Maryland PSC Fines Broker $18,000

The Maryland PSC has fined Burton Energy Group, Inc. $18,100 for brokering natural gas service without a license

"By its own admission, Burton began providing natural gas supplier services in the State in May 2009. It was not until October 8, 2013 that the Company filed its application for the necessary license," the PSC said.

"The Commission has decided to impose a civil penalty upon Burton for its flagrant violation of the State regulation requiring it to secure a license prior to operating as a natural gas supplier. PUA §13-201 states, in relevant part, that the Commission may impose a civil penalty not exceeding $25,000 against a person who violates a Commission regulation, and that each day or part of a day that the violation continues is a separate offense. The Commission is required to consider the following when determining the amount of the penalty: (1) the number of previous violations of any provision of this article; (2) the gravity of the current violation; (3) the good faith efforts of the violator in attempting to achieve compliance after notification of the violation; and (4) any other matter that the Commission considers appropriate and relevant. Based upon the Commission's analysis of these factors and circumstances as a whole, the Commission directs Burton to pay a civil penalty in the amount of eighteen-thousand, one-hundred dollars ($18,100)," the PSC said.

"Burton acknowledges that it began operating as an electric and gas supplier in May 2009, despite not having a license to do so. The Company received a license to operate as an electricity broker in Maryland in 2011, at which time the Commission imposed upon it a $100 civil penalty for its violation of the same regulation at issue here. Burton had previously violated COMAR 20.54.02.01.01A," the PSC said.

"Furthermore, the Commission considers the Company's current violation to be quite serious for a variety of reasons. Burton, as well as any company wishing to operate in the State of Maryland, is obligated to perform its due diligence prior to beginning its operations to ensure that it is in compliance with all State laws, regulations, and licensing requirements. Claiming to be unaware of a licensing requirement is unacceptable and of no defense for operating without the Commission's authorization. The fact that Burton previously was made aware of the requirement for an operational license, albeit as an electricity supplier, and subsequently fined for not properly obtaining one, is evidence that Burton knew, or should have known, the regulations requiring a license. Yet the Company continued operating as an unlicensed gas supplier for two more years until finally investigating the State licensing requirements for natural gas suppliers," the PSC said.

"Burton's failure to investigate the licensing rules even after being issued a fairly light civil penalty by the Commission in 2011 is made worse by the fact that the Company became aware of the need for a natural gas supplier license on May 28, 2013, but did not file its application until nearly five months later. During that period, Burton continued to collect increasing revenues from Maryland consumers, all while operating illegally. The Commission takes this type and degree of violation very seriously and therefore imposes a civil penalty of eighteen-thousand, one-hundred dollars ($18,100) against Burton Energy Group, Inc," the PSC said.

The PSC also granted Burton Energy Group a natural gas broker license to serve commercial and industrial customers, conditioned upon the company first providing an amended bond to reflect the inclusion of its natural gas broker services pursuant to the requirements of Code of Maryland Regulations 20.54.02.08.