A public service company may not exercise a franchise granted by law except to the extent authorized by the Commission. A public service company may not exercise a franchise unless it files with the Commission: a certified copy of its charter; and a statement by its president and secretary, signed under oath, that the appropriate local authorities have provided the required consent for the exercise of the franchise.

Without prior authorization of the Commission, a public service company may not: assign, lease, or transfer a franchise or a right under a franchise; enter into any agreement or contract that materially affects a franchise or a right under a franchise; or abandon or discontinue the exercise of a franchise or a right as a whole or in part.

This section does not apply to a merger of or transfer of stock or other ownership interest between: a telephone company; and another entity with a greater than 50% ownership in common with the telephone company. Subject to § 6–101 of this article, without prior authorization of the Commission, a public service company may not purchase, acquire, take, or hold any part of the capital stock of another public service company that operates in Maryland. This subsection applies to corporations that operate in Maryland. Except as provided in paragraph (5) of this subsection, without prior authorization of the Commission, a public service company may not: assume or guarantee an obligation or liability with respect to stocks, bonds, securities, notes, or other evidence of indebtedness that is payable as a whole or in part to any person more than 12 months after the date of issuance; or issue stocks, bonds, securities, notes, or other evidence of indebtedness payable as a whole or in part more than 12 months after the date of issuance. Stocks, bonds, securities, notes, or other evidence of indebtedness described under paragraph (2)(ii) of this subsection shall be issued in accordance with §§ 6–102 and 6–103 of this article. The Commission shall take action on an application for authorization under this section within a reasonable time after receipt. Prior authorization of the Commission is not required for an assumption or guarantee under paragraph (2)(i) of this subsection or an issuance under paragraph (2)(ii) of this subsection made by a gas company, electric company, or telephone company whose gross annual revenues, for the most recent calendar year for which data are available, are less than 3% of the total gross annual revenues of all public service companies in the State during the same calendar year, if the gas company, electric company, or telephone company: provides prior written notice to the Commission of the transaction; and obtains approval of the transaction from the entity in another state that regulates the gas company, electric company, or telephone company.

This section does not apply to: a municipal corporation, sanitary district, or other unit of government; an individual, for the construction of a water system or sewage disposal system for the individual’s personal or private use; or a group of individuals for their joint personal or private use, unless the Commission finds that the joint use is for the purpose of generally serving a proposed new housing development. Without the prior authorization of the Commission, a person may not construct a water system or sewage disposal system for public use. The Commission may authorize the construction of a water system or sewage disposal system for public use only on a finding that the construction of the water system or sewage disposal system is in the public interest. In determining whether the proposed construction of the water system or sewage disposal system is in the public interest, the Commission shall consider: the financing plans for the proposed construction; and other pertinent facts and circumstances. An applicant for authorization to construct a water system or sewage disposal system: shall fully disclose to the Commission the financing plans for the construction; and has the burden of proof to satisfy the Commission that the construction is in the public interest. After a hearing, the Commission may revoke an authorization to construct a water system or sewage disposal system if the Commission finds that the revocation is in the public interest. An order of revocation may be appealed in accordance with § 3-204 of this article. Subject to action of the Commission under § 3-205 of this article, the filing of an appeal does not stay an order of revocation. After the Commission issues an order of revocation, the water system or sewage disposal system may not be operated until the revocation is repealed by: the Commission; or the final disposition of an appeal from the order of revocation.

Without prior authorization of the Commission, a person may not transfer a controlling interest in a water company or sewage disposal company to another person. The Commission may authorize the transfer of a controlling interest in a water company or sewage disposal company if the Commission finds that the transfer is consistent with the public convenience and necessity.