Exemption Requirements

(a)In order to retain its exemption from rate regulation, a MMO shall do the following.#

(I)As part of its billing for utility service, the MMO shall charge its end-users only the actual cost billed to the MMO by the serving utility. The MMO shall not charge end-users for any other costs (such as, without limitation, the costs of construction, maintenance, financing, administration, metering, or billing for the equipment and facilities owned by the MMO) in addition to the actual costs billed to the MMO by the serving utility.#

(II)If the MMO bills its end-users separately for service, the sum of such billings shall not exceed the amount billed to the MMO by the serving utility.#

(III)If the MMO bills its end-users separately for service, the MMO shall pass on to its end-users all refunds the MMO receives from the serving utility or otherwise.#

(IV)The MMO shall establish procedures for giving notice of a refund to those who are not current end-users but who were end-users during the period for which the refund is paid.#

(V)A master meter operator shall retain, for a period of not less than three years, all records of original utility billings made to the master meter operator and all records of billings and refunds made by the master meter operator to its end-users, including certification of mailing, when applicable.#

(b)In order to retain its exemption from rate regulation, a MMO shall not resell the services provided by a serving utility to the MMO for profit. Resale of services provided by a serving utility to a MMO for profit is a basis for revocation of an exemption from rate regulation.#

(c)A MMO may check-meter tenants, lessees, or other persons to whom the gas ultimately is distributed but may do so only if the following conditions are met:#

(I)the check-meter is used solely for the purpose of determining a basis for the MMO to allocate the costs of the serving utility; and#

(II)the MMO does not receive more than the actual amount billed to the MMO by the serving utility from the MMO's customers.#