EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0505*
HOUSE BILL 505
C5 4lr0543
CF SB 682
By: Delegate Charkoudian
Introduced and read first time: January 24, 2024
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 8, 2024
CHAPTER ______
AN ACT concerning 1
Limitations on Cost Recovery by Public Service Companies and Reports on 2
Votes Cast at Meetings of Regional Transmission Organizations 3
Electric Companies – Regional Transmission Organizations – Membership and 4
Report 5
(Utility Transparency and Accountability Act) 6
FOR the purpose of prohibiting public service companies from recovering through rates 7
certain costs; requiring certain public service companies to submit an annual report 8
to the Public Service Commission regarding costs related to certain activities; 9
requiring each a certain electric company to be a member of a regional transmission 10
organization; requiring each a certain electric company to submit an annual report 11
to the Public Service Commission regarding certain votes cast by the electric 12
company and any affiliate of the electric company at a meeting of the regional 13
transmission organization; and generally relating to cost recovery by public service 14
companies and reports by electric companies and regional transmission 15
organizations. 16
BY repealing and reenacting, without amendments, 17
Article – Public Utilities 18
Section 1–101(a) and (z) 19
Annotated Code of Maryland 20
(2020 Replacement Volume and 2023 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Public Utilities 23 2 HOUSE BILL 505
Section 4–103 1
Annotated Code of Maryland 2
(2020 Replacement Volume and 2023 Supplement) 3
BY adding to 4
Article – Public Utilities 5
Section 4–504, 4–505, and 7–108 6
Annotated Code of Maryland 7
(2020 Replacement Volume and 2023 Supplement) 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – Public Utilities 11
1–101. 12
(a) In this division the following words have the meanings indicated. 13
(z) (1) “Public service company” means a common carrier company, electric 14
company, gas company, sewage disposal company, telegraph company, telephone company, 15
water company, or any combination of public service companies. 16
(2) “Public service company” does not include: 17
(i) a campground that provides water, electric, gas, sewage, or 18
telephone service to campers incident to the campground’s primary business of operating 19
and maintaining the campground; or 20
(ii) a person that owns or operates equipment used for charging 21
electric vehicles, including a person that owns or operates: 22
1. an electric vehicle charging station; 23
2. electric vehicle supply equipment; or 24
3. an electric vehicle charging station service company or 25
provider. 26
4–103. 27
[(a)] In setting just and reasonable rates under this title, the Commission may not 28
discourage the use of employee stock ownership plans by public service companies by 29
denying to the public service companies the full benefits of investment tax credits provided 30
in connection with these plans by the Internal Revenue Code. 31
HOUSE BILL 505 3
[(b) A public service company may not charge off lobbying expenses against its 1
ratepayers.] 2
4–504. 3
(A) IN THIS SECTION, “LOBBYING OR POLITICA L ACTIVITIES” MEANS ANY 4
ACTION TAKEN AT THE STATE, COUNTY, OR MUNICIPAL LEVELS OF GOVERNMENT IN 5
CONNECTION WITH : 6
(1) INFLUENCING LEGISLAT ION; 7
(2) PARTICIPATION OR INT ERVENTION IN ANY POL ITICAL CAMPAIGN 8
ON BEHALF OF OR IN OPPOSITION TO ANY CA NDIDATE FOR PUBLIC O FFICE; OR 9
(3) ANY ATTEMPT TO INFLU ENCE ANY SEGMENT OF THE GENERAL 10
PUBLIC WITH RESPECT TO AN ELECTION , A LEGISLATIVE MATTER , AN EXECUTIVE 11
AGENCY DECISION , OR A REFERENDUM . 12
(B) A PUBLIC SERVICE COMPA NY MAY NOT REC OVER THROUGH RATES A NY 13
COSTS ASSOCIATED WIT H: 14
(1) MEMBERSHIP , DUES, SPONSORSHIPS , OR CONTRIBUTIONS TO A 15
BUSINESS OR INDUSTRY TRADE ASSOCIATION , GROUP, OR RELATED ENTITY EX EMPT 16
FROM TAXATION UNDER § 501 OF THE INTERNAL REVENUE CODE; 17
(2) LOBBYING OR POLITICAL ACTIVITIES , INCLUDING SUPPORTING 18
ACTIVITIES SUCH AS P OLICY RESEARCH , ANALYSIS, PREPARATION , AND PLANNING ; 19
(3) UNLESS APPROVED OR O RDERED BY THE COMMISSION, 20
ADVERTISING, MARKETING, COMMUNICATIONS , OR OTHER RELATED COS TS 21
IDENTIFIED BY THE COMMISSION THAT SEEK TO INFLUENCE PUBLIC OPINION OR 22
CREATE GOODWILL TOWA RD THE PUBLIC SERVIC E COMPANY; 23
(4) TRAVEL, LODGING, OR FOOD AND BEVERAGE EXPENSES FOR THE 24
PUBLIC SERVICE COMPA NY’S BOARD OF DIRECTORS AND OFFICERS OR THE BOARD 25
OF DIRECTORS AND OFF ICERS OF THE PUBLIC S ERVICE COMPANY ’S PARENT 26
COMPANY; 27
(5) ENTERTAINMENT OR GIF TS; 28
(6) ANY OWNED, LEASED, OR CHARTERED AIRCRAF T FOR THE PUBLIC 29
SERVICE COMPANY ’S BOARD OF DIRECTORS AND OFFICERS OR THE BOARD OF 30
DIRECTORS AND OFFICE RS OF THE PUBLIC SER VICE COMPANY’S PARENT COMPANY ; 31
OR 32 4 HOUSE BILL 505
(7) INVESTOR RELATIONS . 1
4–505. 2
(A) THIS SECTION APPLIES ONLY TO A PUBLIC SER VICE COMPANY WITH 3
MORE THAN 75,000 CUSTOMERS IN THE STATE. 4
(B) (1) ON OR BEFORE JANUARY 1 EACH YEAR, EACH PUBLIC SERVICE 5
COMPANY SHALL SUBMIT TO THE COMMISSION A REPORT I TEMIZING ALL COSTS 6
ASSOCIATED WITH THE ACTIVITIES DESCRIBED IN § 4–504 OF THIS SUBTITLE. 7
(2) THE REPORT SHALL INCL UDE: 8
(I) COSTS SPENT BY THE P ARENT COMPANY OR AFF ILIATES OF 9
THE PUBLIC SERVICE C OMPANY THAT ARE DIRE CTLY BILLED OR ALLOCATED T O THE 10
PUBLIC SERVICE COMPA NY; 11
(II) A LIST OF THE TITLE , JOB DESCRIPTION , AND SALARY OF 12
ANY PUBLIC SERVICE C OMPANY EMPLOYEE WHO PERFORMED WORK ASSOC IATED 13
WITH THE ACTIVITIES DESCRIBED IN § 4–504 OF THIS SUBTITLE , INCLUDING THE 14
HOURS ATTRIBUTED TO THE WO RK; 15
(III) A LIST OF THE TITLE , JOB DESCRIPTION , AND SALARY OF 16
ANY EMPLOYEE OF THE PARENT COMPANY OR AF FILIATE OF THE PUBLI C SERVICE 17
COMPANY WHO PERFORME D WORK ASSOCIATED WI TH THE ACTIVITIES DE SCRIBED 18
§ 4–504 OF THIS SUBTITLE, INCLUDING THE HOURS ATTRIBUTED TO THE WO RK THAT 19
WERE DIRECTLY BILLED OR ALLOCATED TO THE PUBLIC SERVICE COMPA NY; 20
(IV) A LIST OF PAYMENTS T HAT THE PUBLIC SERVI CE COMPANY 21
MADE TO ALL THIRD –PARTY VENDORS FOR AN Y EXPENSES ASSOCIATE D WITH THE 22
ACTIVITIES DES CRIBED IN § 4–504 OF THIS SUBTITLE , INCLUDING UNREDACTED 23
BILLING AMOUNTS , BILLING DATES , PAYEES, AND AN EXPLANATION O F EACH 24
EXPENDITURE IN DETAI L SUFFICIENT TO DESC RIBE THE PURPOSE OF THE COST; 25
AND 26
(V) ANY OTHER INFORMATIO N THE COMMISSION CONSIDERS 27
RELEVANT. 28
7–108. 29
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 30
INDICATED. 31
HOUSE BILL 505 5
(2) “AFFILIATE” HAS THE MEANING STAT ED IN § 7–501 OF THIS 1
TITLE. 2
(3) “MEETING” MEANS ANY COMMITTEE , USER GROUP, TASK FORCE, 3
OR OTHER PART OF THE REGIONAL TRA NSMISSION ORGANIZATI ON IN WHICH VOTES 4
ARE TAKEN. 5
(4) “RECORDED VOTE ” MEANS A VOTE THAT IS TABULATED, EITHER 6
INDIVIDUALLY OR AS P ART OF A SECTOR , FOR ANY PURPOSE AT A MEETING, 7
REGARDLESS OF : 8
(I) WHETHER THE VOTE REP RESENTS A FINAL POSI TION OF 9
ANY PERSON CASTING THE VOTE ; OR 10
(II) THE DECISION–MAKING AUTHORITY OF THOSE VOTING . 11
(5) “REGIONAL TRANSMISSION ORGANIZATION ” MEANS AN ENTITY 12
THAT QUALIFIES AS A REGIONAL TRANSMISSIO N ORGANIZATION UNDER 18 C.F.R. § 13
35.34. 14
(B) THIS SECTION DOES NOT APPLY TO A MUNICIPAL ELECT RIC UTILITY. 15
(C) EACH ELECTRIC COMPANY SHALL BE A MEMBER OF A REGIONAL 16
TRANSMISSION ORGANIZ ATION. 17
(C) (D) (1) ON OR BEFORE FEBRUARY 1 EACH YEAR, EACH ELECTRIC 18
COMPANY SHALL SUBMIT TO THE COMMISSION A REPORT O F ANY RECORDED VOTE 19
CAST BY THE ELECTRIC COMP ANY OR, SUBJECT TO PARAGRAPH (2) OF THIS 20
SUBSECTION, AN AFFILIATE OF THE ELECTRIC COMPANY AT A MEETING OF A 21
REGIONAL TRANSMISSIO N ORGANIZATION DURIN G THE IMMEDIATELY PR ECEDING 22
CALENDAR YEAR . 23
(2) THE REPORT SHALL INCL UDE: 24
(I) ALL RECORDED VOTES CAST BY THE ELECTRIC COMP ANY, 25
REGARDLESS OF WHETHE R THE VOTE IS OTHERW ISE DISCLOSED; 26
(II) ALL VOTES CAST BY AN AFFILIATE OF THE ELE CTRIC 27
COMPANY IF THE ELECT RIC COMPANY ITSELF D OES NOT VOTE ON THE MATTER; AND 28
(III) A BRIEF DESCRIPTION EXPLAINI NG HOW EACH VOTE CAS T 29
BY THE ELECTRIC COMP ANY OR ITS AFFILIATE IS IN THE INTEREST O F THE PUBLIC. 30
6 HOUSE BILL 505
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2024. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.