# Public Utilities (GPU)

## Title 25. Rates and Charges

### Subtitle 4. System Development Charge

#### Section 25-402

(a) In addition to any other charges authorized under this division, the Commission may impose a system development charge that shall be paid by an applicant for new service.

(b) The system development charge shall be paid as follows:

  (1) for residential properties:

    (i) 50% at the time the plumbing permit application is filed; and

    (ii) 50% within 12 months after the earlier of the date on which a plumbing permit application is filed or on transfer of title to the property; and

  (2) for other properties, 100% at the time the plumbing permit application is filed.

(c) When the applicant files the plumbing permit application, the applicant shall deposit with the Commission security:

  (1) in the form of an irrevocable letter of credit;

  (2) in the form of a financial guaranty bond; or

  (3) in a form the Commission establishes and approves under its regulations.

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Md. Code Ann., Pub. Util. (as displayed at mgaleg.maryland.gov, October 16, 2026)