(2) ACCELERATE ANY OF THE OTHER IMPLEMENTATION DATES AND
PHASE-IN PERCENTAGES IN SUBSECTION (A) OF THIS SECTION.

(C) (1) BEGINNING ON THE INITIAL IMPLEMENTATION DATE, AN ELECTRIC
COMPANY'S OBLIGATION TO PROVIDE ELECTRICITY SUPPLY AND ELECTRICITY
SUPPLY SERVICE IS STATED BY THIS SUBSECTION.

(2) ELECTRICITY SUPPLY PURCHASED FROM A CUSTOMER'S ELECTRIC
COMPANY IS KNOWN AS STANDARD OFFER SERVICE. A CUSTOMER IS CONSIDERED
TO HAVE CHOSEN THE STANDARD OFFER SERVICE IF THE CUSTOMER:

(I) IS NOT ALLOWED TO CHOOSE AN ELECTRICITY SUPPLIER
UNDER THE PHASE IN OF CUSTOMER CHOICE IN SUBSECTION (A) OF THIS SECTION;

(II) CONTRACTS FOR ELECTRICITY WITH AN ELECTRICITY
SUPPLIER AND IT IS NOT DELIVERED;

(III) CANNOT ARRANGE FOR ELECTRICITY FROM AN ELECTRICITY

SUPPLIER;

(IV) DOES NOT CHOOSE AN ELECTRICITY SUPPLIER;

(V) CHOOSES THE STANDARD OFFER SERVICE; OR

(VI) HAS BEEN DENIED SERVICE OR REFERRED TO THE STANDARD
OFFER SERVICE BY AN ELECTRICITY SUPPLIER IN ACCORDANCE WITH § 7-507(E)(6)
OF THIS SUBTITLE.

(3) ANY OBLIGATION OF AN ELECTRIC COMPANY TO PROVIDE
STANDARD OFFER SERVICE SHALL CEASE ON JULY 1, 2003, EXCEPT THAT:

(I) ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC
UTILITIES MAY CHOOSE TO CONTINUE PROVIDING STANDARD OFFER SERVICE IN
THEIR RESPECTIVE DISTRIBUTION TERRITORIES, AND MAY CEASE OFFERING THAT
SERVICE AFTER NOTIFYING THE COMMISSION AT LEAST 12 MONTHS IN ADVANCE;
AND

(II) 1. THE COMMISSION FINDS THAT THE ELECTRICITY

SUPPLY MARKET IS NOT COMPETITIVE OR THAT NO ACCEPTABLE COMPETITIVE
PROPOSAL HAS BEEN RECEIVED TO SUPPLY ELECTRICITY TO THOSE CUSTOMERS
DESCRIBED UNDER PARAGRAPH (2) OF THIS SUBSECTION THE COMMISSION SHALL
EXTEND THE OBLIGATION TO PROVIDE STANDARD OFFER SERVICE TO RESIDENTIAL
AND SMALL COMMERCIAL CUSTOMERS AT A MARKET PRICE THAT PERMITS
RECOVERY OF THE VERIFIABLE, PRUDENTLY INCURRED COSTS TO PROCURE OR
PRODUCE THE ELECTRICITY PLUS A REASONABLE RETURN.

2. THE COMMISSION SHALL REEXAMINE THE FINDING
MADE UNDER THIS SUBPARAGRAPH AT LEAST ANNUALLY.

(4) ON OR BEFORE JULY 1, 2001, THE COMMISSION SHALL ADOPT
REGULATIONS OR ISSUE ORDERS TO ESTABLISH PROCEDURES FOR THE
COMPETITIVE SELECTION OF ELECTRICITY SUPPLIERS, INCLUDING AN AFFILIATE
OF AN ELECTRIC COMPANY, TO PROVIDE STANDARD OFFER SERVICE TO CUSTOMERS