Md. Code Regs. 20.54.03.03 - Requirement - Collection of Prepayment or Deposit
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.
Notes
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