# Public Utilities (GPU)

## Title 4. Rate Regulation

### Subtitle 3. Specific Rate Regimes

#### 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)