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PSC Mandates Fingerprinting Requirement For Energy Salespersons, Must Be Conducted At Single, PSC-Designated Location

PSC Sets Renewal Deadline For Existing Retail Supplier & Broker Licenses, Unique License Expiration Dates

PSC Adopts Bonding Level For Energy Salespersons & Energy Vendors, Who Now Must Obtain License


December 17, 2024

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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Maryland PSC will impose a fingerprinting requirement to obtain an energy salesperson license, as the PSC adopted various retail energy market licensing changes as a result of SB1

SB1 required the PSC to set expiration dates for all existing retail supplier and broker licenses, with the PSC authorized to stagger the expirations over 3 years. Renewals (and new supplier licenses) will last for only 3 years

The PSC has established staggered license expiration dates for an initial one-third of the existing retail suppliers and brokers

For this one-third subset of suppliers and brokers, all affected suppliers and brokers must file for renewal of their license by January 15, 2025

For this one-third subset of suppliers and brokers, the PSC established staggered license expiration dates though June 30, 2025. Generally, about 40 licenses will expire each month, with an initial set of 42 licenses expiring on February 28, 2025. At the end of each subsequent month, another 40 licenses will expire, until June 30, 2025, at which time each license under this initial one-third subset of all licenses will have expired.

The expiration date for the license(s) of each specific supplier and broker in the initial one-third subset can be found here

Supplier & broker license renewal applications cost $1,000

Among other new requirements, a supplier or broker in the license renewal application must specifically state how the supplier will comply with Maryland's telephone solicitation act, which generally prohibits contracting via telephone without a wet signature, absent the sale meeting certain exemptions. The current initial license application does not specifically require a specific demonstration of compliance with the telephone solicitation act, though such compliance may necessarily be reviewed and addressed when the PSC reviews the currently required submission of training and sales materials

A supplier or broker applying for a renewal must have one of their representatives undergo a training program approved by the PSC

The PSC has also adopted separate license applications for energy salespersons, and energy vendors, which, as previously reported, must now be licensed in Maryland if they engage in residential sales, starting July 1, 2025

An energy salesperson is an individual that sells residential retail energy on behalf of a supplier, either as an employee or agent

An energy vendor is an entity which is contracted or subcontracted with a supplier to provide residential sales services

In adopting the applications, the PSC set a bond level for energy salespersons, and a separate bond level for energy vendors

An energy salesperson license application must provide, "a suitable bond (or proof of a bond held by the applicant’s associated retail supplier) in the amount of $10,000."

This $10,000 bond is intended to cover any potential "harm" to customers from the energy salesperson's operations. The application notes that an energy salesperson may be required to submit an additional bond to, "ensure financial integrity or the payment of taxes."

An energy salesperson application must list, "the name [singular] and license number [singular] of the [not "each"] licensed retail supplier [singular] that the energy salesperson is associated with." [emphasis added]

It is unclear if an energy salesperson will be permitted to sell on behalf of multiple retail energy suppliers (particularly affiliated suppliers), and permitted to indicate such on the application

The statutory definition of energy salesperson does not specifically indicate that the energy salesperson must exclusively sell on behalf of one supplier

The energy salesperson application states, "In the event that the licensed supplier is exempted from the bond requirement, the supplier must provide a letter explaining that the supplier assumes responsibility for the energy salesperson’s conduct that contradicts Maryland law."

An energy vendor must provide a $5,000 bond.

An additional bond may be required from an energy vendor to, "ensure financial integrity or the payment of taxes."

Energy salespersons must undergo fingerprinting, which, according to the application, must be conducted only at the Criminal Justice Information System (CJIS) located at 6776 Reisterstown Road in Baltimore (a CJIS "storefront" at a Maryland Department of Public Safety and Correctional Services location). ECM notes that the Maryland Department of Public Safety and Correctional Services lists CJIS fingerprinting as available at other state-run CJIS offices in Maryland (located at motor vehicle registry offices), but the energy salesperson application specifically states that the fingerprinting is to be completed at the 6776 Reisterstown Road CJIS location (it is unclear if the motor vehicle registry offices offer "livescan", thus prompting the Reisterstown Road requirement).

The energy salesperson and energy vendor applications require applicants to generally agree to comply with all applicable laws, but do not, in contrast to the supplier initial and renewal applications, require the filing of specific training or marketing materials, or a statement of how compliance with any specific law (e.g. MTSA) will be achieved

Energy salesperson and energy vendor applications cost $1,000

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