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.
*sb0682*
SENATE BILL 682
C5 4lr0602
HB 1186/23 – ECM CF HB 505
By: Senator Hester
Introduced and read first time: January 29, 2024
Assigned to: Education, Energy, and the Environment
Committee Report: Favorable with amendments
Senate action: Adopted with floor amendments
Read second time: March 15, 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 – Report 4
(Utility Transparency and Accountability Act) 5
FOR the purpose of prohibiting public service companies from recovering through rates 6
certain costs; requiring certain public service companies to submit an annual report 7
to the Public Service Commission regarding costs related to certain activities; 8
requiring each electric company to be a member of a regional transmission 9
organization; requiring each a certain electric company to submit an annual report 10
to the Public Service Commission regarding certain votes cast by the electric 11
company and any affiliate of the electric company at a meeting of the regional 12
transmission organization; and generally relating to cost recovery by public service 13
companies and reports by electric companies and regional transmission 14
organizations. 15
BY repealing and reenacting, without amendments, 16
Article – Public Utilities 17
Section 1–101(a) and (z) 18
Annotated Code of Maryland 19
(2020 Replacement Volume and 2023 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – Public Utilities 22
Section 4–103 23 2 SENATE BILL 682
Annotated Code of Maryland 1
(2020 Replacement Volume and 2023 Supplement) 2
BY adding to 3
Article – Public Utilities 4
Section 4–504, 4–505, and 7–108 5
Annotated Code of Maryland 6
(2020 Replacement Volume and 2023 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Public Utilities 10
1–101. 11
(a) In this division the following words have the meanings indicated. 12
(z) (1) “Public service company” means a common carrier company, electric 13
company, gas company, sewage disposal company, telegraph company, telephone company, 14
water company, or any combination of public service companies. 15
(2) “Public service company” does not include: 16
(i) a campground that provides water, electric, gas, sewage, or 17
telephone service to campers incident to the campground’s primary business of operating 18
and maintaining the campground; or 19
(ii) a person that owns or operates equipment used for charging 20
electric vehicles, including a person that owns or operates: 21
1. an electric vehicle charging station; 22
2. electric vehicle supply equipment; or 23
3. an electric vehicle charging station service company or 24
provider. 25
4–103. 26
[(a)] In setting just and reasonable rates under this title, the Commission may not 27
discourage the use of employee stock ownership plans by public service companies by 28
denying to the public service companies the full benefits of investment tax credits provided 29
in connection with these plans by the Internal Revenue Code. 30
[(b) A public service company may not charge off lobbying expenses against its 31
ratepayers.] 32 SENATE BILL 682 3
4–504. 1
(A) IN THIS SECTION, “LOBBYING OR POLITICA L ACTIVITIES” MEANS ANY 2
ACTION TAKEN AT THE STATE, COUNTY, OR MUNICIPAL LEVELS OF GOVERNMENT IN 3
CONNECTION WITH : 4
(1) INFLUENCING LEGISLAT ION; 5
(2) PARTICIPATION OR INT ERVENTION IN ANY POL ITICAL CAMPAIGN 6
ON BEHALF OF OR IN O PPOSITION TO ANY CAN DIDATE FOR PUBLIC OF FICE; OR 7
(3) ANY ATTEMPT TO INFLU ENCE ANY SEGMENT OF THE GENERAL 8
PUBLIC WITH RESPECT TO AN ELECTION , A LEGISLATIVE MATTER , AN EXECUTIVE 9
AGENCY DECISION , OR A REFERENDUM . 10
(B) A PUBLIC SERVICE COMPANY MAY NO T RECOVER THROUGH RA TES ANY 11
COSTS ASSOCIATED WIT H: 12
(1) MEMBERSHIP , DUES, SPONSORSHIPS , OR CONTRIBUTIONS TO A 13
BUSINESS OR INDUSTRY TRADE ASSOCIATION , GROUP, OR RELATED ENTITY EX EMPT 14
FROM TAXATION UNDER § 501 OF THE INTERNAL REVENUE CODE; 15
(2) LOBBYING OR POLITICA L ACTIVITIES, INCLUDING SUPPORTING 16
ACTIVITIES SUCH AS P OLICY RESEARCH , ANALYSIS, PREPARATION , AND PLANNING ; 17
(3) UNLESS APPROVED OR O RDERED BY THE COMMISSION, 18
ADVERTISING, MARKETING, COMMUNICATIONS , OR OTHER RELATED COS TS 19
IDENTIFIED BY THE COMMISSION THAT SEEK TO INFLUENCE PUBLIC OPINION OR 20
CREATE GOODWILL TOWA RD THE PUBLIC SERVIC E COMPANY; 21
(4) TRAVEL, LODGING, OR FOOD AND BEVERAGE EXPENSES FOR THE 22
PUBLIC SERVICE COMPA NY’S BOARD OF DIRECTORS AND OFFICERS OR THE BOARD 23
OF DIRECTORS AND OFFICE RS OF THE PUBLIC SER VICE COMPANY ’S PARENT 24
COMPANY; 25
(5) ENTERTAINMENT OR GIF TS; 26
(6) ANY OWNED, LEASED, OR CHARTERED AIRCRAF T FOR THE PUBLIC 27
SERVICE COMPANY ’S BOARD OF DIRECTORS AND OFFICERS OR THE BOARD OF 28
DIRECTORS AND OFFICE RS OF THE PUBLIC SERVICE COMPANY’S PARENT COMPANY ; 29
OR 30
(7) INVESTOR RELATIONS . 31 4 SENATE BILL 682
4–505. 1
(A) THIS SECTION APPLIES ONLY TO A PUBLIC SER VICE COMPANY WITH 2
MORE THAN 75,000 CUSTOMERS IN THE STATE. 3
(B) (1) ON OR BEFORE JANUARY 1 EACH YEAR, EACH PUBLIC SERVICE 4
COMPANY SHALL SUBMIT TO THE COMMISSION A REPORT I TEMIZING ALL COSTS 5
ASSOCIATED WITH THE ACTIVITIES DESCRIBED IN § 4–504 OF THIS SUBTITLE. 6
(2) THE REPORT SHALL INCL UDE: 7
(I) COSTS SPENT BY THE P ARENT COMPANY OR AFF ILIATES OF 8
THE PUBLIC SERVICE C OMPANY THAT ARE DIRECTLY BI LLED OR ALLOCATED TO THE 9
PUBLIC SERVICE COMPA NY; 10
(II) A LIST OF THE TITLE , JOB DESCRIPTION , AND SALARY OF 11
ANY PUBLIC SERVICE C OMPANY EMPLOYEE WHO PERFORMED WORK ASSOC IATED 12
WITH THE ACTIVITIES DESCRIBED IN § 4–504 OF THIS SUBTITLE , INCLUDING THE 13
HOURS ATTRIBUTED TO THE WORK; 14
(III) A LIST OF THE TITLE , JOB DESCRIPTION , AND SALARY OF 15
ANY EMPLOYEE OF THE PARENT COMPANY OR AF FILIATE OF THE PUBLI C SERVICE 16
COMPANY WHO PERFORME D WORK ASSOCIATED WI TH THE ACTIVITIES DE SCRIBED 17
§ 4–504 OF THIS SUBTITLE, INCLUDING THE HOURS ATTRIBUTED TO THE WO RK THAT 18
WERE DIRECTLY BILLED OR ALLOCATED TO THE PUBLIC SERVICE COMPA NY; 19
(IV) A LIST OF PAYMENTS T HAT THE PUBLIC SERVI CE COMPANY 20
MADE TO ALL THIRD –PARTY VENDORS FOR AN Y EXPENSES ASSOCIATE D WITH THE 21
ACTIVITIES DESCRIBED IN § 4–504 OF THIS SUBTITLE , INCLUDING UNREDACTED 22
BILLING AMOUNTS , BILLING DATES , PAYEES, AND AN EXPLANATION O F EACH 23
EXPENDITURE IN DETAI L SUFFICIENT TO DESC RIBE THE PURPOSE OF THE COST; 24
AND 25
(V) ANY OTHER INFORMATIO N THE COMMISSION CONSIDERS 26
RELEVANT. 27
7–108. 28
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 29
INDICATED. 30
(2) “AFFILIATE” HAS THE MEANING STAT ED IN § 7–501 OF THIS 31
TITLE. 32 SENATE BILL 682 5
(3) “MEETING” MEANS ANY COMMITTEE , USER GROUP, TASK FORCE, 1
OR OTHER PART OF THE REGIONAL TRANSMISSION ORGANIZATION IN WHIC H VOTES 2
ARE TAKEN. 3
(4) “RECORDED VOTE ” MEANS A VOTE THAT IS TABULATED, EITHER 4
INDIVIDUALLY OR AS P ART OF A SECTOR , FOR ANY PURPOSE AT A MEETING, 5
REGARDLESS OF : 6
(I) WHETHER THE VOTE REP RESENTS A FINAL POSI TION OF 7
ANY PERSON CASTING T HE VOTE; OR 8
(II) THE DECISION–MAKING AUTHORITY OF THOSE VOTING . 9
(5) “REGIONAL TRANSMISSION ORGANIZATION ” MEANS AN ENTITY 10
THAT QUALIFIES AS A REGIONAL TRANSMISSIO N ORGANIZATION UNDER 18 C.F.R. § 11
35.34. 12
(B) EACH ELECTRIC COMPANY SHALL BE A M EMBER OF A REGIONAL 13
TRANSMISSION ORGANIZ ATION. 14
(B) (1) THIS SECTION APPLIES ONLY TO ELECTRIC COM PANIES THAT ARE 15
MEMBERS OF A REGIONA L TRANSMISSION ORGAN IZATION. 16
(2) THIS SECTION DOES NOT APPLY TO MUNICIPAL E LECTRIC 17
UTILITIES. 18
(C) (1) ON OR BEFORE FEBRUARY 1 EACH YEAR , EACH ELECTRIC 19
COMPANY SHALL SUBMIT TO THE COMMISSION A REPORT O F ANY RECORDED VOTE 20
CAST BY THE ELECTRIC COMPANY OR , SUBJECT TO PARAGRAPH (2) OF THIS 21
SUBSECTION, AN AFFILIATE OF THE ELECTRIC COMPANY AT A MEETING OF A 22
REGIONAL TRANSMISSIO N ORGANIZATION DURIN G THE IMMEDIATELY PR ECEDING 23
CALENDAR YEAR . 24
(2) THE REPORT SHALL INCL UDE: 25
(I) ALL RECORDED VOTES C AST BY THE ELECTRIC COMPANY, 26
REGARDLESS OF WHETHE R THE VOTE IS OTHERW ISE DISCLOSED; AND 27
(II) ALL VOTES CAST BY AN AFFILIATE OF THE ELECTRIC 28
COMPANY IF THE ELECT RIC COMPANY ITSELF D OES NOT VOTE ON THE MATTER; AND 29
(III) A BRIEF DESCRIPTION EXPLAINING HOW EACH VOTE CAST 30
BY THE ELECTRIC COMP ANY OR ITS AFFILIATE IS IN THE INTEREST O F THE PUBLIC. 31 6 SENATE BILL 682
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2024. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.