Electricity and Gas - Retail Supply (Freedom From Monopolies Act)

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0974*

HOUSE BILL 974
C5 6lr1458
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By: Delegates Chisholm, Adams, Arentz, Arikan, Beauchamp, Bouchat, Buckel,
Ciliberti, Fisher, Grammer, Hartman, Hornberger, Kipke, R. Long,
Mangione, McComas, Metzgar, Miller, M. Morgan, Nawrocki, Nkongolo,
Rose, Schmidt, Szeliga, Tomlinson, and Valentine
Introduced and read first time: February 6, 2026
Assigned to: Environment and Transportation

A BILL ENTITLED

AN ACT concerning 1

Electricity and Gas – Retail Supply 2
(Freedom From Monopolies Act) 3

FOR the purpose of repealing certain provisions related to energy salespersons and energy 4
vendors, residential electricity supplier license terms, electric c ooperatives and 5
standard offer service, the sale of certain electricity supply and gas supply, a 6
mechanism for a customer to request and receive a certain replacement number, the 7
placement of certain customers on a certain list, certain reports submitted by certain 8
billing entities, the adoption of certain regulations regarding residential energy 9
retailer notice and disclosure requirements, cost recovery by electric companies and 10
gas companies, green energy, renewable energy credits, and a certain training and 11
education program; altering the amount of a certain assessment charge, the scope of 12
a certain training and educational program, the list of entities that are required to 13
hold a license as an electricity supplier for certain purposes, the authority of t he 14
Public Service Commission to take certain actions related to persons holding an 15
electricity supplier license, and the contents of a certain status report and certain 16
reports submitted to the Commission from each electricity supplier; changing the 17
name of the Education and Protection Fund to the Retail Choice Customer Education 18
and Protection Fund; modifying the purpose and uses of the Fund; altering and 19
repealing certain civil penalties; abolishing a certain division within the 20
Commission; providing for the transfer of certain employees; and generally relating 21
to retailing energy supply. 22

BY repealing 23
Article – Public Utilities 24
Section 1–101(l–1) and (l–2), 7–315 through 7–318, 7–603.1, 7–604.2, and 7–707 25
Annotated Code of Maryland 26
(2025 Replacement Volume and 2025 Supplement) 27
2 HOUSE BILL 974

BY repealing and reenacting, without amendments, 1
Article – Public Utilities 2
Section 1–101(a), 2–110(a), and 13–201(a) 3
Annotated Code of Maryland 4
(2025 Replacement Volume and 2025 Supplement) 5

BY repealing and reenacting, without amendments, 6
Article – Public Utilities 7
Section 2–110(b) 8
Annotated Code of Maryland 9
(2025 Replacement Volume and 2025 Supplement) 10
(As enacted by Chapters 7 and 19 of the Acts of the General Assembly of the 2025 11
Special Session) 12

BY repealing and reenacting, with amendments, 13
Article – Public Utilities 14
Section 2–110(c)(12) 15
Annotated Code of Maryland 16
(2025 Replacement Volume and 2025 Supplement) 17
(As enacted by Chapters 7 and 19 of the Acts of the General Assembly of the 2025 18
Special Session) 19

BY repealing and reenacting, with amendments, 20
Article – Public Utilities 21
Section 7–310, 7 –311, 7–507, 7–510, 7 –602, 7 –603, 7 –604, 7–605, 7–705(a), and 22
13–201(e)(3) 23
Annotated Code of Maryland 24
(2025 Replacement Volume and 2025 Supplement) 25

BY repealing 26
Chapter 537 of the Acts of the General Assembly of 2024 27
Section 5 28

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 29
That Section(s) 7 –315 through 7 –318, 7–603.1, 7–604.2, and 7 –707 of Article – Public 30
Utilities of the Annotated Code of Maryland be repealed. 31

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 32
as follows: 33

Article – Public Utilities 34

1–101. 35

(a) In this division the following words have the meanings indicated. 36

HOUSE BILL 974 3

[(l–1) (1) “Energy salesperson” means an individual who is licensed by the 1
Commission to sell: 2

(i) electricity or electricity supply services to residential retail 3
electric customers on behalf of an electricity supplier as an employee or agent of the 4
electricity supplier; or 5

(ii) gas or gas supply services to residential retail gas customers on 6
behalf of a gas supplier as an employee or agent of the gas supplier. 7

(2) “Energy salesperson” does not include: 8

(i) the Department of General Services when the Department of 9
General Services sells energy under § 7–704.4 of this article; 10

(ii) the Washington Suburban Sanitary Commission when the 11
Washington Suburban Sanitary Commission sells energy under Division II of this article; 12

(iii) a community choice aggregator under § 7–510.3 of this article; or 13

(iv) an employee or contractor of an electric company when the 14
employee or contractor is performing duties specific to standard offer service. 15

(l–2) “Energy vendor” means a person that has a contract or subcontract to provide 16
energy sales services to an electricity supplier or a gas supplier that provides electricity 17
supply services or gas supply services, respectively, to a residential customer.] 18

2–110. 19

(a) In this section, “public service company” includes an electricity supplier and a 20
gas supplier as those terms are defined in § 1–101 of this article. 21

(b) (1) The costs and expenses of the Commission , the Strategic Energy 22
Planning Office, and the Office of People’s Counsel shall be borne by the public service 23
companies that are subject to the Commission’s jurisdiction. 24

(2) The costs and expenses shall be assessed as provided in this section. 25

(3) The Commission shall pay the money that it collects for the assessment 26
under this section into the Public Utility Regulation Fund in the State Treasury established 27
under § 2–110.1 of this subtitle to reimburse the State for the expenses of the Commission, 28
the Strategic Energy Planning Office, and the Office of People’s Counsel. 29

(c) (12) The total amount that may be charged to a public service company 30
under this section for a State fiscal year may not exceed: 31

4 HOUSE BILL 974

(i) [0.50%] 0.25% of the public service company’s gross operating 1
revenues derived from intrastate utility and electricity supplier operations in the preceding 2
calendar year, or other 12–month period that the Chairman determines, for the costs and 3
expenses of the Commissio n other than that of the Strategic Energy Planning Office and 4
the Office of People’s Counsel; [plus] 5

(ii) 0.074% of those revenues for the costs and expenses of the 6
Strategic Energy Planning Office; plus 7

(iii) 0.074% of those revenues for the costs and expenses of the Office 8
of People’s Counsel. 9

7–310. 10

(a) In this section, “Fund” means the RETAIL CHOICE CUSTOMER Education 11
and Protection Fund. 12

(b) There is [an] A RETAIL CHOICE CUSTOMER Education and Protection 13
Fund. 14

(c) The purpose of the Fund is to provide resources to improve the Commission’s 15
ability to: 16

(1) educate customers on[: 17

(i)] retail electric and gas choice; and 18

[(ii) energy choices that help meet the State’s climate commitments 19
under § 7–319 of this subtitle and § 2–1204.2 of the Environment Article;] 20

(2) protect customers from unfair, false, misleading, or deceptive practices 21
by electricity suppliers[, energy salespersons, energy vendors,] or gas suppliers[; and 22

(3) develop a training and educational program for ele ctricity suppliers, 23
gas suppliers, energy salespersons, and energy vendors as provided under § 7 –311 of this 24
subtitle]. 25

(d) The Commission shall administer the Fund. 26

(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 27
the State Finance and Procurement Article. 28

(2) The State Treasurer shall hold the Fund separately, and the 29
Comptroller shall account for the Fund. 30

(f) The Fund consists of: 31
HOUSE BILL 974 5

(1) revenue distributed to the Fund under § 13–201(e)(3) of this article; 1

(2) money appropriated in the State budget to the Fund; and 2

(3) any other money from any other source accepted for the benefit of the 3
Fund. 4

(g) The Fund may be used only to: 5

(1) educate retail electric or gas customers on retail choice [and energy 6
choices that help to meet the State’s climate commitments under § 7 –319 of this subtitle 7
and § 2–1204.2 of the Environment Article]; AND 8

(2) improve customer protections for retail electric or gas customers[; and 9

(3) develop a training and educational program for electricity suppliers, 10
gas suppliers, energy salespersons, and energy vendors as provided under § 7 –311 of this 11
subtitle]. 12

(h) (1) The State Treasurer shall invest the money of the Fund in the same 13
manner as other State money may be invested. 14

(2) Any investment earnings of the Fund shall be credited to the General 15
Fund of the State. 16

(i) Expenditures from the Fund may be made only in accordance with the State 17
budget. 18

7–311. 19

(a) The Commission shall develop a training and educational program for any 20
entity or individual that is licensed by the Commission as an electricity supplier [,] OR a 21
gas supplier[, an energy salesperson, or an energy vendor]. 22

(b) The Commission shall develop the program in consultation with interested 23
stakeholders, including electricity suppliers [,] AND gas suppliers [, energy salespersons, 24
and energy vendors]. 25

(c) The program shall require that a designated representative of each licensed 26
electricity supplier[,] OR licensed gas supplier[, licensed energy vendor, or licensed energy 27
salesperson] demonstrate a thorough understanding of the Commission’s regulations 28
regarding: 29

(1) sales; 30

6 HOUSE BILL 974

(2) consumer protection; and 1

(3) any other matter the Commission deems appropriate. 2

(d) At the conclusion of the training, the Commission shall: 3

(1) conduct an examination; and 4

(2) on a satisfactory score, certify that the designated representative of the 5
licensed electricity supplier [,] OR licensed gas supplier [, licensed energy salesperson, or 6
licensed energy vendor] has successfully completed the training. 7

(e) (1) The Commission shall determine the schedule and frequency by which 8
a designated representative of a licensed electricity supplier [,] OR licensed gas supplier[, 9
licensed energy salesperson, or licensed energy vendor] must complete the training and 10
certification. 11

(2) A designated representative of a new electricity supplier [,] OR gas 12
supplier[, energy salesperson, or energy vendor ] shall complete the training and 13
certification prior to the issuance of a license. 14

(f) The Commission may adopt regulations that include appropriate penalties or 15
sanctions for failure to comply with this section. 16

(g) (1) The Commission shall use the [following funding sources ] 17
ASSESSMENTS COLLECTED IN ACCORDANCE WITH § 2–110 OF THIS ARTICLE for the 18
initial development of the training and educational program[: 19

(i) the assessments collected in accordance with § 2 –110 of this 20
article; or 21

(ii) funds deposited into the Educa tion and Protection Fund in 22
accordance with § 7–310 of this subtitle]. 23

(2) The Commission may establish reasonable fees to pay for the costs of 24
the program. 25

7–507. 26

(a) A person, other than an electric company providing standard offer service 27
under § 7–510(c) of this subtitle, a municipal electric utility serving customers solely in its 28
distribution territory, [the Department of General Services selling energy under § 7–704.4 29
of this title, ] or a community choice aggregator under § 7 –510.3 of this subt itle, may not 30
engage in the business of an electricity supplier in the State unless the person holds a 31
license issued by the Commission. 32

HOUSE BILL 974 7

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

[(i)] (1) be made to the Commission in writin g on a form adopted 2
by the Commission; 3

[(ii)] (2) be verified by oath or affirmation; and 4

[(iii)] (3) contain information that the Commission requires, 5
including: 6

[1.] (I) proof of technical and managerial competence; 7

[2.] (II) proof of compliance with all applicable 8
requirements of the Federal Energy Regulatory Commission, and any independent system 9
operator or regional or system transmission operator to be used by the licensee; 10

[3.] (III) a certification of compliance with applicable federal 11
and State environmental laws and regulations that relate to the generation of electricity; 12
and 13

[4.] (IV) payment of the applicable licensing fee. 14

[(2) (i) The term of a residential electricity supplier license is 3 years. 15

(ii) The terms of licenses may be staggered as determined by the 16
Commission. 17

(iii) Unless a license for a residential electricity supplier is renewed 18
for a 3–year term in accordance with this subsection, the license expires on the date that 19
the Commission sets. 20

(iv) A licensee may renew a license for a 3 –year term before the 21
license expires if the licensee: 22

1. otherwise is entitled to be licensed; 23

2. submits to the Commission a renewal application on the 24
form that the Commission provides; and 25

3. pays to the Commission the applicable renewal fee set by 26
the Commission.] 27

(c) The Commission shall, by regulation or order: 28

(1) require proof of financial integrity; 29

8 HOUSE BILL 974

(2) require a licensee to post a bond or other similar instrument if, in the 1
Commission’s judgment, the bond or similar instrument is necessary to insure an electricity 2
supplier’s financial integrity; 3

(3) require a licensee to: 4

(i) provide proof that the licensee is qualified to do business in the 5
State with the Department of Assessments and Taxation; and 6

(ii) agree to be subject to all applicable taxes; and 7

(4) adopt any other requirements the Commission finds to be in the public 8
interest, which may include different requirements for: 9

(i) electricity suppliers that serve only large customers; and 10

(ii) the different categories of electricity suppliers. 11

(d) A license issued under this section may not be transferred without prior 12
Commission approval. 13

(e) The Commission shall adopt regulations or issue orders to: 14

(1) protect consumers, electric companies, AND electricity suppliers [, 15
energy salespersons, and energy vendors] from anticompetitive and abusive practices; 16

(2) require each electricity supplier [, each energy salesperson, and each 17
energy vendor ] to p rovide, in addition to the requirements under § 7 –505(b)(5) of this 18
subtitle, adequate and accurate customer information to enable customers to make 19
informed choices regarding the purchase of any electricity services offered by the electricity 20
supplier; 21

(3) establish reasonable restrictions on telemarketing; 22

(4) establish procedures for contracting with customers; 23

(5) establish requirements and limitations relating to deposits, billing, 24
collections, and contract cancellations; 25

(6) establish provisions providing for the referral of a delinquent account 26
by an electricity supplier to the standard offer service under § 7–510(c) of this subtitle; and 27

(7) establish procedures for dispute resolution. 28

(f) In accordance with regulations or orders of the Commission, electricity bills, 29
for competitive and regulated electric services, provided to consumers may provide, in 30
HOUSE BILL 974 9

addition to the requirements of § 7 –505(b)(5) of this subtitle and subsection (e)(2) of this 1
section, the following information: 2

(1) the identity and phone number of the electricity supplier of the service; 3

(2) sufficient information to evaluate prices and services; and 4

(3) information identifying whether the price is regulated or competitive. 5

(g) (1) An electricity supplier [, an energy salesperson, an energy vendor, ] or 6
any person or governmental unit may not, without first obtaining the customer’s 7
permission: 8

(i) make any change in the electricity supplier for a customer; or 9

(ii) add a new charge for a new or existing service or option. 10

(2) The Commission shall adopt regulations or issue orders establishing 11
procedures to prevent the practices prohibited under paragraph (1) of this subsection. 12

(h) (1) An electricity supplier [, an energy salesperson, or an energy ve ndor] 13
may not discriminate against any customer based wholly or partly on race, color, creed, 14
national origin, gender identity, disability, sexual orientation, or sex of an applicant for 15
service or for any arbitrary, capricious, or unfairly discriminatory reason. 16

(2) An electricity supplier [, an energy salesperson, or an energy vendor ] 17
may not refuse to provide service to a customer except by the application of standards that 18
are reasonably related to the electricity supplier’s economic and business purposes. 19

(i) An electricity supplier[, an energy salesperson, and an energy vendor ] shall 20
be subject to all applicable federal and State environmental laws and regulations. 21

(j) An electricity supplier shall post on the Internet information that is readily 22
understandable about its services and rates for small commercial and residential electric 23
customers. 24

(k) (1) [Subject to subsection (r) of this section, for just cause on the 25
Commission’s own investigation or on complaint of the Office of People’s Couns el, the 26
Attorney General, or an affected party, the Commission may: 27

(i) deny a license to, or revoke, suspend, or refuse to renew the 28
license of, an electricity supplier, an energy salesperson, or an energy vendor; 29

(ii) impose a civil penalty or other remedy; 30

(iii) order a refund or credit to a customer; or 31

10 HOUSE BILL 974

(iv) impose a moratorium on adding or soliciting additional 1
customers by the electricity supplier, energy salesperson, or energy vendor ] THE 2
COMMISSION MAY REVOKE OR SUSPEND THE LICEN SE OF AN ELECTRICITY 3
SUPPLIER, IMPOSE A CIVIL PENAL TY OR OTHER REMEDY , ORDER A REFUND OR 4
CREDIT TO A CUSTOMER , OR IMPOSE A MORATORI UM ON ADDING O R SOLICITING 5
ADDITIONAL CUSTOMERS BY THE ELECTRICITY SUPPLIER FOR JUST CAUSE ON THE 6
COMMISSION’S OWN INVESTIGATION OR ON COMPLAINT OF T HE OFFICE OF 7
PEOPLE’S COUNSEL, THE ATTORNEY GENERAL, OR AN AFFECTED PARTY. 8

(2) A civil penalty may be imposed in addition to the Commission’s decision 9
to [deny,] revoke[,] OR suspend, [or refuse to renew] a license or impose a moratorium. 10

(3) Just cause includes: 11

(i) intentionally providing false information to the Commission; 12

(ii) switching, or causing to be switched, the electricity supply for a 13
customer without first obtaining the customer’s permission; 14

(iii) failing to provide electricity for its customers; 15

(iv) committing fraud or engaging in deceptive practices; 16

(v) failing to maintain financial integrity; 17

(vi) violating a Commission regulation or order; 18

(vii) failing to pay, collect, remit, or cal culate accurately applicable 19
State or local taxes; 20

(viii) violating a provision of this article or any other applicable 21
consumer protection law of the State; 22

(ix) conviction of a felony by the licensee or principal of the licensee 23
or any crime involving fraud, theft, or deceit; AND 24

(x) [denial,] suspension[,] or revocation of [or refusal to renew ] a 25
license by any State or federal authority[; and 26

(xi) commission of any of the acts described in items (i) through (x) of 27
this paragraph by a person that is an affiliate of the licensee or that is under common 28
control with the licensee]. 29

(l) (1) An electricity supplier [, an energy vendor, or any other ] OR person[, 30
except for an energy salesperson, ] selling or offering to sell electricity in th e State in 31
HOUSE BILL 974 11

violation of this section [or § 7 –318 of this title ], after notice and an opportunity for a 1
hearing, is subject to: 2

(i) a civil penalty of not more than [$25,000] $10,000 for the 3
violation; OR 4

(ii) license [denial,] revocation[,] or suspension [or refusal to renew 5
the license; or 6

(iii) both]. 7

(2) [An energy salesperson selling or offering to sell electricity in the State 8
in violation of this section or § 7 –317 of this title, after notice and an opportunity for a 9
hearing, is subject to license denial, revocation, or suspension or refusal to renew the 10
license. 11

(3)] Each day [or part of a day] a violation continues is a separate violation. 12

[(4) Each customer to whom electricity is sold or offered in violation of this 13
section is a separate violation. 14

(5)] (3) The Commission shall determine the amount of any civil penalty 15
after considering: 16

(i) the number of previous violations of any provision of this division 17
[by the electricity supplier, energy vendor, or other person]; 18

(ii) the gravity of the current violation; AND 19

(iii) the good faith of the electricity supplier [, energy vendor, or 20
other] OR person charged in attempting to achieve compliance after notification of the 21
violation[; and 22

(iv) any other matter that the Commission considers appropriate and 23
relevant]. 24

(m) In connection with a consumer complaint or Commission investigation under 25
this section [or § 7 –317 or § 7 –318 of this title, an electricity supplier, an energy 26
salesperson, energy vendor, and any other person selling or offering to sell electricity in the 27
State], AN ELECTRICITY SUPPL IER shall provide to the Commission access to any 28
accounts, books, papers, and documents that the Commission considers necessary to resolve 29
the matter at issue. 30

12 HOUSE BILL 974

(n) The Commission may order the electricity supplier [, energy salesperson, an 1
energy vendor, or other person ] to cease adding or soliciting additional customers or to 2
cease serving customers in the State. 3

(o) The Commission shall consult with the Consumer Pr otection Division of the 4
Office of the Attorney General before issuing regulations designed to protect consumers. 5

(p) The People’s Counsel shall have the same authority in licensing, complaint, 6
and dispute resolution proceedings as it has in Title 2 of this article. 7

(q) Nothing in this subtitle may be construed to affect the authority of the 8
Division of Consumer Protection in the Office of the Attorney General to enforce violations 9
of Titles 13 and 14 of the Commercial Law Article or any other applicabl e State law or 10
regulation in connection with the activities of electricity suppliers [, energy salespersons, 11
and energy vendors]. 12

[(r) The Commission may not impose a civil penalty on an energy salesperson 13
under subsection (k) or (l) of this section.] 14

7–510. 15

(a) (1) Subject to subsection (b) of this section, the phased implementation of 16
customer choice shall be implemented as follows: 17

(i) on July 1, 2000, one–third of the residential class in the State of 18
each electric company shall have the opportunity for customer choice; 19

(ii) on January 1, 2001, the entire industrial class and the entire 20
commercial class in the State of each electric company shall have the opportunity for 21
customer choice; 22

(iii) on July 1, 2001, two –thirds of the residentia l class in the State 23
of each electric company shall have the opportunity for customer choice; 24

(iv) on July 1, 2002, all customers of each electric company shall have 25
the opportunity for customer choice; and 26

(v) by July 1, 2003, under a separate sch edule adopted by the 27
Commission, all customers of each electric cooperative shall have the opportunity for 28
customer choice. 29

(2) (i) In accordance with this paragraph, the Commission may adopt a 30
separate schedule for municipal electric utilities for the implementation of customer choice. 31

(ii) A municipal electric utility may not be required to make its 32
service territory available for customer choice unless it elects to do so. 33
HOUSE BILL 974 13

(iii) If a municipal electric utility elects to allow customer choice, the 1
municipal electric utility shall file a proposed plan and schedule with the Commission. 2

(iv) The Commission may approve each municipal electric utility 3
plan and schedule after considering the features that distinguish the municipal electric 4
utility from other electric companies. 5

(v) Nothing in this subtitle may be construed to require the 6
functional, operational, structural, or legal separation of the regulated and nonregulated 7
operations of the municipal electric utility. 8

(3) If a municipal electric utility serves customers outside its distribution 9
territory, electricity suppliers licensed under § 7 –507 of this subtitle may serve the 10
customers in the distribution territory of the municipal electric utility. 11

(b) For good cause shown and if t he Commission finds the action to be in the 12
public interest, the Commission may: 13

(1) accelerate or delay the initial implementation date of July 1, 2000, by 14
up to 3 months; or 15

(2) accelerate any of the other implementation dates and phase –in 16
percentages in subsection (a) of this section. 17

(c) (1) Beginning on the initial implementation date, an electric company’s 18
obligation to provide electricity supply and electricity supply service is stated by this 19
subsection. 20

(2) (i) Electricity supply purchased from a customer’s electric company 21
is known as standard offer service. 22

(ii) A customer is considered to have chosen the standard offer 23
service if the customer: 24

1. is not allowed to choose an electricity supplier under the 25
phase in of customer choice in subsection (a) of this section; 26

2. contracts for electricity with an electricity supplier and it 27
is not delivered; 28

3. cannot arrange for electricity from an electricity supplier; 29

4. does not choose an electricity supplier; 30

5. chooses the standard offer service; or 31

14 HOUSE BILL 974

6. has been denied service or referred to the standard offer 1
service by an electricity supplier in accordance with § 7–507(e)(6) of this subtitle. 2

(3) (i) An electric company has the obligation to provide standard offer 3
service to residential and small commercial customers at a market price that permits 4
recovery of the verifiable, prudently incurred costs to procure or produce the electricity plus 5
a reasonable return. 6

(ii) 1. On or before December 31, 2008, and every 5 years 7
thereafter, the Commission shall report to the Governor and, in accordance with § 2 –1257 8
of the State Government Article, to the General Assembly on the status of the standard 9
offer service [and], the development of competition, AND THE TRANSITION OF STANDARD 10
OFFER SERVICE TO A DEFAULT SERVICE. 11

2. THE COMMISSION SHALL ESTA BLISH, BY ORDER OR 12
REGULATION, THE DEFINITION OF “DEFAULT SERVICE”. 13

(4) (i) 1. On or before July 1, 2001, the Commission shall ado pt 14
regulations or issue orders to establish procedures for the competitive selection of wholesale 15
electricity suppliers, including an affiliate of an electric company, to provide electricity for 16
standard offer service to customers of electric companies und er paragraph (2) of this 17
subsection, except for customers of electric cooperatives and municipal electric utilities. 18

2. Unless delayed by the Commission, the competitive 19
selection shall take effect no later than July 1, 2003. 20

(ii) 1. Under the obl igation to provide standard offer service in 21
accordance with this subsection, the Commission, by regulation or order, and in a manner 22
that is designed to obtain the best price for residential and small commercial customers in 23
light of market conditions at the time of procurement and the need to protect these 24
customers from excessive price increases: 25

A. shall require each investor –owned electric company to 26
obtain its electricity supply for residential and small commercial customers participating 27
in standard offer service through a competitive process in accordance with this paragraph; 28
and 29

B. may require or allow an investor–owned electric company 30
to procure electricity for these customers directly from an electricity supplier through one 31
or more bilateral contracts outside the competitive process. 32

2. A. As the Commission directs, the competitive process 33
shall include a series of competitive wholesale bids in which the investor –owned electric 34
company solicits bids to supply anticipated standard o ffer service load for residential and 35
small commercial customers as part of a portfolio of blended wholesale supply contracts of 36
short, medium, or long terms, and other appropriate electricity products and strategies, as 37
needed to meet demand in a cost–effective manner. 38
HOUSE BILL 974 15

B. The competitive process may include different bidding 1
structures and mechanisms for base load, peak load, and very short–term procurement. 2

C. By regulation or order, as a part of the competitive process, 3
the Commission shall require or allow the procurement of cost –effective energy efficiency 4
and conservation measures and services with projected and verifiable energy savings to 5
offset anticipated demand to be served by standard offer service, and the imposition of other 6
cost–effective demand–side management programs. 7

3. A. In order to prevent an excessive amount of load 8
being exposed to upward price risks and volatility, the Commission may stagger the dates 9
for the competitive wholesale auctions. 10

B. By regulation or order, the Commission may allow a date 11
on which a competitive wholesale auction takes place to be altered based on current market 12
conditions. 13

4. By regulation or order, the Commission may allow an 14
investor–owned electric company to refuse to accept som e or all of the bids made in a 15
competitive wholesale auction in accordance with standards adopted by the Commission. 16

5. The investor –owned electric company shall publicly 17
disclose the names of all bidders and the names and load allocation of all successful bidders 18
90 days after all contracts for supply are executed. 19

(5) An electric company may procure the electricity needed to meet its 20
standard offer service electricity supply obligation from any electricity supplier, including 21
an affiliate of the electric company. 22

(6) In order to meet long –term, anticipated demand in the State for 23
standard offer service and other electricity supply, the Commission may require or allow 24
an investor–owned electric company to construct, acquire, or lease, and operate , its own 25
generating facilities, and transmission facilities necessary to interconnect the generating 26
facilities with the electric grid, subject to appropriate cost recovery. 27

(7) (i) To determine whether an appropriate phased implementation of 28
electricity rates that is necessary to protect residential customers from the impact of 29
sudden and significant increases in electricity rates, the Commission in the case of an 30
increase of 20% or more over the previous year’s total electricity rates, shall conduct 31
evidentiary proceedings, including public hearings. 32

(ii) 1. A deferral of costs as part of a phased implementation of 33
electricity rates by an investor –owned electric company shall be treated as a regulatory 34
asset to be recovered in accordance with a rat e stabilization plan under Part III of this 35
subtitle or any other plan for phased implementation approved by the Commission. 36

16 HOUSE BILL 974

2. A deferral of costs under this paragraph must be just, 1
reasonable, and in the public interest. 2

(iii) The Commission sha ll approve the recovery of deferred costs 3
under subparagraph (ii) of this paragraph as: 4

1. long–term recovery in accordance with a rate stabilization 5
plan under Part III of this subtitle; or 6

2. short–term recovery through a rate proceeding 7
mechanism approved by the Commission. 8

(iv) The Commission may approve a phasing in of increased costs by: 9

1. placing a cap on rates and allowing recovery over time; or 10

2. allowing rates to increase and providing for a rebate to 11
customers of any excess costs paid. 12

(8) (i) An electric cooperative that as of July 1, 2006, supplied its 13
standard offer service load through a portfolio of blended wholesale supply contracts of 14
short, medium, and long terms, and other appropriate electricity products a nd strategies, 15
as needed to meet demand in a cost –effective manner, may choose to continue to use a 16
blended portfolio: 17

1. as approved and modified by the electric cooperative’s 18
board of directors; and 19

2. with appropriate review for prudent cost r ecovery as 20
determined by the Commission. 21

(ii) The Commission may not set or enforce a termination date for 22
the procurement of supply through a managed portfolio previously approved by the 23
Commission. 24

(9) (i) The Commission, on request by an electric cooperative or on its 25
own initiative, shall initiate a proceeding to investigate options for a rate stabilization plan 26
to assist residential electric customers to gradually adjust to market rates over an extended 27
period of time. 28

(ii) If an electric co operative determines that total electric rates for 29
residential customers are anticipated to increase by more than 20% in a 12 –month period 30
resulting from an increase in the cost of generation, the electric cooperative shall survey its 31
membership to determi ne whether to make a request to the Commission to initiate a 32
proceeding under subsection (a) of this section. 33

HOUSE BILL 974 17

(iii) Notwithstanding subparagraphs (i) and (ii) of this paragraph, as 1
approved by the Commission, an electric cooperative may receive a modif ication in 2
distribution and transmission rates. 3

[(10) (i) This paragraph does not apply to a member –regulated 4
cooperative as defined in § 5–601 of the Corporations and Associations Article. 5

(ii) An electric cooperative may advertise, market, and pro mote 6
standard offer service and related products in its service territory, including availability, 7
price, and other terms, in compliance with appropriate consumer protections consistent 8
with those that apply to electricity suppliers under § 7–507 of this subtitle. 9

(d) (1) This subsection applies to residential electricity supply other than 10
supply offered through: 11

(i) standard offer service; 12

(ii) the Department of General Services’ sale of energy under § 13
7–704.4 of this title; or 14

(iii) a community choice aggregator under § 7–510.3 of this subtitle. 15

(2) A residential electricity supplier: 16

(i) may offer electricity, other than green power, only at a price that 17
does not exceed the trailing 12 –month average of the electric company’s sta ndard offer 18
service rate in the electric company’s service territory as of the date of agreement with the 19
customer; 20

(ii) may offer residential electricity supply only for a term not to 21
exceed 12 months at a time; 22

(iii) may, for electricity supply other than green power, automatically 23
renew the term only if the electricity supplier provides notice to the customer 90 days before 24
and 30 days before renewal; 25

(iv) may offer green power that meets the requirements of § 7–707 of 26
this title, but may not automatically renew the term with the customer; 27

(v) subject to paragraph (3) of this subsection, may not offer a 28
variable rate other than a rate that adjusts for seasonal variation not more than twice in a 29
single year; and 30

(vi) may not pay a commi ssion or other incentive –based 31
compensation to an energy salesperson for enrolling customers. 32

18 HOUSE BILL 974

(3) Paragraph (2)(v) of this subsection does not prohibit the offer and use 1
of time–of–use rates that establish different rates for periods within a single day. 2

(4) A residential electricity supplier may not sell to an electric company, 3
and an electric company may not purchase from the electricity supplier, accounts 4
receivable. 5

(e) (1) This subsection does not apply to: 6

(i) the Department of General Ser vices’ sale of energy under § 7
7–704.4 of this title; or 8

(ii) a community choice aggregator under § 7–510.3 of this subtitle. 9

(2) An electric company and a residential electricity supplier shall 10
establish a mechanism for a customer whose account number or customer choice 11
identification number has been compromised to receive a replacement account number or 12
customer choice identification number on request, subject to verification in a manner 13
approved by the Commission. 14

(f) (1) This subsection does not apply to: 15

(i) the Department of General Services’ sale of energy under § 16
7–704.4 of this title; or 17

(ii) a community choice aggregator under § 7–510.3 of this subtitle. 18

(2) Except as provided in paragraph (3) of this subsection, as approved by 19
the Commission by regulation or order, each electric company and each residential 20
electricity supplier shall allow a customer to indicate the customer’s intention to remain on 21
standard offer service indefinitely and not to receive directed marketing co ntacts from 22
electricity suppliers through the implementation of a “do not transfer” list onto which the 23
customer may request to be placed. 24

(3) A residential electricity supplier may contact a customer on a “do not 25
transfer” list until the electricity su pply agreement entered into between the electricity 26
supplier and the customer expires. 27

(g) (1) In this subsection, “billing entity” means an electric company, a licensed 28
electricity supplier, or any other entity that is responsible for issuing an electri c bill to a 29
residential customer. 30

(2) On or before the 15th day of each month, each billing entity shall submit 31
a report to the Commission on customer choice in its service territory for the preceding 32
month, including: 33

HOUSE BILL 974 19

(i) the total kilowatt –hours d istributed to customers purchasing 1
electricity from a third–party electricity supplier; 2

(ii) the total supply cost charged to customers purchasing electricity 3
from a third–party electricity supplier; 4

(iii) the total cost that customers specified in item (ii) of this 5
paragraph would have paid under standard offer service; 6

(iv) the net third–party total cost compared to the net standard offer 7
service cost; 8

(v) the total third–party average rate; 9

(vi) the standard offer service average rate; 10

(vii) the difference between the total third–party average rate and the 11
standard offer service average rate; 12

(viii) the third–party average residential rates broken out by supplier 13
and the variance between each of these rates and the standard offer service average rate; 14

(ix) the third–party average general service nondemand rates broken 15
out by supplier and the variance between each of these third–party rates and the standard 16
offer service average rate; 17

(x) the third–party average general service demand rates broken out 18
by supplier and the variance between each of these third–party rates and the standard offer 19
service average rate; 20

(xi) the third–party average large power demand rates broken out by 21
supplier and the variance between e ach of these third–party rates and the standard offer 22
service average rate; and 23

(xii) other pertinent information the Commission considers 24
appropriate.] 25

[(h)] (D) The Commission shall, by regulation or order, adopt procedures to 26
implement this section, INCLUDING THE ALLOCATION OF ANY UNUSED OPPORTUNITY 27
FOR CUSTOMER CHOICE AMONG CUSTOMER CLASSES. 28

[(i)] (E) Except as provided in § 7 –510.3 of this subtitle, a county or municipal 29
corporation may not act as an aggregator unless the Commission determines there is not 30
sufficient competition within the boundaries of the county or municipal corporation. 31

7–602. 32
20 HOUSE BILL 974

The General Assembly finds and declares that the purpose of this subtitle is to: 1

(1) clarify existing law regarding the provision of competitive retail gas 2
supply and gas supply services in the State; 3

(2) require the Commission to license gas suppliers[, energy salespersons, 4
and energy vendors]; 5

(3) authorize the Commission to adopt complaint procedures; 6

(4) establish certain requirements relating to the competitiveness of retail 7
gas supply and gas supply services markets; and 8

(5) establish standards for the protection of consumers. 9

7–603. 10

(a) The Commission shall license gas suppliers[, energy salespersons, and energy 11
vendors] and sh all have the same authority as the Commission has under [§§ 7 –317, 12
7–318, and 7–507] § 7–507 of this title for electricity suppliers, [energy salespersons, and 13
energy vendors,] including the authority to: 14

(1) [deny,]revoke[,] OR suspend[, or refuse to renew] a license; 15

(2) impose a moratorium, civil penalty, or other remedy; or 16

(3) order a refund for or credit to a customer. 17

(b) The Commission shall adopt licensing requirements and procedures for gas 18
suppliers[, energy salespersons, and energy v endors that protect consumers, the public 19
interest, and the collection of all State and local taxes, consistent with the requirements for 20
electricity suppliers under Subtitle 5 of this title and energy salespersons and energy 21
vendors under Subtitle 3 of th is title ] THAT PROTECT CONSUME RS, THE PUBLIC 22
INTEREST, AND THE COLLECTION OF ALL STATE AND LOCAL TAXES. 23

7–604. 24

(a) On or before July 1, 2001, the Commission shall adopt consumer protection 25
orders or regulations for gas suppliers[, energy salespersons, and energy vendors] that: 26

(1) protect consumers from discriminatory, unfair, deceptive, and 27
anticompetitive acts and practices in the marketing, selling, or distributing of natural gas; 28

(2) provide for contracting, enrollment, and billing practices an d 29
procedures; and 30
HOUSE BILL 974 21

(3) the Commission considers necessary to protect the consumer. 1

(b) In adopting orders and regulations under this section, unless the Commission 2
determines that the circumstances do not require consistency, the Commission shall: 3

(1) provide customers with protections consistent with applicable 4
protections provided to retail electric customers; and 5

(2) impose appropriate requirements on gas suppliers [, energy 6
salespersons, and energy vendors ] that are consistent with applicable requirements 7
imposed on electricity suppliers[, energy salespersons, and energy vendors]. 8

7–605. 9

(a) This subtitle may not be construed to: 10

(1) affect the authority of the Division of Consumer Protection of the Office 11
of the Attorney General to enfor ce violations of Titles 13 and 14 of the Commercial Law 12
Article or any other applicable State law or regulation in connection with the activities of 13
gas suppliers[, energy salespersons, or energy vendors]; or 14

(2) exempt gas companies[,] AND gas suppliers[, energy salespersons, and 15
energy vendors ] from otherwise applicable State or federal consumer protection and 16
antitrust laws. 17

(b) The Commission shall consult with the Consumer Protection Division of the 18
Office of the Attorney General before adopting regulations designed to protect consumers 19
of gas supply and gas supply services. 20

(c) The People’s Counsel has the same authority in licensing, complaint, and 21
dispute resolution proceedings as the People’s Counsel has under Subtitle 5 of this title and 22
Title 2 of this article. 23

(d) In connection with a consumer complaint or Commission investigation under 24
this subtitle, a gas supplier[, an energy salesperson, or an energy vendor] shall provide to 25
the Commission access to any accounts, books, papers, and documents that the Commission 26
considers necessary to resolve a matter in dispute. 27

7–705. 28

(a) [(1) Except as provided in paragraph (2) of this subsection, each ] EACH 29
electricity supplier shall submit a report to the Commission each year in a form and by a 30
date specified by the Commission that: 31

22 HOUSE BILL 974

(1) (i) [1.] demonstrates that the electricity supplier has complied 1
with the applicable renewable energy portfolio standard under § 7–703 of this subtitle and 2
includes the submission of the required amount of renewable energy credits; or 3

[2.] (II) demonstrates the amount of electricity sales by 4
which the electricity supplier failed to meet the applicable renewable energy portfolio 5
standard; AND 6

[(ii)] (2) documents the level of participation of minority business 7
enterprises and minorities in the activities that support the creation of renewable energy 8
credits used to satisfy the standard under § 7 –703 of this subtitle, including development, 9
installation, and operation of generating facilities that create credits[; 10

(iii) documents the amounts and types of generation associated with 11
renewable energy credits purchased in compliance with § 7 –707(c) of this subtitle during 12
the reporting period; and 13

(iv) documents the amount of renewable energy certific ates that do 14
not qualify as renewable energy credits as defined in § 7–701 of this subtitle, including, for 15
each certificate: 16

1. the energy source associated with the certificate, including 17
its location, when it was constructed, and which electric dis tribution system received the 18
energy; 19

2. whether the purchase of the certificate was bundled with 20
a power purchase agreement from the energy source associated with the certificate; 21

3. whether the certificate was purchased directly from the 22
operator of the energy source or through a third party; and 23

4. any other information required by the Commission. 24

(2) Paragraph (1)(iii) and (iv) of this subsection does not apply to: 25

(i) the Department of General Services’ sale of energy under § 26
7–704.4 of this subtitle; or 27

(ii) a community choice aggregator under § 7–510.3 of this title]. 28

13–201. 29

(a) This section does not apply to a violation of the following provisions of this 30
article: 31

(1) Title 5, Subtitle 4; 32
HOUSE BILL 974 23

(2) Title 7, Subtitle 1; 1

(3) § 7–213 as it applies to electric cooperatives; 2

(4) Title 8, Subtitles 1 and 3; 3

(5) Title 9, Subtitle 3; and 4

(6) Title 8, Subtitle 4. 5

(e) (3) A civil penalty assessed for a violation of [§ 7 –317, § 7 –318,] § 6
7–505(b)(7), § 7–507, § 7–603, [§ 7–603.1,] § 7–604, OR § 7–606, [or § 7–707] of this article, 7
or a rule, an order, or a regulation adopted under any of those sections, shall be paid into 8
the RETAIL CHOICE CUSTOMER Education and Protection Fund under § 7 –310 of this 9
article. 10

SECTION 3. AND BE IT FURTHER ENACTED, That the division within the Public 11
Service Commission established in accordance with Section 2 of Chapter 537 of the Acts of 12
the General Assembly of 2024 shall be abolished . Any Position Identifi cation Numbers 13
(PINs) created in accordance with Section 2 of Chapter 537 of the Acts of the General 14
Assembly of 2024 shall remain with the Commission and any employee hired or assigned 15
to that division shall be reassigned to an equivalent position elsewhere within the 16
Commission. No employee affected by a reassignment in accordance with this Section shall 17
suffer any diminution in pay or benefits resulting from the reassignment. 18

SECTION 4. AND BE IT FURTHER ENACTED, That Section 5 of Chapter 537 of 19
the Acts of the General Assembly of 2024 be repealed. 20

SECTION 5. AND BE IT FURTHER ENACTED, That this Act shall be construed to 21
apply only prospectively and may not be applied or interpreted to have any effect on or 22
application to any electricity supply agreement or gas supply agreement that is in effect on 23
or before the effective date of this Act. 24

SECTION 6. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October 1, 2026. 26