# Public Utilities (GPU)

## Title 4. Rate Regulation

### Subtitle 3. Specific Rate Regimes

#### Section 4-301

(a) Notwithstanding Sec. 4-101 of this title or any other law to the contrary, the Commission may regulate a telephone company through alternative forms of regulation.

(b) The Commission may adopt an alternative form of regulation under this section if the Commission finds, after notice and hearing, that the alternative form of regulation:

  (1) protects consumers by, at a minimum:

    (i) producing affordable and reasonably priced basic local exchange service, as defined by the Commission; and

    (ii) ensuring the quality, availability, and reliability of telecommunications services throughout the State;

  (2) encourages the development of competition; and

  (3) is in the public interest.

(c) An alternative form of regulation may include:

  (1) price regulation;

  (2) revenue regulation;

  (3) ranges of authorized return;

  (4) rate of return;

  (5) categories of services; or

  (6) price indexing.

#### Section 4-302

(a)

  (1) In this subsection, "operating ratio" means the relationship of common carrier expenses to common carrier operating revenues.

  (2) In considering proper revenue under subsection (b)(3) of this section, the Commission shall determine a fair and equitable operating ratio.

(b) In setting a just and reasonable rate for common carriers, and classifications, regulations, and practices relating to common carriers, the Commission shall consider, among other factors:

  (1) the inherent advantages of transportation by common carriers;

  (2) the need, in the public interest, of adequate and efficient transportation services by common carriers at the lowest cost consistent with furnishing these services; and

  (3) the need of revenues sufficient to enable common carriers to provide these services under honest, economical, and efficient management.

#### Section 4-303

(a) The Commission shall establish pilotage fees and charges for pilotage services to vessels at a just and reasonable rate.

(b) The Commission shall give notice and hold a public hearing on each rate proposal as provided in this article.

(c) In determining a just and reasonable rate, the Commission shall consider:

  (1) the draft, dimensions, and tonnage of the vessel piloted;

  (2) the difficulty and inconvenience of the particular service and the time and skill required to render the service;

  (3) the time required to render pilotage service at other United States ports and the fees and charges for the service;

  (4) the public interest in maintaining efficient and reliable pilotage service; and

  (5) other factors relevant to the determination of a just and reasonable rate.

(d) A pilot may not demand or receive a different compensation for providing pilotage service than the rate set by the Commission under this section.

(e) The Commission shall impose an assessment on the Association of Maryland Pilots based on assessment guidelines established for public service companies under Sec. 2-110 of this article. The assessment imposed under this subsection may not be less than $25,000.

(f) All pilotage fees and charges provided by applicable law shall remain in effect until changed by the Commission.

#### Section 4-303.1

(a) The Commission shall establish fees and charges for a licensed docking master to provide docking services in the Ports of Maryland at a just and reasonable rate.

(b) The Commission shall give notice and hold a public hearing on each rate proposal as provided in this article.

(c) In determining a just and reasonable rate, the Commission shall consider:

  (1) the draft, dimensions, and tonnage of the vessel;

  (2) the difficulty and inconvenience of the particular service and the time and skill required to render the service;

  (3) the time required to render docking service at other United States ports and the fees and charges for the service;

  (4) the public interest in maintaining efficient and reliable docking service; and

  (5) other factors relevant to the determination of a just and reasonable rate.

(d) A docking master licensed under Title 5.5 of the Business Occupations and Professions Article may not demand or receive a different compensation for providing docking services than the rate set by the Commission under this section.

(e) The Commission shall impose an assessment on the association based on assessment guidelines established for public service companies under Sec. 2-110 of this article.

(f) All fees and charges provided by applicable law shall remain in effect until changed by the Commission.

#### Section 4-304

(a) In this section, "jurisdiction" means a county or municipal corporation.

(b) This section does not apply if rates for sewage disposal service are specified in a contract between the jurisdictions that supply and receive the sewage disposal service.

(c) The Commission shall set only the rates for sewage disposal service that one jurisdiction supplies within the taxable limits of another jurisdiction:

  (1) on written application by the jurisdiction that receives the service; and

  (2) in the same way as rates are set for sewage disposal companies.

#### Section 4-305

(a) In this section, "jurisdiction" means a county, sanitary district, or municipal corporation.

(b) This section does not affect Sec.Sec. 35-138, 35-140, 35-141, and 35-145 of the Code of Public Local Laws of Baltimore County.

(c) The Commission shall set only the rates for water that one jurisdiction supplies within another jurisdiction:

  (1) on written application by the jurisdiction that receives the water; and

  (2) in the same way as rates are set for water companies.

#### Section 4-306

(a) This section applies to any municipal corporation in Talbot County that supplies water to an area outside the boundaries of the municipal corporation.

(b) On written application, the Commission may grant the applicant a certificate of authority to establish a service area outside of its boundaries and to supply that service area with water.

#### Section 4-307

(a) In this section, "rate consolidation" means the use of the same or similar rates or tariff schedules of rates for customers of the same class for two or more water or sewage disposal systems even if the systems are not physically interconnected.

(b) After notice to customers and holding a public hearing and an evidentiary hearing, the Commission may authorize a rate consolidation of two or more water or sewage disposal systems if:

  (1) the water or sewage disposal systems have common ownership; and

  (2) the rate consolidation is in the public interest.

#### Section 4-308

(a) On or before January 1, 2023, the Commission shall by regulation or order establish an administrative process to approve supply offers for electricity or gas for households in the State that receive energy assistance through a program administered by the Office of Home Energy Programs.

(b)

  (1) Beginning July 1, 2023, unless the Commission has approved the supply offer in accordance with subsection (a) of this section, a third-party retail supplier may not offer to:

    (i) provide electricity or gas to households in the State that have received energy assistance during the previous fiscal year;

    (ii) renew a contract to provide electricity or gas to households in the State that are enrolled in an energy assistance program; or

    (iii) charge a termination fee to households in the State that have received energy assistance during the previous fiscal year.

  (2) An approved supply offer from a third-party retail supplier shall include a commitment, for the entirety of the term of the supply offer, to charging at or below the standard offer service rate or gas commodity rate for customers receiving energy assistance.

  (3) If a third-party retail supplier's offer is not approved by the Commission, the third-party retail supplier may not:

    (i) receive funds from an energy program administered by the Office of Home Energy Programs; or

    (ii) charge a customer receiving assistance from an energy program administered by the Office of Home Energy Programs.

(c) The Office of Home Energy Programs may allocate funding toward supplier charges as part of arrearage assistance for contracts that preceded a customer's application for energy assistance from the Office of Home Energy Programs.

(d)

  (1) On or before September 1 each year, the Commission shall publish a report on the Commission's website that includes:

    (i) the names and the total number of suppliers that applied for approval to sell to energy assistance households;

    (ii) the names and the total number of suppliers that were approved under subsection (a) of this section;

    (iii) the total number of suppliers that were rejected, if any;

    (iv) the total number of energy assistance households that were signed up with a third-party supplier, as reported by the supplier;

    (v) the total number of submitted supplier enrollments that were denied because the supplier was not approved to serve energy assistance households, as reported by the utility; and

    (vi) the total number of self-identified energy assistance households that filed complaints about their third-party supplier.

  (2) The Commission shall send a copy of the report to the Office of People's Counsel, the Office of Home Energy Programs, and, subject to Sec. 2-1257 of the State Government Article, the Senate Finance Committee and the House Economic Matters Committee.

#### Section 4-309

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Eligible limited-income customer" means a residential customer of a utility company with annual income that:

    (i)

      (1) is at or below 175% of the federal poverty level; or

      (2) for a customer at least 67 years of age, is at or below 200% of the federal poverty level; or

    (ii) meets a broader designation approved by the Commission.

  (3) "Limited-income mechanism" or "mechanism" means a process approved by the Commission under this section to benefit an eligible limited-income customer of a utility company.

  (4) "Payment plan" means an agreement between an eligible limited-income customer and a utility company to pay an arrearage balance over a specific period of time to avoid disconnection of a utility service.

  (5)

    (i) "Utility company" means an electric company, a gas and electric company, or a gas company.

    (ii) "Utility company" does not include a small rural electric cooperative.

(b) The General Assembly finds and declares that the societal benefits of a well-constructed limited-income mechanism to benefit Maryland's eligible limited-income customers are in the public interest.

(c)

  (1) Subject to the approval of the Commission, a utility company shall adopt a limited-income mechanism to benefit an eligible limited-income customer.

  (2) Notwithstanding Sec. 4-503(b) of this title, the mechanism may take the form of a program, tariff provision, credit, rate, rider, or other means to assist an eligible limited-income customer to afford a utility service.

  (3) A municipal electric utility may adopt a limited-income mechanism subject to the approval of the Commission in the same manner as a utility company in accordance with this section.

(d)

  (1) A utility company that proposes a limited-income mechanism for Commission approval under subsection (c) of this section shall include the proposal in:

    (i) a separate application for approval of the mechanism; or

    (ii) only with the prior approval of the Commission, an application for a base rate proceeding, including an alternative rate proceeding, or any other proceeding to alter the utility company's base rates under the authority of the Commission.

  (2) A proposal submitted under this section shall allocate the prudently incurred costs of the limited-income mechanism across rate classes.

  (3) The proposal shall include:

    (i) a detailed description of the proposed mechanism;

    (ii) the proposed method for allocating the mechanism's costs across customer classes;

    (iii) the rationale supporting the utility company's proposal for a mechanism to benefit the eligible limited-income customers in the utility company's service territory;

    (iv) a time frame and process for the Commission to review the effectiveness of the mechanism after implementation; and

    (v) any other information the Commission considers necessary or useful to evaluate the proposal.

(e) In evaluating a limited-income mechanism, the Commission shall consider:

  (1) the degree to which the mechanism promotes affordability of electricity or natural gas for limited-income customers;

  (2) the public interest in allocating the costs of the mechanism between the utility company's shareholders and rate payers;

  (3) the impact on rates, utility operating costs, customer arrearages, customer disconnections, uncollectible costs, and successful completion of payment plans;

  (4) the ability of a limited-income customer to continue to receive benefits when relocating within the same service territory;

  (5) coordination of benefits under the mechanism with any other public or private assistance that may be available to the customer;

  (6) a minimum level of support or assistance structure to provide equitable availability of limited-income assistance across the State; and

  (7) any other information the Commission considers appropriate.

(f) If an approved limited-income mechanism requires that the Office of Home Energy Programs must certify an eligible limited-income customer's qualifications to participate in a limited-income mechanism, the Office shall certify an eligible limited-income customer's qualifications before the customer may participate in the mechanism.

(g) An eligible limited-income customer who participates in a mechanism under this section may also be eligible for other assistance programs offered in the State, including those offered by a utility company or the Office of Home Energy Programs, the Department of Housing and Community Development, or any other public or private source.

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