DRAFT 10/08/03

ALL NEW TEXT

Title 20

Public Service Commission

Subtitle 51 53 Electric Choice Consumer Protection Regulations.

Chapter 01 General

Authority: The Electric Customer Choice and Competition Act of 1999, Public Utility Companies Article, §2-113, 2-121, 5-101 and 7- 507, Annotated Code of Maryland.

.01 Authorization of Regulations.

The Public Utility Companies Article, Annotated Code of Maryland, provides that the Commission shall have the power to make such regulations as it deems necessary to protect the interest of consumers with regard to competitive electric service.

.02.01ApplicationScope.

Except as specifically provided, these regulations applyThis subtitle applies to all personselectricity suppliers providing competitive electric service to consumers of electricity.

A.The purpose of this subtitle is to establish regulations that protect consumers receiving electric generation service from a competitive electricity supplier from deceptive or misleading practices.

.03.02 Definitions.

  1. In this subtitle, the following terms have the meanings indicated.:
  2. Terms Defined.

(1) “Advertising” means image advertising, market advertising, internet advertising, and solicitations.

(1)“Commission” means the Public Service Commission of Maryland.

(2)“Customer” or “Consumer” means a person that is or, upon entering into a contract, would become an end user of generation service from an electricity supplier.has the meaning stated in Public Utility Companies Article, §7-501, Annotated Code of Maryland.

(3)“Electricity supplier” or “supplier” means a person licensed under COMAR 20.51.

(3)(4)“Evergreen contract” means an existing contract that is capable of automatic automatically renewal renews without any action by the customerconsumer.

(4)(5)“Image advertising” means advertising designed to make a consumer aware that an electricity supplier serves or is willing to serve Maryland consumers and attempts to make a favorable impression of the company.

(6)(a)“Price to Compare” means the price per kW for a typical heating and non-heating consumer offered by a utility service territory.

(b)“Price to Compare” includes a supplier’s price for generation, transmission, and auxiliary services and line losses.

(5)(7)“Market advertising” means any attempt to persuade consumers to subscribe to specific services offered by a specific electricity supplier.

(6) “Solicitation” means advertising that provides consumers an opportunity to contract with an electricity supplier.

(8)“Utility” means an electric company as defined in Public Utility Companies Article, §1-101, Annotated Code of Maryland.

.03 Credit History.

  1. A supplier may refuse to provide service based on a person’s credit history.
  2. A supplier shall apply uniform income, security deposit and credit standards for the purpose of making a decision as to whether or not to offer a service to consumers and apply these standards in a uniform manner.

.04 Geographic Marketing.

  1. A supplier may market services on a geographic basis.
  2. A supplier is not required to offer services throughout a particular utility’s entire service territory.
  3. A supplier may not refuse to provide service to a customer based on the economic character of a geographic area or any part of it, or the collective credit reputation of the area.

.05 Unauthorized Enrollment or Service.

A.An electricity supplier may not enroll a customer without the customer’s permission.

B.The customer’s choice of supplier is the electricity supplier with the last customer enrollment received after the notification period ended.

C.An electricity supplier may not add a new charge for a new or existing service or option without first obtaining a customer’s permission.

D.A consumer alleging a violation of this regulation shall file the allegation within 90 days of the receipt of the utility or supplier bill identifying the violation.

Chapter 02. Advertising.

01.Advertising Permitted.

  1. An electricity supplier may advertise its services.
  2. An electricity supplier’s supplier may not use unclear, inaccurate or misleading advertisements shall be clear, accurate, and not misleading.

C.An electricity supplier’s advertisements shall comply with all applicable Commission regulations, State and federal laws.

.02 Image Advertisements.

An electric supplier’s image advertisement may not attempt to persuade a customer consumer that any component of one company’sits offering is better than the comparable component of another company’s offering.

A.The burden of proving that an advertisement is image advertising rather that some other type of advertising is on the sponsor of the advertisement.

.03 Marketing Advertisements.

An electric supplier’s market advertisement shall include the following information in a clear and conspicuous manner:

  1. (1)The supplier’s Maryland license number issued by the Commission; or

(2)If a license has not been issued by the Commission, a statement indicating that the supplier has applied for a license, but it not been granted;

B.A descriptive itemized list of each service offered including:

(1)Any minimum contract term required to obtain the advertised price;

(2)Any time of use restrictions on the advertised price including the time of day or season;

(3)Any minimum energy usage required to obtain the advertised price; and

(4)`Any customer class restriction on the advertised price;

C.The price for the service offered, including all fixed and variable components;

D.A statement that the price quoted is only for the electricity provided by the supplier and does not include any tax, utility distribution charge, or other utility fee or charge.

E.The duration of the agreement, including initial time period, automatic renewal provisions, and any early termination penalty.

F.A deposit requirement, if any, including the amount of the deposit, deposit return procedure, use of and protection for a deposit.

.04 Written Solicitations.

A supplier advertisement that includes an opportunity to sign up with the supplier shall:

  1. Comply with the provisions of Regulation .03 of this chapter.
  2. Disclose all material terms and conditions of the contract in the advertisement including:

(1)Early termination provisions for the supplier or consumer as well as any course of action available to a consumer upon early termination;

(2)All applicable fees or charges other than price, including a description of the circumstances under which the customer will incur the fee or charge; and

(3)Notice of a consumer’s right to rescind any contract within ten days from the date the utility receives supplier notification of the contract.

.05 Internet Advertising.

  1. A supplier’s Internet advertising shall:

(1)Comply with all requirements of Regulation .03 of this chapter; and

(2)Provide the text of all disclosures, contract terms and conditions, and other information.

  1. If a supplier contract is offered to a customer through the Internet, the supplier shall provide the text of the entire contract in a format:

(1)Readable by scrolling; and

(2)Printable without the need for additional computer software.

.06 Telephone Solicitation.

  1. A supplier soliciting consumers by telephone shall:

(1)Prior to initiating a telephone solicitation, provide the consumer with a print copy of the supplier’s contract; and

  1. Obtain verbal affirmation from the consumer at the beginning of the telephone conversation that the consumer received the contract and it is still in the consumer’s possession.
  2. .A supplier’s telephone solicitation shall include all the information required under Regulation .03 of this chapter, including providing all material contract terms and conditions.
  3. .A supplier may not conduct a residential consumer telephone solicitation before 8a.m. or after 9 p.m.
  4. .A supplier soliciting consumers by telephone shall:

(1)Maintain a telephone do-no-call list; and

(2)Comply with all applicable Maryland and federal law, including the Maryland Telephone Solicitation Act, Commercial Law Article, §§14-2201 – 14-2205, Annotated Code of Maryland.

.07 Disclosure of Consumer Information

  1. Except as provided in §D of this regulation, an electricity supplier may not disclose a customer’s billing, payment and credit information without the electric customer’s consent.
  2. An electricity supplier shall inform the customer of the customer’s right to prohibit disclosure of billing, payment, and credit information.
  3. For purposes of this section an electric customer’s name, address and telephone listing do not constitute billing, payment, or credit information.
  4. An electricity supplier may disclose billing, payment, and credit information for the sole purpose of facilitating bill collection and credit reporting.

Chapter 03 Supplier Contracts

.01 License Requirement.

Only a Commission licensed electricity supplier may execute a consumer electricity supply contract.

.02 Minimum Contract Requirements.

A supplier’s consumer contract for electric service shall contain the following:

  1. All material terms and conditions;
  2. A list and description of the contract services;
  3. A statement of minimum use requirements, if any;
  4. A price description of each service, including all fixed and variable costs;
  5. Notice that the contract does not include utility charges;
  6. A billing procedure description including:

(1)The payment due date; and

(2)The address to send payments.

  1. A statement of contract duration, including initial time period and any rollover provision;
  2. A deposit requirement, if any, including:

(1)The amount of the deposit;

(2)A description of when and under what circumstances the deposit will be returned;

(3)A description of how the deposit may be used; and

(4)A description of how the deposit will be protected;

  1. A description of any fee or charge and the circumstances under which a customer will incur a fee or charge;

J.(1)A statement that the supplier may terminate the contract prematurely including:

(a)The circumstances under which early termination by the supplier may occur;

(b)The manner in which the supplier shall notify the customer of the termination of service;

(c)The duration of the notice period prior to early termination; and

(d)The remedies available to the customer if early termination occurs;

(2)A statement that the customer may terminate the contract prematurely including:

(a)The circumstances under which early termination by the customer may occur;

(b)The manner in which the customer shall notify the supplier of the contract termination;

(c)The duration of the notice period prior to early termination; and

(d)The remedies available to the supplier if early termination occurs.

K.A statement describing contract renewal procedures; and

L.Notice that the customer has a ten-day rescission period.

.03 Methods of Contracting.

  1. A supplier may not enroll a consumer using a process that does not require affirmative confirmation by the consumer.
  2. 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.
  3. Internet Contracts. A supplier that contracts with a consumer by means of the Internet shall:

(1)Confirm that the contract has been made by the person claiming to make the contract;

(2)Comply with applicable Maryland and federal law;

(3)Comply with the requirements under COMAR 20.53.02.05 for Internet solicitations; and

(4)Take appropriate steps to safeguard customer privacy.

  1. 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 20.53.02.06;

(b)Confirm that customer questions relating to the contract were answered;

(c)Confirm that:

(i)An independent third party verified the contract; or

(ii)Record the telephone conversation and maintain the recording as required by the Commission;

(d)Mail or otherwise transmit to the consumer a complete written contract within three business days of the contracting conversation;

(e)Disclose all material contract terms and conditions to the consumer over the telephone; and

(f)Allow the customer executing a contract to rescind the contract within ten calendar days from the transmittal of the contract.

(1)A supplier that sends a contract over the Internet to a valid email address of the contracting consumer is considered to have complied with the requirement of §D(2)(d) of this regulation.

.04 Evergreen Contracts

  1. A supplier shall provide a customer with notice of the pending renewal of an evergreen contract 60 days before the automatic renewal is scheduled to occur, and a second notice 30 days before the customer’s automatic renewal date.
  2. The supplier notice required under § A of this regulation shall:

(1)Provide notice to the customer of any changes in the material terms and conditions of the agreement;

(2)Inform the customer how to terminate the contract without penalty;

(3)Inform the customer that terminating the evergreen contract without selecting another supplier will return the customer to standard offer service; and

(4)Contain the Commission’s and Attorney General’s Internet addresses and toll-free telephone numbers.

C.All changes to the contract shall be clearly stated and highlighted.

Chapter 04 Consumer Disclosure

.01 Required Disclosure Information.

Within 30 days of contracting for service, a supplier shall provide a customer with price information, notice of enrollment, terms of service document, notice of the right to rescind the contract, billing information, and a consumer’s rights pamphlet.

.02 Price Information

A.The supplier’s price for service shall include all fixed and variable components.

B.A supplier that chooses to compare its price to the standard offer price of a utility shall base the comparison on the uniform pricing concept of price to compare.

C.When a supplier compares its price to the price a consumer would pay for standard offer service, the standard offer service price is the price offered in the 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.

.03 Notice of Enrollment

A.A supplier shall provide notice of enrollment of a customer to a utility in a format consistent with the Commission approved utility supplier coordination agreement.

B.A customer entering into an agreement with a supplier shall receive written notice of enrollment.

C.A customer is not enrolled until the right to rescind the contract under Regulation .04 of this chapter has expired.

.04 Right to Rescind

A supplier shall inform a customer of the right to rescind a contract within ten calendar days without penalty.

.05 Billing Information.

  1. A supplier shall notify a customer in writing that the customer:

(1) May receive more than one bill or statement for electric service; and

(2) The total electric bill will consist of charges from the supplier and a utility.

  1. Single bill payment posting.

The sequential order for the posting of a customer payment on a single bill, which includes both utility and supplier charges is, if appropriate, as follows:

(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.

(9)Charges for other services.

.06 Consumer’s Rights Pamphlet.

  1. A supplier shall provide information about consumer rights in the form of a pamphlet, including complaint procedures and remedies available to consumers within 30 calendar days of the date that the contract becomes final, if not otherwise provided.
  2. A supplier may provide the consumer’s rights information pamphlet in an initial mailing to the customer.
  3. A supplier’s consumer’s rights information pamphlet shall be presented in clear and understandable language and format.
  4. A supplier shall include the following information in the consumer’s rights pamphlet:

(1)Mailing address for payments;

(2)Payment due date;

(3)Notice requirements for early termination by the supplier and the options available to the customer;

(4)Notice requirements for early termination by the customer and the options available to the customer;

(5)Customer service information, including toll-free telephone number, mailing address, and dispute information; and

(6)Complaint procedure information including the toll-free number for the Office of the Attorney General.

Chapter 05 Notice of Contract Termination or Renewal

.01 Notice.

  1. Prior to the termination of the contract, a supplier shall provide the customer:
  2. A notice 60 days prior to termination of an electric supply contract; and
  3. A second notice 30 days prior to termination of the contract.
  4. Within ten business days after the actual termination of electric service by the supplier, the supplier shall provide written notification to the customer that electric service is no longer being provided by the supplier.
  5. The supplier termination notice required under §B of this regulation shall include:
  6. Final bill payment instructions;
  7. A description of the process for a customer to obtain a new supplier;
  8. A statement informing the customer that unless the customer selects a new service provider, termination of the contract shall return the customer to the utility; and
  9. The toll free telephone numbers of the Public Service Commission and the Office of the Attorney General.

.02 Early Termination

  1. A supplier may not terminate a customer for failure to pay charges attributable to the distribution and transmission portion of the bill.
  2. Notice of early termination by the supplier or customer shall comply with the notice of termination rules.
  3. A supplier may impose a reasonable early termination fee if a customer terminates the contract prior to the expiration date.
  4. A supplier may deduct a termination fee from a customer deposit.
  5. A supplier may not charge a termination fee to a customer if the termination occurs during the ten-day decision period provided under COMAR 20.53.03.02.

.03 Marketing Advertisements.

A marketing advertisement shall include the following information in a clear and conspicuous manner:

The supplier’s Maryland license number issued by the Commission. If a license has not issued from the Commission, the advertisement shall contain a statement indicating that an application for a license has been filed with the Commission, but has not been granted.

A.An itemization or description of the service offered that includes the following:

(1)The minimum contract term required, if any, to obtain the advertised price shall be clearly stated.

(2)Time of use restrictions, if any, on the advertised price shall be clearly stated including the time of day the advertised price will be in effect.

(3)The minimum energy usage required to obtain the advertised price shall be clear and conspicuous.

(4)A statement that the offer is only for a particular customer class, if applicable.

The price for the service offered, including all fixed and variable components.

Price comparison information as required by the Commission.

A statement that the price quoted is only for the generation and transmission charges from the supplier and the price does not include taxes, distribution costs, and any other applicable fees or charges.