Md. Code Regs. 20.62.05.08

Current through Register Vol. 52, No. 1, January 10, 2025

Section 20.62.05.08 - Contracts for Customer Subscription in a Community Solar Energy Generation System

A. Minimum Contract Requirements.

(1) A subscribing organization's subscription contract shall contain all material terms and conditions, including:

(a) A plain language disclosure of the subscription, including:

(i) The terms under which the pricing will be calculated over the life of the contract and a good faith estimate of the subscription price expressed as a flat monthly rate or on a per-kilowatt-hour basis; and

(ii) Whether any charges may increase during the course of service, and, if so, how much advance notice is provided to the subscriber;

(b) Contract provisions regulating the disposition or transfer of a subscription to the CSEGS, as well as the costs or potential costs associated with such a disposition or transfer;

(c) All nonrecurring (one-time) charges;

(d) All recurring (monthly, yearly) charges;

(e) A statement of contract duration, including the initial time period and any rollover provision;

(f) Terms and conditions for early termination, including:

(i) Any penalties that the subscriber organization may charge to the subscriber; and

(ii) The process for unsubscribing and any associated costs;

(g) If a security deposit is required:

(i) The amount of the security deposit;

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

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

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

(h) A description of any fee or charge and the circumstances under which a customer may incur a fee or charge;

(i) A statement that the subscriber organization may terminate the contract early, including:

(i) Circumstances under which early cancellation by the subscriber organization may occur;

(ii) Manner in which the subscriber organization shall notify the customer of the early cancellation of the contract;

(iii) Duration of the notice period before early cancellation; and

(iv) Remedies available to the customer if early cancellation occurs;

(j) A statement that the customer may terminate the contract early, including:

(i) Circumstances under which early cancellation by the customer may occur;

(ii) Manner in which the customer shall notify the subscriber organization of the early cancellation of the contract;

(iii) Duration of the notice period before early cancellation;

(iv) Remedies available to the subscriber organization if early cancellation occurs; and

(v) Amount of any early cancellation fee;

(k) A statement describing contract renewal procedures, if any;

(I) A dispute procedure;

(m) The Commission's toll-free number and Internet address;

(n) A notice that the contract does not include utility charges;

(o) A billing procedure description;

(p) The data privacy policies of the subscriber organization;

(q) A description of any compensation to be paid for underperformance;

(r) Evidence of insurance;

(s) A long-term maintenance plan;

(t) Current production projections and a description of the methodology used to develop production projections;

(u) Contact information for the subscriber organization for questions and complaints;

(v) A statement that the subscriber organization and electric company do not make representations or warranties concerning the tax implications of any bill credits provided to the subscriber;

(w) The method of providing notice to the subscribers when the CSEGS is out of service for more than 3 business days, including notice of:

(i) The estimated duration of the outage; and

(ii) The estimated production that will be lost due to the outage;

(x) An explanation of how unsubscribed production of the CSEGS will be allocated; and

(y) Any other terms and conditions of service.

(2) A residential customer may downsize the allocation of solar kilowatt hours under an existing CSEGS Subscription.

(3) A subscriber organization may charge or collect no more than a reasonable fee for the downsizing of a subscriber's allocation.

(4) A subscription coordinator may not charge or collect a termination fee for the downsizing or cancellation of a subscriber's allocation.

(5) A subscription coordinator may only enroll subscribers in CSEGS contracts that guarantee financial savings for the subscriber.

B. Methods of Contracting.

(1) A subscriber organization may not subscribe a residential customer using a process that does not require the customer's consent.

(2) A subscriber organization that contracts with a customer by means of the Internet shall:

(a) Confirm the identity of the person making the contract;

(b) Comply with applicable Maryland and federal law; and

(c) Take appropriate steps to safeguard customer privacy.

(3) A subscriber organization that sends a contract over the Internet to a valid email address of the contracting customer is considered to have complied with §B(2)(a) of this regulation.

C. Evergreen Contracts.

(1) A subscriber organization shall provide a customer with a notice of the pending renewal of an evergreen contract 30 days before the automatic renewal is scheduled to occur.

(2) The subscriber organization notice required under §C(1) of this regulation shall:

(a) Provide a clearly stated and highlighted notice to a customer of any changes in the material terms and conditions of the agreement; and

(b) Inform the customer how to terminate the contract without penalty.

Md. Code Regs. 20.62.05.08

Regulations .08 adopted effective 43:14 Md. R. 781, eff. 7/18/2016; amended effective 49:6 Md. R.406, eff. 3/21/2022