# COMAR Title 20 — Public Service Commission

## Subtitle 07 — Practice and Procedure

### Chapter 01 — General

**Authority:** Public Utilities Article, §§2-112, 2-113, 2-121, 3-101, 3-104, and 3-113, Annotated Code of Maryland

**Administrative History:** Effective date: August 15, 1910

**Administrative History:** Regulations .01—.08 revised effective May 8, 1911, May 3, 1912, and October 19, 1914

**Administrative History:** Regulation .01-1 adopted effective September 21, 1986 (13:19 Md. R. 2121)

**Administrative History:** Regulation .09 adopted effective August 4, 1972 (Order No. 59884)

**Administrative History:** Regulation .09 repealed effective July 31, 1995 (22:15 Md. R. 1120)

#### Regulation .01 Principal Office.

*COMAR 20.07.01.01*

The principal office of the Commission shall be at the William Donald Schaefer Tower, 6 St. Paul Street, Baltimore, Maryland 21202.

#### Regulation .01-1 Waivers of Regulations.

*COMAR 20.07.01.01-1*

A regulation in this subtitle may be waived by the Commission for good cause shown.

#### Regulation .02 Sessions of the Commission.

*COMAR 20.07.01.02*

A. Stated sessions of the Commission shall be held at its office on Wednesday of each week, between the hours of 10 a.m. and 1 p.m. At stated sessions, the Commission will transact routine business and will sit for the consideration of all matters which may properly be brought before it.

B. Special sessions of the Commission for all authorized purposes may be held at such times and places as the Commission may direct.

#### Regulation .03 Quorum and Conduct of Proceedings.

*COMAR 20.07.01.03*

A. Quorum of Commission. A majority of the Commission shall constitute a quorum for the purpose of administering generally the provisions of the Public Utilities Article, Annotated Code of Maryland.

B. Formation of Panels.

  (1) Subject to the reserved right of the Commission to determine which proceedings shall be conducted en banc, the Chairman shall determine the composition of panels, assign cases to them, designate the presiding officer, and also determine the cases to be referred to the Hearing Examiner Division.

  (2) Panels shall consist of three commissioners or two commissioners and a hearing examiner.

C. Quorum for Panels. A majority of the three-member panel shall constitute a quorum for both conducting the proceeding and for the passage of a final order.

D. Absence of Chairman. The Chairman shall designate a member of the Commission to act in his absence to discharge his duties under this regulation for the formation of hearing panels and the assignment of cases.

#### Regulation .04 Representation by Counsel.

*COMAR 20.07.01.04*

A. All parties, except individuals appearing in their own behalf, shall be represented by attorneys-at-law, who are duly admitted and enrolled to practice before the Court of Appeals of this State when the Commission is performing a quasi-judicial function as distinguished from a legislative, executive, or a ministerial function.

B. A nonresident attorney may not be allowed to enter his appearance in a case before the Commission except upon motion, which will not ordinarily be granted unless some attorney with a full-time office in this State is associated with him or her in the matter.

#### Regulation .05 Reports of Accidents.

*COMAR 20.07.01.05*

Reports of all accidents required to be filed with the Commission shall be made in writing within 30 days after its happening, or as prescribed by order of the Commission duly served.

#### Regulation .06 Practice on Receiving Petitions.

*COMAR 20.07.01.06*

A. On receiving a petition, application, or complaint in writing, the Commission will refer it to the Secretary for examination. If it is found to conform to these regulations and all statutory provisions, the Secretary shall report that fact to the Commission. If it does not so conform, he shall advise the applicant of the defects, which may then be corrected.

B. When the papers and any accompanying exhibits are in proper form, a time and place for a hearing on them may be appointed. The Commission will, in each case, direct what notice of a hearing shall be given, whether by publication or otherwise, and to whom.

C. The applicant shall furnish at its expense, for the use of the Commission in determining the application, the originals of all books, papers, and documents which it may require, or certified or verified copies of them. The failure to do so shall be ground for refusing the application.

#### Regulation .07 Size of Papers Filed.

*COMAR 20.07.01.07*

All petitions, complaints, applications, answers, briefs, and other papers filed with the Commission, shall be printed or typewritten, whenever practicable, upon sheets not more than 11 inches long and 8-1/2 inches wide.

#### Regulation .08 Applications for Extension of Time for Filing Reports.

*COMAR 20.07.01.08*

A. An application by a corporation, firm, or person for an extension of the time within which a report is or may be required to be filed with the Commission, shall be in writing, filed before the expiration of the period, the extension of which is deemed necessary, and shall state in detail:

  (1) What, if any, effort has been made by the applicant to prepare the report;

  (2) Any facts tending to show why the report cannot be made and filed within the time prescribed;

  (3) Any other facts which may make an extension of time necessary or proper; and

  (4) The further period of time deemed necessary by the applicant within which to make and file the report.

B. The Commission may hold a hearing on the petition, and in that event the applicant shall attend, and produce such witnesses and documents relative to its request as the Commission shall require.

### Chapter 02 — Hearings and Investigations

**Authority:** Public Utilities Article, §§2-112, 2-113, 2-115, 2-121, 3-101, 3-104, 3-109, 3-113, and 3-114, Annotated Code of Maryland

**Administrative History:** Effective date: August 15, 1910

**Administrative History:** Revised effective May 8, 1911, May 3, 1912, and October 19, 1915

**Administrative History:** Regulations .06D and .13C amended effective May 10, 1982 (9:9 Md. R. 911)

**Administrative History:** Regulations .09 and .10 amended effective January 23, 1981 (8:2 Md. R. 118)

**Administrative History:** Annotation:COMAR 20.07.02.08 cited in Radio Communications, Inc. v. Public Service Commission of Maryland, et al., 50 Md. App. 422 (1981)

#### Regulation .01 Stipulations.

*COMAR 20.07.02.01*

The parties to a hearing, investigation, or other proceeding before the Commission may, by stipulation in writing filed with the Commission, agree upon the facts or any of the facts involved therein, which stipulation, if filed, shall be regarded and used as evidence at the hearing, investigation, or other proceeding. The Commission may, nevertheless, require such additional evidence as it may deem necessary.

#### Regulation .02 Character of Testimony.

*COMAR 20.07.02.02*

Except when stipulations are filed, the witnesses whose testimony may be desired at a hearing, investigation, or proceeding before the Commission, or before a Commissioner or hearing examiner as authorized by Public Utilities Article, §3-104, Annotated Code of Maryland, shall testify orally and under oath, unless the Commission, Commissioner, or hearing examiner for good cause shown deems it proper in special cases that written evidence, under affidavit or otherwise, be submitted.

#### Regulation .03 Subpoenas.

*COMAR 20.07.02.03*

A. Subpoenas for witnesses may be signed and issued by the Secretary or by the Commission or a Commissioner, and may be served by any person of full age designated by the Commission, or by a Commissioner or the Secretary, or through the sheriff's office of any city or county of the State.

B. The Commission may cause subpoenas and subpoenas duces tecum to be issued upon its own motion, or upon the application of any party to a hearing or investigation, but subpoenas duces tecum may not be issued upon application, unless the application is in writing and describes the books, papers, or other documents to be produced.

#### Regulation .04 Evidence.

*COMAR 20.07.02.04*

A. The complainant should in all cases establish the facts alleged to constitute a violation of the law, unless the defendant admits the same or fails to answer the complaint. Upon request by the complainant, the Commission may assign counsel to appear for him or them, in conformity with Chapter 563 of the Acts of the General Assembly of Maryland, 1912.* The defendant shall also give evidence of the facts alleged in the answer, unless admitted by the complainant, and shall fully disclose his or its defense at the hearing.

*Since amended by Ch. 534 of the Acts of 1924 and by Ch. 201 of the Acts of 1927.

B. In case of failure to answer, the Commission will take such proof of the facts as may be deemed proper and reasonable and make such order on them as the circumstances of the case require.

#### Regulation .05 Documentary Evidence.

*COMAR 20.07.02.05*

In all cases when documentary evidence is offered, the Commission, in its discretion, in lieu of requiring the originals to be filed, may accept true copies of the evidence or of such parts of it as may be relevant, or may require the evidence to be transcribed as part of the record.

#### Regulation .06 Briefs.

*COMAR 20.07.02.06*

A. The Commission or presiding officer may, whenever it deems desirable, require the filing of printed or typewritten briefs on behalf of any party or parties to an investigation, hearing, or other proceeding, and may fix the time for the filing of the briefs. Concurrent briefs are preferable. The briefs shall contain an abstract of the evidence and also the arguments relied on by the party or parties filing them.

B. A brief may not exceed 50 pages in length if produced by letterpress, multilith, or photo offset, or 60 pages in length if typewritten and reproduced by any other duplicating or copying process which produces a clear, readable black image on white paper, except by special permission of the Commission or presiding officer. This limitation does not apply to an appendix or to a table of contents and authorities. A brief of more than 20 pages shall contain a subject index and a table of authorities.

C. A request for an extension of time to file briefs shall be made in writing, and a copy of it served upon or mailed to the other parties to the proceeding. Ordinarily, when a matter has been submitted on concurrent briefs, extensions may not be granted unless a stipulation is filed with the Commission or presiding officer. The original of each brief shall contain a certification that copies have been served upon or mailed to each party or his attorney.

D. Unless otherwise prescribed or required by the Commission or presiding officer, each party to the proceeding shall file the original and a minimum of nine copies with the Commission or presiding officer.

#### Regulation .07 Adjournments and Extensions.

*COMAR 20.07.02.07*

The Commission may, either upon its own motion or upon application, adjourn all hearings from time to time and may grant such extensions of time for compliance with its orders or other acts, as it may deem proper, provided that no requirement of law be violated by the extension, and that this section may not apply to extensions of time for filing reports.

#### Regulation .08 Rehearings.

*COMAR 20.07.02.08*

A. Applications for reopening a cause after final submission, or for rehearing after final order, shall be made by petition in writing, stating specifically the grounds upon which the application is based.

B. If the application is to reopen the cause for further evidence, the nature and purpose of the evidence shall be stated, and may not be merely cumulative.

C. If the application is for a rehearing, the petition shall specify the findings of fact or of law claimed to be erroneous, together with a brief statement of the ground of the alleged error.

D. A petition seeking to reverse or modify a decision, order, or requirement of the Commission shall:

  (1) Fully set forth the facts, circumstances, and consequences relied upon; and

  (2) Allege:

    (a) The facts and circumstances which have arisen after the hearing or order which justify the reversal or modification; or

    (b) The consequences resulting from compliance with the decision, order, or requirement which justify or entitle the applicant to the reversal or modification.

#### Regulation .09 Investigations on the Commission's Own Motion.

*COMAR 20.07.02.09*

A. In every case in which the Commission is authorized by the Public Utilities Article, Annotated Code of Maryland, to make investigations on its own motion, it may, if it deems proper, conduct its investigations ex parte and without notice to the person or persons concerned.

B. If the Commission conducts an ex parte investigation, before passing any final order the Commission shall formulate a complaint, setting forth fully and clearly the acts, omissions, or matters which are the subject of the investigation, and shall pass an order directed to the person or persons investigated requiring that the complaint be satisfied or answered within 20 days from the service of the complaint and order or within such less time as the Commission may prescribe.

C. The complaint and order shall be served on the person or persons complained of in any manner authorized by law, and thereafter the proceedings shall go forward as set forth in COMAR 20.07.03, so far as the provisions of COMAR 20.07.03 apply.

#### Regulation .10 Investigations at Corporation's Request.

*COMAR 20.07.02.10*

In all cases in which the Commission, at the request of or complaint of a corporation subject to the provisions of the Public Utilities Article, Annotated Code of Maryland, may undertake an investigation with a view to granting to the corporation any application which the corporation may be authorized under the law to make, the Commission may, in its discretion, give all other persons or corporations who may be affected by the application or the investigation an opportunity for a hearing, either by service upon them of a copy of the request or complaint, or by publication of the substance of it, at the expense of the corporation, for such length of time and in such newspaper or newspapers as the Commission may deem desirable.

#### Regulation .11 Special Requirements.

*COMAR 20.07.02.11*

The provisions in this regulation as to hearings and investigations may not be taken to affect any further or additional provisions or requirements which may be prescribed in these regulations for special cases.

#### Regulation .12 Examination of Witnesses.

*COMAR 20.07.02.12*

In a proceeding involving an application by a public service company seeking authority of the Commission to increase rates and charges for the utility service and when the direct testimony of witnesses has been pre-filed with the Commission and the intervening parties to the proceeding not less than 10 days before the scheduled appearance of witnesses at a hearing, cross-examination shall be limited to a maximum of 30 minutes per witness per intervening party to the proceeding. Re-direct of witnesses and recross-examination of witnesses on their re-direct testimony shall be limited to a maximum of 20 minutes, respectively, per witness per intervening party. Nothing in these regulations shall be construed in any way to apply to the Office of People's Counsel.

Agency Note: See U.S. v. Public Service Commission, 422 F. Supp. 676 (D. Md., 1976), Civil No. B-74-1264.

#### Regulation .13 Appeals From Proposed Orders of Hearing Examiners.

*COMAR 20.07.02.13*

A. A party noting an appeal to the Commission from a Proposed Order of Hearing Examiner shall, within 10 days after filing a Notice of Appeal, file with the Commission, and serve on all other parties, a Memorandum on Appeal. A Reply Memorandum may be filed in response to a Memorandum on Appeal within 20 days after the date of the filing of the Memorandum on Appeal. Further response will not be entertained unless the Commission orders otherwise.

B. Memorandum on Appeal.

  (1) A Memorandum on Appeal shall contain:

    (a) A short statement of the case;

    (b) A summary of the basic position of the party filing;

    (c) The grounds upon which the appeal rests; and

    (d) The argument in support of the appeal with appropriate references to the record and legal authorities.

  (2) In addition, a party may, in a Memorandum on Appeal, set forth proposed specific findings which it considers to be supported by the record in the proceedings. A Reply Memorandum shall generally follow the same style prescribed for a Memorandum on Appeal, but may omit a statement of the case if it was correctly stated in the Memorandum on Appeal.

C. A Memorandum on Appeal and a Reply Memorandum shall be self-contained and limited to 15 pages in length, provided that for good cause the limitation on length may be altered or waived for either class of memorandum upon application to and order of the Commission within the time limit for filing of the respective memorandums. Nine copies of the memorandum shall be filed with the Commission.

D. There shall accompany and be attached to each Notice of Appeal, Memorandum on Appeal, and Reply Memorandum a Certificate of Service stating that the document has been served on every other party to the proceeding.

### Chapter 03 — Complaints

**Authority:** Public Utilities Article, §§2-112, 2-121, 3-101, 3-102, and 4-503, Annotated Code of Maryland

**Administrative History:** Effective date: August 15, 1910

**Administrative History:** Revised effective May 8, 1911, May 3, 1912, and October 19, 1914

**Administrative History:** Regulations .01—.10 repealed and new Regulations .01—.04 adopted effective August 6, 1990 (17:15 Md. R. 1862)

**Administrative History:** Regulation .04A amended effective June 15, 1998 (25:12 Md. R. 947)

#### Regulation .01 Applicability.

*COMAR 20.07.03.01*

A. This chapter applies to complaints filed under Public Utilities Article, §3-102, Annotated Code of Maryland, against public service companies subject to the jurisdiction of this Commission, which allege a violation of the Public Service Commission's law, orders, or regulations.

B. This chapter also governs disputes appealed to the Commission under COMAR 20.32.

#### Regulation .02 Form and Contents.

*COMAR 20.07.03.02*

A complaint or appeal filed under this chapter shall be in writing and shall provide:

A. The name of the public service company which is the subject of the complaint;

B. The name and address of the complainant;

C. The name and address of the complainant's attorney, if any;

D. A detailed description of the act, omission, or matter complained of, with relevant supporting documentation;

E. Specific reference to the law, regulation, or order that is alleged to have been violated, and the basis for the allegation; and

F. Other facts or matters relevant to the complaint that may be required by the Public Utilities Article, Annotated Code of Maryland, or necessary to fully acquaint the Commission with the details of the complaint.

#### Regulation .03 Complaint Procedures.

*COMAR 20.07.03.03*

A. When a complaint is received, the Commission may:

  (1) Conduct an ex parte investigation;

  (2) Issue a satisfy or answer order to the public service company complained of, in a manner prescribed by the Commission; or

  (3) Dismiss the complaint if it fails to state a claim upon which relief can be granted.

B. If the Commission issues a satisfy or answer order, the public service company shall respond within 20 days or a time period prescribed by the Commission.

C. A public service company shall promptly notify the Commission if it satisfies a complaint before the time allowed in a satisfy or answer order.

D. After investigation or expiration of the time allowed for satisfaction or answer, the Commission may:

  (1) Determine whether relief should be granted based on the information submitted by the complainant and the public service company; or

  (2) Conduct hearings as necessary.

#### Regulation .04 Appeal Procedures.

*COMAR 20.07.03.04*

When an appeal from COMAR 20.32 is received, the Commission may:

A. Determine whether relief should be granted based on the information submitted by the complainant/appellant, the public service company, and the investigation of the Consumer Affairs Division;

B. Dismiss the appeal if it fails to state a claim upon which relief can be granted; or

C. Conduct further investigations, proceedings, or hearings as necessary.

### Chapter 04 — Applications Pursuant to the Public Utilities Article

**Authority:** Public Utilities Article, §§2-112, 2-115, 2-121, 3-101, 3-104, 4-101—4-207, 4-503, 5-103, 5-201—5-203, 5-205, 6-101—6-104, 7-210, and 9-103, Annotated Code of Maryland

**Administrative History:** Effective date: August 15, 1910

**Administrative History:** Regulations .01—.06 and .12 revised effective May 8, 1911, May 3, 1912, and October 19, 1914

**Administrative History:** Regulation .02 amended effective September 21, 1986 (13:19 Md. R. 2122); January 1, 2007 (33:26 Md. R. 1998)

**Administrative History:** Regulation .02C amended effective March 18, 2013 (40:5 Md. R. 412)

**Administrative History:** Regulation .07 adopted effective January 23, 1981 (8:2 Md. R. 118)

**Administrative History:** Regulation .07C amended effective May 10, 1982 (9:9 Md. R. 911)

**Administrative History:** Regulation .08 effective August 3, 1968 (Order No. 62950)

**Administrative History:** Regulation .09 effective August 1, 1973 (Order No. 60353)

**Administrative History:** Regulation .10 effective May 15, 1963 (Order No. 55165)

**Administrative History:** Regulation .10 amended effective January 1, 2007 (33:26 Md. R. 1998)

**Administrative History:** Regulation .11 effective September 13, 1962 (Order No. 54994)

**Administrative History:** Regulation .11 repealed and new Regulation .11 adopted effective January 1, 2007 (33:26 Md. R. 1998)

**Administrative History:** Regulation .13 adopted effective May 10, 1982 (9:9 Md. R. 911)

#### Regulation .01 Financial Condition Defined.

*COMAR 20.07.04.01*

Whenever a corporation subject to the Public Utilities Article, Annotated Code of Maryland, is required or called upon to disclose its financial condition, whether under this subtitle or otherwise, the information shall be given, as far as practicable, in appropriate schedules, which shall show the following:

A. Amount and classes of stock authorized;

B. Amount and classes of stock issued;

C. Terms of preference of all preferred stock;

D. Brief description of each mortgage upon any property of the corporation, giving the date of execution, name of the trustee, amount of indebtedness authorized to be secured by the mortgage, amount of indebtedness actually secured, and brief description of the mortgaged property or collateral;

E. Number and amount of bonds authorized and issued under each mortgage, describing each class separately, giving date of issue, par value, rate of interest, date of maturity, and how secured;

F. Other indebtedness of all kinds, giving them by classes and describing security, if any;

G. Amount of interest paid during the previous fiscal year upon each species of indebtedness and the rate of interest, and if different rates were paid, the amount paid at each rate;

H. Amount of dividends paid upon each class of stock during the previous fiscal year and the rate;

I. Detailed statement of earnings and expenditures for the previous fiscal year and balance sheet showing the condition at the close of the year.

#### Regulation .02 Applications for Authority to Issue Stocks, Bonds, Notes and Other Evidences of Indebtedness.

*COMAR 20.07.04.02*

A. Application. Except for an application to issue rate stabilization bonds under Regulation .11 of this chapter, an application made to the Commission by a public service company for authority under Public Utilities Article, §6-102, Annotated Code of Maryland, to issue any stock, bonds, notes, or other evidences of indebtedness shall include:

  (1) The amount and terms of the proposed issue, the purposes for which the proceeds are to be used, and the nature of the security, if any.

  (2) If the purpose is the acquisition of property, a general description of the property, from whom it is to be acquired, and the terms of the contract for the acquisition, if any has been made. Names of the owners of property to be acquired for rights of way need not be set out, but a general description of the proposed route will be sufficient.

  (3) If the purpose is for the construction, completion, extension, or improvement of facilities, the existing facilities shall be set forth as well as those proposed.

  (4) If the purpose is the improvement or maintenance of service, the existing service shall be set forth as well as any improvements or betterments proposed.

  (5) If the purpose is the refunding of obligations, the obligations shall be described fully, showing character, amount, date of issue, date of maturity, and all other material facts concerning them.

  (6) The financial condition of the applicant.

  (7) If the application is for the issue of bonds to be secured by an existing mortgage, the amount of the bonds, if any, already issued under the mortgage, and the amount and application made of the proceeds of them.

  (8) If the proceeds are to be used for construction, completion, extension, or improvement purposes, the affidavit of a competent person shall be annexed, showing the estimated cost in reasonable detail.

  (9) In applications for the issue of stock, the application shall state that no franchise or right is capitalized, directly or indirectly, except as authorized by the Public Utilities Article, Annotated Code of Maryland. If it is proposed to capitalize any franchise or right as therein authorized, there shall be filed with the application a verified copy of the franchise, and an affidavit of the proper officer of the State, county, or municipality granting it, showing the amount that has been actually paid for the franchise or right.

  (10) If any contract, agreement, or arrangement, verbal or written, has been made to sell the stock, bonds, notes, or other evidence of indebtedness proposed to be issued, the contract, agreement, or arrangement shall be described in full, and a copy of it shall be attached to the application.

  (11) If no contract, agreement, or arrangement has been made for the sale or other disposal of the stock, bonds, notes, or other evidence of indebtedness proposed to be issued, there shall be attached to the application an affidavit of a competent person showing the amount that can probably be realized from the sale or disposition of them and the reasons for the opinion of the affiant.

  (12) There shall be attached to the application an affidavit made by at least three of the directors of the applicant, showing that it is the intention of the applicant in good faith to use the proceeds of the stock, bonds, notes, or other evidence of indebtedness proposed to be issued, for the purposes set forth in the petition.

B. Notice. Within 2 weeks of the filing of an application, and for the next succeeding week, the public service company shall give notice of the filing of an application under §A of this regulation with the Commission by publishing an advertisement in a newspaper of general circulation in each county in the distribution territory served by the company.

C. Final Order. An order of the Commission granting an application, or any part of it, shall:

  (1) Prescribe the purpose for which the proceeds of the security or obligation authorized shall be used;

  (2) Direct the applicant to report to the Commission under oath the sale or other disposition of the securities or obligations authorized, the terms and conditions of them, and the amount realized from them;

  (3) Require the applicant to make a report when funds have been fully expended showing in detail the use and application by it of the money so realized; and

  (4) Contain such other provisions as the Commission may deem necessary or appropriate in each case.

#### Regulation .03 Applications by Corporations for the Exercise of Franchises.

*COMAR 20.07.04.03*

A. Exercise of Railroad Franchises. Applications by corporations subject to the provisions of Public Utilities Article, §5-201, Annotated Code of Maryland, for permission to begin the construction of a railroad, or an extension of it, or to exercise any franchise or right, as provided in §5-201, shall state:

  (1) The route of the proposed railroad or street railroad, or extension of it, giving the names of all cities, villages, or towns in and through which it is to be constructed.

  (2) The name of each corporation with which the proposed construction, right, or franchise may compete.

  (3) The facts showing whether the proposed construction, right, or franchise is required by public convenience or necessity.

  (4) All other facts deemed material by the petitioner.

  (5) If the applicant has not exercised any of the powers or privileges of a corporation, the manner in which it proposes to finance the proposed construction or the proposed exercise of the franchise or right.

  (6) If the applicant has exercised the powers of a corporation, the manner in which it proposes to finance the proposed construction, or the proposed exercise of the franchise or right, and also (unless waived by the Commission) the applicant's financial condition.

  (7) Unless waived by the Commission, the petition shall be accompanied by a certified copy of the articles of incorporation of the applicant, and all amendments to them.

  (8) Maps and profiles, showing the location and route of the proposed construction, shall be filed, and also proof of compliance with all conditions required by law as precedent to the application or the granting of it, including proof of the consent of the municipalities and counties having jurisdiction.

  (9) Unless waived by the Commission, there shall be annexed to the petition an affidavit made by at least three directors of the applicant, that it is the intention of the applicant in good faith to begin the construction or to exercise the right or franchise applied for, within a time to be specified in the affidavit.

B. Exercise of Gas or Electric Franchises. Applications by corporations subject to the provisions of Public Utilities Article, §7-210, Annotated Code of Maryland, for permission to begin construction, or exercise any right or franchise as provided in §7-210, shall state:

  (1) The description of the proposed construction or of the proposed exercise of the right or franchise;

  (2) The location or locations in which the construction is to be had or the right or franchise exercised;

  (3) The requirements set forth in §A(2)—(9) of this regulation, unless waived by the Commission to the extent authorized in §A(2)—(9), except that the Commission may not waive the requirements of filing a certified copy of the applicant's charter, unless it is already on file in the office of the Commission; and

  (4) The verified statement of the president and secretary of the corporation showing that it has received the required consent of the proper municipal authorities.

C. Exercise of Telephone and Telegraph, Water, Heat or Refrigerating, and Power Franchises. Applications by corporations subject to the Public Utilities Article, Annotated Code of Maryland, for permission to begin construction or to exercise any right or franchise, shall state the matters and things set forth in §B of this regulation.

#### Regulation .04 Applications for Approval of Assignment, Transfer, or Lease of Franchises.

*COMAR 20.07.04.04*

In all applications under the Public Utilities Article, Annotated Code of Maryland, for the approval of the assignment, transfer, or lease of a franchise, or of any right to or under a franchise, or of a corporation's works or system, or for the approval of a contract or agreement with reference to or affecting any of the same, the petition shall be made by all the parties to the proposed transaction, and shall show:

A. Unless waived by the Commission, the financial condition of each applicant;

B. In detail, the reasons upon the part of each applicant for making the proposed assignment, transfer, lease, contract, or agreement and all the facts warranting the same, and all facts which should be known to the Commission to enable it to pass upon the application; and

C. The petition shall be accompanied by copies of the articles of incorporation of each applicant, duly certified, of the franchise, of the proposed assignment, transfer, lease, contract, or agreement, and of the laws or a reference to the laws which authorize them. If any of the instruments are already on file in the office of the Commission, they need not be refiled.

#### Regulation .05 Applications for Authority to Acquire Shares of Stock.

*COMAR 20.07.04.05*

In all applications made to the Commission by corporations for authority to purchase or acquire, take or hold, any part of the capital stock of any other corporation or corporations, the petition shall show:

A. In detail, the reasons why the applicant desires to make the proposed acquisition and all the facts warranting it, including the amount of stock in the same corporation or in any allied corporation already held by the applicant.

B. The market value of the stock proposed to be acquired, with:

  (1) The highest and lowest price of the stock during a period of at least 1 year before the making of the petition;

  (2) The dividends, if any, paid for a period of 5 years before making the petition;

  (3) The price proposed to be paid or the loan proposed to be made;

  (4) The name of the present owner;

  (5) The terms of payment, or, in case of loan, of repayment.

C. In case of an application for authorization to purchase stock of a certain description as opportunity may offer, the reasons for the purchase in full detail, with a statement of high and low market values and dividends paid each year for at least 5 years before making the petition, and the maximum price which the petitioner should be allowed to pay.

D. There shall be submitted a certified copy of the articles of incorporation of each corporation, unless one is already on file in the office of the Commission, and a statement showing the amount of stock authorized and issued by each corporation, and also, unless waived by the Commission, the financial condition of each of the corporations.

#### Regulation .06 Applications by Municipalities for Authority to Operate Gas or Electrical Works.

*COMAR 20.07.04.06*

All applications of municipalities, except the Mayor and City Council of Baltimore, under Public Utilities Article, §7-210, Annotated Code of Maryland, for authority to build, maintain, and operate, for other than municipal purposes, any works or systems for the manufacture and supplying of gas or electricity for lighting purposes, shall:

A. Give the name and location of the principal office of all gas and electric corporations doing business within the municipality;

B. Give the names of the executive officers of each gas or electric corporation;

C. Give a general statement of the amount and character of services rendered within the municipality by each gas or electric corporation in the municipality;

D. Give a statement showing by what authority the municipality has the right to build the proposed work or system upon receiving a certificate of authority from the Commission;

E. Give a description of the works or system proposed to be constructed;

F. Give the manner in which the municipality proposes to pay for or finance the construction of the proposed works or system; and

G. Comply with Regulations .02 and .03 of this chapter so far as they may be applicable and appropriate to the purposes of the application.

#### Regulation .07 Applications for Authority to Increase Rates, Fares, and Charges.

*COMAR 20.07.04.07*

A. A public service company earning in excess of $25,000,000 in gross annual intrastate revenue shall file with the Commission the direct testimony and exhibits of its witnesses concurrently with its application for authority to increase its rates and charges.

B. All gas, electric, or telephone public service companies filing an application with the Commission for authority to increase rates and charges under the “make-whole” provisions of Public Utilities Article, §4-207, Annotated Code of Maryland, shall concurrently file the direct testimony and exhibits of its witnesses. Failure by the Company to comply with this section shall be sufficient cause for the Commission to dismiss and reject the application, unless waived by the Commission for good cause shown.

C. Under §§A and B of this regulation, the applicant public service company shall file with the Commission an original and 15 copies of the rate increase application and 15 copies of the direct testimony and exhibits of its witnesses.

D. The applicant public service company, filing under §§A and B of this regulation, shall forward a copy of the application for authority to increase rates and charges, together with the testimony and exhibits of its witnesses, to the Office of People's Counsel at the same time as the filing with the Commission.

#### Regulation .08 Rate Making—Revenues and Expenditures.

*COMAR 20.07.04.08*

A. Revenues and expenditures credited or charged to Accounts 415 through and including 418 of the Uniform System of Accounts, as prescribed by the Federal Energy Regulatory Commission, relating to merchandising, jobbing, and contract work will not be allowed for rate making purposes in rate matters.

B. Charitable contributions, penalties, and lobbying expenses recorded in Account 426.1, 426.3, and 426.4, respectively, of the Uniform System of Accounts as prescribed by the Federal Energy Regulatory Commission will not be allowed for rate making purposes in rate matters.

C. Expenditures for advertising and promotion other than that classified as informational will not be allowed for rate making purposes unless it is demonstrated to the satisfaction of the Commission in a subsequent rate proceeding that the expense is of direct benefit to the rate payer and in the public interest. Informational advertising is presumed to be in the public interest unless otherwise demonstrated in a subsequent rate proceeding.

D. For the purposes of determining whether these expenses shall be borne by the rate payer or stockholders, all advertising and promotion shall be divided into the following classifications:

  (1) Promotional;

  (2) Informational;

  (3) Community affairs;

  (4) Institutional.

E. Definitions. In this regulation, the following terms have the meanings indicated:

  (1) “Promotional” means directed toward selling services or promoting the addition of new customers or seeking additional use of utility service.

  (2) “Informational” means directed toward informing customers of charges and conditions of service, safety precautions, energy conservation, temporary or emergency conditions, employment opportunities, rate cases, annual reports, legal and financial matters.

  (3) “Community affairs” means directed toward influencing public opinion on a controversial issue, or the result of any legislative or administrative matter that would justify the utility civic and community position.

  (4) “Institutional” means directed toward establishing a favorable image of the utility company or its employees and which serves to identify the sponsor.

F. Unless a utility company demonstrates during a rate case proceeding before the Commission that a particular item of advertising or promotional expenditure was directly beneficial to the ratepayer and in the public interest, expenses classified as promotional, community affairs, and institutional shall be excluded as an expense for rate making purposes.

#### Regulation .09 Filing of Proposed Changes in Rates.

*COMAR 20.07.04.09*

A. Every gas, electric, steam heat, telephone, water, or sewage disposal company when filing pursuant to Public Utilities Article, §4-203, Annotated Code of Maryland, any proposed change in rates or regulations to its current tariff (for a typical illustration of a currently effective schedule, see §D of this regulation) shall show by brackets the rates or language proposed to be eliminated and show by underscorings the proposed rates or language (for an illustration of a typical schedule showing proposed changes, see §E of this regulation). The underscored proposed rates shall be placed adjacent to the bracketed current rates.

B. Every gas, electric, steam heat, telephone, water, or sewage disposal company planning to file a proposed change in rates or regulations may make a written request to the Commission, with reasons therefore, for permission to submit as an alternative to the procedure specified in §A of this regulation, statements showing on separate sheets:

  (1) All changes in rates or regulations being proposed;

  (2) The present rates or regulations;

  (3) The proposed rates or regulations;

  (4) The dollar increase or decrease; and

  (5) Any changes in text and such other data that is meaningful with respect to the proposed changes.

C. Every filing by each gas, electric, steam heat, telephone, water, or sewage disposal company shall be accompanied by a letter of transmittal which shall set forth as a minimum, the following data:

  (1) The percentage increase or decrease and dollar amount of increase or decrease in operating revenues resulting therefrom.

  (2) The percentage increase or decrease and dollar amount of increase or decrease for the various classes of service.

  (3) The percentage increase or decrease and dollar amount of increase or decrease in the various rate blocks within the various classes of service (where rate blocking is utilized).

  (4) The purpose and the effect of any proposed change in language or regulations.

D. Currently Effective Tariff.

E. Tariff Showing Proposed Changes.

#### Regulation .10 Notice of Proposed Changes in Rates.

*COMAR 20.07.04.10*

A. A public service company engaged in the transportation of passengers by motor vehicle proposing any tariff revision or change of rate shall notify its customers and patrons of the proposed tariff revision or change of rate by use of a form of notice as follows:

B. The Commission reserves the right to require that the procedure outlined above be applied in any instance of proposed tariff revision or change or any proposed change of rules, regulations, or practices of any public service company.

#### Regulation .11 Application for a Qualified Rate Order and Authority to Issue Rate Stabilization Bonds.

*COMAR 20.07.04.11*

A. Application. An application filed with the Commission by an electric company for a qualified rate order and authority under Public Utilities Article, §§7-526, 7-533, or 7-534, Annotated Code of Maryland, to issue rate stabilization bonds shall include:

  (1) The amount and terms of the proposed qualified rate stabilization bond issue;

  (2) The components of the rate stabilization costs;

  (3) A proposed qualified rate stabilization charge tariff and expiration date;

  (4) A description of any debt or equity securities to be refinanced or retired, including previously issued rate stabilization bonds;

  (5) The financial condition of the applicant;

  (6) If a contract, agreement, or arrangement has been made for the sale of the rate stabilization bonds proposed to be issued, the contract, agreement, or arrangement described in full and attached to the application;

  (7) A calculation showing that the total amount of revenue to be collected under the proposed qualified rate order is less than the rate stabilization costs revenue that would be recovered over the same period using the electric company's weighted cost of capital;

  (8) If the application proposes to refinance existing rate stabilization bonds, a calculation showing that the proposed qualified rate stabilization charge required to service the proposed rate stabilization bonds, including anticipated transaction costs, will be less than the future qualified rate stabilization charges required to service the rate stabilization bonds being refunded;

  (9) Any specific sections, terms, or conditions to be included in the qualified rate order that the electric company believes appropriate and the reason for each; and

  (10) An affidavit made by at least three of the directors of the applicant, showing that it is the intention of the applicant in good faith to use the proceeds of the stabilization bonds for the purposes identified in the application.

B. Notice of Filing of Application.

  (1) Within 2 weeks of the filing of an application, and for the next succeeding week, the electric company shall give notice of the filing of an application under §A of this regulation with the Commission by publishing an advertisement in a newspaper of general circulation in each county in the distribution territory served by the company.

  (2) The notice shall state:

    (a) That the company has filed with the Commission an application for a qualified rate order and authority for a finance subsidiary to issue rate stabilization bonds;

    (b) The total amount of rate stabilization bonds the company requested in the application;

    (c) The proposed rate stabilization charge and the number of years it will be collected;

    (d) That interested persons may send comments to the Commission; and

    (e) The Commission's mailing and website addresses.

C. Review and Adjustment of Qualified Rate Stabilization Charges.

  (1) Each year that a qualified rate stabilization charge is collected, an electric company shall file with the Commission, 60 days prior to the anniversary of the date of the issuance of any rate stabilization bonds and 30 days following the retirement of any refunded rate stabilization bonds:

    (a) A proposed tariff recalculating the qualified rate stabilization charge with supporting data to correct any over-collection or under-collection during the preceding 12 months;

    (b) A description of how the proposed tariff will ensure the recovery of amounts sufficient to timely provide all payments of debt service and other required amounts and charges in connection with the rate stabilization bonds; and

    (c) All calculations and supporting data for the proposed qualified rate stabilization charge.

  (2) An electric company shall perform a true-up of all qualified rate stabilization charges collected to ensure that the authorized amount of qualified rate stabilization costs have been recovered at the end of the period established in the qualified rate order issued by the Commission.

#### Regulation .12 Other Applications.

*COMAR 20.07.04.12*

All applications relating to matters within the jurisdiction of the Commission, and which are not governed by any of the above regulations shall in every case be made by petition, setting forth clearly the matter complained of, and giving the name of the person, firm, or corporation complained of. Thereupon, the procedure shall be such as the Commission may prescribe.

#### Regulation .13 Required Number of Copies.

*COMAR 20.07.04.13*

Unless otherwise specifically required in this chapter, the applicant shall file with the Commission an original and 14 copies of the application and all required documents.

### Chapter 05 — Fees

**Authority:** Public Utilities Article, §§2-113, 2-121, and 5-101 Annotated Code of Maryland

**Administrative History:** Effective date:

**Administrative History:** Regulations .01—.07 adopted as an emergency provision effective July 1, 2002 (29:15 Md. R. 1140); emergency status extended at 30:1 Md. R. 23; emergency status expired February 28, 2003

**Administrative History:** Regulation .01 adopted effective August 2, 2004 (31:15 Md. R. 1186)

**Administrative History:** Regulations .02—.07 adopted effective January 20, 2003 (30:1 Md. R. 28)

**Administrative History:** Regulation .03A amended effective June 23, 2003 (30:12 Md. R. 791)

#### Regulation .01 Scope.

*COMAR 20.07.05.01*

This chapter outlines procedures for the payment of fees for certain Public Service Commission filings.

#### Regulation .02 Definitions.

*COMAR 20.07.05.02*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Commission” means the Public Service Commission of Maryland.

  (2) “Company” means a public service company as defined in Public Utilities Article, §1-101, Annotated Code of Maryland, and any other entity subject to the jurisdiction of the Commission under Public Utilities Article, Annotated Code of Maryland.

  (3) “Custodian” means the Executive Secretary of the Commission.

#### Regulation .03 Schedule of Fees.

*COMAR 20.07.05.03*

A. Filing Fees. The Commission shall assess the following fees:

B. Schedule of Miscellaneous Fees.

  (1) The Commission shall publish and revise, as necessary, a schedule of reasonable fees for:

    (a) Copying and certifying copies of records;

    (b) The issuance of a subpoena;

    (c) A copy of the Commission's statute; and

    (d) A copy of the Commission's annual report.

  (2) The schedule of fees under this section shall be based on the actual cost of:

    (a) Reproduction, including costs for staff time and equipment use; or

    (b) Printing the Commission's statute or annual report.

  (3) A charge under this section may not be assessed if the total amount of the fee is $1 or less.

  (4) If the custodian is unable to copy a record within the Commission, the custodian shall make arrangements for the reproduction of the record at facilities outside the Commission. The custodian shall either collect from the applicant a fee to cover the actual cost of reproduction under this subsection or direct the applicant to pay the cost of reproduction directly to the facility making the copy.

  (5) Fees for Time.

    (a) The official custodian may charge reasonable fees for Commission time in excess of 2 hours expended:

      (i) Searching for requested records; or

      (ii) Preparing records for inspection and copying.

    (b) The official custodian may not charge a search or preparation fee for the first 2 hours of Commission time needed to respond to a request for information.

  (6) If the official custodian determines that a request for waiver or reduction of a fee is in the public interest, the official custodian may waive or reduce any fee under §B of this regulation. In making a decision under this subsection, the official custodian shall consider, among other relevant factors, the ability of the applicant to pay the cost or fee.

  (7) If the applicant requests that copies be mailed or delivered to the applicant, the official custodian may charge the applicant for the cost of postage or delivery to the applicant.

#### Regulation .04 Payment of Filing Fees.

*COMAR 20.07.05.04*

A. Establishment of a Fee Account. Unless waived by the Commission under Regulation .05 of this chapter, a company shall establish a fee account on an annual basis or renew its account annually with the Commission for the purpose of billing and receiving payment of a fee required under Regulation .03 of this chapter.

B. Account Set-Up Fee. On or before November 1 of each year, each company subject to §A of this regulation shall pay an account set-up fee of $250.

C. Method of Payment of Fees. Payment of all filing fees required under Regulation .03 of this chapter and §B of this regulation shall be by:

  (1) Cash;

  (2) Certified check;

  (3) Cashier's check;

  (4) Money order; or

  (5) Personal check.

#### Regulation .05 Assessment of Penalty for Bad Check.

*COMAR 20.07.05.05*

A company paying a fee required under Regulations .03 or .04B of this chapter by personal check, that is returned for insufficient funds, shall pay a $25 returned check fee and may be required to submit the fee, the returned check fee, and subsequent fees by another method under Regulation .04 of this chapter, as specified by the Commission.

#### Regulation .06 Waiver of Fees.

*COMAR 20.07.05.06*

A. Request for Fee Waiver.

  (1) If the Commission finds it is in the public interest, the Commission may waive a filing fee required under Regulation .03 of this chapter.

  (2) A company requesting waiver of a filing fee under this section shall submit the request in writing.

  (3) The Commission shall grant or deny a request for a fee waiver within 5 working days of receipt of the request.

B. Required Waiver. The Commission shall waive a fee charged under this chapter for a filing by a unit of State government or for a service performed by the Commission for a unit of State government.

#### Regulation .07 Penalty for Failure to Pay Fees.

*COMAR 20.07.05.07*

Failure to pay an applicable filing fee or obtain a waiver of an applicable filing fee shall result in a filing not being processed.