Md. Code art. Public Utilities, § 7-507Md. Code, Public Utilities § 7-507

Current with changes from the 2024 Legislative Session

Section 7-507 - Licenses to supply electricity

(a) A person, other than an electric company providing standard offer service under § 7-510(c) of this subtitle, a municipal electric utility serving customers solely in its distribution territory, the Department of General Services selling energy under § 7-704.4 of this title, or a community choice aggregator under § 7-510.3 of this subtitle, may not engage in the business of an electricity supplier in the State unless the person holds a license issued by the Commission.

(b)

(1) An application for an electricity supplier license shall:

(i) be made to the Commission in writing on a form adopted by the Commission;

(ii) be verified by oath or affirmation; and

(iii) contain information that the Commission requires, including:

1. proof of technical and managerial competence;

2. proof of compliance with all applicable requirements of the Federal Energy Regulatory Commission, and any independent system operator or regional or system transmission operator to be used by the licensee;

3. a certification of compliance with applicable federal and State environmental laws and regulations that relate to the generation of electricity; and

4. payment of the applicable licensing fee.

(2)

(i) The term of a residential electricity supplier license is 3 years.

(ii) The terms of licenses may be staggered as determined by the Commission.

(iii) Unless a license for a residential electricity supplier is renewed for a 3-year term in accordance with this subsection, the license expires on the date that the Commission sets.

(iv) A licensee may renew a license for a 3-year term before the license expires if the licensee:

1. otherwise is entitled to be licensed;

2. submits to the Commission a renewal application on the form that the Commission provides; and

3. pays to the Commission the applicable renewal fee set by the Commission.

(c) The Commission shall, by regulation or order:

(1) require proof of financial integrity;

(2) require a licensee to post a bond or other similar instrument if, in the Commission's judgment, the bond or similar instrument is necessary to insure an electricity supplier's financial integrity;

(3) require a licensee to:

(i) provide proof that the licensee is qualified to do business in the State with the Department of Assessments and Taxation; and

(ii) agree to be subject to all applicable taxes; and

(4) adopt any other requirements the Commission finds to be in the public interest, which may include different requirements for:

(i) electricity suppliers that serve only large customers; and

(ii) the different categories of electricity suppliers.

(d) A license issued under this section may not be transferred without prior Commission approval.

(e) The Commission shall adopt regulations or issue orders to:

(1) protect consumers, electric companies, electricity suppliers, energy salespersons, and energy vendors from anticompetitive and abusive practices;

(2) require each electricity supplier , each energy salesperson, and each energy vendor to provide, in addition to the requirements under § 7-505(b)(5) of this subtitle, adequate and accurate customer information to enable customers to make informed choices regarding the purchase of any electricity services offered by the electricity supplier;

(3) establish reasonable restrictions on telemarketing;

(4) establish procedures for contracting with customers;

(5) establish requirements and limitations relating to deposits, billing, collections, and contract cancellations;

(6) establish provisions providing for the referral of a delinquent account by an electricity supplier to the standard offer service under § 7-510(c) of this subtitle; and

(7) establish procedures for dispute resolution.

(f) In accordance with regulations or orders of the Commission, electricity bills, for competitive and regulated electric services, provided to consumers may provide, in addition to the requirements of § 7-505(b)(5) of this subtitle and subsection (e)(2) of this section, the following information:

(1) the identity and phone number of the electricity supplier of the service;

(2) sufficient information to evaluate prices and services; and

(3) information identifying whether the price is regulated or competitive.

(g)

(1) An electricity supplier, an energy salesperson, an energy vendor, or any person or governmental unit may not, without first obtaining the customer's permission:

(i) make any change in the electricity supplier for a customer; or

(ii) add a new charge for a new or existing service or option.

(2) The Commission shall adopt regulations or issue orders establishing procedures to prevent the practices prohibited under paragraph (1) of this subsection.

(h)

(1) An electricity supplier, an energy salesperson, or an energy vendor may not discriminate against any customer based wholly or partly on race, color, creed, national origin, gender identity, disability, sexual orientation, or sex of an applicant for service or for any arbitrary, capricious, or unfairly discriminatory reason.

(2) An electricity supplier, an energy salesperson, or an energy vendor may not refuse to provide service to a customer except by the application of standards that are reasonably related to the electricity supplier's economic and business purposes.

(i) An electricity supplier, an energy salesperson, and an energy vendor shall be subject to all applicable federal and State environmental laws and regulations.

(j) An electricity supplier shall post on the Internet information that is readily understandable about its services and rates for small commercial and residential electric customers.

(k)

(1) Subject to subsection (r) of this section, for just cause on the Commission's own investigation or on complaint of the Office of People's Counsel, the Attorney General, or an affected party, the Commission may:

(i) deny a license to, or revoke , suspend, or refuse to renew the license of, an electricity supplier , an energy salesperson, or an energy vendor;

(ii) impose a civil penalty or other remedy;

(iii) order a refund or credit to a customer; or

(iv) impose a moratorium on adding or soliciting additional customers by the electricity supplier , energy salesperson, or energy vendor.

(2) A civil penalty may be imposed in addition to the Commission's decision to deny , revoke, suspend, or refuse to renew a license or impose a moratorium.

(3) Just cause includes:

(i) intentionally providing false information to the Commission;

(ii) switching, or causing to be switched, the electricity supply for a customer without first obtaining the customer's permission;

(iii) failing to provide electricity for its customers;

(iv) committing fraud or engaging in deceptive practices;

(v) failing to maintain financial integrity;

(vi) violating a Commission regulation or order;

(vii) failing to pay, collect, remit, or calculate accurately applicable State or local taxes;

(viii) violating a provision of this article or any other applicable consumer protection law of the State;

(ix) conviction of a felony by the licensee or principal of the licensee or any crime involving fraud, theft, or deceit;

(x) denial , suspension, or revocation of or refusal to renew a license by any State or federal authority; and

(xi) commission of any of the acts described in items (i)through (x) of this paragraph by a person that is an affiliate of the licensee or that is under common control with the licensee.

(l)

(1) An electricity supplier, an energy vendor, or any other person, except for an energy salesperson, selling or offering to sell electricity in the State in violation of this section or § 7-318 of this title, after notice and an opportunity for a hearing, is subject to:

(i) a civil penalty of not more than $25,000 for the violation;

(ii) license denial , revocation, or suspension or refusal to renew the license; or

(iii) both.

(2) An energy salesperson selling or offering to sell electricity in the State in violation of this section or § 7-317 of this title, after notice and an opportunity for a hearing, is subject to license denial, revocation, or suspension or refusal to renew the license.

(3) Each day or part of a day a violation continues is a separate violation.

(4) Each customer to whom electricity is sold or offered in violation of this section is a separate violation.

(5) The Commission shall determine the amount of any civil penalty after considering:

(i) the number of previous violations of any provision of this division by the electricity supplier, energy vendor, or other person;

(ii) the gravity of the current violation;

(iii) the good faith of the electricity supplier, energy vendor, or other person charged in attempting to achieve compliance after notification of the violation; and

(iv) any other matter that the Commission considers appropriate and relevant.

(m) In connection with a consumer complaint or Commission investigation under this section or § 7-317 or § 7-318 of this title, an electricity supplier, an energy salesperson, energy vendor, and any other person selling or offering to sell electricity in the State shall provide to the Commission access to any accounts, books, papers, and documents that the Commission considers necessary to resolve the matter at issue.

(n) The Commission may order the electricity supplier, energy salesperson, an energy vendor, or other person to cease adding or soliciting additional customers or to cease serving customers in the State.

(o) The Commission shall consult with the Consumer Protection Division of the Office of the Attorney General before issuing regulations designed to protect consumers.

(p) The People's Counsel shall have the same authority in licensing, complaint, and dispute resolution proceedings as it has in Title 2 of this article.

(q) Nothing in this subtitle may be construed to affect the authority of the Division of Consumer Protection in the Office of the Attorney General to enforce violations of Titles 13 and 14 of the Commercial Law Article or any other applicable State law or regulation in connection with the activities of electricity suppliers , energy salespersons, and energy vendors.

(r) The Commission may not impose a civil penalty on an energy salesperson under subsection (k) or (l) of this section.

Md. Code art. Public Utilities, § 7-507Md. Code, Public Utilities § 7-507

Amended by 2024 Md. Laws, Ch. 377,Sec. 1, eff. 10/1/2024.

Amended by 2024 Md. Laws, Ch. 537,Sec. 1, eff. 7/1/2024.

Amended by 2021 Md. Laws, Ch. 449, Sec. 2, eff. 6/1/2021.

Amended by 2016 Md. Laws, Ch. 134, Sec. 1, eff. 10/1/2016.