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<chapter num="01" heading="General" title_num="20" subtitle_num="40">
  <regulation prefix="Regulation" num=".01" heading="Scope.">
    <paragraph num="A.">
      <text>Except as provided in §B of this regulation, this subtitle applies to all electric, gas, and combination electric and gas utilities.</text>
    </paragraph>
    <paragraph num="B.">
      <text>This subtitle does not apply:</text>
      <paragraph num="(1)">
        <text>To a municipal electric or gas utility;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>To a combination municipal electric and gas utility;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>To an electric or gas utility that supplies electric or gas service to less than 1,000 meters in the State;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>To a gas utility that distributes only propane gas; or</text>
      </paragraph>
      <paragraph num="(5)">
        <text>During an emergency.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Purpose.">
    <text>The purpose of this subtitle is to establish regulations that promote competitive markets and ensure that an electric or gas utility does not subsidize its affiliates.</text>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Definitions.">
    <paragraph num="A.">
      <text>In this subtitle, the following terms have the meanings indicated.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Terms Defined.</text>
      <paragraph num="(1)">
        <text>“Asset” means property of a type included in the rate base of a utility.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>“Asymmetric pricing” means the transfer of an asset:</text>
        <paragraph num="(a)">
          <text>From a utility to an affiliate recorded at the greater of book cost or market value; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>From an affiliate to a utility recorded at the lesser of book cost or market value.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>“Core service” means a gas or electric supply service that was provided to the public in Maryland by a utility as a monopoly service, within the utility's distribution territory, before the introduction of customer choice programs.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Core Service Affiliate.</text>
        <paragraph num="(a)">
          <text>“Core service affiliate” means a person that is controlled by a utility or an entity that controls the utility, directly or indirectly, and that provides a core service.</text>
        </paragraph>
        <paragraph num="(b)">
          <text>“Core service affiliate” includes a person that provides core and non-core service.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(5)">
        <text>“Cost allocation manual (CAM)” means a compilation of policies and procedures for the allocation and assignment of costs, which are shared between a utility and its affiliate.</text>
      </paragraph>
      <paragraph num="(6)">
        <text>“Emergency” means:</text>
        <paragraph num="(a)">
          <text>A natural disaster, including a hurricane, tornado, or snow storm, that impacts utility service;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Any national or State-declared state of emergency or condition resulting in federal, State, or local government closing its respective offices;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>An abnormal utility system condition requiring manual or automatic action to:</text>
          <paragraph num="(i)">
            <text>Maintain system frequency; or</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>Prevent loss of firm load, equipment damage, disconnection of system elements that could adversely affect utility service, the reliability of a utility electric system or natural gas system, or the safety of persons or property; or</text>
          </paragraph>
        </paragraph>
        <paragraph num="(d)">
          <text>Acts of others including riots, sabotage, acts of terrorism, insurrections, nationalization, or wars, which adversely affect utility service or the reliability of a utility electric system or natural gas system.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(7)">
        <text>“Image advertisement” means a corporate public announcement that does not include core or non-core service affiliate contact information.</text>
      </paragraph>
      <paragraph num="(8)">
        <text>“Non-core service” means any service offered or provided to the public in Maryland that is not a core service.</text>
      </paragraph>
      <paragraph num="(9)">
        <text>“Non-core service affiliate” means a person that is controlled by either a utility or a person that controls the utility, directly or indirectly, and that provides only non-core services to the public in Maryland.</text>
      </paragraph>
      <paragraph num="(10)">
        <text>Operational Personnel.</text>
        <paragraph num="(a)">
          <text>“Operational personnel” means an employee, contractor, consultant, or agent of an electric or gas utility who conducts distribution system operations or reliability functions, including those who are engaged in day-to-day duties and responsibilities for planning, directing, organizing, or carrying out distribution-related operations.</text>
        </paragraph>
        <paragraph num="(b)">
          <text>“Operational personnel” does not include support personnel or field and maintenance employees of a utility.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(11)">
        <text>“Standard offer service (SOS)” has the meaning stated in COMAR 20.52.01.02B(8).</text>
      </paragraph>
      <paragraph num="(12)">
        <text>“Utility” means an electric or gas company as defined in Public Utilities Article, §1-101, Annotated Code of Maryland.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Waiver of Regulations.">
    <paragraph num="A.">
      <text>Except as provided §B of this regulation, a regulation in this subtitle may be waived by the Commission for good cause shown.</text>
    </paragraph>
    <paragraph num="B.">
      <text>COMAR 20.40.02.07 may not be waived.</text>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">Public Utilities Article, §§2-113, 2-121, 7-505, 7-604, and 7-606, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: January 1, 1971 (Order No. 59158)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .01 amended effective September 4, 1989 (16:17 Md. R. 1887)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .01C amended effective March 15, 1971 (Order No. 59258)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .01G amended effective March 15, 1971 (Order No. 59248)and July 1, 1971 (Order No. 59375); May 6, 1985 (12:9 Md. R. 814)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .01H adopted effective May 6, 1985 (12:9 Md. R. 814)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .02H amended effective May 6, 1985 (12:9 Md. R. 814)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .05A amended effective May 6, 1985 (12:9 Md. R. 814)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .05D, E, and F adopted effective May 6, 1985 (12:19 Md. R. 814)</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.08, Electric and Gas Public Service Companies, repealed and new Regulations .01—.04, General, adopted effective March 13, 2006 (33:5 Md. R. 522)</annotation>
  </annotations>
</chapter>