The Department shall annually value the operating unit of a public utility on the basis of the value of the operating property of the public utility, by considering: the earning capacity of the operating unit; and all other factors relevant to a determination of value of the operating unit. The Department shall allocate to this State the value of that part of the operating unit that is reasonably attributable to the part located in this State. From the value allocated to this State under subsection (b) of this section, the Department shall deduct: the fair average value of fuel that represents the percentage reduction or exemption authorized by §§ 7–108, 7–222, and 7–226 of this article; and the assessment of operating property, if any, that is exempt by law from property tax. The value remaining after making the deductions shall be divided into an operating real property value and an operating personal property value, as determined by the Department. The value of operating real property is the assessment of operating real property of a public utility. The value of operating personal property is the assessment of operating personal property of a public utility. Operating land of a public utility is valued and assessed by the Department as part of the operating unit and is not valued and assessed by the supervisor. The provisions of this subsection are not intended to alter the law as codified in former Article 81 of the Code that was in effect as of January 31, 1986. Returns, notices, and appeals of operating property assessments shall be administered pursuant to the sections of this article governing personal property assessments. For operating property of a public utility, the Department shall apportion the assessment of that operating property among the counties and municipal corporations where the operating property is located. In determining whether to classify a company as a public utility, the Department shall consider and evaluate whether the company: is subject to the authority of a regulatory body of the State or the federal government, such as the Maryland Public Service Commission, the Federal Communications Commission, or the Federal Energy Regulatory Commission; uses a significant portion of the real and personal property used in its business operations as an integrated whole or unit; provides a basic service to the public; and owns or uses assets that are most appropriately appraised using the unit valuation method. Notwithstanding a company’s failure to meet all of the criteria under paragraph (1) of this subsection, the Department may classify the company as a public utility if the Department determines that the company predominantly meets the criteria. The Department may adopt regulations to carry out the provisions of this section.