Maryland 2024 Regular Session

Maryland House Bill HB267 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0267
6	6
7	7	HOUSE BILL 267
8	8	C5, I3, M5 4lr0435
9	9	CF SB 1
10	10	By: Delegate Crosby
11	11	Introduced and read first time: January 12, 2024
12	12	Assigned to: Economic Matters
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Electricity and Gas – Retail Supply – Regulation and Consumer Protection 2
19	19
20	20	FOR the purpose of establishing an energy salesperson license for certain persons that offer 3
21	21	or sell electricity supply agreements or gas supply agreements to customers in the 4
22	22	State; providing for the terms of electricity supplier, energy salesperson, and gas 5
23	23	supplier licenses issued by the Public Service Commission; establishing certain 6
24	24	licensing and renewal requirements for certain persons; providing for certain 7
25	25	disciplinary actions by the Commission against electricity suppliers, gas suppliers, 8
26	26	and energy salespersons for certain acts; altering and establishing the amounts of 9
27	27	certain civil penalties that may be assessed with respect to electricity suppliers, gas 10
28	28	suppliers, and energy salespersons for certain violations; establishing certain 11
29	29	restrictions on the offer and sale of certain electricity supply; requiring an electric 12
30	30	company and an electricity supplier to establish a mechanism for a customer to 13
31	31	request and receive a certain replacement number under certain circumstances and 14
32	32	to allow a customer to be placed on a certain list regarding electricity service; 15
33	33	requiring electric companies to submit to the Commission a certain monthly report 16
34	34	on customer choice; altering the contents of a certain annual report that each 17
35	35	electricity supplier is required to submit to the Commission; requiring an electricity 18
36	36	supplier that offers green power for sale to residential customers to purchase certain 19
37	37	renewable energy credits in excess of the renewable energy portfolio standard in a 20
38	38	certain year in an amount equal to the amount of electricity sold to residential 21
39	39	customers as green power in that year; requiring certain electricity suppliers 22
40	40	marketing and selling green power to residential customers to include a certain 23
41	41	disclosure in certain marketing materials; stating the intent of the General 24
42	42	Assembly regarding the establishment of a certain division within the Commission; 25
43	43	allowing the Commission to impose on certain persons up to a certain amount as a 26
44	44	special assessment in a certain manner; allowing certain funds to be expended for 27
45	45	certain purposes in accordance with an approved budget amendment; and generally 28
46	46	relating to retail energy supply and consumer protection. 29
47	47
48	48	BY repealing and reenacting, without amendments, 30 2 HOUSE BILL 267
49	49
50	50
51	51	Article – Public Utilities 1
52	52	Section 1–101(a), (l), (p), (ee), and (ff), 7–310(b), 13–101, and 13–201(a) and (b) 2
53	53	Annotated Code of Maryland 3
54	54	(2020 Replacement Volume and 2023 Supplement) 4
55	55
56	56	BY adding to 5
57	57	Article – Public Utilities 6
58	58	Section 1–101(l–1), 7–507.1, 7–603.1, and 7–707 7
59	59	Annotated Code of Maryland 8
60	60	(2020 Replacement Volume and 2023 Supplement) 9
61	61
62	62	BY repealing and reenacting, with amendments, 10
63	63	Article – Public Utilities 11
64	64	Section 7–310(e), 7–507, 7–510, 7–602, 7–603, 7–604, 7–605, 7–705(a), and 12
65	65	13–201(e)(3) 13
66	66	Annotated Code of Maryland 14
67	67	(2020 Replacement Volume and 2023 Supplement) 15
68	68
69	69	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
70	70	That the Laws of Maryland read as follows: 17
71	71
72	72	Article – Public Utilities 18
73	73
74	74	1–101. 19
75	75
76	76	(a) In this division the following words have the meanings indicated. 20
77	77
78	78	(l) (1) “Electricity supplier” means a person: 21
79	79
80	80	(i) who sells: 22
81	81
82	82	1. electricity; 23
83	83
84	84	2. electricity supply services; 24
85	85
86	86	3. competitive billing services; or 25
87	87
88	88	4. competitive metering services; or 26
89	89
90	90	(ii) who purchases, brokers, arranges, or markets electricity or 27
91	91	electricity supply services for sale to a retail electric customer. 28
92	92
93	93	(2) “Electricity supplier” includes an electric company, an aggregator, a 29
94	94	broker, and a marketer of electricity. 30
95	95
96	96	(3) “Electricity supplier” does not include: 31
97	97	HOUSE BILL 267 3
98	98
99	99
100	100	(i) the following persons who supply electricity and electricity 1
101	101	supply services solely to occupants of a building for use by the occupants: 2
102	102
103	103	1. an owner/operator who holds ownership in and manages 3
104	104	the internal distribution system serving the building; or 4
105	105
106	106	2. a lessee/operator who holds a leasehold interest in and 5
107	107	manages the internal distribution system serving the building; 6
108	108
109	109	(ii) a person who generates on–site generated electricity; or 7
110	110
111	111	(iii) a person that owns or operates equipment used for charging 8
112	112	electric vehicles, including a person that owns or operates: 9
113	113
114	114	1. an electric vehicle charging station; 10
115	115
116	116	2. electric vehicle supply equipment; or 11
117	117
118	118	3. an electric vehicle charging station service company or 12
119	119	provider. 13
120	120
121	121	(L–1) “ENERGY SALESPERSON ” MEANS AN INDIVIDUAL WHO IS LICENSED BY 14
122	122	THE COMMISSION TO SELL : 15
123	123
124	124	(1) ELECTRICITY OR ELECT RICITY SUPPLY SERVIC ES TO RETAIL 16
125	125	ELECTRIC CUSTOMERS ON BEHALF OF AN ELEC TRICITY SUPPLIER AS AN EMPLOYEE 17
126	126	OR AGENT OF THE ELEC TRICITY SUPPLIER ; OR 18
127	127
128	128	(2) GAS OR GAS SUPPLY SE RVICES TO RETAIL GAS CUSTOMERS ON 19
129	129	BEHALF OF A GAS SUPP LIER AS AN EMPLOYEE OR AGENT OF THE GAS SUPPLIER. 20
130	130
131	131	(p) (1) “Gas supplier” means a person who: 21
132	132
133	133	(i) sells: 22
134	134
135	135	1. gas; 23
136	136
137	137	2. gas supply services; or 24
138	138
139	139	3. competitive billing services for gas supply services; or 25
140	140
141	141	(ii) purchases, brokers, arranges, or markets gas or gas supply 26
142	142	services for sale to a retail gas customer. 27
143	143
144	144	(2) “Gas supplier” includes an aggregator, a broker, and a marketer of gas. 28
145	145	4 HOUSE BILL 267
146	146
147	147
148	148	(3) “Gas supplier” does not include: 1
149	149
150	150	(i) a gas company to the extent that the gas company provides gas 2
151	151	sales or delivery service at rates regulated by the Commission; 3
152	152
153	153	(ii) the following persons who supply gas solely to occupants of a 4
154	154	building for use by the occupants: 5
155	155
156	156	1. an owner/operator who holds ownership in and manages 6
157	157	the internal distribution system serving the building; and 7
158	158
159	159	2. a lessee/operator who holds a leasehold interest in and 8
160	160	manages the internal distribution system serving the building; or 9
161	161
162	162	(iii) a person who transmits or distributes gas within a site owned by 10
163	163	the person or the person’s affiliate that is incidental to a primarily landlord–tenant 11
164	164	relationship. 12
165	165
166	166	(ee) (1) “Retail electric customer” means a purchaser of electricity for end use 13
167	167	in the State. 14
168	168
169	169	(2) “Retail electric customer” includes: 15
170	170
171	171	(i) a person that owns or operates equipment used for charging 16
172	172	electric vehicles, including: 17
173	173
174	174	1. an electric vehicle charging station; 18
175	175
176	176	2. electric vehicle supply equipment; or 19
177	177
178	178	3. an electric vehicle charging station service company or 20
179	179	provider; and 21
180	180
181	181	(ii) a person that charges an electric vehicle at an electric vehicle 22
182	182	charging station that the person owns or operates. 23
183	183
184	184	(3) “Retail electric customer” does not include: 24
185	185
186	186	(i) an occupant of a building in which the owner/operator or 25
187	187	lessee/operator manages the internal distribution system serving the building and supplies 26
188	188	electricity and electricity supply services solely to occupants of the building for use by the 27
189	189	occupants; 28
190	190
191	191	(ii) a person who generates on–site generated electricity, to the 29
192	192	extent the on–site generated electricity is consumed by that person or its tenants; or 30
193	193	HOUSE BILL 267 5
194	194
195	195
196	196	(iii) except as provided in paragraph (2)(ii) of this subsection, a 1
197	197	person that charges an electric vehicle at an electric vehicle charging station. 2
198	198
199	199	(ff) (1) “Retail gas customer” means a purchaser of gas for end use in the State. 3
200	200
201	201	(2) “Retail gas customer” excludes an occupant of a building in which the 4
202	202	owner/operator or lessee/operator manages the internal distribution system serving the 5
203	203	building and supplies gas and gas supply services solely to occupants of the building for use 6
204	204	by the occupants. 7
205	205
206	206	7–310. 8
207	207
208	208	(b) There is a Retail Choice Customer Education and Protection Fund. 9
209	209
210	210	(e) (1) The Fund is a special, [nonlasping] NONLAPSING fund that is not 10
211	211	subject to § 7–302 of the State Finance and Procurement Article. 11
212	212
213	213	(2) The State Treasurer shall hold the Fund separately, and the 12
214	214	Comptroller shall account for the Fund. 13
215	215
216	216	7–507. 14
217	217
218	218	(a) A person, other than an electric company providing standard offer service 15
219	219	under § 7–510(c) of this subtitle, a municipal electric utility serving customers solely in its 16
220	220	distribution territory, or a community choice aggregator under § 7–510.3 of this subtitle, 17
221	221	may not engage in the business of an electricity supplier in the State unless the person 18
222	222	holds a license issued by the Commission. 19
223	223
224	224	(b) (1) An application for an electricity supplier license shall: 20
225	225
226	226	[(1)] (I) be made to the Commission in writing on a form adopted by the 21
227	227	Commission; 22
228	228
229	229	[(2)] (II) be verified by oath or affirmation; and 23
230	230
231	231	[(3)] (III) contain information that the Commission requires, including: 24
232	232
233	233	[(i)] 1. proof of technical and managerial competence; 25
234	234
235	235	[(ii)] 2. proof of compliance with all applicable requirements of the 26
236	236	Federal Energy Regulatory Commission, and any independent system operator or regional 27
237	237	or system transmission operator to be used by the licensee; 28
238	238
239	239	[(iii)] 3. a certification of compliance with applicable federal and 29
240	240	State environmental laws and regulations that relate to the generation of electricity; and 30
241	241	6 HOUSE BILL 267
242	242
243	243
244	244	[(iv)] 4. payment of the applicable licensing fee. 1
245	245
246	246	(2) (I) THE TERM OF AN ELECTRICI TY SUPPLIER LICENSE IS 3 2
247	247	YEARS. 3
248	248
249	249	(II) THE TERMS OF LICENSES MAY BE STAGGERED AS 4
250	250	DETERMINED BY THE COMMISSION. 5
251	251
252	252	(III) UNLESS A LICENSE IS R ENEWED FOR A 3–YEAR TERM IN 6
253	253	ACCORDANCE WITH THIS SUBSECTION, THE LICENSE EXPIRES ON THE DAT E THAT 7
254	254	THE COMMISSION SETS . 8
255	255
256	256	(IV) A LICENSEE MAY RENEW A LICENSE FOR AN ADDIT IONAL 9
257	257	3–YEAR TERM BEFORE THE LICENSE EXPIRES IF T HE LICENSEE: 10
258	258
259	259	1. OTHERWISE IS ENTITLE D TO BE LICENSED ; 11
260	260
261	261	2. SUBMITS TO THE COMMISSION A RENEWAL 12
262	262	APPLICATION ON THE F ORM THAT THE COMMISSION PROVIDES ; AND 13
263	263
264	264	3. PAYS TO THE COMMISSION THE APPLIC ABLE 14
265	265	RENEWAL FEE SET BY T HE COMMISSION. 15
266	266
267	267	(c) The Commission shall, by regulation or order: 16
268	268
269	269	(1) require proof of financial integrity; 17
270	270
271	271	(2) require a licensee to post a bond or other similar instrument[,] if, in the 18
272	272	Commission’s judgment, the bond or similar instrument is necessary to insure an electricity 19
273	273	supplier’s financial integrity; 20
274	274
275	275	(3) require a licensee to: 21
276	276
277	277	(i) provide proof that [it] THE LICENSEE is qualified to do business 22
278	278	in the State with the Department of Assessments and Taxation; and 23
279	279
280	280	(ii) agree to be subject to all applicable taxes; and 24
281	281
282	282	(4) adopt any other requirements [it] THE COMMISSION finds to be in the 25
283	283	public interest, which may include different requirements for: 26
284	284
285	285	(i) electricity suppliers that serve only large customers; and 27
286	286
287	287	(ii) the different categories of electricity suppliers. 28
288	288	HOUSE BILL 267 7
289	289
290	290
291	291	(d) A license issued under this section may not be transferred without prior 1
292	292	Commission approval. 2
293	293
294	294	(e) The Commission shall adopt regulations or issue orders to: 3
295	295
296	296	(1) protect consumers, electric companies, [and] electricity suppliers, AND 4
297	297	ENERGY SALESPERSONS from anticompetitive and abusive practices; 5
298	298
299	299	(2) require each electricity supplier AND EACH ENERGY SALESPERSON to 6
300	300	provide, in addition to the requirements under § 7–505(b)(5) of this subtitle, adequate and 7
301	301	accurate customer information to enable customers to make informed choices regarding the 8
302	302	purchase of any electricity services offered by the electricity supplier; 9
303	303
304	304	(3) establish reasonable restrictions on telemarketing; 10
305	305
306	306	(4) establish procedures for contracting with customers; 11
307	307
308	308	(5) establish requirements and limitations relating to deposits, billing, 12
309	309	collections, and contract cancellations; 13
310	310
311	311	(6) establish provisions providing for the referral of a delinquent account 14
312	312	by an electricity supplier to the standard offer service under § 7–510(c) of this subtitle; and 15
313	313
314	314	(7) establish procedures for dispute resolution. 16
315	315
316	316	(f) In accordance with regulations or orders of the Commission, electricity bills, 17
317	317	for competitive and regulated electric services, provided to consumers may provide, in 18
318	318	addition to the requirements of § 7–505(b)(5) of this subtitle and subsection (e)(2) of this 19
319	319	section, the following information: 20
320	320
321	321	(1) the identity and phone number of the electricity supplier of the service; 21
322	322
323	323	(2) sufficient information to evaluate prices and services; and 22
324	324
325	325	(3) information identifying whether the price is regulated or competitive. 23
326	326
327	327	(g) (1) An electricity supplier, AN ENERGY SALESPERSO N, or any person or 24
328	328	governmental unit may not, without first obtaining the customer’s permission: 25
329	329
330	330	(i) make any change in the electricity supplier for a customer; or 26
331	331
332	332	(ii) add a new charge for a new or existing service or option. 27
333	333
334	334	(2) The Commission shall adopt regulations or issue orders establishing 28
335	335	procedures to prevent the practices prohibited under paragraph (1) of this subsection. 29
336	336	8 HOUSE BILL 267
337	337
338	338
339	339	(h) (1) An electricity supplier may not discriminate against any customer 1
340	340	based wholly or partly on race, color, creed, national origin, or sex of an applicant for service 2
341	341	or for any arbitrary, capricious, or unfairly discriminatory reason. 3
342	342
343	343	(2) An electricity supplier may not refuse to provide service to a customer 4
344	344	except by the application of standards that are reasonably related to the electricity 5
345	345	supplier’s economic and business purposes. 6
346	346
347	347	(i) An electricity supplier shall be subject to all applicable federal and State 7
348	348	environmental laws and regulations. 8
349	349
350	350	(j) An electricity supplier shall post on the Internet information that is readily 9
351	351	understandable about its services and rates for small commercial and residential electric 10
352	352	customers. 11
353	353
354	354	(k) (1) [The] FOR JUST CAUSE ON THE COMMISSION’S OWN 12
355	355	INVESTIGATION OR ON COMPLAINT OF THE OFFICE OF PEOPLE’S COUNSEL, THE 13
356	356	ATTORNEY GENERAL, OR AN AFFECTED PARTY , THE Commission may: 14
357	357
358	358	(I) DENY A LICENSE TO , OR revoke [or], suspend, OR REFUSE TO 15
359	359	RENEW the license of, an electricity supplier[,] OR ENERGY SALESPERSO N; 16
360	360
361	361	(II) impose a civil penalty or other remedy[,]; 17
362	362
363	363	(III) order a refund or credit to a customer[,]; or 18
364	364
365	365	(IV) impose a moratorium on adding or soliciting additional 19
366	366	customers by the electricity supplier[, for just cause on the Commission’s own investigation 20
367	367	or on complaint of the Office of People’s Counsel, the Attorney General, or an affected party] 21
368	368	OR ENERGY SALESPERSO N. 22
369	369
370	370	(2) A civil penalty may be imposed in addition to the Commission’s decision 23
371	371	to DENY, revoke, suspend, OR REFUSE TO RENEW A LICENSE or impose a moratorium. 24
372	372
373	373	(3) Just cause includes: 25
374	374
375	375	(i) intentionally providing false information to the Commission; 26
376	376
377	377	(ii) switching, or causing to be switched, the electricity supply for a 27
378	378	customer without first obtaining the customer’s permission; 28
379	379
380	380	(iii) failing to provide electricity for its customers; 29
381	381
382	382	(iv) committing fraud or engaging in deceptive practices; 30
383	383
384	384	(v) failing to maintain financial integrity; 31 HOUSE BILL 267 9
385	385
386	386
387	387
388	388	(vi) violating a Commission regulation or order; 1
389	389
390	390	(vii) failing to pay, collect, remit, or calculate accurately applicable 2
391	391	State or local taxes; 3
392	392
393	393	(viii) violating a provision of this article or any other applicable 4
394	394	consumer protection law of the State; 5
395	395
396	396	(ix) conviction of a felony by the licensee or principal of the licensee 6
397	397	or any crime involving fraud, theft, or deceit; [and] 7
398	398
399	399	(x) DENIAL, suspension, or revocation of OR REFUSAL TO RENEW 8
400	400	a license by any State or federal authority; AND 9
401	401
402	402	(XI) COMMISSION OF ANY OF THE ACTS DESCRIBED I N ITEMS (I) 10
403	403	THROUGH (X) OF THIS PARAGRAPH BY A PERSON THAT IS AN AFFILIATE OF THE 11
404	404	LICENSEE OR THAT IS UNDER COMMON CONTROL WITH THE LICENSEE . 12
405	405
406	406	(l) (1) An electricity supplier, AN ENERGY SALESPERSO N, or ANY OTHER 13
407	407	person selling or offering to sell electricity in the State in violation of this section OR § 14
408	408	7–507.1 OF THIS SUBTITLE , after notice and an opportunity for a hearing, is subject to: 15
409	409
410	410	(i) a civil penalty of not more than [$10,000] $25,000 for the 16
411	411	violation; [or] 17
412	412
413	413	(ii) license DENIAL, revocation, or suspension OR REFUSAL TO 18
414	414	RENEW THE LICENSE; OR 19
415	415
416	416	(III) BOTH. 20
417	417
418	418	(2) Each day OR PART OF A DAY a violation continues is a separate 21
419	419	violation. 22
420	420
421	421	(3) EACH CUSTOMER TO WHOM ELECTRICITY IS SOLD OR OFFERED IN 23
422	422	VIOLATION OF THIS SE CTION IS A SEPARATE VIOLATION. 24
423	423
424	424	(4) The Commission shall determine the amount of any civil penalty after 25
425	425	considering: 26
426	426
427	427	(i) the number of previous violations of any provision of this division 27
428	428	BY THE ELECTRICITY S UPPLIER, ENERGY SALESPERSON , OR OTHER PERSON ; 28
429	429
430	430	(ii) the gravity of the current violation; [and] 29
431	431	10 HOUSE BILL 267
432	432
433	433
434	434	(iii) the good faith of the electricity supplier , ENERGY 1
435	435	SALESPERSON , or OTHER person charged in attempting to achieve compliance after 2
436	436	notification of the violation; AND 3
437	437
438	438	(IV) ANY OTHER MATTER THA T THE COMMISSION CONSIDERS 4
439	439	APPROPRIATE AND RELE VANT. 5
440	440
441	441	(m) In connection with a consumer complaint or Commission investigation under 6
442	442	this section OR § 7–507.1 OF THIS SUBTITLE , an electricity supplier, AN ENERGY 7
443	443	SALESPERSON , AND ANY OTHER PERSON SELLING OR OFFERING TO SELL 8
444	444	ELECTRICITY IN THE STATE shall provide to the Commission access to any accounts, 9
445	445	books, papers, and documents [which] THAT the Commission considers necessary to 10
446	446	resolve the matter at issue. 11
447	447
448	448	(n) The Commission may order the electricity supplier, ENERGY SALESPERSON , 12
449	449	OR OTHER PERSON to cease adding or soliciting additional customers or to cease serving 13
450	450	customers in the State. 14
451	451
452	452	(o) The Commission shall consult with the Consumer Protection Division of the 15
453	453	Office of the Attorney General before issuing regulations designed to protect consumers. 16
454	454
455	455	(p) The People’s Counsel shall have the same authority in licensing, complaint, 17
456	456	and dispute resolution proceedings as it has in Title 2 of this article. 18
457	457
458	458	(q) Nothing in this subtitle may be construed to affect the authority of the 19
459	459	Division of Consumer Protection in the Office of the Attorney General to enforce violations 20
460	460	of Titles 13 and 14 of the Commercial Law Article or any other applicable State law or 21
461	461	regulation in connection with the activities of electricity suppliers AND ENERGY 22
462	462	SALESPERSONS . 23
463	463
464	464	7–507.1. 24
465	465
466	466	(A) (1) A PERSON MAY NOT ENGAGE IN TH E BUSINESS OF AN ENE RGY 25
467	467	SALESPERSON IN THE STATE UNLESS THE PERS ON HOLDS A LICENSE I SSUED BY THE 26
468	468	COMMISSION. 27
469	469
470	470	(2) A LICENSED ENERGY SALE SPERSON MAY OFFER OR SELL 28
471	471	ELECTRICITY SUPPLY A GREEMENTS OR GAS SUP PLY AGREEMENTS TO CU STOMERS 29
472	472	IN THE STATE ONLY IF THE ENE RGY SALESPERSON IS A SSOCIATED WITH A LIC ENSED 30
473	473	ELECTRICITY SUPPLIER OR LICENSED GAS SUPPLIER, RESPECTIVELY . 31
474	474
475	475	(B) (1) AN APPLICATION FOR AN ENERGY SALESPERSON LICENSE SHALL: 32
476	476
477	477	(I) BE MADE TO THE COMMISSION IN WRITING ON A FORM 33
478	478	ADOPTED BY THE COMMISSION; 34 HOUSE BILL 267 11
479	479
480	480
481	481
482	482	(II) BE VERIFIED BY OATH OR AFFIRMATION ; AND 1
483	483
484	484	(III) CONTAIN INFORMATION THAT THE COMMISSION REQUIRES , 2
485	485	INCLUDING: 3
486	486
487	487	1. PROOF OF ASSOCIATION WITH A L ICENSED 4
488	488	ELECTRICITY SUPPLIER OR LICENSED GAS SUPP LIER, AS APPROPRIATE ; 5
489	489
490	490	2. PROOF OF COMPLIANCE WITH ALL APPLICABLE 6
491	491	TRAINING REQUIREMENTS FOR CUSTOMER PROTECT ION UNDER THIS SUBTI TLE 7
492	492	AND SUBTITLE 6 OF THIS TITLE AS REQ UIRED BY THE COMMISSION; AND 8
493	493
494	494	3. PAYMENT OF THE APPLI CABLE LICENSING FEE . 9
495	495
496	496	(2) (I) THE TERM OF AN ENERGY SALESPERSON LICENSE IS 3 10
497	497	YEARS. 11
498	498
499	499	(II) THE TERMS OF LICENSES MAY BE STAGGERED AS 12
500	500	DETERMINED BY THE COMMISSION. 13
501	501
502	502	(III) UNLESS A LICENSE IS R ENEWED FOR A 3–YEAR TERM IN 14
503	503	ACCORDANCE WITH THIS SUBSECTION, THE LICENSE EXPIRES ON THE DATE THAT 15
504	504	THE COMMISSION SETS . 16
505	505
506	506	(IV) A LICENSEE MAY RENEW A LICENSE FOR AN ADDIT IONAL 17
507	507	3–YEAR TERM BEFORE THE LICENSE EXPIRES IF THE LICENSEE: 18
508	508
509	509	1. OTHERWISE IS ENTITLE D TO BE LICENSED ; 19
510	510
511	511	2. SUBMITS TO THE COMMISSION A RENEWAL 20
512	512	APPLICATION ON THE F ORM THAT THE COMMISSION PROVIDES ; AND 21
513	513
514	514	3. PAYS TO THE COMMISSION THE APPLIC ABLE 22
515	515	RENEWAL FEE SET BY T HE COMMISSION. 23
516	516
517	517	(C) THE COMMISSION SHALL , BY REGULATION OR ORD ER: 24
518	518
519	519	(1) REQUIRE PROOF OF FIN ANCIAL INTEGRITY ; 25
520	520
521	521	(2) REQUIRE A LICENSEE T O POST A BOND OR OTH ER SIMILAR 26
522	522	INSTRUMENT IF , IN THE COMMISSION’S JUDGMENT , THE BOND OR SIMILAR 27 12 HOUSE BILL 267
523	523
524	524
525	525	INSTRUMENT IS NECESS ARY TO INSURE AN ENERGY SALESPERSON ’S FINANCIAL 1
526	526	INTEGRITY; AND 2
527	527
528	528	(3) ADOPT ANY OTHER REQU IREMENTS THE COMMISSION FINDS TO 3
529	529	BE IN THE PUBLIC INT EREST. 4
530	530
531	531	(D) A LICENSE ISSUED UNDER THIS SECTION MAY NOT BE TRANSFERRED 5
532	532	WITHOUT PRIOR COMMISSION APPROVAL . 6
533	533
534	534	7–510. 7
535	535
536	536	(a) (1) Subject to subsection (b) of this section, the phased implementation of 8
537	537	customer choice shall be implemented as follows: 9
538	538
539	539	(i) on July 1, 2000, one–third of the residential class in the State of 10
540	540	each electric company shall have the opportunity for customer choice; 11
541	541
542	542	(ii) on January 1, 2001, the entire industrial class and the entire 12
543	543	commercial class in the State of each electric company shall have the opportunity for 13
544	544	customer choice; 14
545	545
546	546	(iii) on July 1, 2001, two–thirds of the residential class in the State 15
547	547	of each electric company shall have the opportunity for customer choice; 16
548	548
549	549	(iv) on July 1, 2002, all customers of each electric company shall have 17
550	550	the opportunity for customer choice; and 18
551	551
552	552	(v) by July 1, 2003, under a separate schedule adopted by the 19
553	553	Commission, all customers of each electric cooperative shall have the opportunity for 20
554	554	customer choice. 21
555	555
556	556	(2) (i) In accordance with this paragraph, the Commission may adopt a 22
557	557	separate schedule for municipal electric utilities for the implementation of customer choice. 23
558	558
559	559	(ii) A municipal electric utility may not be required to make its 24
560	560	service territory available for customer choice unless it elects to do so. 25
561	561
562	562	(iii) If a municipal electric utility elects to allow customer choice, the 26
563	563	municipal electric utility shall file a proposed plan and schedule with the Commission. 27
564	564
565	565	(iv) The Commission may approve each municipal electric utility 28
566	566	plan and schedule after considering the features that distinguish the municipal electric 29
567	567	utility from other electric companies. 30
568	568	HOUSE BILL 267 13
569	569
570	570
571	571	(v) Nothing in this subtitle may be construed to require the 1
572	572	functional, operational, structural, or legal separation of the regulated and nonregulated 2
573	573	operations of the municipal electric utility. 3
574	574
575	575	(3) If a municipal electric utility serves customers outside its distribution 4
576	576	territory, electricity suppliers licensed under § 7–507 of this subtitle may serve the 5
577	577	customers in the distribution territory of the municipal electric utility. 6
578	578
579	579	(b) For good cause shown and if the Commission finds the action to be in the 7
580	580	public interest, the Commission may: 8
581	581
582	582	(1) accelerate or delay the initial implementation date of July 1, 2000, by 9
583	583	up to 3 months; or 10
584	584
585	585	(2) accelerate any of the other implementation dates and phase –in 11
586	586	percentages in subsection (a) of this section. 12
587	587
588	588	(c) (1) Beginning on the initial implementation date, an electric company’s 13
589	589	obligation to provide electricity supply and electricity supply service is stated by this 14
590	590	subsection. 15
591	591
592	592	(2) (I) Electricity supply purchased from a customer’s electric company 16
593	593	is known as standard offer service. 17
594	594
595	595	(II) A customer is considered to have chosen the standard offer 18
596	596	service if the customer: 19
597	597
598	598	[(i)] 1. is not allowed to choose an electricity supplier under the 20
599	599	phase in of customer choice in subsection (a) of this section; 21
600	600
601	601	[(ii)] 2. contracts for electricity with an electricity supplier and it 22
602	602	is not delivered; 23
603	603
604	604	[(iii)] 3. cannot arrange for electricity from an electricity supplier; 24
605	605
606	606	[(iv)] 4. does not choose an electricity supplier; 25
607	607
608	608	[(v)] 5. chooses the standard offer service; or 26
609	609
610	610	[(vi)] 6. has been denied service or referred to the standard offer 27
611	611	service by an electricity supplier in accordance with § 7–507(e)(6) of this subtitle. 28
612	612
613	613	(3) [(i) Except as provided under subparagraph (ii) of this paragraph, 29
614	614	any obligation of an electric company to provide standard offer service shall cease on July 30
615	615	1, 2003. 31
616	616	14 HOUSE BILL 267
617	617
618	618
619	619	(ii) 1. Electric cooperatives and municipal electric utilities may 1
620	620	choose to continue providing standard offer service in their respective distribution 2
621	621	territories and may cease offering that service after notifying the Commission at least 12 3
622	622	months in advance. 4
623	623
624	624	2. On and after July 1, 2003, an electric company continues 5
625	625	to have the obligation to provide standard offer service to residential and small commercial 6
626	626	customers at a market price that permits recovery of the verifiable, prudently incurred 7
627	627	costs to procure or produce the electricity plus a reasonable return. 8
628	628
629	629	(iii) 1.] On or before December 31, 2008, and every 5 years 9
630	630	thereafter, the Commission shall report to the Governor and, in accordance with § 2–1257 10
631	631	of the State Government Article, to the General Assembly on the status of the standard 11
632	632	offer service[,] AND the development of competition[, and the transition of standard offer 12
633	633	service to a default service]. 13
634	634
635	635	[2. The Commission shall establish, by order or regulation, 14
636	636	the definition of “default service”.] 15
637	637
638	638	(4) (i) 1. On or before July 1, 2001, the Commission shall adopt 16
639	639	regulations or issue orders to establish procedures for the competitive selection of wholesale 17
640	640	electricity suppliers, including an affiliate of an electric company, to provide electricity for 18
641	641	standard offer service to customers of electric companies under paragraph (2) of this 19
642	642	subsection, except for customers of electric cooperatives and municipal electric utilities. 20
643	643
644	644	2. Unless delayed by the Commission, the competitive 21
645	645	selection shall take effect no later than July 1, 2003. 22
646	646
647	647	(ii) 1. Under the obligation to provide standard offer service in 23
648	648	accordance with [paragraph (3)(ii) of] this subsection, the Commission, by regulation or 24
649	649	order, and in a manner that is designed to obtain the best price for residential and small 25
650	650	commercial customers in light of market conditions at the time of procurement and the 26
651	651	need to protect these customers from excessive price increases: 27
652	652
653	653	A. shall require each investor–owned electric company to 28
654	654	obtain its electricity supply for residential and small commercial customers participating 29
655	655	in standard offer service through a competitive process in accordance with this paragraph; 30
656	656	and 31
657	657
658	658	B. may require or allow an investor–owned electric company 32
659	659	to procure electricity for these customers directly from an electricity supplier through one 33
660	660	or more bilateral contracts outside the competitive process. 34
661	661
662	662	2. A. As the Commission directs, the competitive process 35
663	663	shall include a series of competitive wholesale bids in which the investor–owned electric 36
664	664	company solicits bids to supply anticipated standard offer service load for residential and 37 HOUSE BILL 267 15
665	665
666	666
667	667	small commercial customers as part of a portfolio of blended wholesale supply contracts of 1
668	668	short, medium, or long terms, and other appropriate electricity products and strategies, as 2
669	669	needed to meet demand in a cost–effective manner. 3
670	670
671	671	B. The competitive process may include different bidding 4
672	672	structures and mechanisms for base load, peak load, and very short–term procurement. 5
673	673
674	674	C. By regulation or order, as a part of the competitive process, 6
675	675	the Commission shall require or allow the procurement of cost–effective energy efficiency 7
676	676	and conservation measures and services with projected and verifiable energy savings to 8
677	677	offset anticipated demand to be served by standard offer service, and the imposition of other 9
678	678	cost–effective demand–side management programs. 10
679	679
680	680	3. A. In order to prevent an excessive amount of load 11
681	681	being exposed to upward price risks and volatility, the Commission may stagger the dates 12
682	682	for the competitive wholesale auctions. 13
683	683
684	684	B. By regulation or order, the Commission may allow a date 14
685	685	on which a competitive wholesale auction takes place to be altered based on current market 15
686	686	conditions. 16
687	687
688	688	4. By regulation or order, the Commission may allow an 17
689	689	investor–owned electric company to refuse to accept some or all of the bids made in a 18
690	690	competitive wholesale auction in accordance with standards adopted by the Commission. 19
691	691
692	692	5. The investor–owned electric company shall publicly 20
693	693	disclose the names of all bidders and the names and load allocation of all successful bidders 21
694	694	90 days after all contracts for supply are executed. 22
695	695
696	696	6. AN INVESTOR –OWNED ELECTRIC COMPA NY MAY 23
697	697	MARKET STANDARD OFFE R SERVICE TO CUSTOME RS IN ITS SERVICE TE RRITORY IN 24
698	698	COMPLIANCE WITH APPR OPRIATE CONSUMER PROTECTIONS CONSISTENT WITH 25
699	699	THOSE THAT APPLY TO ELECTRICITY SUPPLIER S UNDER § 7–507 OF THIS SUBTITLE. 26
700	700
701	701	(5) An electric company may procure the electricity needed to meet its 27
702	702	standard offer service electricity supply obligation from any electricity supplier, including 28
703	703	an affiliate of the electric company. 29
704	704
705	705	(6) In order to meet long–term, anticipated demand in the State for 30
706	706	standard offer service and other electricity supply, the Commission may require or allow 31
707	707	an investor–owned electric company to construct, acquire, or lease, and operate, its own 32
708	708	generating facilities, and transmission facilities necessary to interconnect the generating 33
709	709	facilities with the electric grid, subject to appropriate cost recovery. 34
710	710
711	711	(7) (i) To determine whether an appropriate phased implementation of 35
712	712	electricity rates that is necessary to protect residential customers from the impact of 36
713	713	sudden and significant increases in electricity rates, the Commission in the case of an 37 16 HOUSE BILL 267
714	714
715	715
716	716	increase of 20% or more over the previous year’s total electricity rates, shall conduct 1
717	717	evidentiary proceedings, including public hearings. 2
718	718
719	719	(ii) 1. A deferral of costs as part of a phased implementation of 3
720	720	electricity rates by an investor–owned electric company shall be treated as a regulatory 4
721	721	asset to be recovered in accordance with a rate stabilization plan under Part III of this 5
722	722	subtitle or any other plan for phased implementation approved by the Commission. 6
723	723
724	724	2. A deferral of costs under this paragraph must be just, 7
725	725	reasonable, and in the public interest. 8
726	726
727	727	(iii) The Commission shall approve the recovery of deferred costs 9
728	728	under subparagraph (ii) of this paragraph as: 10
729	729
730	730	1. long–term recovery in accordance with a rate stabilization 11
731	731	plan under Part III of this subtitle; or 12
732	732
733	733	2. short–term recovery through a rate proceeding 13
734	734	mechanism approved by the Commission. 14
735	735
736	736	(iv) The Commission may approve a phasing in of increased costs by: 15
737	737
738	738	1. placing a cap on rates and allowing recovery over time; or 16
739	739
740	740	2. allowing rates to increase and providing for a rebate to 17
741	741	customers of any excess costs paid. 18
742	742
743	743	(8) (i) An electric cooperative that as of July 1, 2006, supplied its 19
744	744	standard offer service load through a portfolio of blended wholesale supply contracts of 20
745	745	short, medium, and long terms, and other appropriate electricity products and strategies, 21
746	746	as needed to meet demand in a cost–effective manner, may choose to continue to use a 22
747	747	blended portfolio: 23
748	748
749	749	1. as approved and modified by the electric cooperative’s 24
750	750	board of directors; and 25
751	751
752	752	2. with appropriate review for prudent cost recovery as 26
753	753	determined by the Commission. 27
754	754
755	755	(ii) The Commission may not set or enforce a termination date for 28
756	756	the procurement of supply through a managed portfolio previously approved by the 29
757	757	Commission. 30
758	758
759	759	(9) (i) The Commission, on request by an electric cooperative or on its 31
760	760	own initiative, shall initiate a proceeding to investigate options for a rate stabilization plan 32
761	761	to assist residential electric customers to gradually adjust to market rates over an extended 33
762	762	period of time. 34 HOUSE BILL 267 17
763	763
764	764
765	765
766	766	(ii) If an electric cooperative determines that total electric rates for 1
767	767	residential customers are anticipated to increase by more than 20% in a 12–month period 2
768	768	resulting from an increase in the cost of generation, the electric cooperative shall survey its 3
769	769	membership to determine whether to make a request to the Commission to initiate a 4
770	770	proceeding under subsection (a) of this section. 5
771	771
772	772	(iii) Notwithstanding subparagraphs (i) and (ii) of this paragraph, as 6
773	773	approved by the Commission, an electric cooperative may receive a modification in 7
774	774	distribution and transmission rates. 8
775	775
776	776	[(d) Notwithstanding the dates set forth in this section or any other law, customer 9
777	777	choice may not commence until legislation is enacted by the General Assembly to 10
778	778	restructure Maryland taxes to address the State and local tax implications of restructuring 11
779	779	the electric utility industry.] 12
780	780
781	781	(D) (1) THIS SUBSECTION APPLI ES TO ELECTRICITY SU PPLY OTHER 13
782	782	THAN STANDARD OFFER SERVICE. 14
783	783
784	784	(2) AN ELECTRICITY SUPPLIER: 15
785	785
786	786	(I) MAY OFFER ELECTRICIT Y ONLY AT A PRICE TH AT DOES NOT 16
787	787	EXCEED THE TRAILING 12–MONTH AVERAGE OF THE ELECTRIC COMPANY ’S 17
788	788	STANDARD OFFER SERVI CE RATE IN THE ELECT RIC COMPANY ’S SERVICE 18
789	789	TERRITORY AS OF THE DATE OF AGREEMENT WI TH THE CUSTOMER ; 19
790	790
791	791	(II) MAY OFFER ELECTRICIT Y SUPPLY ONLY: 20
792	792
793	793	1. FOR A TERM NOT TO EX CEED 12 MONTHS AT A TIME ; 21
794	794	AND 22
795	795
796	796	2. WITHOUT AUTOMATIC RE NEWAL; 23
797	797
798	798	(III) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , MAY 24
799	799	NOT OFFER A VARIABLE RATE OTHE R THAN A RATE THAT A DJUSTS FOR SEASONAL 25
800	800	VARIATION NOT MORE T HAN TWICE IN A SINGL E YEAR; 26
801	801
802	802	(IV) MAY NOT PAY A COMMIS SION OR OTHER INCENTIVE–BASED 27
803	803	COMPENSATION TO AN E NERGY SALESPERSON FO R ENROLLING CUSTOMER S; AND 28
804	804
805	805	(V) MAY NOT IMPOSE ON A CUSTOMER A FEE FOR 29
806	806	CANCELLATION OR EARL Y TERMINATION OF AN EL ECTRICITY SUPPLY AGR EEMENT. 30
807	807	18 HOUSE BILL 267
808	808
809	809
810	810	(3) PARAGRAPH (2)(III) OF THIS SUBSECTION D OES NOT PROHIBIT 1
811	811	THE OFFER AND USE OF TIME–OF–USE RATES THAT ESTAB LISH DIFFERENT RATES 2
812	812	FOR PERIODS WITHIN A SINGLE DAY. 3
813	813
814	814	(4) AN ELECTRICITY SUPPLI ER MAY NOT OFF ER OR PROVIDE 4
815	815	ELECTRICITY SUPPLY TO A CUSTOMER WHO RE CEIVES ENERGY ASSIST ANCE 5
816	816	THROUGH THE ELECTRIC UNIVERSAL SERVICE PROGRAM UNDER § 7–512.1 OF THIS 6
817	817	SUBTITLE OR THE ENERGY ASSISTANCE PROGRAM OF THE DEPARTMENT OF 7
818	818	HUMAN SERVICES UNDER TITLE 5, SUBTITLE 5A OF THE HUMAN SERVICES 8
819	819	ARTICLE. 9
820	820
821	821	(5) AN ELECTRICITY SUPPLI ER MAY NOT SELL TO AN ELECTRIC 10
822	822	COMPANY, AND AN ELECTRIC COMP ANY MAY NOT PURCHASE FROM AN ELECTRICITY 11
823	823	SUPPLIER, ACCOUNTS RECEIVABLE . 12
824	824
825	825	(E) AN ELECTRIC COMPANY A ND AN ELECTRICITY SU PPLIER SHALL 13
826	826	ESTABLISH A MECHANIS M FOR A CUSTOMER WHO SE ACCOUNT NUMBER OR 14
827	827	CUSTOMER CHOICE IDEN TIFICATION NUMBER HA S BEEN COMPROMISED T O 15
828	828	RECEIVE A REPLACEMENT ACCOUNT NUMBER OR CU STOMER CHOICE 16
829	829	IDENTIFICATION NUMBER O N REQUEST, SUBJECT TO VERIFICAT ION IN A MANNER 17
830	830	APPROVED BY THE COMMISSION. 18
831	831
832	832	(F) AS APPROVED BY THE COMMISSION BY REGULAT ION OR ORDER , EACH 19
833	833	ELECTRIC COMPANY AND EACH ELECTRICITY SUP PLIER SHALL ALLOW A CUSTOMER 20
834	834	TO INDICATE THE CUST OMER’S INTENTION TO REMAI N ON STANDARD OFFER 21
835	835	SERVICE INDEFINITELY AND NOT TO RECEIVE DIRECTED MARKETING CONTACTS 22
836	836	FROM ELECTRIC ITY SUPPLIERS THROUG H THE IMPLEMENTATION OF A “DO NOT 23
837	837	TRANSFER” LIST ONTO WHICH THE CUSTOMER MAY REQUEST TO BE PLACED. 24
838	838
839	839	(G) ON OR BEFORE THE 15TH DAY OF EACH MONTH , EACH ELECTRIC 25
840	840	COMPANY SHALL SUBMIT A REPORT TO THE COMMISSION ON CUSTOMER CHOICE I N 26
841	841	ITS SERVICE TERRITOR Y FOR THE PRECEDING MO NTH, INCLUDING: 27
842	842
843	843	(1) THE TOTAL KILOWATT –HOURS DISTRIBUTED TO CUSTOMERS 28
844	844	PURCHASING ELECTRICI TY FROM A THIRD –PARTY ELECTRICITY SUPPLIER ; 29
845	845
846	846	(2) THE TOTAL SUPPL Y COST CHARGED TO CUSTOMERS PURCHASING 30
847	847	ELECTRICITY FROM A T HIRD–PARTY ELECTRICITY SU PPLIER; 31
848	848
849	849	(3) THE TOTAL COST THAT CUSTOMERS SPECIFIED IN ITEM (2) OF 32
850	850	THIS SUBSECTION WOULD HAVE PAID UNDE R STANDARD OFFER SER VICE; 33
851	851	HOUSE BILL 267 19
852	852
853	853
854	854	(4) THE NET THIRD–PARTY TOTAL COST COMPARED TO THE NET 1
855	855	STANDARD OFFER SERVI CE COST; 2
856	856
857	857	(5) THE TOTAL THIRD–PARTY AVERAGE RATE ; 3
858	858
859	859	(6) THE STANDARD OFFER S ERVICE AVERAGE RATE ; 4
860	860
861	861	(7) THE DIFFERENCE BETWEEN THE TOTAL THIRD–PARTY AVERAGE 5
862	862	RATE AND THE STANDARD OFFER SERVI CE AVERAGE RATE ; 6
863	863
864	864	(8) THE THIRD–PARTY AVERAGE RESIDENTIAL RATES BROKEN OUT 7
865	865	BY SUPPLIER AND THE VARIANCE BETWEEN EACH OF THESE RATES AND THE 8
866	866	STANDARD OFFER SERVI CE AVERAGE RATE ; 9
867	867
868	868	(9) THE THIRD–PARTY AVERAGE GENERAL SERVICE NOND EMAND 10
869	869	RATES BROKEN OUT BY SUPPLIER AND THE VAR IANCE BETWEEN EACH OF THESE 11
870	870	THIRD–PARTY RATES AND THE STANDARD OFF ER SERVICE AVERAGE R ATE; 12
871	871
872	872	(10) THE THIRD–PARTY AVERAGE GENERAL SERVICE DEMA ND RATES 13
873	873	BROKEN OUT BY SUPPLIER AND THE VARIANCE BET WEEN EACH OF THESE 14
874	874	THIRD–PARTY RATES AND THE STANDARD OFFER SERVI CE AVERAGE RATE ; 15
875	875
876	876	(11) THE THIRD–PARTY AVERAGE LARGE POWER DEMAND R ATES 16
877	877	BROKEN OUT BY SUPPLI ER AND THE VARIANCE BETWEEN EACH OF THESE 17
878	878	THIRD–PARTY RATES AND TH E STANDARD OFFER SER VICE AVERAGE RATE ; AND 18
879	879
880	880	(12) OTHER PERTINENT INFO RMATION THE COMMISSION CONSIDERS 19
881	881	APPROPRIATE . 20
882	882
883	883	[(e)] (H) The Commission shall, by regulation or order, adopt procedures to 21
884	884	implement this section[, including the allocation of any unused opportunity for customer 22
885	885	choice among customer classes]. 23
886	886
887	887	[(f)] (I) Except as provided in § 7–510.3 of this subtitle, a county or municipal 24
888	888	corporation may not act as an aggregator unless the Commission determines there is not 25
889	889	sufficient competition within the boundaries of the county or municipal corporation. 26
890	890
891	891	7–602. 27
892	892
893	893	The General Assembly finds and declares that the purpose of this subtitle is to: 28
894	894
895	895	(1) clarify existing law regarding the provision of competitive retail gas 29
896	896	supply and gas supply services in the State; 30
897	897	20 HOUSE BILL 267
898	898
899	899
900	900	(2) require the Commission to license gas suppliers AND ENERGY 1
901	901	SALESPERSONS ; 2
902	902
903	903	(3) authorize the Commission to adopt complaint procedures; 3
904	904
905	905	(4) establish certain requirements relating to the competitiveness of retail 4
906	906	gas supply and gas supply services markets; and 5
907	907
908	908	(5) establish standards for the protection of consumers. 6
909	909
910	910	7–603. 7
911	911
912	912	(a) The Commission shall license gas suppliers AND ENERGY SALESPERS ONS 8
913	913	and shall have the same authority as the Commission has under [§ 7–507] §§ 7–507 AND 9
914	914	7–507.1 of this title for electricity suppliers AND ENERGY SALESPERS ONS, including the 10
915	915	authority to: 11
916	916
917	917	(1) DENY, revoke [or], suspend, OR REFUSE TO RENEW a license; 12
918	918
919	919	(2) impose a moratorium, civil penalty, or other remedy; or 13
920	920
921	921	(3) order a refund for or credit to a customer. 14
922	922
923	923	(b) The Commission shall adopt licensing requirements and procedures for gas 15
924	924	suppliers AND ENERGY SALESPERS ONS that protect consumers, the public interest, and 16
925	925	the collection of all State and local taxes, CONSISTENT WITH THE REQUI REMENTS FOR 17
926	926	ELECTRICITY SUPPLIER S AND ENERGY SALESPERS ONS UNDER SUBTITLE 5 OF THIS 18
927	927	TITLE. 19
928	928
929	929	7–603.1. 20
930	930
931	931	(A) (1) FOR JUST CAUSE ON THE COMMISSION’S OWN INVESTIGATION OR 21
932	932	ON COMPLAINT OF THE OFFICE OF PEOPLE’S COUNSEL, THE ATTORNEY GENERAL, 22
933	933	OR AN AFFECTED PARTY , THE COMMISSION MAY : 23
934	934
935	935	(I) DENY A LICENSE TO , OR REVOKE, SUSPEND, OR REFUSE TO 24
936	936	RENEW THE LICENSE OF , A GAS SUPPLIER OR AN ENERGY SALESPERSON ; 25
937	937
938	938	(II) IMPOSE A CIVIL PENAL TY OR OTHER REMEDY ; 26
939	939
940	940	(III) ORDER A REFUND OR CR EDIT TO A CUSTOMER; OR 27
941	941
942	942	(IV) IMPOSE A MORATORIUM ON ADDING OR SOLICIT ING 28
943	943	ADDITIONAL CUSTOMERS BY THE GAS SUPPLIER OR ENERGY SALESPERSO N. 29
944	944	HOUSE BILL 267 21
945	945
946	946
947	947	(2) A CIVIL PENALTY MAY BE IMPOSED IN ADDITION TO THE 1
948	948	COMMISSION’S DECISION TO DENY, REVOKE, SUSPEND, OR REFUSE TO RENEW A 2
949	949	LICENSE OR IMPOSE A MORATORI UM. 3
950	950
951	951	(3) JUST CAUSE INCLUDES : 4
952	952
953	953	(I) INTENTIONALLY PROVID ING FALSE INFORMATIO N TO THE 5
954	954	COMMISSION; 6
955	955
956	956	(II) SWITCHING, OR CAUSING TO BE SWI TCHED, THE GAS 7
957	957	SUPPLY FOR A CUSTOME R WITHOUT FIRST OBTA INING THE CUSTOMER ’S 8
958	958	PERMISSION; 9
959	959
960	960	(III) FAILING TO PROVIDE GAS FOR ITS CUSTOMERS ; 10
961	961
962	962	(IV) COMMITTING FRAUD OR ENGAGING IN DECEPTIV E 11
963	963	PRACTICES; 12
964	964
965	965	(V) FAILING TO MAINTAIN FINANCIAL INTEGRITY ; 13
966	966
967	967	(VI) VIOLATING A COMMISSION REGULATION OR ORDER; 14
968	968
969	969	(VII) FAILING TO PAY , COLLECT, REMIT, OR CALCULATE 15
970	970	ACCURATELY APPLICABL E STATE OR LOCAL TAXES ; 16
971	971
972	972	(VIII) VIOLATING A PROVISIO N OF THIS ARTICLE OR ANY OTHER 17
973	973	APPLICABLE CONSUMER PROTECTION LAW OF TH E STATE; 18
974	974
975	975	(IX) CONVICTION OF A FELO NY BY THE LICENSEE O R PRINCIPAL 19
976	976	OF THE LICENSEE OR A NY CRIME INVOLVING F RAUD, THEFT, OR DECEIT; 20
977	977
978	978	(X) DENIAL, SUSPENSION, OR REVOCATION OF OR REFUSAL TO 21
979	979	RENEW A LICENSE BY A NY STATE OR FEDERAL AUTH ORITY; AND 22
980	980
981	981	(XI) COMMISSION OF ANY OF THE ACTS DESCRIBED I N ITEMS (I) 23
982	982	THROUGH (X) OF THIS PARAGRAPH BY A PERSON THAT IS AN AF FILIATE OF THE 24
983	983	LICENSEE OR THAT IS UNDER COMMON CONTROL WITH THE LICENSEE . 25
984	984
985	985	(B) (1) A GAS SUPPLIER , AN ENERGY SALESPERSO N, OR ANY OTHER 26
986	986	PERSON SELLING OR OF FERING TO SELL GAS I N THE STATE IN VIOLATION OF THIS 27
987	987	SECTION OR § 7–603 OF THIS SUBTITLE, AFTER NOTICE AND AN OPPORTUNITY FOR 28
988	988	A HEARING, IS SUBJECT TO: 29
989	989	22 HOUSE BILL 267
990	990
991	991
992	992	(I) A CIVIL PENALTY OF N OT MORE THAN $25,000 FOR THE 1
993	993	VIOLATION; 2
994	994
995	995	(II) LICENSE DENIAL, REVOCATION , OR SUSPENSION OR 3
996	996	REFUSAL TO RENEW THE LICENSE; OR 4
997	997
998	998	(III) BOTH. 5
999	999
1000	1000	(2) EACH DAY OR PART OF A DAY A VIOLATION CONTINUE S IS A 6
1001	1001	SEPARATE VIOLATION . 7
1002	1002
1003	1003	(3) EACH CUSTOMER TO WHOM GAS IS SOLD OR OFFERED I N 8
1004	1004	VIOLATION OF THIS SE CTION IS A SEPARATE VIOLATION. 9
1005	1005
1006	1006	(4) THE COMMISSION SHALL DETE RMINE THE AMOUNT OF ANY CIVIL 10
1007	1007	PENALTY AFTER CONSID ERING: 11
1008	1008
1009	1009	(I) THE NUMBER OF PREVIO US VIOLATIONS OF ANY PROVISION 12
1010	1010	OF THIS DIVISION BY THE GAS SUPPLIER, ENERGY SALESPERSON , OR OTHER 13
1011	1011	PERSON; 14
1012	1012
1013	1013	(II) THE GRAVITY OF THE C URRENT VIOLATION ; 15
1014	1014
1015	1015	(III) THE GOOD FAITH OF TH E GAS SUPPLIER, ENERGY 16
1016	1016	SALESPERSON , OR OTHER PERSON CHAR GED IN ATTEMPTING TO ACHIEVE 17
1017	1017	COMPLIANCE AFTER NOT IFICATION OF THE VIO LATION; AND 18
1018	1018
1019	1019	(IV) ANY OTHER MATTER THA T THE COMMISSION CONSIDERS 19
1020	1020	APPROPRIATE AND RELE VANT. 20
1021	1021
1022	1022	(C) IN CONNECTION WITH A CONSUMER COMPLA INT OR COMMISSION 21
1023	1023	INVESTIGATION UNDER THIS SECTION OR § 7–603 OF THIS SUBTITLE , A GAS 22
1024	1024	SUPPLIER, AN ENERGY SALESPERSO N, AND ANY OTHER PERSON SELLING OR 23
1025	1025	OFFERING TO SELL GAS IN THE STATE SHALL PROVIDE TO THE COMMISSION ACCESS 24
1026	1026	TO ANY ACCOUNTS , BOOKS, PAPERS, AND DOCUMENTS THAT THE COMMISSION 25
1027	1027	CONSIDERS NECESSARY TO RESOLVE THE MATTE R AT ISSUE. 26
1028	1028
1029	1029	(D) THE COMMISSION MAY ORDER THE GAS SUPPLIER, ENERGY 27
1030	1030	SALESPERSON , OR OTHER PERSON TO CEASE ADDIN G OR SOLICITING ADDI TIONAL 28
1031	1031	CUSTOMERS OR TO CEAS E SERVING CUSTOMERS IN THE STATE. 29
1032	1032
1033	1033	7–604. 30
1034	1034	HOUSE BILL 267 23
1035	1035
1036	1036
1037	1037	(a) On or before July 1, 2001, the Commission shall adopt consumer protection 1
1038	1038	orders or regulations for gas suppliers AND ENERGY SALESPERS ONS that: 2
1039	1039
1040	1040	(1) protect consumers from discriminatory, unfair, deceptive, and 3
1041	1041	anticompetitive acts and practices in the marketing, selling, or distributing of natural gas; 4
1042	1042
1043	1043	(2) provide for contracting, enrollment, and billing practices and 5
1044	1044	procedures; and 6
1045	1045
1046	1046	(3) the Commission considers necessary to protect the consumer. 7
1047	1047
1048	1048	(b) In adopting orders and regulations under this section, unless the Commission 8
1049	1049	determines that the circumstances do not require consistency, the Commission shall: 9
1050	1050
1051	1051	(1) provide customers with protections consistent with applicable 10
1052	1052	protections provided to retail electric customers; and 11
1053	1053
1054	1054	(2) impose appropriate requirements on gas suppliers AND ENERGY 12
1055	1055	SALESPERSONS that are consistent with applicable requirements imposed on electricity 13
1056	1056	suppliers AND ENERGY SALES PERSONS. 14
1057	1057
1058	1058	7–605. 15
1059	1059
1060	1060	(a) This subtitle may not be construed to: 16
1061	1061
1062	1062	(1) affect the authority of the Division of Consumer Protection of the Office 17
1063	1063	of the Attorney General to enforce violations of Titles 13 and 14 of the Commercial Law 18
1064	1064	Article or any other applicable State law or regulation in connection with the activities of 19
1065	1065	gas suppliers OR ENERGY SALESPERSO NS; or 20
1066	1066
1067	1067	(2) exempt gas companies [and], gas suppliers, AND ENERGY 21
1068	1068	SALESPERSONS from otherwise applicable State or federal consumer protection and 22
1069	1069	antitrust laws. 23
1070	1070
1071	1071	(b) The Commission shall consult with the Consumer Protection Division of the 24
1072	1072	Office of the Attorney General before adopting regulations designed to protect consumers 25
1073	1073	of gas supply and gas supply services. 26
1074	1074
1075	1075	(c) The People’s Counsel has the same authority in licensing, complaint, and 27
1076	1076	dispute resolution proceedings as the People’s Counsel has under Subtitle 5 of this title and 28
1077	1077	Title 2 of this article. 29
1078	1078
1079	1079	(d) In connection with a consumer complaint or Commission investigation under 30
1080	1080	this subtitle, a gas supplier OR AN ENERGY SALESPE RSON shall provide to the 31
1081	1081	Commission access to any accounts, books, papers, and documents that the Commission 32
1082	1082	considers necessary to resolve a matter in dispute. 33 24 HOUSE BILL 267
1083	1083
1084	1084
1085	1085
1086	1086	7–705. 1
1087	1087
1088	1088	(a) Each electricity supplier shall submit a report to the Commission each year in 2
1089	1089	a form and by a date specified by the Commission that: 3
1090	1090
1091	1091	(1) (i) demonstrates that the electricity supplier has complied with the 4
1092	1092	applicable renewable energy portfolio standard under § 7–703 of this subtitle and includes 5
1093	1093	the submission of the required amount of renewable energy credits; or 6
1094	1094
1095	1095	(ii) demonstrates the amount of electricity sales by which the 7
1096	1096	electricity supplier failed to meet the applicable renewable energy portfolio standard; [and] 8
1097	1097
1098	1098	(2) documents the level of participation of minority business enterprises 9
1099	1099	and minorities in the activities that support the creation of renewable energy credits used 10
1100	1100	to satisfy the standard under § 7–703 of this subtitle, including development, installation, 11
1101	1101	and operation of generating facilities that create credits; AND 12
1102	1102
1103	1103	(3) DOCUMENTS THE AMOUNT S AND TYPES OF GENER ATION 13
1104	1104	ASSOCIATED WITH RENE WABLE ENERGY CREDITS PURCHASED IN COMPLIA NCE 14
1105	1105	WITH § 7–707(B) OF THIS SUBTITLE DURING THE REPORTING PERIOD . 15
1106	1106
1107	1107	7–707. 16
1108	1108
1109	1109	(A) IN THIS SECTION , “GREEN POWER ” MEANS ENERGY SOURCES OR 17
1110	1110	RENEWABLE ENERGY CRE DITS THAT ARE MARKET ED AS GREEN , ECO–FRIENDLY, 18
1111	1111	ENVIRONMENTALLY FRIE NDLY OR RESPONSIBLE , CARBON–FREE, RENEWABLE , 19
1112	1112	100% RENEWABLE , 100% WIND, 100% HYDRO, 100% SOLAR, 100% EMISSION–FREE, 20
1113	1113	OR SIMILAR CLAIMS . 21
1114	1114
1115	1115	(B) (1) ON AND AFTER JANUARY 1, 2025, AN ELECTRICITY SUPPL IER 22
1116	1116	SHALL PURCHASE RENEW ABLE ENERGY CREDITS FOR EACH YEAR THE EL ECTRICITY 23
1117	1117	SUPPLIER OFFERS GREE N POWER FOR SALE TO RESIDENTIAL RETAIL ELECTRIC 24
1118	1118	CUSTOMERS . 25
1119	1119
1120	1120	(2) THE CREDITS THAT AN E LECTRICITY SUPPLIER PURCHASES 26
1121	1121	UNDER PARAGRAPH (1) OF THIS SUBSECTION SHALL BE : 27
1122	1122
1123	1123	(I) GENERATED : 28
1124	1124
1125	1125	1. IN THE PJM REGION; OR 29
1126	1126
1127	1127	2. OUTSIDE THE PJM REGION ONLY IF THE 30
1128	1128	ELECTRICITY IS DELIV ERED INTO THE PJM REGION; AND 31
1129	1129	HOUSE BILL 267 25
1130	1130
1131	1131
1132	1132	(II) RETIRED IN A PJM ENVIRONMENTAL INFORMATION 1
1133	1133	SERVICES, INC., GENERATION ATTRIBUTE TRACKING SYSTEM RESE RVE 2
1134	1134	SUBACCOUNT ACCESS IBLE BY THE COMMISSION. 3
1135	1135
1136	1136	(C) AN ELECTRICITY SUPPLI ER THAT CLAIMS IN TH E ELECTRICITY 4
1137	1137	SUPPLIER’S MARKETING OF ELECT RICITY TO RESIDENTIA L RETAIL ELECTRIC 5
1138	1138	CUSTOMERS THAT THE C USTOMER WILL BE PURC HASING GREEN POWER S HALL 6
1139	1139	INCLUDE THE FOLLOWIN G DISCLOSURE OR A SIMILAR DISCLOS URE APPROVED BY 7
1140	1140	THE COMMISSION: 8
1141	1141
1142	1142	“IF YOU PURCHASE THIS ENERGY PLAN , YOU ARE AGREEING TO PURCHASE 9
1143	1143	LOCAL UTILITY DISTRI BUTION GRID ELECTRIC ITY THAT IS PAIRED W ITH 10
1144	1144	RENEWABLE ENERGY CRE DITS (“RECS”) IN AN AMOUNT SUFFICI ENT TO MATCH THE 11
1145	1145	PERCENT OF “GREEN POWER ” ELECTRICITY IN YOUR CONTRACT.”. 12
1146	1146
1147	1147	13–101. 13
1148	1148
1149	1149	(a) This section does not apply to a violation of the following provisions of this 14
1150	1150	article: 15
1151	1151
1152	1152	(1) Title 5, Subtitle 4; 16
1153	1153
1154	1154	(2) Title 7, Subtitle 1; 17
1155	1155
1156	1156	(3) Title 8, Subtitles 1 and 3; and 18
1157	1157
1158	1158	(4) Title 9, Subtitle 3. 19
1159	1159
1160	1160	(b) A person may not fail, neglect, or refuse to comply with any provision of this 20
1161	1161	division or any effective and outstanding direction, ruling, order, rule, regulation, or 21
1162	1162	decision of the Commission. 22
1163	1163
1164	1164	(c) An individual who knowingly violates or knowingly aids or abets a public 23
1165	1165	service company in the violation of subsection (b) of this section or any provision of this 24
1166	1166	division: 25
1167	1167
1168	1168	(1) is guilty of a misdemeanor; and 26
1169	1169
1170	1170	(2) unless a different punishment is specifically provided by law, on 27
1171	1171	conviction is subject to a fine not exceeding $1,000 for a first offense and not exceeding 28
1172	1172	$5,000 for each additional or subsequent offense. 29
1173	1173
1174	1174	13–201. 30
1175	1175
1176	1176	(a) This section does not apply to a violation of the following provisions of this 31
1177	1177	article: 32 26 HOUSE BILL 267
1178	1178
1179	1179
1180	1180
1181	1181	(1) Title 5, Subtitle 4; 1
1182	1182
1183	1183	(2) Title 7, Subtitle 1; 2
1184	1184
1185	1185	(3) § 7–213 as it applies to electric cooperatives; 3
1186	1186
1187	1187	(4) Title 8, Subtitles 1 and 3; 4
1188	1188
1189	1189	(5) Title 9, Subtitle 3; and 5
1190	1190
1191	1191	(6) Title 8, Subtitle 4. 6
1192	1192
1193	1193	(b) (1) Except as provided in paragraph (2) of this subsection, the Commission 7
1194	1194	may impose a civil penalty not exceeding $25,000 against a person who violates a provision 8
1195	1195	of this division, or an effective and outstanding direction, ruling, order, rule, or regulation 9
1196	1196	of the Commission. 10
1197	1197
1198	1198	(2) The civil penalty that the Commission may impose on a common carrier 11
1199	1199	for each violation may not exceed $2,500. 12
1200	1200
1201	1201	(e) (3) A civil penalty assessed for a violation of [§ 7–505(b)(7), § 7–507, § 13
1202	1202	7–603, § 7–604, or § 7–606] § 7–505(B)(7), § 7–507, § 7–507.1, § 7–603, § 7–603.1, § 14
1203	1203	7–604, § 7–606, OR § 7–707 of this article, or a rule, an order, or a regulation adopted 15
1204	1204	under any of those sections, shall be paid into the Retail Choice Customer Education and 16
1205	1205	Protection Fund under § 7–310 of this article. 17
1206	1206
1207	1207	SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 18
1208	1208	Assembly that: 19
1209	1209
1210	1210	(1) the Public Service Commission shall establish a division within the 20
1211	1211	Commission with the specific responsibility to receive, investigate, and resolve, including 21
1212	1212	by disciplinary actions and prosecution, complaints against electricity suppliers, gas 22
1213	1213	suppliers, and energy salespersons for violations of this Act with respect to retail 23
1214	1214	customers; 24
1215	1215
1216	1216	(2) at least two additional Position Identification Numbers (PINs) shall be 25
1217	1217	created and assigned to the new division, in addition to existing Commission personnel in 26
1218	1218	the Commission’s Consumer Affairs Division, who may be assigned to assist the new 27
1219	1219	division in its responsibilities under this Act; 28
1220	1220
1221	1221	(3) the functions of the new division shall be funded by licensing and 29
1222	1222	renewal fees imposed on electricity suppliers, gas suppliers, and energy salespersons under 30
1223	1223	this Act; and 31
1224	1224
1225	1225	(4) a special assessment on public service companies under Section 3 of this 32
1226	1226	Act shall be used for initial funding of the new division. 33 HOUSE BILL 267 27
1227	1227
1228	1228
1229	1229
1230	1230	SECTION 3. AND BE IT FURTHER ENACTED, That: 1
1231	1231
1232	1232	(a) Notwithstanding any other provision of law, for fiscal year 2025 only, in 2
1233	1233	addition to the amounts appropriated in the budget bill for fiscal year 2025, the Public 3
1234	1234	Service Commission may impose up to $275,000 as a special assessment using the 4
1235	1235	assessment process authorized under § 2–110 of the Public Utilities Article, provided that: 5
1236	1236
1237	1237	(1) the assessment shall be imposed only on those electric companies, 6
1238	1238	electricity suppliers, gas companies, and gas suppliers otherwise subject to the assessment 7
1239	1239	under § 2–110 of the Public Utilities Article; and 8
1240	1240
1241	1241	(2) the limit under § 2–110(c)(12) of the Public Utilities Article does not 9
1242	1242	apply to any assessment made under this section. 10
1243	1243
1244	1244	(b) (1) The amounts collected under subsection (a) of this section may be 11
1245	1245	expended for fiscal year 2025 for the support of the Commission in accordance with an 12
1246	1246	approved budget amendment. 13
1247	1247
1248	1248	(2) Notwithstanding § 2–110(c)(10) of the Public Utilities Article, any 14
1249	1249	unexpended funds at the end of fiscal year 2025 that were collected under this section: 15
1250	1250
1251	1251	(i) shall be considered encumbered by the Public Service 16
1252	1252	Commission by June 30, 2025; and 17
1253	1253
1254	1254	(ii) may not be deducted from the appropriation for fiscal year 2026. 18
1255	1255
1256	1256	(c) The bill sent to each electric company, electricity supplier, gas company, and 19
1257	1257	gas supplier subject to the assessment under subsection (a) of this section shall equal the 20
1258	1258	product of multiplying: 21
1259	1259
1260	1260	(1) the amount authorized to be collected under this section; and 22
1261	1261
1262	1262	(2) the ratio of the gross operating revenues of the entity subject to the 23
1263	1263	special assessment to the total gross operating revenues for all entities subject to the 24
1264	1264	assessment. 25
1265	1265
1266	1266	SECTION 4. AND BE IT FURTHER ENACTED, That : 26
1267	1267
1268	1268	(1) the licenses of electricity suppliers and gas suppliers that are licensed 27
1269	1269	by the Public Service Commission as of July 1, 2024, shall expire on a staggered basis as 28
1270	1270	determined by the Commission, such that equal numbers of licenses shall expire 29
1271	1271	throughout each of the following 3 years but not later than June 30, 2027; 30
1272	1272
1273	1273	(2) the licenses of energy salespersons who are licensed by the Commission 31
1274	1274	on or before June 30, 2027, shall expire on a staggered basis as determined by the 32
1275	1275	Commission, such that equal numbers of licenses shall expire each year; and 33 28 HOUSE BILL 267
1276	1276
1277	1277
1278	1278
1279	1279	(3) all new and renewed licenses for electricity suppliers, gas suppliers, and 1
1280	1280	energy salespersons shall be for a term not exceeding 3 years. 2
1281	1281
1282	1282	SECTION 5. AND BE IT FURTHER ENACTED, That a presently existing obligation 3
1283	1283	or contract right may not be impaired in any way by this Act. 4
1284	1284
1285	1285	SECTION 6. AND BE IT FURTHER ENACTED, That § 7 –510(d) of the Public 5
1286	1286	Utilities Article, as enacted by Section 1 of this Act, shall be construed to apply to all 6
1287	1287	electricity supply agreements and gas supply agreements entered into or renewed on or 7
1288	1288	after January 1, 2025. 8
1289	1289
1290	1290	SECTION 7. AND BE IT FURTHER ENACTED, That this Act shall be construed to 9
1291	1291	apply only prospectively and may not be applied or interpreted to have any effect on or 10
1292	1292	application to any electricity supply agreement or gas supply agreement that is in effect on 11
1293	1293	or before December 31, 2024. 12
1294	1294
1295	1295	SECTION 8. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
1296	1296	1, 2024. 14