Public Service Commission Laws

§ 7-101.  Scope

Note: The following is based on a statute obtained from
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On April 17, 2007

§ 7-101. Scope

Except as otherwise provided by law, the provisions of this subtitle are not subject to the jurisdiction of the Commission.(1998,ch. 8, § 2.)

§ 7-102.  Gas companies -- Powers

Note: The following is based on a statute obtained from
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On April 17, 2007

§ 7-102. Gas companies

(a) Manufacture, sale, and distribution of gas -- A gas company incorporated in Maryland may:

(1) manufacture artificial gas;

(2) sell or furnish any quantity of natural gas or artificial gas that may be required in any municipal corporation or county of the State;

(3) lay pipe under the roadways or other public ways of any county or municipal corporation of the State to transmit natural gas or artificial gas; and

(4) connect the pipe from the place of supply to any structure or object.

(b) Laying of gas pipes -- Consent of local government required

(1) A gas company must have the consent of the governing body of the municipal corporation or county before laying any gas pipe in accordance with subsection (a) of this section.

(2) The governing body of the municipal corporation or county may adopt reasonable regulations and conditions for the laying of a gas pipe, including regulations requiring the gas company to refill and repave any roadway or other public way under which the pipe is laid

(c) Gas transmissions -- A gas company, whether incorporated in Maryland or another state, that is authorized by a governing body of a municipal corporation or county to lay or maintain pipe or other structures in a roadway or other public way or place shall obtain consent from the Commission before using the pipe or other structure to transmit and supply natural gas, artificial gas, or a mixture of natural gas and artificial gas.

(d) Effect on franchise -- This section does not:

(1) extend the duration of a franchise granted by the governing body of a municipal corporation or county; or

(2) except as provided in this section, change the terms or conditions of the franchise.

§ 7-103.  Electric companies -- Powers

Note: The following is based on a statute obtained from
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April 17, 2007

§ 7-103.  Electric companies - Powers

(a) Manufacture, sell, and furnish light and power -- An electric company incorporated in Maryland may:

(1) manufacture, sell, and furnish electric power in any municipal corporation or county of the State;

(2) construct a power line to transmit power under, along, on, or over the roadways or public ways of any municipal corporation or county of the State; and

(3) connect the power line from the place of supply to any other structure or object.

(b) Laying of power lines--Consent of local government required

(1) An electric company must have the consent of the governing body of the municipal corporation or county before laying or constructing any power line in accordance with subsection (a) of this section.

(2) The governing body of the municipal corporation or county may adopt reasonable regulations and conditions for the laying of a power line, including regulations requiring the electric company to refill and repave any roadway or public way under which the power line is laid.

§ 7-104.  Electric cooperatives

Note: The following is based on a statute obtained from
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April 17, 2007

§ 7-104.  Electric cooperatives

The formation, organization, and governance of electric cooperatives incorporated in Maryland are governed by Title 5, Subtitle 6 of the Corporations and Associations Article.

§ 7-105.  Water companies - Powers

Note: The following is based on a statute obtained from
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April 17, 2007

§ 7-105.  Water companies - Powers

(a) A water company incorporated in the State has the powers necessary for the purposes for which it is incorporated and may:

(1) acquire, possess, and use land, water rights, and other property for those purposes; and

(2) lay pipes and construct works necessary or suitable to carry out its purposes.

(b)

(1) A water company shall obtain the consent of the governing body of the municipal corporation or county before laying pipes or constructing waterworks in that jurisdiction under subsection (a) of this section.

(2) The governing body of the municipal corporation or county may adopt reasonable regulations for the laying of pipes, construction of works, and operations of a water company.

(c) This section does not authorize the incorporation of a water company to operate in Baltimore City.

§ 7-201.  Electric companies -- Long-range plans

Note: The following is based on a statute obtained from
http://mlis.state.md.us/cgi-win/web_statutes.exe
On April 17, 2007

(a)

(1) Annually, the Chairman of the Commission shall forward to the Secretary of Natural Resources a 10-year plan listing possible and proposed sites, including the associated transmission routes, for the construction of electric plants within the State.

(2)

(i) The Chairman shall delete from the 10-year plan any site that the Secretary of Natural Resources identifies as unsuitable in accordance with the requirements of § 3-304 of the Natural Resources Article.

(ii) The Chairman may include a site deleted from a 10-year plan under subparagraph (i) of this paragraph in a subsequent 10-year plan.

(3) The Chairman shall include information in the annual 10-year plan on current and projected efforts by electric companies and the Commission to moderate overall electrical generation demand and peak demand through the electric companies' promotion of energy conservation by customers and through the electric companies' use of alternative energy sources, including cogeneration.

(4) To the extent that the Commission requires an electric company to report the information described in paragraph (3) of this subsection, a small rural electric cooperative described in § 7-502(a) of this title may satisfy the requirement by submitting to the Commission a copy of the power requirement study that the small rural electric cooperative submits to the rural utilities service.

(b)

(1) The Commission shall evaluate the cost-effectiveness of the investments by electric companies in energy conservation to reduce electrical demand and in renewable energy sources to help meet electrical demand.

(2) The evaluation of investments shall include:

(i) the electric companies' promotion and conduct of a building audit and weatherization program, including low-interest or no-interest electric company financing for the installation of energy conservation materials and renewable energy devices;

(ii) utilization of renewable energy sources;

(iii) promotion and utilization of electricity from cogeneration and wastes; and

(iv) widespread public promotion of energy conservation programs.

§ 7-202.  Electric Companies -- Power plant sites

Note: The following is based on a statute obtained from
http://mlis.state.md.us/cgi-win/web_statutes.exe
On April 17, 2007

(a) Request to purchase site -- If the Commission determines that a site is needed, the Commission, on its own motion, may request the Secretary of Natural Resources to purchase a power plant site as provided in Title 3, Subtitle 3 of the Natural Resources Article.

(b) Determination of need -- In determining whether a need exists for the State to purchase a power plant site, the Commission shall consider:

(1) the suitability of sites owned by an electric company, both within and outside the State;

(2) anticipated growth of electric power demand and the alternative means and locations for meeting that demand, both within and outside the State; and

(3) any other factors required by law.

(c) Notice and hearing required

(1) The Commission may determine that a power plant site is needed only after the Commission gives public notice and holds a public hearing.

(2) The hearing shall be held in the legislative district in which the site under consideration is located.

§ 7-203.  Electric Companies -- Environmental surcharge

Note: The following is based on a statute obtained from
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On April 17, 2007

§ 7-203.  Electric Companies -- Environmental surcharge

(a) Imposition by Commission

(1) The Commission shall:

(i) impose an environmental surcharge per kilowatt hour of electricity distributed to retail electric customers within the State; and

(ii) authorize each electric company to add the full amount of the surcharge to its customers' bills.

(2) To the extent that an electric company fails to collect the surcharge from its customers, the amount uncollected shall be deemed a cost of power distribution and allowed and computed as such together with other allowable expenses for purposes of rate-making.

(b) Collection by Comptroller

(1) The Comptroller shall collect the revenue from the surcharge imposed under subsection (a) of this section and place the revenue into a special fund, the Environmental Trust Fund.

(2) The Comptroller shall maintain the method of collection of the surcharge from each electric company, and the money collected shall accrue to the Fund.

(c) Budget proposal and approval

(1) Each fiscal year, the Secretary of Natural Resources shall coordinate the preparation of the annual budget required to carry out the provisions of the Power Plant Research Program under Title 3, Subtitle 3 of the Natural Resources Article.

(2) Each fiscal year, on approval of the annual budget by the General Assembly for the Power Plant Research Program, the Commission shall establish the amount of the environmental surcharge per kilowatt hour of electric energy distributed in the State that is to be imposed on each electric company in accordance with subsection (a) of this section.

(d) Amount

(1) Notwithstanding any other provision of this subtitle, the amount of the surcharge for each account of each retail electric customer may not exceed the lesser of 0.15 mill per kilowatt hour or $1,000 per month.

(2) The Department of Natural Resources shall credit against the amount the Commission requires each electric company to pay into the Environmental Trust Fund 0.75% of the total surcharge amount attributed to the electric company on the basis of the amount of the electricity distributed in the State.

(e) To the extent that the Commission requires an electric company to report the total estimated kilowatt hours of electricity distributed in the State in order to calculate the surcharge under subsection (a)(1) of this section, a small rural electric cooperative described in § 7-502(a) of this title may satisfy the requirement by submitting to the Commission an estimate made in accordance with a formula approved by the Commission from information that the small rural electric cooperative submits to the rural utilities service that includes the required information.

(f) The surcharge imposed under this subtitle shall terminate on June 30, 2010.

§ 7-204.  Electric Companies -- Transmission Lines and Devices

Note: The following is based on a statute obtained from
http://mlis.state.md.us/cgi-win/web_statutes.exe
On April 17, 2007

§ 7-204.  Electric Companies -- Transmission Lines and Devices

(a) Required notice to property owners

(1) Notwithstanding any other provision of this article, at least 30 days before a hearing, a public service company shall provide to each owner of land, by certified mail, written notice of intent to run a line or similar transmission device over, on, or under the land.

(2) The public service company shall determine the property owners from the current tax assessment records of the political subdivision in which the property is located.

(b) Unless the failure is willful or deliberate, the failure of a public service company to provide notice does not invalidate a public hearing or require that another hearing take place.

§ 7-205.  Electric Companies -- Modification of Power Plant

Note: The following is based on a statute obtained from
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On April 17, 2007

§ 7-205.  Electric Companies -- Modification of Power Plant

(a) "Modification" defined

(1) In this section, "modification" means a physical alteration of, replacement of, or other change to the facilities at a power plant, or a change in the fuel used by the plant, that could result in a change of the air emissions from the plant or from a generating unit of the plant.

(2) "Modification" does not include:

(i) routine maintenance or repairs of the facilities of a power plant; or

(ii) a change that would result in ambient air quality levels less than or equal to the levels that were a basis for the issuance of a prior certificate of public convenience and necessity under § 7-207 of this subtitle.

(b) Prior approval of Commission required -- Subject to subsections (c) through (e) of this section, a person may not commence a modification without the prior approval of the Commission under this title.

(c) Filing of application

(1) Unless the Commission orders otherwise, an application for a modification to a power plant shall be filed with the Commission at least 180 days before the date on which the modification is to commence.

(2) The applicant for the modification shall submit to the Commission and to the Department of the Environment all information relating to the modification, including:

(i) detailed plans and specifications; and

(ii) the impact of the modification on air quality.

(d) Decision The Commission shall render its decision within 150 days after the day the application is filed.

(e) Applicability of temporary fuel variances Notwithstanding the provisions of this section, a modification to a power plant that involves the short-term inability to obtain the type of fuel normally used by the plant is subject to Title 2, Subtitle 5 of the Environment Article.

§ 7-206.  Electric Companies -- Clean Air Act Modifications

Note: The following is based on a statute obtained from
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On April 17, 2007

§ 7-206.  Electric Companies -- Clean Air Act Modifications

(a) This section applies to the installation of pollution control equipment or a change in the method of operation at a generating station that a person performs in order to comply with Phase II pollution control requirements of the federal Clean Air Act.

(b) Any person that performs an installation or change in operation under subsection (a) of this section shall obtain prior review and approval of the Commission in accordance with:

(1) §§ 7-203, 7-207, and 7-208 of this subtitle; and

(2) the procedures set forth in § 7-205 of this subtitle and § 2-405 of the Environment Article.

§ 7-207.  Generating stations or transmission lines -- 
General certification procedure

Note: The following is based on a statute obtained from
http://mlis.state.md.us/cgi-win/web_statutes.exe
On April 17, 2007

§ 7-207. Generating stations or transmission lines-- General certification procedure

(a)

(1) In this section and § 7-208 of this subtitle, "construction" means

(i) any physical change at a site, including fabrication, erection, installation, or demolition; or

(ii) the entry into a binding agreement or contractual obligation to purchase equipment exclusively for use in construction in the State or to undertake a program of actual construction in the State which cannot be canceled or modified without substantial loss to the owner or operator of the proposed generating station.

(2) "Construction" does not include a change that is needed for the temporary use of a site or route for nonutility purposes or for use in securing geological data, including any boring that is necessary to ascertain foundation conditions.

(b)

(1)

(i) Unless a certificate of public convenience and necessity for the construction is first obtained from the Commission, a person may not begin construction in the State of a generating station.

(ii) If a person obtains Commission approval for construction under § 7-207.1 of this subtitle, the Commission shall exempt a person from the requirement to obtain a certificate of public convenience and necessity under this section.

(2) Unless a certificate of public convenience and necessity for the construction is first obtained from the Commission, and the Commission has found that the capacity is necessary to ensure a sufficient supply of electricity to customers in the State, a person may not exercise a right of condemnation in connection with the construction of a generating station.

(3) Unless a certificate of public convenience and necessity for the construction is first obtained from the Commission, an electric company may not begin construction of an overhead transmission line that is designed to carry a voltage in excess of 69,000 volts or exercise a right of condemnation with the construction.

(c)

(1) On receipt of an application for a certificate of public convenience and necessity under this section, the Commission shall provide notice to the Department of Planning and to all other interested persons.

(2) The Department of Planning shall forward the application to each appropriate State unit and unit of local government for review, evaluation, and comment regarding the significance of the proposal to State, area-wide, and local plans or programs.

(d)

(1) The Commission shall provide an opportunity for public comment and hold a public hearing on the application for a certificate of public convenience and necessity in each county and municipal corporation in which any portion of the construction of a generating station or of an overhead transmission line designed to carry a voltage in excess of 69,000 volts is proposed to be located.

(2) The Commission shall hold the public hearing jointly with the governing body of the county or municipal corporation in which any portion of the construction of the generating station or overhead transmission line is proposed to be located, unless the governing body declines to participate in the hearing.

(3) Once in each of the 4 successive weeks immediately before the hearing date, the Commission shall provide weekly notice of the public hearing and an opportunity for public comment by advertisement in a newspaper of general circulation in the county or municipal corporation affected by the application.

(4)

(i) The Commission shall ensure presentation and recommendations from each interested State unit, and shall allow representatives of each State unit to sit during hearing of all parties.

(ii) The Commission shall allow each State unit 15 days after the conclusion of the hearing to modify the State unit's initial recommendations.

(e) The Commission shall take final action on an application for a certificate of public convenience and necessity only after due consideration of:

(1) the recommendation of the governing body of each county or municipal corporation in which any portion of the construction of the generating station or overhead transmission line is proposed to be located; and

(2) the effect of the generating station or overhead transmission line on:

(i) the stability and reliability of the electric system;

(ii) economics;

(iii) esthetics;

(iv) historic sites;

(v) aviation safety as determined by the Maryland Aviation Administration and the administrator of the Federal Aviation Administration;

(vi) when applicable, air and water pollution; and

(vii) the availability of means for the required timely disposal of wastes produced by any generating station.

(f) For the construction of an overhead transmission line, in addition to the considerations listed in subsection (e) of this section, the Commission shall take final action on an application for a certificate of public convenience and necessity only after due consideration of the need to meet existing and future demand for electric service.

(g)

(1) The Commission may not authorize, and an electric company may not undertake, the construction of an overhead transmission line that is aligned with and within 1 mile of either end of a public airport runway, unless:

(i) the Federal Aviation Administration determines that the construction of an overhead transmission line will not constitute a hazard to air navigation; and

(ii) the Maryland Aviation Administration concurs in that determination.

(2) A privately owned airport runway shall qualify as a public airport runway under this subsection only if the runway has been on file with the Federal Aviation Administration for at least 2 years as being open to the public without restriction.

§ 7-208.  Generating station or transmission lines --
Joint construction of station and associated lines

Note: The following is based on a statute obtained from
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On April 17, 2007

(a) This section applies to any person:

(1) constructing a generating station and its associated overhead transmission lines designed to carry a voltage in excess of 69,000 volts; or

(2) exercising the right of condemnation in connection with the construction.

(b)

(1) To obtain the certificate of public convenience and necessity required under § 7-207 of this subtitle for construction under this section, a person shall file an application with the Commission at least 2 years before construction of the facility will commence.

(2) The Commission may waive the 2-year requirement on a showing of good cause.

(c) The applicant shall:

(1) include in an application under this section the information that the Commission requests initially; and

(2) furnish any additional information that the Commission requests subsequently.

(d)

(1) On the receipt of an application under this section, together with any additional information requested under subsection (c)(2) of this section, the Commission shall provide notice to:

(i) all interested persons;

(ii) the Department of Agriculture;

(iii) the Department of Business and Economic Development;

(iv) the Department of the Environment;

(v) the Department of Natural Resources;

(vi) the Department of Transportation; and

(vii) the Department of Planning.

(2) The Commission shall hold a public hearing on the application as required by § 7-207 of this subtitle, after:

(i) the receipt of any additional information requested under subsection (c)(2) of this section that the Commission considers necessary; and

(ii) any publication of notice the Commission considers to be proper.

(3)

(i) At the public hearing, the Commission shall ensure presentation of the information and recommendations of the State units specified in paragraph (1) of this subsection and shall allow the official representative of each unit to sit during hearing of all parties.

(ii) Based on the evidence relating to the unit's areas of concern, the Commission shall allow each unit 15 days after the conclusion of the hearing to modify or affirm the unit's initial recommendations.

(e) Within 90 days after the conclusion of the hearing on an application under this section, the Commission shall:

(1)

(i) grant a certificate of public convenience and necessity unconditionally;

(ii) grant the certificate, subject to conditions the Commission determines to be appropriate; or

(iii) deny the certificate; and

(2) notify all interested parties of its decision.

(f)

(1) The Commission shall include in each certificate it issues under subsection (e) of this section:

(i) the requirements of the federal and State environmental laws and standards that are identified by the Department of the Environment; and

(ii) the methods and conditions that the Commission determines are appropriate to comply with those environmental laws and standards.

(2) The Commission may not adopt any method or condition under paragraph (1)(ii) of this subsection that the Department of the Environment determines is inconsistent with federal and State environmental laws and standards.

(g)

(1) A decision of the Commission regarding the issuance of a certificate requires the vote of a majority of the members of the Commission.

(2) If a majority of the members of the Commission fails to reach agreement on the conditions to be attached to a conditional certificate, the certificate shall be denied.

(h) The grant of a certificate by the Commission to any person under subsection (e) of this section constitutes:

(1) authority for the person to dredge and construct bulkheads in the waters or private wetlands of the State and to appropriate or use the waters; and

(2) registration and a permit to construct, as required under Title 2, Subtitle 4 of the Environment Article.

§ 7-209.  Alternatives to construction of transmission lines

Note: The following is based on a statute obtained from
http://mlis.state.md.us/cgi-win/web_statutes.exe
On April 17, 2007

§ 7-209.  Alternatives to construction of transmission lines

(a) The Commission shall examine alternatives to the construction of a new transmission line in a service area, including the use of an existing transmission line of another company, if:

(1) the existing transmission line is convenient to the service area; or

(2) the use of the transmission line will best promote economic and efficient service to the public.

(b) In considering the use of an existing transmission line under subsection (a) of this section, the Commission need not consider whether the company that owns the line has a franchise in a service area.

§ 7-210.  Municipal electric plants

Note: The following is based on a statute obtained from
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On April 17, 2007

§ 7-210.  Municipal electric plants

(a) This section does not apply to Baltimore City.

(b)

(1) A municipal corporation may not build, maintain, or operate a plant for supplying gas or electricity for other than municipal purposes unless the municipal corporation has a certificate of authority from the Commission.

(2) If the Commission denies the certificate of authority, the municipal corporation may not reapply for a certificate until at least 6 months have elapsed from the date that the Commission denied the previous application.

(c) Subject to subsection (b) of this section, a municipal corporation in the business of supplying electricity for other than municipal purposes may own or finance an interest in an electric plant to secure an entitlement of electricity for its customers.

(d) If the boundaries of a municipal corporation are enlarged by annexation, the municipal corporation may acquire the exclusive right to supply electricity within the annexed area if:

(1) the municipal corporation:

(i) files a petition with the Commission seeking approval to acquire the exclusive right to supply electricity within the annexed area;

(ii) provides a copy of the petition to each electric company whose service territory or electric plant will be affected by the annexation; and

(iii) attaches to the petition a copy of the amendment to the municipal corporation charter that describes the area annexed and a description of the service territory, plant, equipment, and customers of each electric company that is likely to be affected by the annexation; and

(2) the Commission determines that modification of the service territory of an electric company and the transfer of a franchise or right under the franchise is in the public interest.

(e)

(1) A municipal corporation that acquires the exclusive right under subsection (d) of this section to supply electricity within an area annexed by the municipal corporation may exercise the right of eminent domain to acquire the existing installed facilities of each electric company within the annexed area that are used solely to supply electricity to the annexed area.

(2) The value of any property taken under paragraph (1) of this subsection shall be determined as of the date of the taking.

§ 7-211.  Energy efficiency programs

Note: The following is based on a statute obtained from
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On April 17, 2007

§ 7-211.  Energy efficiency programs

(a) Subject to review and approval by the Commission, each gas company and electric company shall develop and implement programs and services to encourage and promote the efficient use and conservation of energy by consumers, gas companies, and electric companies.

(b) The Commission shall:

(1) require each gas company and electric company to establish any program or service that the Commission deems appropriate and cost effective to encourage and promote the efficient use and conservation of energy;

(2) adopt rate-making policies that provide cost recovery and, in appropriate circumstances, reasonable financial incentives for gas companies and electric companies to establish programs and services that encourage and promote the efficient use and conservation of energy; and

(3) ensure that adoption of electric customer choice under Subtitle 5 of this title does not adversely impact the continuation of cost effective energy conservation and efficiency programs.

(c)

(1) On or before February 1, 2001, the Commission, in consultation with the Maryland Energy Administration, shall report, subject to § 2-1246 of the State Government Article, to the General Assembly on:

(i) the status of programs and services to encourage and promote the efficient use and conservation of energy; and

(ii) a recommendation for the appropriate funding level to adequately fund these programs and services.

(2) In determining whether a program or service encourages and promotes the efficient use and conservation of energy, the Commission shall consider, among other factors:

(i) the impact on jobs;

(ii) the impact on the environment;

(iii) the impact on rates; and

(iv) the cost-effectiveness.

§ 7-301.  Meters

Note: The following is based on a statute obtained from
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On April 17, 2007

§ 7-301.  Meters

(a) A person may not furnish or put in use for revenue billing purposes a gas meter or electric meter unless the Commission has authorized the meter's use.

(b)

(1) Each gas company and electric company shall maintain suitable equipment, approved by the Commission, for testing the accuracy of a gas meter or electric meter furnished by the company for use by its customers.

(2) The gas company or electric company shall test a customer's meter with the equipment in accordance with § 7-302 of this subtitle.

(3) A small rural electric cooperative described in § 7-502(a) of this title may satisfy this section by demonstrating that the electric meters which it furnishes to customers comply with the standards of the utility regulatory body of the state in which the cooperative has its principal place of business.

(c)

(1) This subsection applies to:

(i) a new residential multiple occupancy building;

(ii) a new shopping center; or

(iii) a new housing unit that is constructed, managed, operated, developed, or subsidized by a local housing authority established under Article 44A of the Code.

(2) The service restrictions imposed under this subsection do not apply to central hot water.

(3) The Commission may not authorize a gas company or electric company to service an occupancy unit or shopping center unit subject to this subsection unless the building or shopping center has individual metered service or submetering as provided under § 7-303 or § 7-304 of this subtitle for each individually leased or owned occupancy unit or shopping center unit.

(4) In accordance with its regulations, the Commission may authorize a gas company or electric company to provide service for central heating or cooling systems, or a combination of those systems, to an occupancy unit or shopping center unit subject to this subsection if the Commission is satisfied that the service will result in a substantial net saving of energy over the energy saving that would result from individual metering or submetering as provided under § 7-303 or § 7-304 of this subtitle.

(d) The owner, operator, or manager of a residential multiple occupancy building or shopping center subject to this section may not impose a utility cost on an occupancy unit or shopping center unit, except for charges that:

(1) the Commission authorizes the gas company or electric company to impose; and

(2) the gas company or electric company actually imposes on the owner, operator, or manager.