# Public Utilities (GPU)

## Title 7. Gas, Electric, and Water Companies

### Subtitle 1. General Provisions

#### Section 7-101

Except as otherwise provided by law, the provisions of this subtitle are not subject to the jurisdiction of the Commission.

#### Section 7-102

(a) A gas company incorporated in Maryland may:

  (1) manufacture artificial gas;

  (2) sell or furnish any quantity of natural gas or artificial gas that may be required in any municipal corporation or county of the State;

  (3) lay pipe under the roadways or other public ways of any county or municipal corporation of the State to transmit natural gas or artificial gas; and

  (4) connect the pipe from the place of supply to any structure or object.

(b)

  (1) A gas company must have the consent of the governing body of the municipal corporation or county before laying any gas pipe in accordance with subsection (a) of this section.

  (2) The governing body of the municipal corporation or county may adopt reasonable regulations and conditions for the laying of a gas pipe, including regulations requiring the gas company to refill and repave any roadway or other public way under which the pipe is laid.

(c) A gas company, whether incorporated in Maryland or another state, that is authorized by a governing body of a municipal corporation or county to lay or maintain pipe or other structures in a roadway or other public way or place shall obtain consent from the Commission before using the pipe or other structure to transmit and supply natural gas, artificial gas, or a mixture of natural gas and artificial gas.

(d) This section does not:

  (1) extend the duration of a franchise granted by the governing body of a municipal corporation or county; or

  (2) except as provided in this section, change the terms or conditions of the franchise.

#### Section 7-103

(a) An electric company incorporated in Maryland may:

  (1) manufacture, sell, and furnish electric power in any municipal corporation or county of the State;

  (2) construct a power line to transmit power under, along, on, or over the roadways or public ways of any municipal corporation or county of the State; and

  (3) connect the power line from the place of supply to any other structure or object.

(b)

  (1) An electric company must have the consent of the governing body of the municipal corporation or county before laying or constructing any power line in accordance with subsection (a) of this section.

  (2) The governing body of the municipal corporation or county may adopt reasonable regulations and conditions for the laying of a power line, including regulations requiring the electric company to refill and repave any roadway or public way under which the power line is laid.

#### Section 7-104

The formation, organization, and governance of electric cooperatives incorporated in Maryland are governed by Title 5, Subtitle 6 of the Corporations and Associations Article.

#### Section 7-105

(a) A water company incorporated in the State has the powers necessary for the purposes for which it is incorporated and may:

  (1) acquire, possess, and use land, water rights, and other property for those purposes; and

  (2) lay pipes and construct works necessary or suitable to carry out its purposes.

(b)

  (1) A water company shall obtain the consent of the governing body of the municipal corporation or county before laying pipes or constructing waterworks in that jurisdiction under subsection (a) of this section.

  (2) The governing body of the municipal corporation or county may adopt reasonable regulations for the laying of pipes, construction of works, and operations of a water company.

(c) This section does not authorize the incorporation of a water company to operate in Baltimore City.

#### Section 7-106

(a) This section does not qualify, limit, or abridge the power and authority, or the manner of exercise of any power and authority, conferred on a municipal corporation by its charter or a special act of the General Assembly to sell, lease, exchange, or otherwise dispose of any electric plant or gas plant.

(b) This section does not apply to:

  (1) Talbot County;

  (2) Washington County; or

  (3) the municipal corporation of Berlin, Centreville, Hagerstown, Rock Hall, or Snow Hill.

(c) Subject to subsection (d) of this section, a municipal corporation that owns an electric plant or a gas plant may sell, lease, exchange, or otherwise dispose of the plant, or any part of or interest in the plant, to any electric company or gas company on terms and conditions determined by the municipal corporation.

(d)

  (1) The sale, lease, exchange, or other disposition of an electric plant or a gas plant by a municipal corporation is subject to approval by the Commission.

  (2) If the Commission approves the sale, lease, exchange, or other disposition, at least twice within 15 days after the date of the order of approval by the Commission, the municipal corporation shall publish notice of the sale, lease, exchange, or other disposition and of the approval by the Commission:

    (i) in a newspaper published in the municipal corporation; or

    (ii) if no newspaper is published in the municipal corporation, in a newspaper published in the county in which the municipal corporation is located.

(e)

  (1) A proposed sale, lease, exchange, or other disposition of a municipally owned electric plant or gas plant shall be ratified at a special election by the affirmative vote of a majority of the residents of the municipal corporation eligible to vote at the last preceding regular election for municipal officers if a petition, subject to paragraph (2) of this subsection, is delivered to the municipal corporation requesting the municipal corporation to hold a special election for the ratification or disapproval of the proposed sale, lease, exchange, or other disposition.

  (2) A petition under paragraph (1) of this subsection shall be:

    (i) in writing;

    (ii) signed by at least 10% of the residents of the municipal corporation eligible to vote at the last preceding regular election for municipal officers; and

    (iii) delivered within 30 days after the date of publication of the second notice required under subsection (d)(2) of this section.

  (3) The municipal corporation shall hold a special election under this subsection at the time and place in the municipal corporation and in the manner that the municipal corporation requires.

  (4) If the sale, lease, exchange, or other disposition is ratified at the special election, the municipal corporation shall consummate the sale, lease, exchange, or other disposition.

(f)

  (1) If a petition for a special election is not delivered to the municipal corporation in accordance with subsection (e) of this section:

    (i) ratification at a special election is not required; and

    (ii) the municipal corporation shall consummate the sale, lease, exchange, or other disposition.

  (2) A sale, lease, exchange, or other disposition that is consummated under this subsection is as valid and effective as a disposition ratified under subsection (e) of this section.

#### Section 7-107

Subject to the regulations of the Commission, the County Commissioners of Garrett County may adopt, amend, and enforce a reasonable charge for discontinuing and restoring water service.

#### Section 7-108

(a)

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

  (2) "Affiliate" has the meaning stated in Sec. 7-501 of this title.

  (3) "Meeting" means any committee, user group, task force, or other part of the regional transmission organization in which votes are taken.

  (4) "Recorded vote" means a vote that is tabulated, either individually or as part of a sector, for any purpose at a meeting, regardless of:

    (i) whether the vote represents a final position of any person casting the vote; or

    (ii) the decision-making authority of those voting.

  (5) "Regional transmission organization" means an entity that qualifies as a regional transmission organization under 18 C.F.R. Sec. 35.34.

(b) This section does not apply to a municipal electric utility.

(c)

  (1) On or before February 1 each year, each electric company shall submit to the Commission a report on each recorded vote cast by the electric company or, subject to paragraph (2) of this subsection, a State affiliate of the electric company at a meeting of a regional transmission organization during the immediately preceding calendar year.

  (2) The report shall include:

    (i) all recorded votes cast by the electric company, regardless of whether the vote is otherwise disclosed; and

    (ii) all votes cast by a State affiliate of the electric company if the electric company itself does not vote on the matter.

#### Section 7-109

(a) This section does not apply to an electric cooperative.

(b) A person that owns or operates a transmission line that is designed to carry a voltage in excess of 69,000 volts and is located in the State shall participate as a member in a regional transmission organization.

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