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§ 4-208. Independent audit opinion requirements

West's Annotated Code of MarylandPublic Utilities

West's Annotated Code of Maryland
Public Utilities (Refs & Annos)
Division I. Public Services and Utilities [Titles 1-15] (Refs & Annos)
Title 4. Rate Regulation (Refs & Annos)
Subtitle 2. Rate Setting Proceedings (Refs & Annos)
MD Code, Public Utilities, § 4-208
Formerly cited as MD PUBLIC UTIL COMP § 4-208
§ 4-208. Independent audit opinion requirements
Application of section
(a) This section applies to a public service company that:
(1) provides gas or electric services;
(2) is subject to a cost allocation manual approved by the Commission;
(3)(i) engages in an unregulated business activity; or
(ii) has a subsidiary that engages in an unregulated business activity; and
(4) does not meet the standards for rate proceedings provided for under § 4-207 of this subtitle.
Independent audit opinions
(b)(1) A public service company subject to this section shall file an independent audit opinion prepared by an entity approved by the Commission on the earliest of:
(i) once every 2 years; or
(ii) when the public service company:
1. files a request for a change in its base rate under this subtitle; or
2. has a major change in its corporate organization or structure as determined by the Commission.
(2) The independent auditor shall:
(i) examine:
1. compliance by the public service company with policies and procedures of the public service company's cost allocation manual;
2. proper allocation of costs to an affiliate of the public service company in accordance with the manual; and
3. appropriate charging of costs and transactions relative to the manual to the public service company and its affiliates; and
(ii) identify adjustments that should be made:
1. to the manual consistent with prior Commission rulings; and
2. to the public service company or to an affiliate of the public service company relative to the examination of the allocation of costs and charging of costs and transactions.
Cost of independent audit opinions
(c) The cost of the independent audit opinion filed under subsection (b) of this section shall be borne by the stockholders of the public service company.


Added by Acts 1998, c. 8, § 2, eff. Oct. 1, 1998. Amended by Acts 2006, c. 537, § 1, eff. Oct. 1, 2006.
Formerly Art. 78, § 27.
MD Code, Public Utilities, § 4-208, MD PUBLIC UTIL § 4-208
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document