Subtitle 53 ELECTRICITY SUPPLIER AND GAS SUPPLIER—RESIDENTIAL CONSUMER
PROTECTION
Notice of Proposed Action
[04-274-P]
The Public Service Commission proposes to adopt:
(1) Regulations .01—.08 under a new chapter, COMAR 20.53.01 General;
(2) Regulations .01—.04 under a new chapter, COMAR 20.53.02 Advertising and
Solicitations;
(3) Regulations .01—.03 under a new chapter, COMAR 20.53.03 Supplier Contracts;
(4) Regulations .01—.03 under a new chapter, COMAR 20.53.04 Consumer Disclosure; and
(5) Regulations .01—.03 under a new chapter, COMAR 20.53.05 Notice of Contract
Expiration or Cancellation.
The proposed action was considered by the Public Service Commission at a regularly scheduled
administrative meeting on August 11, 2004, notice of which was given under State Government
Article, §10-506(c), Annotated Code of Maryland.
Statement of Purpose
The purpose of this action is to establish regulations pertaining to consumer protections for
residential customers of electric and gas commodity suppliers. This action also governs the
interaction of residential consumers, electricity and gas suppliers, and electric and gas utilities.
Comparison to Federal Standards
There is no corresponding federal standard to this proposed action.
Estimate of Economic Impact
I. Summary of Economic Impact. The proposed action may have some economic impact on
electric and gas utilities relating to reprogramming certain aspects of their electronic data
interchange. Cost estimates for the proposed action range from $0 to $1,500,000. These costs
would be recouped from ratepayers over time through rates. Additionally, the proposed
regulations may actually save suppliers money, but this amount is undeterminable.
Revenue
(R+/R-)
II. Types of
Expenditur Magnitud
Economic Impacts.
e
e
(E+/E-)
A. On issuing agency:
B. On other State agencies:
C. On local governments:
NONE
NONE
NONE
Benefit (+)
Magnitud
Cost (-)
e
D. On regulated industries or trade groups:
E. On other industries or trade groups:
F. Direct and indirect effects on public:
(-)
NONE
(+)
Minimal
Minimal
III. Assumptions. (Identified by Impact Letter and Number from Section II.)
D. Regulated utilities may incur some costs associated with providing customer information to
suppliers as a result of information technology reprogramming. Licensed suppliers may incur
some additional costs in providing required information in advertising and other solicitation
materials.
F. Consumers participating in electric and gas choice programs will receive the benefits of
enrollment requirements, mandatory contract requirements, mandatory advertising requirements,
complaint procedures, and various other customer protections.
Economic Impact on Small Businesses
The proposed action has minimal or no economic impact on small businesses.
Opportunity for Public Comment
Comments may be sent to O. Ray Bourland, Executive Secretary, Public Service Commission,
William Donald Schaefer Tower, 6 St. Paul Street, Baltimore, Maryland 21202-6806, or call
(410) 767-8067, or fax to (410) 333-6495. These comments must be received by November 15,
2004. 20.53.01 General
Authority: Public Utility Companies Article, §§2-113, 2-121, 5-101,
7-501—7-507, and 7-601—7-607,
Annotated Code of Maryland
.01 Scope.
This subtitle applies to all licensed suppliers in their provision of retail electric or gas supply
service to residential consumers.
.02 Definitions.
A. In this subtitle, the following terms have the meanings indicated.
B. Terms Defined.
(1) “Commission” means the Public Service Commission of Maryland.
(2) “Customer” or “consumer” has the meaning stated in Public Utility Companies Article, §§7501 and 7-601, Annotated Code of Maryland, limited to residential service.
(3) “Electricity supplier” means a person licensed under COMAR 20.51.
(4) “Evergreen contract” means an existing contract that automatically renews without any
action by the consumer.
(5) “Gas supplier” means a person licensed under COMAR 20.54.
(6) “Overcharge” means the difference between the price the customer would have paid the
customer's authorized supplier and what the customer paid to the unauthorized supplier.
(7) “Supplier” means a person licensed under either COMAR 20.51 or 20.54.
(8) “Utility” means an electric company or a gas company as defined in Public Utility
Companies Article, §1-101, Annotated Code of Maryland.
.03 Disclosure of Consumer Information.
A. Except as provided in §B of this regulation, a supplier may not disclose a customer's billing,
payment, and credit information without the customer's consent.
B. A supplier may disclose billing, payment, and credit information for the sole purpose of
facilitating billing, bill collection, and credit reporting.
C. A supplier shall provide a customer with a copy of the supplier's customer information
privacy policy.
.04 Credit History.
A. A supplier may refuse to provide service based on an individual's credit history.
B. A supplier shall apply uniform income, security deposit, and credit standards for the purpose
of making a decision as to whether to offer a service to consumers.
.05 Geographic Marketing.
A. A supplier may market services on a geographic basis.
B. A supplier is not required to offer services throughout a particular utility's entire service
territory.
C. A supplier may not refuse to provide service to a customer based on the economic character
of a geographic area or the collective credit reputation of the area.
.06 Unauthorized Enrollment or Service.
A. A supplier may not enroll a customer without the customer's permission.
B. The consumer's choice of electricity supplier is the electricity supplier with the last enrollment
of the customer received by the utility 17 days before the customer's next meter reading date.
C. The consumer's choice of gas supplier is the first gas supplier enrolling the customer for any
given month.
D. A supplier may not add a new charge for a new service, existing service, or service option
without first obtaining permission from the customer, verifiable to the same extent and using the
same methods specified for contracting.
E. A consumer alleging a violation of this regulation may file a dispute with the Office of
External Relations.
F. Upon proof of the allegations, the consumer's remedies through the Office of External
Relations is limited to a refund of any overcharge and any fees or penalties paid by the consumer
as a result of the unauthorized enrollment.
G. This regulation may not be construed to limit the authority of the Commission under Public
Utility Companies Article, §7-507(k), Annotated Code of Maryland.
.07 Termination.
An electric or gas company may not terminate service to a customer for failure to pay supplier
charges.
.08 Waiver.
A regulation in this subtitle may be waived by the Commission for good cause shown.
20.53.02 Advertising and Solicitations
Authority: Public Utility Companies Article, §§2-113, 2-121, 5-101,
7-501—7-507, and 7-601—7-607,
Annotated Code of Maryland
.01 Advertising Permitted.
A. A supplier may advertise its services.
B. A supplier may not engage in a marketing or trade practice that is unfair, false, misleading,
or deceptive.
.02 Disclosures.
A. A supplier's marketing or solicitation information shall include the supplier's Maryland
license number in a clear and conspicuous manner.
B. If a price is quoted, the following statements are required:
(1) The price quoted is only for the specified commodity provided by the supplier;
(2) The price quoted does not include any tax, utility distribution charge, or other utility fee or
charge; and
(3) The supplier's price is not regulated by the Commission.
.03 Internet Advertising.
A supplier shall post on the Internet readily understandable information about its services,
prices, and emissions disclosures.
.04 Telephone Solicitation.
A. A supplier soliciting consumers by telephone shall comply with all applicable State and
federal law, including the Maryland Telephone Solicitation Act, Commercial Law Article, §§142201—14-2205, Annotated Code of Maryland.
B. A supplier may not conduct a residential consumer telephone solicitation before 8 a.m. or
after 9 p.m.
20.53.03 Supplier Contracts
Authority: Public Utility Companies Article, §§2-113, 2-121, 5-101,
7-501—7-507, and 7-601—7-607,
Annotated Code of Maryland
.01 Minimum Contract Requirements.
A. Only a person licensed under COMAR 20.51 or 20.54 may execute an electricity supply
contract or gas supply contract with a customer.
B. A supplier contract shall contain all material terms and conditions including:
(1) A list and description of the contract services;
(2) A statement of minimum use requirements, if any;
(3) A description of any time of use restrictions, including the time of day or season;
(4) A price description of each service, including all fixed and variable costs;
(5) A notice that the contract does not include utility charges;
(6) A billing procedure description;
(7) In the case of consolidated billing, a notice that the customer acknowledges that customer
billing and payment information may be provided to the supplier;
(8) A statement of contract duration, including initial time period and any rollover provision;
(9) A deposit requirement, if any, including:
(a) The amount of the deposit;
(b) A description of when and under what circumstances the deposit will be returned;
(c) A description of how the deposit may be used; and
(d) A description of how the deposit will be protected;
(10) A description of any fee or charge and the circumstances under which a customer may incur
a fee or charge;
(11) A statement that the supplier may terminate the contract early including the:
(a) Circumstances under which early cancellation by the supplier may occur;
(b) Manner in which the supplier shall notify the customer of the early cancellation of the
contract;
(c) Duration of the notice period before early cancellation;
(d) Remedies available to the customer if early cancellation occurs; and
(e) Amount of any early cancellation fee;
(12) A statement that the customer may terminate the contract early including the:
(a) Circumstances under which early cancellation by the customer may occur;
(b) Manner in which the customer shall notify the supplier of the early cancellation of the
contract;
(c) Duration of the notice period before early cancellation; and
(d) Remedies available to the supplier if early cancellation occurs;
(13) A statement describing contract renewal procedures, if any;
(14) A dispute procedure; and
(15) The Commission's toll-free number and Internet address.
.02 Methods of Contracting.
A. A supplier may not enroll a consumer using a process that does not require affirmative
confirmation by the consumer.
B. If a supplier solicitation is in writing or a supplier contract is provided in response to
documents submitted upon personal contact, a signed contract is required.
C. Internet Contracts.
(1) A supplier that contracts with a consumer by means of the Internet shall:
(a) Confirm the identity of the person making the contract;
(b) Comply with applicable Maryland and federal law; and
(c) Take appropriate steps to safeguard customer privacy.
(2) A supplier that sends a contract over the Internet to a valid email address of the contracting
consumer is considered to have complied with §C(1)(a) of this regulation.
D. Telephone Contracts.
(1) A supplier may contract with a customer through a telephone solicitation.
(2) A supplier contracting with a consumer through a telephone solicitation shall:
(a) Comply with COMAR 20.53.02.04;
(b) Confirm that customer questions relating to the contract were answered;
(c) Do one of the following:
(i) Confirm that an independent third party verified the contract; or
(ii) Record the entire telephone conversation and maintain the recording for the duration of the
contract;
(d) Mail or otherwise transmit to the consumer a complete written contract within 3 business
days of the contracting conversation; and
(e) Disclose all material contract terms and conditions to the consumer over the telephone.
(3) A supplier that sends a contract over the Internet to a valid email address of the contracting
consumer is considered to have complied with §D(2)(d) of this regulation.
.03 Evergreen Contracts.
A. A supplier shall provide a customer with a notice of the pending renewal of an evergreen
contract 45 days before the automatic renewal is scheduled to occur.
B. The supplier notice required under §A of this regulation shall:
(1) Provide a clearly stated and highlighted notice to a customer of any changes in the material
terms and conditions of the agreement;
(2) Inform the customer how to terminate the contract without penalty; and
(3) Inform the customer that terminating the evergreen contract without selecting another
supplier will return the customer to utility commodity service.
20.53.04 Consumer Disclosure
Authority: Public Utility Companies Article, §§2-113, 2-121, 5-101,
7-501—7-507, and 7-601—7-607,
Annotated Code of Maryland
.01 Price Information.
A. The supplier's price for service shall include all fixed and variable components.
B. When an electricity supplier compares its price to the price a consumer would pay for utility
electric commodity service, the electric commodity services price is the standard offer service
price offered in the electric utility territory where the supplier's service is to be provided.
C. When a gas supplier compares its price to the price a consumer would pay for gas utility
commodity service, the utility commodity service price is the price offered in the gas utility
territory where the supplier's service is to be provided.
D. A supplier shall post its commodity price on the Internet in a timely manner.
.02 Notice of Enrollment.
A. An electricity supplier shall provide notice of enrollment of a customer to a utility in a format
consistent with the Commission accepted electric utility supplier coordination agreement.
B. A gas supplier shall provide an accepted notice of enrollment of a customer to a utility in a
format consistent with the Commission accepted gas utility tariff.
C. A customer entering into an agreement with a supplier shall receive written notice of
enrollment from the supplier.
.03 Billing Information.
A. When partial payment of a consolidated bill for utility and supplier service is made by a
customer, the money shall be distributed according to the payment-posting schedule in §B of this
regulation.
B. Single Bill Payment Posting. The posting of a customer payment on a single bill that includes
both utility and supplier charges is in the following sequential order:
(1) Gas utility service arrearages;
(2) Electric utility service arrearages;
(3) Gas supplier arrearages;
(4) Electric supplier arrearages;
(5) Gas utility service current charges;
(6) Electric utility service current charges;
(7) Gas supplier current charges;
(8) Electric supplier current charges; and
(9) Charges for other services.
C. In the case of consolidated billing, suppliers shall have access to customer billing and
payment information from the utility for the supplier's presently enrolled customers.
20.53.05 Notice of Contract Expiration or Cancellation
Authority: Public Utility Companies Article, §§2-113, 2-121, 5-101,
7-501—7-507, and 7-601—7-607,
Annotated Code of Maryland
.01 Notice.
A supplier shall provide the customer a notice 45 days before expiration or cancellation of a
supply contract.
.02 Contents of Notice.
The supplier's expiration or cancellation notice required under Regulation .01 of this chapter
shall include:
A. Final bill payment instructions;
B. A statement informing the customer that unless the customer selects a new service provider,
cancellation of the contract shall return the customer to the utility; and
C. The toll free telephone number and the web site address of the Commission.
.03 Early Cancellation.
A. A supplier or customer may cancel service under the terms of the contract.
B. Notice of early cancellation by the supplier or customer shall comply with Regulation .02 of
this chapter.
C. Early Cancellation Fee.
(1) A supplier may impose a reasonable early cancellation fee if a customer cancels the contract
before the expiration date.
(2) A supplier may deduct a cancellation fee from a customer deposit.
D. Except as provided in a tariff providing for a supplier default, a utility may remove a
customer from supplier services only if directed by a supplier.
E. On request of a customer to cancel supply service with the supplier, a supplier shall process
the customer's cancellation request for gas service to meet the utility's next available
cancellation cycle and for electric service within 2 business days after receipt of the cancellation
request.
F. When a supplier contracts with a consumer, the newly contracting supplier shall notify the
consumer that the consumer may incur early cancellation penalties under a current supplier
contract.
DONALD P. EVELETH
Assistant Executive Secretary
Public Service Commission