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§ 4-204. Suspension of new rates or change in rates

West's Annotated Code of MarylandPublic UtilitiesEffective: October 1, 2022

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)
Effective: October 1, 2022
MD Code, Public Utilities, § 4-204
Formerly cited as MD PUBLIC UTIL COMP § 4-204
§ 4-204. Suspension of new rates or change in rates
In general
(a)(1) The Commission may suspend, effective immediately and without formal proceedings, any new rate or change in rate proposed by a public service company.
(2) Unless suspended by the Commission, and subject to § 4-203 of this subtitle, a new rate or change in rate proposed by a public service company takes effect on the date specified in the rate application.
(3) The Commission shall furnish to the public service company proposing a rate a written statement of the reasons for the suspension.
Proceedings to determine if rate is just and reasonable
(b)(1) The Commission promptly shall institute proceedings to consider whether the suspended rate is a just and reasonable rate.
(2) The Commission may:
(i) suspend the rate initially for not more than 180 days after the proposed effective date; and
(ii) extend the suspension for up to an additional 90 days if the filing is for an alternative form of ratemaking for a public service company.
(3) Subject to subsection (c) of this section, after the suspension or extension under paragraph (2) of this subsection expires, if the Commission has not entered a final order, the new rate or change in rate proposed by the public service company takes effect.
Accounting, interest, and refunds relating to new rates or rate increases
(c)(1) If a proposed new rate or rate increase takes effect before the Commission enters a final order in the proceedings, if practicable, the Commission may order the public service company that proposes the rate to keep a detailed and accurate account of:
(i) all amounts received under the new rate or rate increase; and
(ii) the persons on whose behalf the amounts are paid.
(2) After the proceedings conclude, the Commission may require the public service company to refund with interest, to each person listed under paragraph (1)(ii) of this subsection, the part of the new rate or rate increase that the Commission finds unjustified.
(3) If a refund is not practicable, the public service company shall charge off and amortize the difference between the operating revenues under the rate charged and the operating revenues that would have been obtained from the same volume of business from the final set rate, through a temporary rate decrease for the period that the Commission sets.


Added by Acts 1998, c. 8, § 2, eff. Oct. 1, 1998. Amended by Acts 2022, c. 366, § 1, eff. Oct. 1, 2022; Acts 2022, c. 367, § 1, eff. Oct. 1, 2022.
Formerly Art. 78, § 70.
MD Code, Public Utilities, § 4-204, MD PUBLIC UTIL § 4-204
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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