Maryland § 7-604.2

Full text of Maryland Maryland Code § 7-604.2, with citation guidance and answers to common questions.

§ 7-604.2.

    (a)    In this section, “default gas commodity service” means the supply of retail gas commodity service by a customer’s gas company.

    (b)    (1)    This subsection applies to residential gas supply other than default gas commodity service provided by a gas company.

        (2)    A gas supplier that supplies gas to residential retail gas customers:

            (i)    may offer gas service only at a price that does not exceed the trailing 12–month average of the gas company’s default gas commodity service in the gas company’s service territory as of the date of the agreement with the customer;

            (ii)    may offer residential gas supply only for a term not to exceed 12 months at a time and may automatically renew the term only if the gas supplier provides notice to the customer 90 days before and 30 days before renewal;

            (iii)    subject to paragraph (3) of this subsection, may not offer a variable rate other than a rate that adjusts for seasonal variation not more than twice in a single year; and

            (iv)    may not pay a commission or other incentive–based compensation to an energy salesperson for enrolling customers.

        (3)    Paragraph (2)(iii) of this subsection does not prohibit the offer and use of rates that differ based on the total number of therms used by a customer in any billing period.

        (4)    A gas supplier that supplies gas to residential retail gas customers may not sell to a gas company, and a gas company may not purchase from the gas supplier, accounts receivable.

    (c)    A gas company and a gas supplier that supplies gas to residential retail gas customers shall establish a mechanism for a customer whose account number or customer choice identification number has been compromised to receive a replacement account number or customer choice identification number on request, subject to verification in a manner approved by the Commission.

    (d)    (1)    Except as provided in paragraph (2) of this subsection, as approved by the Commission by regulation or order, each gas company and each gas supplier that supplies gas to residential retail gas customers shall allow a customer to indicate the customer’s intention to remain on default gas commodity service indefinitely and not to receive directed marketing contacts from gas suppliers through the implementation of a “do not transfer” list onto which the customer may request to be placed.

        (2)    A gas supplier that supplies gas to residential retail gas customers may contact a customer on a “do not transfer” list until the gas supply agreement entered into between the gas supplier and the customer expires.

    (e)    (1)    In this subsection, “billing entity” means a gas company, a licensed gas supplier, or any other entity that is responsible for issuing a gas bill to a residential customer.

        (2)    On or before the 15th day of each month, each billing entity shall submit a report to the Commission on customer choice in its service territory for the preceding month, including:

            (i)    the total therms distributed to customers purchasing gas from a third–party gas supplier;

            (ii)    the total supply cost charged to customers purchasing gas from a third–party gas supplier;

            (iii)    the total cost that customers specified in item (ii) of this paragraph would have paid under default gas commodity service;

            (iv)    the net third–party total cost compared to the net default gas commodity service cost;

            (v)    the total third–party average rate;

            (vi)    the default gas commodity service average rate;

            (vii)    the difference between the total third–party average rate and the default gas commodity service average rate;

            (viii)    the third–party average residential rates broken out by supplier and the variance between each of these rates and the default gas commodity service average rate;

            (ix)    the third–party average general service nondemand rates broken out by supplier and the variance between each of these third–party rates and the default gas commodity service average rate;

            (x)    the third–party average general service demand rates broken out by supplier and the variance between each of these third–party rates and the default gas commodity service average rate;

            (xi)    the third–party average large power demand rates broken out by supplier and the variance between each of these third–party rates and the default gas commodity service average rate; and

            (xii)    other pertinent information the Commission considers appropriate.

    (f)    The Commission shall, by regulation or order, adopt procedures to carry out this section.

Frequently Asked Questions About Maryland § 7-604.2

What does Maryland Code § 7-604.2 cover?

Section 7-604.2 is part of the Maryland Code, the codified statutory law of Maryland. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Maryland § 7-604.2?

A common citation format is "Maryland Code § 7-604.2" (Maryland). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Maryland law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maryland official source linked on this page or consult a licensed Maryland attorney.

How does Maryland § 7-604.2 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maryland can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Maryland.