19990100 MD Senate Bill 300 Electric Utility Industry Restructuring
Pages 50 through 95
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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13 Public Utility Companies Article of the Annotated Code of Maryland be repealed.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
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
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
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
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
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 .
16 (C) "BROKER" MEANS AN ENTITY OR INDIVIDUAL THAT ACTS AS AN AGENT OR
17 INTERMEDIARY IN THE
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
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
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
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.
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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
25 or
26 (2) the
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
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;
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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.
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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
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
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
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
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 , 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
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
3 AND BE RESPONSIBLE FOR DISTRIBUTION SERVICES IN THE TERRITORY.
4 (B) THE ELECTRIC COMPANY SHALL PROVIDE DISTRIBUTION SERVICES IN ITS
5 DISTRIBUTION 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
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
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
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
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
13 EACH CUSTOMER CLASS IN THE STATE OF EACH ELECTRIC COMPANY SHALL HAVE
14 THE
15 (II) ON JULY 1, 2001, TWO-THIRDS OF THE
16 EACH CUSTOMER CLASS IN THE STATE OF EACH ELECTRIC COMPANY SHALL HAVE
17 THE
18 (III) ON JULY 1, 2002, ALL CUSTOMERS OF EACH ELECTRIC
19 COMPANY SHALL HAVE THE
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
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
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
6 CHOICE IN ITS
7 (I) IF THE
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
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
15 THIS SUBTITLE MAY SERVE THE CUSTOMERS IN THE
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
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
35 OTHER LAW, CUSTOMER CHOICE MAY NOT COMMENCE UNTIL LEGISLATION IS
36 ENACTED TO RESTRUCTURE
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
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 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
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
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
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
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
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,
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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