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Sunday, January 31, 1999

19990100 MD Senate Bill 300 Electric Utility Industry Restructuring Pages 1 to 50

19990100 MD Senate Bill 300 Electric Utility Industry Restructuring Pages 1 to 50

Pages 1 to 50

Click here for Pages 50 through 95

SENATE BILL 300

Electric Utility Industry Restructuring

Unofficial Copy 1999 Regular Session

C5 (9lr1907)

ENROLLED BILL

-- Finance/Environmental Matters --

Introduced by Senators Miller and Bromwell

Read and Examined by Proofreaders:

_____________________________________________

Proofreader.

_____________________________________________

Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approval this

_____ day of ____________ at ____________________ o'clock, _____M.

_____________________________________________

President.

CHAPTER_______

1 AN ACT concerning

2 Electric Utility Industry Restructuring

3 FOR the purpose of enabling the restructuring of the electric utility industry of the

4 State in a certain manner, subject to oversight of the Public Service Commission;

5 stating the findings and declaration of intent of the General Assembly; requiring

6 the Commission to require certain consumer education programs, customer

7 information, nondiscrimination policies, and operational requirements;

8 requiring the Commission, in consultation with the Maryland Energy

9 Administration to report by a certain date on certain programs; requiring the

10 Commission to issue certain orders or adopt certain regulations before the

11 implementation of customer choice; prohibiting the disclosure of certain

12 information; prohibiting certain actions by electricity suppliers; providing that

13 this Act may not be construed as preventing the application of certain protections

14 and laws; requiring certain electric companies to provide certain information to

15 the Department of the Environment and the Commission by a certain date;

16 requiring the Department of the Environment, in consultation with the

17 Commission, to study a certain environmental surcharge under certain

2 SENATE BILL 300

1 circumstances; requiring the Commission, in consultation with the Department

2 of the Environment, to adopt certain measures regarding certain environmental

3 programs; requiring the Commission to reduce certain rates for a certain time

4 under certain circumstances; requiring the Commission to consult with the

5 Consumer Protection Division of the Office of the Attorney General before issuing

6 certain regulations; allowing municipal electric utilities to elect to make their

7 service territory available for customer choice; requiring municipal electric

8 utilities to file a certain plan and report by a certain date on a certain status;

9 providing that certain persons may not engage in the business of competitive

10 billing services in certain local jurisdictions unless the person holds a certain

11 license; providing for certain licensure requirements; prohibiting the recovery of

12 consumer education costs under certain circumstances; requiring the

13 Commission to establish a certain universal service program; requiring all

14 customers of electric companies in the State to contribute to the funding of a

15 universal service program; requiring the Commission to report on a universal

16 service program and make a certain recommendation; providing for certain

17 funding of a universal service program; requiring certain actions by the General

18 Assembly regarding certain funding of the universal service program; requiring

19 the Commission to consider certain evidence in determining certain costs or

20 benefits; requiring the Commission to cooperate with and share information with

21 the Antitrust Division of the Office of the Attorney General; requiring certain

22 electric companies to continue purchasing electricity under certain contracts

23 under certain circumstances; prohibiting electricity suppliers and electric

24 companies from terminating certain customers under certain circumstances;

25 requiring the Commission, in consultation with the Maryland Energy

26 Administration, to report by a certain date on the feasibility of requiring a

27 certain renewable portfolio standard; altering the imposition of the

28 environmental surcharge to certain customers; extending the termination date of

29 a certain surcharge; authorizing the Governor to submit a certain budget

30 amendment from the Revenue Stabilization Fund to be used for certain

31 education purposes; requiring the Commission to use certain funds during a

32 certain period to implement a certain program; requiring the Commission to

33 report by a certain date on a certain recommended consumer education funding

34 level for a certain time; providing for the implementation of standard offer service

35 in a certain manner; prohibiting the Commission from requiring divestiture of

36 certain assets; requiring the Commission to ensure the creation of certain

37 competitive electricity services in a certain manner; allowing the Commission to

38 adopt alternative forms of regulation for certain regulated services; requiring the

39 Commission to limit certain rates for a certain period; requiring an electric

40 company to provide certain services in certain territory; requiring certain persons

41 to be licensed by the Commission before providing electricity supply services in

42 the State, subject to certain requirements and enforcement mechanisms; allowing

43 an electric company to transfer or sell certain generation facilities or assets in a

44 certain manner, subject to certain review by the Commission for certain purposes;

45 providing for the opportunity to recover certain costs by certain means and

46 secured or obtained in certain manners; requiring the phased implementation of

47 customer choice for electric customers in the State in a certain manner by certain

48 dates, subject to Commission determination and certain contingencies;

3 SENATE BILL 300

1 establishing the obligation of an electric company to serve customers after a

2 certain date; requiring the implementation of competitive metering and billing on

3 certain dates; providing for investigation of market power in certain manners,

4 subject to certain remedial action by the Commission; altering the class of entities

5 that contribute to the costs and expenses of the Commission; providing for

6 reciprocity of customer choice with respect to certain other jurisdictions;

7 providing for certain long-range planning for certain regulated utility services;

8 requiring certain tariff and rate filings for certain regulated utility services;

9 eliminating a certain required plan on the State's generating needs; altering

10 certain criteria for obtaining a certificate of public convenience and necessity for

11 a generating station; requiring certain electric companies to maintain certain

12 percentages of renewable energy resources under certain circumstances; requiring

13 the Secretary of Natural Resources to use certain funds for certain purposes;

14 providing that certain provisions of the Uniform Commercial Code do not apply

15 to certain property; providing for the adoption of certain regulations; defining

16 certain terms; providing that provisions of this Act are severable; providing for

17 the effective dates of this Act; and generally relating to restructuring of the

18 electric utility industry.

19 BY repealing and reenacting, with amendments,

20 Article - Public Utility Companies

21 Section 1-101, 2-110, 2-118, 4-201, 4-202, 7-201, 7-203, 7-207, and 7-211

22 Annotated Code of Maryland

23 (1998 Volume)

24 BY adding to

25 Article - Public Utility Companies

26 Section 7-501 through 7-518, inclusive, to be under the new subtitle "Subtitle 5.

27 Electric Industry Restructuring"

28 Annotated Code of Maryland

29 (1998 Volume)

30 BY repealing and reenacting, with amendments,

31 Article - Commercial Law

32 Section 9-104(m)

33 Annotated Code of Maryland

34 (1997 Replacement Volume and 1998 Supplement)

35 BY adding to

36 Article - Commercial Law

37 Section 9-104(n)

38 Annotated Code of Maryland

39 (1997 Replacement Volume and 1998 Supplement)

40 BY repealing

4 SENATE BILL 300

1 Article - Public Utility Companies

2 Section 4-403

3 Annotated Code of Maryland

4 (1998 Volume)

5 BY repealing and reenacting, with amendments,

6 Article - Natural Resources

7 Section 3-302

8 Annotated Code of Maryland

9 (1997 Replacement Volume and 1998 Supplement)

10 FOR the purpose of enabling the restructuring of the electric utility industry of the

11 State in a certain manner, subject to oversight of the Public Service

12 Commission; stating the findings and declaration of intent of the General

13 Assembly; allowing requiring the Commission to require certain consumer

14 education programs, universal programs customer information,

15 nondiscrimination policies, and operational requirements; requiring the

16 Commission, in consultation with the Maryland Energy Administration to

17 report by a certain date on certain programs; requiring the Commission to issue

18 certain orders or adopt certain regulations before the implementation of

19 customer choice; prohibiting the disclosure of certain information; prohibiting

20 certain actions by electricity suppliers; providing that this Act may not be

21 construed as preventing the application of certain protections and laws;

22 requiring the Commission, in consultation with the Department of

23 Environment, to adopt certain measures regarding certain environmental

24 programs; requiring the Commission to reduce certain rates for a certain time

25 under certain circumstances; requiring the Commission to consult with the

26 Consumer Protection Division of the Office of the Attorney General before

27 issuing certain regulations; allowing municipal electric utilities to elect to make

28 their service territory available for customer choice; requiring municipal electric

29 utilities to file a certain plan and report by a certain date on a certain status;

30 providing that certain persons may not engage in the business of competitive

31 billing services in certain local jurisdictions unless the person holds a certain

32 license; providing for certain licensure requirements; prohibiting the recovery of

33 consumer education costs under certain circumstances; requiring the

34 Commission to establish a certain universal service program; requiring all

35 customers of electric companies in the State to contribute to the funding of a

36 universal service program; requiring the Commission to report on a universal

37 service program and make a certain recommendation; providing for certain

38 funding of a universal service program; requiring certain actions by the General

39 Assembly regarding certain funding of the universal service program; requiring

40 the Commission to consider certain evidence in determining certain costs or

41 benefits; requiring the Commission to cooperate with and share information

42 with the Antitrust Division of the Office of the Attorney General; requiring

43 certain electric companies to continue purchasing electricity under certain

44 contracts under certain circumstances; prohibiting electricity suppliers and

45 electric companies from terminating certain customers under certain

5 SENATE BILL 300

1 circumstances; requiring the Commission, in consultation with the Maryland

2 Energy Administration, to report by a certain date on the feasibility of requiring

3 a certain renewable portfolio standard; altering the imposition of the

4 environmental surcharge to certain customers; extending the termination date

5 of a certain surcharge; authorizing the Governor to submit a certain budget

6 amendment from the Revenue Stabilization Fund to be used for certain

7 education purposes; requiring the Commission to use certain funds during a

8 certain period to implement a certain program; requiring the Commission to

9 report by a certain date on a certain recommended consumer education funding

10 level for a certain time; providing for the implementation of standard offer

11 service in a certain manner; prohibiting the Commission from requiring

12 divestiture of certain assets; requiring the Commission to ensure the creation of

13 certain competitive electricity services in a certain manner; allowing the

14 Commission to adopt alternative forms of regulation for certain regulated

15 services; allowing requiring the Commission to limit certain rates for a certain

16 period; requiring an electric company to provide certain services in certain

17 territory; requiring certain persons to be licensed by the Commission before

18 providing electricity supply services in the State, subject to certain

19 requirements and enforcement mechanisms; allowing an electric company to

20 transfer or sell certain generation facilities or assets in a certain manner,

21 subject to certain review by the Commission for certain purposes; providing for

22 the opportunity to recover certain costs by certain means and secured or

23 obtained in certain manners; requiring the phased implementation of customer

24 choice for electric customers in the State in a certain manner by certain dates,

25 subject to Commission determination and certain contingencies; establishing

26 the obligation of an electric company to serve customers after a certain date;

27 requiring the implementation of competitive metering and billing on certain

28 dates; providing for investigation of market power in certain manners, subject to

29 certain remedial action by the Commission; providing for reciprocity of customer

30 choice with respect to certain other jurisdictions; providing for certain

31 long-range planning for certain regulated utility services only; requiring certain

32 tariff and rate filings for certain regulated utility services only; eliminating a

33 certain required plan on the State's generating needs; altering certain criteria

34 for obtaining a certificate of public convenience and necessity for a generating

35 station; requiring the Secretary of Natural Resources to use certain funds for

36 certain purposes; providing that certain provisions of the Uniform Commercial

37 Code do not apply to certain property; providing for the adoption of certain

38 regulations; defining certain terms; providing that provisions of this Act are

39 severable; providing for the effective date of a portion of this Act; and generally

40 relating to restructuring of the electric utility industry.

41 BY repealing and reenacting, with amendments,

42 Article - Public Utility Companies

43 Section 1-101, 2-118, 4-201, 4-202, 7-201, and 7-207 7-203, 7-207, and 7-211

44 Annotated Code of Maryland

45 (1998 Volume)

46 BY adding to

6 SENATE BILL 300

1 Article - Public Utility Companies

2 Section 7-501 through 7-518, inclusive, to be under the new subtitle "Subtitle 5.

3 Electric Industry Restructuring"

4 Annotated Code of Maryland

5 (1998 Volume)

6 BY adding to

7 Article - Natural Resources

8 Section 3-308

9 Annotated Code of Maryland

10 (1997 Replacement Volume and 1998 Supplement)

11 BY repealing and reenacting, with amendments,

12 Article - Commercial Law

13 Section 9-104(m)

14 Annotated Code of Maryland

15 (1997 Replacement Volume and 1998 Supplement)

16 BY adding to

17 Article - Commercial Law

18 Section 9-104(n)

19 Annotated Code of Maryland

20 (1997 Replacement Volume and 1998 Supplement)

21 BY repealing

22 Article - Public Utility Companies

23 Section 4-403

24 Annotated Code of Maryland

25 (1998 Volume)

26 BY repealing and reenacting, with amendments,

27 Article - Natural Resources

28 Section 3-302

29 Annotated Code of Maryland

30 (1997 Replacement Volume and 1998 Supplement)

31 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF

32 MARYLAND, That the Laws of Maryland read as follows:

33 Article - Public Utility Companies

34 1-101.

35 (a) In this article the following words have the meanings indicated.

7 SENATE BILL 300

1 (B) (1) "AGGREGATOR" MEANS AN ENTITY OR AN INDIVIDUAL THAT ACTS

2 ON BEHALF OF A CUSTOMER TO PURCHASE ELECTRICITY.

3 (2) "AGGREGATOR" DOES NOT INCLUDE:

4 (I) AN ENTITY OR INDIVIDUAL THAT PURCHASES ELECTRICITY

5 FOR ITS OWN USE OR FOR THE USE OF ITS SUBSIDIARIES OR AFFILIATES;

6 (II) A MUNICIPAL ELECTRIC UTILITY SERVING ONLY IN ITS

7 DISTRIBUTION TERRITORY; OR

8 (III) A COMBINATION OF GOVERNMENTAL UNITS THAT PURCHASES

9 ELECTRICITY FOR USE BY THE GOVERNMENTAL UNITS.

10 (C) "BROKER" MEANS AN ENTITY OR INDIVIDUAL THAT ACTS AS AN AGENT OR

11 INTERMEDIARY IN THE SALE AND PURCHASE OF ELECTRICITY BUT DOES NOT TAKE

12 TITLE TO ELECTRICITY.

13 [(b)] (D) "Commission" means the Public Service Commission.

14 [(c)] (E) (1) "Common carrier" means a person, public authority, or federal,

15 State, district, or municipal transportation unit that is engaged in the public

16 transportation of persons for hire, by land, water, air, or any combination of them.

17 (2) "Common carrier" includes:

18 (i) an airline company;

19 (ii) a car company, motor vehicle company, automobile company, or

20 motor bus company;

21 (iii) a power boat company, vessel-boat company, steamboat

22 company, or ferry company;

23 (iv) a railroad company, street railroad company, or sleeping car

24 company;

25 (v) a taxicab company;

26 (vi) a toll bridge company; and

27 (vii) a transit company.

28 (3) "Common carrier" does not include:

29 (i) a county revenue authority;

30 (ii) a toll bridge or other facility owned and operated by a county

31 revenue authority; or

32 (iii) a vanpool or launch service.

8 SENATE BILL 300

1 [(d)] (F) "Company", as a designation for a type of enterprise, includes a person

2 that owns a company individually or as an agent, trustee, or receiver of a company.

3 [(e)] (G) "County" means a county of the State or Baltimore City.

4 [(f)] (H) (1) "Electric company" means a [public service company that:

5 (i) owns an electric plant and transmits, sells, or distributes

6 electricity;

7 (ii) generates electricity for distribution or sale; or

8 (iii) is authorized to install or maintain facilities in, over, or under

9 streets for furnishing or distributing electricity.

10 (2) "Electric company" includes a municipal corporation that is in the

11 business of supplying electricity for other than municipal purposes] PERSON WHO

12 PHYSICALLY TRANSMITS OR DISTRIBUTES ELECTRICITY IN THE STATE TO A RETAIL

13 ELECTRIC CUSTOMER.

14 [(3)] (2) "Electric company" does not include [a company that generates

15 or transmits electricity exclusively for its own use]:

16 (I) THE FOLLOWING PERSONS WHO SUPPLY ELECTRICITY AND

17 ELECTRICITY SUPPLY SERVICES SOLELY TO OCCUPANTS OF A BUILDING FOR USE BY

18 THE OCCUPANTS:

19 1. AN OWNER/OPERATOR WHO HOLDS OWNERSHIP IN AND

20 MANAGES THE INTERNAL DISTRIBUTION SYSTEM SERVING THE BUILDING; OR

21 2. A LESSEE/OPERATOR WHO HOLDS A LEASEHOLD

22 INTEREST IN AND MANAGES THE INTERNAL DISTRIBUTION SYSTEM SERVING THE

23 BUILDING;

24 (II) ANY PERSON WHO GENERATES ON-SITE GENERATED

25 ELECTRICITY; OR

26 (III) A PERSON WHO TRANSMITS OR DISTRIBUTES ELECTRICITY

27 WITHIN A SITE OWNED BY THE PERSON OR THE PERSON'S AFFILIATE THAT IS

28 INCIDENTAL TO A PRIMARILY LANDLORD-TENANT RELATIONSHIP.

29 [(g)] (I) "Electric plant" means the material, equipment, and property owned

30 by an electric company and used or to be used for or in connection with electric service.

31 (J) (1) "ELECTRICITY SUPPLIER" MEANS A PERSON:

32 (I) WHO SELLS:

33 1. ELECTRICITY;

34 2. ELECTRICITY SUPPLY SERVICES;

9 SENATE BILL 300

1 3. COMPETITIVE BILLING SERVICES; OR

2 4. COMPETITIVE METERING SERVICES; OR

3 (II) WHO PURCHASES, BROKERS, ARRANGES, OR MARKETS

4 ELECTRICITY OR ELECTRICITY SUPPLY SERVICES FOR SALE TO A RETAIL ELECTRIC

5 CUSTOMER.

6 (2) "ELECTRICITY SUPPLIER" INCLUDES AN ELECTRIC COMPANY, AN

7 AGGREGATOR, A BROKER, AND A MARKETER OF ELECTRICITY.

8 (3) "ELECTRICITY SUPPLIER" DOES NOT INCLUDE:

9 (I) THE FOLLOWING PERSONS WHO SUPPLY ELECTRICITY AND

10 ELECTRICITY SUPPLY SERVICES SOLELY TO OCCUPANTS OF A BUILDING FOR USE BY

11 THE OCCUPANTS:

12 1. AN OWNER/OPERATOR WHO HOLDS OWNERSHIP IN AND

13 MANAGES THE INTERNAL DISTRIBUTION SYSTEM SERVING THE BUILDING; OR

14 2. A LESSEE/OPERATOR WHO HOLDS A LEASEHOLD

15 INTEREST IN AND MANAGES THE INTERNAL DISTRIBUTION SYSTEM SERVING THE

16 BUILDING; OR

17 (II) A PERSON WHO GENERATES ON-SITE GENERATED

18 ELECTRICITY.

19 [(h)] (K) (1) "Gas company" means a public service company that:

20 (i) is authorized to install or maintain facilities in, over, or under

21 streets for furnishing or distributing gas; or

22 (ii) owns a gas plant and:

23 1. transmits, sells, supplies, or distributes artificial or

24 natural gas; or

25 2. manufactures gas for distribution or sale.

26 (2) "Gas company" includes a municipal corporation that is in the

27 business of supplying gas for other than municipal purposes.

28 [(i)] (L) "Gas master meter operator" means a person that owns or operates a

29 pipeline system, other than piping within a building:

30 (1) that distributes gas within, but not limited to, a definable area, such

31 as a mobile home park, housing project, or apartment complex;

32 (2) for which the person purchases metered, artificial, or natural gas

33 from an outside source for resale through the pipeline system; and

10 SENATE BILL 300

1 (3) that supplies the ultimate consumer, who purchases the gas directly

2 through a meter or by other means, such as by rent.

3 [(j)] (M) "Gas plant" means the material, equipment, and property owned by a

4 gas company and used or to be used for or in connection with gas service.

5 [(k)] (N) "Launch service" means a power boat company that transports

6 passengers or freight between the shore and vessels on a body of water in the State.

7 (O) "MARKETER" MEANS A PERSON WHO PURCHASES AND TAKES TITLE TO

8 ELECTRICITY AS AN INTERMEDIARY FOR SALE TO A CUSTOMER.

9 (P) "MUNICIPAL ELECTRIC UTILITY" MEANS A MUNICIPAL CORPORATION, OR

10 A DIVISION OF A MUNICIPAL CORPORATION, THAT IS IN THE BUSINESS OF

11 TRANSMITTING OR DISTRIBUTING ELECTRICITY FOR PURPOSES OTHER THAN END

12 USE BY THE MUNICIPAL CORPORATION.

13 (Q) "ON-SITE GENERATED ELECTRICITY" MEANS ELECTRICITY THAT:

14 (1) IS NOT TRANSMITTED OR DISTRIBUTED OVER AN ELECTRIC

15 COMPANY'S TRANSMISSION OR DISTRIBUTION SYSTEM; AND

16 (2) IS GENERATED AT A FACILITY OWNED OR OPERATED BY AN

17 ELECTRIC CUSTOMER OR OPERATED BY A DESIGNEE OF THE OWNER WHO, WITH THE

18 OTHER TENANTS OF THE FACILITY, CONSUMES AT LEAST 80% OF THE POWER

19 GENERATED BY THE FACILITY EACH YEAR.

20 [(l)] (R) "Own" includes own, operate, lease to or from, manage, or

21 control.

22 [(m)] (S) "Person" means an individual, receiver, trustee, guardian, personal

23 representative, fiduciary, or representative of any kind and any partnership, firm,

24 association, corporation, or other entity.

25 [(n)] (T) "Plant" includes all material, equipment, and property owned by a

26 public service company and used or to be used for or in connection with a public utility

27 service.

28 [(o)] (U) "Proceeding" includes an action, complaint, hearing, investigation,

29 trial, appeal, order, or similar matter pending before, made, or conducted by an official

30 body.

31 [(p)] (V) "Public service company" means a common carrier company, electric

32 company, gas company, sewage disposal company, steam heating company, telegraph

33 company, telephone company, water company, or any combination of public service

34 companies.

35 [(q)] (W) (1) "Railroad" means a common carrier by rail powered in any

36 manner.

11 SENATE BILL 300

1 (2) "Railroad" includes material, equipment, and property used on or in

2 connection with a railroad.

3 [(r)] (X) (1) "Rate" means a toll, fare, tariff, fee, price, or other charge, or a

4 combination of these items, by a public service company for public utility service.

5 (2) "Rate" includes a schedule, regulation, classification, or practice of a

6 public service company that affects:

7 (i) the amount of a charge; or

8 (ii) the nature and value of the service rendered for the charge.

9 [(s)] (Y) (1) "Record" means the original or a copy of any documentary

10 material.

11 (2) "Record" includes an account, book, chart, contract, document, file,

12 map, paper, profile, report, or schedule.

13 (Z) "RENEWABLE ENERGY RESOURCE" MEANS ONE OR MORE OF THE

14 FOLLOWING SOURCES OF ENERGY, ENERGY TECHNOLOGY, OR RELATED CREDIT:

15 (1) SOLAR;

16 (2) WIND;

17 (3) TIDAL;

18 (4) GEOTHERMAL;

19 (5) BIOMASS, INCLUDING WASTE-TO-ENERGY AND LANDFILL GAS

20 RECOVERY;

21 (6) HYDROELECTRIC FACILITIES;

22 (7) DIGESTER GAS; AND

23 (8) A MANUFACTURING OR COMMERCIAL WASTE-TO-ENERGY SYSTEM

24 OR FACILITY.

25 (AA) (1) "RETAIL ELECTRIC CUSTOMER" MEANS A PURCHASER OF

26 ELECTRICITY FOR END USE IN THE STATE.

27 (2) "RETAIL ELECTRIC CUSTOMER" EXCLUDES:

28 (I) AN OCCUPANT OF A BUILDING IN WHICH THE

29 OWNER/OPERATOR OR LESSEE/OPERATOR MANAGES THE INTERNAL DISTRIBUTION

30 SYSTEM SERVING THE BUILDING AND SUPPLIES ELECTRICITY AND ELECTRICITY

31 SUPPLY SERVICES SOLELY TO OCCUPANTS OF THE BUILDING FOR USE BY THE

32 OCCUPANTS; AND

12 SENATE BILL 300

1 (II) A PERSON WHO GENERATES ON-SITE GENERATED

2 ELECTRICITY, TO THE EXTENT THE ON-SITE GENERATED ELECTRICITY IS

3 CONSUMED BY THAT PERSON OR ITS TENANTS.

4 [(t)] (BB) "Sewage disposal company" means a privately-owned public service

5 company that owns or maintains facilities for the disposal of sewage.

6 [(u)] (CC) "Small rural electric cooperative" means an electric company that:

7 (1) serves only the consumers that exclusively own and control the

8 company;

9 (2) conducts its business on a not-for-profit basis; and

10 (3) supplies electricity to less than 1,000 electric meters in the State.

11 [(v)] (DD) "State" means:

12 (1) a state, possession, territory, or commonwealth of the United States; or

13 (2) the District of Columbia.

14 [(w)] (EE) "Steam heating company" means a public service company that

15 manufactures, sells, or distributes steam for use, sale, or distribution.

16 [(x)] (FF) "Street railroad" means a railroad:

17 (1) that is not part of a trunk line railway system; and

18 (2) whose routes are mainly within Baltimore City or a municipal

19 corporation with a population of at least 2,000.

20 [(y)] (GG) (1) "Taxicab" means a motor vehicle for hire that:

21 (i) is designed to carry seven or fewer individuals, including the

22 driver; and

23 (ii) is used to accept or solicit passengers for transportation between

24 points along public streets as the passengers request.

25 (2) "Taxicab" does not include a motor vehicle operated on a regular

26 schedule and between fixed points with the approval of the Commission as defined in

27 Title 11 of the Transportation Article.

28 [(z)] (HH) "Telegraph company" means a public service company that:

29 (1) owns telegraph lines to receive, transmit, or communicate telegraphic

30 communications; or

31 (2) leases, licenses, or sells telegraphic communications.

13 SENATE BILL 300

1 [(aa)] (II) "Telegraph lines" means the material, equipment, and property owned

2 by a telegraph company and used or to be used for or in connection with telegraph

3 service.

4 [(bb)] (JJ) (1) "Telephone company" means a public service company that:

5 (i) owns telephone lines to receive, transmit, or communicate

6 telephone or teletype communications; or

7 (ii) leases, licenses, or sells telephone or teletype communications.

8 (2) "Telephone company" does not include a cellular telephone company.

9 [(cc)] (KK) "Telephone lines" means the material, equipment, and property owned

10 by a telephone company and used or to be used for or in connection with telephone

11 service.

12 [(dd)] (LL) "Toll bridge" means a bridge operated by a person authorized by the

13 Commission to charge and collect toll from traffic using the bridge.

14 [(ee)] (MM) (1) "Transportation of persons for hire" means the transportation of

15 persons by:

16 (i) regularly scheduled operations;

17 (ii) charter or contract operations; or

18 (iii) tour or sightseeing operations.

19 (2) "Transportation of persons for hire" includes the transportation of

20 persons, whether on the cooperative plan, carried by a corporation, group, or

21 association engaged in the transportation of its stockholders, shareholders, or

22 members.

23 [(ff)] (NN) "Water company" means a public service company that owns a water

24 plant and sells or distributes water for gain.

25 [(gg)] (OO) "Water plant" means the material, equipment, and property owned by

26 a water company and used or to be used for or in connection with water service.

27 2-110.

28 (A) IN THIS SECTION, "PUBLIC SERVICE COMPANY" INCLUDES AN

29 ELECTRICITY SUPPLIER AS DEFINED IN § 1-101 OF THIS ARTICLE.

30 [(a)] (B) (1) (i) Subject to paragraphs (2) and (3) of this subsection, the

31 costs and expenses of the Commission shall be borne by the public service companies

32 that are subject to the Commission's jurisdiction.

33 (ii) The costs and expenses shall be assessed as provided in this

34 section.

14 SENATE BILL 300

1 (2) An appropriation for the costs and expenses of the Commission shall

2 be included in the State budget and paid from the State treasury.

3 (3) The State treasury shall be reimbursed from the money collected

4 under this section.

5 [(b)] (C) (1) (i) Before each State fiscal year, the Chairman of the Commission

6 shall estimate the Commission's total costs and expenses, including:

7 1. the compensation and expenses of the Commission, its

8 officers, agents, and personnel;

9 2. the cost of retirement contributions, Social Security, health

10 insurance, and other benefits required to be paid by the State for the personnel of the

11 Commission;

12 3. all other maintenance and operation expenses; and

13 4. all other direct and indirect costs.

14 (ii) The estimate shall exclude the costs of maintaining testing

15 equipment reimbursable under § 2-111(a) of this subtitle.

16 (2) Based on the estimate, the Chairman shall determine the amount to be

17 paid by each public service company.

18 (3) The Commission shall send a bill to each public service company on or

19 before May 1st of each year.

20 (4) The bill shall equal the product of:

21 (i) the estimated total costs and expenses of the Commission during

22 the next fiscal year; multiplied by

23 (ii) the ratio of the gross operating revenues for the public service

24 company derived from intrastate utility AND ELECTRICITY SUPPLIER operations in

25 the preceding calendar year, or other 12-month period as the Chairman determines, to

26 the total of the gross operating revenues derived from intrastate utility AND

27 ELECTRICITY SUPPLIER operations for all public service companies that are billed

28 under this section over that period.

29 (5) The minimum bill for a public service company shall be $10.

30 (6) The public service company:

31 (i) shall pay the bill on or before the next July 15th; or

32 (ii) may elect to make partial payments on the 15th days of July,

33 October, January, and April.

15 SENATE BILL 300

1 (7) A partial payment shall equal 25% of the bill and may not be less than

2 $10.

3 (8) During any State fiscal year, the Chairman may change the estimate

4 of costs and expenses of the Commission.

5 (9) (i) If the estimate is changed, the Commission shall send a revised

6 bill to each public service company that has elected to make partial payments.

7 (ii) The change shall be apportioned equally against the remaining

8 payments for the fiscal year.

9 (10) (i) On or before September 15th of each year, the Chairman shall

10 compute the actual costs and expenses of the Commission for the preceding fiscal year.

11 (ii) After deducting the amounts recovered under § 2-111(a) of this

12 subtitle, on or before October 15th, the Chairman shall send to any public service

13 company that is affected a statement that shows the amount due or the amount to the

14 credit of the public service company.

15 (11) (i) A public service company shall pay an amount due within 30

16 days after the statement is received.

17 (ii) At the option of the public service company, an amount to the

18 credit of a public service company shall be refunded or applied against any succeeding

19 payment due.

20 (12) The total amount that may be charged to a public service company

21 under this section for a State fiscal year may not exceed:

22 (i) 0.17% of the public service company's gross operating revenues

23 derived from intrastate utility AND ELECTRICITY SUPPLIER'S operations in the

24 preceding calendar year, or other 12-month period that the Chairman determines, for

25 the costs and expenses of the Commission other than that of the Office of People's

26 Counsel; plus

27 (ii) 0.05% of those revenues for the costs and expenses of the Office of

28 People's Counsel.

29 [(c)] (D) (1) Within 30 days after the Commission issues a bill under

30 subsection [(b)] (C) of this section, the party billed may request a hearing as to the

31 amount of the bill.

32 (2) Any amount of a bill that is not paid within 30 days after the date of

33 determination on a hearing or, if a hearing is not requested, on the date when payment

34 is due, shall bear annual interest at a rate, not less than 6%, that the Commission sets

35 by regulation.

16 SENATE BILL 300

1 2-118.

2 (a) This section does not apply to taxicabs, power boat companies, toll bridges,

3 or towing and lightering companies.

4 (b) The Commission shall require each public service company subject to its

5 jurisdiction to formulate and, after approval by the Commission, to implement

6 long-range plans to provide REGULATED service.

7 (c) The Commission shall require each electric company in the State to include

8 in the long-range plan adequate, COST-EFFECTIVE provisions to promote energy

9 conservation to decrease or moderate electric and, as appropriate, natural gas demand

10 FOR REGULATED SERVICE from customers.

11 (d) (1) The Commission shall review each plan for adequacy under the

12 criteria of § 2-113 of this subtitle, giving attention to the interrelationship of services of

13 other public service companies and to provisions for research and development to

14 ensure adequate service.

15 (2) As part of the review, and subject to any applicable Freedom of

16 Information Act, the Commission shall consult with other State units and provide an

17 opportunity for public comment.

18 (3) The Commission shall require the revisions to a plan that the

19 Commission considers appropriate unless the authority to review and approve a plan

20 has been granted to another State unit by other law.

21 4-201.

22 In accordance with the provisions of this article, a public service company shall

23 charge just and reasonable rates for the [utility] REGULATED services that it renders.

24 4-202.

25 (a) A public service company shall file with the Commission a tariff schedule of

26 its rates and charges FOR ITS REGULATED SERVICES AND FOR STANDARD OFFER

27 SERVICE AS PROVIDED IN § 7-505(B)(8) OF THIS ARTICLE.

28 (b) As ordered by the Commission, a public service company shall:

29 (1) plainly print the tariff schedule of its rates and charges FOR ITS

30 REGULATED SERVICES;

31 (2) make available the tariff schedules for public inspection; and

32 (3) post the tariff schedules to make the tariff schedules readily accessible

33 to and convenient for inspection by the public.

17 SENATE BILL 300

1 7-201.

2 (a) [In cooperation with the Secretary of Natural Resources as provided under

3 § 3-304 of the Natural Resources Article, the Commission shall assemble and evaluate

4 annually the long-range plans of the State's electric companies regarding generating

5 needs and the means to meet those needs.

6 (b)] (1) Annually, the chairman of the Commission shall forward to the

7 Secretary of Natural Resources a 10-year plan listing possible and proposed sites,

8 including the associated transmission routes, for the construction of electric plants

9 within the State.

10 (2) (i) The chairman shall delete from the 10-year plan any site that

11 the Secretary of Natural Resources identifies as unsuitable in accordance with the

12 requirements of § 3-304 of the Natural Resources Article.

13 (ii) The chairman may include a site deleted from a 10-year plan

14 under subparagraph (i) of this paragraph in a subsequent 10-year plan.

15 (3) The chairman shall include information in the annual 10-year plan

16 on current and projected efforts by electric companies and the Commission to moderate

17 overall electrical generation demand and peak demand through the electric companies'

18 promotion of energy conservation by customers and through the electric companies' use

19 of alternative energy sources, including cogeneration.

20 [(c)] (B) (1) The Commission shall evaluate the cost-effectiveness of the

21 investments by electric companies in energy conservation to reduce electrical demand

22 and in renewable energy sources to help meet electrical demand.

23 (2) The evaluation of investments shall include:

24 (i) the electric companies' promotion and conduct of a building

25 audit and weatherization program, including low-interest or no-interest electric

26 company financing for the installation of energy conservation materials and renewable

27 energy devices;

28 (ii) utilization of renewable energy sources;

29 (iii) promotion and utilization of electricity from cogeneration and

30 wastes; and

31 (iv) widespread public promotion of energy conservation programs.

32 7-207.

33 (a) (1) In this section and § 7-208 of this subtitle, "construction" means the

34 clearing of land, excavation, or other action that affects the natural environment of a

35 site or route of a bulk power supply facility.

18 SENATE BILL 300

1 (2) "Construction" does not include a change that is needed for the

2 temporary use of a site or route for nonutility purposes or for use in securing geological

3 data, including any boring that is necessary to ascertain foundation conditions.

4 (b) [An electric company may not begin construction in the State of a

5 generating station or of an overhead transmission line that is designed to carry a

6 voltage in excess of 69,000 volts, or exercise the right of condemnation in connection

7 with the construction, unless a certificate of public convenience and necessity for the

8 construction is first obtained from the Commission.]

9 (1) UNLESS A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY

10 FOR THE CONSTRUCTION IS FIRST OBTAINED FROM THE COMMISSION, A PERSON

11 MAY NOT BEGIN CONSTRUCTION IN THE STATE OF A GENERATING STATION.

12 (2) UNLESS A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY

13 FOR THE CONSTRUCTION IS FIRST OBTAINED FROM THE COMMISSION, AND THE

14 COMMISSION HAS FOUND THAT THE CAPACITY IS NECESSARY TO ENSURE A

15 SUFFICIENT SUPPLY OF ELECTRICITY TO CUSTOMERS IN THE STATE, A PERSON MAY

16 NOT EXERCISE A RIGHT OF CONDEMNATION IN CONNECTION WITH THE

17 CONSTRUCTION OF A GENERATING STATION.

18 (3) UNLESS A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY

19 FOR THE CONSTRUCTION IS FIRST OBTAINED FROM THE COMMISSION, AN

20 ELECTRIC COMPANY MAY NOT BEGIN CONSTRUCTION OF AN OVERHEAD

21 TRANSMISSION LINE THAT IS DESIGNED TO CARRY A VOLTAGE IN EXCESS OF 69,000

22 VOLTS OR EXERCISE A RIGHT OF CONDEMNATION WITH THE CONSTRUCTION.

23 (c) (1) On receipt of an application for a certificate of public convenience and

24 necessity under this section, the Commission shall provide notice to the Office of

25 Planning and to all other interested persons.

26 (2) The Office of Planning shall forward the application to each

27 appropriate State unit and unit of local government for review, evaluation, and

28 comment regarding the significance of the proposal to State, area-wide, and local

29 plans or programs.

30 (d) (1) The Commission shall hold a public hearing on the application for a

31 certificate of public convenience and necessity in each county and municipal

32 corporation in which any portion of the construction of a generating station or of an

33 overhead transmission line designed to carry a voltage in excess of 69,000 volts is

34 proposed to be located.

35 (2) The Commission shall hold the public hearing jointly with the

36 governing body of the county or municipal corporation in which any portion of the

37 construction of the generating station or overhead transmission line is proposed to be

38 located, unless the governing body declines to participate in the hearing.

39 (3) Once in each of the 2 successive weeks immediately before the hearing

40 date, the Commission shall provide weekly notice of the public hearing by

19 SENATE BILL 300

1 advertisement in a newspaper of general circulation in the county or municipal

2 corporation affected by the application.

3 (4) (i) The Commission shall ensure presentation and

4 recommendations from each interested State unit, and shall allow representatives of

5 each State unit to sit during hearing of all parties.

6 (ii) The Commission shall allow each State unit 15 days after the

7 conclusion of the hearing to modify the State unit's initial recommendations.

8 (e) The Commission shall take final action on an application for a certificate of

9 public convenience and necessity only after due consideration of:

10 (1) the recommendation of the governing body of each county or

11 municipal corporation in which any portion of the construction of the generating

12 station or overhead transmission line is proposed to be located; AND

13 (2) [the need to meet existing and future demand for electric service; and

14 (3)] the effect of the generating station or overhead transmission line on:

15 (i) the stability and reliability of the electric system;

16 (ii) economics;

17 (iii) esthetics;

18 (iv) historic sites;

19 (v) aviation safety as determined by the Maryland Aviation

20 Administration and the administrator of the Federal Aviation Administration;

21 (vi) when applicable, air and water pollution; and

22 (vii) the availability of means for the required timely disposal of

23 wastes produced by any generating station.

24 (f) FOR THE CONSTRUCTION OF AN OVERHEAD TRANSMISSION LINE, IN

25 ADDITION TO THE CONSIDERATIONS LISTED IN SUBSECTION (E) OF THIS SECTION,

26 THE COMMISSION SHALL TAKE FINAL ACTION ON AN APPLICATION FOR A

27 CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY ONLY AFTER DUE

28 CONSIDERATION OF THE NEED TO MEET EXISTING AND FUTURE DEMAND FOR

29 ELECTRIC SERVICE.

30 (G) (1) The Commission may not authorize, and an electric company may not

31 undertake, the construction of an overhead transmission line that is aligned with and

32 within 1 mile of either end of a public airport runway, unless:

33 (i) the Federal Aviation Administration determines that the

34 construction of an overhead transmission line will not constitute a hazard to air

35 navigation; and

20 SENATE BILL 300

1 (ii) the Maryland Aviation Administration concurs in that

2 determination.

3 (2) A privately owned airport runway shall qualify as a public airport

4 runway under this subsection only if the runway has been on file with the Federal

5 Aviation Administration for at least 2 years as being open to the public without

6 restriction.

7 7-211.

8 (a) Subject to review and approval by the Commission, each gas company and

9 electric company shall develop and implement programs and services to encourage and

10 promote the efficient use and conservation of energy by consumers, gas companies, and

11 electric companies.

12 (b) The Commission shall:

13 (1) require each gas company and electric company to establish any

14 program or service that the Commission deems appropriate and cost effective to

15 encourage and promote the efficient use and conservation of energy; [and]

16 (2) adopt rate-making policies that provide cost recovery and, in

17 appropriate circumstances, reasonable financial incentives for gas companies and

18 electric companies to establish programs and services that encourage and promote the

19 efficient use and conservation of energy[.]; AND

20 (3) ENSURE THAT ADOPTION OF ELECTRIC CUSTOMER CHOICE UNDER

21 SUBTITLE 5 OF THIS TITLE DOES NOT ADVERSELY IMPACT THE CONTINUATION OF

22 COST EFFECTIVE ENERGY CONSERVATION AND EFFICIENCY PROGRAMS.

23 (C) (1) ON OR BEFORE FEBRUARY 1, 2001, THE COMMISSION, IN

24 CONSULTATION WITH THE MARYLAND ENERGY ADMINISTRATION, SHALL REPORT,

25 SUBJECT TO § 2-1246 OF THE STATE GOVERNMENT ARTICLE, TO THE GENERAL

26 ASSEMBLY ON:

27 (I) THE STATUS OF PROGRAMS AND SERVICES TO ENCOURAGE

28 AND PROMOTE THE EFFICIENT USE AND CONSERVATION OF ENERGY; AND

29 (II) A RECOMMENDATION FOR THE APPROPRIATE FUNDING LEVEL

30 TO ADEQUATELY FUND THESE PROGRAMS AND SERVICES.

31 (2) IN DETERMINING WHETHER A PROGRAM OR SERVICE ENCOURAGES

32 AND PROMOTES THE EFFICIENT USE AND CONSERVATION OF ENERGY, THE

33 COMMISSION SHALL CONSIDER, AMONG OTHER FACTORS:

34 (I) THE IMPACT ON JOBS;

35 (II) THE IMPACT ON THE ENVIRONMENT;

36 (III) THE IMPACT ON RATES; AND

21 SENATE BILL 300

1 (IV) THE COST-EFFECTIVENESS.

2 SUBTITLE 5. ELECTRIC INDUSTRY RESTRUCTURING.

3 PART I. GENERAL PROVISIONS.

4 7-501.

5 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS

6 INDICATED.

7 (B) "AFFILIATE" MEANS A PERSON THAT DIRECTLY OR INDIRECTLY, OR

8 THROUGH ONE OR MORE INTERMEDIARIES, CONTROLS, IS CONTROLLED BY, OR IS

9 UNDER COMMON CONTROL WITH, OR HAS, DIRECTLY OR INDIRECTLY, ANY

10 ECONOMIC INTEREST IN ANOTHER PERSON.

11 (C) (1) "ASSIGNEE" MEANS A PERSON TO WHOM AN ELECTRIC COMPANY

12 ASSIGNS OR TRANSFERS ALL OR A PORTION OF ITS INTEREST IN INTANGIBLE

13 TRANSITION PROPERTY, OTHER THAN AS SECURITY.

14 (2) "ASSIGNEE" INCLUDES A PERSON TO WHOM ALL OR A PORTION OF

15 THE INTEREST IS SUBSEQUENTLY ASSIGNED OR TRANSFERRED.

16 (D) "COMPETITIVE TRANSITION CHARGE" MEANS A RATE, CHARGE, CREDIT,

17 OR OTHER APPROPRIATE MECHANISM AUTHORIZED TO BE IMPOSED FOR THE

18 RECOVERY OF TRANSITION COSTS AS DETERMINED BY THE COMMISSION UNDER §

19 7-513 OF THIS SUBTITLE.

20 (E) "CONSUMER" AND "CUSTOMER" EACH MEANS A RETAIL ELECTRIC

21 CUSTOMER.

22 (F) "CUSTOMER CHOICE" MEANS THE RIGHT OF ELECTRICITY SUPPLIERS

23 AND CUSTOMERS TO UTILIZE AND INTERCONNECT WITH THE ELECTRIC

24 DISTRIBUTION SYSTEM ON A NONDISCRIMINATORY BASIS AT RATES, TERMS, AND

25 CONDITIONS OF SERVICE COMPARABLE TO THE ELECTRIC COMPANY'S OWN USE OF

26 THE SYSTEM TO DISTRIBUTE ELECTRICITY FROM A ELECTRICITY SUPPLIER TO A

27 CUSTOMER, UNDER WHICH A CUSTOMER HAS THE OPPORTUNITY TO PURCHASE

28 ELECTRICITY FROM THE CUSTOMER'S CHOICE OF LICENSED ELECTRICITY

29 SUPPLIERS.

30 (G) "DISTRIBUTION TERRITORY" MEANS THE GEOGRAPHIC AREA IN WHICH AN

31 ELECTRIC COMPANY WAS PROVIDING ELECTRIC TRANSMISSION OR DISTRIBUTION

32 SERVICES TO CUSTOMERS ON JULY 1, 1999.

33 (H) "INDEPENDENT SYSTEM OPERATOR" MEANS AN ENTITY AUTHORIZED BY

34 THE FEDERAL ENERGY REGULATORY COMMISSION TO CONTROL A REGIONAL

35 TRANSMISSION GRID.

36 (I) "INITIAL IMPLEMENTATION DATE" MEANS:

22 SENATE BILL 300

1 (1) JULY 1, 2000, FOR INVESTOR-OWNED ELECTRIC COMPANIES;

2 (2) THE DATE OR DATES DETERMINED BY THE COMMISSION FOR

3 ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC UTILITIES; OR

4 (3) ANOTHER DATE OR DATES DETERMINED BY THE COMMISSION

5 UNDER § 7-510(B) OF THIS SUBTITLE.

6 (J) "INTANGIBLE TRANSITION CHARGE" MEANS A NONBYPASSABLE RATE,

7 CHARGE, OR SIMILAR APPROPRIATE MECHANISM FOR THE PROVISION,

8 AVAILABILITY, OR TERMINATION OF ELECTRIC SERVICE, AUTHORIZED TO BE

9 IMPOSED FOR THE RECOVERY OF QUALIFIED TRANSITION COSTS UNDER A

10 QUALIFIED RATE ORDER OF THE COMMISSION.

11 (K) "INTANGIBLE TRANSITION PROPERTY" MEANS THE RIGHT, TITLE, AND

12 INTEREST OF AN ELECTRIC COMPANY OR ASSIGNEE IN A QUALIFIED RATE ORDER,

13 INCLUDING:

14 (1) ALL RIGHTS IN, TO, AND UNDER THE ORDER, INCLUDING RIGHTS TO

15 REVENUES, COLLECTIONS, CLAIMS, PAYMENTS, MONEY, OR OTHER PROPERTY AND

16 AMOUNTS ARISING FROM THE IMPOSITION OF INTANGIBLE TRANSITION CHARGES

17 UNDER THE ORDER; AND

18 (2) IN THE HANDS OF AN ASSIGNEE:

19 (I) THE RIGHT TO REQUIRE THE ELECTRIC COMPANY TO PROVIDE

20 ELECTRIC SERVICES, AND TO COLLECT AND REMIT THE INTANGIBLE TRANSITION

21 CHARGES AUTHORIZED IN THE QUALIFIED RATE ORDER; BUT

22 (II) NOT THE RIGHT OR DUTY TO PROVIDE ELECTRIC SERVICES.

23 (L) (1) "PUBLIC PURPOSE PROGRAM" MEANS A PROGRAM IMPLEMENTED

24 WITH THE INTENTION OF FURTHERING A PUBLIC PURPOSE.

25 (2) "PUBLIC PURPOSE PROGRAM" INCLUDES:

26 (I) A UNIVERSAL SERVICE PROGRAM;

27 (II) A PROGRAM ENCOURAGING RENEWABLE ENERGY RESOURCES;

28 (III) A DEMAND SIDE MANAGEMENT OR OTHER ENERGY

29 EFFICIENCY OR CONSERVATION PROGRAM; AND

30 (IV) A CONSUMER EDUCATION PROGRAM.

31 (M) "QUALIFIED RATE ORDER" MEANS AN ORDER OF THE COMMISSION

32 APPROVING ONE OR MORE INTANGIBLE TRANSITION CHARGES.

33 (N) "STANDARD OFFER SERVICE" MEANS ELECTRIC SERVICE THAT AN

34 ELECTRIC COMPANY MUST OFFER TO ITS CUSTOMERS UNDER § 7-510(C) OF THIS

35 SUBTITLE.

23 SENATE BILL 300

1 (O) "TRANSITION BOND" MEANS A BOND, DEBENTURE, NOTE, CERTIFICATE

2 OF PARTICIPATION OR BENEFICIAL INTEREST, OR OTHER EVIDENCE OF

3 INDEBTEDNESS OR OWNERSHIP, APPROVED IN A QUALIFIED RATE ORDER AND

4 ISSUED UNDER AN EXECUTED TRUST INDENTURE OR OTHER AGREEMENT OF AN

5 ELECTRIC COMPANY OR ASSIGNEE, AND WHICH IS SECURED BY, EVIDENCES

6 OWNERSHIP INTEREST IN, OR IS PAYABLE FROM INTANGIBLE TRANSITION

7 PROPERTY.

8 (P) "TRANSITION COST" MEANS A COST, LIABILITY, OR INVESTMENT THAT:

9 (1) TRADITIONALLY WOULD HAVE BEEN OR WOULD BE RECOVERABLE

10 UNDER RATE-OF-RETURN REGULATION, BUT WHICH MAY NOT BE RECOVERABLE IN

11 A RESTRUCTURED ELECTRICITY SUPPLY MARKET; OR

12 (2) ARISES AS A RESULT OF ELECTRIC INDUSTRY RESTRUCTURING AND

13 IS RELATED TO THE CREATION OF CUSTOMER CHOICE.

14 (Q) (1) "UNIVERSAL SERVICE PROGRAM" MEANS A PROGRAM THAT HELPS

15 LOW-INCOME CUSTOMERS MAINTAIN ELECTRIC SERVICE.

16 (2) "UNIVERSAL SERVICE PROGRAM" INCLUDES CUSTOMER BILL

17 ASSISTANCE AND PAYMENT PROGRAMS, TERMINATION OF SERVICE PROTECTION,

18 AND POLICIES AND SERVICES THAT HELP LOW-INCOME CUSTOMERS TO REDUCE OR

19 MANAGE ENERGY CONSUMPTION IN A COST-EFFECTIVE MANNER.

20 7-502. RESERVED.

21 7-503. RESERVED.

22 PART II. ELECTRIC INDUSTRY RESTRUCTURING ENABLED.

23 7-504.

24 THE GENERAL ASSEMBLY FINDS AND DECLARES THAT THE PURPOSE OF THIS

25 SUBTITLE IS TO:

26 (1) ESTABLISH CUSTOMER CHOICE OF ELECTRICITY SUPPLY AND

27 ELECTRICITY SUPPLY SERVICES;

28 (2) CREATE COMPETITIVE RETAIL ELECTRICITY SUPPLY AND

29 ELECTRICITY SUPPLY SERVICES MARKETS;

30 (3) DEREGULATE THE GENERATION, SUPPLY, AND PRICING OF

31 ELECTRICITY;

32 (4) PROVIDE ECONOMIC BENEFITS FOR ALL CUSTOMER CLASSES; AND

33 (5) ENSURE COMPLIANCE WITH FEDERAL AND STATE ENVIRONMENTAL

34 STANDARDS.

24 SENATE BILL 300

1 7-505.

2 (A) (1) IN ASSESSING AND APPROVING EACH ELECTRIC COMPANY'S

3 RESTRUCTURING PLAN, AND OVERSEEING THE TRANSITION PROCESS AND

4 REGULATION OF THE RESTRUCTURED ELECTRIC INDUSTRY, THE COMMISSION

5 SHALL PROVIDE THAT THE TRANSITION TO A COMPETITIVE ELECTRICITY SUPPLY

6 AND ELECTRICITY SUPPLY SERVICES MARKET SHALL BE ORDERLY, MAINTAIN

7 ELECTRIC SYSTEM RELIABILITY, AND ENSURE COMPLIANCE WITH FEDERAL AND

8 STATE ENVIRONMENTAL REGULATIONS, BE FAIR TO CUSTOMERS, ELECTRIC

9 COMPANY INVESTORS, CUSTOMERS OF MUNICIPAL ELECTRIC UTILITIES, ELECTRIC

10 COMPANIES, AND ELECTRICITY SUPPLIERS, AND PROVIDE ECONOMIC BENEFITS TO

11 ALL CUSTOMER CLASSES.

12 (2) THE COMMISSION SHALL CONSIDER THE RESTRUCTURING PLANS

13 OF MUNICIPAL ELECTRIC UTILITIES, AS SPECIFIED UNDER § 7-510 OF THIS

14 SUBTITLE.

15 (B) (1) THE COMMISSION SHALL ISSUE THE ORDERS OR ADOPT THE

16 REGULATIONS REQUIRED UNDER THIS SUBSECTION BEFORE THE

17 IMPLEMENTATION OF CUSTOMER CHOICE.

18 (2) THE COMMISSION SHALL ORDER A UNIVERSAL SERVICE PROGRAM,

19 TO BE MADE AVAILABLE ON A STATEWIDE BASIS, TO BENEFIT LOW-INCOME

20 CUSTOMERS, IN ACCORDANCE WITH § 7-512.1 OF THIS SUBTITLE.

21 (3) THE COMMISSION SHALL ORDER AN ELECTRIC COMPANY TO ADOPT

22 POLICIES AND PRACTICES REASONABLY DESIGNED TO PREVENT:

23 (I) DISCRIMINATION AGAINST A PERSON, LOCALITY, OR

24 PARTICULAR CLASS OF SERVICE OR GIVE UNDUE OR UNREASONABLE PREFERENCE

25 IN FAVOR OF THE ELECTRIC COMPANY'S OWN ELECTRICITY SUPPLY, OTHER

26 SERVICES, DIVISIONS, OR AFFILIATES, IF ANY; AND

27 (II) ANY OTHER FORMS OF SELF-DEALING OR PRACTICES THAT

28 COULD RESULT IN NONCOMPETITIVE ELECTRICITY PRICES TO CUSTOMERS.

29 (4) (I) THE COMMISSION SHALL, BY REGULATION OR ORDER,

30 REQUIRE EACH ELECTRIC COMPANY AND ELECTRICITY SUPPLIER TO PROVIDE

31 ADEQUATE AND ACCURATE INFORMATION TO EACH CUSTOMER ON THE AVAILABLE

32 ELECTRIC SERVICES OF THE ELECTRIC COMPANY OR ELECTRICITY SUPPLIER,

33 INCLUDING DISCLOSURE, EVERY 6 MONTHS, OF A UNIFORM COMMON SET OF

34 INFORMATION ABOUT:

35 1. THE FUEL MIX OF THE ELECTRICITY PURCHASED BY

36 CUSTOMERS, INCLUDING CATEGORIES OF ELECTRICITY FROM COAL, NATURAL GAS,

37 NUCLEAR, OIL, HYDROELECTRIC, SOLAR, BIOMASS, WIND, AND OTHER RESOURCES,

38 OR DISCLOSURE OF A REGIONAL FUEL MIX AVERAGE; AND

25 SENATE BILL 300

1 2. THE EMISSIONS, ON A POUND PER MEGAWATT-HOUR

2 BASIS, OF POLLUTANTS IDENTIFIED BY THE COMMISSION, OR DISCLOSURE OF A

3 REGIONAL FUEL MIX AVERAGE.

4 (II) THE COMMISSION MAY REQUIRE AN ELECTRIC COMPANY OR

5 AN ELECTRICITY SUPPLIER TO PROVIDE DOCUMENTATION SUPPORTING THE

6 DISCLOSURES REQUIRED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH.

7 (5) (I) THE COMMISSION SHALL, BY REGULATION OR ORDER,

8 REQUIRE THE UNBUNDLING OF ELECTRIC COMPANY RATES, CHARGES, AND

9 SERVICES INTO STANDARDIZED CATEGORIES DETERMINED BY THE COMMISSION.

10 (II) THE COMMISSION SHALL, BY REGULATION OR ORDER,

11 REQUIRE THAT CUSTOMERS' BILLS FOR ELECTRICITY SERVICE INDICATE CHARGES

12 FOR:

13 1. DISTRIBUTION AND TRANSMISSION;

14 2. TRANSITION CHARGE OR CREDIT;

15 3. UNIVERSAL SERVICE PROGRAM CHARGES;

16 4. CUSTOMER CHARGES;

17 5. TAXES; AND

18 6. OTHER CHARGES IDENTIFIED BY THE COMMISSION.

19 (6) THE COMMISSION SHALL ISSUE ORDERS OR REGULATIONS TO

20 PREVENT AN ELECTRIC COMPANY AND AN ELECTRICITY SUPPLIER FROM

21 DISCLOSING A RETAIL ELECTRIC CUSTOMER'S BILLING, PAYMENT, AND CREDIT

22 INFORMATION WITHOUT THE RETAIL ELECTRIC CUSTOMER'S CONSENT, EXCEPT AS

23 ALLOWED BY THE COMMISSION FOR BILL COLLECTION OR CREDIT RATING

24 REPORTING PURPOSES.

25 (7) AN ELECTRICITY SUPPLIER MAY NOT ENGAGE IN MARKETING,

26 ADVERTISING, OR TRADE PRACTICES THAT ARE UNFAIR, FALSE, MISLEADING, OR

27 DECEPTIVE.

28 (8) THE COMMISSION SHALL DETERMINE THE TERMS, CONDITIONS,

29 AND RATES OF STANDARD OFFER SERVICE IN ACCORDANCE WITH:

30 (I) TITLE 4 OF THIS ARTICLE; OR

31 (II) AS APPLICABLE, § 7-510(C)(3)(II) OF THIS SUBTITLE.

32 (9) IN CONNECTION WITH § 7-513 OF THIS SUBTITLE, THE COMMISSION

33 MAY NOT REQUIRE AN ELECTRIC COMPANY TO DIVEST ITSELF OF A GENERATION

34 ASSET OR PROHIBIT AN ELECTRIC COMPANY FROM DIVESTING ITSELF

35 VOLUNTARILY OF A GENERATION ASSET.

26 SENATE BILL 300

1 (10) (I) ON OR BEFORE JULY 1, 2000, THE COMMISSION SHALL ISSUE

2 ORDERS OR ADOPT REGULATIONS REASONABLY DESIGNED TO ENSURE THE

3 CREATION OF COMPETITIVE ELECTRICITY SUPPLY AND ELECTRICITY SUPPLY

4 SERVICES MARKETS, WITH APPROPRIATE CUSTOMER SAFEGUARDS.

5 (II) ON OR BEFORE JULY 1, 2000, THE COMMISSION SHALL

6 REQUIRE:

7 1. AN APPROPRIATE CODE OF CONDUCT BETWEEN THE

8 ELECTRIC COMPANY AND AN AFFILIATE PROVIDING ELECTRICITY SUPPLY AND

9 ELECTRICITY SUPPLY SERVICES IN THE STATE;

10 2. ACCESS BY ELECTRICITY SUPPLIERS AND CUSTOMERS TO

11 THE ELECTRIC COMPANY'S TRANSMISSION AND DISTRIBUTION SYSTEM ON A

12 NONDISCRIMINATORY BASIS;

13 3. APPROPRIATE COMPLAINT AND ENFORCEMENT

14 PROCEDURES; AND

15 4. ANY OTHER SAFEGUARDS DEEMED NECESSARY BY THE

16 COMMISSION TO ENSURE THE CREATION AND MAINTENANCE OF A COMPETITIVE

17 ELECTRICITY SUPPLY AND ELECTRICITY SUPPLY SERVICES MARKET.

18 (III) ON OR BEFORE JULY 1, 2000, THE COMMISSION SHALL

19 REQUIRE, AMONG OTHER FACTORS, FUNCTIONAL, OPERATIONAL, STRUCTURAL, OR

20 LEGAL SEPARATION BETWEEN THE ELECTRIC COMPANY'S REGULATED BUSINESSES

21 AND ITS NONREGULATED BUSINESSES OR NONREGULATED AFFILIATES.

22 (11) NOTHING IN THIS TITLE MAY BE CONSTRUED AS PREVENTING THE

23 APPLICATION OF STATE AND FEDERAL CONSUMER PROTECTION AND ANTITRUST

24 LAWS TO ELECTRIC COMPANIES AND THEIR AFFILIATES, AND TO ELECTRICITY

25 SUPPLIERS.

26 (12) THE COMMISSION, IN CONSULTATION WITH THE DEPARTMENT OF

27 THE ENVIRONMENT, SHALL ADOPT APPROPRIATE MEASURES TO MAINTAIN

28 ENVIRONMENTAL STANDARDS, ADAPT EXISTING PROGRAMS, AND DEVELOP NEW

29 PROGRAMS AS APPROPRIATE TO ENSURE COMPLIANCE WITH FEDERAL AND STATE

30 ENVIRONMENTAL PROTECTION STANDARDS.

31 (13) (I) AN ELECTRIC COMPANY SHALL COMPLY WITH ALL

32 REQUIREMENTS OF THE COMMISSION IN CONDUCTING REGULATED OPERATIONS IN

33 COMPLIANCE WITH THIS ARTICLE.

34 (II) THE COMMISSION SHALL REQUIRE EACH ELECTRIC COMPANY

35 TO ADOPT A CODE OF CONDUCT TO BE APPROVED BY THE COMMISSION BY A DATE

36 TO BE DETERMINED BY THE COMMISSION TO PREVENT REGULATED SERVICE

37 CUSTOMERS FROM SUBSIDIZING THE SERVICES OF UNREGULATED BUSINESSES OR

38 AFFILIATES OF THE ELECTRIC COMPANY.

27 SENATE BILL 300

1 (C) (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, INCLUDING

2 SUBSECTION (D) OF THIS SECTION, THE COMMISSION MAY REGULATE THE

3 REGULATED SERVICES OF AN ELECTRIC COMPANY THROUGH ALTERNATIVE FORMS

4 OF REGULATION.

5 (2) THE COMMISSION MAY ADOPT AN ALTERNATIVE FORM OF

6 REGULATION UNDER THIS SECTION IF THE COMMISSION FINDS, AFTER NOTICE AND

7 HEARING, THAT THE ALTERNATIVE FORM OF REGULATION:

8 (I) PROTECTS CONSUMERS;

9 (II) ENSURES THE QUALITY, AVAILABILITY, AND RELIABILITY OF

10 REGULATED ELECTRIC SERVICES; AND

11 (III) IS IN THE INTEREST OF THE PUBLIC, INCLUDING

12 SHAREHOLDERS OF THE ELECTRIC COMPANY.

13 (3) ALTERNATIVE FORMS OF REGULATION MAY INCLUDE:

14 (I) PRICE REGULATION, INCLUDING PRICE FREEZES OR CAPS;

15 (II) REVENUE REGULATION;

16 (III) RANGES OF AUTHORIZED RETURN;

17 (IV) RATE OF RETURN;

18 (V) CATEGORIES OF SERVICES; OR

19 (VI) PRICE-INDEXING.

20 (D) (1) THE COMMISSION SHALL CAP, FOR 4 YEARS AFTER INITIAL

21 IMPLEMENTATION OF CUSTOMER CHOICE IN THE ELECTRIC COMPANY'S

22 DISTRIBUTION TERRITORY, THE TOTAL OF THE RATES OF AN ELECTRIC COMPANY

23 CHARGED TO A RETAIL ELECTRIC CUSTOMER AT THE ACTUAL LEVEL OF THE RATES

24 IN EFFECT OR AUTHORIZED BY THE COMMISSION ON THE DATE IMMEDIATELY

25 PRECEDING THE INITIAL IMPLEMENTATION OF CUSTOMER CHOICE IN THE

26 ELECTRIC COMPANY'S DISTRIBUTION TERRITORY.

27 (2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS

28 PARAGRAPH, THE CAP REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION DOES

29 NOT APPLY TO THE RECOVERY OF COSTS ADDED AFTER JANUARY 1, 2000, IN

30 ACCORDANCE WITH § 7-512(C) OF THIS SUBTITLE.

31 (II) THE CAP REQUIRED UNDER PARAGRAPH (1) OF THIS

32 SUBSECTION APPLIES TO THE RECOVERY OF:

33 1. ANY TRANSITION COSTS UNDER § 7-513 OF THIS

34 SUBTITLE;

28 SENATE BILL 300

1 2. ANY COSTS INCLUDED IN RATES ON JANUARY 1, 2000, IN

2 ACCORDANCE WITH § 7-512(C) OF THIS SUBTITLE; AND

3 3. COSTS FOR THE UNIVERSAL SERVICE PROGRAM

4 ESTABLISHED UNDER § 7-512.1 OF THIS SUBTITLE.

5 (3) AS PART OF A SETTLEMENT, THE COMMISSION MAY APPROVE A CAP

6 FOR A DIFFERENT TIME PERIOD OR AN ALTERNATIVE PRICE PROTECTION PLAN

7 THAT THE COMMISSION DETERMINES IS EQUALLY PROTECTIVE OF RATEPAYERS.

8 (4) (I) 1. SUBJECT TO THE PROVISIONS OF PARAGRAPH (5) OF THIS

9 SUBSECTION, THE COMMISSION SHALL REDUCE RESIDENTIAL RATES FOR EACH

10 INVESTOR-OWNED ELECTRIC COMPANY BY AN AMOUNT BETWEEN 3% AND 7.5% OF

11 BASE RATES, AS MEASURED ON JUNE 30, 1999.

12 2. THE REDUCTION REQUIRED UNDER SUB-SUBPARAGRAPH

13 1 OF THIS SUBPARAGRAPH SHALL BEGIN ON THE INITIAL IMPLEMENTATION DATE

14 AND REMAIN IN EFFECT FOR 4 YEARS.

15 3. THE COMMISSION SHALL DETERMINE THE ALLOCATION

16 OF THE RATE REDUCTION AMONG THE GENERATION, TRANSMISSION, AND

17 DISTRIBUTION RESIDENTIAL RATE COMPONENTS.

18 (II) IN ACHIEVING THE RATE REDUCTION REQUIRED UNDER

19 SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE COMMISSION SHALL CONSIDER:

20 1. THE EXPIRATION OF ANY SURCHARGE;

21 2. CHANGES IN THE ELECTRIC COMPANY'S TAX LIABILITY;

22 3. COST OF SERVICE DETERMINATIONS ORDERED BY THE

23 COMMISSION;

24 4. NET TRANSITION COSTS OR BENEFITS;

25 5. THE EFFECT ON THE COMPETITIVE ELECTRICITY SUPPLY

26 MARKET;

27 6. WHETHER THE RATE REDUCTION AND RATE CAP WILL

28 UNDULY IMPAIR THE ELECTRIC COMPANY'S FINANCIAL CONDITION;

29 7. THE COSTS ASSOCIATED WITH THE UNIVERSAL SERVICE

30 PROGRAM; AND

31 8. THE INTERESTS OF THE PUBLIC, INCLUDING

32 SHAREHOLDERS OF THE ELECTRIC COMPANY.

33 (III) THE COMMISSION MAY, WITHIN THE PARAMETERS PROVIDED

34 IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, INCREASE OR DECREASE THE ACTUAL

35 RATE REDUCTION REQUIRED.

29 SENATE BILL 300

1 (IV) THE COMMISSION MAY ALLOW THE RECOVERY OF ANY

2 EXTRAORDINARY COSTS BASED ON THE CIRCUMSTANCES OF AN INDIVIDUAL

3 ELECTRIC COMPANY IF THE COMMISSION DETERMINES THAT THE ACTION IS

4 NECESSARY AND IN THE PUBLIC INTEREST.

5 (V) IN DETERMINING THE RATE REDUCTION REQUIRED UNDER

6 SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE COMMISSION MAY NOT INCREASE

7 RATES FOR NONRESIDENTIAL CUSTOMERS.

8 (5) THE REQUIREMENTS OF PARAGRAPH (4) OF THIS SUBSECTION DO

9 NOT APPLY TO AN ELECTRIC COMPANY IF THE COMMISSION APPROVES OR HAS IN

10 EFFECT A SETTLEMENT THAT THE COMMISSION DETERMINES IS EQUALLY

11 PROTECTIVE OF RATEPAYERS.

12 (E) (1) THE COMMISSION SHALL ASSESS THE AMOUNT OF ELECTRICITY

13 GENERATED IN MARYLAND AS WELL AS THE AMOUNT OF ELECTRICITY IMPORTED

14 FROM OTHER STATES IN ORDER TO DETERMINE WHETHER A SUFFICIENT SUPPLY

15 OF ELECTRICITY IS AVAILABLE TO CUSTOMERS IN THE STATE.

16 (2) ON OR BEFORE JANUARY 1 IN 2001, 2003, 2005, AND 2007, THE

17 COMMISSION SHALL REPORT TO THE GENERAL ASSEMBLY IN ACCORDANCE WITH §

18 2-1246 OF THE STATE GOVERNMENT ARTICLE ON ITS ASSESSMENT UNDER THIS

19 SUBSECTION, AND ANY RECOMMENDATIONS FOR LEGISLATION WHICH MAY BE

20 NEEDED TO ENSURE AN ADEQUATE SUPPLY OF ELECTRICITY FOR CUSTOMERS IN

21 THE STATE.

22 (F) (1) THE COMMISSION SHALL ISSUE THE ORDERS OR ADOPT THE

23 REGULATIONS REQUIRED UNDER THIS SUBSECTION BEFORE THE

24 IMPLEMENTATION OF CUSTOMER CHOICE.

25 (2) THE COMMISSION SHALL ORDER EACH ELECTRIC COMPANY, IN

26 CONJUNCTION WITH THE COMMISSION, THE OFFICE OF PEOPLE'S COUNSEL, AND

27 OTHER PARTIES, TO IMPLEMENT A CONSUMER EDUCATION PROGRAM INFORMING

28 CUSTOMERS OF CHANGES IN THE ELECTRIC INDUSTRY.

29 (3) ANY BOARD OR GROUP CREATED UNDER PARAGRAPH (2) OF THIS

30 SUBSECTION SHALL INCLUDE AT LEAST 2 MEMBERS OF THE PUBLIC.

31 (4) (I) AS PART OF THE CONSUMER EDUCATION PROGRAM UNDER

32 THIS SUBSECTION, THE DIVISION OF CONSUMER PROTECTION OF THE OFFICE OF

33 THE ATTORNEY GENERAL SHALL DEVELOP AND MAINTAIN INFORMATION

34 REGARDING RATES AND SERVICES FOR SMALL COMMERCIAL AND RESIDENTIAL

35 ELECTRIC CUSTOMERS OF LICENSED ELECTRICITY SUPPLIERS.

36 (II) THE INFORMATION REQUIRED IN THIS PARAGRAPH SHALL BE:

37 1. READILY UNDERSTANDABLE AND FORMATTED TO

38 PROVIDE A COMPARISON OF RATES AND SERVICES AMONG ELECTRICITY SUPPLIERS

39 OF SIMILAR SERVICES; AND

30 SENATE BILL 300

1 2. MADE AVAILABLE TO THE PUBLIC THROUGH THE

2 ORDINARY MEANS OF PUBLICATION OF THE DIVISION OF CONSUMER PROTECTION

3 OF THE OFFICE OF THE ATTORNEY GENERAL, INCLUDING POSTING ON THE

4 INTERNET.

5 (5) THIS SUBSECTION SHALL BE OF NO FORCE AND EFFECT AFTER

6 JUNE 30, 2002.

7 7-506.

8 (A) THE ELECTRIC COMPANY IN A DISTRIBUTION TERRITORY SHALL PROVIDE

9 AND BE RESPONSIBLE FOR DISTRIBUTION SERVICES IN THE TERRITORY.

10 (B) THE ELECTRIC COMPANY SHALL PROVIDE DISTRIBUTION SERVICES IN

11 ITS DISTRIBUTION TERRITORY TO ALL CUSTOMERS AND ELECTRICITY SUPPLIERS

12 ON RATES, TERMS OF ACCESS, AND CONDITIONS THAT ARE COMPARABLE TO THE

13 ELECTRIC COMPANY'S OWN USE OF ITS DISTRIBUTION SYSTEM.

14 (C) EACH ELECTRIC COMPANY SHALL MAINTAIN THE RELIABILITY OF ITS

15 DISTRIBUTION SYSTEM IN ACCORDANCE WITH APPLICABLE ORDERS, TARIFFS, AND

16 REGULATIONS OF THE COMMISSION.

17 (D) THE ELECTRIC COMPANY SHALL CONNECT CUSTOMERS AND DELIVER

18 ELECTRICITY ON BEHALF OF ELECTRICITY SUPPLIERS CONSISTENT WITH THE

19 PROVISIONS OF THIS ARTICLE.

20 (E) THE ELECTRIC COMPANY SHALL PROVIDE STANDARD OFFER SERVICE

21 UNDER § 7-510(C) OF THIS SUBTITLE.

22 7-507.

23 (A) A PERSON, OTHER THAN AN ELECTRIC COMPANY PROVIDING STANDARD

24 OFFER SERVICE UNDER § 7-510(C) OF THIS SUBTITLE OR A MUNICIPAL ELECTRIC

25 UTILITY SERVING CUSTOMERS SOLELY IN ITS DISTRIBUTION TERRITORY, MAY NOT

26 ENGAGE IN THE BUSINESS OF AN ELECTRICITY SUPPLIER IN THE STATE UNLESS

27 THE PERSON HOLDS A LICENSE ISSUED BY THE COMMISSION.

28 (B) AN APPLICATION FOR AN ELECTRICITY SUPPLIER LICENSE SHALL:

29 (1) BE MADE TO THE COMMISSION IN WRITING ON A FORM ADOPTED BY

30 THE COMMISSION;

31 (2) BE VERIFIED BY OATH OR AFFIRMATION; AND

32 (3) CONTAIN INFORMATION THAT THE COMMISSION REQUIRES,

33 INCLUDING:

34 (I) PROOF OF TECHNICAL AND MANAGERIAL COMPETENCE;

35 (II) PROOF OF COMPLIANCE WITH ALL APPLICABLE

36 REQUIREMENTS OF THE FEDERAL ENERGY REGULATORY COMMISSION, AND ANY

31 SENATE BILL 300

1 INDEPENDENT SYSTEM OPERATOR OR REGIONAL OR SYSTEM TRANSMISSION

2 OPERATOR TO BE USED BY THE LICENSEE;

3 (III) A CERTIFICATION OF COMPLIANCE WITH APPLICABLE

4 FEDERAL AND STATE ENVIRONMENTAL LAWS AND REGULATIONS THAT RELATE TO

5 THE GENERATION OF ELECTRICITY; AND

6 (IV) PAYMENT OF THE APPLICABLE LICENSING FEE.

7 (C) THE COMMISSION SHALL, BY REGULATION OR ORDER:

8 (1) REQUIRE PROOF OF FINANCIAL INTEGRITY;

9 (2) REQUIRE A LICENSEE TO POST A BOND OR OTHER SIMILAR

10 INSTRUMENT, IF, IN THE COMMISSION'S JUDGMENT, THE BOND OR SIMILAR

11 INSTRUMENT IS NECESSARY TO INSURE AN ELECTRICITY SUPPLIER'S FINANCIAL

12 INTEGRITY;

13 (3) REQUIRE A LICENSEE TO:

14 (I) PROVIDE PROOF THAT IT IS QUALIFIED TO DO BUSINESS IN

15 THE STATE WITH THE DEPARTMENT OF ASSESSMENTS AND TAXATION; AND

16 (II) AGREE TO BE SUBJECT TO ALL APPLICABLE TAXES; AND

17 (4) ADOPT ANY OTHER REQUIREMENTS IT FINDS TO BE IN THE PUBLIC

18 INTEREST, WHICH MAY INCLUDE DIFFERENT REQUIREMENTS FOR:

19 (I) ELECTRICITY SUPPLIERS THAT SERVE ONLY LARGE

20 CUSTOMERS; AND

21 (II) THE DIFFERENT CATEGORIES OF ELECTRICITY SUPPLIERS.

22 (D) A LICENSE ISSUED UNDER THIS SECTION MAY NOT BE TRANSFERRED

23 WITHOUT PRIOR COMMISSION APPROVAL.

24 (E) THE COMMISSION SHALL ADOPT REGULATIONS OR ISSUE ORDERS TO:

25 (1) PROTECT CONSUMERS, ELECTRIC COMPANIES, AND ELECTRICITY

26 SUPPLIERS FROM ANTICOMPETITIVE AND ABUSIVE PRACTICES;

27 (2) REQUIRE EACH ELECTRICITY SUPPLIER TO PROVIDE, IN ADDITION

28 TO THE REQUIREMENTS UNDER § 7-505(B)(5) OF THIS SUBTITLE, ADEQUATE AND

29 ACCURATE CUSTOMER INFORMATION TO ENABLE CUSTOMERS TO MAKE INFORMED

30 CHOICES REGARDING THE PURCHASE OF ANY ELECTRICITY SERVICES OFFERED BY

31 THE ELECTRICITY SUPPLIER;

32 (3) ESTABLISH REASONABLE RESTRICTIONS ON TELEMARKETING;

33 (4) ESTABLISH PROCEDURES FOR CONTRACTING WITH CUSTOMERS;

32 SENATE BILL 300

1 (5) ESTABLISH REQUIREMENTS AND LIMITATIONS RELATING TO

2 DEPOSITS, BILLING, COLLECTIONS, AND CONTRACT CANCELLATIONS;

3 (6) ESTABLISH PROVISIONS PROVIDING FOR THE REFERRAL OF A

4 DELINQUENT ACCOUNT BY AN ELECTRICITY SUPPLIER TO THE STANDARD OFFER

5 SERVICE UNDER § 7-510(C) OF THIS SUBTITLE; AND

6 (7) ESTABLISH PROCEDURES FOR DISPUTE RESOLUTION.

7 (F) IN ACCORDANCE WITH REGULATIONS OR ORDERS OF THE COMMISSION,

8 ELECTRICITY BILLS, FOR COMPETITIVE AND REGULATED ELECTRIC SERVICES,

9 PROVIDED TO CONSUMERS MAY PROVIDE, IN ADDITION TO THE REQUIREMENTS OF §

10 7-505(B)(5) OF THIS SUBTITLE AND SUBSECTION (E)(2) OF THIS SECTION, THE

11 FOLLOWING INFORMATION:

12 (1) THE IDENTITY AND PHONE NUMBER OF THE ELECTRICITY SUPPLIER

13 OF THE SERVICE;

14 (2) SUFFICIENT INFORMATION TO EVALUATE PRICES AND SERVICES;

15 AND

16 (3) INFORMATION IDENTIFYING WHETHER THE PRICE IS REGULATED

17 OR COMPETITIVE.

18 (G) (1) AN ELECTRICITY SUPPLIER OR ANY PERSON OR GOVERNMENTAL

19 UNIT MAY NOT, WITHOUT FIRST OBTAINING THE CUSTOMER'S PERMISSION:

20 (I) MAKE ANY CHANGE IN THE ELECTRICITY SUPPLIER FOR A

21 CUSTOMER; OR

22 (II) ADD A NEW CHARGE FOR A NEW OR EXISTING SERVICE OR

23 OPTION.

24 (2) THE COMMISSION SHALL ADOPT REGULATIONS OR ISSUE ORDERS

25 ESTABLISHING PROCEDURES TO PREVENT THE PRACTICES PROHIBITED UNDER

26 PARAGRAPH (1) OF THIS SUBSECTION.

27 (H) (1) AN ELECTRICITY SUPPLIER MAY NOT DISCRIMINATE AGAINST ANY

28 CUSTOMER BASED WHOLLY OR PARTLY ON RACE, COLOR, CREED, NATIONAL ORIGIN,

29 OR SEX OF AN APPLICANT FOR SERVICE OR FOR ANY ARBITRARY, CAPRICIOUS, OR

30 UNFAIRLY DISCRIMINATORY REASON.

31 (2) AN ELECTRICITY SUPPLIER MAY NOT REFUSE TO PROVIDE SERVICE

32 TO A CUSTOMER EXCEPT BY THE APPLICATION OF STANDARDS THAT ARE

33 REASONABLY RELATED TO THE ELECTRICITY SUPPLIER'S ECONOMIC AND BUSINESS

34 PURPOSES.

35 (I) AN ELECTRICITY SUPPLIER SHALL BE SUBJECT TO ALL APPLICABLE

36 FEDERAL AND STATE ENVIRONMENTAL LAWS AND REGULATIONS.

33 SENATE BILL 300

1 (J) AN ELECTRICITY SUPPLIER SHALL POST ON THE INTERNET

2 INFORMATION THAT IS READILY UNDERSTANDABLE ABOUT ITS SERVICES AND

3 RATES FOR SMALL COMMERCIAL AND RESIDENTIAL ELECTRIC CUSTOMERS.

4 (K) (1) THE COMMISSION MAY REVOKE OR SUSPEND THE LICENSE OF AN

5 ELECTRICITY SUPPLIER, IMPOSE A CIVIL PENALTY OR OTHER REMEDY, ORDER A

6 REFUND OR CREDIT TO A CUSTOMER, OR IMPOSE A MORATORIUM ON ADDING OR

7 SOLICITING ADDITIONAL CUSTOMERS BY THE ELECTRICITY SUPPLIER, FOR JUST

8 CAUSE ON THE COMMISSION'S OWN INVESTIGATION OR ON COMPLAINT OF THE

9 OFFICE OF PEOPLE'S COUNSEL, THE ATTORNEY GENERAL, OR AN AFFECTED PARTY.

10 (2) A CIVIL PENALTY MAY BE IMPOSED IN ADDITION TO THE

11 COMMISSION'S DECISION TO REVOKE, SUSPEND, OR IMPOSE A MORATORIUM.

12 (3) JUST CAUSE INCLUDES:

13 (I) INTENTIONALLY PROVIDING FALSE INFORMATION TO THE

14 COMMISSION;

15 (II) SWITCHING, OR CAUSING TO BE SWITCHED, THE ELECTRICITY

16 SUPPLY FOR A CUSTOMER WITHOUT FIRST OBTAINING THE CUSTOMER'S

17 PERMISSION;

18 (III) FAILING TO PROVIDE ELECTRICITY FOR ITS CUSTOMERS;

19 (IV) COMMITTING FRAUD OR ENGAGING IN DECEPTIVE PRACTICES;

20 (V) FAILING TO MAINTAIN FINANCIAL INTEGRITY;

21 (VI) VIOLATING A COMMISSION REGULATION OR ORDER;

22 (VII) FAILING TO PAY, COLLECT, REMIT, OR CALCULATE

23 ACCURATELY APPLICABLE STATE OR LOCAL TAXES;

24 (VIII) VIOLATING A PROVISION OF THIS ARTICLE OR ANY OTHER

25 APPLICABLE CONSUMER PROTECTION LAW OF THE STATE;

26 (IX) CONVICTION OF A FELONY BY THE LICENSEE OR PRINCIPAL OF

27 THE LICENSEE OR ANY CRIME INVOLVING FRAUD, THEFT, OR DECEIT; AND

28 (X) SUSPENSION OR REVOCATION OF A LICENSE BY ANY STATE OR

29 FEDERAL AUTHORITY.

30 (L) (1) AN ELECTRICITY SUPPLIER OR PERSON SELLING OR OFFERING TO

31 SELL ELECTRICITY IN THE STATE IN VIOLATION OF THIS SECTION, AFTER NOTICE

32 AND AN OPPORTUNITY FOR A HEARING, IS SUBJECT TO:

33 (I) A CIVIL PENALTY OF NOT MORE THAN $10,000 FOR THE

34 VIOLATION; OR

35 (II) LICENSE REVOCATION OR SUSPENSION.

34 SENATE BILL 300

1 (2) EACH DAY A VIOLATION CONTINUES IS A SEPARATE VIOLATION.

2 (3) THE COMMISSION SHALL DETERMINE THE AMOUNT OF ANY CIVIL

3 PENALTY AFTER CONSIDERING:

4 (I) THE NUMBER OF PREVIOUS VIOLATIONS OF ANY PROVISION OF

5 THIS ARTICLE;

6 (II) THE GRAVITY OF THE CURRENT VIOLATION; AND

7 (III) THE GOOD FAITH OF THE ELECTRICITY SUPPLIER OR PERSON

8 CHARGED IN ATTEMPTING TO ACHIEVE COMPLIANCE AFTER NOTIFICATION OF THE

9 VIOLATION.

10 (M) IN CONNECTION WITH A CONSUMER COMPLAINT OR COMMISSION

11 INVESTIGATION UNDER THIS SECTION, AN ELECTRICITY SUPPLIER SHALL PROVIDE

12 TO THE COMMISSION ACCESS TO ANY ACCOUNTS, BOOKS, PAPERS, AND DOCUMENTS

13 WHICH THE COMMISSION CONSIDERS NECESSARY TO RESOLVE THE MATTER AT

14 ISSUE.

15 (N) THE COMMISSION MAY ORDER THE ELECTRICITY SUPPLIER TO CEASE

16 ADDING OR SOLICITING ADDITIONAL CUSTOMERS OR TO CEASE SERVING

17 CUSTOMERS IN THE STATE.

18 (O) THE COMMISSION SHALL CONSULT WITH THE CONSUMER PROTECTION

19 DIVISION OF THE OFFICE OF THE ATTORNEY GENERAL BEFORE ISSUING

20 REGULATIONS DESIGNED TO PROTECT CONSUMERS.

21 (P) THE PEOPLE'S COUNSEL SHALL HAVE THE SAME AUTHORITY IN

22 LICENSING, COMPLAINT, AND DISPUTE RESOLUTION PROCEEDINGS AS IT HAS IN

23 TITLE 2 OF THIS ARTICLE.

24 (Q) NOTHING IN THIS SUBTITLE MAY BE CONSTRUED TO AFFECT THE

25 AUTHORITY OF THE DIVISION OF CONSUMER PROTECTION IN THE OFFICE OF THE

26 ATTORNEY GENERAL TO ENFORCE VIOLATIONS OF TITLES 13 AND 14 OF THE

27 COMMERCIAL LAW ARTICLE OR ANY OTHER APPLICABLE STATE LAW OR

28 REGULATION IN CONNECTION WITH THE ACTIVITIES OF ELECTRICITY SUPPLIERS.

29 7-508.

30 (A) AN ELECTRIC COMPANY MAY TRANSFER ANY OF ITS GENERATION

31 FACILITIES OR GENERATION ASSETS TO AN AFFILIATE.

32 (B) THE TRANSFER OF A GENERATION FACILITY OR GENERATION ASSET TO

33 AN AFFILIATE MAY NOT AFFECT OR RESTRICT THE COMMISSION'S DETERMINATION

34 OF THE VALUE OF A GENERATION ASSET FOR PURPOSES OF TRANSITION COSTS OR

35 BENEFITS UNDER § 7-513(B) OF THIS SUBTITLE.

36 (C) (1) THIS SUBSECTION IS IN EFFECT UNTIL THE LATER OF THE DATE

37 WHEN:

35 SENATE BILL 300

1 (I) ALL CUSTOMERS OF THE ELECTRIC COMPANY ARE ELIGIBLE

2 FOR CUSTOMER CHOICE UNDER § 7-510 OF THIS SUBTITLE; AND

3 (II) THE AMOUNT OF TRANSITION COSTS OR BENEFITS ARISING

4 FROM THE GENERATION TO BE TRANSFERRED HAS BEEN FINALLY DETERMINED BY

5 THE COMMISSION UNDER § 7-513(A) THROUGH (C) OF THIS SUBTITLE.

6 (2) THE COMMISSION MAY REVIEW AND APPROVE THE TRANSFER FOR

7 THE SOLE PURPOSE OF DETERMINING:

8 (I) THAT THE APPROPRIATE ACCOUNTING HAS BEEN FOLLOWED;

9 (II) THAT THE TRANSFER DOES NOT OR WOULD NOT RESULT IN AN

10 UNDUE ADVERSE EFFECT ON THE PROPER FUNCTIONING OF A COMPETITIVE

11 ELECTRICITY SUPPLY MARKET; AND

12 (III) THE APPROPRIATE TRANSFER PRICE AND RATE MAKING

13 TREATMENT.

14 (3) THE COMMISSION SHALL ACT ON THE TRANSFER OF A GENERATION

15 FACILITY OR GENERATION ASSET UNDER THIS SUBSECTION WITHIN 180 DAYS

16 AFTER THE ELECTRIC COMPANY FILES ITS PROPOSED TRANSFER APPLICATION AND

17 ANY REQUIRED SUPPORTING INFORMATION.

18 7-509.

19 (A) (1) ON AND AFTER THE INITIAL IMPLEMENTATION DATE, THE

20 GENERATION, SUPPLY, AND SALE OF ELECTRICITY, INCLUDING ALL RELATED

21 FACILITIES AND ASSETS, MAY NOT BE REGULATED AS AN ELECTRIC COMPANY

22 SERVICE OR FUNCTION EXCEPT TO:

23 (I) ESTABLISH THE PRICE FOR STANDARD OFFER SERVICE UNDER

24 § 7-510(C) OF THIS SUBTITLE; AND

25 (II) REVIEW AND APPROVE TRANSFERS OF GENERATION ASSETS

26 UNDER § 7-508 OF THIS SUBTITLE.

27 (2) THIS SUBSECTION DOES NOT APPLY TO:

28 (I) REGULATION OF AN ELECTRICITY SUPPLIER UNDER § 7-507 OF

29 THIS SUBTITLE; OR

30 (II) THE COSTS OF NUCLEAR GENERATION FACILITIES OR

31 PURCHASED POWER CONTRACTS THAT, AS PART OF A SETTLEMENT APPROVED BY

32 THE COMMISSION, REMAIN REGULATED OR ARE RECOVERED THROUGH THE

33 DISTRIBUTION FUNCTION.

34 (B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THIS SECTION

35 DOES NOT APPLY TO AN INVESTOR-OWNED ELECTRIC COMPANY UNTIL THE

36 ELECTRIC COMPANY:

36 SENATE BILL 300

1 (I) TRANSFERS GENERATION FACILITIES AND GENERATION

2 ASSETS TO AN AFFILIATE OF THE ELECTRIC COMPANY, AND THE AFFILIATE

3 OPERATES THE FACILITIES AND ASSETS; OR

4 (II) SELLS THE GENERATION FACILITIES AND GENERATION

5 ASSETS TO A NONAFFILIATE.

6 (2) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1) OF

7 THIS SUBSECTION, THIS SECTION APPLIES TO AN INVESTOR-OWNED ELECTRIC

8 COMPANY THAT DOES NOT TRANSFER ITS GENERATION FACILITIES AND

9 GENERATION ASSETS TO AN AFFILIATE OR SELL ITS GENERATION FACILITIES AND

10 GENERATION ASSETS TO A NONAFFILIATE IF, ON JANUARY 1, 1999, THE RETAIL PEAK

11 LOAD OF THE INVESTOR-OWNED ELECTRIC COMPANY IN THE STATE WAS LESS THAN

12 1,000 MEGAWATTS.

13 (II) AN INVESTOR-OWNED ELECTRIC COMPANY TO WHICH THIS

14 SECTION APPLIES THROUGH SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL, BY

15 JANUARY 1, 2001:

16 1. TRANSFER ITS GENERATION FACILITIES AND

17 GENERATION ASSETS TO AN AFFILIATE OF THE INVESTOR-OWNED ELECTRIC

18 COMPANY THAT OPERATES THE FACILITIES AND ASSETS; OR

19 2. SELL THE GENERATION FACILITIES AND GENERATION

20 ASSETS TO A NONAFFILIATE.

21 (C) THE EXCEPTIONS IN SUBSECTION(A)(1) OF THIS SECTION AS TO ANY

22 ELECTRIC COMPANY SHALL REMAIN IN EFFECT UNTIL THE LATER OF:

23 (1) THE DATE WHEN ALL CUSTOMERS OF THAT ELECTRIC COMPANY

24 ARE ELIGIBLE FOR CUSTOMER CHOICE UNDER § 7-510 OF THIS SUBTITLE;

25 (2) THE DATE WHEN THE AMOUNT OF TRANSITION COSTS OR BENEFITS

26 ARISING FROM THE GENERATION THAT IS DEREGULATED HAS BEEN FINALLY

27 DETERMINED BY THE COMMISSION UNDER § 7-513(A) THROUGH (C) OF THIS

28 SUBTITLE; OR

29 (3) IF, UNDER § 7-510(C)(3)(II) OF THIS SUBTITLE, THE COMMISSION

30 EXTENDS THE OBLIGATION TO PROVIDE STANDARD OFFER SERVICE, THE DATE ON

31 WHICH THE COMMISSION TERMINATES THAT OBLIGATION.

32 7-510.

33 (A) (1) SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE PHASED

34 IMPLEMENTATION OF CUSTOMER CHOICE SHALL BE IMPLEMENTED AS FOLLOWS:

35 (I) ON JULY 1, 2000, ONE-THIRD OF THE RESIDENTIAL CLASS IN

36 THE STATE OF EACH ELECTRIC COMPANY SHALL HAVE THE OPPORTUNITY FOR

37 CUSTOMER CHOICE;

37 SENATE BILL 300

1 (II) ON JANUARY 1, 2001, THE ENTIRE INDUSTRIAL CLASS AND THE

2 ENTIRE COMMERCIAL CLASS IN THE STATE OF EACH ELECTRIC COMPANY SHALL

3 HAVE THE OPPORTUNITY FOR CUSTOMER CHOICE;

4 (III) ON JULY 1, 2001, TWO-THIRDS OF THE RESIDENTIAL CLASS IN

5 THE STATE OF EACH ELECTRIC COMPANY SHALL HAVE THE OPPORTUNITY FOR

6 CUSTOMER CHOICE;

7 (IV) ON JULY 1, 2002, ALL CUSTOMERS OF EACH ELECTRIC

8 COMPANY SHALL HAVE THE OPPORTUNITY FOR CUSTOMER CHOICE; AND

9 (V) BY JULY 1, 2003, UNDER A SEPARATE SCHEDULE ADOPTED BY

10 THE COMMISSION, ALL CUSTOMERS OF EACH ELECTRIC COOPERATIVE SHALL HAVE

11 THE OPPORTUNITY FOR CUSTOMER CHOICE.

12 (2) (I) IN ACCORDANCE WITH THIS PARAGRAPH, THE COMMISSION

13 MAY ADOPT A SEPARATE SCHEDULE FOR MUNICIPAL ELECTRIC UTILITIES FOR THE

14 IMPLEMENTATION OF CUSTOMER CHOICE.

15 (II) A MUNICIPAL ELECTRIC UTILITY MAY NOT BE REQUIRED TO

16 MAKE ITS SERVICE TERRITORY AVAILABLE FOR CUSTOMER CHOICE UNLESS IT

17 ELECTS TO DO SO.

18 (III) IF A MUNICIPAL ELECTRIC UTILITY ELECTS TO ALLOW

19 CUSTOMER CHOICE, THE MUNICIPAL ELECTRIC UTILITY SHALL FILE A PROPOSED

20 PLAN AND SCHEDULE WITH THE COMMISSION.

21 (IV) THE COMMISSION MAY APPROVE EACH MUNICIPAL ELECTRIC

22 UTILITY PLAN AND SCHEDULE AFTER CONSIDERING THE FEATURES THAT

23 DISTINGUISH THE MUNICIPAL ELECTRIC UTILITY FROM OTHER ELECTRIC

24 COMPANIES.

25 (V) NOTHING IN THIS SUBTITLE MAY BE CONSTRUED TO REQUIRE

26 THE FUNCTIONAL, OPERATIONAL, STRUCTURAL, OR LEGAL SEPARATION OF THE

27 REGULATED AND NONREGULATED OPERATIONS OF THE MUNICIPAL ELECTRIC

28 UTILITY.

29 (3) ON OR BEFORE OCTOBER 1, 2003, EACH MUNICIPAL ELECTRIC

30 UTILITY SHALL REPORT, SUBJECT TO § 2-1246 OF THE STATE GOVERNMENT

31 ARTICLE, TO THE GENERAL ASSEMBLY ON THE STATUS OF THE OPPORTUNITY FOR

32 CUSTOMER CHOICE IN ITS SERVICE TERRITORY, INCLUDING:

33 (I) IF THE SERVICE TERRITORY OF THE MUNICIPAL ELECTRIC

34 UTILITY IS AVAILABLE FOR CUSTOMER CHOICE, ITS EXPERIENCE, THROUGH JULY 1,

35 2003, WITH THE TRANSITION TO CUSTOMER CHOICE; OR

36 (II) IF THE SERVICE TERRITORY OF THE MUNICIPAL ELECTRIC

37 UTILITY IS NOT AVAILABLE FOR CUSTOMER CHOICE AS OF JULY 1, 2003, ITS

38 PROPOSED INTENTION TO MAKE CUSTOMER CHOICE AVAILABLE IN THE FUTURE.

38 SENATE BILL 300

1 (4) IF A MUNICIPAL ELECTRIC UTILITY SERVES CUSTOMERS OUTSIDE

2 ITS DISTRIBUTION TERRITORY, ELECTRICITY SUPPLIERS LICENSED UNDER § 7-507

3 OF THIS SUBTITLE MAY SERVE THE CUSTOMERS IN THE DISTRIBUTION TERRITORY

4 OF THE MUNICIPAL ELECTRIC UTILITY.

5 (B) FOR GOOD CAUSE SHOWN AND IF THE COMMISSION FINDS THE ACTION

6 TO BE IN THE PUBLIC INTEREST, THE COMMISSION MAY:

7 (1) ACCELERATE OR DELAY THE INITIAL IMPLEMENTATION DATE OF

8 JULY 1, 2000 BY UP TO 3 MONTHS; OR

9 (2) ACCELERATE ANY OF THE OTHER IMPLEMENTATION DATES AND

10 PHASE-IN PERCENTAGES IN SUBSECTION (A) OF THIS SECTION.

11 (C) (1) BEGINNING ON THE INITIAL IMPLEMENTATION DATE, AN ELECTRIC

12 COMPANY'S OBLIGATION TO PROVIDE ELECTRICITY SUPPLY AND ELECTRICITY

13 SUPPLY SERVICE IS STATED BY THIS SUBSECTION.

14 (2) ELECTRICITY SUPPLY PURCHASED FROM A CUSTOMER'S ELECTRIC

15 COMPANY IS KNOWN AS STANDARD OFFER SERVICE. A CUSTOMER IS CONSIDERED

16 TO HAVE CHOSEN THE STANDARD OFFER SERVICE IF THE CUSTOMER:

17 (I) IS NOT ALLOWED TO CHOOSE AN ELECTRICITY SUPPLIER

18 UNDER THE PHASE IN OF CUSTOMER CHOICE IN SUBSECTION (A) OF THIS SECTION;

19 (II) CONTRACTS FOR ELECTRICITY WITH AN ELECTRICITY

20 SUPPLIER AND IT IS NOT DELIVERED;

21 (III) CANNOT ARRANGE FOR ELECTRICITY FROM AN ELECTRICITY

22 SUPPLIER;

23 (IV) DOES NOT CHOOSE AN ELECTRICITY SUPPLIER;

24 (V) CHOOSES THE STANDARD OFFER SERVICE; OR

25 (VI) HAS BEEN DENIED SERVICE OR REFERRED TO THE STANDARD

26 OFFER SERVICE BY AN ELECTRICITY SUPPLIER IN ACCORDANCE WITH § 7-507(E)(6)

27 OF THIS SUBTITLE.

28 (3) ANY OBLIGATION OF AN ELECTRIC COMPANY TO PROVIDE

29 STANDARD OFFER SERVICE SHALL CEASE ON JULY 1, 2003, EXCEPT THAT:

30 (I) ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC

31 UTILITIES MAY CHOOSE TO CONTINUE PROVIDING STANDARD OFFER SERVICE IN

32 THEIR RESPECTIVE DISTRIBUTION TERRITORIES, AND MAY CEASE OFFERING THAT

33 SERVICE AFTER NOTIFYING THE COMMISSION AT LEAST 12 MONTHS IN ADVANCE;

34 AND

35 (II) 1. IF THE COMMISSION FINDS THAT THE ELECTRICITY

36 SUPPLY MARKET IS NOT COMPETITIVE OR THAT NO ACCEPTABLE COMPETITIVE

39 SENATE BILL 300

1 PROPOSAL HAS BEEN RECEIVED TO SUPPLY ELECTRICITY TO THOSE CUSTOMERS

2 DESCRIBED UNDER PARAGRAPH (2) OF THIS SUBSECTION, THE COMMISSION SHALL

3 EXTEND THE OBLIGATION TO PROVIDE STANDARD OFFER SERVICE TO RESIDENTIAL

4 AND SMALL COMMERCIAL CUSTOMERS AT A MARKET PRICE THAT PERMITS

5 RECOVERY OF THE VERIFIABLE, PRUDENTLY INCURRED COSTS TO PROCURE OR

6 PRODUCE THE ELECTRICITY PLUS A REASONABLE RETURN.

7 2. THE COMMISSION SHALL REEXAMINE THE FINDING

8 MADE UNDER THIS SUBPARAGRAPH AT LEAST ANNUALLY.

9 (4) ON OR BEFORE JULY 1, 2001, THE COMMISSION SHALL ADOPT

10 REGULATIONS OR ISSUE ORDERS TO ESTABLISH PROCEDURES FOR THE

11 COMPETITIVE SELECTION OF ELECTRICITY SUPPLIERS, INCLUDING AN AFFILIATE

12 OF AN ELECTRIC COMPANY, TO PROVIDE STANDARD OFFER SERVICE TO CUSTOMERS

13 OF ELECTRIC COMPANIES UNDER PARAGRAPH (2) OF THIS SUBSECTION, EXCEPT FOR

14 CUSTOMERS OF ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC UTILITIES.

15 UNLESS DELAYED BY THE COMMISSION, THE COMPETITIVE SELECTION SHALL TAKE

16 EFFECT NO LATER THAN JULY 1, 2003.

17 (5) AN ELECTRIC COMPANY MAY PROCURE THE ELECTRICITY NEEDED

18 TO MEET ITS STANDARD OFFER SERVICE ELECTRICITY SUPPLY OBLIGATION FROM

19 ANY ELECTRICITY SUPPLIER, INCLUDING AN AFFILIATE OF THE ELECTRIC COMPANY.

20 (D) NOTWITHSTANDING THE DATES SET FORTH IN THIS SECTION OR ANY

21 OTHER LAW, CUSTOMER CHOICE MAY NOT COMMENCE UNTIL LEGISLATION IS

22 ENACTED BY THE GENERAL ASSEMBLY TO RESTRUCTURE MARYLAND TAXES TO

23 ADDRESS THE STATE AND LOCAL TAX IMPLICATIONS OF RESTRUCTURING THE

24 ELECTRIC UTILITY INDUSTRY.

25 (E) THE COMMISSION SHALL, BY REGULATION OR ORDER, ADOPT

26 PROCEDURES TO IMPLEMENT THIS SECTION, INCLUDING THE ALLOCATION OF ANY

27 UNUSED OPPORTUNITY FOR CUSTOMER CHOICE AMONG CUSTOMER CLASSES.

28 (F) A COUNTY OR MUNICIPAL CORPORATION MAY NOT ACT AS AN

29 AGGREGATOR UNLESS THE COMMISSION DETERMINES THERE IS NOT SUFFICIENT

30 COMPETITION WITHIN THE BOUNDARIES OF THE COUNTY OR MUNICIPAL

31 CORPORATION.

32 7-511.

33 (A) EXCEPT FOR ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC

34 UTILITIES:

35 (1) COMPETITIVE BILLING SHALL BEGIN ON JULY 1, 2000;

36 (2) COMPETITIVE METERING FOR LARGE CUSTOMERS SHALL BEGIN ON

37 JANUARY 1, 2002; AND

38 (3) COMPETITIVE METERING FOR ALL OTHER CUSTOMERS SHALL

39 BEGIN ON APRIL 1, 2002, OR EARLIER IF REQUESTED BY THE ELECTRIC COMPANY.

40 SENATE BILL 300

1 (B) THE COMMISSION SHALL ADOPT REGULATIONS OR ISSUE ORDERS TO

2 IMPLEMENT THIS SECTION.

3 (C) (1) A PERSON OTHER THAN AN ELECTRIC COMPANY OR A MUNICIPAL

4 ELECTRIC UTILITY MAY NOT ENGAGE IN THE BUSINESS OF COMPETITIVE BILLING

5 SERVICES IN A LOCAL JURISDICTION THAT ASSESSES A LOCAL ENERGY TAX,

6 UNLESS THE PERSON HOLDS A LICENSE ISSUED BY THAT JURISDICTION.

7 (2) AN APPLICATION FOR A LOCAL COMPETITIVE BILLING SERVICES

8 LICENSE SHALL BE MADE IN ACCORDANCE WITH THE REQUIREMENTS OF THE

9 LOCAL JURISDICTION.

10 (3) (I) A LOCAL JURISDICTION MAY REQUIRE AN APPLICANT OR

11 LICENSEE TO:

12 1. HOLD A LICENSE ISSUED BY THE COMMISSION, AS

13 PROVIDED UNDER § 7-507 OF THIS SUBTITLE;

14 2. POST A BOND OR OTHER SIMILAR INSTRUMENT IN AN

15 AMOUNT EQUAL TO 15% OF THE BOND REQUIRED UNDER § 7-507 OF THIS SUBTITLE;

16 AND

17 3. HAVE A RESIDENT AGENT IN THE STATE.

18 (II) A LOCAL JURISDICTION MAY NOT REQUIRE AN APPLICANT OR

19 LICENSEE TO PAY A FEE OR OTHER CHARGE FOR THE LOCAL LICENSE.

20 (D) (1) A LOCAL JURISDICTION MAY REVOKE OR SUSPEND THE LOCAL

21 LICENSE IF THE LICENSEE FAILS, WITHIN 15 DAYS OF THE DUE DATE ESTABLISHED

22 BY THE LOCAL JURISDICTION, TO PAY OR REMIT ALL OF THE APPLICABLE LOCAL

23 ENERGY TAXES ON SERVICES.

24 (2) A LOCAL JURISDICTION MAY REINSTATE THE LICENSE AFTER

25 PAYMENT OF ALL LOCAL ENERGY TAXES DUE.

26 (3) A LOCAL JURISDICTION MAY CHOOSE NOT TO REINSTATE A LICENSE

27 THAT HAS BEEN REVOKED OR SUSPENDED 3 TIMES IN A 12-MONTH PERIOD.

28 (4) A LOCAL JURISDICTION SHALL REPORT ANY REVOCATION OR

29 SUSPENSION OF A LICENSE TO THE COMMISSION.

30 (E) THE COMMISSION SHALL ADOPT REGULATIONS OR ISSUE AN ORDER TO

31 ESTABLISH PROCEDURES FOR THE ASSUMPTION OF BILLING RESPONSIBILITIES BY

32 THE ELECTRIC COMPANY THAT DISTRIBUTES ELECTRICITY IN THE RELEVANT

33 SERVICE TERRITORY IF A LOCAL LICENSE IS REVOKED OR SUSPENDED.

34 7-512.

35 (A) THIS SECTION AND § 7-513 OF THIS SUBTITLE APPLY TO AN ENTITY THAT

36 WAS REGULATED AS AN ELECTRIC COMPANY ON JUNE 30, 1999, WHETHER OR NOT

41 SENATE BILL 300

1 THE ENTITY OR ANY OF ITS BUSINESSES, SERVICES, OR ASSETS CONTINUES TO BE

2 REGULATED UNDER THIS ARTICLE AFTER THAT DATE.

3 (B) AN ELECTRIC COMPANY MAY RECOVER COSTS UNDER THIS SECTION TO

4 THE EXTENT THAT THE COMMISSION FINDS COSTS TO BE JUST AND REASONABLE.

5 (C) (1) AN ELECTRIC COMPANY SHALL BE PROVIDED A FAIR OPPORTUNITY

6 TO RECOVER FULLY ALL COSTS THAT HAVE BEEN OR WILL BE INCURRED BY THE

7 ELECTRIC COMPANY UNDER PUBLIC PURPOSE PROGRAMS ESTABLISHED BY LAW OR

8 ORDERED BY THE COMMISSION.

9 (2) (I) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION,

10 THE COSTS SUBJECT TO THIS SUBSECTION SHALL BE FUNDED BY A SURCHARGE OR

11 OTHER COST RECOVERY MECHANISM COLLECTED ON A STATEWIDE BASIS THAT:

12 1. FULLY RECOVERS FROM CUSTOMERS THE COSTS OF THE

13 PLANS AND PROGRAMS; AND

14 2. SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH,

15 WITH RESPECT TO ANY OF THESE COSTS NOT INCLUDED IN RATES ON JANUARY 1,

16 2000, IS NOT SUBJECT TO ANY OTHERWISE APPLICABLE CAP.

17 (II) THE RECOVERY BY AN ELECTRIC COMPANY OF COSTS FOR A

18 UNIVERSAL SERVICE PROGRAM IS SUBJECT TO ANY APPLICABLE CAP REGARDLESS

19 OF WHEN THE COSTS ARE INCLUDED IN RATES.

20 (3) DURING THE FISCAL YEAR ENDING JUNE 30, 2000, AN ELECTRIC

21 COMPANY MAY NOT, UNDER PARAGRAPH (2) OF THIS SUBSECTION, RECOVER COSTS

22 OF A CONSUMER EDUCATION PROGRAM ESTABLISHED BY LAW, REGULATION, OR

23 ORDER.

24 7-512.1.

25 (A) (1) THE COMMISSION SHALL ESTABLISH A UNIVERSAL SERVICE

26 PROGRAM TO ASSIST ELECTRIC CUSTOMERS WITH ANNUAL INCOMES AT OR BELOW

27 150% OF THE FEDERAL POVERTY LEVEL.

28 (2) THE DEPARTMENT OF HUMAN RESOURCES SHALL BE RESPONSIBLE

29 FOR ADMINISTERING THE UNIVERSAL SERVICE PROGRAM THROUGH THE

30 MARYLAND ENERGY ASSISTANCE PROGRAM.

31 (3) THE DEPARTMENT OF HUMAN RESOURCES MAY, WITH INPUT FROM

32 A PANEL OR ROUNDTABLE OF INTERESTED PARTIES, CONTRACT WITH A FOR-PROFIT

33 OR A NONPROFIT MARYLAND CORPORATION EXISTING AS OF JULY 1, 1999 TO ASSIST

34 IN ADMINISTERING THE UNIVERSAL SERVICE PROGRAM.

35 (4) THE COMMISSION SHALL HAVE OVERSIGHT RESPONSIBILITY FOR

36 THE UNIVERSAL SERVICE PROGRAM.

42 SENATE BILL 300

1 (5) THE COMPONENTS OF THE UNIVERSAL SERVICE PROGRAM SHALL

2 INCLUDE:

3 (I) BILL ASSISTANCE, AT A MINIMUM OF 50% OF THE DETERMINED

4 NEED;

5 (II) LOW-INCOME WEATHERIZATION; AND

6 (III) THE RETIREMENT OF ARREARAGES THAT WERE INCURRED

7 PRIOR TO THE INITIAL IMPLEMENTATION DATE.

8 (B) (1) (I) ALL CUSTOMERS WILL CONTRIBUTE TO THE FUNDING OF THE

9 UNIVERSAL SERVICE PROGRAM THROUGH A CHARGE COLLECTED BY EACH

10 ELECTRIC COMPANY.

11 (II) IN THE FIRST 6 MONTHS AFTER THE INITIAL

12 IMPLEMENTATION DATE, THE COMMISSION SHALL CONSIDER ADJUSTMENTS TO

13 THE CHARGES COLLECTED FOR THE UNIVERSAL SERVICE PROGRAM FOR PERSONS

14 THAT ARE NOT ELIGIBLE FOR CUSTOMER CHOICE.

15 (2) THE COMMISSION SHALL DETERMINE A FAIR AND EQUITABLE

16 ALLOCATION FOR COLLECTING THE CHARGES AMONG ALL CUSTOMER CLASSES

17 PURSUANT TO SUBSECTION (D) OF THIS SECTION.

18 (3) ANY UNEXPENDED UNIVERSAL SERVICE PROGRAM FUNDS

19 RETURNED TO CUSTOMERS UNDER SUBSECTION (H) OF THIS SECTION SHALL BE

20 RETURNED TO CUSTOMER CLASSES IN THE SAME PROPORTIONS AS THEY WERE

21 COLLECTED.

22 (4) AN ELECTRIC COMPANY SHALL RECOVER UNIVERSAL SERVICE

23 PROGRAM COSTS IN ACCORDANCE WITH § 7-512 OF THIS SUBTITLE.

24 (5) THE COMMISSION SHALL DETERMINE THE ALLOCATION OF THE

25 UNIVERSAL SERVICE CHARGE AMONG THE GENERATION, TRANSMISSION, AND

26 DISTRIBUTION RATE COMPONENTS OF ALL CLASSES.

27 (6) THE COMMISSION MAY NOT ASSESS THE UNIVERSAL SERVICE

28 SURCHARGE ON A PER KILOWATT-HOUR BASIS.

29 (C) ON OR BEFORE DECEMBER 1, 1999, AND ON AN ANNUAL BASIS

30 THEREAFTER, THE COMMISSION SHALL REPORT, SUBJECT TO § 2-1246 OF THE STATE

31 GOVERNMENT ARTICLE, TO THE GENERAL ASSEMBLY ON THE UNIVERSAL SERVICE

32 PROGRAM, INCLUDING:

33 (1) SUBJECT TO SUBSECTIONS (D) AND (E) OF THIS SECTION, A

34 RECOMMENDATION ON THE TOTAL AMOUNT OF FUNDS FOR THE PROGRAM FOR THE

35 FOLLOWING FISCAL YEAR;

36 (2) FOR BILL ASSISTANCE:

43 SENATE BILL 300

1 (I) THE TOTAL AMOUNT OF NEED, AS DETERMINED BY THE

2 COMMISSION, FOR ELECTRIC CUSTOMERS WITH ANNUAL INCOMES AT OR BELOW

3 150% OF THE FEDERAL POVERTY LEVEL AND THE BASIS FOR THIS DETERMINATION;

4 AND

5 (II) THE PERCENTAGE OF NEED, AS DETERMINED BY THE

6 COMMISSION, BUT AT A MINIMUM OF 50%, THAT SHOULD BE FUNDED THROUGH THE

7 UNIVERSAL SERVICE PROGRAM AND THE BASIS FOR THIS DETERMINATION;

8 (3) FOR LOW-INCOME WEATHERIZATION, THE AMOUNT OF FUNDS

9 NEEDED, AS DETERMINED BY THE COMMISSION, FOR MEASURES THAT REDUCE

10 CONSUMPTION OF ENERGY BY ELECTRIC CUSTOMERS WITH ANNUAL INCOMES AT

11 OR BELOW 150% OF THE FEDERAL POVERTY LEVEL AND THE BASIS FOR THIS

12 DETERMINATION;

13 (4) THE AMOUNT OF FUNDS NEEDED, AS DETERMINED BY THE

14 COMMISSION, TO RETIRE ARREARAGES THAT WERE INCURRED PRIOR TO THE

15 INITIAL IMPLEMENTATION DATE BY ELECTRIC CUSTOMERS WITH ANNUAL INCOMES

16 AT OR BELOW 150% OF THE FEDERAL POVERTY LEVEL AND THE BASIS FOR THIS

17 DETERMINATION;

18 (5) THE IMPACT ON CUSTOMERS' RATES, INCLUDING THE ALLOCATION

19 AMONG CUSTOMER CLASSES, FROM COLLECTING THE TOTAL AMOUNT

20 RECOMMENDED BY THE COMMISSION UNDER ITEM (1) OF THIS SUBSECTION; AND

21 (6) THE IMPACT OF USING OTHER FEDERAL POVERTY LEVEL

22 BENCHMARKS ON COSTS AND THE EFFECTIVENESS OF THE UNIVERSAL SERVICE

23 PROGRAM.

24 (D) THE TOTAL AMOUNT OF FUNDS TO BE COLLECTED FOR THE UNIVERSAL

25 SERVICE PROGRAM IN EACH OF THE 3 YEARS FOLLOWING THE INITIAL

26 IMPLEMENTATION DATE SHALL BE $34,000,000, ALLOCATED IN THE FOLLOWING

27 MANNER:

28 (1) $24.4 MILLION SHALL BE COLLECTED FROM THE INDUSTRIAL AND

29 COMMERCIAL CLASSES; AND

30 (2) $9.6 MILLION SHALL BE COLLECTED FROM THE RESIDENTIAL CLASS.

31 (E) (1) THE COMMISSION SHALL RECOMMEND A TOTAL AMOUNT OF FUNDS

32 TO BE USED FOR THE UNIVERSAL SERVICE PROGRAM FOR THE FOURTH YEAR, AND

33 EACH YEAR THEREAFTER.

34 (2) THE RECOMMENDATION OF THE COMMISSION MAY ONLY BE MADE

35 AFTER CONSIDERATION OF:

36 (I) INFORMATION RELATED TO THE FUNDING FOR THE FIRST 3

37 YEARS;

44 SENATE BILL 300

1 (II) THE RETIREMENT, DURING THE FIRST 3 YEARS, OF

2 ARREARAGES INCURRED PRIOR TO THE INITIAL IMPLEMENTATION DATE; AND

3 (III) THE AMOUNT OF LOW-INCOME ASSISTANCE INCLUDED IN

4 RATES PRIOR TO THE INITIAL IMPLEMENTATION DATE.

5 (F) FOR THE FOURTH YEAR AFTER THE INITIAL IMPLEMENTATION DATE, AND

6 FOR EACH YEAR THEREAFTER, THE AMOUNT TO BE USED FOR THE UNIVERSAL

7 SERVICE PROGRAM, DETERMINED AFTER CONSIDERATION OF THE

8 RECOMMENDATION OF THE COMMISSION REQUIRED UNDER THIS SECTION, IS

9 SUBJECT TO THE APPROVAL OF THE GENERAL ASSEMBLY THROUGH THE

10 ENACTMENT OF LEGISLATION.

11 (G) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, FOR THE 3

12 YEARS IMMEDIATELY FOLLOWING THE INITIAL IMPLEMENTATION DATE,

13 ELECTRICITY SUPPLIERS AND ELECTRIC COMPANIES MAY NOT TERMINATE, FOR AN

14 ARREARAGE BALANCE DUE ON THE INITIAL IMPLEMENTATION DATE, THE SUPPLY

15 OF ELECTRICITY TO A CUSTOMER WHO RECEIVES ASSISTANCE UNDER THE

16 UNIVERSAL SERVICE PROGRAM UNDER THIS SECTION.

17 (H) (1) IN THIS SUBSECTION, "FUND" MEANS THE UNIVERSAL SERVICE

18 PROGRAM FUND.

19 (2) THERE IS A UNIVERSAL SERVICE PROGRAM FUND.

20 (3) (I) 1. THE COMPTROLLER SHALL COLLECT THE REVENUE

21 COLLECTED BY ELECTRIC COMPANIES UNDER SUBSECTION (B) OF THIS SECTION

22 AND PLACE THE REVENUE INTO THE FUND.

23 2. THE GENERAL ASSEMBLY MAY APPROPRIATE FUNDS

24 SUPPLEMENTAL TO THE FUNDS COLLECTED UNDER SUB-SUBPARAGRAPH 1 OF THIS

25 SUBPARAGRAPH.

26 (II) THE FUND IS A CONTINUING, NONLAPSING FUND THAT IS NOT

27 SUBJECT TO § 7-302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.

28 (III) THE PURPOSE OF THE FUND IS TO ASSIST ELECTRIC

29 CUSTOMERS AS PROVIDED IN SUBSECTION (A)(1) OF THIS SECTION.

30 (4) THE DEPARTMENT OF HUMAN RESOURCES, WITH OVERSIGHT BY

31 THE COMMISSION, SHALL DISBURSE THE FUNDS IN ACCORDANCE WITH THE

32 PROVISIONS OF THIS SECTION.

33 (5) IN ANY YEAR WHEN THERE ARE UNEXPENDED FUNDS, THOSE

34 FUNDS SHALL BE RETURNED TO THE CUSTOMER CLASSES PROPORTIONATE TO HOW

35 THE CUSTOMER CLASSES PAID INTO THE FUND.

45 SENATE BILL 300

1 7-513.

2 (A) (1) IN ACCORDANCE WITH THIS SUBSECTION, AN ELECTRIC COMPANY

3 SHALL BE PROVIDED A FAIR OPPORTUNITY TO RECOVER ALL OF ITS PRUDENTLY

4 INCURRED AND VERIFIABLE NET TRANSITION COSTS, SUBJECT TO FULL

5 MITIGATION, FOLLOWING THE COMMISSION'S DETERMINATION UNDER SUBSECTION

6 (B) OF THIS SECTION.

7 (2) A COMPETITIVE TRANSITION CHARGE, OR OTHER APPROPRIATE

8 MECHANISM THAT THE COMMISSION DETERMINES, MAY BE INCLUDED FOR

9 CUSTOMERS WHO ACCESS THE TRANSMISSION OR DISTRIBUTION SYSTEM OF THE

10 ELECTRIC COMPANY IN WHOSE DISTRIBUTION TERRITORY THE CUSTOMER IS

11 LOCATED. THE COSTS AUTHORIZED BY THE COMMISSION TO BE RECOVERED SHALL

12 BE ALLOCATED TO CUSTOMER CLASSES IN A MANNER THAT, AS NEARLY AS

13 REASONABLY POSSIBLE, DOES NOT EXCEED THE COST OF PROVIDING THE SERVICE

14 TO THOSE CLASSES OF CUSTOMERS, AVOIDING WHERE REASONABLY POSSIBLE ANY

15 INTERCLASS OR INTRACLASS CROSS SUBSIDY.

16 (3) (I) THE COMPETITIVE TRANSITION CHARGE MAY BE INCLUDED ON

17 BILLS TO CUSTOMERS FOR A PERIOD DETERMINED BY THE COMMISSION.

18 (II) THE COMMISSION MAY ESTABLISH RECOVERY PERIODS OF

19 DIFFERENT LENGTHS FOR EACH ELECTRIC COMPANY AND FOR DIFFERENT

20 CATEGORIES OF TRANSITION COSTS.

21 (4) A COMPETITIVE TRANSITION CHARGE, OR OTHER APPROPRIATE

22 MECHANISM DETERMINED BY THE COMMISSION, MAY NOT APPLY TO ANY ON-SITE

23 GENERATED ELECTRICITY TO THE EXTENT OF:

24 (I) THE EXISTING FACILITIES' INSTALLED GENERATING CAPACITY

25 AS OF JANUARY 1, 1999;

26 (II) THE GENERATING CAPACITY OF AN EXISTING FACILITY TO BE

27 INSTALLED UNDER A LEGALLY BINDING CONTRACT:

28 1. EXECUTED ON OR BEFORE JANUARY 1, 1999; OR

29 2. EXECUTED ON OR BEFORE SEPTEMBER 29, 1999, IF THE

30 COMMISSION, ON A CASE BY CASE REVIEW OF THE EVIDENCE, DETERMINES THAT

31 NEGOTIATIONS IN GOOD FAITH CONCERNING THE CONTRACT WERE ONGOING AS OF

32 JANUARY 1, 1999; OR

33 (III) FOR A FACILITY WITH A CAPACITY OF 500 KILOWATTS OR LESS:

34 1. THE FIRST 80 MEGAWATTS OF THE AGGREGATE

35 STATEWIDE GENERATING CAPACITY OF ON-SITE GENERATING FACILITIES;

36 2. THE GENERATING CAPACITY OF THE FACILITY IF THE

37 FACILITY:

46 SENATE BILL 300

1 A. IS INSTALLED BETWEEN JANUARY 1, 2000 AND DECEMBER

2 31, 2003;

3 B. DERIVES ELECTRICITY FROM FUEL CELLS,

4 PHOTOVOLTAICS, WIND MACHINES, OR MICROTURBINES; AND

5 C. HAS AN ENERGY CONVERSION EFFICIENCY GREATER

6 THAN 40%; OR

7 3. THE GENERATING CAPACITY OF THE FACILITY IF THE

8 FACILITY:

9 A. IS INSTALLED AFTER JANUARY 1, 2004;

10 B. DERIVES ELECTRICITY FROM FUEL CELLS,

11 PHOTOVOLTAICS, WIND MACHINES, OR MICROTURBINES; AND

12 C. HAS AN ENERGY CONVERSION EFFICIENCY GREATER

13 THAN 50%.

14 (B) THE COMMISSION SHALL DETERMINE THE TRANSITION COSTS AND THE

15 AMOUNTS OF THE TRANSITION COSTS THAT AN ELECTRIC COMPANY SHALL BE

16 PROVIDED AN OPPORTUNITY TO RECOVER UNDER ITS RESTRUCTURING PLAN

17 THROUGH THE COMPETITIVE TRANSITION CHARGE OR OTHER APPROPRIATE

18 MECHANISM.

19 (C) (1) AFTER JULY 1, 1999, AN ELECTRIC COMPANY MAY APPLY TO THE

20 COMMISSION FOR A QUALIFIED RATE ORDER FOR SOME OR ALL OF ITS TRANSITION

21 COSTS.

22 (2) IF THE COMMISSION ISSUES A QUALIFIED RATE ORDER AND THE

23 TRANSITION BONDS APPROVED BY THAT ORDER ARE SUCCESSFULLY ISSUED:

24 (I) THE ELECTRIC COMPANY SHALL IMPOSE AND COLLECT,

25 THROUGH ITS CUSTOMER BILLS, THE INTANGIBLE TRANSITION CHARGES

26 APPROVED BY THE QUALIFIED RATE ORDER; AND

27 (II) AT THE SAME TIME, THE ELECTRIC COMPANY'S COMPETITIVE

28 TRANSITION CHARGE SHALL BE REDUCED BY AN AMOUNT EQUAL TO THAT PORTION

29 OF THE COMPETITIVE TRANSITION CHARGE RELATED TO THE TRANSITION COSTS

30 FOR WHICH TRANSITION BONDS HAVE BEEN SUCCESSFULLY ISSUED, TOGETHER

31 WITH ANY COSTS OF CAPITAL RELATED TO THE TRANSITION COSTS FOR WHICH

32 RECOVERY WAS PROVIDED IN THE COMPETITIVE TRANSITION CHARGE, AS

33 PROVIDED IN THE QUALIFIED RATE ORDER.

34 (D) (1) THE COMMISSION SHALL ESTABLISH PROCEDURES FOR THE

35 ANNUAL REVIEW OF THE COMPETITIVE TRANSITION CHARGE FOR EACH ELECTRIC

36 COMPANY TO RECONCILE THE ANNUAL REVENUES RECEIVED FROM THE CHARGE

37 WITH THE ANNUAL AMORTIZATION OF TRANSITION COSTS APPROVED BY THE

38 COMMISSION UNDER THIS SECTION TO TAKE ACCOUNT OF ACTUAL

47 SENATE BILL 300

1 KILOWATT-HOUR SALES IN THE PRIOR YEAR COMPARED WITH PREVIOUSLY

2 ESTIMATED KILOWATT-HOUR SALES. THE COMMISSION SHALL ADJUST THE

3 COMPETITIVE TRANSITION CHARGE BASED ON ANY UNDER RECOVERY OR OVER

4 RECOVERY WITH RESPECT TO THE AUTHORIZED AMORTIZATION AMOUNT.

5 (2) NOTHING IN THIS SUBTITLE MAY BE CONSTRUED AS PREVENTING

6 THE COMMISSION FROM APPROVING FOR AN INVESTOR-OWNED ELECTRIC

7 COMPANY:

8 (I) AN ADJUSTMENT MECHANISM PROPOSED BY THE

9 INVESTOR-OWNED ELECTRIC COMPANY IN ITS INITIAL RESTRUCTURING PROPOSAL

10 FILED PRIOR TO JANUARY 1, 1999, THAT TAKES INTO ACCOUNT DIFFERENCES OTHER

11 THAN DIFFERENCES IN KILOWATT-HOUR SALES, TAKING INTO CONSIDERATION ANY

12 REQUIREMENTS RELATED TO ANY TRANSITION BONDS;

13 (II) AN ADJUSTMENT THAT TAKES INTO ACCOUNT GENERATION

14 ASSET SALES BY AN ELECTRIC COMPANY OR AN AFFILIATE TO A NONAFFILIATE

15 THAT ARE CONSUMMATED ON OR BEFORE JUNE 30, 2005; OR

16 (III) ANY OTHER MECHANISM AS PART OF A SETTLEMENT.

17 (E) (1) IN DETERMINING THE APPROPRIATE TRANSITION COSTS OR

18 BENEFITS FOR EACH ELECTRIC COMPANY'S GENERATION-RELATED ASSETS, THE

19 COMMISSION SHALL:

20 (I) CONDUCT PUBLIC HEARINGS; AND

21 (II) CONSIDER, IN ADDITION TO OTHER APPROPRIATE EVIDENCE

22 OF VALUE:

23 1. BOOK VALUE AND FAIR MARKET VALUE;

24 2. AUCTIONS AND SALES OF COMPARABLE ASSETS;

25 3. APPRAISALS;

26 4. THE REVENUE THE COMPANY WOULD RECEIVE UNDER

27 RATE-OF-RETURN REGULATION;

28 5. THE REVENUE THE COMPANY WOULD RECEIVE IN A

29 RESTRUCTURED ELECTRICITY SUPPLY MARKET; AND

30 6. COMPUTER SIMULATIONS PROVIDED TO THE

31 COMMISSION.

32 (2) THE COMMISSION SHALL DETERMINE ANY EQUITABLE ALLOCATION

33 OF COSTS OR BENEFITS BETWEEN SHAREHOLDERS AND RATEPAYERS. IN

34 DETERMINING THE ALLOCATION OF TRANSITION COSTS OR BENEFITS, THE

35 COMMISSION SHALL CONSIDER THE FOLLOWING FACTORS:

48 SENATE BILL 300

1 (I) THE PRUDENCE AND VERIFIABILITY OF THE ORIGINAL

2 INVESTMENT;

3 (II) WHETHER THE INVESTMENT CONTINUES TO BE USED AND

4 USEFUL;

5 (III) WHETHER THE LOSS IS ONE OF WHICH INVESTORS CAN BE

6 SAID TO HAVE REASONABLY BORNE THE RISK; AND

7 (IV) WHETHER INVESTORS HAVE ALREADY BEEN COMPENSATED

8 FOR THE RISK.

9 7-514.

10 (A) (1) ON COMPLAINT OR ON ITS OWN MOTION, FOR GOOD CAUSE SHOWN,

11 THE COMMISSION MAY CONDUCT AN INVESTIGATION OF THE RETAIL ELECTRICITY

12 SUPPLY AND ELECTRICITY SUPPLY SERVICES MARKETS AND DETERMINE WHETHER

13 THE FUNCTION OF ONE OF THESE MARKETS IS BEING ADVERSELY AFFECTED BY

14 MARKET POWER OR ANY OTHER ANTICOMPETITIVE CONDUCT.

15 (2) THE COMMISSION SHALL MONITOR THE RETAIL ELECTRICITY

16 SUPPLY AND ELECTRICITY SUPPLY SERVICES MARKETS TO ENSURE THAT THE

17 MARKETS ARE NOT BEING ADVERSELY AFFECTED BY MARKET POWER OR ANY

18 OTHER ANTICOMPETITIVE CONDUCT.

19 (B) IF, AS A RESULT OF AN INVESTIGATION CONDUCTED UNDER THIS

20 SECTION, THE COMMISSION DETERMINES THAT MARKET POWER OR ANY OTHER

21 ANTICOMPETITIVE CONDUCT IN THE RELEVANT MARKET UNDER THE

22 COMMISSION'S JURISDICTION IS PREVENTING THE ELECTRIC CUSTOMERS IN THE

23 STATE FROM OBTAINING THE BENEFITS OF PROPERLY FUNCTIONING RETAIL

24 ELECTRICITY SUPPLY AND ELECTRICITY SUPPLY SERVICES MARKETS, THE

25 COMMISSION MAY TAKE REMEDIAL ACTIONS WITHIN ITS AUTHORITY TO ADDRESS

26 THE IMPACT OF THE MARKET POWER OR ANY OTHER ANTICOMPETITIVE CONDUCT

27 ACTIVITIES.

28 (C) THE COMMISSION SHALL INCLUDE ANTITRUST PRINCIPLES IN

29 PERFORMING ITS ANALYSIS UNDER THIS SECTION.

30 (D) THE COMMISSION SHALL COOPERATE WITH AND SHARE INFORMATION

31 WITH THE ANTITRUST DIVISION OF THE OFFICE OF THE ATTORNEY GENERAL.

32 (E) THE RIGHTS AND REMEDIES PROVIDED IN THIS SECTION SUPPLEMENT

33 ANY OTHER RIGHTS OR REMEDIES THAT MAY EXIST UNDER STATE OR FEDERAL LAW

34 OR COMMON LAW.

35 7-515.

36 AN ELECTRICITY SUPPLIER THAT ALSO PROVIDES DISTRIBUTION SERVICE, OR

37 THAT HAS AN AFFILIATE THAT PROVIDES DISTRIBUTION SERVICE, IN

38 PENNSYLVANIA, DELAWARE, WEST VIRGINIA, VIRGINIA, OR THE DISTRICT OF

49 SENATE BILL 300

1 COLUMBIA MAY NOT PROVIDE RETAIL ELECTRICITY SUPPLY SERVICE, DIRECTLY,

2 INDIRECTLY, OR THROUGH AN AGGREGATOR, MARKETER, OR BROKER, IN THE

3 DISTRIBUTION TERRITORY OF AN UNAFFILIATED ELECTRIC COMPANY UNLESS

4 THERE IS ELECTRICITY SUPPLY COMPETITION IN AT LEAST A PORTION OF THE

5 DISTRIBUTION SERVICE AREA OF THE ELECTRICITY SUPPLIER OR AFFILIATE.

6 7-516.

7 (A) AN ELECTRIC COMPANY SHALL CONTINUE TO PURCHASE ELECTRICITY

8 UNDER ANY CONTRACT IN EFFECT ON JANUARY 1, 1999, WITH A RENEWABLE ENERGY

9 RESOURCE FACILITY LOCATED IN THE STATE UNTIL THE LATER OF THE EXPIRATION

10 OF THE CONTRACT OR THE EXPIRATION OR SATISFACTION OF BONDS EXISTING ON

11 JANUARY 1, 1999, SUPPORTING THE FACILITY.

12 (B) AN INVESTOR-OWNED ELECTRIC COMPANY SHALL CONTINUE TO

13 PROVIDE AT LEAST THE SAME PERCENTAGE OF ELECTRICITY FROM AVAILABLE

14 RENEWABLE ENERGY RESOURCES, AT A REASONABLY COMPARABLE COST, AS THE

15 ELECTRIC COMPANY PROVIDED IN 1998.

16 (C) ON OR BEFORE FEBRUARY 1, 2000, THE COMMISSION, IN CONSULTATION

17 WITH THE MARYLAND ENERGY ADMINISTRATION, SHALL REPORT TO THE

18 GOVERNOR AND, SUBJECT TO § 2-1246 OF THE STATE GOVERNMENT ARTICLE, TO

19 THE GENERAL ASSEMBLY ON THE FEASIBILITY OF REQUIRING A RENEWABLES

20 PORTFOLIO STANDARD, INCLUDING THE FEASIBILITY AND STRUCTURE OF A

21 TWO-TIERED STANDARD, AND THE ESTIMATED COSTS AND BENEFITS OF

22 ESTABLISHING THIS REQUIREMENT.

23 (D) (1) (I) IN RECOGNITION OF THE POTENTIAL ENVIRONMENTAL

24 IMPACTS OF RESTRUCTURING THE ELECTRIC INDUSTRY, IT IS THE INTENT OF THE

25 GENERAL ASSEMBLY TO MINIMIZE THE EFFECTS OF ELECTRIC RESTRUCTURING ON

26 THE ENVIRONMENT.

27 (II) ELECTRIC COMPANIES IN MARYLAND SHALL CONDUCT A

28 STUDY THAT TRACKS SHIFTS IN GENERATION AND EMISSIONS AS A RESULT OF

29 RESTRUCTURING THE ELECTRIC INDUSTRY.

30 (III) THE STUDY SHALL BE SUBMITTED TO THE DEPARTMENT OF

31 THE ENVIRONMENT AND THE COMMISSION ONE YEAR AFTER THE INITIAL DATE OF

32 IMPLEMENTATION OF CUSTOMER CHOICE.

33 (2) IF, AFTER REVIEW OF THE STUDY REQUIRED UNDER PARAGRAPH (1)

34 OF THIS SUBSECTION, THE DEPARTMENT OF THE ENVIRONMENT DETERMINES

35 THAT THE EMISSIONS LEVELS IMPOSE A HIGHER EMISSION BURDEN IN MARYLAND,

36 THE DEPARTMENT OF THE ENVIRONMENT, IN CONSULTATION WITH THE

37 COMMISSION, SHALL STUDY THE APPROPRIATENESS, CONSTITUTIONALITY, AND

38 FEASIBILITY OF ESTABLISHING AN AIR QUALITY SURCHARGE OR OTHER

39 MECHANISM TO PROTECT MARYLAND'S ENVIRONMENT IN CONNECTION WITH THE

40 IMPLEMENTATION OF CUSTOMER CHOICE OF ELECTRICITY SUPPLIERS.