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From OPC’s Comments: 

OPC recommends that the Commission should take immediate action to ensure that the proceeds of the $2.5 million bond posted by SmartEnergy are not lost in the event that SmartEnergy, or the bond agent, takes the position that the bond is void by its own terms at the conclusion of SmartEnergy’s appeal of the Commission’s order.

Specifically, the Commission should order that SmartEnergy provide by March 27, 2024, financial security in the amount of $16 million in a form that does not expire at the conclusion of SmartEnergy’s appeal and is payable at the Commission’s direction. If the company does not comply with the Commission’s order, the Commission would have grounds to call the $2.5 million appeal bond and direct the payment of those funds into escrow pending further proceedings on how the refunds would be distributed, ensuring at least that amount is available to compensate customers for the harms they have incurred. [ *** ] 

The Commission should take action to ensure that the full amount of the refunds will be paid or, at least, that the $2.5 million in security has been preserved and is available to provide partial relief to Maryland customers. To achieve these goals, the Commission should order that SmartEnergy provide by March 27, 2024, financial security in the amount of $16 million in a form that does not expire at the conclusion of SmartEnergy’s appeal and is payable at the Commission’s direction. If an appeal bond or other bond is not available, as SmartEnergy claims, it could provide a letter of credit or cash. If the company does not comply with this direction, the Commission would have grounds to call the $2.5 million appeal bond and direct the payment of its funds into escrow pending further proceedings on how the bond proceeds would be used for refunds.

OPC’s Comments (ML # 308412) (03/25/2024) 
9613 (05/10/2019)