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§ 4-402. Gas and electric company fuel rates

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 4. Fuel Rate Adjustments (Refs & Annos)
MD Code, Public Utilities, § 4-402
Formerly cited as MD PUBLIC UTIL COMP § 4-402
§ 4-402. Gas and electric company fuel rates
Application of section
(a)(1) This section applies to:
(i) electric fuel rate adjustment clauses;
(ii) purchased power adjustment clauses; and
(iii) purchased gas adjustment clauses.
(2) This section does not apply to a small rural electric cooperative.
Justification of costs to Commission
(b) A gas company or electric company that directly passes on to its customers changes in fuel costs, costs of purchased power, or costs of purchased gas shall verify and justify the adjusted costs to the Commission each month.
Unjustified charges
(c) The Commission shall order a company to charge off and amortize, by means of a temporary decrease of rates, any charge the Commission finds is unjustified because:
(1) the company failed to show that the charges were based solely on increased costs of fuel, purchased power, or purchased gas;
(2) the company failed to follow competitive practices in procuring and purchasing fuel, power, or gas; or
(3) the company failed to show that its practices in procuring and purchasing fuel were reasonable.
Evidentiary hearing by Commission required
(d) At least once every 12 months, the Commission shall conduct a public evidentiary hearing on any changes in costs that a company directly passes on to its customers under this section.


Added by Acts 1998, c. 8, § 2, eff. Oct. 1, 1998. Amended by Acts 1999, c. 605, § 1, eff. Oct. 1, 1999; Acts 2002, c. 19, § 1, eff. April 9, 2002.
Formerly Art. 78, § 54D.
MD Code, Public Utilities, § 4-402, MD PUBLIC UTIL § 4-402
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document