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§ 4-309. Limited-income mechanism to benefit eligible limited-income customers

West's Annotated Code of MarylandPublic UtilitiesEffective: May 30, 2021

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 3. Specific Rate Regimes (Refs & Annos)
Effective: May 30, 2021
MD Code, Public Utilities, § 4-309
§ 4-309. Limited-income mechanism to benefit eligible limited-income customers
Currentness
Definitions
(a)(1) In this section the following words have the meanings indicated.
(2) “Eligible limited-income customer” means a residential customer of a utility company with annual income that:
(i) 1. is at or below 175% of the federal poverty level; or
2. for a customer at least 67 years of age, is at or below 200% of the federal poverty level; or
(ii) meets a broader designation approved by the Commission.
(3) “Limited-income mechanism” or “mechanism” means a process approved by the Commission under this section to benefit an eligible limited-income customer of a utility company.
(4) “Payment plan” means an agreement between an eligible limited-income customer and a utility company to pay an arrearage balance over a specific period of time to avoid disconnection of a utility service.
(5)(i) “Utility company” means an electric company, a gas and electric company, or a gas company.
(ii) “Utility company” does not include a small rural electric cooperative.
Findings and declarations of General Assembly
(b) The General Assembly finds and declares that the societal benefits of a well-constructed limited-income mechanism to benefit Maryland's eligible limited-income customers are in the public interest.
In general
(c)(1) Subject to the approval of the Commission, a utility company shall adopt a limited-income mechanism to benefit an eligible limited-income customer.
(2) Notwithstanding § 4-503(b) of this title, the mechanism may take the form of a program, tariff provision, credit, rate, rider, or other means to assist an eligible limited-income customer to afford a utility service.
(3) A municipal electric utility may adopt a limited-income mechanism subject to the approval of the Commission in the same manner as a utility company in accordance with this section.
Contents of proposals
(d)(1) A utility company that proposes a limited-income mechanism for Commission approval under subsection (c) of this section shall include the proposal in:
(i) a separate application for approval of the mechanism; or
(ii) only with the prior approval of the Commission, an application for a base rate proceeding, including an alternative rate proceeding, or any other proceeding to alter the utility company's base rates under the authority of the Commission.
(2) A proposal submitted under this section shall allocate the prudently incurred costs of the limited-income mechanism across rate classes.
(3) The proposal shall include:
(i) a detailed description of the proposed mechanism;
(ii) the proposed method for allocating the mechanism's costs across customer classes;
(iii) the rationale supporting the utility company's proposal for a mechanism to benefit the eligible limited-income customers in the utility company's service territory;
(iv) a time frame and process for the Commission to review the effectiveness of the mechanism after implementation; and
(v) any other information the Commission considers necessary or useful to evaluate the proposal.
Considerations for approval of proposals
(e) In evaluating a limited-income mechanism, the Commission shall consider:
(1) the degree to which the mechanism promotes affordability of electricity or natural gas for limited-income customers;
(2) the public interest in allocating the costs of the mechanism between the utility company's shareholders and rate payers;
(3) the impact on rates, utility operating costs, customer arrearages, customer disconnections, uncollectible costs, and successful completion of payment plans;
(4) the ability of a limited-income customer to continue to receive benefits when relocating within the same service territory;
(5) coordination of benefits under the mechanism with any other public or private assistance that may be available to the customer;
(6) a minimum level of support or assistance structure to provide equitable availability of limited-income assistance across the State; and
(7) any other information the Commission considers appropriate.
Certification of eligible limited-income customer's qualifications
(f) If an approved limited-income mechanism requires that the Office of Home Energy Programs must certify an eligible limited-income customer's qualifications to participate in a limited-income mechanism, the Office shall certify an eligible limited-income customer's qualifications before the customer may participate in the mechanism.
Continued eligibility for other assistance programs
(g) An eligible limited-income customer who participates in a mechanism under this section may also be eligible for other assistance programs offered in the State, including those offered by a utility company or the Office of Home Energy Programs, the Department of Housing and Community Development, or any other public or private source.

Credits

Added by Acts 2021, c. 638, § 1, eff. May 30, 2021; Acts 2021, c. 639, § 1, eff. May 30, 2021.
MD Code, Public Utilities, § 4-309, MD PUBLIC UTIL § 4-309
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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