Title 4. Rate Regulation — Subtitle 5. Prohibitions
Statutes in effect as of October 1, 2026.
Md. Code Ann., Pub. Util. § 4-501 (2026)
Title 4. Rate Regulation
Subtitle 5. Prohibitions
§ 4–501LinkCopy Citation
(a)
In its utility operations, a public service company may not:
(1)
sell, render services, or furnish a commodity until the public service company files and publishes its rate schedules in accordance with § 4–202 of this title; or
(2)
demand or collect:
(i)
compensation that differs from compensation specified in its rate schedules that are in force at the time of the demand or collection; or
(ii)
a charge that violates this division.
(b)
A person may not assist, allow, or attempt to assist or allow the actions prohibited under this section by any means, including false billing, false classification, false weighing, or false report of weight, even if a public service company or its personnel consents to or connives with the prohibited action.
Md. Code Ann., Pub. Util. § 4-502 (2026)
Title 4. Rate Regulation
Subtitle 5. Prohibitions
§ 4–502LinkCopy Citation
In an action by a public service company to collect a charge, the public service company may not recover any amount if, in the transaction that is the subject of the action, the public service company demanded a rate greater than that lawful under this division when the charge was made.
Md. Code Ann., Pub. Util. § 4-503 (2026)
Title 4. Rate Regulation
Subtitle 5. Prohibitions
§ 4–503LinkCopy Citation
(a)
This section does not apply to service rendered or commodities furnished:
(1)
to the officers, employees, pensioners, and immediate family members of the officers, employees, and pensioners of a public service company;
(2)
to the United States, the State, or a local government;
(3)
to provide relief in cases of general epidemic, pestilence, flood, or other similar calamity;
(4)
in the case of common carriers, to transport:
(i)
personnel of another common carrier that reciprocates for personnel of the transporting common carrier;
(ii)
hospital patients;
(iii)
indigent, destitute, and homeless individuals;
(iv)
persons exclusively engaged in charitable work;
(v)
residents of federal or State veterans homes, including those about to enter a home or those returning from a home;
(vi)
railway mail service employees and baggage agents;
(vii)
post office, customs, and immigration inspectors;
(viii)
newspaper vendors;
(ix)
property for exhibition carried to or from fairs and expositions;
(x)
employees of sleeping car companies, express companies, telegraph companies, and telephone companies doing business along the line of the common carrier;
(xi)
persons and property incident to or connected with contracts for construction, operation, or maintenance of the plant of the transportation company, to the extent provided in the contracts;
(xii)
individuals injured in accidents and physicians, nurses, or other necessary caretakers attending the injured individuals in transit;
(xiii)
children under the age of 5 years for no charge;
(xiv)
children under 12 years for half fare; or
(xv)
persons at free or reduced rates that are otherwise authorized by law;
(5)
in the case of common carriers, for the issuance of mileage, excursion, or commuter tickets;
(6)
to free steamboat excursion transportation from May through August of each year, from Baltimore City to any place in the State, in exchange for services rendered in advertising the excursion business;
(7)
to obtain essential data by a method that uses a limited sample of customers, in connection with a rate structure study conducted under formal proceedings before the Commission;
(8)
to telephone lifeline service provided to eligible subscribers under § 8–201 of this article; or
(9)
to electricity or gas service provided to eligible limited–income customers through an approved limited–income mechanism under § 4–308 of this title.
(b)
For any service rendered or commodity furnished, a public service company may not directly or indirectly, by any means, including special rates, rebates, drawbacks, or refunds:
(1)
charge, demand, or receive from a person compensation that is greater or less than from any other person under substantially similar circumstances;
(2)
extend a privilege or facility to a person, except those privileges and facilities that are extended uniformly to all persons under substantially similar circumstances;
(3)
discriminate against a person, locality, or particular class of service; or
(4)
give undue or unreasonable preference to or cause undue or unreasonable prejudice to a person, locality, or particular class of service.
Md. Code Ann., Pub. Util. § 4-504 (2026)
Title 4. Rate Regulation
Subtitle 5. Prohibitions
§ 4–504LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
(i)
“Bonus” means a form of direct or indirect payment, consideration, or compensation that is paid or conveyed to an employee of a public service company in addition to the employee’s base pay.
(ii)
“Bonus” includes:
(1)
compensation that the public service company does not formally label as a bonus payment;
(2)
any form of incentive compensation the fact and amount of which is under the discretion of the public service company until a time close to the end of the period for which the incentive payment is paid; and
(3)
payments given in addition to base pay that are contingent on the occurrence of one or more events or conditions.
(3)
(i)
“Compensation” means a form of payment or consideration conveyed to or for the benefit of an employee of a public service company, the parent company of a public service company, or any other affiliate of a public service company in connection with the employee’s work for a public service company.
(ii)
“Compensation” includes:
(1)
direct and indirect methods of conferring benefits;
(2)
cash and noncash benefits;
(3)
salary, bonuses, period payments, and severance pay; and
(4)
the value of a perquisite, compensatory or paid leave, or other benefit not excluded under subparagraph (iii) of this paragraph.
(iii)
“Compensation” does not include any expenditure of a public service company for health, medical, dental, vision, or life insurance or disability pay.
(4)
“Supervisor” means an employee of a public service company, the parent company of a public service company, or any other affiliate of a public service company who:
(i)
using the employee’s independent judgment:
(1)
is authorized by the employee’s employer to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees;
(2)
is responsible for directing the work performance of other employees; and
(3)
is responsible for responding to employee complaints; or
(ii)
is employed in a bona fide executive capacity under the federal Fair Labor Standards Act.
(b)
This section applies only to a public service company that is an investor–owned electric company, gas company, or combination gas and electric company.
(c)
A public service company may not recover through rates any costs associated with:
(1)
membership, dues, sponsorships, or contributions to an industry trade association, group, or related entity exempt from taxation under § 501(c)(6) of the Internal Revenue Code;
(2)
the acquisition, use, or allocation of costs associated with a private plane that is owned or leased by the public service company or its holding company; or
(3)
compensation for a supervisor that exceeds 110% of the maximum annual salary payable to the chair of the Commission for the same calendar year.
(d)
(1)
The board of directors of each public service company shall adopt a company–wide policy placing reasonable cost limitations on expenditures that the public service company intends to recover through rates for:
(i)
entertainment and events;
(ii)
office and facility renovations;
(iii)
transportation services, including aviation;
(iv)
staff development activities or events;
(v)
performance incentives; and
(vi)
other activities outside the scope of the normal course of business operations.
(2)
Each public service company shall send a copy of the policy adopted under paragraph (1) of this subsection to the Commission:
(i)
as soon as practicable; and
(ii)
each time the policy is updated, but not less than once every 5 years.
(3)
The Commission may review in a base rate proceeding the reasonableness of the cost limitations in a policy adopted under paragraph (1) of this subsection.