN TH E BUSINESS OF AN ENE RGY 25
SALESPERSON IN THE STATE UNLESS THE PERS ON HOLDS A LICENSE I SSUED BY THE 26
COMMISSION. 27
(2) A LICENSED ENERGY SALE SPERSON MAY OFFER OR SELL 28
ELECTRICITY SUPPLY A GREEMENTS OR GAS SUP PLY AGREEMENTS TO CU STOMERS 29
IN THE STATE ONLY IF THE ENE RGY SALESPERSON IS A SSOCIATED WITH A LIC ENSED 30
ELECTRICITY SUPPLIER OR LICENSED GAS SUPPLIER, RESPECTIVELY . 31
(B) (1) AN APPLICATION FOR AN ENERGY SALESPERSON LICENSE SHALL: 32
(I) BE MADE TO THE COMMISSION IN WRITING ON A FORM 33
ADOPTED BY THE COMMISSION; 34 HOUSE BILL 267 11
(II) BE VERIFIED BY OATH OR AFFIRMATION ; AND 1
(III) CONTAIN INFORMATION THAT THE COMMISSION REQUIRES , 2
INCLUDING: 3
1. PROOF OF ASSOCIATION WITH A L ICENSED 4
ELECTRICITY SUPPLIER OR LICENSED GAS SUPP LIER, AS APPROPRIATE ; 5
2. PROOF OF COMPLIANCE WITH ALL APPLICABLE 6
TRAINING REQUIREMENTS FOR CUSTOMER PROTECT ION UNDER THIS SUBTI TLE 7
AND SUBTITLE 6 OF THIS TITLE AS REQ UIRED BY THE COMMISSION; AND 8
3. PAYMENT OF THE APPLI CABLE LICENSING FEE . 9
(2) (I) THE TERM OF AN ENERGY SALESPERSON LICENSE IS 3 10
YEARS. 11
(II) THE TERMS OF LICENSES MAY BE STAGGERED AS 12
DETERMINED BY THE COMMISSION. 13
(III) UNLESS A LICENSE IS R ENEWED FOR A 3–YEAR TERM IN 14
ACCORDANCE WITH THIS SUBSECTION, THE LICENSE EXPIRES ON THE DATE THAT 15
THE COMMISSION SETS . 16
(IV) A LICENSEE MAY RENEW A LICENSE FOR AN ADDIT IONAL 17
3–YEAR TERM BEFORE THE LICENSE EXPIRES IF THE LICENSEE: 18
1. OTHERWISE IS ENTITLE D TO BE LICENSED ; 19
2. SUBMITS TO THE COMMISSION A RENEWAL 20
APPLICATION ON THE F ORM THAT THE COMMISSION PROVIDES ; AND 21
3. PAYS TO THE COMMISSION THE APPLIC ABLE 22
RENEWAL FEE SET BY T HE COMMISSION. 23
(C) THE COMMISSION SHALL , BY REGULATION OR ORD ER: 24
(1) REQUIRE PROOF OF FIN ANCIAL INTEGRITY ; 25
(2) REQUIRE A LICENSEE T O POST A BOND OR OTH ER SIMILAR 26
INSTRUMENT IF , IN THE COMMISSION’S JUDGMENT , THE BOND OR SIMILAR 27 12 HOUSE BILL 267
INSTRUMENT IS NECESS ARY TO INSURE AN ENERGY SALESPERSON ’S FINANCIAL 1
INTEGRITY; AND 2
(3) ADOPT ANY OTHER REQU IREMENTS THE COMMISSION FINDS TO 3
BE IN THE PUBLIC INT EREST. 4
(D) A LICENSE ISSUED UNDER THIS SECTION MAY NOT BE TRANSFERRED 5
WITHOUT PRIOR COMMISSION APPROVAL . 6
7–510. 7
(a) (1) Subject to subsection (b) of this section, the phased implementation of 8
customer choice shall be implemented as follows: 9
(i) on July 1, 2000, one–third of the residential class in the State of 10
each electric company shall have the opportunity for customer choice; 11
(ii) on January 1, 2001, the entire industrial class and the entire 12
commercial class in the State of each electric company shall have the opportunity for 13
customer choice; 14
(iii) on July 1, 2001, two–thirds of the residential class in the State 15
of each electric company shall have the opportunity for customer choice; 16
(iv) on July 1, 2002, all customers of each electric company shall have 17
the opportunity for customer choice; and 18
(v) by July 1, 2003, under a separate schedule adopted by the 19
Commission, all customers of each electric cooperative shall have the opportunity for 20
customer choice. 21
(2) (i) In accordance with this paragraph, the Commission may adopt a 22
separate schedule for municipal electric utilities for the implementation of customer choice. 23
(ii) A municipal electric utility may not be required to make its 24
service territory available for customer choice unless it elects to do so. 25
(iii) If a municipal electric utility elects to allow customer choice, the 26
municipal electric utility shall file a proposed plan and schedule with the Commission. 27
(iv) The Commission may approve each municipal electric utility 28
plan and schedule after considering the features that distinguish the municipal electric 29
utility from other electric companies. 30
HOUSE BILL 267 13
(v) Nothing in this subtitle may be construed to require the 1
functional, operational, structural, or legal separation of the regulated and nonregulated 2
operations of the municipal electric utility. 3
(3) If a municipal electric utility serves customers outside its distribution 4
territory, electricity suppliers licensed under § 7–507 of this subtitle may serve the 5
customers in the distribution territory of the municipal electric utility. 6
(b) For good cause shown and if the Commission finds the action to be in the 7
public interest, the Commission may: 8
(1) accelerate or delay the initial implementation date of July 1, 2000, by 9
up to 3 months; or 10
(2) accelerate any of the other implementation dates and phase –in 11
percentages in subsection (a) of this section. 12
(c) (1) Beginning on the initial implementation date, an electric company’s 13
obligation to provide electricity supply and electricity supply service is stated by this 14
subsection. 15
(2) (I) Electricity supply purchased from a customer’s electric company 16
is known as standard offer service. 17
(II) A customer is considered to have chosen the standard offer 18
service if the customer: 19
[(i)] 1. is not allowed to choose an electricity supplier under the 20
phase in of customer choice in subsection (a) of this section; 21
[(ii)] 2. contracts for electricity with an electricity supplier and it 22
is not delivered; 23
[(iii)] 3. cannot arrange for electricity from an electricity supplier; 24
[(iv)] 4. does not choose an electricity supplier; 25
[(v)] 5. chooses the standard offer service; or 26
[(vi)] 6. has been denied service or referred to the standard offer 27
service by an electricity supplier in accordance with § 7–507(e)(6) of this subtitle. 28
(3) [(i) Except as provided under subparagraph (ii) of this paragraph, 29
any obligation of an electric company to provide standard offer service shall cease on July 30
1, 2003. 31
14 HOUSE BILL 267
(ii) 1. Electric cooperatives and municipal electric utilities may 1
choose to continue providing standard offer service in their respective distribution 2
territories and may cease offering that service after notifying the Commission at least 12 3
months in advance. 4
2. On and after July 1, 2003, an electric company continues 5
to have the obligation to provide standard offer service to residential and small commercial 6
customers at a market price that permits recovery of the verifiable, prudently incurred 7
costs to procure or produce the electricity plus a reasonable return. 8
(iii) 1.] On or before December 31, 2008, and every 5 years 9
thereafter, the Commission shall report to the Governor and, in accordance with § 2–1257 10
of the State Government Article, to the General Assembly on the status of the standard 11
offer service[,] AND the development of competition[, and the transition of standard offer 12
service to a default service]. 13
[2. The Commission shall establish, by order or regulation, 14
the definition of “default service”.] 15
(4) (i) 1. On or before July 1, 2001, the Commission shall adopt 16
regulations or issue orders to establish procedures for the competitive selection of wholesale 17
electricity suppliers, including an affiliate of an electric company, to provide electricity for 18
standard offer service to customers of electric companies under paragraph (2) of this 19
subsection, except for customers of electric cooperatives and municipal electric utilities. 20
2. Unless delayed by the Commission, the competitive 21
selection shall take effect no later than July 1, 2003. 22
(ii) 1. Under the obligation to provide standard offer service in 23
accordance with [paragraph (3)(ii) of] this subsection, the Commission, by regulation or 24
order, and in a manner that is designed to obtain the best price for residential and small 25
commercial customers in light of market conditions at the time of procurement and the 26
need to protect these customers from excessive price increases: 27
A. shall require each investor–owned electric company to 28
obtain its electricity supply for residential and small commercial customers participating 29
in standard offer service through a competitive process in accordance with this paragraph; 30
and 31
B. may require or allow an investor–owned electric company 32
to procure electricity for these customers directly from an electricity supplier through one 33
or more bilateral contracts outside the competitive process. 34
2. A. As the Commission directs, the competitive process 35
shall include a series of competitive wholesale bids in which the investor–owned electric 36
company solicits bids to supply anticipated standard offer service load for residential and 37 HOUSE BILL 267 15
small commercial customers as part of a portfolio of blended wholesale supply contracts of 1
short, medium, or long terms, and other appropriate electricity products and strategies, as 2
needed to meet demand in a cost–effective manner. 3
B. The competitive process may include different bidding 4
structures and mechanisms for base load, peak load, and very short–term procurement. 5
C. By regulation or order, as a part of the competitive process, 6
the Commission shall require or allow the procurement of cost–effective energy efficiency 7
and conservation measures and services with projected and verifiable energy savings to 8
offset anticipated demand to be served by standard offer service, and the imposition of other 9
cost–effective demand–side management programs. 10
3. A. In order to prevent an excessive amount of load 11
being exposed to upward price risks and volatility, the Commission may stagger the dates 12
for the competitive wholesale auctions. 13
B. By regulation or order, the Commission may allow a date 14
on which a competitive wholesale auction takes place to be altered based on current market 15
conditions. 16
4. By regulation or order, the Commission may allow an 17
investor–owned electric company to refuse to accept some or all of the bids made in a 18
competitive wholesale auction in accordance with standards adopted by the Commission. 19
5. The investor–owned electric company shall publicly 20
disclose the names of all bidders and the names and load allocation of all successful bidders 21
90 days after all contracts for supply are executed. 22
6. AN INVESTOR –OWNED ELECTRIC COMPA NY MAY 23
MARKET STANDARD OFFE R SERVICE TO CUSTOME RS IN ITS SERVICE TE RRITORY IN 24
COMPLIANCE WITH APPR OPRIATE CONSUMER PROTECTIONS CONSISTENT WITH 25
THOSE THAT APPLY TO ELECTRICITY SUPPLIER S UNDER § 7–507 OF THIS SUBTITLE. 26
(5) An electric company may procure the electricity needed to meet its 27
standard offer service electricity supply obligation from any electricity supplier, including 28
an affiliate of the electric company. 29
(6) In order to meet long–term, anticipated demand in the State for 30
standard offer service and other electricity supply, the Commission may require or allow 31
an investor–owned electric company to construct, acquire, or lease, and operate, its own 32
generating facilities, and transmission facilities necessary to interconnect the generating 33
facilities with the electric grid, subject to appropriate cost recovery. 34
(7) (i) To determine whether an appropriate phased implementation of 35
electricity rates that is necessary to protect residential customers from the impact of 36
sudden and significant increases in electricity rates, the Commission in the case of an 37 16 HOUSE BILL 267
increase of 20% or more over the previous year’s total electricity rates, shall conduct 1
evidentiary proceedings, including public hearings. 2
(ii) 1. A deferral of costs as part of a phased implementation of 3
electricity rates by an investor–owned electric company shall be treated as a regulatory 4
asset to be recovered in accordance with a rate stabilization plan under Part III of this 5
subtitle or any other plan for phased implementation approved by the Commission. 6
2. A deferral of costs under this paragraph must be just, 7
reasonable, and in the public interest. 8
(iii) The Commission shall approve the recovery of deferred costs 9
under subparagraph (ii) of this paragraph as: 10
1. long–term recovery in accordance with a rate stabilization 11
plan under Part III of this subtitle; or 12
2. short–term recovery through a rate proceeding 13
mechanism approved by the Commission. 14
(iv) The Commission may approve a phasing in of increased costs by: 15
1. placing a cap on rates and allowing recovery over time; or 16
2. allowing rates to increase and providing for a rebate to 17
customers of any excess costs paid. 18
(8) (i) An electric cooperative that as of July 1, 2006, supplied its 19
standard offer service load through a portfolio of blended wholesale supply contracts of 20
short, medium, and long terms, and other appropriate electricity products and strategies, 21
as needed to meet demand in a cost–effective manner, may choose to continue to use a 22
blended portfolio: 23
1. as approved and modified by the electric cooperative’s 24
board of directors; and 25
2. with appropriate review for prudent cost recovery as 26
determined by the Commission. 27
(ii) The Commission may not set or enforce a termination date for 28
the procurement of supply through a managed portfolio previously approved by the 29
Commission. 30
(9) (i) The Commission, on request by an electric cooperative or on its 31
own initiative, shall initiate a proceeding to investigate options for a rate stabilization plan 32
to assist residential electric customers to gradually adjust to market rates over an extended 33
period of time. 34 HOUSE BILL 267 17
(ii) If an electric cooperative determines that total electric rates for 1
residential customers are anticipated to increase by more than 20% in a 12–month period 2
resulting from an increase in the cost of generation, the electric cooperative shall survey its 3
membership to determine whether to make a request to the Commission to initiate a 4
proceeding under subsection (a) of this section. 5
(iii) Notwithstanding subparagraphs (i) and (ii) of this paragraph, as 6
approved by the Commission, an electric cooperative may receive a modification in 7
distribution and transmission rates. 8
[(d) Notwithstanding the dates set forth in this section or any other law, customer 9
choice may not commence until legislation is enacted by the General Assembly to 10
restructure Maryland taxes to address the State and local tax implications of restructuring 11
the electric utility industry.] 12
(D) (1) THIS SUBSECTION APPLI ES TO ELECTRICITY SU PPLY OTHER 13
THAN STANDARD OFFER SERVICE. 14
(2) AN ELECTRICITY SUPPLIER: 15
(I) MAY OFFER ELECTRICIT Y ONLY AT A PRICE TH AT DOES NOT 16
EXCEED THE TRAILING 12–MONTH AVERAGE OF THE ELECTRIC COMPANY ’S 17
STANDARD OFFER SERVI CE RATE IN THE ELECT RIC COMPANY ’S SERVICE 18
TERRITORY AS OF THE DATE OF AGREEMENT WI TH THE CUSTOMER ; 19
(II) MAY OFFER ELECTRICIT Y SUPPLY ONLY: 20
1. FOR A TERM NOT TO EX CEED 12 MONTHS AT A TIME ; 21
AND 22
2. WITHOUT AUTOMATIC RE NEWAL; 23
(III) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , MAY 24
NOT OFFER A VARIABLE RATE OTHE R THAN A RATE THAT A DJUSTS FOR SEASONAL 25
VARIATION NOT MORE T HAN TWICE IN A SINGL E YEAR; 26
(IV) MAY NOT PAY A COMMIS SION OR OTHER INCENTIVE–BASED 27
COMPENSATION TO AN E NERGY SALESPERSON FO R ENROLLING CUSTOMER S; AND 28
(V) MAY NOT IMPOSE ON A CUSTOMER A FEE FOR 29
CANCELLATION OR EARL Y TERMINATION OF AN EL ECTRICITY SUPPLY AGR EEMENT. 30
18 HOUSE BILL 267
(3) PARAGRAPH (2)(III) OF THIS SUBSECTION D OES NOT PROHIBIT 1
THE OFFER AND USE OF TIME–OF–USE RATES THAT ESTAB LISH DIFFERENT RATES 2
FOR PERIODS WITHIN A SINGLE DAY. 3
(4) AN ELECTRICITY SUPPLI ER MAY NOT OFF ER OR PROVIDE 4
ELECTRICITY SUPPLY TO A CUSTOMER WHO RE CEIVES ENERGY ASSIST ANCE 5
THROUGH THE ELECTRIC UNIVERSAL SERVICE PROGRAM UNDER § 7–512.1 OF THIS 6
SUBTITLE OR THE ENERGY ASSISTANCE PROGRAM OF THE DEPARTMENT OF 7
HUMAN SERVICES UNDER TITLE 5, SUBTITLE 5A OF THE HUMAN SERVICES 8
ARTICLE. 9
(5) AN ELECTRICITY SUPPLI ER MAY NOT SELL TO AN ELECTRIC 10
COMPANY, AND AN ELECTRIC COMP ANY MAY NOT PURCHASE FROM AN ELECTRICITY 11
SUPPLIER, ACCOUNTS RECEIVABLE . 12
(E) AN ELECTRIC COMPANY A ND AN ELECTRICITY SU PPLIER SHALL 13
ESTABLISH A MECHANIS M FOR A CUSTOMER WHO SE ACCOUNT NUMBER OR 14
CUSTOMER CHOICE IDEN TIFICATION NUMBER HA S BEEN COMPROMISED T O 15
RECEIVE A REPLACEMENT ACCOUNT NUMBER OR CU STOMER CHOICE 16
IDENTIFICATION NUMBER O N REQUEST, SUBJECT TO VERIFICAT ION IN A MANNER 17
APPROVED BY THE COMMISSION. 18
(F) AS APPROVED BY THE COMMISSION BY REGULAT ION OR ORDER , EACH 19
ELECTRIC COMPANY AND EACH ELECTRICITY SUP PLIER SHALL ALLOW A CUSTOMER 20
TO INDICATE THE CUST OMER’S INTENTION TO REMAI N ON STANDARD OFFER 21
SERVICE INDEFINITELY AND NOT TO RECEIVE DIRECTED MARKETING CONTACTS 22
FROM ELECTRIC ITY SUPPLIERS THROUG H THE IMPLEMENTATION OF A “DO NOT 23
TRANSFER” LIST ONTO WHICH THE CUSTOMER MAY REQUEST TO BE PLACED. 24
(G) ON OR BEFORE THE 15TH DAY OF EACH MONTH , EACH ELECTRIC 25
COMPANY SHALL SUBMIT A REPORT TO THE COMMISSION ON CUSTOMER CHOICE I N 26
ITS SERVICE TERRITOR Y FOR THE PRECEDING MO NTH, INCLUDING: 27
(1) THE TOTAL KILOWATT –HOURS DISTRIBUTED TO CUSTOMERS 28
PURCHASING ELECTRICI TY FROM A THIRD –PARTY ELECTRICITY SUPPLIER ; 29
(2) THE TOTAL SUPPL Y COST CHARGED TO CUSTOMERS PURCHASING 30
ELECTRICITY FROM A T HIRD–PARTY ELECTRICITY SU PPLIER; 31
(3) THE TOTAL COST THAT CUSTOMERS SPECIFIED IN ITEM (2) OF 32
THIS SUBSECTION WOULD HAVE PAID UNDE R STANDARD OFFER SER VICE; 33
HOUSE BILL 267 19
(4) THE NET THIRD–PARTY TOTAL COST COMPARED TO THE NET 1
STANDARD OFFER SERVI CE COST; 2
(5) THE TOTAL THIRD–PARTY AVERAGE RATE ; 3
(6) THE STANDARD OFFER S ERVICE AVERAGE RATE ; 4
(7) THE DIFFERENCE BETWEEN THE TOTAL THIRD–PARTY AVERAGE 5
RATE AND THE STANDARD OFFER SERVI CE AVERAGE RATE ; 6
(8) THE THIRD–PARTY AVERAGE RESIDENTIAL RATES BROKEN OUT 7
BY SUPPLIER AND THE VARIANCE BETWEEN EACH OF THESE RATES AND THE 8
STANDARD OFFER SERVI CE AVERAGE RATE ; 9
(9) THE THIRD–PARTY AVERAGE GENERAL SERVICE NOND EMAND 10
RATES BROKEN OUT BY SUPPLIER AND THE VAR IANCE BETWEEN EACH OF THESE 11
THIRD–PARTY RATES AND THE STANDARD OFF ER SERVICE AVERAGE R ATE; 12
(10) THE THIRD–PARTY AVERAGE GENERAL SERVICE DEMA ND RATES 13
BROKEN OUT BY SUPPLIER AND THE VARIANCE BET WEEN EACH OF THESE 14
THIRD–PARTY RATES AND THE STANDARD OFFER SERVI CE AVERAGE RATE ; 15
(11) THE THIRD–PARTY AVERAGE LARGE POWER DEMAND R ATES 16
BROKEN OUT BY SUPPLI ER AND THE VARIANCE BETWEEN EACH OF THESE 17
THIRD–PARTY RATES AND TH E STANDARD OFFER SER VICE AVERAGE RATE ; AND 18
(12) OTHER PERTINENT INFO RMATION THE COMMISSION CONSIDERS 19
APPROPRIATE . 20
[(e)] (H) The Commission shall, by regulation or order, adopt procedures to 21
implement this section[, including the allocation of any unused opportunity for customer 22
choice among customer classes]. 23
[(f)] (I) Except as provided in § 7–510.3 of this subtitle, a county or municipal 24
corporation may not act as an aggregator unless the Commission determines there is not 25
sufficient competition within the boundaries of the county or municipal corporation. 26
7–602. 27
The General Assembly finds and declares that the purpose of this subtitle is to: 28
(1) clarify existing law regarding the provision of competitive retail gas 29
supply and gas supply services in the State; 30
20 HOUSE BILL 267
(2) require the Commission to license gas suppliers AND ENERGY 1
SALESPERSONS ; 2
(3) authorize the Commission to adopt complaint procedures; 3
(4) establish certain requirements relating to the competitiveness of retail 4
gas supply and gas supply services markets; and 5
(5) establish standards for the protection of consumers. 6
7–603. 7
(a) The Commission shall license gas suppliers AND ENERGY SALESPERS ONS 8
and shall have the same authority as the Commission has under [§ 7–507] §§ 7–507 AND 9
7–507.1 of this title for electricity suppliers AND ENERGY SALESPERS ONS, including the 10
authority to: 11
(1) DENY, revoke [or], suspend, OR REFUSE TO RENEW a license; 12
(2) impose a moratorium, civil penalty, or other remedy; or 13
(3) order a refund for or credit to a customer. 14
(b) The Commission shall adopt licensing requirements and procedures for gas 15
suppliers AND ENERGY SALESPERS ONS that protect consumers, the public interest, and 16
the collection of all State and local taxes, CONSISTENT WITH THE REQUI REMENTS FOR 17
ELECTRICITY SUPPLIER S AND ENERGY SALESPERS ONS UNDER SUBTITLE 5 OF THIS 18
TITLE. 19
7–603.1. 20
(A) (1) FOR JUST CAUSE ON THE COMMISSION’S OWN INVESTIGATION OR 21
ON COMPLAINT OF THE OFFICE OF PEOPLE’S COUNSEL, THE ATTORNEY GENERAL, 22
OR AN AFFECTED PARTY , THE COMMISSION MAY : 23
(I) DENY A LICENSE TO , OR REVOKE, SUSPEND, OR REFUSE TO 24
RENEW THE LICENSE OF , A GAS SUPPLIER OR AN ENERGY SALESPERSON ; 25
(II) IMPOSE A CIVIL PENAL TY OR OTHER REMEDY ; 26
(III) ORDER A REFUND OR CR EDIT TO A CUSTOMER; OR 27
(IV) IMPOSE A MORATORIUM ON ADDING OR SOLICIT ING 28
ADDITIONAL CUSTOMERS BY THE GAS SUPPLIER OR ENERGY SALESPERSO N. 29
HOUSE BILL 267 21
(2) A CIVIL PENALTY MAY BE IMPOSED IN ADDITION TO THE 1
COMMISSION’S DECISION TO DENY, REVOKE, SUSPEND, OR REFUSE TO RENEW A 2
LICENSE OR IMPOSE A MORATORI UM. 3
(3) JUST CAUSE INCLUDES : 4
(I) INTENTIONALLY PROVID ING FALSE INFORMATIO N TO THE 5
COMMISSION; 6
(II) SWITCHING, OR CAUSING TO BE SWI TCHED, THE GAS 7
SUPPLY FOR A CUSTOME R WITHOUT FIRST OBTA INING THE CUSTOMER ’S 8
PERMISSION; 9
(III) FAILING TO PROVIDE GAS FOR ITS CUSTOMERS ; 10
(IV) COMMITTING FRAUD OR ENGAGING IN DECEPTIV E 11
PRACTICES; 12
(V) FAILING TO MAINTAIN FINANCIAL INTEGRITY ; 13
(VI) VIOLATING A COMMISSION REGULATION OR ORDER; 14
(VII) FAILING TO PAY , COLLECT, REMIT, OR CALCULATE 15
ACCURATELY APPLICABL E STATE OR LOCAL TAXES ; 16
(VIII) VIOLATING A PROVISIO N OF THIS ARTICLE OR ANY OTHER 17
APPLICABLE CONSUMER PROTECTION LAW OF TH E STATE; 18
(IX) CONVICTION OF A FELO NY BY THE LICENSEE O R PRINCIPAL 19
OF THE LICENSEE OR A NY CRIME INVOLVING F RAUD, THEFT, OR DECEIT; 20
(X) DENIAL, SUSPENSION, OR REVOCATION OF OR REFUSAL TO 21
RENEW A LICENSE BY A NY STATE OR FEDERAL AUTH ORITY; AND 22
(XI) COMMISSION OF ANY OF THE ACTS DESCRIBED I N ITEMS (I) 23
THROUGH (X) OF THIS PARAGRAPH BY A PERSON THAT IS AN AF FILIATE OF THE 24
LICENSEE OR THAT IS UNDER COMMON CONTROL WITH THE LICENSEE . 25
(B) (1) A GAS SUPPLIER , AN ENERGY SALESPERSO N, OR ANY OTHER 26
PERSON SELLING OR OF FERING TO SELL GAS I N THE STATE IN VIOLATION OF THIS 27
SECTION OR § 7–603 OF THIS SUBTITLE, AFTER NOTICE AND AN OPPORTUNITY FOR 28
A HEARING, IS SUBJECT TO: 29
22 HOUSE BILL 267
(I) A CIVIL PENALTY OF N OT MORE THAN $25,000 FOR THE 1
VIOLATION; 2
(II) LICENSE DENIAL, REVOCATION , OR SUSPENSION OR 3
REFUSAL TO RENEW THE LICENSE; OR 4
(III) BOTH. 5
(2) EACH DAY OR PART OF A DAY A VIOLATION CONTINUE S IS A 6
SEPARATE VIOLATION . 7
(3) EACH CUSTOMER TO WHOM GAS IS SOLD OR OFFERED I N 8
VIOLATION OF THIS SE CTION IS A SEPARATE VIOLATION. 9
(4) THE COMMISSION SHALL DETE RMINE THE AMOUNT OF ANY CIVIL 10
PENALTY AFTER CONSID ERING: 11
(I) THE NUMBER OF PREVIO US VIOLATIONS OF ANY PROVISION 12
OF THIS DIVISION BY THE GAS SUPPLIER, ENERGY SALESPERSON , OR OTHER 13
PERSON; 14
(II) THE GRAVITY OF THE C URRENT VIOLATION ; 15
(III) THE GOOD FAITH OF TH E GAS SUPPLIER, ENERGY 16
SALESPERSON , OR OTHER PERSON CHAR GED IN ATTEMPTING TO ACHIEVE 17
COMPLIANCE AFTER NOT IFICATION OF THE VIO LATION; AND 18
(IV) ANY OTHER MATTER THA T THE COMMISSION CONSIDERS 19
APPROPRIATE AND RELE VANT. 20
(C) IN CONNECTION WITH A CONSUMER COMPLA INT OR COMMISSION 21
INVESTIGATION UNDER THIS SECTION OR § 7–603 OF THIS SUBTITLE , A GAS 22
SUPPLIER, AN ENERGY SALESPERSO N, AND ANY OTHER PERSON SELLING OR 23
OFFERING TO SELL GAS IN THE STATE SHALL PROVIDE TO THE COMMISSION ACCESS 24
TO ANY ACCOUNTS , BOOKS, PAPERS, AND DOCUMENTS THAT THE COMMISSION 25
CONSIDERS NECESSARY TO RESOLVE THE MATTE R AT ISSUE. 26
(D) THE COMMISSION MAY ORDER THE GAS SUPPLIER, ENERGY 27
SALESPERSON , OR OTHER PERSON TO CEASE ADDIN G OR SOLICITING ADDI TIONAL 28
CUSTOMERS OR TO CEAS E SERVING CUSTOMERS IN THE STATE. 29
7–604. 30
HOUSE BILL 267 23
(a) On or before July 1, 2001, the Commission shall adopt consumer protection 1
orders or regulations for gas suppliers AND ENERGY SALESPERS ONS that: 2
(1) protect consumers from discriminatory, unfair, deceptive, and 3
anticompetitive acts and practices in the marketing, selling, or distributing of natural gas; 4
(2) provide for contracting, enrollment, and billing practices and 5
procedures; and 6
(3) the Commission considers necessary to protect the consumer. 7
(b) In adopting orders and regulations under this section, unless the Commission 8
determines that the circumstances do not require consistency, the Commission shall: 9
(1) provide customers with protections consistent with applicable 10
protections provided to retail electric customers; and 11
(2) impose appropriate requirements on gas suppliers AND ENERGY 12
SALESPERSONS that are consistent with applicable requirements imposed on electricity 13
suppliers AND ENERGY SALES PERSONS. 14
7–605. 15
(a) This subtitle may not be construed to: 16
(1) affect the authority of the Division of Consumer Protection of the Office 17
of the Attorney General to enforce violations of Titles 13 and 14 of the Commercial Law 18
Article or any other applicable State law or regulation in connection with the activities of 19
gas suppliers OR ENERGY SALESPERSO NS; or 20
(2) exempt gas companies [and], gas suppliers, AND ENERGY 21
SALESPERSONS from otherwise applicable State or federal consumer protection and 22
antitrust laws. 23
(b) The Commission shall consult with the Consumer Protection Division of the 24
Office of the Attorney General before adopting regulations designed to protect consumers 25
of gas supply and gas supply services. 26
(c) The People’s Counsel has the same authority in licensing, complaint, and 27
dispute resolution proceedings as the People’s Counsel has under Subtitle 5 of this title and 28
Title 2 of this article. 29
(d) In connection with a consumer complaint or Commission investigation under 30
this subtitle, a gas supplier OR AN ENERGY SALESPE RSON shall provide to the 31
Commission access to any accounts, books, papers, and documents that the Commission 32
considers necessary to resolve a matter in dispute. 33 24 HOUSE BILL 267
7–705. 1
(a) Each electricity supplier shall submit a report to the Commission each year in 2
a form and by a date specified by the Commission that: 3
(1) (i) demonstrates that the electricity supplier has complied with the 4
applicable renewable energy portfolio standard under § 7–703 of this subtitle and includes 5
the submission of the required amount of renewable energy credits; or 6
(ii) demonstrates the amount of electricity sales by which the 7
electricity supplier failed to meet the applicable renewable energy portfolio standard; [and] 8
(2) documents the level of participation of minority business enterprises 9
and minorities in the activities that support the creation of renewable energy credits used 10
to satisfy the standard under § 7–703 of this subtitle, including development, installation, 11
and operation of generating facilities that create credits; AND 12
(3) DOCUMENTS THE AMOUNT S AND TYPES OF GENER ATION 13
ASSOCIATED WITH RENE WABLE ENERGY CREDITS PURCHASED IN COMPLIA NCE 14
WITH § 7–707(B) OF THIS SUBTITLE DURING THE REPORTING PERIOD . 15
7–707. 16
(A) IN THIS SECTION , “GREEN POWER ” MEANS ENERGY SOURCES OR 17
RENEWABLE ENERGY CRE DITS THAT ARE MARKET ED AS GREEN , ECO–FRIENDLY, 18
ENVIRONMENTALLY FRIE NDLY OR RESPONSIBLE , CARBON–FREE, RENEWABLE , 19
100% RENEWABLE , 100% WIND, 100% HYDRO, 100% SOLAR, 100% EMISSION–FREE, 20
OR SIMILAR CLAIMS . 21
(B) (1) ON AND AFTER JANUARY 1, 2025, AN ELECTRICITY SUPPL IER 22
SHALL PURCHASE RENEW ABLE ENERGY CREDITS FOR EACH YEAR THE EL ECTRICITY 23
SUPPLIER OFFERS GREE N POWER FOR SALE TO RESIDENTIAL RETAIL ELECTRIC 24
CUSTOMERS . 25
(2) THE CREDITS THAT AN E LECTRICITY SUPPLIER PURCHASES 26
UNDER PARAGRAPH (1) OF THIS SUBSECTION SHALL BE : 27
(I) GENERATED : 28
1. IN THE PJM REGION; OR 29
2. OUTSIDE THE PJM REGION ONLY IF THE 30
ELECTRICITY IS DELIV ERED INTO THE PJM REGION; AND 31
HOUSE BILL 267 25
(II) RETIRED IN A PJM ENVIRONMENTAL INFORMATION 1
SERVICES, INC., GENERATION ATTRIBUTE TRACKING SYSTEM RESE RVE 2
SUBACCOUNT ACCESS IBLE BY THE COMMISSION. 3
(C) AN ELECTRICITY SUPPLI ER THAT CLAIMS IN TH E ELECTRICITY 4
SUPPLIER’S MARKETING OF ELECT RICITY TO RESIDENTIA L RETAIL ELECTRIC 5
CUSTOMERS THAT THE C USTOMER WILL BE PURC HASING GREEN POWER S HALL 6
INCLUDE THE FOLLOWIN G DISCLOSURE OR A SIMILAR DISCLOS URE APPROVED BY 7
THE COMMISSION: 8
“IF YOU PURCHASE THIS ENERGY PLAN , YOU ARE AGREEING TO PURCHASE 9
LOCAL UTILITY DISTRI BUTION GRID ELECTRIC ITY THAT IS PAIRED W ITH 10
RENEWABLE ENERGY CRE DITS (“RECS”) IN AN AMOUNT SUFFICI ENT TO MATCH THE 11
PERCENT OF “GREEN POWER ” ELECTRICITY IN YOUR CONTRACT.”. 12
13–101. 13
(a) This section does not apply to a violation of the following provisions of this 14
article: 15
(1) Title 5, Subtitle 4; 16
(2) Title 7, Subtitle 1; 17
(3) Title 8, Subtitles 1 and 3; and 18
(4) Title 9, Subtitle 3. 19
(b) A person may not fail, neglect, or refuse to comply with any provision of this 20
division or any effective and outstanding direction, ruling, order, rule, regulation, or 21
decision of the Commission. 22
(c) An individual who knowingly violates or knowingly aids or abets a public 23
service company in the violation of subsection (b) of this section or any provision of this 24
division: 25
(1) is guilty of a misdemeanor; and 26
(2) unless a different punishment is specifically provided by law, on 27
conviction is subject to a fine not exceeding $1,000 for a first offense and not exceeding 28
$5,000 for each additional or subsequent offense. 29
13–201. 30
(a) This section does not apply to a violation of the following provisions of this 31
article: 32 26 HOUSE BILL 267
(1) Title 5, Subtitle 4; 1
(2) Title 7, Subtitle 1; 2
(3) § 7–213 as it applies to electric cooperatives; 3
(4) Title 8, Subtitles 1 and 3; 4
(5) Title 9, Subtitle 3; and 5
(6) Title 8, Subtitle 4. 6
(b) (1) Except as provided in paragraph (2) of this subsection, the Commission 7
may impose a civil penalty not exceeding $25,000 against a person who violates a provision 8
of this division, or an effective and outstanding direction, ruling, order, rule, or regulation 9
of the Commission. 10
(2) The civil penalty that the Commission may impose on a common carrier 11
for each violation may not exceed $2,500. 12
(e) (3) A civil penalty assessed for a violation of [§ 7–505(b)(7), § 7–507, § 13
7–603, § 7–604, or § 7–606] § 7–505(B)(7), § 7–507, § 7–507.1, § 7–603, § 7–603.1, § 14
7–604, § 7–606, OR § 7–707 of this article, or a rule, an order, or a regulation adopted 15
under any of those sections, shall be paid into the Retail Choice Customer Education and 16
Protection Fund under § 7–310 of this article. 17
SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 18
Assembly that: 19
(1) the Public Service Commission shall establish a division within the 20
Commission with the specific responsibility to receive, investigate, and resolve, including 21
by disciplinary actions and prosecution, complaints against electricity suppliers, gas 22
suppliers, and energy salespersons for violations of this Act with respect to retail 23
customers; 24
(2) at least two additional Position Identification Numbers (PINs) shall be 25
created and assigned to the new division, in addition to existing Commission personnel in 26
the Commission’s Consumer Affairs Division, who may be assigned to assist the new 27
division in its responsibilities under this Act; 28
(3) the functions of the new division shall be funded by licensing and 29
renewal fees imposed on electricity suppliers, gas suppliers, and energy salespersons under 30
this Act; and 31
(4) a special assessment on public service companies under Section 3 of this 32
Act shall be used for initial funding of the new division. 33 HOUSE BILL 267 27
SECTION 3. AND BE IT FURTHER ENACTED, That: 1
(a) Notwithstanding any other provision of law, for fiscal year 2025 only, in 2
addition to the amounts appropriated in the budget bill for fiscal year 2025, the Public 3
Service Commission may impose up to $275,000 as a special assessment using the 4
assessment process authorized under § 2–110 of the Public Utilities Article, provided that: 5
(1) the assessment shall be imposed only on those electric companies, 6
electricity suppliers, gas companies, and gas suppliers otherwise subject to the assessment 7
under § 2–110 of the Public Utilities Article; and 8
(2) the limit under § 2–110(c)(12) of the Public Utilities Article does not 9
apply to any assessment made under this section. 10
(b) (1) The amounts collected under subsection (a) of this section may be 11
expended for fiscal year 2025 for the support of the Commission in accordance with an 12
approved budget amendment. 13
(2) Notwithstanding § 2–110(c)(10) of the Public Utilities Article, any 14
unexpended funds at the end of fiscal year 2025 that were collected under this section: 15
(i) shall be considered encumbered by the Public Service 16
Commission by June 30, 2025; and 17
(ii) may not be deducted from the appropriation for fiscal year 2026. 18
(c) The bill sent to each electric company, electricity supplier, gas company, and 19
gas supplier subject to the assessment under subsection (a) of this section shall equal the 20
product of multiplying: 21
(1) the amount authorized to be collected under this section; and 22
(2) the ratio of the gross operating revenues of the entity subject to the 23
special assessment to the total gross operating revenues for all entities subject to the 24
assessment. 25
SECTION 4. AND BE IT FURTHER ENACTED, That : 26
(1) the licenses of electricity suppliers and gas suppliers that are licensed 27
by the Public Service Commission as of July 1, 2024, shall expire on a staggered basis as 28
determined by the Commission, such that equal numbers of licenses shall expire 29
throughout each of the following 3 years but not later than June 30, 2027; 30
(2) the licenses of energy salespersons who are licensed by the Commission 31
on or before June 30, 2027, shall expire on a staggered basis as determined by the 32
Commission, such that equal numbers of licenses shall expire each year; and 33 28 HOUSE BILL 267
(3) all new and renewed licenses for electricity suppliers, gas suppliers, and 1
energy salespersons shall be for a term not exceeding 3 years. 2
SECTION 5. AND BE IT FURTHER ENACTED, That a presently existing obligation 3
or contract right may not be impaired in any way by this Act. 4
SECTION 6. AND BE IT FURTHER ENACTED, That § 7 –510(d) of the Public 5
Utilities Article, as enacted by Section 1 of this Act, shall be construed to apply to all 6
electricity supply agreements and gas supply agreements entered into or renewed on or 7
after January 1, 2025. 8
SECTION 7. AND BE IT FURTHER ENACTED, That this Act shall be construed to 9
apply only prospectively and may not be applied or interpreted to have any effect on or 10
application to any electricity supply agreement or gas supply agreement that is in effect on 11
or before December 31, 2024. 12
SECTION 8. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
1, 2024. 14