Chapter 04. Applications Pursuant to the Public Utilities Article

Amount and classes of stock authorized;

Amount and classes of stock issued;

Terms of preference of all preferred stock;

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;

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;

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

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;

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

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

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:

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.

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

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:

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:

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.

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

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

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.

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.

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

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.

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.

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

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

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

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;

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

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

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

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.

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.

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.

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.

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.

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.

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.

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:

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

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.

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.

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:

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:

Currently Effective Tariff.

Tariff Showing Proposed Changes.

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:

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.

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:

Notice of Filing of Application.

Review and Adjustment of Qualified Rate Stabilization Charges.