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Sunday, January 31, 1999

19990100 MD Senate Bill 300 Electric Utility Industry Restructuring Pages 50 through 95

19990100 MD Senate Bill 300 Electric Utility Industry Restructuring

Pages 50 through 95

Click here for Pages 1 to 50

50 SENATE BILL 300

1 7-517.

2 THIS SUBTITLE MAY BE REFERRED TO AS "THE ELECTRIC CUSTOMER CHOICE

3 AND COMPETITION ACT OF 1999".

4 7-518. RESERVED.

5 Article - Commercial Law

6 9-104.

7 This title does not apply

8 (m) To a transfer of an interest in a letter of credit other than the

9 rights to proceeds of a written letter of credit; OR

10 (N) TO INTANGIBLE TRANSITION PROPERTY AS DEFINED IN § 7-501

11 OF THE PUBLIC UTILITY COMPANIES ARTICLE.

12 SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 4-403 of the

13 Public Utility Companies Article of the Annotated Code of Maryland be repealed. Any

14 net accumulated over recovery or under recovery of actual fuel costs by each electric

15 company as of the initial implementation date under Title 7, Subtitle 5 of the Public

16 Utility Companies Article, as enacted by this Act, shall be credited or debited, as

17 appropriate, to the electric company's rates and shall be refunded or collected, as

18 appropriate, over a period not to exceed 12 months.

19 SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland

20 read as follows:

21 Article - Public Utility Companies

22 7-203.

23 (a) (1) The Commission shall:

24 (i) impose an environmental surcharge per kilowatt hour of

25 electricity [generated]DISTRIBUTED TO RETAIL ELECTRIC CUSTOMERS within the

26 State; and

27 (ii) authorize each electric company to add the full amount of the

28 surcharge to its customers' bills.

29 (2) To the extent that an electric company fails to collect the surcharge

30 from its customers, the amount uncollected shall be deemed a cost of power

31 [generation] DISTRIBUTION and allowed and computed as such together with other

32 allowable expenses for purposes of rate-making.

51 SENATE BILL 300

1 (b) (1) The Comptroller shall collect the revenue from the surcharge imposed

2 under subsection (a) of this section and place the revenue into a special fund, the

3 Environmental Trust Fund.

4 (2) The Comptroller shall maintain the method of collection of the

5 surcharge from each electric company, and the money collected shall accrue to the

6 Fund.

7 (c) (1) Each fiscal year, the Secretary of Natural Resources shall coordinate

8 the preparation of the annual budget required to carry out the provisions of the Power

9 Plant Research Program under Title 3, Subtitle 3 of the Natural Resources Article.

10 (2) Each fiscal year, on approval of the annual budget by the General

11 Assembly for the Power Plant Research Program, the Commission shall establish the

12 amount of the environmental surcharge per kilowatt hour of electric energy

13 [generated] DISTRIBUTED in the State that is to be imposed on each electric company

14 in accordance with subsection (a) of this section.

15 (d) (1) Notwithstanding any other provision of this subtitle, the amount of

16 the surcharge for each account OF EACH RETAIL ELECTRIC CUSTOMER may not exceed

17 the lesser of 0.15 mill per kilowatt hour or $1,000 per month.

18 (2) The Department of Natural Resources shall credit against the amount

19 the Commission requires each electric company to pay into the Environmental Trust

20 Fund 1.5% of the total surcharge amount attributed to the electric company on the

21 basis of the amount of the electricity [generated] DISTRIBUTED in the State.

22 (e) The surcharge imposed under this subtitle shall terminate on June 30,

23 [2000] 2005.

24 Article - Natural Resources

25 3-302.

26 (a) There is an Environmental Trust Fund. For the purpose of this subtitle,

27 there is established as an added cost of [generation] ELECTRICITY DISTRIBUTED TO

28 RETAIL ELECTRIC CUSTOMERS WITHIN THE STATE, an environmental surcharge per

29 kilowatt hour of electric energy [generated] DISTRIBUTED in the State to be paid by

30 any electric company as defined in § 1-101 of the Public Utility Companies Article.

31 [This surcharge initially shall be assessed at 0.1 mill per kilowatt hour as of January

32 1, 1972.] The Public Service Commission shall impose the surcharge per kilowatt hour

33 of electric energy [generated] DISTRIBUTED TO RETAIL ELECTRIC CUSTOMERS

34 within the State and shall authorize the electric companies to add the full amount of

35 the surcharge to RETAIL ELECTRIC customers' bills. To the extent that the surcharge is

36 not collected from RETAIL ELECTRIC customers, the surcharge shall be deemed a cost

37 of [generation] DISTRIBUTION and shall be allowed and computed as such, together

38 with other allowable expenses, for rate-making purposes. Revenues from the surcharge

39 shall be collected by the Comptroller and placed in the Fund.

52 SENATE BILL 300

1 (b) (1) The Secretary, in consultation with the Director of the Maryland

2 Energy Administration, annually shall coordinate the preparation of a budget

3 required to carry out the provisions of this subtitle. Upon approval of the budget by the

4 General Assembly, the Public Service Commission shall establish the amount of the

5 surcharge per kilowatt hour for the fiscal year beginning July 1, 1972, and for each

6 subsequent fiscal year.

7 (2) Notwithstanding any other provisions of this subtitle, the amount of

8 the surcharge for each account FOR EACH RETAIL ELECTRIC CUSTOMER may not

9 exceed the lesser of 0.15 [mil] MILL per kilowatt hour or $1,000 per month and the

10 surcharge may not continue beyond Fiscal Year [2000] 2005.

11 (3) The Comptroller shall maintain the method of collection of the

12 surcharge from the companies and the collections shall accrue to the Fund. The

13 Department shall credit against the amount required to be paid into the

14 Environmental Trust Fund by each electric company an amount equal to 1 1/2% of the

15 total surcharge attributed to each company on the basis of the electricity [generated]

16 DISTRIBUTED within Maryland.

17 (c) The Secretary shall administer the Fund. The Fund is subject to the

18 provisions for financial management and budgeting established by the Department of

19 Budget and Management. The moneys in the Fund shall be used to carry out the

20 provisions of this subtitle as provided for in the budget, except that 10% of all moneys

21 accruing to the Fund from July 1, 1978 through June 30, 1983 shall be used to

22 supplement funds necessary to carry out the duties of the People's Counsel of the Public

23 Service Commission. The People's Counsel shall submit an annual budget of necessary

24 supplemental funds to the Department to be incorporated in the Department's budget.

25 For the purposes of this subtitle, the Secretary, in consultation with the Director of the

26 Maryland Energy Administration, may execute appropriate contracts with any State

27 or federal agency, research organization, industry, or academic institution to conduct

28 the necessary research, construct or acquire, or both, real property including physical

29 predictive models, laboratories, buildings, land, and appurtenances, or support the

30 technological development of extraordinary systems related to power plants designed to

31 minimize environmental impact. [He] THE SECRETARY may utilize available

32 expertise in any other State unit in the development, execution, and management of

33 contracts and agreements on projects relating to their areas of prime responsibility.

34 (d) (1) The Maryland Energy Administration shall receive administrative

35 and fiscal support from the Fund for studies relating to the conservation or production

36 of electric energy.

37 (2) Fiscal support to the Maryland Energy Administration from the Fund

38 may not exceed $250,000 in any fiscal year.

39 (e) The Legislative Auditor shall conduct post audits of a fiscal and

40 compliance nature of the Fund and of the appropriations and expenditures made for

41 the purposes of this subtitle. The cost of the fiscal portion of the post audit

42 examinations shall be an operating cost of the Fund.

53 SENATE BILL 300

1 SECTION 4. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall

2 take effect July 1, 2000, provided that, if the Public Service Commission delays

3 implementation of customer choice in accordance with the provisions of § 7-510(b) of

4 the Public Utility Companies Article, the surcharge funding the Environmental Trust

5 Fund pursuant to § 7-203 of the Public Utility Companies Article shall continue to be

6 collected as a per kilowatt hour surcharge on electricity generated within the State

7 until customer choice is implemented.

8 SECTION 5. AND BE IT FURTHER ENACTED, That the Governor is

9 authorized to submit a budget amendment for the fiscal year ending June 30, 2000,

10 transferring $6,000,000 from the Revenue Stabilization Fund to be used for the

11 purpose of educating consumers on electric utility industry restructuring. In

12 accordance with § 7-505(f) of the Public Utility Companies Article, the Public Service

13 Commission shall use the allocated funds during the fiscal year ending June 30, 2000,

14 to implement a consumer education program informing customers of changes in the

15 electric industry. On or before September 1, 1999, the Public Service Commission shall

16 report to the Governor and, subject to § 2-1246 of the State Government Article, to the

17 General Assembly on: (1) the recommended funding level, between $3,000,000 and

18 $6,000,000, for the consumer education program for the fiscal year ending June 30,

19 2001; (2) the recommended method of funding for the program; (3) if applicable, the

20 impact that the funding method will have on customers' costs for electricity; and (4) the

21 content of the media used in the program. On or before September 1, 2000, the Public

22 Service Commission shall report to the Governor and, subject to § 2-1246 of the State

23 Government Article, to the General Assembly on: (1) the recommended funding level,

24 between $3,000,000 and $6,000,000, for the consumer education program for the fiscal

25 year ending June 30, 2002; (2) the recommended method of funding for the

26 program;(3) if applicable, the impact that the funding method will have on customers'

27 costs for electricity; and (4) the content of the media used in the program.

28 SECTION 6. AND BE IT FURTHER ENACTED, That, on or before December 1,

29 1999, the Public Service Commission shall report to the Governor and, subject to §

30 2-1246 of the State Government Article, to the General Assembly on: (1) the

31 determinations of any transition costs or any transition benefits for the various electric

32 companies; and (2) the status of the Public Service Commission's considerations

33 regarding the functional, operational, structural, or legal separation between electric

34 companies' regulated businesses and their nonregulated businesses or nonregulated

35 affiliates.

36 SECTION 7. AND BE IT FURTHER ENACTED, That if any provision of this

37 Act or the application thereof to any person or circumstance is held invalid for any

38 reason in a court of competent jurisdiction, the invalidity does not affect other

39 provisions or any other application of this Act which can be given effect without the

40 invalid provision or application, and for this purpose the provisions of this Act are

41 declared severable.

42 SECTION 8. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall

43 take effect on the later of July 1, 2000, and the initial implementation date that the

44 Public Service Commission determines for investor-owned utilities under § 7-510(b)(1)

45 of the Public Utility Companies Article, as enacted by this Act.

54 SENATE BILL 300

1 SECTION 9. AND BE IT FURTHER ENACTED, That, except as provided in

2 Sections 4 and 8 of this Act, this Act shall take effect July 1, 1999.

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

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

5 Article - Public Utility Companies

6 1-101.

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

8 (B) (1) "AGGREGATOR" MEANS AN ENTITY OR, INCLUDING A COUNTY OR

9 MUNICIPAL CORPORATION, OR AN INDIVIDUAL THAT ACTS ON BEHALF OF A

10 CUSTOMER TO PURCHASE ELECTRICITY.

11 (2) "AGGREGATOR" DOES NOT INCLUDE:

12 (I) AN ENTITY OR INDIVIDUAL THAT PURCHASES ELECTRICITY

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

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

15 DISTRIBUTION TERRITORY.

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

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

18 TITLE TO ELECTRICITY.

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

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

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

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

23 (2) "Common carrier" includes:

24 (i) an airline company;

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

26 motor bus company;

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

28 company, or ferry company;

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

30 company;

31 (v) a taxicab company;

32 (vi) a toll bridge company; and

55 SENATE BILL 300

1 (vii) a transit company.

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

3 (i) a county revenue authority;

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

5 revenue authority; or

6 (iii) a vanpool or launch service.

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

8 person that owns a company individually or as an agent, trustee, or receiver of a

9 company.

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

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

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

13 electricity;

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

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

16 streets for furnishing or distributing electricity.

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

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

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

20 ELECTRIC CUSTOMER.

21 [(3)] (2) "Electric company" does not include [a company that generates

22 or transmits electricity exclusively for its own use]:

23 (I) THE FOLLOWING PERSONS WHO SUPPLY ELECTRICITY AND

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

25 THE OCCUPANTS:

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

27 MANAGES THE INTERNAL DISTRIBUTION SYSTEM SERVING THE BUILDING; OR

28 2. A LESSEE/OPERATOR WHO HOLDS A LEASEHOLD

29 INTEREST IN AND MANAGES THE INTERNAL DISTRIBUTION SYSTEM SERVING THE

30 BUILDING;

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

32 ELECTRICITY; OR

56 SENATE BILL 300

1 (III) A PERSON WHO TRANSMITS OR DISTRIBUTES ELECTRICITY

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

3 PRIMARILY INCIDENTAL TO A PRIMARILY LANDLORD-TENANT RELATIONSHIP.

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

5 by an electric company and used or to be used for or in connection with electric

6 service.

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

8 (I) WHO SELLS:

9 1. ELECTRICITY OR;

10 2. ELECTRICITY SUPPLY SERVICES OR;

11 3. COMPETITIVE BILLING SERVICES; OR

12 4. COMPETITIVE METERING SERVICES; OR

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

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

15 CUSTOMER.

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

17 AGGREGATOR, BROKER, AND MARKETER.

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

19 (I) THE FOLLOWING PERSONS WHO SUPPLY ELECTRICITY AND

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

21 THE OCCUPANTS:

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

23 MANAGES THE INTERNAL DISTRIBUTION SYSTEM SERVING THE BUILDING; OR

24 2. A LESSEE/OPERATOR WHO HOLDS A LEASEHOLD

25 INTEREST IN AND MANAGES THE INTERNAL DISTRIBUTION SYSTEM SERVING THE

26 BUILDING; OR

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

28 ELECTRICITY.

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

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

31 streets for furnishing or distributing gas; or

32 (ii) owns a gas plant and:

57 SENATE BILL 300

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

2 natural gas; or

3 2. manufactures gas for distribution or sale.

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

5 business of supplying gas for other than municipal purposes.

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

7 pipeline system, other than piping within a building:

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

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

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

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

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

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

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

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

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

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

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

19 ELECTRICITY AS AN INTERMEDIARY FOR SALE TO A CUSTOMER.

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

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

22 TRANSMITTING OR DISTRIBUTING ELECTRICITY FOR PURPOSES OTHER THAN END

23 USE BY THE MUNICIPAL CORPORATION.

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

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

26 COMPANY'S TRANSMISSION OR DISTRIBUTION SYSTEM; AND

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

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

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

30 GENERATED BY FOR THE FACILITY EACH YEAR.

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

32 control.

33 [(m)] (R) (S) "Person" means an individual, receiver, trustee, guardian,

34 personal representative, fiduciary, or representative of any kind and any partnership,

35 firm, association, corporation, or other entity.

58 SENATE BILL 300

1 [(n)] (S) (T) "Plant" includes all material, equipment, and property owned

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

3 utility service.

4 [(o)] (T) (U) "Proceeding" includes an action, complaint, hearing,

5 investigation, trial, appeal, order, or similar matter pending before, made, or

6 conducted by an official body.

7 [(p)] (U) (V) "Public service company" means a common carrier company,

8 electric company, gas company, sewage disposal company, steam heating company,

9 telegraph company, telephone company, water company, or any combination of public

10 service companies.

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

12 manner.

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

14 connection with a railroad.

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

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

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

18 public service company that affects:

19 (i) the amount of a charge; or

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

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

22 material.

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

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

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

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

27 (1) SOLAR;

28 (2) WIND;

29 (3) TIDAL;

30 (4) GEOTHERMAL;

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

32 RECOVERY;

33 (6) HYDROELECTRIC FACILITIES;

59 SENATE BILL 300

1 (7) DIGESTER GAS; AND

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

3 OR FACILITY.

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

5 ELECTRICITY FOR END USE IN THE STATE.

6 (2) "RETAIL ELECTRIC CUSTOMER" EXCLUDES:

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

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

9 SYSTEM SERVING THE BUILDING AND SUPPLIES ELECTRICITY AND ELECTRICITY

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

11 OCCUPANTS; AND

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

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

14 CONSUMED BY THAT PERSON OR ITS TENANTS.

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

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

17 [(u)] (BB) (CC) "Small rural electric cooperative" means an electric company

18 that:

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

20 company;

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

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

23 [(v)] (CC) (DD) "State" means:

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

25 or

26 (2) the District of Columbia.

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

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

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

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

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

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

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

60 SENATE BILL 300

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

2 driver; and

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

4 between points along public streets as the passengers request.

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

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

7 Title 11 of the Transportation Article.

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

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

10 communications; or

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

12 [(aa)] (HH) (II) "Telegraph lines" means the material, equipment, and

13 property owned by a telegraph company and used or to be used for or in connection

14 with telegraph service.

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

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

17 telephone or teletype communications; or

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

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

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

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

22 telephone service.

23 [(dd)] (KK) (LL) "Toll bridge" means a bridge operated by a person authorized

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

25 [(ee)] (LL) (MM) (1) "Transportation of persons for hire" means the

26 transportation of persons by:

27 (i) regularly scheduled operations;

28 (ii) charter or contract operations; or

29 (iii) tour or sightseeing operations.

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

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

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

33 members.

61 SENATE BILL 300

1 [(ff)] (MM) (NN) "Water company" means a public service company that owns a

2 water plant and sells or distributes water for gain.

3 [(gg)] (NN) (OO) "Water plant" means the material, equipment, and property

4 owned by a water company and used or to be used for or in connection with water

5 service.

6 2-118.

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

8 or towing and lightering companies.

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

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

11 long-range plans to provide REGULATED service.

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

13 include in the long-range plan [adequate] COST-EFFECTIVE provisions to promote

14 energy conservation to decrease or moderate electric and, as appropriate, natural gas

15 demand FOR REGULATED SERVICE from customers.

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

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

18 of other public service companies and to provisions for research and development to

19 ensure adequate service.

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

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

22 opportunity for public comment.

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

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

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

26 4-201.

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

28 charge just and reasonable rates for the [utility] REGULATED services that it

29 renders.

30 4-202.

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

32 of its rates and charges FOR ITS REGULATED SERVICES AND FOR STANDARD OFFER

33 SERVICE AS PROVIDED IN § 7-505(B)(9) OF THIS ARTICLE.

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

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

36 REGULATED SERVICES;

62 SENATE BILL 300

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

2 (3) post the tariff schedules to make the tariff schedules readily

3 accessible to and convenient for inspection by the public.

4 7-201.

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

6 § 3-304 of the Natural Resources Article, the Commission shall assemble and

7 evaluate annually the long-range plans of the State's electric companies regarding

8 generating needs and the means to meet those needs.

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

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

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

12 within the State.

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

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

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

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

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

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

19 on current and projected efforts by electric companies and the Commission to

20 moderate overall electrical generation demand and peak demand through the electric

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

22 companies' use of alternative energy sources, including cogeneration.

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

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

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

26 (2) The evaluation of investments shall include:

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

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

29 company financing for the installation of energy conservation materials and

30 renewable energy devices;

31 (ii) utilization of renewable energy sources;

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

33 wastes; and

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

63 SENATE BILL 300

1 7-207.

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

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

4 site or route of a bulk power supply facility.

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

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

7 geological data, including any boring that is necessary to ascertain foundation

8 conditions.

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

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

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

12 with the construction, unless] UNLESS a certificate of public convenience and

13 necessity for the construction is first obtained from the Commission:

14 (1) A PERSON MAY NOT BEGIN CONSTRUCTION IN THE STATE OF A

15 GENERATING STATION OR EXERCISE A RIGHT OF CONDEMNATION IN CONNECTION

16 WITH THE CONSTRUCTION; AND

17 (2) AN ELECTRIC COMPANY MAY NOT BEGIN CONSTRUCTION OF AN

18 OVERHEAD TRANSMISSION LINE THAT IS DESIGNED TO CARRY A VOLTAGE IN

19 EXCESS OF 69,000 VOLTS OR EXERCISE A RIGHT OF CONDEMNATION IN CONNECTION

20 WITH THE CONSTRUCTION.

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

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

23 Planning and to all other interested persons.

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

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

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

27 plans or programs.

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

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

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

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

32 proposed to be located.

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

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

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

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

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

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

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

40 corporation affected by the application.

64 SENATE BILL 300

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

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

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

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

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

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

7 of public convenience and necessity only after due consideration of:

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

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

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

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

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

13 (i) [the stability and reliability of the electric system;

14 (ii)] economics;

15 [(iii)] (II) esthetics;

16 [(iv)] (III) historic sites;

17 [(v)] (IV) aviation safety as determined by the Maryland Aviation

18 Administration and the administrator of the Federal Aviation Administration;

19 [(vi)] (V) when applicable, air and water pollution; and

20 [(vii)] (VI) the availability of means for the required timely disposal

21 of wastes produced by any generating station.

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

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

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

25 CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY ONLY AFTER DUE

26 CONSIDERATION OF THE FOLLOWING ADDITIONAL FACTORS:

27 (1) THE NEED TO MEET EXISTING AND FUTURE DEMAND FOR ELECTRIC

28 SERVICE; AND

29 (2) THE EFFECT OF THE OVERHEAD TRANSMISSION LINE ON THE

30 STABILITY AND RELIABILITY OF THE ELECTRIC SYSTEM.

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

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

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

65 SENATE BILL 300

1 (i) the Federal Aviation Administration determines that the

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

3 navigation; and

4 (ii) the Maryland Aviation Administration concurs in that

5 determination.

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

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

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

9 restriction.

10 7-211.

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

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

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

14 companies, and electric companies.

15 (b) The Commission shall:

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

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

18 encourage and promote the efficient use and conservation of energy; and

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

20 appropriate circumstances, reasonable financial incentives for gas companies and

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

22 efficient use and conservation of energy.

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 THE FOLLOWING CRITERIA:

34 (I) THE IMPACT ON JOBS;

35 (II) THE IMPACT ON THE ENVIRONMENT;

36 (III) THE IMPACT ON RATES; AND

66 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 AND

23 CUSTOMERS TO UTILIZE AND INTERCONNECT WITH THE ELECTRIC DISTRIBUTION

24 SYSTEM ON A NONDISCRIMINATORY BASIS AT RATES, TERMS, AND CONDITIONS OF

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

26 DISTRIBUTE ELECTRICITY FROM A ELECTRICITY SUPPLIER TO A CUSTOMER, UNDER

27 WHICH A CUSTOMER HAS THE OPPORTUNITY TO PURCHASE ELECTRICITY FROM THE

28 CUSTOMER'S CHOICE OF LICENSED ELECTRICITY SUPPLIERS.

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

30 ELECTRIC COMPANY WAS PROVIDING ELECTRIC TRANSMISSION OR DISTRIBUTION

31 SERVICES TO CUSTOMERS ON JULY 1, 1999, SUBJECT TO MODIFICATION AS

32 SPECIFIED IN § 7-210 OF THIS TITLE.

33 (H) "INITIAL IMPLEMENTATION DATE" MEANS:

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

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

36 ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC UTILITIES; OR

67 SENATE BILL 300

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

2 UNDER § 7-510(B) OF THIS SUBTITLE.

3 (I) "INTANGIBLE TRANSITION CHARGE" MEANS A NONBYPASSABLE RATE,

4 CHARGE, OR SIMILAR APPROPRIATE MECHANISM FOR THE PROVISION,

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

6 IMPOSED FOR THE RECOVERY OF QUALIFIED TRANSITION COSTS UNDER A

7 QUALIFIED RATE ORDER OF THE COMMISSION.

8 (J) "INTANGIBLE TRANSITION PROPERTY" MEANS THE RIGHT, TITLE, AND

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

10 INCLUDING:

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

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

13 AMOUNTS ARISING FROM THE IMPOSITION OF INTANGIBLE TRANSITION CHARGES

14 UNDER THE ORDER; AND

15 (2) IN THE HANDS OF AN ASSIGNEE:

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

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

18 CHARGES AUTHORIZED IN THE QUALIFIED RATE ORDER; BUT

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

20 (K) (1) "PUBLIC PURPOSE PROGRAM" MEANS A PROGRAM IMPLEMENTED

21 WITH THE INTENTION OF FURTHERING A PUBLIC PURPOSE.

22 (2) "PUBLIC PURPOSE PROGRAM" INCLUDES:

23 (1) (I) A UNIVERSAL SERVICE PROGRAM;

24 (2) (II) A PROGRAM ENCOURAGING RENEWABLE ENERGY RESOURCES;

25 OR

26 (3) ANOTHER PROGRAM IMPLEMENTED WITH THE INTENTION OF

27 FURTHERING A PUBLIC PURPOSE

28 (III) A DEMAND SIDE MANAGEMENT OR OTHER ENERGY

29 EFFICIENCY OR CONSERVATION PROGRAM; AND

30 (IV) A CONSUMER EDUCATION PROGRAM.

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

32 APPROVING ONE OR MORE INTANGIBLE TRANSITION CHARGES.

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

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

35 SUBTITLE.

68 SENATE BILL 300

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

2 PARTICIPATION OR BENEFICIAL INTEREST, OR OTHER EVIDENCE OF INDEBTEDNESS

3 OR OWNERSHIP, APPROVED IN A QUALIFIED RATE ORDER AND ISSUED UNDER AN

4 EXECUTED TRUST INDENTURE OR OTHER AGREEMENT OF AN ELECTRIC COMPANY

5 OR ASSIGNEE, AND WHICH IS SECURED BY, EVIDENCES OWNERSHIP INTEREST IN, OR

6 IS PAYABLE FROM INTANGIBLE TRANSITION PROPERTY.

7 (O) "TRANSITION COSTS" MEANS A COST, LIABILITY, OR INVESTMENT THAT:

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

9 UNDER RATE-OF-RETURN REGULATION, INCLUDING RETAIL RATES FOR THE

10 PROVISION OF ELECTRIC SERVICE, BUT WHICH MAY NOT BE RECOVERABLE IN A

11 RESTRUCTURED ELECTRICITY SUPPLY MARKET,; OR

12 (2) WHICH ARISE AS A RESULT OF ELECTRIC INDUSTRY

13 RESTRUCTURING; AND

14 (2) IS RELATED TO THE CREATION OF CUSTOMER CHOICE.

15 (P) (1) "UNIVERSAL SERVICE PROGRAM" MEANS A POLICY, PROTECTION, OR

16 SERVICE THAT HELPS LOW-INCOME CUSTOMERS MAINTAIN ELECTRIC SERVICE.

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

18 ASSISTANCE AND PAYMENT PROGRAMS, TERMINATION OF SERVICE PROTECTION,

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

20 MANAGE ENERGY CONSUMPTION IN A COST-EFFECTIVE MANNER.

21 7-502. RESERVED.

22 7-503. RESERVED.

23 PART II. ELECTRIC INDUSTRY RESTRUCTURING ENABLED.

24 7-504.

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

26 SUBTITLE IS TO:

27 (1) MODIFY AND CLARIFY EXISTING LAW TO ESTABLISH CUSTOMER

28 CHOICE OF ELECTRICITY SUPPLY AND ELECTRICITY SUPPLY SERVICES;

29 (2) CREATE COMPETITIVE RETAIL ELECTRICITY SUPPLY AND

30 ELECTRICITY SUPPLY SERVICES MARKETS; AND

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

32 ELECTRICITY;

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

34 (5) ENSURE THAT FEDERAL AND STATE ENVIRONMENTAL STANDARDS

35 ARE NOT COMPROMISED.

69 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 BE FAIR TO CUSTOMERS, ELECTRIC COMPANY

8 INVESTORS, CUSTOMERS OF MUNICIPAL ELECTRIC UTILITIES, ELECTRIC

9 COMPANIES, AND ELECTRICITY SUPPLIERS.

10 (2) THE COMMISSION SHALL CONSIDER THE RESTRUCTURING PLANS OF

11 MUNICIPAL ELECTRIC UTILITIES, AS SPECIFIED UNDER § 7-510 OF THIS SUBTITLE.

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

13 REGULATIONS REQUIRED UNDER THIS SUBSECTION BEFORE THE IMPLEMENTATION

14 OF CUSTOMER CHOICE.

15 (2) (I) THE COMMISSION MAY SHALL ORDER EACH ELECTRIC

16 COMPANY, IN CONJUNCTION WITH THE COMMISSION, THE OFFICE OF PEOPLE'S

17 COUNSEL, AND OTHER PARTIES, TO IMPLEMENT A CONSUMER EDUCATION

18 PROGRAM INFORMING CUSTOMERS OF CHANGES IN THE ELECTRIC INDUSTRY.

19 (II) ANY BOARD OR GROUP CREATED UNDER SUBPARAGRAPH (I) OF

20 THIS PARAGRAPH SHALL INCLUDE AT LEAST 2 MEMBERS OF THE PUBLIC.

21 (III) THIS PARAGRAPH SHALL BE OF NO FORCE AND EFFECT AFTER

22 JUNE 30, 2002.

23 (2) (3) THE COMMISSION MAY SHALL ORDER UNIVERSAL SERVICE

24 PROGRAMS TO BE MADE AVAILABLE IN EACH ELECTRIC COMPANY'S DISTRIBUTION

25 TERRITORY, ON A STATEWIDE BASIS, TO BENEFIT LOW-INCOME CUSTOMERS, IN

26 ACCORDANCE WITH § 7-512.1 OF THIS SUBTITLE.

27 (3) (4) THE COMMISSION MAY SHALL ORDER AN ELECTRIC COMPANY

28 TO ADOPT POLICIES AND PRACTICES REASONABLY DESIGNED TO:

29 (I) PREVENT UNDUE DISCRIMINATION IN FAVOR OF THE

30 ELECTRIC COMPANY'S OWN ELECTRICITY SUPPLY, OTHER SERVICES, DIVISIONS, OR

31 AFFILIATES, IF ANY; AND

32 (II) PREVENT ANY OTHER FORMS OF SELF-DEALING OR PRACTICES

33 THAT COULD RESULT IN NONCOMPETITIVE ELECTRICITY PRICES TO CUSTOMERS.

34 (4) (5) (I) THE COMMISSION MAY SHALL, BY REGULATION OR

35 ORDER, REQUIRE EACH ELECTRIC COMPANY AND ELECTRICITY SUPPLIER TO

36 PROVIDE ADEQUATE AND ACCURATE CUSTOMER INFORMATION TO EACH CUSTOMER

37 ON THE AVAILABLE ELECTRIC SERVICES OF THE ELECTRIC COMPANY OR

38 ELECTRICITY SUPPLIER, INCLUDING DISCLOSURE ON AN ANNUAL BASIS OF A

39 UNIFORM COMMON SET OF INFORMATION ABOUT:

70 SENATE BILL 300

1 1. THE FUEL MIX OF THE ELECTRICITY PURCHASED BY

2 CUSTOMERS, INCLUDING CATEGORIES OF ELECTRICITY FROM RENEWABLE ENERGY

3 RESOURCES, COAL, NATURAL GAS, NUCLEAR, OIL, HYDROELECTRIC, SOLAR,

4 BIOMASS, WIND, AND OTHER RESOURCES, OR DISCLOSURE OF A REGIONAL FUEL MIX

5 AVERAGE; AND

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

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

8 REGIONAL FUEL MIX AVERAGE.

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

10 AN ELECTRICITY SUPPLIER TO PROVIDE DOCUMENTATION SUPPORTING THE

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

12 (5) (6) (I) THE COMMISSION SHALL, BY REGULATION OR ORDER,

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

14 SERVICES INTO STANDARDIZED CATEGORIES THAT DETERMINED BY THE

15 COMMISSION DETERMINES..

16 (II) THE COMMISSION MAY REBUNDLE RATES OR CHARGES FOR

17 CUSTOMER BILLING AND PAYMENT PURPOSES.

18 (7) AN ELECTRIC COMPANY OR AN ELECTRICITY SUPPLIER MAY NOT

19 DISCLOSE BILLING, PAYMENT, CREDIT, AND USAGE INFORMATION WITHOUT THE

20 PERMISSION OF THE CUSTOMER.

21 (8) AN ELECTRICITY SUPPLIER MAY NOT ENGAGE IN MARKETING,

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

23 DECEPTIVE.

24 (6) (9) THE COMMISSION SHALL DETERMINE THE TERMS,

25 CONDITIONS, AND RATES OF STANDARD OFFER SERVICE UNDER IN ACCORDANCE

26 WITH:

27 (I) TITLE 4 OF THIS ARTICLE; OR

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

29 (7) (10) IN CONNECTION WITH § 7-513 OF THIS SUBTITLE, THE

30 COMMISSION MAY NOT REQUIRE AN ELECTRIC COMPANY TO DIVEST ITSELF OF A

31 GENERATION ASSET OR PROHIBIT AN ELECTRIC COMPANY FROM DIVESTING ITSELF

32 VOLUNTARILY OF A GENERATION ASSET.

33 (8) (11) (I) ON OR BEFORE JULY 1, 2000, THE COMMISSION SHALL, BY

34 REGULATION OR ORDER, ISSUE ORDERS OR ADOPT REGULATIONS REASONABLY

35 DESIGNED TO ENSURE THE CREATION OF COMPETITIVE ELECTRICITY SUPPLY AND

36 ELECTRICITY SUPPLY SERVICES MARKETS, WITH APPROPRIATE CUSTOMER

37 SAFEGUARDS. IN DOING SO

71 SENATE BILL 300

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

2 CONSIDER, AMONG OTHER FACTORS, THE FOLLOWING SAFEGUARDS REQUIRE:

3 (I) 1. AN APPROPRIATE CODE OF CONDUCT BETWEEN THE

4 ELECTRIC COMPANY AND ANY AFFILIATE PROVIDING ELECTRICITY SUPPLY AND

5 ELECTRICITY SUPPLY SERVICES IN THE STATE;

6 (II) 2. ACCESS BY ELECTRICITY SUPPLIERS AND CUSTOMERS TO

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

8 NONDISCRIMINATORY BASIS;

9 3. APPROPRIATE COMPLAINT AND ENFORCEMENT

10 PROCEDURES; AND

11 4. ANY OTHER SAFEGUARDS DEEMED NECESSARY BY THE

12 COMMISSION TO ENSURE THE CREATION AND MAINTENANCE OF A COMPETITIVE

13 ELECTRICITY SUPPLY AND ELECTRICITY SUPPLY SERVICES MARKET.

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

15 CONSIDER, AMONG OTHER FACTORS, FUNCTIONAL, OPERATIONAL, STRUCTURAL, OR

16 LEGAL SEPARATION BETWEEN THE ELECTRIC COMPANY'S REGULATED BUSINESSES

17 AND ITS NONREGULATED BUSINESSES OR NONREGULATED AFFILIATES; AND

18 (IV) APPROPRIATE COMPLAINT AND ENFORCEMENT PROCEDURES.

19 (12) NOTHING IN THIS TITLE MAY BE CONSTRUED AS PREVENTING THE

20 APPLICATION OF STATE AND FEDERAL CONSUMER PROTECTION AND ANTITRUST

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

22 SUPPLIERS.

23 (9) (13) THE COMMISSION, IN CONSULTATION WITH THE DEPARTMENT

24 OF THE ENVIRONMENT, SHALL ADOPT APPROPRIATE MEASURES TO MAINTAIN

25 ENVIRONMENTAL STANDARDS, ADAPT EXISTING PROGRAMS, AND DEVELOP NEW

26 PROGRAMS AS APPROPRIATE TO ENSURE THAT FEDERAL AND STATE

27 ENVIRONMENTAL PROTECTION STANDARDS ARE NOT COMPROMISED IN A

28 COMPETITIVE ELECTRICITY MARKET.

29 (14) (I) AN ELECTRIC COMPANY SHALL COMPLY WITH ALL

30 REQUIREMENTS OF THE COMMISSION IN CONDUCTING REGULATED OPERATIONS IN

31 COMPLIANCE WITH THIS ARTICLE. IN ADDITION,

32 (II) THE COMMISSION SHALL REQUIRE EACH ELECTRIC COMPANY

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

34 BE DETERMINED BY THE COMMISSION TO PREVENT REGULATED SERVICE

35 CUSTOMERS FROM SUBSIDIZING THE SERVICES OF UNREGULATED BUSINESSES OR

36 AFFILIATES OF THE ELECTRIC COMPANY. HOWEVER, NOTHING IN THIS SUBTITLE

37 MAY BE CONSTRUED TO GIVE THE COMMISSION THE AUTHORITY TO REGULATE AN

38 AFFILIATE OF AN ELECTRIC COMPANY WITH RESPECT TO ANY NONREGULATED

39 BUSINESS OR ACTIVITIES OF THE AFFILIATE.

72 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 FREEZE OR CAP, FOR 4 YEARS AFTER

21 INITIAL 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) THE CAP REQUIRED UNDER PARAGRAPH (1) OF THIS

28 SUBSECTION DOES NOT APPLY TO THE RECOVERY OF COSTS ADDED AFTER JANUARY

29 1, 2000, IN ACCORDANCE WITH § 7-512(C) OF THIS SUBTITLE.

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

31 SUBSECTION APPLIES TO THE RECOVERY OF:

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

33 SUBTITLE; AND

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

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


73 SENATE BILL 300

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

2 FREEZE OR CAP FOR A LONGER DIFFERENT TIME PERIOD OR AN ALTERNATIVE PRICE

3 PROTECTION PLAN THAT THE COMMISSION DETERMINES IS EQUALLY PROTECTIVE

4 OF RATEPAYERS.

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

6 SUBSECTION, THE COMMISSION SHALL REDUCE RESIDENTIAL RATES FOR EACH

7 INVESTOR-OWNED ELECTRIC COMPANY BY A MINIMUM OF 3% OF THE GENERATION

8 PORTION OF BASE RATES, AS MEASURED ON JUNE 30, 1999.

9 2. THE REDUCTION REQUIRED UNDER SUB-SUBPARAGRAPH

10 1 OF THIS SUBPARAGRAPH SHALL BEGIN ON THE INITIAL IMPLEMENTATION DATE

11 AND REMAIN IN EFFECT FOR 4 YEARS.

12 3. THE COMMISSION SHALL DETERMINE THE ALLOCATION

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

14 DISTRIBUTION RESIDENTIAL RATE COMPONENTS.

15 (II) IN ACHIEVING THE RATE REDUCTION REQUIRED UNDER

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

17 1. THE EXPIRATION OF ANY SURCHARGE;

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

19 3. COST OF SERVICE DETERMINATIONS ORDERED BY THE

20 COMMISSION;

21 4. NET TRANSITION COSTS OR BENEFITS; AND

22 5. THE EFFECT ON THE COMPETITIVE ELECTRICITY SUPPLY

23 MARKET.

24 (III) THE COMMISSION MAY INCREASE OR DECREASE THE ACTUAL

25 RATE REDUCTION REQUIRED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH OR ALLOW

26 THE RECOVERY OF ANY EXTRAORDINARY COSTS BASED ON THE CIRCUMSTANCES OF

27 AN INDIVIDUAL ELECTRIC COMPANY IF THE COMMISSION DETERMINES THAT THE

28 ACTION IS NECESSARY AND IN THE PUBLIC INTEREST.

29 (IV) IN DETERMINING THE RATE REDUCTION REQUIRED UNDER

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

31 RATES FOR NONRESIDENTIAL CUSTOMERS.

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

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

34 EFFECT A SETTLEMENT THAT THE COMMISSION DETERMINES IS EQUALLY

35 PROTECTIVE OF RATEPAYERS.

74 SENATE BILL 300

1 7-506.

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

3 AND BE RESPONSIBLE FOR DISTRIBUTION SERVICES IN THE TERRITORY.

4 (B) THE ELECTRIC COMPANY SHALL PROVIDE DISTRIBUTION SERVICES IN ITS

5 DISTRIBUTION TERRITORY TO ALL CUSTOMERS AND ELECTRICITY SUPPLIERS ON

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

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

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

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

10 REGULATIONS OF THE COMMISSION.

11 (D) THE ELECTRIC COMPANY MUST CONNECT CUSTOMERS AND DELIVER

12 ELECTRICITY ON BEHALF OF ELECTRICITY SUPPLIERS CONSISTENT WITH THE

13 PROVISIONS OF THIS ARTICLE.

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

15 UNDER § 7-510(C) OF THIS SUBTITLE.

16 7-507.

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

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

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

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

21 PERSON HOLDS A LICENSE ISSUED BY THE COMMISSION.

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

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

24 THE COMMISSION;

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

26 (3) CONTAIN INFORMATION THAT THE COMMISSION REQUIRES,

27 INCLUDING:

28 (I) PROOF OF TECHNICAL AND MANAGERIAL COMPETENCE;

29 (II) PROOF OF COMPLIANCE WITH ALL APPLICABLE

30 REQUIREMENTS OF THE FEDERAL ENERGY REGULATORY COMMISSION, AND ANY

31 INDEPENDENT SYSTEM OPERATOR OR REGIONAL OR SYSTEM TRANSMISSION

32 OPERATOR TO BE USED BY THE LICENSEE;

33 (III) A CERTIFICATION OF COMPLIANCE WITH APPLICABLE

34 FEDERAL AND STATE ENVIRONMENTAL LAWS AND REGULATIONS THAT RELATE TO

35 THE GENERATION OF ELECTRICITY; AND

36 (IV) PAYMENT OF THE APPLICABLE LICENSING FEE.

75 SENATE BILL 300

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

2 (1) REQUIRE PROOF OF FINANCIAL INTEGRITY;

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

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

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

6 INTEGRITY;

7 (3) REQUIRE A LICENSEE TO:

8 (I) PROVIDE PROOF THAT IT HAS REGISTERED IS QUALIFIED TO

9 DO BUSINESS IN THE STATE WITH THE DEPARTMENT OF ASSESSMENTS AND

10 TAXATION; AND

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

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

13 INTEREST, WHICH MAY INCLUDE DIFFERENT REQUIREMENTS FOR ELECTRICITY

14 SUPPLIERS THAT SERVE ONLY LARGE CUSTOMERS.

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

16 WITHOUT PRIOR COMMISSION APPROVAL.

17 (E) THE COMMISSION MAY SHALL ADOPT REGULATIONS OR ISSUE ORDERS

18 TO:

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

20 SUPPLIERS FROM ANTICOMPETITIVE AND ABUSIVE PRACTICES; AND

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

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

23 ACCURATE CUSTOMER INFORMATION TO ENABLE CUSTOMERS TO MAKE INFORMED

24 CHOICES REGARDING THE PURCHASE OF ANY ELECTRICITY SERVICES OFFERED BY

25 THE ELECTRICITY SUPPLIER;

26 (3) ESTABLISH REASONABLE RESTRICTIONS ON TELEMARKETING;

27 (4) ESTABLISH PROCEDURES FOR CONTRACTING WITH CUSTOMERS;

28 (5) ESTABLISH REQUIREMENTS AND LIMITATIONS RELATING TO

29 DEPOSITS, BILLING, COLLECTIONS, AND CONTRACT CANCELLATIONS;

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

31 DELINQUENT ACCOUNT BY AN ELECTRICITY SUPPLIER TO THE STANDARD OFFER

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

33 (7) ESTABLISH PROCEDURES FOR DISPUTE RESOLUTION.

34 (F) ELECTRICITY BILLS, FOR COMPETITIVE AND REGULATED ELECTRIC

35 SERVICES, PROVIDED TO CONSUMERS MUST BE SHALL:

76 SENATE BILL 300

1 (1) BE PREPARED AND ISSUED IN ACCORDANCE WITH REGULATIONS OR

2 ORDERS OF THE COMMISSION; AND

3 (2) PROVIDE, IN ADDITION TO THE REQUIREMENTS OF § 7-505(B)(5) OF

4 THIS SUBTITLE AND SUBSECTION (E)(2) OF THIS SECTION, THE FOLLOWING

5 INFORMATION:

6 (I) THE IDENTITY AND PHONE NUMBER OF THE ELECTRIC

7 SUPPLIER OF THE SERVICE;

8 (II) SUFFICIENT INFORMATION TO EVALUATE PRICES AND

9 SERVICES; AND

10 (III) INFORMATION IDENTIFYING WHETHER THE PRICE IS

11 REGULATED OR COMPETITIVE.

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

13 UNIT MAY NOT MAKE ANY CHANGE IN THE ELECTRICITY SUPPLIER FOR A CUSTOMER

14 OR ADD A NEW CHARGE FOR A NEW OR EXISTING SERVICE OR OPTION WITHOUT

15 FIRST OBTAINING THE CUSTOMER'S PERMISSION.

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

17 ESTABLISHING PROCEDURES TO PREVENT UNAUTHORIZED SWITCHING THE

18 PRACTICES PROHIBITED UNDER PARAGRAPH (1) OF THIS SUBSECTION.

19 (H) (1) THE COMMISSION MAY REVOKE OR SUSPEND THE LICENSE OF AN

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

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

22 SOLICITING ADDITIONAL CUSTOMERS BY THE ELECTRICITY SUPPLIER, FOR JUST

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

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

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

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

27 (3) JUST CAUSE INCLUDES:

28 (I) INTENTIONALLY PROVIDING FALSE INFORMATION TO THE

29 COMMISSION;

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

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

32 PERMISSION;

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

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

35 (V) FAILING TO MAINTAIN FINANCIAL INTEGRITY;

36 (VI) VIOLATING A COMMISSION REGULATION OR ORDER; AND

77 SENATE BILL 300

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

2 ACCURATELY APPLICABLE STATE OR LOCAL TAXES;

3 (VIII) VIOLATING A PROVISION OF THE PUBLIC UTILITY COMPANIES

4 ARTICLE OR APPLICABLE CONSUMER PROTECTION LAW OF THE STATE;

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

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

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

8 FEDERAL AUTHORITY.

9 (I) (1) AN ELECTRICITY SUPPLIER OR PERSON SELLING OR OFFERING TO

10 SELL ELECTRICITY IN THE STATE IN VIOLATION OF THIS SECTION IS SUBJECT TO:

11 (I) A CIVIL PENALTY OF NOT MORE THAN $2,500 $10,000 FOR THE

12 VIOLATION; OR

13 (II) LICENSE REVOCATION OR SUSPENSION.

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

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

16 PENALTY. IN MAKING THIS DETERMINATION, THE COMMISSION SHALL CONSIDER:

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

18 THIS ARTICLE;

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

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

21 CHARGED IN ATTEMPTING TO ACHIEVE COMPLIANCE AFTER NOTIFICATION OF THE

22 VIOLATION.

23 (J) IN CONNECTION WITH A CONSUMER COMPLAINT OR COMMISSION

24 INVESTIGATION UNDER THIS SECTION, AN ELECTRICITY SUPPLIER SHALL PROVIDE

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

26 WHICH THE COMMISSION CONSIDERS NECESSARY TO RESOLVE THE MATTER AT

27 ISSUE.

28 (K) THE COMMISSION MAY ORDER THE ELECTRICITY SUPPLIER TO CEASE

29 ADDING OR SOLICITING ADDITIONAL CUSTOMERS OR TO CEASE SERVING

30 CUSTOMERS IN THE STATE.

31 (L) THE COMMISSION SHALL CONSULT WITH THE CONSUMER PROTECTION

32 DIVISION OF THE OFFICE OF THE ATTORNEY GENERAL BEFORE ISSUING

33 REGULATIONS DESIGNED TO PROTECT CONSUMERS.

34 (M) THE PEOPLE'S COUNSEL SHALL HAVE THE SAME AUTHORITY IN

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

36 TITLE 2 OF THIS ARTICLE.

78 SENATE BILL 300

1 (N) NOTHING IN THIS SUBTITLE MAY BE CONSTRUED TO AFFECT THE

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

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

4 COMMERCIAL LAW ARTICLE OR ANY OTHER APPLICABLE STATE LAW OR

5 REGULATION IN CONNECTION WITH THE ACTIVITIES OF RETAIL ELECTRIC SERVICE

6 SUPPLIERS.

7 7-508.

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

9 FACILITIES OR GENERATION ASSETS TO AN AFFILIATE.

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

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

12 OF THE VALUE OF A GENERATION ASSET FOR PURPOSES OF TRANSITION COSTS

13 UNDER § 7-513(B) OF THIS SUBTITLE.

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

15 WHEN:

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

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

18 (II) THE AMOUNT OF TRANSITION COSTS ARISING FROM THE

19 GENERATION TO BE TRANSFERRED HAS BEEN FINALLY DETERMINED BY THE

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

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

22 THE SOLE PURPOSE OF DETERMINING THAT:

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

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

25 UNDUE ADVERSE EFFECT ON THE PROPER FUNCTIONING OF A COMPETITIVE

26 ELECTRICITY SUPPLY MARKET; AND

27 (III) THE APPROPRIATE TRANSFER PRICE AND RATE MAKING

28 TREATMENT.

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

30 FACILITY OR GENERATION ASSET UNDER THIS SECTION SUBSECTION WITHIN 180

31 DAYS AFTER THE ELECTRIC COMPANY FILES ITS PROPOSED TRANSFER APPLICATION

32 AND ANY REQUIRED SUPPORTING INFORMATION.

33 7-509.

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

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

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

37 SERVICE OR FUNCTION EXCEPT TO:

79 SENATE BILL 300

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

2 § 7-510(C) OF THIS SUBTITLE; AND

3 (II) REVIEW AND APPROVE TRANSFERS OF GENERATION ASSETS

4 UNDER § 7-508 OF THIS SUBTITLE.

5 (2) THIS SUBSECTION DOES NOT APPLY TO:

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

7 THIS SUBTITLE; OR

8 (II) THE COSTS OF NUCLEAR GENERATION FACILITIES OR

9 PURCHASED POWER CONTRACTS WHICH THAT, AS PART OF A SETTLEMENT

10 APPROVED BY THE COMMISSION, REMAIN REGULATED OR ARE RECOVERED

11 THROUGH THE DISTRIBUTION FUNCTION.

12 (B) EXCEPT FOR AN ELECTRIC COMPANY WHOSE RETAIL PEAK LOAD IN THE

13 STATE ON JANUARY 1, 1999, WAS LESS THAN 1,000 MEGAWATTS (1) SUBJECT TO

14 PARAGRAPH (2) OF THIS SUBSECTION, THIS SECTION DOES NOT APPLY TO AN

15 ELECTRIC COMPANY UNTIL THE ELECTRIC COMPANY:

16 (1) (I) TRANSFERS GENERATION FACILITIES AND GENERATION

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

18 OPERATES THE FACILITIES AND ASSETS; OR

19 (2) (II) SELLS THE GENERATION FACILITIES AND GENERATION ASSETS

20 TO A NONAFFILIATE.

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

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

23 COMPANY THAT DOES NOT TRANSFER ITS GENERATION FACILITIES AND

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

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

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

27 1,000 MEGAWATTS.

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

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

30 JANUARY 1, 2001:

31 1. TRANSFER ITS GENERATION FACILITIES AND

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

33 COMPANY THAT OPERATES THE FACILITIES AND ASSETS; OR

34 2. SELL THE GENERATION FACILITIES AND GENERATION

35 ASSETS TO A NONAFFILIATE.

36 (C) THE EXCEPTIONS IN SUBSECTION (A)(2) (A)(1) OF THIS SECTION AS TO ANY

37 ELECTRIC COMPANY SHALL REMAIN IN EFFECT UNTIL THE LATER OF THE DATE

38 WHEN:

80 SENATE BILL 300

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

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

3 (2) THE DATE WHEN THE AMOUNT OF TRANSITION COSTS ARISING

4 FROM THE GENERATION THAT IS DEREGULATED HAS BEEN FINALLY DETERMINED

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

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

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

8 WHICH THE COMMISSION TERMINATES THAT OBLIGATION.

9 7-510.

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

11 IMPLEMENTATION OF CUSTOMER CHOICE SHALL BE IMPLEMENTED AS FOLLOWS:

12 (I) ON JULY 1, 2000, ONE-THIRD OF THE RETAIL PEAK LOAD OF

13 EACH CUSTOMER CLASS IN THE STATE OF EACH ELECTRIC COMPANY SHALL HAVE

14 THE OPPORTUNITY FOR CUSTOMER CHOICE;

15 (II) ON JULY 1, 2001, TWO-THIRDS OF THE RETAIL PEAK LOAD OF

16 EACH CUSTOMER CLASS IN THE STATE OF EACH ELECTRIC COMPANY SHALL HAVE

17 THE OPPORTUNITY FOR CUSTOMER CHOICE;

18 (III) ON JULY 1, 2002, ALL CUSTOMERS OF EACH ELECTRIC

19 COMPANY SHALL HAVE THE OPPORTUNITY FOR CUSTOMER CHOICE; AND

20 (IV) BY JULY 1, 2003, UNDER A SEPARATE SCHEDULE ADOPTED BY

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

22 THE OPPORTUNITY FOR CUSTOMER CHOICE.

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

24 MAY DEVELOP ADOPT A SEPARATE SCHEDULE FOR MUNICIPAL ELECTRIC UTILITIES

25 FOR THE IMPLEMENTATION OF CUSTOMER CHOICE.

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

27 MAKE ITS SERVICE TERRITORY AVAILABLE FOR CUSTOMER CHOICE UNLESS IT

28 ELECTS TO DO SO.

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

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

31 PLAN AND SCHEDULE WITH THE COMMISSION.

32 (IV) THE COMMISSION MAY APPROVE EACH MUNICIPAL ELECTRIC

33 UTILITY PLAN AND SCHEDULE AFTER CONSIDERING THE FEATURES THAT

34 DISTINGUISH THE MUNICIPAL ELECTRIC UTILITY FROM OTHER ELECTRIC

35 COMPANIES.

36 (V) NOTHING IN THIS SUBTITLE MAY BE CONSTRUED AS

37 REQUIRING THE FUNCTIONAL, OPERATIONAL, STRUCTURAL, OR LEGAL SEPARATION

81 SENATE BILL 300

1 OF THE REGULATED AND NONREGULATED OPERATIONS OF THE MUNICIPAL

2 ELECTRIC UTILITY.

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

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

5 TO THE GENERAL ASSEMBLY ON THE STATUS OF THE OPPORTUNITY FOR CUSTOMER

6 CHOICE IN ITS SERVICE TERRITORY, INCLUDING:

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

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

9 2003, WITH THE TRANSITION TO CUSTOMER CHOICE; OR

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

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

12 PROPOSED INTENTION TO DO SO IN THE FUTURE.

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

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

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

16 THE MUNICIPAL ELECTRIC UTILITY, AS SPECIFIED IN EACH MUNICIPAL ELECTRIC

17 UTILITY'S RESTRUCTURING PLAN APPROVED BY THE COMMISSION UNDER § 7-505 OF

18 THIS SUBTITLE.

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

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

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

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

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

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

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

26 COMPANY'S OBLIGATION TO PROVIDE ELECTRICITY SUPPLY AND ELECTRICITY

27 SUPPLY SERVICE IS STATED BY THIS SUBSECTION.

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

29 ELECTRIC COMPANY IS KNOWN AS STANDARD OFFER SERVICE. A CUSTOMER IS

30 CONSIDERED TO HAVE CHOSEN THE STANDARD OFFER SERVICE IF THE CUSTOMER:

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

32 UNDER THE PHASE IN OF CUSTOMER CHOICE IN § 7-510(A) OF THIS SUBTITLE;

33 (II) CONTRACTS FOR ELECTRICITY WITH AN ELECTRICITY

34 SUPPLIER AND IT IS NOT DELIVERED;

35 (III) CANNOT ARRANGE FOR ELECTRICITY FROM AN ELECTRICITY

36 SUPPLIER; OR

37 (IV) DOES NOT CHOOSE AN ELECTRICITY SUPPLIER;

82 SENATE BILL 300

1 (V) CHOOSES THE STANDARD OFFER SERVICE; OR

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

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

4 OF THIS SUBTITLE.

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

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

7 (I) ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC

8 UTILITIES MAY CHOOSE TO CONTINUE PROVIDING STANDARD OFFER SERVICE IN

9 THEIR RESPECTIVE DISTRIBUTION TERRITORIES, AND MAY CEASE OFFERING THAT

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

11 AND

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

13 SUPPLY MARKET IS NOT COMPETITIVE OR THAT NO ACCEPTABLE COMPETITIVE

14 PROPOSAL HAS BEEN RECEIVED TO SUPPLY ELECTRICITY TO THOSE CUSTOMERS

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

16 EXTEND THE OBLIGATION TO PROVIDE STANDARD OFFER SERVICE TO RESIDENTIAL

17 AND SMALL COMMERCIAL CUSTOMERS UNTIL JULY 1, 2004, AT THE LATEST, AT A

18 RATE DETERMINED UNDER § 7-505(C) OF THIS SUBTITLE AT A MARKET PRICE THAT

19 PERMITS RECOVERY OF THE VERIFIABLE PRUDENTLY INCURRED COSTS TO

20 PROCURE OR PRODUCE THE ELECTRICITY PLUS A REASONABLE RETURN.

21 2. THE COMMISSION SHALL REEXAMINE THE FINDING

22 MADE UNDER THIS SUBPARAGRAPH AT LEAST ANNUALLY.

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

24 REGULATIONS OR ISSUE ORDERS TO ESTABLISH PROCEDURES FOR THE

25 COMPETITIVE SELECTION OF ELECTRICITY SUPPLIERS, INCLUDING AN AFFILIATE

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

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

28 CUSTOMERS OF ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC UTILITIES.

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

30 EFFECT NO LATER THAN JULY 1, 2003.

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

32 TO MEET ITS STANDARD OFFER SERVICE ELECTRICITY SUPPLY OBLIGATION FROM

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

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

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

36 ENACTED TO RESTRUCTURE MARYLAND TAXES TO ADDRESS THE STATE AND LOCAL

37 TAX IMPLICATIONS OF RESTRUCTURING THE ELECTRIC UTILITY INDUSTRY.

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

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

40 UNUSED OPPORTUNITY FOR CUSTOMER CHOICE AMONG CUSTOMER CLASSES.

83 SENATE BILL 300

1 7-511.

2 (A) EXCEPT FOR ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC

3 UTILITIES:

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

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

6 JANUARY 1, 2002; AND

7 (3) COMPETITIVE METERING FOR ALL OTHER CUSTOMERS SHALL BEGIN

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

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

10 IMPLEMENT THIS SECTION.

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

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

13 SERVICES IN A LOCAL JURISDICTION THAT ASSESSES A LOCAL ENERGY TAX, UNLESS

14 THE PERSON HOLDS A LICENSE ISSUED BY THAT JURISDICTION.

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

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

17 LOCAL JURISDICTION.

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

19 LICENSEE TO:

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

21 PROVIDED UNDER § 7-507 OF THIS SUBTITLE;

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

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

24 AND

25 3. HAVE A RESIDENT AGENT IN THE STATE.

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

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

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

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

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

31 ENERGY TAXES ON SERVICES.

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

33 PAYMENT OF ALL LOCAL ENERGY TAXES DUE.

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

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

84 SENATE BILL 300

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

2 SUSPENSION OF A LICENSE TO THE COMMISSION.

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

4 ESTABLISH PROCEDURES FOR THE ASSUMPTION OF BILLING RESPONSIBILITIES BY

5 THE ELECTRIC COMPANY THAT DISTRIBUTES ELECTRICITY IN THE RELEVANT

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

7 7-512.

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

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

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

11 REGULATED UNDER THIS ARTICLE AFTER THAT DATE.

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

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

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

15 TO RECOVER FULLY ALL COSTS OF THE FOLLOWING THAT HAVE BEEN OR WILL BE

16 INCURRED BY THE ELECTRIC COMPANY UNDER PUBLIC PURPOSE PROGRAMS OR

17 OTHER PLANS ESTABLISHED BY LAW OR ORDERED BY THE COMMISSION:

18 (I) DEMAND SIDE MANAGEMENT AND OTHER ENERGY

19 CONSERVATION PROGRAMS AND PLANS;

20 (II) UNIVERSAL SERVICE PROGRAMS AND OTHER PUBLIC PURPOSE

21 PROGRAMS; AND

22 (III) CONSUMER EDUCATION PROGRAMS UNDER § 7-505(B)(1) OF

23 THIS SUBTITLE.

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

25 THE COSTS SUBJECT TO THIS SUBSECTION SHALL BE FUNDED IN THE ELECTRIC

26 COMPANY'S DISTRIBUTION TERRITORY BY A SURCHARGE OR OTHER COST RECOVERY

27 MECHANISM COLLECTED ON A STATEWIDE BASIS THAT:

28 (I) 1. FULLY RECOVERS FROM CUSTOMERS IN THE TERRITORY

29 THE COSTS OF THE PLANS AND PROGRAMS IN THE TERRITORY; AND

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

31 WITH RESPECT TO ANY OF THESE COSTS NOT INCLUDED IN RATES ON JANUARY 1,

32 2000, IS NOT SUBJECT TO ANY OTHERWISE APPLICABLE RATE FREEZE OR CAP.

33 (II) THE RECOVERY BY AN ELECTRIC COMPANY OF COSTS FOR A

34 UNIVERSAL SERVICE PROGRAM IS SUBJECT TO ANY APPLICABLE CAP REGARDLESS

35 OF WHEN THE COSTS ARE INCLUDED IN RATES.

36 (3) DURING THE FISCAL YEAR ENDING JUNE 30, 2000, AN ELECTRIC

37 COMPANY MAY NOT, UNDER PARAGRAPH (2) OF THIS SUBSECTION, RECOVER COSTS

85 SENATE BILL 300

1 OF A CONSUMER EDUCATION PROGRAM ESTABLISHED BY LAW, REGULATION, OR

2 ORDER.

3 7-512.1.

4 (A) (1) THE COMMISSION SHALL ESTABLISH A UNIVERSAL SERVICE

5 PROGRAM TO ASSIST ELECTRIC CUSTOMERS WITH ANNUAL INCOMES AT OR BELOW

6 150% OF THE FEDERAL POVERTY LEVEL.

7 (2) THE COMMISSION, WITH INPUT FROM A PANEL OR ROUNDTABLE OF

8 INTERESTED PARTIES, SHALL CONTRACT WITH A FOR-PROFIT OR NONPROFIT

9 MARYLAND CORPORATION EXISTING AS OF JULY 1, 1999 TO ADMINISTER THE

10 UNIVERSAL SERVICE PROGRAM.

11 (3) THE COMMISSION SHALL HAVE OVERSIGHT RESPONSIBILITY FOR

12 THE UNIVERSAL SERVICE PROGRAM.

13 (4) THE COMPONENTS OF THE UNIVERSAL SERVICE PROGRAM SHALL

14 INCLUDE:

15 (I) BILL ASSISTANCE, AT A MINIMUM OF 50% OF THE DETERMINED

16 NEED;

17 (II) LOW-INCOME WEATHERIZATION; AND

18 (III) THE RETIREMENT OF ARREARAGES THAT WERE INCURRED

19 PRIOR TO THE INITIAL IMPLEMENTATION DATE.

20 (B) (1) ALL CUSTOMERS WILL CONTRIBUTE TO THE FUNDING OF THE

21 UNIVERSAL SERVICE PROGRAM THROUGH A CHARGE COLLECTED BY EACH

22 ELECTRIC COMPANY.

23 (2) THE COMMISSION SHALL DETERMINE A FAIR AND EQUITABLE

24 ALLOCATION FOR COLLECTING THE CHARGES AMONG ALL CUSTOMER CLASSES.

25 (3) AN ELECTRIC COMPANY SHALL RECOVER UNIVERSAL SERVICE

26 PROGRAM COSTS IN ACCORDANCE WITH § 7-512 OF THIS SUBTITLE.

27 (C) ON OR BEFORE DECEMBER 1, 1999, AND ON AN ANNUAL BASIS

28 THEREAFTER, THE COMMISSION SHALL REPORT, SUBJECT TO § 2-1246 OF THE STATE

29 GOVERNMENT ARTICLE, TO THE GENERAL ASSEMBLY ON THE UNIVERSAL SERVICE

30 PROGRAM, INCLUDING:

31 (1) SUBJECT TO SUBSECTIONS (D) AND (E) OF THIS SECTION, A

32 RECOMMENDATION ON THE TOTAL AMOUNT OF FUNDS FOR THE PROGRAM FOR THE

33 FOLLOWING FISCAL YEAR;

34 (2) FOR BILL ASSISTANCE:

35 (I) THE TOTAL AMOUNT OF NEED, AS DETERMINED BY THE

36 COMMISSION, FOR ELECTRIC CUSTOMERS WITH ANNUAL INCOMES AT OR BELOW

86 SENATE BILL 300

1 150% OF THE FEDERAL POVERTY LEVEL AND THE BASIS FOR THIS DETERMINATION;

2 AND

3 (II) THE PERCENTAGE OF NEED, AS DETERMINED BY THE

4 COMMISSION, BUT AT A MINIMUM OF 50%, THAT SHOULD BE FUNDED THROUGH THE

5 UNIVERSAL SERVICE PROGRAM AND THE BASIS OF THIS DETERMINATION;

6 (3) FOR LOW-INCOME WEATHERIZATION, THE AMOUNT OF FUNDS

7 NEEDED, AS DETERMINED BY THE COMMISSION, FOR MEASURES THAT REDUCE

8 CONSUMPTION OF ENERGY BY ELECTRIC CUSTOMERS WITH ANNUAL INCOMES AT

9 OR BELOW 150% OF THE FEDERAL POVERTY LEVEL AND THE BASIS FOR THIS

10 DETERMINATION;

11 (4) THE AMOUNT OF FUNDS NEEDED, AS DETERMINED BY THE

12 COMMISSION, TO RETIRE ARREARAGES THAT WERE INCURRED PRIOR TO THE

13 INITIAL IMPLEMENTATION DATE BY ELECTRIC CUSTOMERS WITH ANNUAL INCOMES

14 AT OR BELOW 150% OF THE FEDERAL POVERTY LEVEL AND THE BASIS FOR THIS

15 DETERMINATION;

16 (5) THE IMPACT ON CUSTOMERS' RATES, INCLUDING THE ALLOCATION

17 AMONG CUSTOMER CLASSES, FROM COLLECTING THE TOTAL AMOUNT

18 RECOMMENDED BY THE COMMISSION UNDER ITEM (1) OF THIS SUBSECTION; AND

19 (6) THE IMPACT OF USING OTHER FEDERAL POVERTY LEVEL

20 BENCHMARKS ON COSTS AND THE EFFECTIVENESS OF THE UNIVERSAL SERVICE

21 PROGRAM.

22 (D) THE TOTAL AMOUNT OF FUNDS TO BE USED FOR THE UNIVERSAL

23 SERVICE PROGRAM IN EACH OF THE 3 YEARS FOLLOWING THE INITIAL

24 IMPLEMENTATION DATE SHALL BE AS FOLLOWS:

25 (1) $34,000,000 FOR THE FIRST YEAR;

26 (2) $36,000,000 FOR THE SECOND YEAR; AND

27 (3) $38,000,000 FOR THE THIRD YEAR.

28 (E) (1) THE COMMISSION SHALL RECOMMEND A TOTAL AMOUNT OF FUNDS

29 TO BE USED FOR THE UNIVERSAL SERVICE PROGRAM FOR THE FOURTH YEAR, AND

30 EACH YEAR THEREAFTER.

31 (2) THE RECOMMENDATION OF THE COMMISSION MAY ONLY BE MADE

32 AFTER CONSIDERATION OF:

33 (I) INFORMATION RELATED TO THE FUNDING FOR THE FIRST 3

34 YEARS;

35 (II) THE RETIREMENT, DURING THE FIRST 3 YEARS, OF

36 ARREARAGES INCURRED PRIOR TO THE INITIAL IMPLEMENTATION DATE; AND

87 SENATE BILL 300

1 (III) THE AMOUNT OF LOW-INCOME ASSISTANCE INCLUDED IN

2 RATES PRIOR TO THE INITIAL IMPLEMENTATION DATE.

3 (F) FOR THE FOURTH YEAR AFTER THE INITIAL IMPLEMENTATION DATE, AND

4 FOR EACH YEAR THEREAFTER, THE AMOUNT TO BE USED FOR THE UNIVERSAL

5 SERVICE PROGRAM, DETERMINED AFTER CONSIDERATION OF THE

6 RECOMMENDATION OF THE COMMISSION REQUIRED UNDER THIS SECTION, IS

7 SUBJECT TO THE APPROVAL OF THE GENERAL ASSEMBLY THROUGH THE

8 ENACTMENT OF LEGISLATION.

9 (G) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, FOR THE 3

10 YEARS IMMEDIATELY FOLLOWING THE INITIAL IMPLEMENTATION DATE,

11 ELECTRICITY SUPPLIERS AND ELECTRIC COMPANIES MAY NOT TERMINATE, FOR AN

12 ARREARAGE BALANCE DUE ON THE INITIAL IMPLEMENTATION DATE, THE SUPPLY

13 OF ELECTRICITY TO A CUSTOMER WHO RECEIVES ASSISTANCE UNDER THE

14 UNIVERSAL SERVICE PROGRAM UNDER § 7-512.1 OF THIS SUBTITLE THIS SECTION.

15 7-513.

16 (A) (1) IN ACCORDANCE WITH THIS SUBSECTION, AN ELECTRIC COMPANY

17 SHALL BE PROVIDED A FAIR OPPORTUNITY TO RECOVER ALL OF ITS PRUDENTLY

18 INCURRED AND VERIFIABLE NET TRANSITION COSTS, SUBJECT TO FULL

19 MITIGATION, FOLLOWING THE COMMISSION'S DETERMINATION UNDER SUBSECTION

20 (B) OF THIS SECTION.

21 (2) A COMPETITIVE TRANSITION CHARGE, OR OTHER APPROPRIATE

22 MECHANISM THAT THE COMMISSION DETERMINES, MAY BE INCLUDED AS PART OF

23 THE CHARGE PAID BY EACH CUSTOMER FOR CUSTOMERS WHO ACCESSES ACCESS

24 THE TRANSMISSION OR DISTRIBUTION SYSTEM OF THE ELECTRIC COMPANY IN

25 WHOSE DISTRIBUTION TERRITORY THE CUSTOMER IS LOCATED. THE COSTS

26 AUTHORIZED BY THE COMMISSION TO BE RECOVERED SHALL BE ALLOCATED TO

27 CUSTOMER CLASSES IN A MANNER THAT, AS NEARLY AS REASONABLY POSSIBLE,

28 DOES NOT EXCEED THE COST OF PROVIDING THE SERVICE TO THOSE CLASSES OF

29 CUSTOMERS, AVOIDING WHERE REASONABLY POSSIBLE ANY INTERCLASS OR

30 INTRACLASS CROSS SUBSIDY.

31 (3) THE COMPETITIVE TRANSITION CHARGE MAY BE INCLUDED ON

32 BILLS TO CUSTOMERS FOR A PERIOD DETERMINED BY THE COMMISSION. THE

33 COMMISSION MAY ESTABLISH RECOVERY PERIODS OF DIFFERENT LENGTHS FOR

34 EACH ELECTRIC COMPANY AND FOR DIFFERENT CATEGORIES OF TRANSITION

35 COSTS.

36 (4) (I) A COMPETITIVE TRANSITION CHARGE, OR OTHER APPROPRIATE

37 MECHANISM DETERMINED BY THE COMMISSION, MAY NOT BE PAID FOR APPLY TO

38 ANY ON-SITE GENERATED ELECTRICITY TO THE EXTENT OF:

39 1. THE EXISTING FACILITIES' INSTALLED GENERATING

40 CAPACITY AS OF JANUARY 1, 1999; OR

88 SENATE BILL 300

1 2. THE GENERATING CAPACITY OF AN EXISTING FACILITY

2 TO BE INSTALLED UNDER A LEGALLY BINDING CONTRACT:

3 A. EXECUTED ON OR BEFORE JANUARY 1, 1999; OR

4 B. EXECUTED ON OR BEFORE SEPTEMBER 29, 1999, IF THE

5 COMMISSION, ON A CASE BY CASE REVIEW OF THE EVIDENCE, DETERMINES THAT

6 NEGOTIATIONS IN GOOD FAITH CONCERNING THE CONTRACT WERE ONGOING AS OF

7 JANUARY 1, 1999; OR

8 3. THE GENERATING CAPACITY OF ON-SITE GENERATING

9 FACILITIES INSTALLED AFTER JANUARY 1, 2000, AS DETERMINED BY THE

10 COMMISSION, FROM MICRO-TURBINES, PHOTOVOLTAICS, FUEL CELLS, AND WIND

11 MACHINES THAT HAVE A CAPACITY OF 500 KILOWATTS OR LESS WITH FUEL

12 UTILIZATION EFFICIENCY OF AT LEAST 40%.

13 (II) 1. ONLY THE FIRST 40 MEGAWATTS, ON A STATEWIDE BASIS,

14 OF THE AGGREGATE GENERATING CAPACITY OF ON-SITE GENERATING FACILITIES

15 MAY QUALIFY UNDER SUBPARAGRAPH (I)2 B OF THIS PARAGRAPH.

16 2. ONLY THE FIRST 40 MEGAWATTS, ON A STATEWIDE BASIS,

17 OF THE AGGREGATE GENERATING CAPACITY OF ON-SITE GENERATING FACILITIES

18 MAY QUALIFY UNDER SUBPARAGRAPH (I)3 OF THIS PARAGRAPH.

19 (B) THE COMMISSION SHALL DETERMINE THE TRANSITION COSTS AND THE

20 AMOUNTS OF THE TRANSITION COSTS THAT AN ELECTRIC COMPANY SHALL BE

21 PROVIDED AN OPPORTUNITY TO RECOVER UNDER ITS RESTRUCTURING PLAN

22 THROUGH THE COMPETITIVE TRANSITION CHARGE OR OTHER APPROPRIATE

23 MECHANISM.

24 (C) (1) AFTER JULY 1, 1999, AN ELECTRIC COMPANY MAY APPLY TO THE

25 COMMISSION FOR A QUALIFIED RATE ORDER FOR SOME OR ALL OF ITS TRANSITION

26 COSTS.

27 (2) IF THE COMMISSION ISSUES A QUALIFIED RATE ORDER AND THE

28 TRANSITION BONDS APPROVED BY THAT ORDER ARE SUCCESSFULLY ISSUED:

29 (I) THE ELECTRIC COMPANY SHALL IMPOSE AND COLLECT,

30 THROUGH ITS CUSTOMER BILLS, THE INTANGIBLE TRANSITION CHARGES APPROVED

31 BY THE QUALIFIED RATE ORDER; AND

32 (II) AT THE SAME TIME, THE ELECTRIC COMPANY'S COMPETITIVE

33 TRANSITION CHARGE SHALL BE REDUCED BY AN AMOUNT EQUAL TO THAT PORTION

34 OF THE COMPETITIVE TRANSITION CHARGE RELATED TO THE TRANSITION COSTS

35 FOR WHICH TRANSITION BONDS HAVE BEEN SUCCESSFULLY ISSUED, TOGETHER

36 WITH ANY COSTS OF CAPITAL RELATED TO THE TRANSITION COSTS FOR WHICH

37 RECOVERY WAS PROVIDED IN THE COMPETITIVE TRANSITION CHARGE, AS

38 PROVIDED IN THE QUALIFIED RATE ORDER.

89 SENATE BILL 300

1 (D) (1) THE COMMISSION SHALL ESTABLISH PROCEDURES FOR THE

2 ANNUAL REVIEW OF THE COMPETITIVE TRANSITION CHARGE FOR EACH ELECTRIC

3 COMPANY TO RECONCILE THE ANNUAL REVENUES RECEIVED FROM THE CHARGE

4 WITH THE ANNUAL AMORTIZATION OF TRANSITION COSTS APPROVED BY THE

5 COMMISSION UNDER THIS SECTION TO TAKE ACCOUNT OF ACTUAL KILOWATT-HOUR

6 SALES IN THE PRIOR YEAR COMPARED WITH PREVIOUSLY ESTIMATED

7 KILOWATT-HOUR SALES. THE COMMISSION SHALL ADJUST THE COMPETITIVE

8 TRANSITION CHARGE BASED ON ANY UNDER RECOVERY OR OVER RECOVERY WITH

9 RESPECT TO THE AUTHORIZED AMORTIZATION AMOUNT.

10 (2) NOTHING IN THIS SUBTITLE MAY BE CONSTRUED TO PREVENT AS

11 PREVENTING THE COMMISSION FROM APPROVING FOR AN INVESTOR-OWNED

12 ELECTRIC COMPANY:

13 (I) AN ADJUSTMENT MECHANISM PROPOSED BY THE

14 INVESTOR-OWNED ELECTRIC COMPANY IN ITS INITIAL RESTRUCTURING PROPOSAL

15 FILED PRIOR TO JANUARY 1, 1999, THAT INCLUDES TAKES INTO ACCOUNT

16 DIFFERENCES OTHER THAN DIFFERENCES IN KILOWATT-HOUR SALES, TAKING INTO

17 CONSIDERATION ANY REQUIREMENTS RELATED TO ANY TRANSITION BONDS; OR

18 (II) AN ADJUSTMENT THAT TAKES INTO ACCOUNT GENERATION

19 ASSET SALES BY AN ELECTRIC COMPANY OR AN AFFILIATE TO A NONAFFILIATE

20 THAT ARE CONSUMMATED ON OR BEFORE JUNE 30, 2005; OR

21 (III) ANY OTHER MECHANISM AS PART OF A SETTLEMENT.

22 (E) (1) IN DETERMINING THE APPROPRIATE TRANSITION COSTS OR

23 BENEFITS FOR EACH ELECTRIC COMPANY'S GENERATION-RELATED ASSETS, THE

24 COMMISSION SHALL CONSIDER, IN ADDITION TO OTHER APPROPRIATE EVIDENCE OF

25 VALUE:

26 (I) BOOK VALUE AND FAIR MARKET VALUE;

27 (II) AUCTIONS AND SALES OF COMPARABLE ASSETS;

28 (III) APPRAISALS;

29 (IV) THE REVENUE THE COMPANY WOULD RECEIVE UNDER

30 RATE-OF-RETURN REGULATION;

31 (V) THE REVENUE THE COMPANY WOULD RECEIVE IN A

32 RESTRUCTURED ELECTRICITY SUPPLY MARKET; AND

33 (VI) COMPUTER SIMULATIONS.

34 (2) THE COMMISSION SHALL DETERMINE WHETHER AND TO WHAT

35 EXTENT THERE SHALL BE ANY ALLOCATION OF TRANSITION COSTS OR BENEFITS

36 BETWEEN SHAREHOLDERS AND RATEPAYERS IN ACCORDANCE WITH ANY FEDERAL

37 AND STATE LAW.

90 SENATE BILL 300

1 7-514.

2 (A) ON COMPLAINT OR ON ITS OWN MOTION, FOR GOOD CAUSE SHOWN, THE

3 COMMISSION MAY CONDUCT AN INVESTIGATION OF THE RETAIL ELECTRICITY

4 SUPPLY AND ELECTRICITY SUPPLY SERVICES MARKETS AND DETERMINE WHETHER

5 THE FUNCTION OF ONE OF THESE MARKETS IS BEING ADVERSELY AFFECTED BY

6 MARKET POWER OR ANY OTHER ANTICOMPETITIVE CONDUCT. THE COMMISSION

7 SHALL MONITOR THE RETAIL ELECTRICITY SUPPLY AND ELECTRICITY SUPPLY

8 SERVICES MARKETS TO ENSURE THAT THE MARKETS ARE NOT BEING ADVERSELY

9 AFFECTED BY MARKET POWER OR ANY OTHER ANTICOMPETITIVE CONDUCT.

10 (B) IF, AS A RESULT OF AN INVESTIGATION CONDUCTED UNDER THIS

11 SECTION, THE COMMISSION DETERMINES THAT MARKET POWER OR ANY OTHER

12 ANTICOMPETITIVE CONDUCT IN THE RELEVANT MARKET UNDER THE COMMISSION'S

13 JURISDICTION IS PREVENTING THE ELECTRIC CUSTOMERS IN THE STATE FROM

14 OBTAINING THE BENEFITS OF PROPERLY FUNCTIONING RETAIL ELECTRICITY

15 SUPPLY AND ELECTRICITY SUPPLY SERVICES MARKETS, THE COMMISSION MAY

16 TAKE REMEDIAL ACTIONS WITHIN ITS AUTHORITY TO ADDRESS THE IMPACT OF THE

17 MARKET POWER OR ANY OTHER ANTICOMPETITIVE CONDUCT ACTIVITIES.

18 (C) THE COMMISSION SHALL INCLUDE ANTITRUST PRINCIPLES IN

19 PERFORMING ITS ANALYSIS UNDER THIS SECTION.

20 (D) THE COMMISSION SHALL COOPERATE WITH AND SHARE INFORMATION

21 WITH THE ANTITRUST DIVISION OF THE OFFICE OF THE ATTORNEY GENERAL.

22 (E) THE RIGHTS AND REMEDIES PROVIDED IN THIS SECTION SUPPLEMENT

23 ANY OTHER RIGHTS OR REMEDIES THAT MAY EXIST UNDER STATE OR FEDERAL LAW

24 OR COMMON LAW.

25 7-515.

26 AN ELECTRICITY SUPPLIER THAT ALSO PROVIDES DISTRIBUTION SERVICE, OR

27 THAT HAS AN AFFILIATE THAT PROVIDES DISTRIBUTION SERVICE, IN

28 PENNSYLVANIA, DELAWARE, WEST VIRGINIA, AND VIRGINIA OR IN THE DISTRICT OF

29 COLUMBIA MAY NOT PROVIDE RETAIL ELECTRICITY SUPPLY SERVICE, DIRECTLY,

30 INDIRECTLY, OR THROUGH AN AGGREGATOR, MARKETER, OR BROKER, IN THE

31 DISTRIBUTION TERRITORY OF AN UNAFFILIATED ELECTRIC COMPANY UNLESS

32 THERE IS ELECTRICITY SUPPLY COMPETITION IN AT LEAST A PORTION OF THE

33 DISTRIBUTION SERVICE AREA OF THE ELECTRICITY SUPPLIER OR AFFILIATE.

34 7-516.

35 (A) AN ELECTRIC COMPANY SHALL CONTINUE TO PURCHASE ELECTRICITY

36 UNDER ANY CONTRACT IN EFFECT ON JANUARY 1, 1999, WITH A RENEWABLE ENERGY

37 RESOURCE FACILITY LOCATED IN THE STATE UNTIL THE LATER OF THE EXPIRATION

38 OF THE CONTRACT OR THE EXPIRATION OR SATISFACTION OF BONDS EXISTING ON

39 JANUARY 1, 1999, SUPPORTING THE FACILITY.

91 SENATE BILL 300

1 (B) ON OR BEFORE FEBRUARY 1, 2000, THE COMMISSION, IN CONSULTATION

2 WITH THE MARYLAND ENERGY ADMINISTRATION, SHALL REPORT TO THE

3 GOVERNOR AND, SUBJECT TO § 2-1246 OF THE STATE GOVERNMENT ARTICLE, TO THE

4 GENERAL ASSEMBLY ON THE FEASIBILITY OF REQUIRING A RENEWABLES

5 PORTFOLIO STANDARD AND THE ESTIMATED COSTS AND BENEFITS OF

6 ESTABLISHING THIS REQUIREMENT.

7 7-516. 7-517.

8 THIS SUBTITLE MAY BE REFERRED TO AS "THE ELECTRIC CUSTOMER CHOICE

9 AND COMPETITION ACT OF 1999".

10 7-517. RESERVED.

11 7-518. RESERVED.

12 Article - Natural Resources

13 3-308.

14 THE SECRETARY SHALL USE THE ENVIRONMENTAL TRUST FUND, INCLUDING

15 ANY ADDITIONAL AMOUNTS APPROPRIATED BY THE GENERAL ASSEMBLY, TO THE

16 MAXIMUM EXTENT POSSIBLE TO FUND COST-EFFECTIVE ENERGY EFFICIENCY AND

17 CONSERVATION ACTIVITIES AND THE IN-STATE OPERATION AND DEVELOPMENT OF

18 RENEWABLE ENERGY RESOURCES, AS DEFINED IN § 1-101 OF THE PUBLIC UTILITY

19 COMPANIES ARTICLE.

20 Article - Commercial Law

21 9-104.

22 This title does not apply

23 (m) To a transfer of an interest in a letter of credit other than the rights

24 to proceeds of a written letter of credit; OR

25 (N) TO INTANGIBLE TRANSITION PROPERTY AS DEFINED IN § 7-501 OF

26 THE PUBLIC UTILITY COMPANIES ARTICLE.

27 SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 4-403 of the

28 Public Utility Companies Article of the Annotated Code of Maryland be repealed. Any

29 net accumulated over recovery or under recovery of actual fuel costs by each electric

30 company as of the initial implementation date under Title 7, Subtitle 5 of the Public

31 Utility Companies Article, as enacted by this Act, shall be credited or debited, as

32 appropriate, to the electric company's rates and shall be refunded or collected, as

33 appropriate, over a period not to exceed 12 months.

34 SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland

35 read as follows:

92 SENATE BILL 300

1 Article - Public Utility Companies

2 7-203.

3 (a) (1) The Commission shall:

4 (i) impose an environmental surcharge per kilowatt hour of

5 electricity [generated] DISTRIBUTED TO RETAIL ELECTRIC CUSTOMERS within the

6 State; and

7 (ii) authorize each electric company to add the full amount of the

8 surcharge to its customers' bills.

9 (2) To the extent that an electric company fails to collect the surcharge

10 from its customers, the amount uncollected shall be deemed a cost of power

11 [generation] DISTRIBUTION and allowed and computed as such together with other

12 allowable expenses for purposes of rate-making.

13 (b) (1) The Comptroller shall collect the revenue from the surcharge

14 imposed under subsection (a) of this section and place the revenue into a special fund,

15 the Environmental Trust Fund.

16 (2) The Comptroller shall maintain the method of collection of the

17 surcharge from each electric company, and the money collected shall accrue to the

18 Fund.

19 (c) (1) Each fiscal year, the Secretary of Natural Resources shall coordinate

20 the preparation of the annual budget required to carry out the provisions of the Power

21 Plant Research Program under Title 3, Subtitle 3 of the Natural Resources Article.

22 (2) Each fiscal year, on approval of the annual budget by the General

23 Assembly for the Power Plant Research Program, the Commission shall establish the

24 amount of the environmental surcharge per kilowatt hour of electric energy

25 [generated] DISTRIBUTED in the State that is to be imposed on each electric company

26 in accordance with subsection (a) of this section.

27 (d) (1) Notwithstanding any other provision of this subtitle, the amount of

28 the surcharge for each account OF EACH RETAIL ELECTRIC CUSTOMER may not

29 exceed the lesser of 0.15 mill per kilowatt hour or $1,000 per month.

30 (2) The Department of Natural Resources shall credit against the

31 amount the Commission requires each electric company to pay into the

32 Environmental Trust Fund 1.5% of the total surcharge amount attributed to the

33 electric company on the basis of the amount of the electricity [generated]

34 DISTRIBUTED in the State.

35 (e) The surcharge imposed under this subtitle shall terminate on June 30,

36 [2000] 2005.

93 SENATE BILL 300

1 Article - Natural Resources

2 3-302.

3 (a) There is an Environmental Trust Fund. For the purpose of this subtitle,

4 there is established as an added cost of [generation] ELECTRICITY DISTRIBUTED TO

5 RETAIL ELECTRIC CUSTOMERS WITHIN THE STATE, an environmental surcharge per

6 kilowatt hour of electric energy [generated] DISTRIBUTED in the State to be paid by

7 any electric company as defined in § 1-101 of the Public Utility Companies Article.

8 [This surcharge initially shall be assessed at 0.1 mill per kilowatt hour as of January

9 1, 1972.] The Public Service Commission shall impose the surcharge per kilowatt

10 hour of electric energy [generated] DISTRIBUTED TO RETAIL ELECTRIC CUSTOMERS

11 within the State and shall authorize the electric companies to add the full amount of

12 the surcharge to RETAIL ELECTRIC customers' bills. To the extent that the surcharge

13 is not collected from RETAIL ELECTRIC customers, the surcharge shall be deemed a

14 cost of [generation] DISTRIBUTION and shall be allowed and computed as such,

15 together with other allowable expenses, for rate-making purposes. Revenues from

16 the surcharge shall be collected by the Comptroller and placed in the Fund.

17 (b) (1) The Secretary, in consultation with the Director of the Maryland

18 Energy Administration, annually shall coordinate the preparation of a budget

19 required to carry out the provisions of this subtitle. Upon approval of the budget by

20 the General Assembly, the Public Service Commission shall establish the amount of

21 the surcharge per kilowatt hour for the fiscal year beginning July 1, 1972, and for

22 each subsequent fiscal year.

23 (2) Notwithstanding any other provisions of this subtitle, the amount of

24 the surcharge for each account FOR EACH RETAIL ELECTRIC CUSTOMER may not

25 exceed the lesser of 0.15 [mil] MILL per kilowatt hour or $1,000 per month and the

26 surcharge may not continue beyond Fiscal Year [2000] 2005.

27 (3) The Comptroller shall maintain the method of collection of the

28 surcharge from the companies and the collections shall accrue to the Fund. The

29 Department shall credit against the amount required to be paid into the

30 Environmental Trust Fund by each electric company an amount equal to 1 1/2% of the

31 total surcharge attributed to each company on the basis of the electricity [generated]

32 DISTRIBUTED within Maryland.

33 (c) The Secretary shall administer the Fund. The Fund is subject to the

34 provisions for financial management and budgeting established by the Department of

35 Budget and Management. The moneys in the Fund shall be used to carry out the

36 provisions of this subtitle as provided for in the budget, except that 10% of all moneys

37 accruing to the Fund from July 1, 1978 through June 30, 1983 shall be used to

38 supplement funds necessary to carry out the duties of the People's Counsel of the

39 Public Service Commission. The People's Counsel shall submit an annual budget of

40 necessary supplemental funds to the Department to be incorporated in the

41 Department's budget. For the purposes of this subtitle, the Secretary, in consultation

42 with the Director of the Maryland Energy Administration, may execute appropriate

43 contracts with any State or federal agency, research organization, industry, or

94 SENATE BILL 300

1 academic institution to conduct the necessary research, construct or acquire, or both,

2 real property including physical predictive models, laboratories, buildings, land, and

3 appurtenances, or support the technological development of extraordinary systems

4 related to power plants designed to minimize environmental impact. [He] THE

5 SECRETARY may utilize available expertise in any other State unit in the

6 development, execution, and management of contracts and agreements on projects

7 relating to their areas of prime responsibility.

8 (d) (1) The Maryland Energy Administration shall receive administrative

9 and fiscal support from the Fund for studies relating to the conservation or

10 production of electric energy.

11 (2) Fiscal support to the Maryland Energy Administration from the

12 Fund may not exceed $250,000 in any fiscal year.

13 (e) The Legislative Auditor shall conduct post audits of a fiscal and

14 compliance nature of the Fund and of the appropriations and expenditures made for

15 the purposes of this subtitle. The cost of the fiscal portion of the post audit

16 examinations shall be an operating cost of the Fund.

17 SECTION 4. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall

18 take effect July 1, 2000, provided that, if the Public Service Commission delays

19 implementation of customer choice in accordance with the provisions of § 7-510(b) of

20 the Public Utility Companies Article, the surcharge funding the Environmental Trust

21 Fund pursuant to § 7-203 of the Public Utility Companies Article shall continue to be

22 collected as a per kilowatt hour surcharge on electricity generated within the State

23 until customer choice is implemented.

24 SECTION 5. AND BE IT FURTHER ENACTED, That the Governor is

25 authorized to submit a budget amendment for the fiscal year ending June 30, 2000,

26 transferring $6,000,000 from the Revenue Stabilization Fund to be used for the

27 purpose of educating consumers on electric utility industry restructuring. In

28 accordance with § 7-505(b) of the Public Utility Companies Article, the Public Service

29 Commission shall use the allocated funds during the fiscal year ending June 30, 2000,

30 to implement a consumer education program informing customers of changes in the

31 electric industry. On or before September 1, 1999, the Public Service Commission

32 shall report to the Governor and, subject to § 2-1246 of the State Government Article,

33 to the General Assembly on: (1) the recommended funding level, between $3,000,000

34 and $6,000,000, for the consumer education program for the fiscal year ending June

35 30, 2001; (2) the recommended method of funding for the program; and (3) if

36 applicable, the impact that the funding method will have on customers' costs for

37 electricity. On or before September 1, 2000, the Public Service Commission shall

38 report to the Governor and, subject to § 2-1246 of the State Government Article, to

39 the General Assembly on: (1) the recommended funding level, between $3,000,000 and

40 $6,000,000, for the consumer education program for the fiscal year ending June 30,

41 2002; (2) the recommended method of funding for the program; and (3) if applicable,

42 the impact that the funding method will have on customers' costs for electricity.

95 SENATE BILL 300

1 SECTION 6. AND BE IT FURTHER ENACTED, That, on or before December 1,

2 1999, the Public Service Commission shall report to the Governor and, subject to §

3 2-1246 of the State Government Article, to the General Assembly on: (1) the

4 determinations of any transition costs or any transition benefits for the various

5 electric companies; and (2) the status of the Public Service Commission's

6 considerations regarding the functional, operational, structural, or legal separation

7 between electric companies' regulated businesses and their nonregulated businesses

8 or nonregulated affiliates.

9 SECTION 3 7. AND BE IT FURTHER ENACTED, That if any provision of this

10 Act or the application thereof to any person or circumstance is held invalid for any

11 reason in a court of competent jurisdiction, the invalidity does not affect other

12 provisions or any other application of this Act which can be given effect without the

13 invalid provision or application, and for this purpose the provisions of this Act are

14 declared severable.

15 SECTION 4 8. AND BE IT FURTHER ENACTED, That Section 2 of this Act

16 shall take effect on the later of July 1, 2000, and the initial implementation date that

17 the Public Service Commission determines for investor-owned utilities under §

18 7-510(b)(1) of the Public Utility Companies Article, as enacted by this Act.

19 SECTION 5 9. AND BE IT FURTHER ENACTED, That Sections 1, 3, and 4 of,

20 except as provided in Sections 4 and 8 of this Act, this Act shall take effect July 1,

21 1999.

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