- A. An applicant who intends to collect or a gas supplier who collects a deposit or prepayment for gas supply from a customer shall post a bond as required under this regulation.
- B. The initial bond requirement for an applicant or gas supplier who intends to collect a deposit or prepayment from a customer shall be $50,000.
C. Six months after the posting of the initial bond, or when the amount of deposits or prepayments exceed the initial bond required by this regulation, whichever is earlier, a gas supplier shall:
- (1) Conduct an audit, performed by an independent certified public accountant or a Commission auditor;
- (2) If an independent certified public accountant is used, provide a copy to the Commission; and
- (3) Comply with the bonding requirements in §§D and E of this regulation.
- D. Except as provided in §B of this regulation, the bond required under §A of this regulation shall equal or exceed the total amount of any deposits or prepayments a gas supplier collects.
E. In calculating the bonding requirement under §D of this regulation, prepayments or deposits do not include funds:
- (1) Collected from a customer whose metered use is expected to or does exceed 625 dekatherms during any month of the previous 12-month period; or
- (2) Received in advance of service from a customer that voluntarily participates in a billing plan under which the customer's electric costs are averaged over a period of time.
- F. The bond required by §A of this regulation shall be obtained from a company licensed in the State to write surety types of insurance.
Authority: Public Utilities Article, §§2-113, 2-121, 5-101, 7-507, 7-511, and 7-601—7-606, Annotated Code of Maryland
Effective date: August 18, 2003 (30:16 Md. R. 1076)
Regulation .01A amended effective March 7, 2022 (49:5 Md. R. 367)
Regulation .03C amended effective March 7, 2022 (49:5 Md. R. 367)
Regulation .05A amended effective March 7, 2022 (49:5 Md. R. 367)
Regulation .05C, D adopted effective March 7, 2022 (49:5 Md. R. 367)