PSC defers decision on Bollinger Energy license change after commissioners question bond, consumer protections

The Maryland Public Service Commission on May 14, 2025 deferred consideration of Bollinger Energy Corporation’s request to amend its natural gas supplier license to remove permission to serve residential customers.

Commissioners raised concerns that Bollinger does not have a bond backing its gas supplier license and that customers who believe they are owed money would have limited immediate recourse if the supplier became insolvent. Charles Herbert of commission staff told the commission that Bollinger confirmed it had terminated service to all of its residential accounts in Maryland as of April 1, 2025 and that staff recommends granting the company’s request as a modification rather than a cancellation.

The move to delay a final decision followed sustained questioning about the regulatory framework. Commissioner Suchman pressed staff on bond requirements and consequences for customers, saying, “it doesn't seem, I mean, you know, if there's a problem with the supplier, there's no protections for the customer, for the rate payer, if there's no bond.” Assistant staff counsel Ruthie Herman replied that “there is no direct consumer relief in the bond” but explained how COMAR and regulatory practice allow the commission to require a bond after reviewing an applicant’s financial statements.

Staff explained that a supplier that passes the commission's financial-integrity test historically has not been required to post a bond. Kevin Mosher of staff said that if an applicant passes the financial test, “a bond is not required.” Commissioners pushed back, noting that legacy suppliers licensed decades ago may be operating without a bond and that the practice could lead to uneven protections. Commissioner Litton urged staff to work with the Office of People's Counsel (OPC) and recommended sending notice to all retail suppliers so those that no longer wish to serve residential customers under recently adopted statutory requirements can inform the commission at once.

The commission’s discussion included a request that staff and OPC try to develop a coordinated approach rather than addressing similar filings piecemeal. Chair Hoover said the item would be deferred while staff and OPC pursue that work; Bollinger was told to await action. No final vote on Bollinger’s requested amendment was taken at the meeting.

Clarifying details discussed in the meeting included that Bollinger had terminated its residential accounts as of April 1, 2025, that Bollinger reported 49 residential customers in the example used during debate, and that the company holds a $10,000 bond for an electric broker license while its full gas supplier license does not carry a bond. Staff described the existing regulatory path: companies may either post a bond or pass a financial-integrity test set out in COMAR, and the commission retains authority to require a bond later if financial problems arise.

The commission signaled follow-up actions: staff and OPC will confer and return with a recommended approach and the commission asked staff to consider sending a notice to retail suppliers about whether they intend to continue serving residential customers under the new statutory framework. Commissioners also discussed whether a rulemaking would be appropriate to resolve the matter for all suppliers at once.

The matter will return to the commission once staff and OPC report back; no implementation deadline was set at the May 14 meeting.