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<chapter num="02" heading="Standard Offer Service" title_num="20" subtitle_num="52">
  <regulation prefix="Regulation" num=".01" heading="Provision of Residential Standard Offer Service Required.">
    <paragraph num="A.">
      <text>This regulation does not apply to residential SOS before the service periods specified in §C of this regulation.</text>
    </paragraph>
    <paragraph num="B.">
      <text>A utility may deny residential SOS under COMAR 20.50.04.01-2 or the utility's tariffs.</text>
    </paragraph>
    <paragraph num="C.">
      <text>A utility shall provide residential SOS for the following specified time periods:</text>
      <paragraph num="(1)">
        <text>Baltimore Gas and Electric Company from July 1, 2006 through May 31, 2010;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Delmarva Power &amp; Light Company from July 1, 2004 through May 31, 2008;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Potomac Electric Power Company from July 1, 2004 through May 31, 2008;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The Potomac Edison Company doing business as (d/b/a) Allegheny Power from January 1, 2009 through December 31, 2012.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Extension of SOS. The Commission may extend a utility obligation to provide SOS under Public Utilities Article, §7-510(c)(3), Annotated Code of Maryland.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Standard Offer Service — Small Commercial Customers.">
    <paragraph num="A.">
      <text>This regulation does not apply to electric supply service provided by a utility prior to the service periods specified in §§B and C of this regulation.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Type I—Small Commercial Customer.</text>
      <paragraph num="(1)">
        <text>A utility shall provide Type I SOS to a customer for the following specified time periods:</text>
        <paragraph num="(a)">
          <text>Baltimore Gas and Electric Company from July 1, 2004 through May 31, 2008;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Delmarva Power &amp; Light Company from June 1, 2004 through May 31, 2008;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Potomac Electric Power Company from July 1, 2004 through May 31, 2008; and</text>
        </paragraph>
        <paragraph num="(d)">
          <text>The Potomac Edison Company doing business as (d/b/a) Allegheny Power from January 1, 2005 through December 31, 2008.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>A utility shall offer Type I SOS as ordered by the Commission to all small commercial customer classes.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Type II—Commercial Customer.</text>
      <paragraph num="(1)">
        <text>A utility shall offer Type II SOS to a commercial customer as defined under COMAR 20.52.01.02B(11).</text>
      </paragraph>
      <paragraph num="(2)">
        <text>A utility shall provide Type II SOS to customers for the following specified time periods:</text>
        <paragraph num="(a)">
          <text>Baltimore Gas and Electric Company from July 1, 2004 through May 31, 2006;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Delmarva Power &amp; Light Company from June 1, 2004 through May 31, 2006;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Potomac Electric Power Company from July 1, 2004 through May 31, 2006; and</text>
        </paragraph>
        <paragraph num="(d)">
          <text>The Potomac Edison Company doing business as (d/b/a) Allegheny Power from January 1, 2005 through December 31, 2006.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Extension of SOS. The Commission may extend a utility obligation to provide SOS under Public Utilities Article, §7-510(c)(3), Annotated Code of Maryland.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Large Customer — Electric Supply Service.">
    <paragraph num="A.">
      <text>This regulation does not apply to electric supply service provided by a utility before the service periods stated in §B of this regulation.</text>
    </paragraph>
    <paragraph num="B.">
      <text>A utility shall provide Type III large customer service to customers for the following specified time periods:</text>
      <paragraph num="(1)">
        <text>Baltimore Gas and Electric Company from July 1, 2004 through May 31, 2005;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Delmarva Power &amp; Light Company from June 1, 2004 through May 31, 2005;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Potomac Electric Power Company from July 1, 2004 through May 31, 2005; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The Potomac Edison Company doing business as (d/b/a) Allegheny Power from January 1, 2005 through December 31, 2005.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Hourly Priced Electric Supply Service.">
    <paragraph num="A.">
      <text>A utility shall offer hourly priced nonresidential electric supply service to all nonresidential customers ineligible for Type I or Type II SOS, excluding special generation contract customers.</text>
    </paragraph>
    <paragraph num="B.">
      <text>A utility shall provide hourly priced service beginning with the time periods provided for Type III service in Regulation .03 of this chapter.</text>
    </paragraph>
    <paragraph num="C.">
      <text>A utility may not change or alter tariff rules, terms, and conditions for HPS under §B of this regulation for a period of at least 2 years.</text>
    </paragraph>
    <paragraph num="D.">
      <text>The rate for HPS shall include:</text>
      <paragraph num="(1)">
        <text>One of the following:</text>
        <paragraph num="(a)">
          <text>The PJM hourly LMP for energy; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>If PJM alters its pricing methods, the nearest equivalent to LMP;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>Charges associated with PJM capacity obligation;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>FERC-approved:</text>
        <paragraph num="(a)">
          <text>Transmission rates;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Ancillary services;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Energy losses;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Administrative costs;</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Any other FERC approved or PJM charges and costs directly related to the utilities' hourly priced service;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>Costs required to meet statutory renewable requirements;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Any other price elements directly related to the service as approved by the Commission;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Taxes;</text>
      </paragraph>
      <paragraph num="(7)">
        <text>An applicable administrative charge intended to recover the utility's verifiable and prudently incurred costs; and</text>
      </paragraph>
      <paragraph num="(8)">
        <text>A Commission-approved reasonable return.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Other Periods of Electric Service.">
    <text>For periods other than those identified in Regulations .01—.03 of this chapter, the Commission may authorize the provision of SOS, default service, Type II service, Type III service, or electric supply provider of last resort service to the customer classes described in this chapter.</text>
  </regulation>
  <annotations>
    <annotation type="Authority">Public Utilities Article, §§2-113, 2-121, 5-101, and 7-510, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: June 7, 2004 (31:11 Md. R. 857)</annotation>
  </annotations>
</chapter>